NewsAirbus negotiates with suppliers to cut A220 costsAirbus now has “a very good understanding of the cost base” of the A220 program, but negotiations with suppliers, key to bringing down costs, are still ongoing, Airbus-Bombardier partnership CEO Philippe Balducchi said. Airbus aims to cut unit costs by a large double-digit percentage to bring the A220 program, formerly the Bombardier CSeries, into profitability. While Balducchi anticipates significant efficiency gains internally as output of the A220 is increased over time, the cost reductions need go far beyond its own abilities. When the program was still owned by Bombardier, suppliers were able to negotiate contracts that were highly favorable to them because of perceived program and market risks.
LinkAir Canada studies dozens of potential A220 routesAir Canada has disclosed several dozen routes on which it might deploy new Airbus A220s, which are expected to come online in January 2020. The routes span North America and originate from major Canadian cities of Calgary, Toronto, Montreal and Vancouver, according to a map displayed on 14 January by Air Canada vice-president of network planning Mark Galardo.
LinkVINCI to invest $1.32 billion in new Lisbon airportFrance’s VINCI Airports has agreed to invest €1.15 billion ($1.32 billion) in a dual-hub system for Lisbon that will see an expansion of the city’s existing gateway and the construction of a new, low-cost airport on the site of a former military air base. Under the deal, signed Jan. 8 by Portuguese government officials and VINCI CEO Xavier Huillard, the French group’s subsidiary, Aeroportos de Portugal (ANA), agreed to invest €650 million by 2028 in the first phase of expanding Lisbon’s existing Humberto Delgado Airport, and €500 million in the construction of a new civil airport on the site of the Montijo air base.
LinkAir France, ground handling staff ink pay dealAir France-KLM CEO Benjamin Smith has said a fresh pay deal, signed by Air France and its ground handling staff, further demonstrates improved labor relations at the French carrier. On Jan. 11, Air France announced a 2019 pay agreement with four ground handling unions: CFDT, CFE-CGC, FO and UNSA aérien Air France. In addition to a 2% company-wide pay increase, agreed to on Oct. 19, Air France said ground handlers will receive a further 1.8% salary increase, funding for bonuses, “easier payment of overtime” and payment for up to 35 “banked hours.”
LinkFAA to issue new rules for drone flights over people, at nightThe FAA will soon publish a proposed regulation that would allow flights of small drones for commercial purposes at night and over people under certain conditions. US Transportation Secretary Elaine Chao announced the pending release of a notice of proposed rulemaking (NPRM) governing small drones Jan. 14 in a speech at the annual meeting of the Transportation Research Board. The proposed rule will be published in the Federal Register “as soon as possible,” a date that will be followed by a 60-day comment period, she said.
LinkChina Southern eyes growth with Beijing hub after strong 2018China Southern Airlines says 2018 was a successful year for its hub development in Guangzhou, and it will push to develop a dual-hub strategy with the opening of a second airport in Beijing later this year. The state-owned carrier handled 4.42 million transit passengers at its Guangzhou Baiyun International airport hub last year, an 8.56% jump from a year ago. Of these, 945,000 were international transit passengers, up 8.65% from 2017.
LinkEmirates steps up African expansion, boosts European servicesDubai-based Emirates Airline will further increase its penetration of the African market from June as demand increases. All the Gulf carriers—Emirates, Abu Dhabi-based Etihad Airways and Qatar Airways—as well as Turkish Airlines, have been pushing into the continent in recent years, siphoning off long-haul traffic to their respective hubs. This has caused concern among several African carriers, which have seen their load factors decline as a result.
LinkPAL strengthens international network with new flightsPhilippine Airlines (PAL) is launching three international routes and increasing frequency on others in summer 2019, as the airline looks to boost the role of Manila Ninoy Aquino International Airport (NAIA) as a hub between North America and Asia. The new flights are from Manila to Phnom Penh, Cambodia; Hanoi, Vietnam; and New Delhi. In addition, PAL will add frequencies to 13 cities. The increases have not been made on these routes in previous summer seasons.
LinkJeju Air to roll out streaming IFE across fleetSouth Korean budget carrier Jeju Air will deploy the Bluebox Wow wireless in-flight entertainment system across its fleet of Boeing 737-800s in April. The carrier has trialled the portable systems on 10 of its 737s since late 2018, offering passengers free access to a range of movies, television shows and other digital content via their own devices.
LinkTUI investigates incident of passengers flown without seatsTUI Group’s UK airline has launched an investigation into an incident in which three passengers with paid tickets, seat assignments and boarding passes had to sit on the aircraft floor because their seats did not exist. The BBC and other UK media have reported that the family of parents and their young daughter who were flying from Mahon in Menorca to Birmingham in the UK, boarded the aircraft and found that their three seats in row 41 did not exist.
LinkFlybe, Vueling agree to $5.8 million London Gatwick-slot transactionUK regional carrier Flybe plans to raise £4.5 million ($5.8 million) from a London Gatwick Airport slot deal with Spanish LCC Vueling, boosting the Exeter-based airline’s funds immediately after announcing a change of ownership.
LinkGermania sees progress on financial investor options Germania told ATW the Berlin-based carrier is in talks with possible investors after announcing Jan. 9 it was considering financing options to ensure its short-term liquidity needs. “Ongoing talks with potential financial investors are positively underway.
LinkEurofighter Typhoon to bid to replace Canadian CF-18 fleetEurofighter intends to pitch its Typhoon aircraft to replace the Royal Canadian Air Force’s fleet of Boeing CF-18A/B Hornet fighters. Eurofighter, a joint venture among Airbus, BAE Systems and Leonardo, was assumed to be one of the bidders in the competition to replace the RCAF’s fighter fleet with 88 advanced jets, but it hadn’t yet publicly acknowledged its desire to play for the contract. Simon Jacques, head of Airbus defense and space in Canada, said at a company event in Montreal that his firm intends to submit a proposal for the Typhoon.
LinkNew RoutesTurkish Airlines will launch 3X-weekly Boeing 787-9 Istanbul-Mexico City-Cancun (Mexico)-Istanbul services Aug. 21; 5X-weekly Istanbul-Marrakesh (Morocco) services from March 27; and 4X-weekly Istanbul-Luxor (Egypt) services from Sept. 23.
Qatar Airways Cargo launched 2X-weekly Macao (China)-Guadalajara (Mexico) Boeing 777F services, routed via Los Angeles (California) and Mexico City. The return flight from Guadalajara is routed via Liège (Belgium) to Doha (Qatar).
Ural Airlines launched 4X-weekly Zhukovsky-Prague Airbus A321 service.
Aeroflot Airline will start 4X-weekly Moscow Sheremetyevo-Palma de Mallorca Airbus A320 service from June 1.
Aeroflot low-cost subsidiary
Pobeda Airlines starts Moscow 3X-weekly Vnukovo-Ostend-Bruges Boeing 737-800 flights from March 7.
S7 Airlines started 2X-weekly Irkutsk-Guangzhou Airbus A320 service and will launch 4X-weekly Irkutsk-St. Petersburg A320neo from May 25; weekly Novosibirsk-Bukhara (Uzbekistan) A320 service from March 20; and 6X-weekly Moscow Domodedovo-Nice (France) Airbus A320 service from April 28.
RusLine regional carrier started 4X-weekly domestic flights from Novy Urengoy to Krasnoyarsk and Yekaterinburg; and will begin 2X-weekly service from Kaliningrad to Lipetsk, Voronezh, Belgorod from Feb. 2. All flights use a Bombardier CRJ200.
