NewsStrike Prompts Lufthansa To Cancel 500 FlightsLufthansa has cancelled more than 500 flights after German union Verdi called on 33,000 workers at the company to go on strike on Thursday over a wage dispute. The strike is expected to last for about five hours from 5000 CET (0400 GMT), the union said on Wednesday, setting the stage for the next round of wage talks on Friday. Efforts by big European airlines such as Lufthansa and Air France-KLM to shrink costs in the face of high jet fuel prices and fierce competition from Middle Eastern airlines and low-cost carriers have fanned tensions with workers. Strikes at Iberia, for instance, caused thousands of flight cancellations at a cost of about EUR€30 million (USD$38.7 million) until workers accepted a mediated deal last week.
LinkPressure Grows On Boeing As Airlines Seek 787 CashPressure has grown for Boeing to compensate airlines in cash for disruption caused by the grounding of its 787 Dreamliner as two airlines positioned for immediate help instead of future purchase discounts. Leading 787 customer All Nippon Airways wants cash refunds, rather than discounts on future orders, for losses inflicted by the worldwide grounding, a person familiar with the airline's intentions told reporters. In India, a senior government source said state carrier Air India would take the same stand in favor of direct refunds.
LinkRyanair expects to sign 737 Max deal by end-year Irish low-cost carrier Ryanair expects to sign a deal by the end of this year or early next year for more than 100 Boeing 737 Max aircraft, on top of today's agreement for 175 737-800s. Ryanair chief executive Michael O'Leary confirmed the acquisition plans in a formal signing ceremony for the 737-800 commitment, which is still to be approved by Ryanair's shareholders, in New York with Boeing Commercial Airplanes president and chief executive Ray Conner. "It is very important to us to have Ryanair as an all-Boeing fleet," Conner says. "That is a big deal for us and we cherish that very much, and we will always fight to maintain that." The order for the 737 Max is under evaluation by a new team formed within Ryanair, O'Leary says.
LinkRyanair Fined Over Hidden Ticket CostsIrish low-budget airline Ryanair has been fined EUR€370,000 (USD$479,300) by the Netherlands Consumer Authority for hidden costs associated with tickets purchased online by Dutch passengers. The watchdog said that European regulations had been violated because full costs were unclear, consumers were not given the option to correct mistakes before finalising a booking and the company was difficult to contact and provided information in English, not Dutch. "Ryanair offered air fares on its website that did not include all foreseeable and unavoidable costs, such as fees and surcharges," it said. "Consumers thus paid considerably more than the air fares that were initially displayed."
LinkIATA Raises Airline Profit ForecastsThe world's airlines nudged up their profit forecasts for 2013, reflecting growing confidence in the global economy and the financial performance of airlines, IATA said on Wednesday. The International Air Transport Association said it expects the global airline industry to make a net profit of USD$10.6 billion this year, up from an earlier forecast of USD$8.4 billion, and well above the USD$7.6 billion achieved in 2012. "Against a backdrop of improved optimism for global economic prospects, passenger demand has been strong and cargo markets are starting to grow again," said Tony Tyler, IATA's director general.
LinkLATAM Airlines Profit Down On Merger CostsNewly-merged LATAM Airlines' net profit dived 96.6 percent in 2012 to USD$10.96 million, hammered by the cost of Chilean airline LAN's takeover of Brazil's TAM and higher taxes in Chile, the company said. Latin America's largest carrier said it saw a "significant improvement" in major market Brazil this year, however it was still cutting its planned capital expenditures for the 2013 to 2015 fleet by USD$1.2 billion. "LATAM Airlines Group is in the process of adjusting its fleet plan in order to match its capacity expansion plans to the expected competitive and macroeconomic environment on international and domestic Brazil passenger markets," the company said in a statement.
LinkProposed AA-US Airways merger would benefit consumers, execs sayAmerican Airlines and US Airways executives testified before Congress on the benefits to consumers that would result from the proposed merger. "What we're trying to do here is provide more to our customers," said Doug Parker, chairman and CEO of US Airways. "We don't have the ability to get to as many places as some of our larger competitors -- combined, we do."
LinkSouthwest ad campaign showcases domestic successSouthwest Airlines launched an eight-week ad campaign on Tuesday that focuses on how the carrier became the largest domestic carrier in the U.S. "Southwest carries more domestic customers than any other airline and this new campaign showcases the impact we make on customers every time they step on board a Southwest flight," said Bob Jordan, chief commercial officer, in a statement.
LinkEU confirms intent to cover foreign airlines in emissions planThe European Commission said its emissions-trading scheme needs to include foreign airlines for it to be effective. "To avoid distortion, all aircraft operators (including those registered outside the EU) need to fully comply for flights operated within Europe in 2012," the commission wrote to EU transport ministers.
LinkBoeing has stayed in contact with Congress over 787sCongress has not conducted hearings on the 787 battery problems, but Boeing has kept in contact with lawmakers on the issue. "The purpose of all of our interactions with the Hill on 787 batteries has been to inform members and their staffs and to answer their questions," said Tim Neale, a Boeing spokesman.
LinkHarrison Ford rallies support for ATC towers"It’s about commercial aviation and safety, too," said Harrison Ford as he addressed members of the House General Aviation Caucus on March 19. The debate about sequestration and especially the closing of nearly 200 air-traffic control towers provided a dramatic backdrop for the long-planned meeting meant to rally support for keeping the towers open.
LinkUS Navy may add conformal fuel tanks to F/A-18E/F Super Hornet fleet The US Navy is considering adding conformal fuel tanks (CFTs) onto its fleet of Boeing F/A-18E/F Super Hornet strike fighters, sources say. The twin dorsally mounted tanks are expected to be tested this summer. The USN does not deny that it is interested in the conformal tanks, but says that it cannot comment on the project at this time. "As of right now this information is proprietarily owned between Boeing and Northrop [Grumman] and PMA-265 cannot talk to it," the Naval Air Systems Command says. PMA-265 is the US Navy programme office responsible for managing the F/A-18 and EA-18G fleets.
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