AirlinesColumn weighs in on reclining airline seats A recent story of a flight diverted after a passenger squabble over legroom has prompted a lively national national debate over the ethics of seat-reclining. Some, like the New York Times' Josh Barro, argue that there's nothing wrong with reclining your own seat and possibly depriving the person behind you of a little legroom. Others, like The Washington Post's own Alexandra Petri, contend that "while leaning back makes you only moderately more comfortable, it makes the person behind you vastly more uncomfortable."
LinkGermanwings Pilots To Strike After Talks Break DownLufthansa said talks with pilots over an early retirement scheme had ended without an agreement, leading to strike action on Friday that will affect thousands of people coming back from summer holidays. The Lufthansa pilots want the management to maintain the scheme that allows them to retire early at 55 and still keep some of their pay until they reach the age at which state pension payments start. Pilots' union Vereinigung Cockpit (VC), which represents about 5,400 pilots at the airline, had threatened strike action last week. Just hours ahead of a meeting with management on Thursday, the union announced that if the talks failed to lead to an agreement, pilots at Lufthansa's budget carrier Germanwings would strike for six hours from 0600 CET on Friday.
LinkJetBlue invests in $40M in Orlando training centerJetBlue Airways is strengthening its presence in Orlando with a $40 million investment in its training facility that hosts company employees from around the country. JetBlue operates a 400-person call center at the site and has nearly completed a 200-room lodge on the campus. "This is not just supporting Orlando operations. It's supporting the entire company," said Richard Smyth, vice president of redevelopment at JetBlue.
LinkMalaysia, Australia To Share MH370 Search CostsMalaysia said it will share with Australia the cost of the next stage in the search for missing Malaysia Airlines flight MH370, in the hope of unlocking modern aviation's greatest mystery. Months of searching have failed to turn up any trace of the missing Boeing 777, which disappeared on March 8, carrying 239 passengers and crew shortly after taking off from Kuala Lumpur, bound for Beijing. Malaysian Transport Minister Liow Tiong Lai told a news conference in Canberra that the two countries would evenly split the costs of the new search phase, estimated at up to AUD$52 million (USD$48.65 million).
LinkMAS reveals heavy loss after MH370 disappearanceMalaysian Airline System almost doubled pre-tax losses to MYR303 million ($96 million) in the three months to 30 June, the first full quarter following the disappearance of Malaysia Airlines flight MH370. Loss of MH370 on 8 March, it says, contributed to a 6.7-point drop in seat factor to 74% and a 4% reduction in passenger yield. The company’s revenues for the second quarter were down by 7% to MYR3.3 billion. Over the same period its expenditure increased by 2% to MYR3.6 billion. MAS’s net loss for the quarter reached MYR307 million, the company has disclosed in its latest financial statement.
LinkKhazanah outlines MAS restructuring planKhazanah Nasional has released a 12-point restructuring plan aimed at bringing a Malaysia Airlines (MAS) back from the brink of collapse and returning it to profitability. At the core of its plan is to delist the flag carrier and create a new company with a competitive operational structure and workforce. This will be done through staggered injections of MYR6 billion ($976.7 million) from the majority shareholder over a three-year period. The Malaysian sovereign wealth fund says it is targeting to delist MAS by end 2014 and to migrate the relevant operations, assets and liabilities to the new company by 1 July 2015.
LinkQantas Posts Record AUD$2.8 Bln Full-Year LossQantas Airways on Thursday reported its biggest financial loss ever after taking a AUD$2.6 billion (USD$2.4 billion) write-down due to a company restructure that includes a re-valuation of its fleet. Australia's flag carrier attempted to reassure investors after a turbulent few years, saying the worst was now behind it and that it expected a return to underlying profit growth in the first half of the current financial year. The 'Flying Kangaroo' has been bruised by high fuel costs, a strong Australian dollar, increasing international competition and a domestic price war with rival Virgin Australia. It also says it is handicapped by government laws restricting its access to foreign funding.
LinkA350 to remake TAP's maintenance strategyTAP Portugal’s planned introduction of the Airbus A350 in 2017 will have a major impact on the future direction of the airline’s MRO division. Most of the maintenance for TAP’s in-service fleet is conducted in-house. But competition for aftermarket business is intensifying on new-generation aircraft, and TAP Maintenance & Engineering will be able to support only certain components of the A350. Today, the Portuguese flag carrier’s engine overhaul shop in Lisbon is servicing the CFM International CFM56 powerplants for its A320-family and A340 aircraft. That fleet comprises 43 narrowbodies and four A340-300s, Flightglobal’s Ascend Fleets database shows. The engines powering TAP’s 15 A330-200s – split between General Electric CF6- and Pratt &Whitney PW4000-powered aircraft – are meanwhile supported by external MRO providers.
LinkUnited offers streaming entertainment on AirbusUnited Airlines has rolled out streaming in-flight entertainment on most of its Airbus A320 family aircraft, a move that comes as the airline installs Wi-Fi more widely across its fleet. About 43% of United's mainline fleet has Wi-Fi, and the company plans to offer it on the entire fleet by the end of next year.
LinkVirgin Australia Annual Net Loss TriplesVirgin Australia's annual net loss has tripled, hit by excess market capacity and one-off charges, adding that it would not give guidance for the current financial year because of an "uncertain economic environment." Net loss for the year to end-June was AUD$355.6 million (USD$333 million), compared with a AUD$98.1 million net loss for the previous year. Virgin and rival Qantas have been engaged in a bitter price war in an attempt to increase domestic market share.
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