The European Commission (EC) wants to impose tighter guidelines restricting state aid for airports and airlines in the European Union (EU). In a consultation document launched on July 3, the EC proposed that all publicly funded aid for airports must end after a 10-year transitional period and that it restrict funding in the meantime to only smaller, regional airports. The same guidelines subject to industry consultation through September 25 would also limit start-up aid for airlines.
Six months after promising a thorough overhaul of its business and having suffered the “most challenging” period in the 10 years since its re-branding from the former British European Airlines, UK regional Flybe reports a “re-energized commercial performance.” In the 12 months leading to March 31, the airline saw losses grow more than five-fold, to £40.7 million ($62 million), driven by increased fuel charges, passenger taxes–which accounted for around 18 percent of its UK-generated ticket revenue–and the costs of restructuring, including the elimination of 490 jobs.
Philippine Airlines (PAL) has become the Philippines’ first and only carrier removed from the EU air safety black list, an operating ban imposed three years ago within the 28-state European Union (EU).
As predicted, most airliner makers went home from last week’s Paris Air Show with yet longer backlogs of orders. Factoring in all the provisional sales (those covered by options, letters of intent or a memorandum of understanding), manufacturers announced something like $170 billion in new aircraft and engine business at Le Bourget.
Boeing has shifted its 737 Max schedules to reflect first delivery of the Max 8 to Southwest Airlines in the third quarter of 2017, as early as six months ahead of the original plan, Boeing Commercial Airplanes vice president and general manager Scott Fancher revealed here in Paris yesterday. As a result, schedules for the Max 9 and Max 7 would also shift by at least a quarter. The company expects the program to reach firm design configuration in July. “The risks are understood, they’re being managed effectively and we have no serious technical issues to deal with,” said Fancher.
UK airline easyJet placed conditional orders with Airbus on Tuesday for 100 new A320neos and 35 Sharklet-equipped A320s worth $12 billion at list prices. The A320s are scheduled for delivery between 2015 and 2017, while the A320neos will be delivered from 2017 to 2022, according to the announcement at the Paris Air Show.
EasyJet said 85 of the aircraft will be used to replace aging aircraft as they leave the fleet over the next nine years; the remaining aircraft deliveries will support the carrier’s strategy of increasing its seat capacity by 3 to 5 percent annually.
Dallas/Fort Worth Airport (DFW) is the main sponsor for the U.S. Pavilion and it’s using its time in the Paris Air Show limelight to promote its aspirations to be a global hub. The Texas gateway is one of only seven airports worldwide to offer more than 200 destinations in its flight schedule. Just over a quarter of these are international routes with 14 new overseas destinations– including Dubai and Sydney–launched since the start of 2011.
Virgin Australia completed its acquisition of Perth-based regional Skywest Airlines last month through a so-called scheme of arrangement governed by the laws of Singapore.
Regional Airline Association president Roger Cohen knows better than to predict what direction the industry he has watched evolve over his seven-year tenure at the RAA might take next. So when asked to talk about further structural changes his group’s 30 or so airline members might see in the coming months and years, he offered a direct retort.
American Airlines CEO Tom Horton issued an online video apology following a failure of the company’s computer systems last Tuesday, forcing the virtual seizure of its network. The outage affected both mainline American and its American Eagle regional affiliates, which together canceled some 1,000 flights–amounting to nearly two-thirds of the company’s daily operations–and delayed roughly 1,100 by early Tuesday evening.