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Air Canada’s First Airbus A220-300 Takes to the Skies

The first A220-300 for Air Canada has successfully completed its inaugural test flight from the Mirabel A220 final assembly line in Canada. The first of 45 aircraft for Air Canada is scheduled to be delivered to the Montreal-based airline in the coming weeks.

With its first A220 commercial flight in early 2020, Canada’s flag carrier will become the first airline in Canada to operate the Canadian-designed and -built A220. It will also become the first carrier in North America to fly the A220-300 variant.

Air Canada is planning to use the A220 on various domestic routes in Canada as well as to the United States. The A220’s unequalled performance and range capability will enable the airline to serve new markets, such as Montreal to Seattle and Toronto to San Jose, connecting the carrier’s main hubs to the West Coast, as of Spring 2020.

Benefitting from the latest technologies, the A220 is the quietest, cleanest and most eco-friendly aircraft in its category. Featuring a 50% reduced noise footprint compared to previous generation aircraft, 20% lower fuel burn per seat and 50% lower NOx emissions than industry standards, the A220 is a great aircraft for neighbourhood airports.

Around 100 A220s are currently flying with six operators on routes in Asia, America, Europe and Africa, proving the great versatility of Airbus’ latest family member.

Canadian Agency Mandates Onex Meet Ownership Rules on WestJet Deal

(Reuters) – The Canadian Transportation Agency said on Tuesday Onex Corp will need to amend its by-laws to meet the country’s ownership rules related to its proposed C$3.5 billion buyout deal of Canada’s second-largest carrier WestJet Airlines.

The agency has sought the amendment to Onex’s by-laws to ensure that matters related to WestJet are voted where a majority of Canadian directors are present.

WestJet said it is in the process of reviewing the determination.

Air Canada had challenged Onex Corp’s proposed acquisition of WestJet Airlines, on grounds that the deal may not meet the country’s ownership rules. (https://reut.rs/2LHqQvk)

Air Canada had argued that the likely presence of Onex co-investors such as foreign wealth funds and carriers, and “the opaque nature” of the deal to buy WestJet through company subsidiary Kestrel Bidco, will make it harder to ensure compliance with ownership laws.

Under Canada’s Transportation Act, carriers must be Canadian and controlled by Canadians in order to hold a domestic licence.

Shareholders of WestJet Airlines in July voted in favor of the Onex deal.

Under Canadian rules, foreigners cannot own more than 49% equity in a Canadian airline. The rules further restrict a foreign airline and any single foreign owner from controlling more than a quarter of voting interests in a Canadian carrier.

Onex did not immediately respond to Reuters request for comment.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber and Uttaresh.V)

China’s Cash-Strapped HNA Secures Restructuring Deal

HONG KONG, Dec 2 (Reuters) – Cash-strapped Chinese conglomerate HNA Group said on Monday it has agreed a deal to restructure its low-cost carrier West Air with a Chongqing-based asset management firm.

Chongqing Yufu Asset Management Group and its affiliates will together hold at least 70% stake in West Air, becoming the biggest shareholder, HNA said in a statement.

West Air, established in 2007, operates about 160 domestic and international routes with a fleet of 35 airplanes.

It has been directly controlled by HNA, whose affiliates also own struggling Hong Kong Airlines as well as Hainan Airlines Holding Co Ltd.

Budget carrier Hong Kong Airlines was ordered by Hong Kong’s air transport regulator on Monday to shore up its financial position by Dec. 7 or risk the suspension or loss of its licence.

Hainan Airlines, which has seen declining profits, said in a Shanghai stock exchange filing on Monday that it will seek 4 billion yuan ($568 million) in loans from eight banks led by China Development Bank.

The funds will be used to cover the costs of fuel, maintenance charges, staff salaries and operational expenses, it said in the filing.

$1 = 7.0389 Chinese yuan renminbi

Reporting by Meg Shen; Editing by Edmund Blair and Susan Fenton

American Airlines Announces 20 New Routes for Summer 2020

FORT WORTH, Texas — American Airlines customers will have a lot to be thankful for as the airline plans to launch an additional eight new domestic routes this summer, offering customers a total of 20 new seasonal routes in summer 2020. The new routes include service to Martha’s Vineyard (MVY) and Nantucket (ACK) in Massachusetts and new service from Jackson, Mississippi (JAN) and Des Moines, Iowa (DSM), to Miami (MIA), the airline’s gateway to Latin America and the Caribbean. 

“Every year, we evaluate our network and look to create more routes and serve unique destinations whether we’re entering new markets like Casablanca or adding more service to places like Traverse City, Michigan,” said Vasu Raja, American’s Senior Vice President of Network Strategy. “We continue to deliver the best network with the most options for our customers domestically and internationally during the most popular vacation time of the year.” 

Domestic additions

Beginning in June, American will add two new ways to get to the lighthouses and sandy beaches of Martha’s Vineyard from two connecting hubs on the East Coast — Philadelphia (PHL) and Charlotte (CLT). The airline will also introduce a new route to the cobblestone streets of Nantucket with Saturday service from PHL. All three flights will be operated on an Embraer 175, featuring 12 First Class seats and 64 Main Cabin seats. Next summer, Traverse City (TVC) will see direct service from PHL and Ronald Reagan Washington National Airport (DCA), giving customers access to the shores of Lake Michigan’s Grand Traverse Bay every Saturday. The airline will also introduce new Saturday service from Dallas-Fort Worth (DFW) to Portland, Maine (PWM) operated on an Airbus A319 aircraft.

MIA is American’s gateway to Latin America and the Caribbean, and, next summer, customers flying from JAN and DSM will have nonstop service to MIA on Saturday and Sunday from June through August. Flight times will complement one-stop connections to vacation favorites like Bonaire, St. Vincent, and Montego Bay, Jamaica.

American previously announced seasonal service to National Parks in Kalispell (FCA) and Bozeman (BZN), Montana, and increased service to Alaska, including a new destination, Fairbanks (FAI), which will begin operating in May.

A summer overseas

In August, American announced an international expansion that includes entering Africa for the first time with service to Casablanca, Morocco (CMN), from PHL and seasonal service from Chicago (ORD) to Krakow, Poland (KRK); Prague, Czech Republic (PRG); and Budapest, Hungary (BUD). American will be the only US carrier providing service to KRK, BUD and PRG from ORD.

“Our future is bright, and we see summer 2020 as an opportunity for growth in the leisure destinations our customers truly value,” Raja continued. “We have 20 new seasonal routes to choose from — narrowing down where to go will be the hardest part.”

New flights will be available for purchase Nov. 25.

Boeing, Air Astana Announce Intent To Buy 30 737 MAX Airplanes

  • Flag carrier of Kazakhstan intends to order the 737 MAX for its new low-cost airline FlyArystan

DUBAI, United Arab Emirates, Nov. 19, 2019 /PRNewswire/ — Air Astana intends to order 30 Boeing 737 MAX 8 airplanes to serve as the backbone of its new low-cost airline FlyArystan, the Kazakh flag carrier and Boeing announced at the Dubai Airshow. The companies today signed a letter of intent for the 30 airplanes with a list price value of $3.6 billion.

Since beginning operations in May 2002, Air Astana has steadily grown its business from its hubs in Almaty and Nur-Sultan (formerly Astana), sprouting a network that serves major cities across Kazakhstan, Central Asia, Asia, China, Europe and Russia. It operates a growing fleet that includes the Boeing 757, 767 and the Airbus A320 family.

In May, Air Astana launched FlyArystan to better compete in the growing low-cost segment. The company says the new airline has seen strong ticket sales in just the first few months of operation. The plan is to expand the fast growing domestic network, with international services to Moscow commencing next month.

“Since its launch in May this year, FlyArystan has exceeded all expectations and it is clear that low cost air travel has a great future in Kazakhstan and Central Asia,” said Peter Foster, President and CEO of Air Astana. “Air Astana has had a strong relationship with Boeing ever since the airline started flying in 2002 with a pair of 737NGs. Today we operate both 757s and 767s and we believe that the MAX will provide a solid platform for the growth of FlyArystan throughout our region, once the aircraft has successfully returned to service”.

“Air Astana has become one of the leading airlines in Central Asia with its deep focus on safety, reliability, efficiency and customer service. At Boeing, we share those same values and are honored to expand our partnership with the 737 MAX,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “We believe the efficiency and reliability built into the 737 MAX will be a great fit for FlyArystan. We look forward to working with Peter and his team finalize an agreement that meets their fleet and operational requirements.”

The 737 MAX 8 is part of a family of airplanes that offer 130 to 230 seats and the ability to fly up to 3,850 nautical miles (7,130 kilometers). With improvements such as the CFM International LEAP-1B engine and Advanced Technology winglets, the 737 MAX provides operators a 14% improvement over today’s most efficient single-aisle airplanes and extended range to open up new destinations.

3D imagery, 737 MAX, MAX, 737 MAX 7, 737 MAX8, 737 MAX 9

Boeing, Biman Bangladesh Airlines Announce Order for Two 787-9 Dreamliner Jets

  • Dreamliner family pivotal to airline’s strategy of operating a modern fleet
  • Biman pilots begin using Jeppesen Flite Deck Pro X to access mobile charts, navigational information to increase situational awareness

DUBAI, United Arab Emirates, Nov. 17, 2019 /PRNewswire/ — Boeing [NYSE: BA] and Biman Bangladesh Airlines (Biman) announced today at the 2019 Dubai Airshow that the carrier is expanding its 787 Dreamliner fleet with two additional airplanes valued at $585 million at list prices.

The purchase – recorded in October as an unidentified order on Boeing’s website – complements Biman’s fleet of 787-8 jets with the larger and longer-range 787-9 variant. The national flag carrier of Bangladesh says the addition of the 787-9 will help modernize its fleet and expand its international network. 

“One of our key priorities is to have a modern fleet with technologically-advanced airplanes that will enable us to expand our international reach,” said Air Marshal Muhammad Enamul Bari, Former Chief of Air Staff, Chairman Board of Directors, Biman Bangladesh Airlines. “While we have a good domestic network, we plan to extend our international network to include more destinations in Europe, Asia and the Middle East. The 787 with its technological superiority, excellent operational performance and passenger experience will enable us to achieve that goal,” he added.

The 787-9 is part of a three-member family that offers long range and unmatched fuel efficiency in the 200 to 350 seat market. For Biman Bangladesh, the 787-9 can carry 298 passengers in a standard three-class configuration and fly up to 7,530 nautical miles (13,950 kms) while reducing fuel use and emissions by up to 25 percent compared to older airplanes.

“Biman Bangladesh is showing us the powerful potential of the Dreamliner family. Just last month, the airline launched a new non-stop flight from its hub in Dhaka to Medina, Saudi Arabia. It’s a great example of the 787-8 serving as a ‘market opener.’ And now, Biman adds the 787-9 which brings more seats, more range and more cargo-carry capability for the routes that need it. The two will form a profitable network solution for Biman,” said Stan Deal, president and chief executive officer, Boeing Commercial Airplanes.

Boeing also provides services that help Biman operate more efficiently. As part of a multiyear agreement, the airline’s pilots this year began using the Jeppesen Flite Deck Pro X electronic flight bag (EFB) platform to access mobile charts and navigational information, increasing their situational awareness on the ground and in the air.

Since entering service in 2011, the 787 family has enabled the opening of more than 250 new point-to-point routes and saved more than 45 billion pounds of fuel. Designed with the passenger in mind, the 787 family delivers an unparalleled experience with the largest windows of any commercial jet, large overhead bins with room for everyone’s bag, comfortable cabin air that is cleaner and more humid and includes soothing LED lighting.

Azul Receives the First Airbus A321neo in Brazil

The aircraft is the first of 13 ordered and will allow the company to simultaneously grow its high-density domestic routes and reduce seat-cost

SÃO PAULO, Nov. 12, 2019 /PRNewswire/ —  Azul S.A., “Azul”, (AZUL), the largest airline in Brazil by number of cities served and daily departures, receives today the first Airbus A321neo ever delivered in Brazil. Configured in a 214 seat layout and powered by CFM International’s Leap-1A engines, the aircraft is the first of 13 ordered. The airline has chosen the A321neo to fly its high-density domestic routes and will provide customers with an industry leading inflight experience, including larger overhead bins, mood-lighting and individual touch-screen inflight entertainment.

“The A321neo is an important milestone for Azul once it will allow the company to simultaneously grow its route network and become more efficient. Customers will enjoy the extra legroom of our Espaco Azul product as well as free unlimited snacks and drinks. The new Airbus will also feature individual seat-back touch screen entertainment with stored content and soon to come streaming live-TV and Wifi”, says John Rodgerson, CEO of Azul.

About Azul
Azul S.A., the largest airline in Brazil by number of flight departures and cities served, offers 910 daily flights to 114 destinations. With an operating fleet of 133 aircraft and more than 12,000 crewmembers, the Company has a network of 237 non-stop routes as of September 30, 2019. In 2019, Azul was awarded best airline in Latin America by TripAdvisor Travelers’ Choice and also best regional carrier in South America for the ninth consecutive time by Skytrax. In 2018, the Company was elected best airline by Kayak’s Flight Hacker Guide. Azul also ranked as most on-time airline in Brazil in 2018 according to FlightStats. For more information visit www.voeazul.com.br/ir

IAG Ups Bet on Latin America with Air Europa Takeover

* Buys Air Europa for 1 bln euros

* To be funded by external debt

* Shares rise more than 2%

* To be run by Iberia CEO

* Regulators may set requirements -analysts

Nov 4 (Reuters) – IAG, the parent of British Airways and Spain’s Iberia, announced a 1 billion euro ($1.12 billion) takeover of Spain’s Air Europa to boost its presence on routes to Latin America and the Caribbean.

The deal follows a setback in Latin America for IAG after Chile’s Supreme Court ruled against a plan that would have allowed it to bolster cooperation with partners in the oneworld airlines alliance.

BA parent IAG ups bet on Latin America with Air Europa takeover
Ryanair Chief Executive Michael O’Leary attends a Reuters Newsmaker event in London

Chile’s LATAM Airlines in September then announced it planned to leave the alliance, opting instead for a tie-up with SkyTeam member Delta Air Lines.

IAG shares initially rose more than 2% following the Air Europa takeover announcement but some analysts said IAG may have to shed routes in order to win regulatory approval.

IAG shares were up 1.2% at 1315 GMT.

Ryanair CEO Michael O’Leary said his company will ask the UK’s market watchdog to force IAG to make divestments as part of its Air Europa takeover, a deal he said would be bad for competition.

“Potential remedies, perhaps in the form of slot release or behavioural restrictions, may be required and these could impact the potential synergies,” an analyst at Liberum wrote in a note.

IAG also owns carriers Iberia Express, Level, Ireland’s Aer Lingus and Vueling.

“We are not convinced that having just another brand platform is the optimal move, and could see it potentially combining with Level, Vueling or potentially Iberia Express after some time,” analysts at Bernstein said.

FILE PHOTO: An Air Europa-branded Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle

Air Europa serves 69 destinations, including long-haul routes to the Americas and the Caribbean. It had a fleet of 66 aircraft at the end of 2018.

Air Europa’s Spanish parent company Globalia earlier this year received authorisation from the Brazilian government to explore the possibility of flying domestic routes within Latin America’s largest economy.

It is unclear if that authorisation will remain with Globalia or be transferred to IAG.

Air Europa will initially keep its brand and as it gets integrated into the existing hub at Madrid it will be a standalone operation run by Iberia boss Luis Gallego, IAG said.

It will also withdraw Air Europa from the SkyTeam alliance once the deal is completed. Air Europa has a joint venture with Air France-KLM.

“This is of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs,” said Gallego, adding that Madrid had the potential to serve as a gateway between Asia and Latin America.

IAG said it expected the Air Europa deal, which will be funded through external debt, to close in the second half of next year and for it to add to its earnings in the first full year after the closure.

($1 = 0.8951 euros) (Reporting by Yadarisa Shabong in Bengaluru; additional reporting by Andres Gonzalez in Madrid and Marcelo Rochabrun in Sao Paulo, editing by Patrick Graham and Jason Neely)

An Air Europa Boeing 737 airplane takes off at the airport in Palma de Mallorca

Brazil to Lure Airlines to Fly Domestic, Taking Meetings with Three Carriers

BRASILIA (Reuters) – Brazil is determined to lure airlines to operate domestic flights in Latin America’s largest aviation market, and is taking meetings with at least three carriers, a senior government official told Reuters.

“We are going to talk with Jet Blue, we are going to talk with Volaris, a Mexican group … we are going to talk with Sky Airline, which is Chilean,” Ronei Glanzmann, Brazil’s civil aviation secretary, told Reuters on the sidelines of the ALTA Airline Leaders Forum, an industry conference.

“These are conversations to introduce Brazil to them, they do not mean that the airlines are saying that they will come here,” he added.

Glanzmann said the meetings with Volaris and JetBlue Airways Corp <JBLU> will take place on Monday.

A representative for Sky said they had canceled their participation in the ALTA conference due to the civil unrest in Chile, but declined to comment on taking a meeting with the Brazilian government. Jet Blue and Volaris did not immediately respond to a request for comment.

Brazil’s government has recently begun a push to open its aviation market, the largest in Latin America. Right-wing president Jair Bolsonaro has allowed foreign carriers to set up domestic carriers in the country.

Currently, Brazil’s domestic air travel market is highly concentrated among three airlines. Until earlier this year, there was a fourth player, Avianca Brasil, but the airline stopped operations in May after filing for bankruptcy operations late last year, highlighting the high risk and volatility of operating in Brazil.

Reaction to Brazil’s liberalization has been slow, but already Spanish airline group Globalia has declared its intention to operate a domestic airline in Brazil. But Glanzmann hopes others will too.

His strategy, he said, involves airlines dipping their toes in the Brazilian market first by operating international flights.

“We are working first with international routes, but we are already working so that those operations will become domestic operations in the Brazilian market,” Glanzmann said.

In the past year, four foreign low cost airlines have begun operating international flights to Brazil: JetSMART, which belongs to Indigo Partners, Sky Airline, Norwegian Air Shuttle <NWARF> and Argentina’s Flybondi.

Still, some industry watchers are skeptical that anyone will attempt to enter Brazil’s domestic market anytime soon.

“We don’t see anything changing in the short term regarding a new low cost airline operating domestically,” said Eduardo Sanovicz, who heads ABEAR, an industry group that represents Brazil’s two largest airlines. “For a company to start flying in Brazil, they will need to know that they will have the same costs as we do.”

Brazil’s carriers have long complained about high costs of operating in Brazil, especially value-added taxes on fuel that can be as high as 25%.

(Reporting by Marcelo Rochabrun; Editing by Nick Zieminski)

Alstom to Supply 39 Additional Coradia Polyvalent Trains to the Grand Est Region

  • contract worth over 360 million euros in France

22 October 2019 – Alstom will supply 39 additional Coradia Polyvalent trains to the Grand Est region for the sum of approximately 360 million euros[1]. The region had already ordered 40 Coradia Polyvalent trains, of which 36 have already been delivered. Deliveries of these new trains will be staggered between 2022 and 2024.

Firstly, this new order covers 30 trains intended for cross-border circulation in Germany. These 4-car trains, which are dual mode – dual voltage 25 kV / 15 kV and comply with German safety requirements, will run at 160 km/h, serving the German states of Saarland, Rhineland-Palatinate and Baden-Württemberg. The 30 Coradia Polyvalent cross-border trains will offer a first-class zone and an area for bicycles, and will incorporate the new TSI PRM[2] 2014 standard, notably offering more spacious toilets to facilitate movement for passengers with reduced mobility. The first cross-border trains will be delivered at the end of 2023.

Secondly, nine additional Coradia Polyvalent trains, consisting of five 4-car and four 6-car trains, have been added to the existing fleet for domestic connections. These new trains will benefit from the same special features as those already in operation in the Grand Est region. 

“Alstom is proud of this new sign of trust from the Grand Est region. The expertise and innovation capacities of our French teams are mobilised to support the region in developing cross-border mobility. This order also contributes to the activity of Alstom’s Reichshoffen site,” says Jean-Baptiste Eyméoud, President of Alstom in France.

Coradia Polyvalent belongs to Alstom’s Coradia range of trains. With its modular architecture, it can be adapted to the requirements of each public transport authority as well as to different types of use: suburban, regional and intercity. It comes in three lengths (56, 72 or 110 metres) and offers optimal comfort to passengers, whatever the length of the journey. The train is both ecological and economical due to its low energy consumption, its compliance with the latest emissions standards in thermal mode and its reduced maintenance costs. Coradia Polyvalent is the first French regional train to comply with all European standards, in particular with regard to access for people with reduced mobility.

To date, 387 Coradia Polyvalent trains have been ordered as part of the contract awarded to Alstom by SNCF in October 2009, including 320 Coradia Polyvalent for Régiolis by 9 French regions and 67 Coradia Liner by the French state, the authority responsible for the country’s TET (intercity) trains. Régiolis has already covered nearly 85 million kilometres in commercial service.

The Coradia Polyvalent train also meets the needs of the export market: 17 trains have been ordered by SNTF (Algeria) and 15 trains by APIX (Senegal). 

This is Coradia Polyvalent’s second cross-border application as the region of Auvergne-Rhône-Alpes has ordered 17 Léman Express Coradia Polyvalent trains, to be commissioned on the CEVA cross-border line between France and Switzerland in mid-December 2019.

The manufacturing of Coradia Polyvalent secures more than 4,000 jobs in France for Alstom and its suppliers. Six of Alstom’s 12 sites in France are involved in the project: Reichshoffen for the design and assembly, Ornans for the engines, Le Creusot for the bogies, Tarbes for the traction chains, Villeurbanne for the on-board electronics and signalling products, and Saint-Ouen for the design.

[1] Booked in the second quarter of the current fiscal year

[2] Technical Specifications for Interoperability relating to Persons with Reduced Mobility

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