Tag: budget (Page 3 of 5)

IndiGo Must Step Up Efforts to Replace Aircraft with Problem Pratt & Whitney Engines

November 25, 2019 / WIL BALDWIN

The logo of IndiGo Airlines is pictured on passenger aircraft on the tarmac in Colomiers near Toulouse

NEW DELHI (Reuters) – India’s air safety watchdog said IndiGo must do more to fix its aircraft fitted with Pratt & Whitney engines, linked to in-flight shutdowns, as it fears the budget airline may not meet its Jan. 31 deadline to replace them.

Deliveries of new planes taken by IndiGo must be used to replace the aircraft that are fitted with the problem Pratt engines, the Directorate General of Civil Aviation (DGCA) said on Monday. Those planes should then be grounded until their engines are replaced with new ones, after which they can fly again.

Indigo is the biggest customer of Airbus A320neo jets.

The regulator’s move effectively prevents India’s top airline from expanding its network until it has replaced all the Pratt & Whitney engines.

United Technologies’ Pratt & Whitney engines have consistently caused issues since they entered into service in 2016, forcing IndiGo to ground its planes several times.

In a recent review meeting with the airline, the DGCA felt that the steps taken by IndiGo so far to replace all the engines “do not instil enough confidence with regard to the timely completion of the said task”.

“If left unaddressed, we may find ourselves in a situation, in which, we remain saddled with large number of aircraft with unmodified engines … and we are left with the only option i.e. to ground them,” the regulator said in the statement.

On Nov. 1 the regulator had ordered the airline to replace all P&W engines on its fleet of almost 100 twin-engined Airbus A320neo family aircraft with new power units by Jan. 31, 2020.

If the replacement is not complete, all planes that still have unmodified engines will be grounded and could cause “large scale disruptions” in operations. The latest directive is aimed at preventing such a situation, the DGCA said.

IndiGo, owned by InterGlobe Aviation, said the current schedule remains intact, and it is working with P&W and Airbus to meet the DGCA guidelines.

(Reporting by Aditi Shah, editing by Louise Heavens)

Vodafone Extends Tech Partnership with Ryanair

November 19, 2019 / WIL BALDWIN

FILE PHOTO: Different types of 4G, 5G and data radio relay antennas for mobile phone networks are pictured on a relay mast operated by Vodafone in Berlin

LONDON (Reuters) – Vodafone <VOD> has secured a seven-year technology partnership with Ryanair <RYAAY> to handle services including online booking, passenger boarding and in-flight transactions for the Irish airline in Europe.

The two companies said on Wednesday they had extended an existing partnership for Vodafone Business to support 300 Ryanair sites and some 153 million passengers across 40 countries.

As part of the agreement, the British mobile company will help Europe’s biggest budget airline to speed up the time it takes to connect a new airport or site for use. It should also lead to a faster turnaround of planes.

“Airline passengers will demand even more in the coming years, and we will work alongside Ryanair to help them prepare for the future using our full portfolio of products and services,” said Vinod Kumar, head of Vodafone Business.

Vodafone Business is the mobile operator’s enterprise arm that offers cloud IT services and the connection of unlimited devices on its Internet of Things network for small and multinational companies.

Vodafone Business accounted for 30% of group service revenue in its financial year ending March 31, 2019.

(Reporting by Kate Holton; Editing by Mark Potter)

Boeing to Give Southwest Board 737 MAX Update This Week

November 18, 2019 / WIL BALDWIN

FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California

CHICAGO (Reuters) – Boeing Co <BA> this week will present to the board of its largest 737 MAX customer, Southwest Airlines Co <LUV>, an overview of its plans to return the grounded jet to service, a spokesman for the airline said on Monday.

The meeting on Wednesday and Thursday comes after Southwest Chief Executive Gary Kelly said last month that the airline could look next year at diversifying its fleet beyond Boeing 737 aircraft. Budget-friendly Southwest has structured its business model around flying only 737 aircraft for the past 50 years and bet its entire growth strategy on the 737 MAX, the latest iteration of Boeing’s narrowbody workhorse.

With the MAX parked since mid-March following crashes on Lion Air and Ethiopian Airlines that together killed 346 people, Southwest has had to scale back its growth plans and cancel north of 100 daily flights, wiping $435 million from its earnings between January and September.

Kelly, who is also Southwest’s chairman of the board, invited Boeing to address the timing and logistics of dozens of 737 MAX deliveries that it was supposed to receive this year. The meeting will also give Boeing a chance to defend its product and the steps it is taking to restore public confidence after the two fatal crashes, sources said.

“It’s an overview of the Return to Service Plan, timing, and plans moving forward,” Southwest spokesman Chris Mainz said. “Just a good chance for our Board to hear directly from Boeing, but nothing more to it than that.”

It is not the first time that Boeing has presented to a regularly scheduled board meeting, he said.

Southwest had 34 MAX jets in its fleet when global regulators grounded the aircraft in March. The airline was supposed to receive 41 more 737 MAX planes before the end of the year, but most of those deliveries are now scheduled for 2020.

Hundreds of undelivered 737 MAX jets are parked at Boeing facilities in Washington state, where the planemaker is facing a delivery logjam once the U.S. Federal Aviation Administration gives approval for them to fly commercially.

While Boeing is targeting approval in December, the FAA has pushed back on any fixed timeline.

Southwest has removed the 737 MAX from its flying schedule until early March. The airline has said it will need one to two months to train its pilots and prepare the jets for flight once regulators approve new software and pilot training.

(Reporting by Tracy Rucinski in Chicago; Additional reporting by Tim Hepher in Dubai; Editing by Matthew Lewis)

Jet Grounding and Delays Overshadow Dubai Airshow

November 15, 2019 / WIL BALDWIN

FILE PHOTO: Emirates Airline Boeing 777 planes at are seen Dubai International Airport in Dubai

DUBAI (Reuters) – An eight-month crisis over the grounding of Boeing’s 737 MAX jets and widespread industrial delays are setting an unpredictable backdrop to next week’s Dubai Airshow, with some airlines reviewing fleet plans even as others look for bargains.

The biennial civil and military expo is a major showcase for wares from jumbo jets to military drones but faces growing questions over demand and the capability of overstretched suppliers, delegates arriving for the Nov. 17-21 event said.

Top of their agenda will be the worldwide grounding of the 737 MAX in the wake of two deadly crashes.

Investors who have pushed up Boeing <BA> shares believe the planemaker is turning a corner after the eight month grounding, with the company predicting commercial flights in January. But it also faces a logjam of undelivered jets that could take 1-2 years to unwind.

State-owned flydubai expects its fleet will now shrink by a third this year, highlighting the cost of the grounding for the biggest MAX customer outside the United States. “Flydubai has very big ambitions … given the scale of those ambitions, there’s little they can do but wait and watch, like everyone else,” said Teal Group analyst Richard Aboulafia.

Boeing lost one potential MAX customer earlier this year as Saudi budget airline flyadeal ditched a provisional order.

Experts say airline frustrations with plane and engine makers could also disrupt plans by the world’s largest jetmakers pushing for order endorsements. The Middle East’s largest aerospace event will give Airbus <EADSY> and Boeing a chance to sit with some of their top customers who have threatened to walk from billions in deals.

The planemakers are struggling to deliver aircraft on time, forcing airlines to delay expansion plans, while engines on some jets are consistently causing issues for carriers.

“This seems to be a systemic issue across the board,” said Novus Aviation Capital Managing Director Mounir Kuzbari.

“As a result, we see stress on the relationship between airlines and the plane and engine makers.” Dubai’s Emirates, by far the region’s biggest airline, has issued a stern warning to plane and engine makers. It will no longer take delivery of aircraft that do not meet performance expectations, raising doubts over $35 billion in pending orders.

Airbus, Boeing and engine makers will be looking to allay concerns as they finalise jet sales with Emirates, which is also looking at reducing an order for the delayed Boeing 777X.

Airbus is seen close to a final order for A330neo and A350 jets while Boeing aims to salvage a provisional order for 787s.

GULF PRESSURE

Air Arabia could, however, steal the show with a planned order of up to 120 Airbus jets, industry sources say.

Kuwait’s Jazeera Airways is in negotiations with Airbus and Boeing for around two dozen airplanes.

Past editions of Dubai’s premier trade event have featured blockbuster deals, often led by Emirates as Gulf carriers redrew the aviation map around their ‘super-connector’ hubs.

But the Gulf hub model is increasingly under pressure as the once-rapid growth of the region’s biggest airlines slows.

“The market continues to be weak for all airlines in the region; we should see a further 2-3% reduction in passenger numbers for the full year,” said Diogenis Papiomytis, Frost & Sullivan’s Global Program Director for Commercial Aviation.

Middle East military leaders touring the displays will try to gauge whether they are on the cusp of another regional splurge on weapons after an escalation in Gulf tensions.

A series of attacks over the summer has highlighted potential security gaps among some of the world’s top defence spenders who now increasingly buy from China and Russia.

(Reporting by Alexander Cornwell, Tim Hepher, Ankit Ajmera, Stanley Carvalho; Editing by Mark Potter)

European Pilot Group Demands Action over Ryanair Sick Leave Policy

November 14, 2019 / WIL BALDWIN

DUBLIN (Reuters) – The European Cockpit Association (ECA) pilot group has urged regulators to take action over what it described as a “safety hazard” caused by Ryanair’s <RYAAY> approach to flight crews’ sick leave, according to a letter seen by Reuters.

Europe’s largest budget carrier has spent the last two years negotiating improved pay and conditions with its pilots and cabin crew after a revolt by some staff forced it to recognize trade unions for the first time.

The ECA, which represents pilots’ associations in 33 European countries, said Ryanair adopts a practice of systematically questioning absences due to certified sickness, leading to investigative and disciplinary meetings where staff are threatened with potential dismissal.

Asked about the ECA’s concerns, a Ryanair spokeswoman said the airline operates “a standard sick pay scheme, and like all employers, manages absenteeisms”.

The airline, which has never had a fatal crash and has one of the youngest fleets in Europe, regularly cites safety as its top priority.

The ECA said it raised the issue with the European Union Aviation Safety Agency (EASA) a year ago but that Ryanair’s “problematic approach” to flight crew’s sickness has not substantially changed.

“In fact, we are concerned that the safety hazard created by this approach remains fully in place, must be considered endemic, and quite evidently is not adequately addressed by the competent national authority: the Irish Aviation Authority (IAA),” the letter dated Nov. 5 said.

A spokeswoman for the ECA confirmed it had sent such a letter to the regulator, the second in a year, and that it was concerned that the safety hazard related to Ryanair’s policy remains unaddressed.

In the letter, the ECA said it was aware that the EASA raised the matter with the IAA following the initial complaint but that the Irish regulator told one of the ECA’s member groups that it was satisfied there was not a systematic issue of crews flying while unfit due to fear of sanction at Ryanair.

The IAA did not immediately respond to a request for comment.

Citing letters sent to staff, the ECA said Ryanair or broker agencies overseeing agency workers used by the airline have gone as far as threatening to halt pilots’ career progression, due to their sickness rate.

The pilot group called on the European regulator to ensure the IAA adequately fulfils its safety oversight role by summoning Ryanair to stop the practice of intimidating letters and investigative proceedings and also carry out an independent confidential survey among Ryanair crew.

(Story by Conor Humphries and Padraic Halpin, editing by Giles Elgood)

FILE PHOTO: A Ryanair commercial passenger jet takes off in Blagnac near Toulouse

Philippine Cebu Air Signs Airbus Aircraft Deal for $4.8 Billion

November 3, 2019 / WIL BALDWIN

Cebu Air finalises order for 16 Airbus jets

Expected to cut cost per seat, fuel emission

A330neo’s to be delivered between 2021 and 2024

Nov 4 (Reuters) – Philippines’ Cebu Air Inc has finalised the purchase of 16 long-range Airbus A330 neo jets worth $4.8 billion at list prices, the airline said on Monday.

The budget carrier, which operates 74 aircraft, mostly Airbus A320s, under the brand Cebu Pacific, is turning to larger and fuel-efficient jets for expansion, despite limited slots at the main gateway in the Philippine capital.

Scheduled to be delivered between 2021 and 2024, the 16 A330neo aircraft will be deployed on routes in the Philippines, Asia, Australia and the Middle East, Cebu Air said in a statement.

Reuters first reported that Cebu Air was close to buying A330neo or Boeing 787 aircraft in May.

In June, Cebu Air signed a signed a memorandum of understanding to acquire 16 A330neos, 10 A321XLRs and five A320neos, worth about $6 billion in total at list prices, during the Paris Air Show.

The new Airbus aircraft will cut fuel emissions and costs per seat, said Cebu Air Chief Executive Lance Gokongwei, adding that it would also help maximise seating capacity and the airline’s valuable slots in Manila and other major Asian cities.

(Reporting by Neil Jerome Morales; Editing by Clarence Fernandez)

Vietnam’s VietJet Orders 20 Airbus A321XLR Aircraft

October 31, 2019 / WIL BALDWIN

Oct 31 (Reuters) – VietJet Aviation has ordered 20 Airbus long-range A321XLR aircraft that the budget carrier hopes will support its international expansion as Vietnam’s aviation market heats up.

VietJet expects the first aircraft to be delivered in 2023, it said in a statement on Thursday, adding that it will be the “first carrier in the world” to operate the new long-range version of the single-aisle A320neo family jets.

Industry sources said VietJet would be among the first to put the XLR into service.

Vietnam’s largest conglomerate in August applied to launch an airline next year, intensifying competition in one of the fastest-growing aviation markets.

The sector includes Vietnam Airlines, Jetstar Pacific Airlines and Vietnam Air Services Co.

The airline also signed a separate agreement in Toulouse, France, for two A320/A321 aircraft simulators.

VietJet’s order book for Airbus aircraft now totals 186, the airline said.

In September, Reuters reported that Airbus sold 15 A321XLR jets to VietJet.

Airbus on Thursday confirmed that VietJet had placed a new order for 15 XLR and said another 5 would be converted to the new jet from the A321neo model.

VietJet CEO Nguyen Thi Phuong Thao said Thursday’s order will “modernise VietJet’s fleet as we look to strongly grow our international flight network.”

The airline currently flies to destinations including Japan, Hong Kong, Singapore, China and India.

(Reporting by Nikhil Kurian Nainan in Bengaluru; Additional reporting by Tim Hepher; Editing by Jason Neely and Dan Grebler)

Once Bankrupt Wow Air Returns From The Dead This October

September 9, 2019 / WIL BALDWIN

The last we heard of the Icelandic budget airline Wow Air was in March 2019 when it ceased operations without warning, stranding up to 4,000 passengers at the time. According to Yahoo, the airline is now on schedule to come back in October of this year, thanks to a major investment by USAerospace Associates.

Michele Ballarin, chief executive of USAerospace Associates, said in a press conference last week that Wow Air will relaunch with just two planes in operation, with the potential to increase that number to more than 10 aircraft by summer 2020. The relaunched Wow Air operations will be based at Dulles International Airport, located outside of Washington, DC, though it will have facilities in Reykjavik and nearby Keflavik International Airport.

Click the link for the full story! https://www.theverge.com/2019/9/9/20857460/wow-air-comeback-october-iceland-us-airport-dulles-bankruptcy

Japan’s Military Seek Eighth Straight Annual Defense Spending Hike

August 30, 2019 / WIL BALDWIN

TOKYO, Aug 30 (Reuters) – Japan’s military has asked for an eighth straight annual increase in defence spending to help pay for U.S.-made interceptor missiles, stealth fighters, and other equipment it wants to counter threats from North Korea and China.

The Ministry of Defence budget proposal released Friday calls for spending to increase 1.2 percent to a record 5.32 trillion yen ($50.48 billion) in the year starting April 1. Finance ministry officials will scrutinise the request before it is approved by Prime Minister Shinzo Abe’s cabinet.

Already one of the world’s biggest military spenders despite a constitution that forbids the possession of weapons to attack other countries, Japan has increased military outlays by a tenth over the past seven years. That growth is being driven by alarm over military build ups by its neighbours.

Japan’s spending, much of it on advanced weapons from the United States, has benefited the likes of Lockheed Martin Corp and Raytheon Co, and worried local contractors such as Mitsubishi Heavy Industries who have seen their share of defence spending shrink.

U.S. President Donald Trump has thanked Japan for buying the expensive U.S. equipment, helping curtail criticism of Japan amid trade tensions between Tokyo and Washington.

For the next fiscal year, Japan’s defense officials have asked for 115.6 billion yen to buy nine Lockheed Martin F-35 stealth fighters, including for the first time six short take-off and vertical landing (STOVL) B variants that it wants to operate from aircraft carriers. That purchase will help Japan project military power by extending the range at which the country’s Self Defense Forces can operate.

The defence ministry also wants 116.3 billion yen to bolster ballistic missile defences (BMD), including money for a new generation of interceptor missiles designed by Raytheon to shoot down incoming warheads in space. It also wants funds for vertical launch systems for ships and two planned ground-based Aegis Ashore radar missile tracking stations.

($1 = 105.3900 yen)

(Reporting by Tim Kelly; Editing by Michael Perry)

Wizz Air Looks to Connect the Dots with Long-Range A321’s

June 19, 2019 / WIL BALDWIN

LE BOURGET, France, June 19 (Reuters) – Wizz Air will use 20 new extended-range, narrow body Airbus jets primarily to connect existing destinations in its disparate network rather than to fly to new places, the budget airline’s Chief Executive Jozsef Varadi said on Wednesday.

Indigo Partners, the private equity firm of veteran low-cost airline investor Bill Franke, agreed on Wednesday to acquire 50 of the new long-range version of Airbus’ A321neo jet, 20 of which will go to Wizz.

Wizz, which operates a fleet of 113 Airbus A320 and Airbus A321, would not need to change its operating model to accommodate the new A321XLR jets, Varadi said, as it would be able to fly essentially the same planes a little longer.

“Our network spans from the Canary Islands to Astana in Kazakhstan, from Reyjavik in Iceland to Dubai,” Varadi told Reuters after the announcement at the Paris Airshow.

“The XLR gives use the opportunity to connect more dots in our existing network. This is what we’re looking at.”

Airbus opened the Paris Airshow with the launch of the A321XLR, but the announcement was overshadowed on Tuesday when Boeing said British Airways-owner IAG intended to order 200 of its grounded 737 MAX jets.

Hungary-based Wizz, which is focussed on central and eastern Europe, said it had used existing option positions to secure the deal for the A321XLRs, bringing the airline’s total of outstanding firm orders for Airbus aircraft to 276 jets.

Varadi said that in the longer term, it was possible the jet would help open routes to new destinations, but it was not a priority.

“We have always been excited about planting new flags in new territories,” Varadi said. “But the vast majority of the XLR capacity will come in existing markets.”

(Reporting by Alistair Smout; Editing by Mark Potter)

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