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Ryanair Acquires Remainder of Austria’s Laudamotion

VIENNA (Reuters) – Irish budget airline Ryanair has acquired the remaining quarter of its Austrian unit Laudamotion for an undisclosed price, it said on Tuesday.

Europe’s largest budget carrier previously owned a 75 percent stake in Laudamotion. Former Formula One racing champion Niki Lauda, who last year bought back and re-branded the airline he founded, gave Ryanair the option to buy the whole carrier.

“Laudamotion is now a 100 percent-owned subsidiary of Ryanair Holdings plc,” Laudamotion said in a statement. It detailed plans to grow rapidly in the coming years, to 7.5 million passengers and 30 aircraft in 2021 from 4 million passengers and 19 aircraft this year.

At a news conference at Vienna’s main airport, Ryanair Chief Executive Michael O’Leary declined to disclose the price his company paid for Laudamotion.

The deal for the last stake was completed on Dec. 31 but had nothing to do with Lauda’s brief return to hospital shortly afterwards, O’Leary said. Lauda will stay on as chairman of Laudamotion’s board.

“Niki has great experience in the airline industry, particularly in the airline industry in Germany and in Austria,” O’Leary said when asked about Lauda’s role. “He knows all the players. When we were buying it (Laudamotion) he had access to the various ministers in Austria, which we didn’t have.”

(Reporting by Francois Murphy; editing by Jason Neely and Emelia Sithole-Matarise)

Norwegian Air to Shut Bases & Axe Routes to Cut Costs

OSLO, Jan 16 (Reuters) – Budget carrier Norwegian Air will axe a number of routes in Europe and to the U.S and the Middle East, shutting several bases as part of a cost-cutting plan announced last month.

The fast-growing carrier has been under pressure over the past 18 months to control costs and shore up its balance sheet as it looks to crack the transatlantic market by undercutting established rivals.

“The company has reached a point where it needs to make necessary adjustments to its route portfolio in order to improve the sustainability and financial performance in this very competitive environment,” Helga Bollmann Leknes, Norwegian Air’s Chief Commercial Officer, said in a statement to Reuters.

The airline will close its bases in Palma de Mallorca, Gran Canaria, and Tenerife in Spain, as well as in Stewart and Providence in the United States. It will also shut the 737 base at Rome’s Fiumicino airport, but keep its 787 Dreamliner base there.

The company did not give a specific number of jobs that would be cut, but said it would seek to minimise redundancies.

The flights affected are operated by Boeing 737-800 and 737 MAX 8 models. Flights operated by Boeing Dreamliner planes are not affected, Norwegian said.

“These aircraft are primarily used on European routes, but also some longer routes between Europe and the U.S. and Europe and the Middle East,” Norwegian Air said in the statement, adding that this would start in April and would continue “for the best part of 2019”.

The measures announced on Wednesday are part of a cost-saving programme of 2 billion crowns ($234 million) announced in December, Norwegian said.

($1 = 8.5325 Norwegian crowns)

(Written by Gwladys Fouche; Editing by Terje Solsvik & Elaine Hardcastle)

Unraveling The Boeing 737 MAX Lion Air Crash

(Reuters) – The crash of a Boeing Co 737 MAX jet in Indonesia on Oct. 29 has raised questions on whether the manufacturer shared enough information with regulators, airlines and pilots about the systems on the latest version of its popular narrow-body plane.

The jet operated by budget carrier Lion Air crashed into the Java Sea shortly after take-off from Jakarta, killing all 189 people on board.

WHAT IS NEW ON THE 737 MAX?

The most hyped features of the 737 MAX compared with its predecessor, the 737NG, are more fuel-efficient engines.

But as a result of the larger engines, which are placed higher and further forward of the wing, the jet’s balance changed. To address that, Boeing put in place more anti-stall protections, Leeham Co analyst Bjorn Fehrm said in an online post.

An automated protection system called the Maneuvering Characteristics Augmentation System (MCAS) kicks in when the angle of attack is too high, when the plane’s nose is too elevated, threatening a stall.

WHAT IS ‘ANGLE OF ATTACK’?

On paper, it measures the angle between the air flow and the wing. But it is so fundamental to flight that historians say the only instrument on the Wright Brothers’ first aircraft was a piece of yarn designed to measure it.

If the angle of attack is too high, the airflow over the wing is disturbed, throwing the plane into an aerodynamic stall.

One of two angle of attack sensors on the Lion Air jet was faulty, according to Indonesian investigators.

The U.S. Federal Aviation Administration (FAA) last week warned airlines that erroneous inputs from those sensors could lead the jet automatically to pitch its nose down even when autopilot is turned off, making it difficult for pilots to control.

WHICH AIRLINES OPERATE THE 737 MAX?

Boeing has delivered 241 of the jets to customers since it entered service last year, according to its website.

Major operators include Southwest Airlines, American Airlines, Norwegian, Lion Air, Air Canada, China Southern, China Eastern and flydubai.

Another 4,542 have been ordered but not yet delivered.

WHAT DID AIRLINES AND PILOTS KNOW ABOUT THE SYSTEM?

Lion Air’s flight manual did not contain information about the new anti-stall system, according to investigators and an airplane flight manual seen by Reuters. U.S. pilots were also not made aware in training courses, pilot unions say.

American Airlines said it was “unaware” of some of the functionality of the MCAS system. [L4N1XQ23Q]

Boeing Chief Executive Dennis Muilenburg told Fox Business Network on Tuesday that Boeing provides “all of the information that’s needed to safely fly our airplanes”.

HOW WOULD A PILOT SHUT OFF THE SYSTEM?

Pilots can stop the automated response by pressing two buttons if the system behaves unexpectedly, the FAA says.

That action is set out in a checklist used by Lion Air pilots for in-air troubleshooting, an instructor said. It is also required to be committed to memory by pilots.

Pilots on a flight from Jakarta to Bali the day before the crash experienced a similar sensor issue but managed to land safely by turning off the system, the New York Times reported.

HOW WAS THE SYSTEM APPROVED?

The FAA holds the main responsibility for certifying Boeing jets and training programs for pilots, but local regulators also issue approvals for airlines based in their countries.

An unresolved question is how Boeing measured the system’s reliability and on what basis the FAA certified it as safe.

HOW ARE PILOTS TRAINED?

An FAA document on training requirements for 737 MAX pilots transitioning from the older 737NG has no reference to the new anti-stall system.

Lion Air says it followed a training regime approved by U.S. and European regulators. The training was restricted to three hours of computer-based training and a familiarization flight.

However, Brazil’s regulator told Reuters that it had required specific training for pilots on the anti-stall system.

WHAT HAS CHANGED SINCE THE CRASH?

Boeing last week issued a bulletin to airlines reiterating existing procedures and advising them to add information on the anti-stall system to flight manuals, which was quickly followed by an FAA directive making that mandatory.

The FAA and Boeing are studying the need for software changes, as well as revisions to training and operating procedures on the 737 MAX, the regulator said.

WHEN WILL THE FIRST REPORT ON THE CRASH BE RELEASED?

A preliminary report will be released on Nov. 28 or 29, according to Indonesian investigators. However, divers have yet to locate the airline’s cockpit voice recorder, which would shed light on pilot interactions that are important for gaining a fuller picture of the circumstances of the crash.

(Reporting by Jamie Freed in Singapore, Tim Hepher in Paris, David Shepardson in Washington, Eric M. Johnson in Seattle, Tracy Rucinski in Chicago and Marcelo Rochabrun in Sao Paolo; Editing by Dan Grebler)

Image from www.boeing.com

EasyJet Still Interested In Restructured Alitalia

Oct 31 (Reuters) – Budget airline EasyJet said on Wednesday that it had submitted a revised expression of interest for a restructured Alitalia, in response to the new Italian government’s ongoing sales process.

EasyJet had said in September that it was still talking to the Italian government over Alitalia’s short-haul operations, adding that any deal needed to make commercial sense.

Alitalia, a symbol of Italy’s post-war economic boom but now struggling to compete against low-cost carriers and high speed trains, was put under special administration last year and has been looking for a buyer.

EasyJet said the content of the expression of interest was subject to confidentiality, but that the move was in line with its existing strategy for Italy.

Germany’s Lufthansa and Wizz Air had submitted expressions of interest this year for Alitalia or parts of its business, but the lengthy formation of a new anti-establishment government delayed the process.

Wizz Air did not immediately comment when asked if the company had also submitted a revised expression of interest. Lufthansa said on Tuesday that it had no interest in participating in a government-led restructuring of the Italian carrier.

Delta Air Lines declined to comment on Friday on reports that the second biggest U.S. carrier was interested in buying a stake in Alitalia.

The deadline to sell Alitalia was meant to be on Wednesday and Italy’s Deputy Prime Minister Luigi Di Maio said last week that many private investors were interested in the airline.

(Reporting by Noor Zainab Hussain in Bengaluru and additional reporting by Alistair Smout in London; Editing by Elaine Hardcastle and Jane Merriman)

David Neeleman Planning New US Budget Airline

(Reuters) – WestJet Airlines Ltd and JetBlue Airways Corp founder David
Neeleman is planning to launch a new budget airline in the United States,
with $100 million in startup capital, according to a report from the Airline
Weekly.

The airline, tentatively called Moxy, has secured orders for 60 Bombardier
CS300 aircraft, the publication said, citing people familiar with the matter.
(https://bit.ly/2HYULKP)

The report also said that former Air Canada Chief Executive Officer Robert
Milton and former International Lease Finance Corp CEO Henri Courpron are
among early investors along with Neeleman himself.

Bombardier declined to comment on the report, while Neeleman was not
immediately available for comment.

(Reporting by Karan Nagarkatti in Bengaluru; Editing by Shounak Dasgupta)

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