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Tag: Air Canada

Airbus Sales Chief Says No Need to Cut Production of A330neo

MONTREAL (Reuters) – Airbus <EADSY> sees enough demand for its wide-bodied A330neo passenger jet to keep production stable, Chief Commercial Officer Christian Scherer told Reuters on Wednesday.

With some airlines seen unlikely to take delivery of all the jets they have ordered, there has been speculation Airbus would have to trim production of the latest version of its most profitable long-range jet despite a recent flurry of new sales.

“Considering the demand I see on the A330neo I see no need to cut production levels,” Scherer told Reuters on the sidelines of an Air Canada <AC.TO> event in Montreal.

“Production is stable on the A330.”

Last year, Airbus secured 99 firm orders for the A330neo including 40 to an unidentified buyer in December.

Scherer said Airbus is also progressing toward reducing costs on its smallest jet, the A220. The company is targeting a double-digit percentage reduction in production costs.

(Reporting by Allison Lampert in Montreal; Editing by Matthew Lewis)

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)

Lufthansa, Deutsche Bahn Settle Air Cargo Dispute

German flag carrier Lufthansa and German national railway Deutsche Bahn have reached agreement on a long-festering dispute concerning an air cargo cartel.

The settlement was announced Aug. 26, although details are being kept confidential by mutual agreement.

The settlement ends a dispute before the Cologne regional court that has been ongoing since 2013.

Settling parties are DB Barnsdale, a wholly owned subsidiary of Deutsche Bahn, and Lufthansa Group member companies Lufthansa Cargo, Swiss International Air Lines and Deutsche Lufthansa.

Click the link for the full story! https://finance.yahoo.com/news/lufthansa-deutsche-bahn-settle-air-170533046.html

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

British Airways Loses New York Crown To Norwegian

LONDON (Reuters) – Norwegian Air Shuttle (NWC.OL) has overtaken British Airways as the biggest non-U.S. airline on transatlantic routes to and from the New York area, in the latest illustration of the low cost carrier’s move into British Airways territory.

Norwegian carried 1.67 million passengers to or from airports in the New York area in the 12 months to the end of July, compared with the 1.63 million carried by British Airways, data from the Port Authority of New York & New Jersey showed.

No-frills carrier Norwegian has been rapidly expanding in the transatlantic market over the last five years, prompting the owner of British Airways, IAG (ICAG.L), to try to buy it earlier this year.

The data showed four U.S. airlines, led by United, are the biggest carriers of international passengers out of the main airports in the New York area, which include John F. Kennedy International, LaGuardia and Newark Liberty International.

Air Canada is the biggest non-U.S. carrier of international passengers, but its dominance is on travel between the United States and Canada.

Norwegian, and other relatively recent entrants to the market such as Wow Air, have led a charge to shake up Europe’s long-haul flight market, offering ticket prices that can be as little as half those charged by traditional carriers.

The traditional airlines have responded by selling a new budget class of ticket, as well as setting up, in IAG’s case, new airline Level to compete directly with Norwegian on price.

Lufthansa has also started budget long-haul flights using its Eurowings brand.

Norwegian said in May it had rejected two approaches from IAG, which also owns the Iberia, Aer Lingus and Vueling brands, because they undervalued the company. IAG owns a 4.6 percent stake in Norwegian.

The pace of Norwegian’s growth – figures from July 2017 show it only carried 750,000 passengers into and out of the New York region – has weighed on its finances and it faces mounting pressure to control costs and shore up its balance sheet.

British Airways did not immediately respond to a request to comment on the figures.

(Reporting by Sarah Young; Editing by Mark Potter)

Foreign Airlines Face New Rivals As China Route Restrictions Ease

SHANGHAI (Reuters) – Foreign airlines that fly on 20 popular long-haul routes to China will face fresh competitive pressure as Beijing begins to ease decade-old restrictions on Oct. 1, allowing more Chinese carriers to offer service.

The change affects about 20 percent of Chinese long-haul daily capacity, according to data compiled for Reuters by Chinese aviation data firm Variflight.

It will turn up the heat on U.S. and European carriers like United Airlines (UAL.O) and Air France KLM (AIRF.PA), which have higher costs, lower outbound demand from their countries and less cultural appeal to Chinese travelers.

“The North American and European airlines are no match for the Chinese carriers,” said Corrine Png, chief executive of Singapore-based transport consultancy Crucial Perspective, citing the majority of traffic being driven by Chinese customers.

Some have already abandoned Chinese routes, with American Airlines (AAL.O) recently planning to drop Shanghai-Chicago service after also cancelling Beijing-Chicago and describing the routes as a “colossal loss-maker” that cost it $30 million a year.

The “one route, one airline” policy had been in place since 2009; altering it now is a response to the changing aviation market, China’s Civil Aviation Authority has said.

Two of the routes, Shanghai-Paris and Shanghai-Frankfurt, already have two Chinese airlines flying them but can add one more.

‘LITTLE INFLUENCE’

Variflight’s chief data analyst, Cong Wei, said Chinese airlines controlled about 50 percent of the seats on the 20 routes, which include Beijing-Los Angeles and Shanghai-London, and had the potential for a much higher share.

These routes are divided up between state-controlled carriers China Eastern Airlines Corp Ltd <600115.SS>, China Southern Airlines Co <600029.SS> and Air China Ltd <601111.SS>.

They compete against foreign airlines including Air France KLM, Lufthansa (LHAG.DE), Air Canada (AC.TO), British Airways (ICAG.L), Virgin Atlantic [VA.UL], Air New Zealand (AIR.NZ), United Airlines, Delta Air Lines (DAL.N) and American Airlines.

An Air France KLM spokeswoman said the company was monitoring the regulation change but had “very little influence on how this rule could evolve.”

“Competition between Europe and China is already present and increasing,” the spokeswoman said. “We continue to enhance our existing partnerships to offer the most attractive products and services at competitive fares to all our customers. This is undoubtedly the best response to this eventuality.”

Delta Air Lines said China continued to be an important market for its long-term network and that it was well positioned because of its partnership with China Eastern. Air New Zealand said it was aware of the change and was constantly assessing new route opportunities.

Lufthansa, Air Canada, British Airways, Virgin Atlantic, United Airlines and American Airlines did not respond to requests for comment.

TIE-UPS

The policy would also likely hurt incumbent Chinese airlines like Air China, which under the old rules had been able to dominate the Beijing-Los Angeles route. Many Chinese airlines are already facing falling returns on their international business.

Rivals like Hainan Airlines <600221.SS>, China’s fourth-largest carrier, have been expanding their international business in secondary routes and could take on new ones, analysts said. Out of the 20 routes opening for competition, Hainan only flies between Beijing and Toronto.

China Eastern and China Southern, headquartered respectively in Shanghai and Guangzhou, are also expected to launch new routes from Beijing once the Chinese capital’s new second airport opens in late 2019, giving the two state-owned airlines secondary bases.

The opening of Beijing Daxing International Airport was a catalyst for the government’s decision to change the route policy, the Chinese aviation regulator said in May.

China Southern said it supported the policy change, while China Eastern declined to comment. Air China and Hainan Airlines did not respond to requests for comment.

Li Xiaojin, a professor at the Civil Aviation University of China, said foreign carriers could focus on developing services for the luxury end of the Chinese market or deepen recently forged tie-ups with Chinese carriers to try to retain a competitive edge.

Delta Air Lines and American Airlines respectively have small equity stakes in China Eastern and China Southern, while China Eastern owns a 8.8 percent stake in Air France KLM.

But Li said the ultimate winner would be Chinese travellers.

“By liberalizing international air rights, airlines will put more capacity on popular routes, at hot timings … and provide passengers with safe, more convenient, more comfortable and economical services,” he said.

(Reporting by Brenda Goh; Additional reporting by SHANGHAI Newsroom; Editing by Gerry Doyle)

New airline routes announced in December, 2017

Aer Lingus will begin flying between Dublin (DUB) and Seattle (SEA) starting on May 18, 2018. The route will be served by an Airbus A330, with flights on Monday, Wednesday, Friday, and Sunday.

Air Canada announced several new nonstop international routes starting in May of 2018, including Toronto (YYZ) to Omaha (OMA) and Providence (PVD); Montreal (YUL) to Baltimore (BWI) and Pittsburgh (PIT); Vancouver (YVR) to Sacramento, Calif. (SMF); and Edmonton (YEG) to San Francisco (SFO). All flights will operate daily, year-round except for Toronto/Providence, which will be daily summer seasonal service.

Cathay Pacific will begin nonstop service between Washington, D.C. Dulles International Airport (IAD) and Hong Kong (HKG) on Sept. 16, 2018. Flights will operate four times a week with Cathay Pacific’s new Airbus A350-1000. Flights from Washington, D.C., to Hong Kong will operate Tuesday, Wednesday, Friday and Sunday and leave IAD at 1:15 p.m.; flights from Hong Kong to Dulles will operate Monday, Tuesday, Thursday and Sunday and leave Hong Kong at 6:35 p.m.

United Airlines is adding 10 new routes from five of its domestic hubs, beginning in April of 2018, including the addition of service to two new cities: Wilmington, N.C. (ILM) from Chicago (ORD) and Washington, D.C. Dulles (IAD), and Elmira, N.Y. (ELM) from Newark Liberty (EWR). Starting on April 9, United will offer twice daily flights between Chicago and both El Paso (ELP) and Wilmington, N.C.; between Los Angeles (LAX) and both Redmond (RDM) and Medford (MFR), Ore.; between Newark and Elmira; and between Washington Dulles and Wilmington. There will be one flight daily between Denver (DEN) and Jacksonville, Fla. (JAX). Daily seasonal service between Chicago and Fresno (FAT), and between LAX and both Kalispell (FCA) and Missoula (MSO), Montana beginning on June 7.

Norwegian Air is adding four new routes between the United States and Europe. Service from New York (JFK) to Madrid-Barajas Airport (MAD) will begin on July 18, 2018, and operate three times per week. Service from New York (JFK) to Amsterdam Schiphol Airport (AMS) will start on May 7, 2018, and operate four times per week. Norwegian will begin flying from LAX to Madrid four times a week, beginning July 16, 2018, and between LAX and Milan-Malpensa Airport (MXP) four times a week, starting on June 18, 2018.

Bombardier gets letter of intent from Air Canada for 45 jets

Bombardier has received a letter of intent from Air Canada for 45 new jets. Deliveries of the planes would begin in 2019, with an order value of $3.8 billion based on list price. The Air Canada order for 45 aircraft is for the larger CS300 version passenger jet. The order includes an option for an additional 30 CS300 jets, and order conversion rights for the smaller CS100 model.

bombardier-CS300