FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham
(Reuters) – The United States and China will each allow four weekly flights between the two countries, the U.S. Transportation Department said on Monday, easing a standoff on travel restrictions in the midst of the novel coronavirus pandemic.
The U.S. government still hopes China will agree to restore full U.S. flight rights under their bilateral aviation agreement, the Transportation Department said Monday in its revised order on China flights.
“As the Chinese government allows more flights by U.S. carriers, we will reciprocate,” it said.
The United States had threatened to bar Chinese passenger flights on June 16 due to Beijing’s curbs on U.S. airlines amid simmering tensions between the world’s two largest economies, and has raised concerns about the number of charter flights Chinese carriers want to fly.
Among U.S. airlines, Delta Air Lines and United Airlines had each sought to restart daily passenger flights to China in June but changed their plans in the absence of government approval.
Following China’s agreement to allow four U.S. flights total, Delta said it would operate two flights to Shanghai from Seattle next week and once weekly flights from Seattle and Detroit beginning in July, all via Seoul.
United said it was aiming to re-launch service to China in the weeks ahead.
Chinese authorities have already agreed to some changes on requirements for U.S. carriers, including allowing temperature checks to be done before flights take off for China, rather than mid-flight as previously discussed, a person briefed on the matter said.
(Reporting by David Shepardson and Tracy Rucinski; Editing by Grant McCool and Stephen Coates)
A China Eastern Airlines aircraft is seen at Hongqiao International Airport in Shanghai
WASHINGTON (Reuters) – The U.S. Transportation Department plans to issue a revised order in the coming days that is likely to allow some Chinese passenger airline flights to continue, government and airline officials said.
On Thursday, China said it would ease coronavirus restrictions to allow in more foreign carriers, shortly after Washington said it planned to bar Chinese passenger airlines from flying to the United States by June 16 due to Beijing’s curbs on U.S. carriers.
The change should allow U.S. carriers to resume once-a-week flights into a city of their choice starting on June 8, but that would be still significantly fewer than what the U.S. government says its aviation agreement with China allows.
The Transportation Department did not immediately comment.
The department said on Wednesday Chinese carriers could operate “the same number of scheduled passenger flights as the Chinese government allows ours.” It added the order was to “restore a competitive balance and fair and equal opportunity among U.S. and Chinese air carriers.”
The U.S. order would halt the four weekly U.S. roundtrip flights by Air China <0753.HK>, China Eastern Airlines Corp, China Southern Airlines Co <1055.HK> and Xiamen Airlines Co.
U.S. and airline officials have privately raised concerns about the revised Chinese rules and it is unclear if carriers would agree to fly just once a week to China when they have sought approval for two or three daily flights.
Delta Air Lines <DAL.N> and United Airlines <UAL> asked to resume flights to China this month. Both said they were reviewing the order from the Civil Aviation Administration of China.
American Airlines <AAL> is sticking with its previous plan to resume service to China at the end of October, spokesman Ross Feinstein said.
The CAAC said all airlines can increase the number of international flights involving China to two per week if none of their passengers test positive for COVID-19, the disease caused by the novel coronavirus, for three consecutive weeks.
If five or more passengers on one flight test positive upon arrival, the CAAC will bar the airline for a week. Airlines would be suspended for four weeks if 10 passengers or more test positive.
(Reporting by David Shepardson in Washington; additional reporting by Tracy Rucinski in Chicago; Editing by Chris Reese, Richard Chang and Bernadette Baum)
JetBlue Founder David Neeleman Selects Salt Lake City as Headquarters for New Airline
America’s newest and perhaps most innovative airline does not yet have a name, or any airplanes. But it now has a headquarters.
David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of $3.2 million and create nearly 400 jobs over the next five years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1 million over five years.
“There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s chief commericial said in an interview. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.”
MILAN, Nov 19 (Reuters) – Italian infrastructure group Atlantia said on Tuesday it was not ready to join a consortium led by Italian railway group Ferrovie dello Stato to rescue loss-making carrier Alitalia, casting a shadow on the entire project.
After months of negotiations and with just one day left before a deadline expires, the group controlled by the Benetton family said that the conditions did not exist yet for it to join a consortium working on Alitalia.
Atlantia added, however, it remained available to engage in negotiations to seek for an industrial partner for the carrier.
A deadline to present a binding offer for Alitalia expires on Thursday, after being postponed several times.
Loss-making Alitalia has been run by special administrators since May 2017 and talks led by Ferrovie have been going on for a year without a deal.
The carrier, which is burning through its cash reserves, is expected to finish its money at the end of this year.
Ferrovie and Atlantia have been in talks with both U.S. carrier Delta Air Lines Inc and, recently, with German airline Lufthansa.
Delta said it was ready to invest 100 million euros ($111 million) in the Italian carrier but sources had said it did not agree with Ferrovie and Atlantia over the development of the Italian carrier’s long-haul business.
On the other hand, Lufthansa said it was prepared to set up a commercial partnership with the Italian carrier but did not want to take a stake in the group before it has gone through a complete restructuring.
“We will not invest in current Alitalia, but we are interested being a commercial partner,” said Lufthansa CEO Carsten Spohr at an event in Berlin on Tuesday.
Italian daily La Repubblica on Tuesday said the airline could be nationalized for some years before being sold.
Analysts calculate that Italian taxpayers have spent more than 9 billion euros to support Alitalia, which has undergone two previous failed rescue attempts.
($1 = 0.9028 euros)
(Reporting by Francesca Landini; Additional reporting by Ilona Wissenbach in Berlin; Editing by Lisa Shumaker)
SWISS opened a new-style lounge with alpine flair and a modern food and beverage concept in Zurich Airport’s Terminal A today. The new SWISS Alpine Lounge is available to Miles & More Senators and Star Alliance Gold Members, along with Business Class travelers on SWISS and other Lufthansa Group airlines.
Swiss International Air Lines (SWISS) opened a new lounge at its Zurich hub today that offers its visitors a multi-sensual airport lounge experience. The 500-square-metre SWISS Alpine Lounge occupies the former location of the First Class Lounge in the airport’s Terminal A, and can accommodate up to 100 travelers.
A mountain hut with quality Swiss materials Zurich’s new SWISS Alpine Lounge blends all the charm of a rustic yet contemporary mountain hut with the comforts and the style features of the familiar SWISS lounges. Of particular note are the light-wood elements and the bespoke furniture, much of it hand-made by Swiss craftsfolk. The quality alpine-style carpets and cushion covers are also hand-crafted and sourced from small Swiss manufacturers. Large communal wooden tables underscore the hut-like ambience, while the high windows offer fabulous views of the apron area and its flight activities.
A modern food and beverage concept around a rustic oven SWISS has taken a new direction with the lounge’s food concept, too. The centrepiece of the new SWISS Alpine Lounge is a rustic oven in which seasonal dishes are prepared. Guests are additionally offered a range of further ingredients to tailor their food to their particular taste. These individualization options also help to reduce food waste. The beverages on offer include a selection of local Swiss wines and spirits. And the wines are served using a new and more ecofriendly dispensing system that enhances both the quality of the wine and the lounge’s recycling credentials.The new SWISS Alpine Lounge is open Mondays to Fridays from 05:30 to 18:30. The lounge is available to Miles & More Senators, Star Alliance Gold Members and Business Class travellers on SWISS and other Lufthansa Group airlines.
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
PARIS/ZURICH (Reuters) – U.S. engine maker Pratt & Whitney faces new checks on engines for small jetliners after an engine failure forced a Geneva-bound Swiss jet to divert to Paris and prompted a brief grounding of the rest of the airline’s Airbus A220 fleet.
French air crash investigators classified the problem that disrupted the Swiss flight shortly after departure from London Heathrow on Tuesday as a “serious incident” and said it would be investigated by the U.S. National Transportation Safety Board.
It was the third engine incident involving the same airline and model of jet in as many months and resulted in a small amount of debris being scattered as the aircraft landed at Paris Charles de Gaulle, an airport source told Reuters.
It came just hours after France’s BEA agency launched an unusual appeal for 150 volunteers to scour an uninhabited wood in eastern France for a titanium engine part dating from the first blowout in July, which affected a Geneva-London flight.
A second incident in September caused a Swiss A220 to divert to Geneva, but on that occasion the engine’s housing contained fragments torn loose from the engine, the BEA said.
Swiss, owned by Germany’s Lufthansa <DLAKY>, said after Tuesday’s incident it had initially grounded its fleet of Airbus <EADSY> A220 jets for a “comprehensive inspection” of their engines.
Late on Tuesday, it said the first aircraft had already returned to service but that the inspections had forced it to cancel 100 flights, affecting 10,000 passengers.
Operations are expected to return to normal from Thursday.
ADDITIONAL CHECKS
Tuesday’s incident highlighted scrutiny of the performance of new-generation Geared Turbofan engines developed by Pratt & Whitney, a unit of United Technologies Corp <UTX>.
A spokesman for the engine maker said it was recommending additional checks for versions of the engine that power the Airbus A220 – an engine known as the PW1500G – and a rival Brazilian jet, the Embraer 190/195-E2.
A similar engine for the larger A320neo family, Airbus’ most-sold aircraft, was not affected.
“Pratt & Whitney and our airframe OEMs (manufacturers), working in coordination with the regulatory authorities, have recommended additional inspections of the low-pressure compressor for PW1500G and PW1900G engines to keep the fleet operational,” a spokesman said.
“The engines continue to meet all criteria for continued airworthiness. We are working closely with our customers to minimise disruption to their operations.”
Prompted by the earlier incidents in July and September, the U.S. Federal Aviation Administration ordered inspections on the same engine part in A220s and some Embraer jets in September.
On Tuesday, Delta Air Lines <DAL> said its A220 jets were flying as normal.
Air Baltic, which also flies the A220, said it was closely following Pratt’s latest recommendations but that it used a different version of the PW1500G engine from Swiss.
A total of 90 of the 110-130-seat A220 aircraft have been delivered, initially by Canada’s Bombardier <BDRBF> which designed the carbon-fibre jet, and later by Airbus, which bought the loss-making programme last year.
Airbus said it was working with Pratt & Whitneyand would co-operate with any investigation.
In Brazil, Embraer <ERJ> had no immediate comment.
The company uses Pratt’s PW1900G engine in larger versions of its upgraded 80-120-seat E2 jets.
It has delivered six E190-E2 planes split between Norwegian carrier Wideroe and lessor Aercap <AER>, and one E195-E2, which is not yet in commercial service but has been delivered to Brazilian airline Azul SA <AZUL>.
Azul said its operations were not affected.
(Reporting by Tim Hepher in Paris, Tracy Rucinski in Chicago, John Revill in Zurich, Michael Shields in Vienna, Marcelo Rochabrun in Sao Paulo, Allison Lampert in Montreal, Laurence Frost in Paris; Editing by Jane Merriman and Matthew Lewis)
MILAN, Oct 14 (Reuters) – Alitalia is set to win a temporary lifeline on Tuesday, when its latest rescue deadline expires, with toll road operator Atlantia expected to give a conditional green light to hundreds of millions of euros of investment, according to two people close to the situation.
The future of the troubled Italian carrier remains in doubt with no binding offer and no clear business plan in sight but it should avoid an immediate liquidation after the expiry of the Oct. 15 deadline set by the industry ministry.
Atlantia, which is controlled by Benetton family, has been in talks since July over taking part in a government-orchestrated rescue of the airline, together with railway group Ferrovie dello Stato, the treasury and Delta Air Lines.
“Atlantia is expected to give its commitment to invest in Alitalia subject to several conditions,” one of the sources said. But issues that still cause concern range from potential antitrust problems, treatment of state aid under European Union rules, the cost of possible redundancies and the future of the carrier’s long-haul routes, the source said.
Oct. 15 is the latest in a series of deadlines set for Ferrovie and potential partners in a rescue for Alitalia, which has been under special administrators since May 2017 and needs new funds to continue flying.
The board of Atlantia, which runs Rome’s airports through its Aeroporti di Roma unit, is expected to approve a preliminary commitment to the Alitalia rescue on Tuesday, the sources said.
The rescue plans include potential investment of a total of around 1 billion euros in the carrier, which has cut costs under the special administrators but still burns cash and had only 310 million euros left at the end of September.
Atlantia is expected to invest some 300 million euros, depending on commitments from other partners.
A second source said more time was needed to iron out a complete business plan for Alitalia. Possible involvement by Delta Air Lines or Germany’s Lufthansa AG is still under discussion.
A third source said Atlantia, Ferrovie and other potential partners were under pressure from Italy’s Industry Ministry to present a binding bid and take control of the carrier which in the past two years has already received 900 million euros from the state to stay afloat.
Atlantia’s participation in the rescue was put in doubt this month when it wrote to the Industry ministry, urging a radical overhaul of the Alitalia plan if talks were to go ahead.
(Reporting by Francesca Landini, Stefano Bernabei, Giuseppe Fonte. Editing by Jane Merriman)
An Alitalia Airbus A320 takes off on September 26, 2017 from Toulouse-Blagnac airport in southwestern France. / AFP PHOTO / PASCAL PAVANI
FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse
(Reuters) – Spirit Airlines <SAVE> on Friday cut its third-quarter outlook for a key revenue measure as it estimates an about $25 million hit on its sales, hurt by hundreds of flights cancellations due to Hurricane Dorian.
The company now expects third quarter unit revenue to fall between 2.5% and 3.5% compared to its prior estimate of a decline of 1% to 2%.
The hurricane has led airline operators including American Airlines <AAL.O> and Delta Air Lines <DAL.N> to cancel thousands of flights across the United States this week.
Dorian, which briefly made a landfall on the Outer Banks of North Carolina on Friday, is expected to bring tropical storm winds to Nantucket Island and Martha’s Vineyard, Massachusetts early on Saturday
Delta to become largest U.S. carrier serving Haneda in 2020, with full transfer of U.S.-Tokyo services from Narita airport to Haneda
Airline will offer industry leading product, with unparalleled operational reliability and service on seven daily flights to Haneda from cities throughout the U.S.
Additional changes to intra-Asia flying include new Delta-operated Seoul-Manila service
Under a final decision announced by the U.S. Department of Transporation today, Delta will become the largest U.S. carrier serving Haneda, with seven daily flights between Haneda and Seattle, Detroit, Atlanta, Honolulu, Minneapolis, Los Angeles and Portland, Ore. With this change, Delta will transfer its full operation of U.S.-Tokyo services from Narita to Haneda, the city’s closest and most convenient airport, beginning in March 2020.
“We have proudly served Japan for more than 70 years and our commitment to our Tokyo legacy remains strong,” said Steve Sear, President – International and Executive Vice President – Global Sales. “This new service is a game-changer for Delta’s ability to offer competitive and comprehensive access to the city, which is one of the world’s most important business markets. It’s a win for our customers, giving them much quicker access to the city center, and it complements our overall strategy of growth across the Pacific.”
As part of its long-term Asia-Pacific network strategy, Delta will also adjust its network of flights beyond Narita. Effective March 2020, the carrier will suspend its NRT-MNL service and launch new daily ICN-MNL service operated by Delta. Serving Manila through Seoul will offer our customers superior connectivity via our industry-leading trans-Pacific hub in Seoul with our JV partner Korean Air.
While Delta will suspend Narita-Singapore service beginning Sept. 22, 2019, Delta customers can continue to reach Singapore – and more than 80 other destinations throughout Asia – through Seoul-Incheon via the airline’s partnership with Korean Air.
These moves are contingent upon securing viable operational slots.
Featuring state-of-the-art widebody aircraft and award-winning reliability, product and service, delivered by Delta people
All Delta aircraft between the U.S. and Tokyo feature the carrier’s premium Delta One experience, which includes a dedicated in-cabin flight attendant; a 180-degree flat-bed seat with direct-aisle access; extra-wide inflight entertainment screens; and seasonally rotating, chef-designed Delta One menus with the option to pre-select first choice of entrée, paired with wines hand-selected by Master Sommelier Andrea Robinson.
Aircraft on flights between Haneda and Seattle, Detroit, Minneapolis/St. Paul, Los Angeles and Atlanta also feature Delta Premium Select, Delta’s newest cabin experience that brings the “premium” back to premium economy with more space including a wider seat with additional recline and leg rest; elevated service including pre-departure beverage service; and distinguished amenities including a wider in-flight entertainment screen.
In addition to Delta’s award-winning operational reliability and service, all cabins of service on flights between the Haneda and the U.S. will include complimentary meals, snacks and beverages, including meals for all customers created in partnership with Michelin consulting chef Norio Ueno. This November, Delta is launching a first-of-its-kind bistro-style international Main Cabin experience featuring welcome cocktails, hot-towel service and mix-and-match options for premium appetizers and larger entrees.
All seats on all flights from the U.S. to Tokyo-Haneda will offer personal entertainment systems with free entertainment, free mobile messaging, high-capacity overhead bins, Wi-Fi, upgraded amenity kits and more. More international onboard enhancements are coming soon, like refreshed ear buds and headsets, to further demonstrate the airline’s commitment to creating a best-in-class experience all customers can look forward to.
