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Airbus Adds More Deliveries, Breaks 3 Month Order Drought

PARIS (Reuters) – Airbus delivered 49 aircraft in July, up from 36 in June as it continues to recover from a slump in deliveries during this year’s coronavirus lockdowns, the company said on Thursday.

The aircraft were all narrow-body jets, highlighting a dearth of demand for the industry’s biggest models, which last month prompted Airbus to trim A350 production for a second time.

The month’s deliveries included 47 A320neo-family jets.

Airbus also scored its first orders in three months as it sold two A320neos to an undisclosed customer and two A321neos to Lufthansa Technik, the modification and repairs business of German carrier Lufthansa <LHA.DE>.

So far in 2020, Airbus has delivered 245 jets and sold 369, or 302 after cancellations.

Demand for aircraft has been crippled by the coronavirus crisis and its heavy impact on air travel.

Airbus is boosting deliveries on a monthly basis despite the industry’s worst crisis as it negotiates deals with airlines.

But although deliveries are rising compared to the trough seen in April, several bankers and analysts have questioned how many of the aircraft are being placed into service as airlines struggle to save cash. Some are said to go straight to storage.

Airbus has issued default notices and threatened to sue airlines that refuse to collect planes already built while showing flexibility in deferring jets not yet in the factory.

(Reporting by Tim Hepher; Editing by Keith Weir)

An Airbus A320neo aircraft is pictured during a news conference to announce a partnership between Airbus and Bombardier on the C Series aircraft programme, in Colomiers near Toulouse, France

Southwest Airlines pilots suing Chicago

Southwest Airlines pilots are suing Chicago over a billboard they claim was banned by the city at Midway Airport. City Hall decided to bar the advertising that the Southwest Airlines Pilots Association wanted to post at the airport complaining about their lack of pay increases. In the suit, the pilots union is claiming that the City of Chicago’s refusal to allow the billboard at Midway Airport is a violation of their First Amendment rights of free speech under the constitution. The union wanted to get the billboard up prior to the Southwest Airlines shareholders meeting to be held in Chicago on May 18. The City has stated that it decided to ban the billboard due to new guidelines that were issued during the previous summer that disallow any and all political or public issue advertising at Chicago’s Midway and O’Hare airports.

Southwest Airlines pilots argue for wage increases

The advertisement that was denied showed Southwest Airlines pilots holding a sign stating “Shareholder returns: $3.1 billion; Pilot raises: $0” along side the phrase “The Pilots of SWAPA welcome Southwest shareholders to Chicago”. The city rejected the advertisement twice, including a “slightly” modified version of the phrase, according to the lawsuit. The pilots union is seeking a temporary restraining order that would allow the billboard to be posted prior to the shareholder meeting. The pilots are angry, claiming that they have not had a raise since 2011. The last contract that the pilots union had expired in 2012. The pilots union had negotiated a tentative agreement on a new contract last year. That contract collapsed when it was overwhelmingly rejected by the 8,300 members of the Southwest Airlines Pilots Association last November. The union elected a new president and selected a new negotiating committee following the rejection of the tentative deal last year.

Southwest Airlines pilots