Hospitality Ireland provides a summary of the latest global airline and aviation news
Hospitality Ireland presents a roundup of the latest airline and aviation news from around the world.
British Airways in advanced talks on low-cost Gatwick business, says CEO
The CEO of British Airways (BA) said on Tuesday (September 8th) that negotiations for the creation of a new low-cost subsidiary at London’s second largest airport, Gatwick, were “advanced”.
“We want to create a subsidiary with a competitive cost platform,” BA CEO Sean Doyle told reporters at an event at Heathrow airport.
“We are, you know, in advanced negotiations to try to allow this.”
The airline, owned by Anglo-Spanish International Airlines Group (IAG), first announced plans for the new business focused on short-haul flights on Friday, September 3, saying it would wear the British brand. Airways and would offer the same level of service. .
BA assessed its position at Gatwick after stopping flights there during the pandemic and focused on operations at its main hub, Heathrow, Britain and London’s busiest airport.
If negotiations with the unions to set up the new unit fail, then Doyle said BA would not be able to compete at Gatwick and may seek to sell its slots there.
“We would consider alternatives for the slot machine portfolio,” Doyle said.
When asked if there would be further job losses at BA if the new unit did not move forward, Doyle said the move was about opportunities. BA cut more than 10,000 employees at the height of the COVID-19 crisis.
Doyle was at Heathrow to launch the airline’s BA Better World sustainability program, providing more details on how the airline plans to move towards its parent company’s longer-term goal of achieving net zero emissions of carbon by 2050.
At the global climate summit to be held in Glasgow later this year, BA said it would purchase the equivalent amount of low-emission, sustainable aviation fuel for its London-Scotland flights.
BA passengers will also have a greater opportunity to offset their carbon footprint by paying directly for sustainable aviation fuel if they so choose.
Airbus maintains its lead over Boeing in terms of deliveries; Lags on orders
Airbus delivered 40 jets in August to bring supplies for its new jets to 384 since the start of the year, remaining on track overall to meet an annual target of 600 deliveries that would preserve its crown as number one aircraft manufacturer.
The European aircraft maker also sold 269 planes in the first eight months of the year, or 132 after cancellations, company data showed on Tuesday.
New sales included 28 narrow-body jets to Latam Airlines, although South America’s largest carrier simultaneously canceled an order for two A350-1000 wide-body jets.
When it comes to deliveries, which are the source of most aerospace revenue, Airbus remains well ahead of its American rival Boeing Co, which is gradually clearing a backlog of undelivered aircraft after the immobilization of safety of its 737 MAX for almost two years.
However, after a lull caused by the MAX crisis and then the impact of COVID-19 on the entire sector, Boeing remains in the lead in the number of new orders as US carriers renew their fleets.
By the end of July, Boeing had sold 630 planes or 270 after adjusting for actual and potential cancellations. Orders included more than 524 Boeing 737 MAX aircraft at the end of July, compared to 234 Airbus A320 family aircraft from January to August.
Boeing nevertheless took a hit from one of its biggest customers on Monday, September 6 when Ryanair said it halted talks to purchase up to 250 of the larger variant, the 737 MAX 10, due to ‘a difference with Boeing on prices.
On Tuesday, September 7, Boeing stock fell more than 2%.
As the COVID-19 pandemic has upended many assumptions about the travel industry, analysts have warned that a shock defection from Ryanair to Airbus faces many hurdles.
The European company already has a long waiting list for its competitor A321neo and it claims to demand higher prices, which means that a price war against Ryanair could disrupt existing customers.
Airbus dominates the large single-aisle segment at the center of the Ryanair-Boeing standoff, while the US aircraft manufacturer has held contests against the smaller A320.
After the unusual public row, Ryanair and Boeing should largely wait before seeing which direction COVID is pushing the struggling aviation market this winter, with most market sources predicting a compromise deal next year.
But as a reminder of the unusual row involving its rival, Airbus data released on Tuesday, September 7 confirmed the sale of 36 A321neo jets to Boeing customer Jet2 – a move Ryanair has presented as proof that Boeing has yet to cut prices. .
Boeing responded on Monday, September 6, that it would maintain a disciplined approach to the aircraft negotiations.
American Airlines pilots union to strike over fatigue and overtime
The union representing American Airlines pilots said it would begin an information picket in the coming weeks at the carrier’s main hubs to protest their work schedules, fatigue and lack of adequate housing during summer.
The Allied Pilots Association will be picketing at Miami International Airport, Dallas / Fort Worth International Airport and other locations, it said in an emailed statement to Reuters.
“Our airline needs planning practices that support the safety margin, respect the needs of pilots and passengers, and reduce the risks of American Airlines to protect and improve revenues,” the union said.
American did not immediately respond to an after-hours request for comment.
In August, a union representing Southwest Airlines pilots filed a complaint against forced holidays and other changes to working conditions imposed by the airline during the COVID-19 pandemic.
News by Reuters, edited by Hospitality Ireland. Click on subscribe to register for Hospitality Ireland printed edition.