In an unprecedented step, Europe's five largest airline groups including budget carriers EasyJet and Ryanair on Wednesday launched a new alliance to combat rising airport charges amid a fierce battle with Gulf rivals. The new association dubbed Airlines for Europe (A4E) brings together the budget airlines with giants Lufthansa, Air France-KLM and the International Airline Group, parent company of both British Airways and Iberia. The alliance will "represent the interests of its members when dealing with the EU institutions, international organisations and national governments on European aviation issues," it said. In their first act, the five managing directors of the member airlines called for swift steps to stop European travellers being "fleeced by excessive airport charges" and for the removal of "unreasonable taxes". "Six months ago we got together to agree that Europe needs a loud and unified and clear voice to represent the airline industry in order to bring changes to the EU aviation framework," said Willie Walsh, CE of IAG. The new association will "support and create jobs and support the interest of aviation in Europe," he said.<br/>
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Gol Linhas Aereas Inteligentes, Brazil’s second-biggest airline, climbed after Banco Bradesco SA said the stock could rally as much as 50% should the company become a takeover target for Delta or Azul. American depositary receipts surged as much as 12% to 30 US cents Wednesday, and closed at 28c in New York. The airline also outperformed the Ibovespa stock gauge, which joined a tumble in emerging markets. Burdened by a deep recession in Latin America’s largest economy and ballooning losses, Gol has plunged 95% in the past 12 months. Given the grim situation, Brazil may lift restrictions on foreign capital in the airline industry, which could accelerate a potential deal with Delta or Azul, according to Victor Mizusaki, an analyst at the investment banking unit of Bradesco. Delta currently has a 9.5% stake in Gol, below the 20% limit. “A potential M&A deal with Delta and Azul Airlines, combined with earnings recovery, could boost the share price performance,” Mizusaki, who rates the local shares a buy, said in a note to clients.<br/>
Over the coming year, Oman Air is looking to reduce losses as the Omani government cuts aid to the carrier by 40m riyals in 2016, said Abdul Rahman Al Busaidi, COO at Oman Air. Oman Air’s plans to increase its fleet to 45 aircraft as part of its network expansion programme, which was launched in the fourth quarter of 2014 and will continue into 2016. The airline will also increase flights in 2016, said Al Busaidi. Oman Air will increase its flight from Muscat to Guangzhou by four weekly flights starting from next July as well opening a new rout to Mashhad in Iran. A second flight will be added to the carrier’s current daily non-stop service between Muscat and London Heathrow. Oman Air’s Muscat to Paris service will also be increased to offer daily flights throughout the week.<br/>
Gulf Air will buy 40 Boeing and Airbus aircraft at the Bahrain International Air Show on Thursday, Acting CE Maher Salman Al Musallam said Wednesday. The order, a combination of new purchases and the restructuring of 2008 Boeing and Airbus orders, will fulfil the airlines requirements for the next twenty years, replacing ageing aircraft in the fleet, he said. Gulf Air will convert a 2008 order of Boeing 787-8 Dreamliners for the larger, longer range 787-9 variant, Al Musallam said, though declined to say whether all 24 aircraft ordered in 2008 will be converted. An individual with knowledge of the deal said the airline is converting all 24 787-8’s into 787-9’s, making the deal valued at $6.35b at list prices. <br/>