EasyJet said weaknesses at network rivals Air France-KLM Group and Lufthansa will allow it to carry on grabbing customers in key countries after suffering a series of setbacks while seeking to attack new markets. CE Carolyn McCall says she’s unperturbed at having to rein in operations to Moscow as a result of the weakening Russian economy and stricter visa rules, North Africa as a result of the deteriorating security situation and in Italy after encountering heightened competition. “When you look at short-haul Europe, we’re winning, and we will continue to take share from legacy carriers who are flailing, restructuring, trying to find the right model for themselves,” McCall said. “They can never have the low-cost culture, the low-cost mentality, and they can never have the same kind of cost efficiency.” <br/>
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The CE of EasyJet dismissed speculation that she was set to quit, saying Monday she was committed to the battle with Ryanair which has started encroaching on its turf. EasyJet and Ryanair have been locked in a battle for supremacy in the low-cost market for years, with Ryanair recently upping the stakes by moving to more primary airports and improving its customer service. That has prompted fears that Ryanair could become a more direct competitor for EasyJet and Carolyn McCall, a threat she dismisses by saying Europe is big enough for the two of them. "I’m staying at EasyJet," she said. " I really like what I am doing and I am here to stay. No intention to leave." Some media reports had suggested last year that she had been in the running to take the top job at M&S, a vacancy now filled by M&S veteran Steve Rowe. <br/>
Ryanair plans to return E800m to investors through its largest ever share buyback, highlighting how the airline has made significant progress to overhaul its aggressive image and poor customer service. The carrier reported Monday Q3 net profit of E102.7m, up 110% compared to the same period in 2014. The E800m buyback is the strongest evidence yet of Ryanair’s recovery after 2 profit warnings in the autumn of 2013, when Michael O’Leary, its outspoken CE, admitted the company annoyed too many passengers and promised a strategy overhaul. The company credits this new approach for the improvement in its fortunes, which saw it become the first airline to carry 100m international passengers during a single year in 2015. <br/>
Ryanair is set to fly more passengers than Lufthansa for the first time this year, heaping pressure on the Lufthansa to make a success of Eurowings. Lufthansa has already tried its hand at budget flying with the short-haul Germanwings service, which is now being merged into the new Eurowings business. While Germanwings, whose brand was set to be phased out even before the crash of one of its jets last year, is set to turn a profit for the first time, its costs are still seen as too high to compete with EasyJet or Ryanair. The stakes are high. Budget air travel in Germany, which has long lagged other markets, looks set to take off. And a successful Eurowings could help Lufthansa push through the cost cutting and labour reforms that have been crucial in helping other traditional carriers to thrive in a highly competitive market. <br/>
ATR said Monday it had signed a E1b deal with Iran Air for up to 40 planes after the dropping of US sanctions against Iran. Under the accord, ATR is to provide the carrier with 20 ATR 72-600 planes, with options on another 20 planes. It follows talks in Rome and Paris last week during a visit by Iranian president Hassan Rouhani. "The deal marks the arrival of the newest generation ATRs in Iran, where the first aircraft have been operating since 1992. This freshly open market provides a strong potential for the development and expansion of domestic traffic and routes," ATR said. Before a nuclear deal with world powers took effect last month, Iran's aviation industry was subject to a US embargo preventing Western manufacturers since 1995 selling equipment and spare parts to the Islamic republic. <br/>
Russian investigators suspect an extreme Turkish nationalist group may have been involved in the bombing of a Russian Metrojet airliner in Sinai in October, it has been claimed. Russia’s Federal Security Service (FSB) suspects a radical Turkish group called the Grey Wolves had a hand in the attack that killed 224 people, according to a Russian newspaper. Kommersant, one of Russia’s leading broadsheets, quoted an unnamed source saying the FSB had grounds to suspect the Grey Wolves were the “organised group” behind the bombing referred to by Alexander Bortnikov, the agency’s director, in December. The source told the paper that the group had links with ISIS, the terror group that claimed responsibility for blowing up the airliner. The source provided no evidence to back up the claims. <br/>
Jiangxi Airlines, the Xiamen Airlines and Jiangxi provincial govt joint venture, launched its inaugural flight on the Nanchang-Xi’an-Urumqi route Jan 29. Jiangxi Airlines has a registered capital of CNY2b (US$325m). Xiamen holds a 60% stake and Jiangxi Aviation Investment Co., holds a 40% stake with a CNY800m investment. The carrier operates 2 aircraft and will take delivery of a third at the end of March. It plans to expand its fleet to 5 aircraft at the end of 2016, and by 2020 plans to increase its fleet to 20 aircraft and transport 5.5m passengers. Jiangxi is expected to open more routes from Nanchang to Beijing, Shanghai, Guangzhou Shenzhen, Xi’an, Urumqi, Haikou, Chongqing, Guiyang, Xiamen, Chengdu and Kunming. It also plans to add more international routes to Singapore, Malaysia, Thailand, Japan and Korea. <br/>
Flight attendants at Porter Airlines could soon be unionised if a majority votes for certification. “I’m very hopeful,” said Daniela Scarpelli, a national representative with the Canadian Union of Public Employees, which represents flight attendants at Air Canada and Transat. “This is a long time coming.” In all, 171 people are eligible to cast a secret ballot in the electronic vote, which began last Friday and wraps up Tuesday. Results are expected soon after the vote closes. Under federal rules—and airlines are governed by federal law—at least 35% of the affected group must participate in the vote for it to count, but Scarpelli said Monday that the minimum number had already been reached. Many Canadian airlines are unionised including Air Canada, Transat and Sunwing Airlines. <br/>