Kenya Airways pilots threatened to strike later this week to force CE Ngunze, who is implementing a reorganisation that will result in at least 600 job losses, to resign. The Kenya Airline Pilots Association wants Ngunze to resign after the company posted a record loss last year and because it thinks his turnaround plan will fail, it said Tuesday. The strike is set to begin Thursday, the association said. “It is Kalpa’s position that definitive action has to be taken, once and for all, to steer Kenya Airways in the right direction,” the association said. “We reaffirm the Kalpa membership vote of no confidence in the Kenya Airways CE, Mbuvi Ngunze, and call for his immediate resignation.” Kenya Airways is cutting jobs and shrinking its fleet size by almost a third to help reverse a US$253m annual loss it reported in July. <br/>
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Xiamen Airlines ordered 10 single-aisle jets worth about US$851m from Boeing as the carrier expands to meet demand. The company will buy 10 737-800 models valued at July 2014 prices. The aircraft will be delivered between 2017 and 2018. Boeing said separately that the order is worth $960m at current list prices. The latest order, which adds to Xiamen’s December announcement for 30 new generation 737Max planes, underscores the potential for growth in the world’s second-biggest economy as rising incomes make air travel more affordable. Asian leasing companies are also expanding fleets as the region is set to overtake the US as the world’s largest market for aircraft in 2 decades. President Xi Jinping signed an order for 300 jets worth $38b on a state visit to the US last year. <br/>
Grupo Aeromexico reported Q1 net income of MXP161m (US$9m), down 12.6% from a net profit of MXP185m in the year-ago period. The carrier cited the positive aspect of lower fuel costs and the negative impact of the Mexican peso depreciating against the US dollar for the results. During Q1, the peso depreciated 20.9% relative to the dollar. Q1 revenue increased 12.9% to MXP12.06b, while expenses rose 12.4% to MXP11.4b, producing an operating profit of MXP641m, up 24.4% from a MXP515m operating profit in the prior-year quarter. System traffic rose 7.8% to 7.9b RPKs on a 9.3% increase in capacity to 10.4b ASKs, producing a load factor of 76.2%, down 1 point. RASK rose 3.3% to 1.049 pesos and CASK increased 3.2% to 1.110 pesos. CASK ex-fuel was 0.907 pesos, up 11.6%. <br/>