unaligned

El Al Q1 losses widen

El Al Israel Airlines posted a Q1 2016 net loss of $21.4m, widened from the company’s $16mi net loss in Q1 2015. Operating revenues were $396.5m, down 5.6% compared to the year-ago revenues of $419.8m. The airline said that the latest quarter’s figures were affected by the timing of Passover, which this year fell in Q2, whereas in 2015 it fell at the start of April, which meant that holiday departures had already started by the end of March 2015. Apart from this factor, however, El Al said the figures had been affected by a continuing decline in ticket prices due to increased competition. Deteriorating currency exchange rates were also a factor. CEO David Maimon also made reference to an increase in costs “due to disruptions in flights’ staffing,” apparently a reference to a dispute earlier this year with the airline’s pilots over salaries and terms of employment. Maimon said negotiations with pilots’ representatives were continuing “in order to enable the company to direct its efforts to cope with the increasing competition in the aviation industry.” <br/>

CityJet in talks to lease out superjets

CityJet, the first western European airline to take delivery of Russia's Superjet, expects to lease the plane to major European carriers from next summer in a move that could boost the aircraft's credibility and help it win more orders. The Superjet, Russia's first new civilian airliner since the fall of the Soviet Union, has been championed by President Vladimir Putin as leading the renaissance of civil aviation in the country. But the project suffered a blow in 2012 when a Superjet crashed in Indonesia during a promotional flight, though investigators said this was due to pilot error rather than a fault on the plane. Irish regional airline CityJet took delivery of the plane this month and executive chairman Pat Byrne said it planned to use most of its fleet of up to 31 of the jets for wet leases - providing aircraft, crew and maintenance to other airlines. "We are in dialogue with two other airlines… and I would be optimistic we would have our first other contract for summer 2017," Byrne said. The use by major airlines "is going to establish the credibility of the aircraft in Europe," he added, while declining to name the airlines involved. The Superjet project is led by Sukhoi - part of Russia's state-owned United Aircraft Corporation, which Putin created in 2006 to revive the country's aircraft industry - in partnership with Italy's Finmeccanica. CityJet will start flying the first of the 15 Superjets it has on firm order for charter services next week. It has options for another 16 of the planes.<br/>

Hawaiian Airlines wants more balanced playing field against Qantas

Hawaiian Airlines, whose objections to regulators have helped to delay a revenue-sharing agreement between Qantas Airways and American Airlines for the past year, is continuing to push for a better balanced playing field for smaller airlines. Qantas and American agreed on a trans-Pacific joint venture last June but have yet to receive approvals from the United States Department of Transportation following opposition from Hawaiian and JetBlue. There is industry speculation the inability to share revenue on the route could be among the factors contributing to declining fares on Qantas' international routes, because Qantas switched flights from the proven Sydney-Los Angeles route to reopen the Sydney-San Francisco route as part of the proposed deeper alliance agreement. Hawaiian CE Mark Dunkerley said his airline objected to such joint ventures because they represented "virtual mergers" between dominant airlines on both ends of the route. "That can have a very decisive impact in limiting the amount of competition from independent carriers," he said. "It is not so much that we have an issue with that alliance per se. I think the broader issue we have is essentially the direction of competition policy as it affects the airline industry." Dunkerley has argued that joint ventures between US and European carriers have significantly raised prices for consumers on trans-Atlantic routes and the same could occur in the trans-Pacific market. In a presentation last year, he cited statistics showing since 2000, the percentage of trans-Atlantic traffic on alliances had risen to 87% from 41%. In the same period the average fare price, adjusted for inflation, rose by 22%. However, trans-Pacific fares have been falling in recent times as a result of stiff competition between carriers. <br/>

Ryanair is slashing checked bag fees

European airline Ryanair is reducing its checked baggage fees -- just in time for the busy summer travel season. The low-cost carrier, which calculates its checked baggage fees on luggage weight and flight duration, announced Thursday it's cutting some fees by as much as 50%. Checking a bag that weighs less than 34 pounds for a domestic flight shorter than two hours will now cost €15 ($17), down from E30. A heavier bag on the same flight length will cost 38% less at E25. Travellers checking a lighter bag on flights under three hours will pay E25, a 17% price reduction. The costs of checking a bag for Ryanair flights of three or more hours remain the same. The low-cost airline said the move will bring savings for 92% of its travelers. Thursday's announcement also cuts the number of bag fee options to six from 108.<br/>

Southwest unveils shark-themed Boeing 737 for Shark Week

Shark Week has become a mainstay on TV since it debuted in the late 1980s. Now, it’s set to take to the sky. That will come courtesy of Southwest Airlines, which is joining the fray with a shark-themed livery on one of its Boeing 737-700 aircraft. The jet features Southwest’s usual paint scheme, but has several sharks circling near the tail of the aircraft along with a Shark Week logo. The shark-themed livery will fly on the 737-700 through Aug. 31. Southwest says the partnership with Discovery Channel allows the airline to draw attention to its aircraft and in-flight entertainment, which will feature Shark Week content during the promotion. Customers will even get a sneak-peek of some Shark Week content ahead of its June 26-through-July 3 airing on the Discovery Channel. Southwest also will use the promotion to highlight its new and growing list of international destinations. A portion of the Shark Week TV content comes from Costa Rica, where Southwest notes it serves both the capital of San Jose and the Pacific Coast destination of Liberia from several US cities.<br/>

Indonesia AirAsia X cancels flights from Sydney and Melbourne to Bali

Indonesia AirAsia X will end its flights from Sydney and Melbourne to Bali on September 1, in a move that will frustrate travellers but could benefit rival carriers Jetstar, Virgin Australia, Tigerair Australia and Garuda Indonesia. "The suspension of these services is part of a network restructuring aimed at improving operational efficiencies at Indonesia AirAsia X," the airline said. The AirAsia affiliate began non-stop flights from Melbourne to Bali in March 2015, four months later than it had expected, after delays in receiving Australian regulatory approvals that led many upset customers to seek refunds. It launched Sydney-Bali flights in October 2015, meaning it will have lasted less than a year on the route. Customers who have already booked the low cost carrier's flights to Bali for dates after the flight cancellations are being offered the opportunity to reroute by Kuala Lumpur, move their flights to an earlier date or receive airline credit or a full refund. Indonesia AirAsia X had operated A330 aircraft with 377 seats on its five weekly flights from both Sydney and Melbourne to Bali, meaning its exit will result in a significant decline in non-stop capacity to and from the popular holiday destination.<br/>