general

The EU pushes back against Gulf carrier subsidies

EU governments gave EU transport chief Violeta Bulc the go-ahead to negotiate aviation agreements with the United Arab Emirates and Qatar, setting up a potential clash over alleged unfair subsidies to airlines based in the two Persian Gulf nations. European transport ministers meeting on Tuesday in Luxembourg included a provision on financial transparency in the negotiating mandates for Bulc, targeting any market-distorting aid to Emirates, Etihad and Qatar Airways. The ministers also approved similar mandates for accords with Turkey and the Association of Southeast Asian Nations. “These agreements will offer new business opportunities to the whole aviation sector, new routes and better fares to passengers, while guaranteeing a level playing field to our companies,” Bulc said. The air-transport deals being sought with the UAE and Qatar are a priority because those nations have fast-growing aviation markets and the issue of subsidies in the Persian Gulf states has become politically sensitive in Europe. Bulc, who’s in charge of transport at the EC, aims to reach agreements by the end of 2019.<br/>

Russia looks to revive its aircraft industry with new plane

Russia presented Wednesday a new airliner that is intended to revive the nation's aircraft-making prowess and reduce its reliance on Western planes. The MC-21, a twin-engine short- and mid-range passenger jet, was unveiled in the Siberian city of Irkutsk. It has been built by Irkut Corp., part of the state-controlled United Aircraft Corporation. Unlike the old Soviet designs, the new jet is built with a significant amount of composite materials that help reduce weight and enhance fuel efficiency. It can be powered by Pratt & Whitney engines or new Russian-built engines, which are being finalized. The new plane is expected to conduct its maiden flight next year, and deliveries to Russian flag carrier Aeroflot are set to start in 2018. Irkut has so far received orders for 175 planes, including 50 for Aeroflot. Various models of the MC-21 are designed to carry from 165 to 211 passengers. Russian Prime Minister Dmitry Medvedev hailed the new plane as the cutting edge in aircraft design, superior to Western planes currently in service.<br/>

US: Rivals match Southwest’s sale fares but not everywhere

Rival airlines are selectively matching some -- but not all -- of the sale fares that Southwest rolled out Tuesday as part of a 72-hour flash sale. Fares on several airlines – including American, United, JetBlue and Virgin America – have dropped to below $97 on some short routes where Southwest is offering similar fares. But it appears that Southwest’s rivals are being selective on which routes they’re matching the sale fares. Some city pairs show multiple airlines offering discount fares. On other routes, Southwest's fares are only partially challenged. Southwest first rolled out the sale on Tuesday, making dozens of its shortest nonstop routes available for fares of less than $100 round-trip. Other routes are also included, where one-way fares of $49, $99, $129 and $149 roughly correspond to the length of nonstop flights. Most connecting itineraries are excluded from the lowest sale fares. The sale ends at the end of the day Thursday.<br/>

India: Airlines to cut fee for extra baggage

Indian airlines will be mandated to steeply reduce fees for carrying five-kg extra baggage on flights. The Civil Aviation Ministry will ask airlines to charge Rs.100 on each additional kg baggage against an average of Rs. 300 a kg charged at present, a senior official of the ministry said. However, the reduced fares will be applicable for five-kg extra luggage. At present, domestic airlines, except national carrier Air India, allow passengers to carry 15 kg luggage free of cost. Air India allows passengers to check in with 25-kg bags without any cost. IndiGo, GoAir, AirAsia India and Air India charge passengers Rs. 250 for carrying each kg extra baggage. SpiceJet charges Rs. 300 a kg for additional luggage, Jet Airways Rs. 350 a kg and Vistara Rs. 320 a kg for economy class and Rs.330 for premium economy. With the latest move, a passenger may carry five-kg additional luggage by paying Rs. 500 to the airlines instead of shelling out Rs.1,250-Rs.1,750.<br/>