oneworld

BA owner IAG assessing plane orders on slow economy

IAG, the owner of BA and Iberia, is considering reining in fleet plans as worldwide economic growth slows and the company grapples with the effects of Britain’s referendum to exit the EU. “Without doubt all airlines, including airlines within IAG, are reassessing their requirements for new aircraft,” as the outlook for growth has “softened,” CEO Willie Walsh said Thursday. “I don’t think we’re going to see growth rates that were anticipated.” The comments reflect a tougher sales environment for planemakers. Airbus and Boeing racked up their lowest tally of aircraft orders in six years at the aviation industry’s annual showcase this summer. While both Airbus and Boeing sit on huge order backlogs, that cushion could provide little protection if headwinds continue and airlines start to feel the pinch from lower fares. IAG, which also owns Aer Lingus, ordered 20 single-aisle Airbus A320neo planes a year ago, and Walsh outlined plans earlier this year to buy used widebody Boeing 777s and lease Airbus’s double-decker A380s for British Airways. Following the UK vote in late June to quit the EU, Walsh said IAG will have to cut spending amid a plunge in the pound’s exchange rate and a slowdown in traffic growth as business customers scaled back travel in response to the referendum. Corporate customers are still holding off on business trips as they analyze how the Brexit vote will affect Britain’s economy and currency, Walsh said Thursday. <br/>

Court orders Malaysia Airlines to hand over documents on MH370 to passengers' next of kin

Malaysia Airlines has been ordered by the High Court to provide documents on missing flight MH370 to 76 next-of-kin of passengers who were on board. Judicial Commissioner Azizul Azmin Adnan made the decision in chambers yesterday, according to MAS lead counsel Saranjit Singh. "We have to disclose documents that are relevant to the plaintiffs. I need to seek instructions from my client on whether to appeal this ruling," he said. Federal counsel Shaiful Nizam Shahrin, acting for the Government, confirmed the court order. The plaintiffs' lawyer Michael Yap said all relevant documents had to be supplied to them and that the court expects the order to be complied with by Oct 20. The government, DCA and RMAF had objected to the bid, describing it as "a fishing expedition". Saranjit had also objected on grounds that the request was premature and not necessary.<br/>

Malaysia Airlines expects smaller loss

Malaysia Airlines reported lower passenger loads in the second quarter but said it expected to record a smaller loss for the year than originally budgeted. Q2 was weaker with quarterly revenue down due to soft demand during Ramadan. The flag carrier said it expected a stronger Q3. Load factor dropped 0.3 percentage points to 68.6% from Q1. “Competition both domestically and globally remains intense and I expect it will intensify in the second half of the year,” CE Peter Bellew said. “In the second half of 2016 we are working hard on revenue generation with more aggressive marketing and sales initiatives whilst maintaining strict cost discipline.”<br/>

American Airlines joins rush to Cuba with first flights

American Airlines has launched regularly scheduled service to Cuba, operating non-charter flights to the island for the first time. American Flight 903 landed in Cienfuegos, Cuba, ahead of schedule at about 11:15 a.m. local time “to applause from passengers,” according to a first-hand account from The Miami Herald. American’s second regularly scheduled flight to Cuba – Flight 1041 from Miami to Holguin – touched down about a half hour later. American becomes the second big US airline – and third overall – to add regular service to Cuba since the Obama administration moved to relax flight restrictions between the nations.<br/>