Airbus Group has delayed delivery plans for one of its newest long-range planes, adding to pressure on the plane maker to meet commitments to airline customers. TAP Portugal CE Fernando Pinto Friday said the carrier’s first A330neo plane wouldn't arrive until March 2018. Airbus had initially promised the plane would be delivered around the end of next year. Airbus is upgrading its A330 widebody with engines made exclusively by Rolls-Royce Holdings. For Airbus, it is the latest in a string of setbacks which have hit the airplane maker. Airbus is struggling to meet a target to deliver more than 670 planes this year. The company has to deliver at least a record 94 planes this month to achieve that promise to shareholders. Plane deliveries are crucial to Airbus’s cash flow. <br/>
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Embraer is in discussions with the Brazilian govt about the possibility of challenging the Québec provincial govt’s US$1b investment in Bombardier’s CSeries program through the World Trade Organisation (WTO), according to Embraer CE Paulo Cesar Silva. Silva reiterated his objection to the govt investment in the CSeries program, in which Québec now has a 49% stake. Silva believes the govt investment played a role in Delta Air Lines choosing the CSeries over an Embraer aircraft when placing a firm order for 75 CS100s earlier this year. “I continue to be very unhappy with this,” Silva said. “We are very worried about the situation because this is causing a huge disruption in the market. We are competing no longer with Bombardier, we are competing with the Canadian govt...It is very unfair.” <br/>
US officials are stepping up scrutiny of partnerships between American and foreign airlines, a shift that could help smaller carriers that say such alliances hurt their ability to compete in an increasingly consolidated industry. The DoT Wednesday affirmed a decision to impose stiff conditions on a partnership proposed by Delta Air Lines and Aeromexico. Last month the department denied an application for antitrust immunity from American Airlines Group and Qantas Airways. That marked a shift from more than 2 decades of favourable decisions for airlines sharing pricing, schedules and revenue with foreign partners. A DoT spokeswoman said the agency must consider competition and whether such proposals create substantial public benefits. <br/>
Freezing rain and snow disrupted more than 7,000 flights across the US ahead of the Christmas-season traffic peak, slowing thousands of travellers with delays and cancellations centered on airports in Denver, Chicago and Washington. United Continental and Southwest Airlines were among the hardest-hit carriers. Each has a major base in all 3 markets, and snags also rippled into United’s hub at New Jersey’s Newark Liberty. The winter weather slapped the airline industry just as traffic began building for the 21-day holiday period that began Dec. 16. A4A predicts a 3.5% increase in passengers during the period from a year earlier, to 45m. Tardy flights topped 5,100 in the US at 6:30 pm New York time, in addition to almost 2,200 flights that had been scrubbed. <br/>
Fog is causing a second day of delays and cancellations at London airports. Heathrow and Gatwick are both experiencing problems due to heavy fog across England and elsewhere in Europe. London City airport opened Sunday afternoon with a full schedule but, as with the other airports, advised passengers to contact their airline before leaving home. Further fog is predicted for Monday which could affect commuters, according to the Met Office. Travellers also face further disruption over Christmas due to planned strikes by cabin crew and baggage handlers, although talks to avert the walkout are planned for Monday. A Heathrow airport spokesman said about 30 flights, selected by the airlines, had been "tactically cancelled" because of reduced runway capacity, and delays to other flights were likely to continue all day. <br/>
Managers from Swissport will hold talks with the main union representing baggage handlers Tuesday, in one of several efforts to prevent strikes from disrupting travel over Christmas. The Unite union that represents 1,500 Swissport staff, including baggage handlers at 18 UK airports, said Friday that they would strike Dec 23 and 24 after rejecting a proposed pay rise. Swissport said a minority of union members were acting in a “cynical fashion” to disrupt the public’s travel plans and hold employers to ransom but added: “We remain committed to resolving this matter as soon as possible while protecting the interests of our customers, airline passengers and ultimately our staff.” The two sides are due to meet Tuesday at Acas, the arbitration service, which has been seeking to resolve several other disputes. <br/>
The Scottish parliament plans to halve the rate of Air Passenger Duty (APD) by the end of the current parliamentary session, with the longer-term aim of abolishing it completely. APD, introduced in 2007, was characterised by the then labour govt as an environmental measure designed to reduce the amount of aircraft emissions. However, the money goes into the UK’s general taxation pool, and is generally regarded as a convenient way of raising additional revenue for the treasury. The airline industry has complained it is the highest tax of its kind in the world and has a detrimental effect on air travel. The governing Scottish National Party has said it will cut APD in Scotland by 50% from April 1, with the aim of abolishing it completely “when resources allow.” <br/>
Iranian officials defended their deal to buy dozens of American jets, amid unease about the agreement’s fate under the administration of president-elect Donald Trump. Last week, Tehran completed a deal to buy 80 jets from Boeing for a list price of US$16.6b. The agreement represents one of Iran’s biggest post-sanctions, economic spoils. Iranian officials, providing fresh detail about the accord Sunday, asserted that by signing with Boeing before Trump’s inauguration next month, it had a better chance of withstanding critics in Washington, DC. They said they were confident of winning financing for the purchase, and warned that if Trump or the US Congress tried to scuttle the deal, Iran would seek to recover lost payments. No money has yet changed hands. Iran Air is aiming to buy about 200 jets from Boeing and Airbus. <br/>