SAS will register planes in Ireland and set up bases in London and Spain to serve more leisure travellers at lower cost to compete with expanding discount carriers including Norwegian Air Shuttle. SAS is seeking an AOC in Ireland with sites in London and Spain that will initially provide a small number of departures to complement existing services starting next winter, the company said Wednesday. The airline has been contending with Norwegian Air’s strategy of offering a similar mix of European and trans-Atlantic routes. SAS said it will continue to focus on frequent travellers and the bulk of its operations will remain in Scandinavia, while trying to gain from rising demand for leisure travel. With “intense” price pressure in that segment, SAS must address its cost base, which it estimates to be 20% to 25% higher than at rivals. <br/>
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Etihad Airways and Lufthansa signed a multi-faceted commercial partnership agreement Wednesday that will see the two companies cooperate via codeshares and across catering and MRO services. It follows a deal agreed between the two late last year in which Airberlin will wet-lease 38 narrowbodies to Lufthansa Group. Etihad has a 29% stake in Airberlin. The agreement reaches far wider across the two company’s businesses and Lufthansa Group chairman and CE Carsten Spohr indicated it has the potential to eventually become a full joint venture. The business environments for both Etihad Airways and Lufthansa, as well as their group airlines, has been challenging with increased LCC competition coming on top of strong competition from the consolidated US majors and rival European airline groups Air France-KLM and IAG. <br/>
Lufthansa Group’s CE said Wednesday that aviation companies around the world need to push the industry harder in order to counter the growing protectionist movements around the world. Carsten Spohr described protectionism as a “dangerous” trend. “With doubts now in regards to globalisation coming up around the world, what better answer is there than aviation. We’re the good guys of globalisation. We make globalisation feasible for millions of people around the world," he said. “So, I think, the more we see the dangerous trend of protectionism, the more we, as leaders in aviation, need to push our industry, including partnerships like this, to make globalisation positive for as many people around the world,” he said. <br/>
Air India has ordered a probe against a senior executive pilot who allegedly skipped the mandatory pre-flight alcohol test. The airline has set up a 5-member committee to investigate the allegations, besides reporting the case to aviation regulator DGCA, which has launched its own probe. Sources said the executive pilot is currently heading Air India’s operations department. The action came after a complaint from the Indian Commercial Pilots Association claimed that a senior executive pilot had evaded pre-flight medical test in the last 25 days at Delhi airport. Aircraft Rules prohibit crew members from taking any alcoholic drink 12 hours prior to the commencement of a flight, and it is mandatory for the employee to undergo an alcohol test both before and after operating a flight. <br/>
One of the founders of WestJet Airlines is making another foray into Canada, this time with TAP Portugal. David Neeleman, one of the 5 men who co-founded WestJet in 1996, is using his significant expertise in the airline industry to help revitalise TAP with new aircraft and flights to North America. TAP had languished under govt ownership for decades when Atlantic Gateway, a joint venture between Neeleman and Portuguese investor Humberto Pedrosa, took a 61% stake in 2015. Since then, the govt has increased its stake to 50% and Atlantic Gateway’s share has fallen to 45% but it is still responsible the airline’s day-to-day management. TAP, which used to fly to Toronto in the 1990s, will re-enter the market June 10 with year-round service 5 days a week to Lisbon. <br/>
Air NZ has unveiled a new chatbot, Oscar, which uses artificial intelligence to help passengers with common queries. The airline hopes Oscar will become a "virtual travel assistant'' helping passengers through every step of their journey. Oscar will initially assist customers with commonly asked queries, which will save time and offer a more personalised experience than searching a traditional FAQ section online. Oscar will learn based on the conversations people have with him, becoming more user friendly and more helpful the more he interacts. Air NZ chief digital officer Avi Golan says the world's best digital companies foster a culture of customer-led design and collaboration. For the airline to meet its big digital ambitions it must embed this culture of thinking, acting and doing as leading digital companies do. <br/>
A British Columbia law firm says the Superior Court of Quebec has authorised a national class action lawsuit to begin against Air Canada over a glitch in ticket prices that occurred in Aug 2015. The airline’s website had offered a package of 10 flights within Western Canada for a total cost of C$800 before taxes. Two Calgary men quickly snapped up the promotion and received confirmation numbers and receipts. But when they tried to book a trip, they couldn’t find their purchases on their Air Canada accounts. When they called the airline to inquire, they were told the package deal was supposed to be priced at $8,000. Air Canada later said a “computer loading error” resulted in a temporary mispricing that offered the 10-flight package at $800 instead of the correct price of $8,000. <br/>
United Airlines and Avianca Holdings are engaged in negotiations to “deepen the companies’ commercial and strategic relations,” United said. United said it is also in talks with Avianca Brasil. Details of what form the strategic partnership may take were not revealed. “The board of directors of Avianca has authorised Avianca to carry out all the analysis and other steps that are required for a potential strategic-commercial alliance with United Airlines,” Avianca told regulators. It is unclear whether the negotiations could lead to United taking a stake in Avianca or Avianca Brasil. Avianca Brasil CE Jose Efromovich said last year that Avianca had “opened up the door” to a potential outside investment. “ <br/>