unaligned

Alaska Airlines, Branson clash over licensing fees

Alaska Airlines could be headed toward a showdown with Richard Branson over millions of dollars in licensing fees. Alaska took control of Virgin America last year. Branson, the British billionaire who helped create Virgin America, told reporters in Seattle this week that Alaska must pay royalties for the Virgin name under a licensing deal that runs until 2040. But Alaska Airlines has a different opinion because it plans to drop the Virgin brand, probably in 2019. Alaska's general counsel said Wednesday that Branson was correct only about the length of the contract. "What he didn't mention is there are lots of ways out of the contract," Kyle Levine said Wednesday. "No, we do not need to keep paying for a brand that we are not using." In a written statement, Branson's UK-based Virgin Group said the licensing agreement with Alaska has "clear obligations," including a royalty payment, and that Alaska has said Virgin America will honor its obligations. Virgin Airlines paid $7.7m in licensing fees to a Branson-controlled company in its last full year before the Alaska takeover. But that was before a 40% rate hike that likely pushed the fee to more than $10m. Branson has grumbled that he believed Alaska's leaders would value the Virgin brand but have instead ripped the heart out of it.<br/>

Britain's easyJet says it needs aviation deal after Brexit

Britain's easyJet said it wanted a straightforward bilateral aviation agreement between the UK and the EU as a minimum in a Brexit deal. The low-cost airline also said it was close to announcing its license application for a EU Air Operator's Certificate (AOC) that will ensure it can maintain its flying rights within the EU once Britain leaves. Britain formally triggered the process of leaving the EU on Wednesday, and many airlines fear disruption if a aviation deal is not sorted quickly. "When the UK leaves the EU, easyJet's minimum requirement will be a straightforward bilateral aviation agreement between the UK and the EU which will allow UK airlines to fly to Europe and European airlines to fly to the UK," easyJet said. said it would have three AOCs - UK, Swiss and EU - in the future, which will protect all its current network of flights. However headquarters would remain in Luton, just north of London, the statement said, and it would remain listed on the London Stock Exchange.<br/>

Flybe cuts capacity and costs amid weak demand, pricing pressure

Flybe Group Plc said it has reduced capacity and cut costs as weak demand, pricing pressures and rising competition from rail operators dented Q4 revenue. The airline, which connects British regional airports to London and other European cities, said on Wednesday it expects to report an adjusted loss before tax for the year through March 2017 due to a charge of 5m-10m pounds for a systems upgrade. Flybe's shares dropped 6.4% in morning trade following its results statement. Brokerage Liberum had a prior pre-tax profit forecast of GBP4.2m pounds for the year. It now estimates a loss of GBP3.8m. The airline said that summer trading this year is in line with its expectations. It forecast an 11% increase in revenue in the first half of 2017-2018 and a 6% rise in yield, helped by the timing of the Easter holiday, which is later than last year. In the quarter through March 2017 it estimated passenger revenue rose by 9.8%, compared with 13.5% in the previous quarter. "The period has been characterised by weak demand in an uncertain consumer environment, together with price competition arising from overcapacity amongst airlines and sharpened price activity from rail operators," Flybe said. European airlines have driven down fares by adding more seats to boost their market share in a period of low oil prices. <br/>

Mesa Airlines' flight attendants authorize a strike

Mesa Airlines flight attendants, including about 440 people in Houston who work aboard United Express flights, voted to authorize a strike with a 99.56% approval rate, the Association of Flight Attendants-CWA announced Wednesday. The flight attendants are seeking better pay and benefits. The vote comes after five years of negotiations and two years in mediation. Negotiations are scheduled to continue April 5. Approving the strike will add extra pressure to these negotiations, but flight attendants can't walk off the job unless the National Mediation Board releases them.<br/>If released, there will be a 30-day cooling-off period in which the union and company can continue negotiations. Flight attendants can go on strike at the end of that period if no agreement is reached.<br/>

Aircraft impact at Singapore’s Changi Airport

Singaporean budget carrier Scoot made contact with an Emirates aircraft during early hours Thursday at Changi Airport, Singapore. Both Changi Airport and Scoot confirmed that an on-ground accident happened between Emirates EK405, which was bound for Dubai, and Scoot TZ188, which was departing for Tianjin. The left wing of Scoot flight TZ188 "came into contact with an Emirates aircraft…while TZ188 was taxiing before take-off," a Scoot representative said. A Changi Airport spokesperson said that there were no injuries and passengers aboard the Emirates plane were re-booked on other flights scheduled to depart later on Thursday. The accident occurred at about 1:40 am HK/SIN, and the Scoot flight was rescheduled to depart to Tianjin several hours later on a replacement aircraft. All 303 passengers and crew members on board the Scoot aircraft were safe, the Scoot representative said.<br/>

Virgin Australia reveals in-flight Wi-Fi plans

In-flight internet access is shaping up as a key battleground for Australia's two major airlines, with Virgin Australia announcing a trial of on-board Wi-Fi to match the service Qantas is close to launching. Virgin Thursday revealed plans to offer passengers Wi-Fi by connecting to Optus satellites on domestic and New Zealand flights and to global network providers Intelsat and SES for other international flights. The airline said it would next month begin a three-month trial of the technology on a single Boeing 737-800, its domestic workhorse, with installation of 2Ku antennas across its full fleet of 737-800s, 777s and Airbus A330s to follow. Qantas is close to launching its own Wi-Fi services across its domestic fleet of 737s, which will connect to NBN satellites. It had intended to start offering the service to some customers this week, but pushed the launch back because of "stability issues". Qantas said it remained on track for a domestic rollout from mid-year, but has not yet announced Wi-Fi plans for its international fleet. <br/>