Emirates is holding out for assurances about the future of Airbus’ A380 program before committing to an US$8b order for more of the double-decker aircraft. While Airbus is pushing for a deal at November’s air show in Dubai, concern that the value of used A380s will plummet if the slow-selling model is canceled represents a major sticking point, together with the proposed price, Tim Clark, the airline’s president, said Thursday. “I know they would like us to do something,” Clark said. “At the moment we are not at that state of readiness. We need copper-bottomed undertakings that they would do everything they needed to do to keep the program going. We don’t want to be left with aircraft that have no value.” Airbus announced in July that it will slash A380 production to 8 jets a year in 2019, down from 15 this year. <br/>
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Emirates president Tim Clark said Thursday he hopes that the airline will restore capacity to the US in 6 to 9 months after some flights were dropped earlier this year. "Demand for travel is still fairly strong, and I'm hoping that in the next 6 to 9 months that we will restore our capacity to what it was," Clark said at an industry conference. Emirates started cutting frequencies on 5 US routes from May, blaming a drop in demand on travel restrictions imposed by US president Donald Trump's administration. Clark said in June that demand to cities where Emirates had cut capacity had started to improve. <br/>
Juneyao Airlines reported a 2017 first-half net profit of CNY624.9m (US$92.1m), down 12% over net income of CNY710.2m in the year-ago period because of higher fuel prices. First-half operating revenue jumped 23.4% year-over-year to CNY5.9b while operating expenses rose 33.3% to CNY4.7b. The carrier cited a jump in fuel prices to CNY1.4b, which accounted for 29.6% of total operating expenses in the first half of the year. Passenger boardings increased 26.7% YOY to 7.9m with an average load factor of 87.1%, up 1.01 points over the year-ago period. Capacity rose 23.4% YOY to 15.2b ASKs against a 24.9% increase in passenger revenue to 13.2b RPKs. Cargo traffic volume grew 23.7% YOY to 40,757 tonnes. <br/>
SpiceJet has begun an order contest between Boeing and Airbus for wide-body aircraft, in the strongest indication yet that it will go ahead with a move into discount long-distance flights. The carrier is evaluating the US manufacturer’s biggest 787-10 Dreamliner together with Airbus’s A350-1000, Ajay Singh, its chairman, said Thursday. SpiceJet is considering the introduction of flights to more distant markets including Europe, but needs Boeing and Airbus to come up with proposals to minimise costs, Singh said. The carrier’s jetliner order book is limited to 175 Boeing 737 narrow-body planes. India has the potential to be a “tremendous’” long-haul market, “if you can work out the math and bring down the cost,” Singh said. <br/>
A new South Korean budget carrier says it can help push air fares down by as much as 30% and still stay profitable in a market already crowded with 6 rivals. Aero K Airlines, backed by venture capital funds, plans to use new, fuel-efficient aircraft and a base where airport levies are at least 60% cheaper than the nation’s main hub in Seoul, chairman Kang Byung-ho said. The operator expects to get a permit this month and start services as early as April as the nation’s seventh LCC, he said. “We see Northeast Asia as the biggest opportunity,” Kang said. “If we do everything correctly, we think we can bring the cost structure down.” Rising wealth is encouraging more South Koreans to explore Japanese resorts and splurge at luxury shopping in Hong Kong, spawning more budget airlines. <br/>
Pegasus is looking to boost its flights between Europe and Turkey following a recovery in demand this year as the security situation improved, it’s CCO said. After a torrid 2016 which saw Pegasus make a loss after a series of attacks in the country, tourists are returning to Turkey. Pegasus's passenger numbers increased 14.1% between January and July from a year earlier and the carrier returned to profit in Q2. "For European destinations, with our fleet increasing and due to the market demand, we will be looking at increasing flight frequencies to Italy, to Spain, to Germany, to the UK," Pegasus CCO Guliz Ozturk said Thursday. "If the market demand is there, because of the perception of an improvement in the situation in Turkey, we will utilise that demand." <br/>
Britain is likely to have a bilateral arrangement in place to keep transatlantic flights going after it leaves the EU, the head of Virgin Atlantic Airways said Thursday. Britain needs to negotiate an air transport service agreement with the EU to keep planes in the air when Britain leaves the bloc and will also need a replacement for the "open skies" agreement between the US and the EU. "I have a lot of confidence that what we've seen this year is an indication of the fact that the UK is not going to cut itself off from the rest of the world, from a travel perspective," Virgin Atlantic's CE Craig Kreeger said. "I'm confident that the UK and US will have a bilateral arrangement in place that means flight don't cease. The things that are really important will work their way out over time." <br/>
UTair Aviation reported a 2017 first-half net loss of RUB3.7b (US$62.6m), widened from RUB684.9m in the year-ago period. First-half revenue fell 5% to RUB32b and operating loss was RUB8m, reversed from a RUB1.7b profit in 1H 2016. The carrier reported negative equity of RUB6b, which remained flat compared to the year-ago half. The company did not comment on reasons for the losses. From January-July 2017, the airline carried 4m passengers, up 13.2% year-over-year . According to the airline’s 1H 2017 financial report, forward ticket sales grew from RUB1.6b to RUB5.8b YOY, suggesting that either the company has improved its sales strategy or increased the number of cheap tickets sold forward. At the same time, its cash on account decreased from RUB4.3b to RUB2b YOY. <br/>
Ryanair faces a fresh shareholder revolt at its annual meeting this month after adviser groups called on investors to vote against executive pay and the re-election of chairman David Bonderman. An influential trio of advisers — Institutional Shareholder Services, Glass Lewis and Pirc — have recommended investors vote against the carrier’s advisory pay report, flagging concerns about “poor disclosure” and bonus payments. ISS, which advises more than 1,700 of the world’s biggest investors, and Pirc also advised against the re-election of Bonderman, blaming the chairman for corporate governance failures at the carrier. The airline has frequently clashed with shareholders at its annual meetings. Last year, almost a fifth of investors revolted on pay. <br/>