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Air Canada seeks bank partner for $1.6b loyalty plan

Air Canada said it’s seeking a credit-card partner as it prepares its own frequent-flier program after years of relying on Aimia’s Aeroplan. The Montreal-based airline “will be inviting key financial institutions to participate" in a request for proposals, CEO Calin Rovinescu said Tuesday. The co-branded credit card will “yield significant value for us,’’ he later said. Canada’s biggest airline is looking to capture more benefits from a program expected to have a net present value of at least C$2b over 15 years. Aeroplan was once part of Canada’s most popular credit card, Canadian Imperial Bank of Commerce’s Aerogold Visa. The two-decade partnership ended in 2013 when Toronto-Dominion Bank took over as the primary financial partner, though CIBC can still offer Aeroplan cards under a 10-year deal. Air Canada’s contract with Aimia runs until June 2020. The carrier has used the Aeroplan loyalty program, which offers consumers rewards including points toward Air Canada flights, for more than 30 years. Aeroplan is owned and operated by Aimia. “International travel is the most popular reward a credit card loyalty program can offer," Rovinescu said. “This makes us therefore a highly desirable partner as Canada’s largest carrier with the most expansive global network and three powerful hubs.’’<br/>

United's turnaround wobbles after airline fare war jolts investors

Last year, United soared 27%, surpassing rivals as investors cheered a new management team’s turnaround plan. This year, shares are down 20%, the worst in the pack. The growing knock against United is that it’s trying to do too much, too fast. It’s growing aggressively. It’s waging fare battles against discounters, hindering a rebound in pricing power. It botched the rollout of a no-frills product designed to limit the pain from low-cost competition. The stock drop is adding to pressure on CEO Oscar Munoz and President Scott Kirby as they advance a $4.8b initiative to boost revenue, trim costs and catch up with the profit margins of Delta. While they have warned that the turnaround’s benefits won’t fully materialize until 2020, investors are losing patience as the company’s recent moves have undermined ticket prices and shares. “This is the right long-term strategy,” said John Tompkins, the founder of Tyvor Capital. “But what does that mean in the near term?” Munoz and Kirby have cautioned that the benefits of their plan will take time to show up in the company’s results. “We continue to execute on the commitments we made to our investors, our customers and our employees, and we are making the right decisions today for the long-term success of United Airlines,” a spokeswoman said.<br/>

Turkish Airlines opens new flight training center in Istanbul

Turkish Airlines has opened a new flight training centre at Istanbul Atatürk Airport for its more than 4,000 pilots and 10,000 flight attendants. The new 25,600 sq m flight training center can accommodate 2,260 crew members, increasing capacity by 48%, and will be also available for third-party business. Turkish Airlines chairman of the board and the executive committee İlker Aycı said the opening of the new airport in Istanbul “will lead to a strong demand for well-trained flight crew. With our flight training center, we aim to encourage national, in-house training, increase our competitiveness and market share globally in terms of training, and thus contribute to the country’s economy as well.” The new facility will increase the number of full-flight simulators (FFSs) from 10 to 14, and the number of classrooms from 58 to 90. Ten new FFSs will soon be delivered; Turkish is targeting a total of 24 FFSs. Turkish did not mention the aircraft types of its simulators; however, during an earlier visit to Istanbul, ATW understands it has simulators available for Airbus A320/330s and Boeing 737/777s.<br/>

Air NZ says burst fuel pipeline will not hit annual result

Air New Zealand said it believed the fuel pipeline rupture that is preventing jet fuel from being piped from Refining NZ's plant at Marsden Point to Auckland would not have a big impact on its bottom line. A spokeswoman for the airline said there had been no change to its statement issued on Monday, which said the supply issue was unlikely to have a material impact on the annual result for the June 2018 year. The company last month reported earnings before tax for the 2017 financial year of $527m - the second highest result in the airline's history. In its latest update, Air NZ said it was continuing to experience disruption to its services following the temporary shut-down of Refining NZ's pipeline to Auckland. The airline cancelled four transtasman and 26 domestic flights between Sunday and today. Air NZ estimated up to 3000 customers will be impacted by cancellations today with around 6000 inconvenienced by unexpected schedule changes. In most cases passengers are being accommodated on alternative services and the airline is working through the process of notifying customers, it said.<br/>

New Zealand's fuel shortage hits more flights and petrol stations

New Zealand’s jet fuel shortage on Tuesday forced 39 flights to be canceled, 13 of them international, with concerns the fuel crisis may spread after fuel stations in the country’s largest city Auckland halted high-octane gasoline sales. The fuel shortage, caused by a damaged pipeline to Auckland Airport, has caused widespread disruption to air travel since the weekend and comes only days before Saturday’s national election with infrastructure shortages a hotly contested issues. New Zealand’s military, which cancelled an exercise with Singapore to save fuel, was trucking fuel supplies around the country in an attempt to ease the shortage and government officials have been asked to avoid non-essential air travel. Air New Zealand said on Tuesday it was beginning to refuel long-haul aircraft at the international airport in the capital Wellington. Flights to and from Auckland have stopped at airports in Australia and Pacific islands like Fiji to refuel. The airline said it was restricting its ticket sales, which it called an “unusual step”, and that it would not accept any last-minute cargo, except for important medical equipment. New Zealand’s largest fuel supplier Z Energy said on Tuesday that gasoline for some high-end cars was not available at 13 of its fuel stations in Auckland, according to a spokesman.<br/>

​Thai takes its first Boeing 787-9

Thai Airways International has taken delivery of its first Boeing 787-9. The aircraft arrived at Bangkok Suvarnabhumi Airport on 17 September after a delivery flight from Boeing's Everett Delivery Centre, says the carrier. Registered HS-TWA, the jet is powered by Rolls-Royce Trent 1000 engines and features 30 business class and 268 economy seats. The aircraft will operate the Bangkok-Chiang Mai route between 23 and 30 September, and then the Bangkok-Singapore route from 1 October to 15 November. Following the delivery of its second 787-9, Thai will start using the type on services to Auckland and Taipei. Flight Fleets Analyzer shows that the second -9 will arrive in mid-October. Thai operates six 787-8s, and the two 787-9s will conclude its 787 orders. Flight Fleets Analyzer shows that both -9s are leased from AerCap.<br/>

United's farewell flight for the Boeing 747 sells out in less than 2 hours

United says seats on its just-announced farewell flight on “Queen of the Skies” sold out quickly, disappearing in less than two hours. United’s 747s seat 374 passengers, though the carrier did not sell seats on the plane’s upper deck so that fliers would be able to amble through the space on what will be its last-ever passenger flight for United. The Nov. 7 flight will fly from San Francisco to Honolulu. After the flight, United will retire the 747 from its fleet. But, with that final flight, United plans to send the plane into retirement in memorable fashion. There will be a “throwback” theme for the flight, with United’s crews donning 1970s-era “retro” uniforms and serving “1970s-inspired” menu options. In-flight entertainment options also will hail from the 1970s. It’s all part of an effort by the airline to recreate the atmosphere passengers would have been experienced on United’s first-ever 747 flight in 1970, which also flew from San Francisco to Honolulu. <br/>