Partly because of Hurricane Harvey, which shut down both major Houston airports for several days, cancelled flights surged and delays increased on US airlines in August. The airlines, however, seem to be losing track of fewer bags, and consumer complaints are down from a year ago. The DoT said Tuesday that the dozen airlines covered in its monthly air travel consumer report canceled 2.2% of their flights, up from 1.4% in August of last year. The department said that 77.1% of domestic flights arrived on time, down from 77.6% in August 2016. The government counts a flight on time if it arrives within 14 minutes of schedule. Hawaiian Airlines had the best rating among the 12 largest US airlines, with 93% of its flights on time. The airline benefits from often-favorable weather and many short flights among the islands in its home state. Virgin America had the worst rate, followed closely by JetBlue Airways. Both carriers were late more than 30% of the time. Nine domestic flights and two international flights were stuck on the ground so long that the airlines involved could be fined. The department said it was investigating all 11 incidents.<br/>
general
By relinquishing control of its C Series jets to longtime rival Airbus, Bombardier is scaling back its ambitions to build jetliners for the world’s airlines. The deal marks a step away from what had been touted as the crown jewel of Canada’s biggest aerospace company before it was tarnished by cost-overruns and trade disputes. With the future of the C Series now up to Airbus, the Montreal-based manufacturer is likely to sharpen its focus on private jets and trains -– two businesses with higher margins. “This is Bombardier opening the door to the transition away from commercial aviation,’’ said Karl Moore, a professor of management strategy at Montreal’s McGill University. “I’m not sure they had much of a choice. Surely they will have interesting opportunities in executive jets and trains, and they can reinvest in those.’’ Private business jets have been Bombardier’s most profitable division, while commercial aircraft –- weighed down by losses tied to the development of the C Series -– ranked among the company’s worst-performing. Bombardier’s commercial unit includes older products such as the CRJ regional jet and the Q400 turboprop. The C Series is Bombardier’s biggest and most expensive commercial jet program, often billed by the company as a “game-changing’’ aircraft with superior economics and fuel efficiency. The deal with Airbus gives the European planemaker majority control with a 50.01% stake. Bombardier will retain about 31%, and the Quebec government will hold 19%.<br/>
Boeing’s diminutive Canadian rival just found itself one heck of a wingman. The world’s largest aerospace company tried to block Bombardier’s all-new C Series jet from the US by complaining to the government about unfair competition. Now that move is backfiring as Boeing’s primary foe, Airbus, takes control of the Canadian aircraft -- with plans to manufacture in Alabama. The deal leaves Boeing’s 737, the company’s largest source of profit, to face a strengthened opponent in the market for single-aisle jetliners, where Airbus’s A320 family already enjoys a sales lead. The European planemaker is riding to the rescue of a plane at the center of a trade dispute that soured US relations with Canada and the UK, where the aircraft’s wings are made. “For Boeing, its decision to wage commercial war on Bombardier has arguably had some unintended negative outcomes,” Robert Stallard, an analyst at Vertical Research Partners, said in a report. “As well as damaging relations with the Canadian and U.K. governments and some major airline customers, it has now driven Bombardier into the arms of its arch competitor.”<br/>
Bombardier discussed a potential sale of a stake in its C Series program with Chinese firms before reaching a pact with European giant Airbus, according to people familiar with the talks. Airbus announced Monday it acquired a majority stake in the jet project for nothing, reshaping the airline sector amid a trade dispute with Chicago-based Boeing. Bombardier had been in touch with a small group of Chinese state-owned enterprises about a C Series investment, according to two people familiar with the talks. The firms included Commercial Aircraft Corp. of China Ltd., one of the people said. Comac declined to comment on the Airbus deal and their media department said they weren’t aware of any talks with Bombardier. Mike Nadolski, a Bombardier spokesman, said the company wouldn’t comment for this story as a matter of policy. Quebec Economy Minister Dominique Anglade, acknowledged other negotiations when asked if talks were held with China specifically.<br/>
Airbus’s deal for a majority stake in Bombardier’s CSeries jet programme is expected to jumpstart sales of the Canadian aircraft in Asia, analysts said. The Airbus-Bombardier deal will give the planemaker a 50.01% interest in the CSeries programme, while the jet will get a better sales network. The 110-to-130 seat plane has not secured a new order in 18 months and is being threatened by a possible 300% duty on US imports. In Asia, Korean Air Lines so far the only customer of the narrowbody jets and is slated to soon take delivery of the first of 10 CS300 aircraft. “Interest in the CSeries has been low in this region and having Airbus supporting the programme could be a big boost,” said Brendan Sobie, Singapore-based chief analyst at CAPA Centre for Aviation. Airbus has a much stronger market position in Asia than Bombardier, which is in the middle of a 5-year turnaround plan after considering bankruptcy because of a cash-crunch as it developed multiple plane programmes simultaneously. Airlines in Asia have likely held back from placing orders due to concerns that Bombardier’s weak financial position placed the CSeries programme in jeopardy, said Shukor Yusof, founder of Malaysia-based aviation advisory firm Endau Analytics. “Potential buyers of the CSeries are now given comfort with Airbus becoming a major shareholder thus ensuring stability in the programme,” he said.<br/>
South Korea's airlines will impose higher fuel surcharges on international passengers next month due to an increase in jet fuel prices, industry sources said Tuesday. Local airlines didn't impose fuel surcharges on long-haul routes from May to September as the average price of jet fuel remained below the benchmark $1.50 per gallon. But they imposed fuel surcharges on international routes this month as the average fuel price went above the number. Fuel surcharges on international routes will rise by up to 20,400 won (US$18) in November from the current maximum of 9,600 won for this month, according to airline officials. The average jet fuel price of $1.63 per gallon, the basis for next month's fuel surcharges, is up from last month's basis of $1.54, they said. <br/>