Delta Air Lines is nearing an order for about 100 single-aisle planes, people familiar with the matter said, in a much-anticipated deal valued at as much as US$12.7b. The carrier is also seeking options to buy as many as 100 more planes as it chooses between Airbus' A320 family of aircraft and Boeing’s 737 jetliners, said the people. Talks are advanced and a decision, which will test Delta’s strained relationship with Boeing, will probably be made before year-end, the people said. Delta is seeking to replace 1990s-vintage McDonnell Douglas MD-90 jets as well as aging Boeing 757 and Airbus A320 aircraft. As the decision nears, the carrier has been at loggerheads with Boeing over the planemaker’s US trade complaint against Bombardier’s C Series. Delta is the largest buyer of the Canadian plane. <br/>
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Strong outbound traffic flows from Korea and the opening of new markets have allowed Korean Air to brush aside initial concerns about declining numbers of Chinese tourists. Now, with the Oct 31 announcement of normalisation of relations, KAL stands poised for a full rebound. In protest of Seoul’s installation of a US-owned THAAD missile system in its territory, the Chinese govt banned tour operators from organising group tours into South Korea. As a result, KAL’s Q2 results reflected a 26% drop in traffic between China and Korea compared with a year earlier. “North Korea and China issues have affected operations throughout the year, but since total revenue is more spread out across the world we have grown in other regions and covered the decline in numbers from China and Japan,” said Walter Cho, KAL president and COO. <br/>
Air France-KLM said Monday it is overhauling its Flying Blue frequent-flyer programme, hoping to increase its contribution to sales. The airline group said it had spent 2 years and E15m on IT to overhaul Flying Blue, the joint loyalty programme of Air France and KLM with 15m active members. From next April members will earn miles based on the amount they spend on their ticket rather than the distance flown, with status members receiving more miles per euro spent. Status levels will also no longer be earned by racking up a specific number of flights. Members will instead collect more points for longer flights and for those in premium cabins. The two airlines earn nearly 55% of their revenue from loyalty schemes including corporate contracts with companies and the Flying Blue programme. <br/>