Ryanair and its Italian pilots union ANPAC said Wednesday they were close to a deal on formal recognition and working conditions in what would be a major breakthrough in the airline’s efforts to avoid strike action across Europe. A deal in Italy would mean pilots in two of the airline’s three largest markets - Britain, Italy and Spain - would have reached provisional agreement with management. In Ryanair’s biggest market, Britain’s BALPA union signed a recognition deal in January and Ryanair’s COO Peter Bellew on Tuesday said talks with the SELPA pilot union in its third biggest market in Spain were “very positive.” “Things are really going fast. At the next meeting we may be able to sign an agreement,” ANPAC official Riccardo Canestrari said following a meeting with Ryanair management. At a press conference in Rome, Ryanair CE Michael O‘Leary said he hoped to sign an agreement at their next meeting with the airline’s management in two weeks’ time. The airline averted widespread strikes ahead of Christmas by announcing plans to recognize pilots’ unions for the first time in its 32-year history and is talking with unions across Europe on formal recognition. But progress had been slow and O‘Leary has warned that the company may face strike action at Easter or the summer.<br/>
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China’s HNA Group has amassed an estimated 3b yuan (US$476m) bill with a state-run aviation fuel company, two oil industry sources said, underscoring how a deepening cash crunch is plaguing core operations at the conglomerate.<br/>HNA’s outstanding balance with China National Aviation Fuel Group Ltd (CNAF), the country’s near-monopoly marketer and distributor of aviation fuel, has swelled significantly over the last six months, the sources said, without quantifying. “HNA has not stopped fully paying its bills, but it only has paid a small amount at a time, so the outstanding (balance) has grown bigger and bigger,” said a senior oil industry executive with direct knowledge of the matter. A second executive briefed on the situation said the problem “really deteriorated over the past several months”. HNA has controlling stakes in Hainan Airlines Holding and 12 other carriers in China and Hong Kong. The company also has invested heavily in aviation leasing, logistics and financial services. HNA Group said in a statement on Wednesday Hainan Airlines “maintained positive and friendly communication” with CNAF. “At present, all businesses are carried out steadily,” it added, without elaborating. The unpaid bills underscore how an ongoing liquidity squeeze is rippling through company core operations, impacting even its highly successful airlines business.<br/>
Pilots for Spirit Airlines have ratified a five-year contract that will raise pay rates by an average 43%. The airline and the Air Line Pilots Association said Wednesday that 70% of pilots who voted favoured the agreement. The union says the contract also includes double-digit contributions to pilots' retirement plans and job-protection provisions. CEO Robert Fornaro says the contract will improve efficiency and reliability. The low-cost carrier has clashed with its pilots at times. Last year Spirit said it lost $45m when 850 flights were cancelled because of what it called an illegal work slowdown. A federal judge ordered pilots back to work after cancellations sparked a passenger melee at a Florida airport.<br/>
AirAsia Group plans to launch its latest franchises in China and Vietnam later this year, as its current overseas affiliates demonstrate stronger financial performance. AirAsia has taken steps to establish joint venture (JV) frameworks in China and Vietnam, and during its latest earnings presentation the group said it wants the new carriers to begin operating in H2 2018 “after obtaining the necessary approvals.” Group CEO Tony Fernandes said one of AirAsia’s goals is to “continue to grow our presence and market share” in the Association of Southeast Asian Nations (ASEAN) region. He highlighted the proposed Vietnamese airline as “the final piece of the puzzle to complete our ASEAN connectivity.” The group has yet to reveal details about aircraft fleets for the two startup carriers. AirAsia said its four ASEAN carriers—in Malaysia, Thailand, Indonesia and the Philippines—and its Indian affiliate reported operating profits in Q4, the first time they have all achieved this in the same quarter. The other JV in Japan is still in the early stages after beginning operations in October. Fernandes particularly mentioned the turnaround of AirAsia Philippines, which has “proven that perseverance and our business model truly works,” he said. Philippines AirAsia achieved an operating profit of 665.3m pesos ($12.8m) in 2017, despite numerous one-off costs and 37% capacity growth. This unit is targeting an IPO in H2 2018.<br/>
Southwest is raising the price of alcoholic beverages on its flights. Starting Thursday, March 1, the nation's largest domestic carrier, whose in-flight drink menu has long bragged about "$5 happy hour, every hour," will charge $1 or $2 more per drink. The new prices are still $1 cheaper than Southwest's major competitors' prices in most cases. Southwest spokeswoman Melissa Ford said Southwest hasn't changed its drink prices since 2009 and that the new prices are still competitive. Passengers have complimented Southwest in the past for its cheap drink prices. The price increase won't affect passengers who use Southwest's coveted drink coupons. Members of Southwest's Rapid Rewards frequent-flier program get four free drink coupons after every 10 flights (five round-trip flights). And travelers who buy the priciest tickets, Business Select, get a coupon for a free drink the day of travel.<br/>