Pratt & Whitney will soon begin deliveries of spare engines to India’s IndiGo airlines, which was forced to ground eight of its Airbus A320neo aircraft last week after engine problems, a source familiar with the matter said. P&W will deliver two engines on Wednesday and the remaining within the next 40 days, said the source. A series of in-flight engine failures prompted India’s aviation regulator to ground 11 aircraft last week fitted with certain P&W engines and operated by IndiGo, the country’s biggest carrier by market share, and rival GoAir. That led to the cancellation of hundreds of flights and about a 5% fall in the share price of IndiGo’s parent, InterGlobe Aviation, over the past week. A string of problems has clouded the rollout of P&W’s new engines, with the US aviation regulator warning in February that some engines fitted on the narrow-body A320neo planes posed a shutdown risk. IndiGo and GoAir have hundreds of A320neo planes on order but they, among other carriers, are facing delivery delays due to problems with the engines.<br/>
unaligned
Tunisair is counting on new African routes to drive passenger growth as it prepares for increased competition for flights to and from Europe under an “Open Skies” agreement with the EU. The Tunisian state-owned airline will launch two new routes by the end of this year, to Sudan and Cameroon, the company told Reuters. That will bring the number of its African routes to 10, after it began flights to Guinea and Benin last year. New paths to growth could be vital for the survival of loss-making Tunisair, the national flag carrier and one of the North African country’s biggest employers. Whether its business can adapt to the Open Skies agreement is also a test case of whether the Tunisian economy and its slew of state firms can modernize and compete after being shielded from foreign rivals for decades. The deal, which comes into force later this year, will put European carriers on a level footing with Tunisair in terms of airport slots and fees. “The agreement will have a good impact on the tourism sector and boost activities at Tunisian airports,” said Mohammed Ali al-Toumi, head of the Tunisian federation of travel agencies. “But Tunisair is not ready for fierce competition.” Flights to and from Europe are Tunisair’s main business. However the African passenger numbers are growing far faster.<br/>
Ryanair Holdings agreed to buy an Austrian airline from former Formula One motor-racing champion Niki Lauda, only the second acquisition in the Irish carrier’s history. The low-cost giant will pay Lauda less than E50m for a majority stake in LaudaMotion, which retook control of carrier Niki just two months ago following the insolvency of Air Berlin. The aviation entrepreneur paid about the same for the whole airline as Ryanair plans to spend on a 75% stake in the holding company. The deal is Ryanair’s first since it bought the UK’s Buzz from KLM in 2003, only to close the carrier down a year later. Since then it’s tried and failed to take over Aer Lingus and last year was a potential bidder for Air Berlin, before pulling out of an auction it claimed was rigged in favor of Lufthansa. Lauda will become chairman of LaudaMotion and will oversee the rebuilding of Niki, Ryanair said in a statement Tuesday. The Dublin-based company will provide an additional E50m in funds to get the carrier up and running, alongside management support and six aircraft. The airline’s fleet will grow to at least 30 and it should reach profitability by the third year of operations, Ryanair said. Ryanair will initially buy almost 25% of LaudaMotion, with a plan to increase ownership to 75% over time.<br/>
Hainan Airlines has made up missed fuel payments before the March 15 deadline and has continued international expansion plans by opening three routes from Shenzhen this week. Earlier this month, South China Bluesky Aviation Oil, a subsidiary of China National Aviation Fuel Group, threatened to stop supplying fuel to Hainan Airlines on March 16 if the company failed to make up delinquent payments since October 2017. Hainan is in discussions with South China Bluesky Aviation Oil about paying for liquidated damages after bringing payments up to date and establishing a long-term plan for paying off future fuel bills. HNA Group chairman Chen Feng previously admitted the company faced liquidity issues when the group sold three housing properties in Hong Kong in February; in early March HNA Group sold overseas investments. This week, the company is reportedly selling nine housing properties in Beijing and Shanghai, which are worth $2.2b.<br/>
Canadian startup Jetlines has shelved plans to begin flights in June due to regulatory delays and aircraft acquisition struggles, a development that leaves WestJet's Swoop in position to become the country's first ultra-low-cost carrier. "The key items remaining to commence flight operations are the completion of the licensing process, aircraft acquisition and completion of the financing process," said Jetlines. "At this stage Jetlines is in advanced negotiations with several major aircraft lessors to secure the aircraft required to support both its start-up and growth plans," the company adds. "However, it will not attain a June 2018 start-up date as previously projected." The company may provide a new launch timeline during Q2, it says. "In the interim, Jetlines continues to advance its efforts with personnel recruitment, airport agreements, the licensing process and the financing plan," according to the company. <br/>
Ukrainian startup LCC SkyUp Airlines has signed a firm order for five Boeing MAX aircraft, comprising three 737 MAX 10s and two 737 MAX 8s, making it the first Eastern European carrier to order a MAX 10. Total value of the order is $624m at list prices. According to SkyUp general director Yevhen Khainatsky, the Kiev-based airline expects to receive its air operator’s certificate from the Ukraine state aviation service this month, and plans to begin charter operations in April from several Ukraine cities to 16 international leisure destinations, including Egypt, Spain, Turkey and Dubai. At first, the airline will use leased 189-seat Boeing 737-800 NGs, built in 2001, 2002 and 2011, according to a statement released by the airline at its launch announcement in December 2017. Scheduled domestic Ukraine service will launch in May; international service will begin later in the year, with service from Kiev to Barcelona, Dubai and Larnaca, Cyprus. The airline is looking to attain a total of 12 737 NG or 737 MAX aircraft by 2022.<br/>