LATAM Airlines Group's CE Enrique Cueto has warned of challenging macroeconomic conditions for the region's airlines in 2019, even as he is cautiously optimistic that a change of govt in Brazil could benefit the country's businesses. "The Brazil currency devaluation is improving because of the election results," Cueto said. "But in any case, 2019 will be a challenge for the region." Cueto says of the country's incoming administration: "I think it might be more pro-business." His comments largely reflect general sentiments in the business community, but Cueto was quick to add that it is "yet to be seen" what the new govt will actually do to support businesses. "Like for many things in Brazil, it can be unpredictable," he adds. <br/>
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Finnair is evaluating its plans for narrowbody replacements, with deliveries anticipated to begin about 2020, as 37 of the airline’s existing narrowbody fleet approach mid-life. The carrier operates a mainline fleet of 57 aircraft: 11 Airbus A350s, 9 A330s, 19 A321s, 10 A320s and 8 A319s. “On the narrowbody side, we have quite a middle-aged fleet. At this point, we are trying to think about what to do with those aircraft as they reach the end of their life. I don’t know when we’ll make the decision, but they’re mid-life, so I’d not anticipate taking any deliveries until the beginning of the next decade,” Finnair VP and group treasurer Christine Rovelli said. Finnair would be looking to replace about 37 aircraft, although they would be operated until the end of their service lives, she said. <br/>
Britain's aviation industry hit out at the govt Monday over its decision to increase a tax on long-haul flights, saying it made a mockery of the govt's ambition for a 'Global Britain' after it leaves the EU. British finance minister Philip Hammond said in his annual budget that Air Passenger Duty would be frozen for short-haul flights but would rise in line with inflation for long-haul. IAG, said the tax hindered its efforts to fly to new trading markets. "It's ironic that this Brexit budget has undermined Britain's global competitiveness by upping Air Passenger Duty, the world's highest aviation tax, again," IAG said. "We want to offer more flights to key trading markets, like our European competitors, but APD stifles route development to new emerging markets. If Britain wants to compete on the global stage post Brexit, it should be scrapped now." <br/>
Iberia is boosting services from its Madrid Barajas hub to Latin America, and introducing additional Airbus A350 XWB routes to Buenos Aires Ezeiza (Argentina) and Chicago O’Hare in 2019. The carrier will increase capacity between Madrid and Montevideo (Uruguay) from 5X-weekly to daily; to Quito (Ecuador) from 6X-weekly to daily; and to Rio de Janeiro (Brazil) from 5X-weekly to daily services, starting July 2019. Madrid-Lima (Peru) services will increase to 10X-weekly in July and Aug 2019. In 2019, Iberia will take delivery of 3 additional Airbus A350-900s, which will enable the airline to operate type on its strategic Madrid-Buenos Aires route from February onward on 1 of 2 daily flights. Buenos Aires is a key market for Iberia, which will add frequencies, up to 17X-weekly, in 2019. <br/>