A crucial sensor was replaced on a Lion Air jet the day before it plunged into the Java Sea, and that sensor replacement may have exacerbated other problems with the plane, Indonesian investigators said Wednesday. That sensor, known as the "angle of attack" sensor, keeps track of the angle of the aircraft nose to help prevent the plane from stalling and diving. Earlier this week, Indonesian officials hinted that airspeed indicators played a role in the Oct 29 crash. The jet's airspeed indicator malfunctioned on its last 4 flights, and that problem was related to the sensor issue, said Indonesia's NTSC Wednesday. Lion Air's first 2 attempts to address the airspeed indicator problem didn't work, and for the Boeing 737 MAX 8 plane's second-to-last flight Oct 28, the angle of attack sensors were replaced. <br/>
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Indonesia's transport ministry is conducting a special audit on Lion Air, following the crash of one of its Boeing 737 Max 8 aircraft Oct 29. Transport minister Budi Karya Sumadi said that the audit would cover aspects including personnel qualification and standard operating procedures. He adds that an initial audit, involving ramp checks of the 11 in-service 737 Max 8s operated by Lion and Garuda Indonesia, were conducted over the weekend and that both carriers passed the initial checks. Sumadi was also quoted in local media reports as saying that discussions have been held with ICAO, the EU, and the US FAA to assist in the special audit, as well as to assess areas for improvement. Lion Air operates 10 737 Max 8s, while Garuda operates 1 of the type. <br/>
Ryanair Holdings and long-time CE Michael O'Leary have been sued in New York by a shareholder that said the airline defrauded investors and inflated its share price by overstating its ability to manage labour relations and keep costs down. The complaint was filed Tuesday by an Alabama pension fund, seeking class-action status and damages for investors in Ryanair's American depositary shares from May 30, 2017 to Sept 28, 2018. Wednesday, Ryanair said it will defend itself against the claims, which it called "false" and "doomed to fail." According to the complaint, Ryanair misled investors in regulatory filings and conference calls about its labour stability, including "industry leading" contracts with pilots and cabin crews, and its positive impact on operations. <br/>
Italy's competition watchdog said Wednesday it will begin legal proceedings against Ryanair and Wizz Air for failing to suspend controversial charges for carry-on bags. The Antitrust Authority "decided to initiate proceedings for non-compliance" with the order issued a week ago against the airlines. Both companies had decided to allow only a small bag that could fit underneath a plane seat for free, causing angry consumer associations to take up the matter before the Antitrust Authority. "Asking more for an essential element of the air transport contract, carry-on baggage, is a fallacious representation of the ticket's true price and harms cost comparison among carriers, which misleads consumers," the Antitrust Authority said last week. <br/>
Virgin Australia has come under attack from high-profile investor Geoff Wilson, who has said the airline's chairman should be "embarrassed" by the airline's share price and demanded the board reconsider privatisation. The carrier is about 90% owned by major foreign airlines, and its board considered taking the company private earlier this year but eventually decided against it. At Virgin's annual general meeting Wednesday, Wilson, from Wilson Asset Management, expressed frustration that his firm's shares in the airline had not increased in value to reflect the airline's improved underlying profitability, which he blamed on Virgin's "dysfunctional" shareholding structure and the resulting stock illiquidity. Virgin's share price has remained stubbornly low since the company raised A$1.1b in new capital from its major investors in 2016. <br/>
Virgin Australia is on track to receive its first Boeing 737 MAX aircraft in Nov 2019 and is not considering further delays to the delivery date. The carrier now believes the revised 737 MAX timetable is appropriate and will not delay deliveries to boost its financial position, CE John Borghetti said. The airline is scheduled to receive 30 737-8s and 10 737-10s. The aircraft will primarily be for fleet replacement, although some will also be for growth, Borghetti said. The “economics … don’t make sense” to delay retirement of the airline’s 737-800s any further, Borghetti said. The carrier does not want to be in a position of operating 25-year-old aircraft and then facing a “tidal wave of capital expenditure” Higher fuel burn and increased maintenance boost the cost of operating older aircraft, he said. <br/>
Wizz Air cut its full-year profit forecast by as much as 21% Wednesday, blaming an E80m (US$92m) hit from higher fuel prices. However, the fast-growing carrier said it was better placed to cope with rising fuel prices than many rivals. It pointed to its ultra-low cost model and expansion plans based on the arrival of new, more fuel-efficient planes next year. "I don't think that the high fuel price environment is necessarily a structurally bad thing for Wizz Air," CE Jozsef Varadi said. "It helps the market consolidate and makes the stronger airlines even stronger." Jet fuel prices are around 23% higher than a year ago. In the short term, Wizz said it would mitigate higher fuel prices by reining in costs and reducing second-half capacity growth to 14% from a previously planned 18%, helping to boost ticket prices. <br/>
Air Astana plans to launch LCC FlyArystan in the first half of 2019, in response to a rapidly changing local and regional airline business environment. The management team will be led by Tim Jordan, who has more than 15 years senior LCC management experience at Cebu Pacific and Virgin Blue. The low-cost unit will begin operations with a fleet of Airbus A320s. Air Astana president & CE Peter Foster said that 4 A320s—configured in an 180-seat all-economy class—will be transferred from the Air Astana fleet. “Looking to the future, we would expect a combination of more A320 classics and possibly neos. The fleet is expected to grow to at least to 15 aircraft by 2022. This is a conservative estimate,” he said. He said FlyArystan will offer low airfares—approximately half of what Air Astana offers—on mostly domestic routes. <br/>