unaligned

Malaysia’s AirAsia X reported a sharply wider Q3 net loss on Wednesday, the airline’s second consecutive quarter in the red due to higher fuel prices. Volatile fuel costs have been a significant pressure on the long-haul budget offshoot of AirAsia Group, and analysts expect that will continue to be a challenge for the airline’s expansion plans. The average cost of fuel in the quarter was 40% higher than in the same period a year earlier, the airline said. The airline said in a bourse filing it was working to mitigate the increase by boosting ancillary revenue and capacity. “A new fares structure has been implemented and the company is actively driving up ancillary revenue, which will ultimately improve yields, while Management also remains focused on monitoring operating expenses to achieve better cost efficiencies to offset uncertainty in fuel price,” it said. Group CEO Nadda Buranasiri said the airline also expected provisions for doubtful debts to put short-term pressure on full-year earnings. AirAsia X posted a quarterly loss of 197.5m ringgit ($47.10m), compared with a net loss of 43.3m ringgit in July-September last year. Revenue fell 4.2% to 1.08b ringgit on lower fares. AirAsia X said its average passenger fare reduced 5% compared with a year earlier. <br/>

A Boeing 737 jet struck a light almost 100 feet beyond the end of a runway and just 14 inches high after taking off with insufficient power when its pilots entered the incorrect air-temperature into a computer, according to an air accident bulletin. The jet, operated by Canada’s Sunwing Airlines, avoided crashing only because of the “benign nature” of the area beyond the runway at Belfast International airport in Northern Ireland and the low elevation of surrounding terrain, the UK Air Accident Investigation Branch said in the report Wednesday. The 737 limped into the air with just 60% of the usual thrust after the Sunwing crew entered a temperature of minus 52 Celsius into the plane’s flight management system, when the correct reading on July 21 this year was 16 degrees, the AAIB said. The computer reined back the engines because colder air requires less acceleration to achieve the same lift. The pilots didn’t notice the low takeoff speed until the 737 was approaching the end of the runway, and after takeoff continued the flight to Corfu, Greece, as planned, the AAIB said. The light struck by one of the aircraft’s tires was later found crushed on the ground having been knocked from its mounting. The AAIB recommended that the US FAA order upgrades to software that would crosscheck the outside air temperature, where required, as well as the necessary hardware<br/>

Ryanair has further stirred up anger among some of its pilots as it starts to recruit for a UK subsidiary established to protect the company against a no-deal Brexit. Pilots say the salaries offered at the subsidiary undermine Ryanair’s claims about how much they earn, which the airline insists would not be lower than the parent group and can be up to E200,000. Captains will receive basic pay of GBP105,000 and first officers GBP55,000 as part of “a small number” of secondments to Ryanair UK starting in January 2019. There are 3,000 Ryanair pilots at its 14 UK bases. “There will be a lot of unhappy guys. Pay is well below what Ryanair keep banging on about (E200,000),” one Ryanair pilot said. Ryanair says on its corporate recruitment website that it offers “industry leading pay of up to E200,000 pa [per annum] as captain” and reiterated that figure in response to a Financial Times question. Brian Strutton, general secretary of the British Airline Pilots Association (Balpa), added: “It is unclear why Ryanair thinks it needs to second existing UK pilots into its new UK [subsidiary]. This is potentially confusing, inflexible and bureaucratic.”<br/>

Ryanair enjoyed the busiest day in history for its website this week and has not seen any impact on demand from British or European consumers due to Brexit, it’s CMO said Wednesday. Kenny Jacobs said that the group was not interested in buying Flybe and expects the airline to be broken up after it said it was in talks with potential buyers.<br/>

Hainan Airlines Holding, the flagship aviation unit of Chinese conglomerate HNA Group, is to sell a big chunk of its stake in an unprofitable local carrier to the government of Urumqi, in northwest China. The mainland’s fourth biggest airline has agreed to sell 40 per cent of its shares in Urumqi Air to a financing vehicle controlled by the city’s government, according to an exchange filing on Wednesday. The agreement will boost the Urumqi government’s stake in the local carrier to 70%, while Hainan Airlines holds the remaining 30%. Hainan Airlines said the transaction would be of long-term benefit to the local carrier based in Urumqi, the capital of the Xinjiang autonomous region. The sale is part of a major asset-restructuring programme involving Hainan Airlines and its embattled parent HNA Group, which was until recently one of the mainland’s most aggressive overseas buyers. In May, the Hainan-based airline, in which US billionaire George Soros was among early investors, said control of the Shanghai-listed company could change hands as the parent revamped its assets. Hainan Airlines did not reveal the price for the stake, but said it could be paid for by cash, tangible assets or equities.<br/>

Trinidad and Tobago's flag carrier Caribbean Airlines will renew its fleet with the Boeing 737 Max 8, and plans to take delivery of 12 aircraft in the coming years. The 12 737 Max 8s will replace the state-owned carrier's fleet of 12 737-800s, says Boeing. It is not immediately clear if the commitment for the 12 737 Max 8s is a firm order. Boeing says Caribbean Airlines "commemorated the selection" of the Max during a ceremony in Port of Spain attended by Trinidad and Tobago's prime minister among others. "The 737 Max allows us to continue offering a safe and comfortable experience for our passengers, while significantly improving fuel efficiency and environmental performance," says Caribbean Airlines CE Garvin Medera. The 737 Max 8 will seat up to 160 passengers in Caribbean's three-class configuration.<br/>

Swiss regulators have grounded two remaining Junkers Ju 52s operated by Ju-Air over airworthiness concerns, three months after a fatal accident involving another of its aircraft. The Swiss civil aviation office has ordered the certificates of airworthiness for the tri-motored aircraft to be surrendered by 21 November. None of the 20 occupants on board a Ju-Air Ju 52 survived when, during a 4 August flight, the aircraft’s nose dropped as it entered a left turn, and it spiralled vertically into terrain. Swiss accident investigation authority SUST has yet to determine the cause of the crash, but inspection of the wreckage has revealed areas of concern regarding the aircraft’s structural condition. It stresses that the deficiencies are “not related” to the accident, and there is no evidence of a pre-existing technical problem which might have caused the crash. But it states that Ju-Air’s other two Ju 52s are of similar age to the aircraft lost, and underwent similar operations. “It is to be expected that comparable deficiencies, which could compromise aviation safety, are also present in [these other two aircraft],” adds SUST. Inspection of the HB-HOT debris found “significant corrosion” in spars, hinges, wing components and cabin floor parts. <br/>