Norwegian Air posted smaller-than-expected passenger growth in December and additional fuel hedging losses, but earned more money from each traveller, its monthly traffic report showed Monday. Norwegian, which has been courted by British Airways owner IAG, has rapidly expanded its transatlantic business in recent years but recently announced plans to cut costs in a bid to turn around its loss-making operations. It expanded capacity in December by 34% year on year but revenue-generating passenger kilometres increased by only 24%, lagging a forecast of 32.9% in a Reuters poll. While the recent fall in crude oil prices could bring down fuel costs, the company will first book substantial losses from hedging positions it entered into at higher prices. For the October-December quarter, Norwegian Air estimated an unrealised loss from fuel hedging of US$232m, up from a preliminary October-November loss reported last month of US$1.46b. The airline’s load factor fell sharply to 78.6% for the month, lagging a forecast of 82.6% and down from 84.6% a year earlier. “The company has made considerable investments this year and will now enter a period of slower growth. We have adjusted and optimised our route portfolio and the capacity going forward. We have also made seasonal adjustments for the winter,” CEO Bjoern Kjos said. “We have launched a series of cost-reduction measures to boost our financials in 2019 which will have an immediate and continued positive influence throughout the year.” <br/>
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Long-haul LCC Norwegian said it has been unable to service a Boeing 737 MAX 8 that landed in Iran more than three weeks ago because US sanctions on the country made it difficult to obtain the required spare part. The aircraft diverted to Shiraz in western Iran Dec. 14 after developing an engine-related problem during a flight from Dubai to Oslo, the airline said. A replacement aircraft was dispatched to continue the journey to Norway and the 737 has remained in Iran. “There’s a technical issue with the aircraft that requires a new part,” a Norwegian spokesman said. “Our technicians have been in [to Iran] to investigate, but due to sanctions, that has caused a delay in getting the aircraft. We are working on multiple options to get the aircraft back into service but have no definite timeline for that as yet.”<br/>
Debt-laden Jet Airways India is trying to renegotiate contracts with its vendors as lenders demand a revival plan by month-end from India’s second-largest airline by passengers, according to people with knowledge of the discussions. The Naresh Goyal-led airline is in talks to defer or reduce payments to vendors including aircraft lessors and those providing engineering, spare parts, credit card and airport services, said one of the people, who asked not to be identified as the discussions aren’t public. Lenders have said any short-term loan to keep the carrier afloat would be based on the plan proposed by Jet Airways and its equity partner Etihad Airways, according to the people. The beleaguered Indian carrier missed an interest and principal repayment at the end of last year, giving it about 90 days to clear the dues and avoid being declared a non-performing asset. State Bank of India, the nation’s largest lender, is hosting another round of meetings with the Jet Airways management and vendors on Tuesday to find common ground, the people familiar said. “Jet Airways remains optimistic about outcomes with regard to discussions with its lenders,” the company said on Monday. “The talks are progressing well and we hope to reach a positive resolution at the earliest.”<br/>
A SpiceJet Boeing 737 Max 8 suffered an engine issue en-route to Delhi on 6 January. The Indian low-cost carrier says that the aircraft was operating flight SG32 from Hong Kong, when the flight crew noticed a low fuel warning for its number one engine. The crew diverted the flight to Varanasi where it landed without incident. SpiceJet adds that an inspection found a fuel control value had malfunctioned and is being replaced. Aircraft tracking sites identify the aircraft as bearing the registration VT-MAX, which was built in 2018 and is owned by ICBC Leasing.<br/>
Aer Lingus plans a rebrand this year that is likely to cost the Irish airline less than E2m. The Irish carrier, which is part of the Willie Walsh-led International Consolidated Airlines Group, will later this year begin taking delivery of the nine A321LR aircraft that it has ordered from Airbus. It is also planning an extensive rebrand involving some changes to its shamrock logo, aircraft livery and uniforms. Aer Lingus is due to give details of the changes next week. While sources estimate that such an extensive rebrand could cost up to E20m to complete, including repainting its fleet, it is understood that it will cost Aer Lingus less than E2m. Repainting the airline’s 50-odd aircraft would be the most expensive element of the exercise. However, the new A321LRs will come in the new livery, while the others will be repainted as this falls due to be done as part of their normal maintenance schedule, so Aer Lingus would be paying for this work as a matter of course. Safety rules require aircraft to be repainted regularly in order to protect them from corrosion and the elements.<br/>
Taiwanese start-up Starlux Airlines aims to receive its air operator’s certificate in Q4 this year, and to launch operations thereafter in January 2020. The carrier said that it expects to take delivery of its first aircraft, an Airbus A321, in October. It will have three jets when it launches operations. It has not determined its first destination, although it has said that its network will initially focus on points in Northeast and Southeast Asia. “Everything is progressing as planned,” the airline said, adding that it is working on hiring cabin crew and pilot training. The airline has signed for the lease of 10 A321s, and has also committed to taking 17 A350s, including the -1000 variant, giving it a fleet of 27 aircraft in 2024. Its first A350 will be delivered in Q4 of 2021. It is positioning itself as a premium carrier, focusing on “safety, comfort and convenience”. Starlux was founded by former EVA Air chairman Chang Kuo-wei, who was ousted from the airline shortly after the death of his father, the founder of Evergreen Group, in 2016.<br/>
Emirates Airline opened a lounge at Rome’s Leonardo da Vinci-Fiumicino Airport in late December 2018, its 42nd dedicated lounge. Emirates said its lounge network represents a total investment of more than $350m. “The new [Rome] lounge represents an investment of over $4.5m by Emirates and is an integral part of our focus to provide our premium and loyal customers with the highest levels of comfort and convenience,” Emirates divisional SVP-airport services Mohammed Mattar said. The Rome Fiumicino lounge is located in Terminal 3, Level 2, close to gates E22-E24. The facility offers direct boarding. It has nearly 950 sq m of floor space and seats 162 customers.<br/>
Hong Kong Airlines has deplored as “untrue and groundless speculation” recent news reports that it may be close to ceasing operations and seeking liquidation. “The company has been and is continuing to operate as normal. We remain committed to offering our best service to customers who have chosen to support and fly with us,” the airline said in a Saturday statement. “We reserve the right to take legal action against those who deliberately create these rumours.” Recent news reports say that travel insurer Blue Cross Asia-Pacific Insurance has stopped offering coverage against the possibility of Hong Kong Airlines collapsing in its policies due to “news of Hong Kong Airlines published by media recently”. Last month, the carrier also put out a statement reassuring passengers that the resignations of co-chairman Zhang Kui and vice-chairman Tang King Shing had not affected its operations. It added that it had an extraordinary 2018 carrying more than 7.64m passengers and that it was projected to exceed its revenue target. It would not however confirm reports that its CFO Jacky Lui has also left the airline. <br/>