Boeing made mistakes with its 737 MAX planes that need to be addressed, Southwest Airlines CE Gary Kelly said Wednesday, but he said he is still hopeful that the jets will return to service in the US summer. Southwest, which only flies 737s and is the world's largest MAX operator, has bet its growth strategy on the fuel-efficient, longer-range MAX, which was grounded worldwide in March. As a result, Southwest has canceled 160 daily flights through Aug 5, hitting revenue and costs, and putting its growth plans on hold. The carrier launched service to Hawaii earlier this year but has had to defer flying there from San Diego and Sacramento because of the MAX groundings. Asked by a shareholder whether he was seeking compensation from Boeing, Kelly said: "No one is happy with the situation. All of our growth is with the MAX." <br/>
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Southwest Airlines says its weeks-old inter-island service in Hawaii is performing "extraordinarily well", though the carrier's plan to ramp up flights in the Aloha State remains on hold with the grounding of its Boeing 737 Max fleet. "Those flights are doing extraordinarily well," Southwest CE Gary Kelly said. The low-cost carrier, which began flights to Hawaii from California in March, launched inter-island service April 28 with 4-times-daily service between Honolulu and Kahului. May 12, it began flights between Honolulu and Kona. The carrier's intra-Hawaii move introduces new competition into a market heavily dominated by Hawaiian Airlines. Hawaiian held a 98% share of the inter-island market in March before Southwest's entry. This share will shrink to 87% in June, while Southwest will hold just under a 10% share. <br/>
Bangkok Airways posted a 22% decline in its Q1 operating profit to THB870m (US$27.6m) as expenses rose faster than revenue. Total revenue for the quarter ended March 31 was static at THB7.79b. Revenue from the airline and airport segments all saw declines, while revenue from the airport-related services and other businesses posted double digit growth. RPKs fell 3.2% despite a 0.8% decline in ASKs. Overall load factor fell 1.8 percentage points to 74.6%, as loads on domestic flights fell while international load factor remained steady. While passenger yield per kilometre was down 1.5% to THB4.72, RASK was up 1.8%, and CASK rose 1.1%. Total expenses were up 3.6% to THB6.92b, as higher fuel, maintenance and personnel expenditure took a hit on the carrier. <br/>
Low-cost airlines, the pioneers of brief discomfort at bargain prices, have struggled to master long-haul flights. Now one of the world’s most successful budget carriers is considering cut-price business class seats as a way into the Europe-Asia market. IndiGo, which currently flies as far as Istanbul, is mapping out an ambitious long-distance network. The airline aims to start 1-stop trips further into Europe within 6 months, CE Ronojoy Dutta said. IndiGo has captured almost half the Indian market in just over a decade by offering cheap, punctual flights -- and charging extra for almost anything else. Dutta’s long-haul plans are forcing a product overhaul to help passengers endure longer flights and he’s considering everything from extra snacks to a brand-new business class. <br/>
LuxairGroup has posted a E12.5m (US$14m) full-year net profit, up 32% year-over-year, but president and CE Adrien Ney has warned of a “sharp decrease” for 2019 because the group faces “enormous pressure” in a complicated environment. “We managed to increase all our activities in 2018…but operating growth and profitability no longer go hand in hand, due to a sharp rise in costs and pressure on profit margins,” Ney said. He went on to describe LuxairGroup as a strong company, with a sound balance sheet, adding: “We know how to overcome these difficulties, and despite a sharp decrease forecasted for 2019, I am confident about the future.” In 2018, LuxairGroup generated a E592.7m turnover, up 10.7% on 2017. However, group operating profits plummeted from E2m to E764,000. <br/>
AirAsia and AirAsia X are seeking a court order to compel Malaysian Aviation Commission (MAVCOM) to adjudicate their long-running dispute with Malaysia Airports Holdings (MAHB). The two airlines have filed a judicial review application against MAVCOM’s decision not to mediate the dispute with the airport operator, arguing that it "has a statutory duty to decide on the dispute once mediation between parties has failed, or is deemed to have failed". AirAsia and its long-haul sister carrier have been pushing for MAVCOM to mediate a MYR480m (US$115m) claim against MAHB relating to economic losses and poor service levels at the KLIA2 terminal it operates from at Kuala Lumpur International airport. AirAsia Group CE Tony Fernandes has repeatedly complained about high charges and poor infrastructure at the KLIA2 terminal. <br/>