unaligned

Ryanair will cut flights next summer and potentially close some European bases as a result of the grounding of Boeing’s 737 Max jets after two fatal crashes. The carrier said the delay to the delivery of new aircraft would result in it receiving almost half the number of jets — 30 compared with 58 — it was expecting by next May. The shortfall has led the airline to reduce the number of passengers it expects to carry in the year to March 2021 to 157m, from the 162m previously forecast. The company said it would also need to make some cutbacks, including the possible closure of some of its bases for summer 2020. Michael O’Leary, Ryanair’s CE, said the company was starting a series of discussions with its airports to determine which of its underperforming or lossmaking bases would take a hit from November 2019. Ryanair said it expected the 737 Max 8, which has been grounded after two crashes in which a total of 346 people died, to return to service before the end of 2019 — although that could be delayed. Boeing hopes to lodge an application to regulators to allow the aircraft to fly again by September, with a return to service shortly after. However, O’Leary said “it would be prudent to plan for that date to slip by some months, possibly as late as December”.<br/>

Ryanair remains confident in the Boeing 737 MAX and believes the plane will be “warmly welcomed” by customers, CE Michael O’Leary said Tuesday after he was forced to half the airline’s 2020 growth plans due to the plane’s grounding. “While it is disappointing that we have delays, while it is disappointing that the growth for next year will be slightly slower than we had originally planned, we remain confident in the aircraft. We still think it is a great product,” O’Leary said. “As soon as we can reasonably organize these deliveries with Boeing we would intend to take all of the 135 firm aircraft we have ordered over the next five years.” <br/>

Ryanair will not be marketing the Boeing 737 Max differently to the other aircraft in its fleet, its CE confirmed Tuesday. During a call with analysts after announcing slower growth plans for 2020 as a result of the Max grounding, Michael O'Leary repeatedly referred to the aircraft as the "Max". "We will not be separately designating the Max aircraft from the NGs," he says. "It's impossible because we do our aircraft allocations overnight, so we have no idea tomorrow or next month which flight will be operated by an NG or a 737 Max." He does not expect there to be a customer perception issue or lack of confidence in the aircraft once it is back flying. He cites the example of the 787, which was grounded for a short while over lithium-battery issues. "Once the return to service is successfully managed, I think the Ryanair aircraft will be warmly welcomed by our passengers who fly on them, in much the same way that the passengers love flying the 787 and it has become an incredibly popular aircraft," O'Leary predicts. In terms of pilot training, he says the expectation at the moment is that pilots will require additional computer-based training, with simulator time to come as part of the regular six-monthly simulator checks, although he adds that this could still change.<br/>

Lenders to Jet Airwayswill open bids to sell the bankrupt airline on July 20, as they look to recover about 85b rupees ($1.24b) of loans, two sources familiar with the matter said on Tuesday. Last month, Jet’s creditors, led by State Bank of India, took the airline to the bankruptcy court after failing to agree on a revival plan. The airline, grounded since April 17, was admitted to the Mumbai bench of the National Company Law Tribunal on June 20. Since then, the court has directed the bankruptcy resolution firm Grant Thornton, which liaises with creditors on behalf of the benkrupt firm, to complete the recovery process within 90 days instead of the 180 days that is typically awarded. The bankers are also considering a request to provide interim funding of $10m to pay some employee, legal, compliance, operational and maintenance costs, among other things, said one of the sources, who was present at the first meeting of the core committee of creditors. The Expression of Interest window to gauge buyer interest in the airline will open next Saturday and candidates should be shortlisted by early August, according to one of the sources.<br/>

Rakesh Gangwal, the co-founder of IndiGo, said he won’t sell his shareholding in India’s largest airline and will maintain his stake amid a feud with his partner Rahul Bhatia. “I am here for the long haul,” said Gangwal, who has accused Bhatia of corporate governance lapses. “I have no desire to sell my stake or raise my stake.” Gangwal, teamed up with Bhatia -- a former airline sales agent -- to create IndiGo in 2005, which quickly outpaced rivals to control almost half of the local market, and made both the founders billionaires. Once the chief executive officer at US Airways, Gangwal and his affiliates, own 37% of InterGlobe Aviation, which operates IndiGo, while his partner’s company holds a little more at 38%. The primary reason for the fight is the controlling rights held by Bhatia which Gangwal alleges allows his partner to push through related-party transactions in violation of rules. Bhatia’s firm, which has interest in a chain of hotels across India, has said all transactions are executed at an arms’ length basis and in a transparent manner. “IndiGo has become too big and too critical a company for the country. It is bigger than me, it is bigger than Rahul Bhatia,” Gangwal said. “I am focusing on governance issues that have gone awry in this company and I am not seeking any additional control in the company.”<br/>

Emirates is to start flights to Mexico with a stopover in Spain, a so-called fifth freedom flight that could anger critics and rival airlines in the United States and Europe. The Dubai state-owned carrier said Tuesday it would start daily flights to Mexico City International Airport via Barcelona on Dec. 9, the airline’s first service to Mexico. “Due to the high altitude of Mexico City airport, it is not possible to operate a non-stop flight from Dubai, and Barcelona was a natural choice for a stopover, Emirates President Tim Clark said. He said the Mexico City-Barcelona route had long been neglected by other airlines and remained underserved despite the strong customer demand. Aeromexico operates direct flights between the two cities. Emirates’ use of fifth freedom rights that allow an airline to fly between foreign countries as a part of services to and from its home country has drawn criticism in the past. Mexico’s tourism minister Miguel Torruco Marqués said the country supported the Emirates service. US and European competitors have accused Emirates and other Gulf carriers of having an unfair advantage through state subsidies. The Gulf carriers deny the accusations.<br/>