The growing pessimism about global economic growth has found an unlikely victim in American Airlines Group. The carrier lost nearly one third of its market value, or about US$4.3b, over the past 30 trading days through Tuesday, amid concerns about a widespread slowdown, as well as the company’s myriad labour and operational challenges. Growth in the airline industry is typically linked strongly to the economy, with the group usually moving in tandem with gross domestic product data. Apart from the macro concerns, the impact of the Boeing crisis and lingering protests in Hong Kong have also weighed on the carriers this year. “This represents American’s second such post-merger decline, coming 5 years after the Ebola ‘crisis,’” JPMorgan analyst Jamie Baker wrote in a note to clients, adding that the decline was surprising. <br/>
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American Airlines and LATAM Airlines Group expect to submit to regulators an amendment to their joint venture application before year end, reviving a process derailed In May by a Chilean court. The carriers are removing Chile from their proposed agreement's geographic reach in response to the court's ruling, which blocked the deal on anti-competitive concerns. LATAM and American "hope" to file the amendment with regulators before the end of 2019. The carriers announced in early 2016 that they signed an agreement to establish a joint venture covering flights to Brazil, Chile, Colombia, Paraguay, Peru and Uruguay. Such arrangements involve establishing a joint business, with partners sharing revenue. Several regulatory bodies already approved the proposal and the carriers were aiming to close the deal by early 2019. <br/>
Trade union members in Hong Kong rallied Wednesday against Cathay Pacific Airways, which has fired several employees in the past 2 weeks after coming under pressure from China over their links to pro-democracy protests. Cathay's situation encapsulates the very fears that sparked the protests — that China is encroaching on the freedoms and separate legal system that Hong Kong maintains under a "one country, two systems" framework. The Hong Kong Confederation of Trade Unions said that 20 Cathay employees have been dismissed or forced to resign, including pilots, cabin crew, ground staff and managers. It called the rally after Cathay Dragon fired cabin crew union head Rebecca Sy last week. Sy says she was given no reason for her dismissal. <br/>
Restrictions on MacBook Pro laptops on flights has spread, with Qantas Airways barring some models from checked-in luggage on concern that batteries could catch fire. All 15-inch versions of Apple’s MacBook Pro must be carried in the cabin and switched off, Qantas said Wednesday. The rule went into effect Tuesday morning. Rival Virgin Australia went further Aug 26, banning all Apple laptops from checked-in luggage. The two airlines join a growing list of carriers and jurisdictions across the world cracking down on the portable computers out of concern some could self-combust. The models in question are some 15-inch MacBook Pros sold from Sept 2015 to Feb 2017. Apple issued the recall in June, saying “in a limited number of older generation 15-inch MacBook Pro units, the battery may overheat and pose a fire safety risk.” <br/>
Iberia's ground crew will go ahead with planned strikes at Barcelona El Prat Aug 30-31, trade union UGT said Wednesday, only a few hours after suggesting the stoppage could be called off. The Spanish union said earlier Wednesday it would cancel the strike to avoid delays for passengers during the peak holiday season and to facilitate ongoing talks with Iberia over working conditions. But a UGT spokesman said that this plan had collapsed after Iberia would not accept the formation of a monitoring committee by the local govt. Iberia said Wednesday evening that any monitoring committee would need to include other union groups or risk violating the existing collective bargaining agreement. <br/>