Jetstar is cutting domestic capacity by around 10% in January and weighing the sale of 3 Boeing 787-8 jets to counter industrial action by its pilots that the carrier expects will cost it up to A$25m (US$17m). Members of Jetstar's main pilot union made two 4-hour work stoppages Dec 14 and Dec 15 following a failure to agree a pay deal with management. The union also has a range of lower-level bans in place until Friday but has ruled out taking action over the Christmas and New Year holiday periods. The carrier said Monday the financial impact of disruptions by pilots and ground staff in December and January was estimated to be around $20m to $25m and had led it to do a broader review of its fleet and network, including its 787-8s. <br/>
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Wizz Air will be expanding into Armenia with new flights from Vilnius and Vienna to Zvartnots International in Yerevan, the airline said Monday. Wizz Air said it expected to start flying the 2 twice-weekly routes in April 2020. Thursday, the carrier said it intended to create a subsidiary airline based in Abu Dhabi, which it expects to launch in the second half of next year. Wizz Air follows Ryanair, which announced 4 new twice-weekly routes in October, with flights from Yerevan to Milan Bergamo and Rome Ciampino expected to start in January. “We have put a great effort in decreasing costs for airlines operating in Armenia,” Tatevik Revazian, chair of the Civil Aviation Committee of Armenia, said. <br/>
Taiwan’s Far Eastern Air Transport (FAT) rescinded last week’s closure notice but is subject to punitive action from the CAA. Chairman Chang Kang-wei has suggested that the notice was mistakenly issued by airline executives after he was absent for 15 days. “The company is not in any arrears, including salaries. Also, we have no intention to close the business,” he said. Chang is optimistic that FAT would resume operations soon as it is due to receive fresh capital. “Over the next two weeks, investor funds will fall into place, and there is an advance of approximately US$33.1m.” Meanwhile, the carrier’s operations remain suspended as CAA deliberates punitive action. Local media reports that the carrier’s fate will be determined by a transport ministry ruling and it can appeal its case before Dec 18. <br/>
Turkish carrier AtlasGlobal is preparing to restore services, after re-opening its reservations system after nearly a month-long suspension. AtlasGlobal temporarily halted services Nov 26 after admitting to financial difficulties. But it states that the booking engine has been re-opened and that it will restore flights from the morning of Dec 21. Tickets for flights during the period of suspension were “put on hold”, says the carrier, and it is inviting passengers to contact the airline or travel agencies to make changes. AtlasGlobal has not indicated the reason for its ability to resume services. It has not disclosed whether, or from what source, it has received any financial assistance. <br/>
Hong Kong Airlines is not out of the woods yet. Two weeks after it received a cash injection from its main shareholder HNA Group, the airline reportedly saw 7 of its aircraft impounded by the Hong Kong Airport Authority as securities. The carrier owes payment for various charges, including aircraft parking fees, take-off and landing fees and the rent of commercial infrastructures such as VIP lounge areas and airport counters. Media reports suggest that the carrier faced a loss of US$383m in 2018. To mitigate the damages, it has been adjusting its network by closing routes and is now expected to end its long-haul operations in Feb 2020. Due to the reduced operations, the detained aircraft had not been used for passenger transport in recent months, according to the AAHK. <br/>
Virgin Atlantic is considering postponing the retirement of its remaining Airbus A340s because of “ongoing supply issues” with the engines on its Rolls-Royce powered Boeing 787s. In July 2019, a Virgin Atlantic spokeswoman said the airline planned to end its Airbus A340 operations by year-end. In a Dec 16 update, a Virgin spokeswoman said, “While no decisions have been made, due to ongoing supply issues with 787 Rolls-Royce engines, our A340-600s may remain flying a little longer than planned.” She added that aircraft-retirement time lines are always “subject to change,” giving fleet flexibility. Virgin Atlantic has operated A340s (-300 and -600 variants) since July 2002; however, these aircraft are being replaced by more fuel-efficient A350-1000s. <br/>