The US FAA needs to improve its oversight to address maintenance issues at Allegiant Air, according to a report seen by Reuters Tuesday. The US DoT's Inspector General, in a 31-page report sent to Capitol Hill Tuesday but not yet made public, said FAA inspectors since 2011 have not "consistently documented risks associated with 36 Allegiant Air in-flight engine shutdowns for its MD-80 fleet or correctly assessed the root cause of maintenance issues." Allegiant said it had not yet see the report. The FAA said that it agreed with 8 of the 9 recommendations made by the inspector general and partially agreed with the remaining one. The inspector general opened the probe in May 2018 after a "series of in-flight engine shutdowns, aborted take-offs, and unscheduled landings". <br/>
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Southwest Airlines said Tuesday it was cancelling nearly double the number of flights through April than it has done since the Boeing 737 MAX grounding last March amid uncertainty over when the aircraft will fly again. Last week, the US FAA said it would not approve the aircraft's return to service before 2020, prompting Boeing to freeze 737 production. The carrier said Tuesday it was removing roughly 300 weekday flights from its total peak-day schedule of more than 4,000 daily flights through April 13, nearly double the amount it had cancelled through March 6. Southwest, the world's largest Boeing 737 MAX operator, had 34 MAX planes in its fleet when they were grounded in March and was hoping to take delivery of up to 41 more jets by early next year. <br/>
America’s newest airline does not yet have a name, or any airplanes. But it now has a headquarters. David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of US$3.2m and create nearly 400 jobs over the next 5 years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1m over 5 years. “There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s CCO said. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.” The startup has begun hiring for jobs in Salt Lake, and Johnson has moved there. But the airline is not yet sharing many more details about its plans. <br/>
Icelandair Group’s pessimism over the Boeing 737 Max’s return to service has deepened, with the company disclosing that it does not expect to re-introduce the twinjet before May next year. The company says the delay will have “minimum impact” on Icelandair’s flight schedule and its passengers, because the carrier has been coping without the Max for several months since the type was grounded in March. Icelandair will retain more Boeing 757s in its fleet over the course of 2020 than it had originally planned, in order to make up for the shortfall in Max capacity. It is also leasing a pair of 737-800s, to support its operations from next spring, and is “working on” leasing a third aircraft. Icelandair Group said is continuing discussions with Boeing over compensation for financial losses caused by the Max delays. <br/>