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New ultra-low-cost carrier, Lynx Air, will launch from Calgary

A new Canadian airline announced its planned launch Tuesday, joining an increasingly crowded field of carriers jockeying for budget-minded travellers as the country emerges from the COVID-19 pandemic. At an event at the Calgary International Airport, its new headquarters, startup Lynx Air announced its intention to begin flying sometime in 2022. Lynx, formerly known as Enerjet - a Calgary-based charter airline that announced in 2018 that it intended to transform itself into a commercial discount carrier - has some experienced aviation industry players behind it. The privately held company was founded by an investor group headed by Tim Morgan, a former senior executive at WestJet. Lynx's CE will be Merren McArthur, the former CEO of Tigerair Australia, Virgin Australia Regional Airlines and Virgin Australia Cargo. McArthur said Tuesday that Lynx will operate under the ultra-low-cost carrier model, which means passengers will be offered basic, bare-bones discount fares and then be charged extra for additional services like checked bags and cancellations. “Airfares have traditionally been high here in Canada, and we at Lynx believe there are many Canadians who can't afford to travel, or can't afford to travel as much as they want,” McArthur said. “Lynx's mission is to make air travel accessible to all.” Story has more.<br/>

Flair Airlines expands again with new service to Mexico

Edmonton-based discount carrier Flair Airlines is expanding yet again, this time launching service to Mexico. Flair — which bills itself as an ultra-low-cost carrier offering unbundled, bare-bones fares to budget-conscious travellers — announced Tuesday it will begin non-stop flights this winter to Cancun and Los Cabos, Mexico, from Vancouver, Abbotsford, Edmonton, Ottawa and Kitchener-Waterloo. “Expanding internationally is really something that’s core to our growth strategy moving forward,” said Garth Lund, Flair’s chief commercial officer. “I think there’s a lot of opportunity to bring low fares to a lot of destinations … for next winter, we’ll be looking to expand probably into other places in Mexico, and into the Caribbean.” The Mexico routes are just the latest strategic move from an airline that has been in aggressive expansion mode over the last 12 months. Flair has announced 18 new destinations since the beginning of 2021, including the start of service this spring to new US destinations like San Francisco, Nashville and Denver and Canadian destinations including Comox, BC, Regina, Montreal, Winnipeg and Saskatoon.<br/>

Nigeria’s Ibom Air signs for 10 Airbus A220s

Nigerian carrier Ibom Air has signed a firm order for 10 Airbus A220s. Ibom, which launched operations in 2019, became an A220 operator in July this year after leasing a pair of the twinjets from EgyptAir. It has now at the Dubai air show signed a deal with Airbus to acquire 10 of the type. Ibom Air Air CE Mfon Udom says: “As an organisation, we at Ibom Air are delighted with the steep growth we have achieved in just over two and a half years since we commenced operations, a growth chiefly driven by the massive embrace of our product and brand by the Nigerian domestic flying public. ”The addition of the A220 to our fleet will support our growth strategy and boost operational efficiency. It will also offer our passengers more space and enhanced cabin experience, as a value add for choosing us.”<br/>

Emirates says Boeing 777X talks 'work in progress'

Emirates has made progress in talks with Boeing on the Dubai airline's concerns over delays to the 777X jetliner but does not yet know when it will receive an aircraft it considers vital to its future growth, its president said on Tuesday. "It is work in progress; we are moving on it. I think we will probably watch very carefully how the process of certification goes over the next couple of years and then we will firm up what the delivery positions will be," Tim Clark said. Clark struck a softer tone after sharply criticising Boeing and calling for "another grown-up conversation" with the planemaker at an industry event last month. But he warned against any further surprises or "torpedoes" on the timing of the twin-engined jumbo, which is running at least two-and-a-half years behind its original schedule. "We are not moving away from that airplane at all; it is just a question of when are we going to get it," he said on the sidelines of the Dubai Airshow Tuesday. "Boeing are hopeful they will get it certified in July 2023. We will have to see how that works out. Maybe we will get more visibility in the next 9 months or a year."<br/>

India's Akasa Air orders 72 Boeing 737 MAX jets

India's Akasa Air on Tuesday placed an order for 72 Boeing 737 MAX jets, valued at nearly $9b at list prices - a deal that could help the planemaker regain lost ground in one of the world's most promising markets. The order by billionaire investor Rakesh Jhunjhunwala-backed airline comes months after India's air safety regulator allowed the country's airlines to fly the MAX jet, ending its nearly two and a half years of regulatory grounding after two fatal crashes in five months killed 346 people. Jhunjhunwala, known as "India's Warren Buffett", has teamed up with former chief executives of IndiGo, the country's biggest carrier, and Jet Airways to tap into demand for domestic air travel, which is nearing pre-pandemic levels as the country recovers from a devastating outbreak earlier this year. The low-cost airline received initial clearance from the civil aviation ministry to start operations in October and is expected to begin flying next year. "We are already witnessing a strong recovery in air travel, and we see decades of growth ahead of us," Akasa Air CE Vinay Dube said at the Dubai airshow, where the order was announced. The order by Akasa includes two variants, the 737-8 and the high-capacity 737-8-200, the companies said. Reuters reported in September that Boeing was close to winning an order for some 70 to 100 737 MAX jets from Akasa, pending separate talks on a long-term engine service deal. Boeing dominates India's wide-body market of 51 planes but fare wars and high costs have led to casualties among full-service carriers, including Kingfisher Airlines in 2012 and Jet Airways in 2019, making low cost carriers and Airbus even more dominant.<br/>

Airbus wins 28-plane A320neo order from Kuwait’s Jazeera Air

Kuwaiti carrier Jazeera Airways inked an outline order for 28 narrow-body jets from Airbus SE for the next phase of its fleet expansion. The deal, with a list price in excess of $3.5 billion before discounts, comprises 20 A320neos and eight larger A321neos, with an option to purchase five further aircraft, the companies said Tuesday at the Dubai Airshow. Jazeera already operates an all-Airbus fleet of original-generation A320s and eight A320neos, the ninth of which is due this month, extending the total to 17 planes. The new aircraft won’t come for five years, though Airbus sales chief Christian Scherer said he’ll try to accelerate deliveries if build rates allow. Jazeera, which has previously leased its aircraft, said that older planes will be replaced as the new ones arrive, extending the fleet to as many as 35 aircraft. “We believe that’s a reasonable size for a base carrier in Kuwait,” CEO Rohit Ramachandran said at a signing ceremony. “Anything more would be science fiction.” Jazeera stopped short of selecting longer-range versions of the A321neo, though Kuwait’s position in the northwest Gulf means it can already reach Western Europe, with London Heathrow flights operational and services to Manchester, Birmingham and elsewhere planned in six months. “We are lucky with the geographic location of our home base, it gives us access to the vast majority of European airports even without having an LR or an XLR,” Ramachandran said. He added that Jazeera also needs to be sure that longer trips won’t undermine its low-cost approach.<br/>

India's SpiceJet, Boeing settle 737 MAX-related claims

Indian budget airline SpiceJet said on Wednesday Boeing had agreed to settle the outstanding claims related to the grounding of its 737 MAX aircraft. "Boeing has agreed to provide certain accommodations and settle the outstanding claims related to the grounding of 737 MAX aircraft and its return to service," SpiceJet said in a filing to the domestic stock exchanges. The settlement will allow the resumption of new aircraft deliveries from SpiceJet's order of 155 MAX aircraft, the airline said, adding that it will also pave the way for inducing "efficient and younger MAX aircraft" into its fleet. SpiceJet is Boeing's biggest customer in the South Asian nation for the MAX planes. India's air safety regulator had cleared in August the 737 MAX aircraft to fly after a near two-and-a-half-year regulatory grounding following two fatal crashes in 2019.<br/>

IndiGo weighs charging fliers for checked bags as market heats up

IndiGo, one of Asia’s biggest budget carriers, is mulling charging passengers for checked-in luggage as the airline prepares for a potentially fierce price war in India’s cutthroat air travel market, which is showing signs of recovery following the worst of Covid. IndiGo, operated by InterGlobe Aviation Ltd., didn’t implement the so-called unbundling of fares in February -- just before a deadly wave of the pandemic hit the South Asian nation -- even as India’s Directorate General of Civil Aviation ruled that carriers can start offering zero baggage and no check-in baggage fares. Regulatory caps on fares and capacity related to Covid prevented IndiGo from taking a decision at the time, Chief Executive Officer Ronojoy Dutta said Tuesday. “We have been talking to the government about that,” Dutta said. “We’re waiting for everything to settle down before we lock something. IndiGo joins Go Airlines India Ltd., which is also looking to unbundle baggage charges from air tickets to position itself as an ultra-low cost carrier. IndiGo’s move to make ticket prices even cheaper will intensify competition among carriers known for driving fares so low they barely, and often don’t, cover costs. The crushing price wars have put many airlines out of business in what was one of the world’s fastest-growing aviation markets before the pandemic. IndiGo is “unlikely” to raise funds through a share sale to institutional investors as previously planned, with air travel in India recovering from the worst of Covid infections, Dutta said. India in October allowed airlines to operate at 100% pre-pandemic capacity domestically, but international flights remain suspended until at least Nov. 30.<br/>

South Korean LCCs see Q3 revenue uplift, though loss-making streak continues

Two South Korean low-cost carriers — T’way Air and Jeju Air — widened their third-quarter operating losses, despite reporting an uptick in revenue. They cited a rise in coronavirus infections in the country during the July-September quarter, among the reasons for their poorer performance. Meanwhile, compatriot Jin Air managed to trim its losses as revenue increase outpaced a rise in costs. For the three months to 30 September, Jin Air was W44.5b ($51.4m) in the red at the operating level. This compares to the W49.2b operating loss it reported in 2020. Revenue for the quarter rose 13% to W60.7b, while costs inched up 2% year on year, to W105b. With South Korea’s international borders still largely shut, domestic flying made up the bulk of Jin Air’s Q3 revenue, at 83%. The carrier flew 1.4m passengers in the quarter, 13% higher year on year, with capacity rising 9% and traffic increasing 14%. As for T’way, it posted an operating loss of W39b, widening the W31.7b loss it reported during the same period in 2020. <br/>

Bangkok Airways plunges to steep net loss after airport lease termination

Bangkok Airways significantly widened its net loss for the three months to 30 September, as it took on a hefty charge for the termination of an airport lease agreement. In its Q3 results, the carrier posted a net loss of nearly Bt7b ($213m), widening the Bt1.6b net loss it made in the same quarter last year. Bangkok Airways says the steep net loss follows the termination of a lease agreement with the Samui Airport property fund, which saw the airline pay Bt18.1b, and incur a charge of Bt5.4b. At the operating level, the airline’s losses remained nearly flat from a year ago, at Bt1.24b, compared to Bt1.25b. Revenue for the period fell 25% to Bt672b, as the airline suspended operations in mid-July for more than a month, amid a third wave of coronavirus infections across Thailand. While it resumed a number of domestic flights in September, Bangkok Airways notes that traffic remains in the doldrums: passenger numbers in the quarter fell 86% year on year to just 26,000.<br/>