star

How United decided to lead on vaccine mandates

Scott Kirby is the CEO of United, a role he assumed in early 2020, just a couple of months after Covid-19 began sweeping across the country. Kirby told the company’s 67,000 US employees last summer that they would lose their jobs if they weren’t vaccinated by Sept. 27. About 99.7% of United’s workforce is now vaccinated. In a recent interview, Kirby discusses how and why he decided to make United the first US airline — and one of the first large corporations — to impose a vaccine mandate. Story is a lightly edited transcript of conversation.<br/>

Air Canada agrees to $4.5m settlement over refunds

Air Canada has agreed with US aviation regulators to pay $4.5 million to settle charges that it didn’t properly give refunds to U.S. travelers when it canceled or altered flights during the Covid-19 pandemic. The settlement between the airline and US DoT -- which must be approved by an administration law judge -- would be the largest ever by the agency’s Office of Aviation Consumer Protection. The airline would pay $2.5m to passengers, and the remaining $2m would go to the US Treasury, the agency said Monday. “Today, the US Department of Transportation’s OACP is holding airlines accountable by ensuring that they treat passengers fairly when flights are significantly changed or canceled,” DOT Deputy Secretary Polly Trottenberg said. The penalty, which would settle civil allegations brought in June, is for Air Canada’s “extreme delays in providing refunds to thousands of consumers for flights to or from the United States,” the agency said. “Air Canada and the DOT have agreed to settle this matter without prejudice or any finding of wrongdoing,” said Peter Fitzpatrick, a spokesman for the airline. “This agreement was entered into to avoid protracted litigation as Air Canada focuses, together with all stakeholders, on rebuilding following the pandemic.”<br/>

Panama's Copa Airlines accelerates B737 MAX deliveries

Copa Airlines has announced in its quarterly earnings report that it has agreed with Boeing to accelerate the delivery of twelve B737-9s by as much as three years. The Panamanian airline said two of the dozen aircraft will be delivered in 2022 and the remaining ten between 2023 and 2025. Initially, all twelve were due in and beyond 2025. On top of thirteen B737-9s already delivered, Copa Airlines currently has 41 outstanding B737 MAX orders. While the order comprises twelve B737-8s, fourteen -9s, and fifteen -10s, the Panamanian carrier said it had flexibility in choosing the variants. It expects a further two deliveries in 2021 to end the year with fifteen -9s. Including the newly accelerated deliveries, the carrier will take seven MAX 9s in 2022. During the earnings call, CE Pedro Heilbron said that one of the upsides of the growing MAX fleet was the improved premium product. Copa Airlines' MAX 9s have 16 lie-flat business class seats, as opposed to recliner seats in the B737NGs, which have allowed the airline to increase fares for connecting flights via Panamá City Tocumen Int'l. "We have been getting a premium for the Dreams [B737 MAX business class] product. And also, I should say that our costs are better than options through other hubs or non-stop options when they are - they're usually not that many. So, we can do well, even pricing it below what was available before for a similar product," he explained.<br/>

Singapore grants approval for Korean Air-Asiana Airlines merger

Singapore's antitrust regulator recently approved Korean Air's acquisition of its domestic rival, Asiana Airlines, because regulatory authorities there do not think the merger will raise any serious issues, a top industry executive said Monday. While Singapore's approval is not crucial to the entire approval process, the green light is expected to be a plus for the acquisition, which has been postponed for two years, according to the industry sources. "Singapore contacted US-based travel agencies in Korea and asked them whether or not the Korean Air-Asiana Airlines merger would hurt fair competition. The travel agencies contacted by the regulatory authorities in Singapore responded positively, and the views have been endorsed by the Singaporean antitrust authorities," according to the executive. Singapore was one of the five countries ― including Britain, Australia, Malaysia and the Philippines ― that Korean Air voluntarily turned to for consideration. So far, Malaysia and Singapore have approved the plan, and industry sources say the decisions will positively influence the antitrust reviews currently under way in more than half of the nine countries where it is being considered. The nine regions and countries in which Korean Air's and Asiana Airline's major international destinations are located are: Korea, the United States, the European Union, China, Japan, Vietnam, Turkey, Taiwan and Thailand. The merger plan is subject to receiving approval from each of the nine countries' antitrust authorities. Due to possible monopoly risks, however, only four of them ― Taiwan, Thailand, Turkey and Vietnam ― have so far endorsed the deal, which will result in the creation of one of the world's 10 largest airlines.<br/>

Japan partial reopening prompts Asian airlines to add flights

Asian airlines are increasing the number of their international flights to meet gradually recovering demand now that Japan has reopened its border to business travelers, students and migrant workers who come over as intern trainees. After new infection numbers plummeted, the Japanese government in early November lifted its entry ban for these travelers. Although the country remains closed to tourists, airlines are gradually increasing the number of flights connecting cities elsewhere in Asia to Japan, where a severe labor crunch is developing as the population ages. ANA Holdings, the parent company of ANA, increased the number of flights connecting airports that serve Tokyo and Ho Chi Minh City. Flights between the cities increased in November to five per week, up from three. Before the COVID-19 outbreak, ANA was covering the route with seven flights per week. Vietnam Airlines, which operates code-share flights with ANA, is expanding its own flights to Japan. Japan Airlines also increased the number of flights between Narita Airport, which serves Tokyo, and Ho Chi Minh City's airport to five per week, up from four. "With the relaxation of [entry] restrictions, the number of reservations for those who wish to travel from Hanoi to Japan is increasing," a JAL representative said. "At the moment, we have enough seats available, but we will pay close attention to reservation [trends] and consider increasing capacity as necessary." Before the pandemic caused nations to close their borders, Japan was a popular destination for some migrant workers from Southeast Asian countries, who could enter the country via a technical intern-trainee program.<br/>

Air NZ cancels more than 1,000 flights to Australia over "border uncertainty"

Air New Zealand has been forced to cancel over 1000 flights between Australia and New Zealand through to 31 December, as hopes are dashed for a resumption of the trans-Tasman bubble by Christmas. The airline said that the slew of cancellations, which will affect in excess of 20,000 passengers in total, were necessary due to “uncertainty” over the resumption of quarantine-free trans-Tasman travel. It comes after New Zealand first announced the suspension of its quarantine-free travel agreement with Australia in July, which has since been extended. The trans-Tasman bubble was first implemented in April. “Now, due to recent statements by the New Zealand Government that quarantine-free travel between Australia and New Zealand is unlikely to re-commence this year, we’ve had to make the difficult decision to change our schedule,” said Air NZ Chief Customer and Sales Officer Leanne Geraghty. “This will be particularly tough news for families and friends who were hoping to catch up over Christmas. I appreciate how difficult this news will be, but our hands are tied until border restrictions ease, and we receive further clarity from the New Zealand Government.”<br/>