Airlines group IAG is in advanced talks with planemakers on a medium-haul fleet shake-up that may see the British Airways parent opt for Boeing and Airbus jets to update a European fleet of Airbus narrowbodies, industry sources said. IAG stunned the industry nearly three years ago when it unveiled a tentative order worth $24 billion at list prices for 200 Boeing 737 MAX at the Paris Airshow in 2019, at a time when the jet was grounded worldwide in the wake of two fatal crashes. The global outbreak of COVID-19 early the following year caused that deal - intended as a show of confidence in troubled Boeing by then IAG boss Willie Walsh - to lapse, and the airline group later started a formal contest between Boeing and Airbus. The sources said Boeing looked likely to keep a slimmed-down version of the order, potentially involving closer to 50 jets than the original blockbuster quantity of 200. The multi-national airline group also owns narrowbody operators Aer Lingus of Ireland and Spain's Iberia and Vueling. If a deal is confirmed in ongoing negotiations, Boeing's MAX is seen most likely to be deployed at Vueling and future low-cost operations at London Gatwick. IAG also has options to order additional Airbus narrowbody aircraft, inherited from earlier purchases. But firming up new Airbus orders has hit a hurdle as the European planemaker struggles to find available production slots after taking a lead over Boeing in the market for single-aisle jets.<br/>
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Malaysia Airlines has deepened cooperation with fellow Oneworld alliance member Qatar Airways, with the two carriers partnering in areas such as cargo and airline operations. The two airlines have signed a memorandum of understanding to “[work] closely together across multiple areas of the business to offer an unrivalled and range of value-added services to passengers”. The pair already place their code on each other’s flights, covering regions in Europe, Africa and the Americas, as well as Southeast Asia. The two airlines first entered into a codesharing partnership in 2004. “[The] two Oneworld partners have also agreed to maximise synergies in other areas of the business such as air cargo, operations or commercial services, that will create a game-changing innovative synergy for both carriers in leading the new travel demand ahead,” states Malaysia Airlines. Airline chief Izham Ismail says: “[It] underscores the commitment of both airlines to provide passengers with safer, and increased choice of flights, wider destinations and greater flexibility on top of the excellent service hospitality throughout their travels with us.” Calling the partnership a “significant moment” for both carriers, Qatar Airways chief Akbar Al Baker says: “This partnership will serve to link both our networks and allow us to work together across different aspects of the business therefore creating exciting opportunities for our joint passengers, as well as for our airlines.” Adds Al Baker: “As we move forwards a post-pandemic world, successful business is driven by strong partnerships, and this close cooperation with Malaysia Airlines is a firm example of how symbiotic international partnerships can pave way to industry recovery.” <br/>
The reopening of Australia's internal and external borders has significantly boosted the outlook for Qantas, although the Omicron COVID-19 outbreak has set back its business recovery plans by around six months. Qantas on Thursday posted a A$1.28b ($925.57m) H1 underlying loss before tax in the six months ended Dec. 31, steeper than the A$1.03b loss a year earlier. The airline also flagged a A$650m earnings hit from Omicron in the second half. Preparing for a surge in demand as the earlier Delta variant wave receded, Qantas had by early December recalled about 11,000 staff who had been idled without pay during the pandemic. But the surprise arrival of the Omicron variant, which pushed Australian COVID cases to record levels, dented demand and forced the airline to cut domestic and international capacity plans for the current quarter by around one third. "The impact of Omicron has pushed everything out by around six months from where we thought we would be," Chief Executive Alan Joyce told reporters, adding the earlier-than-needed ramp up of staff and equipment would add A$180m to costs in the second half. Qantas is also facing inflationary pressures from suppliers and rising fuel prices, though 90% of its fuel cost is hedged in the second half and its cost-cutting programme is on track, CFO Vanessa Hudson said. Qantas shares were around 2% lower in early trading, in line with the broader market (.AXJO), with broker Jefferies saying the result was solid given the difficult period. The airline said it would run 68% of its pre-COVID domestic capacity in the Q3, rising to 90% to 100% in the fourth quarter. International capacity would be around 22% of pre-COVID levels in Q3, doubling to 44% in Q4. Australia on Monday opened its international border to fully vaccinated travellers from all countries, the last step in a staged border opening that began in November. Internally, Western Australia will be the final state to open on March 3. <br/>