Amid a broad surge in regional pilot pay, Republic Airways pilots represented by the Teamsters Local 357 union will receive a big rate increase. Under a new collective bargaining agreement, first officers will see an increase of 70% to 90%, while new first officers will receive a 94% raise, the Teamsters Local 357 said on 12 October. Captains will receive up to a 54% raise. The rate increases are permanent, with no snap-back provisions, the union says. The agreement, which has been under negotiation since January, also includes improved retirement benefits. Calling the agreement a “major victory for pilots at Republic Airways”, Sean O’Brien, general president of the Teamsters, adds that the contract “reflects the true value of these pilots”. The wage boost for Republic pilots is the latest win for US regional airline cockpit crew. In recent months, pilot union Air Line Pilots Association, International (ALPA) has won pay gains for thousands of its pilots at regional carriers such as Mesa Airlines, CommutAir, Piedmont Airlines, PSA Airlines and Envoy Air. Higher pilot pay – largely driven by the USA’s acute pilot shortage – has been one of several factors pressuring regional airlines struggling to recover from the pandemic-related slump in air travel. Several airline executives who attended last month’s Regional Airline Association (RAA) leaders’ conference in Washington, DC, said that newly negotiated pay rates may be unsustainable. <br/>
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US aviation company Surf Air Mobility has secured $450m in financing over six years from Jetstream Aviation Capital to fund the planned growth of its fleet of turboprop aircraft. Under the agreement, Surf will have access to the financing for six years for both new and used Cessna Caravans and Pilatus PC-12 single-engine turboprops, Surf said on 12 October. Each aircraft acquisition will be subject to separate binding sale, purchase and lease agreements. “This agreement will enable Surf Air Mobility to grow its fleet to meet route expansion plans and customer demand as it seeks to expand its regional air travel footprint and sustainable flying solutions,” Surf says. Los Angeles-headquartered Surf Air offers members charter flights on turboprop aircraft operated by partner companies. The company also develops hybrid-electric powertrain technology to “reduce direct operating costs and emissions from regional air travel”, Surf says. Surf is seeking to scale operations using Cessna Caravans modified with its hybrid-electric powertrains. “We believe the customized aircraft leasing structure from Jetstream will provide us a capital-efficient way to more rapidly expand our operations at the scale necessary for a future when electrified aircraft unlock the latent demand for convenient, affordable regional travel on new routes across the US,” says Surf founder Sudhin Shahani. <br/>
US fractional business-aircraft ownership company Flexjet has jumped on the go-public bandwagon, revealing plans to sell public shares by merging with a “special purpose acquisition company” (SPAC). Cleveland-based Flexjet intends to merge with public firm Horizon Acquisition in the second quarter of 2023, emerging as a public company valued at $2.6b, it said on 11 October. Flexjet says proceeds from the deal will leave it with capital needed to expand in the red-hot business aviation market. “Transaction proceeds are expected to fund fleet, programme and geographic expansion, as well as significant infrastructure expansion, including maintenance-support facilities and private terminals,” Flexjet says. Flexjet operates a fractional-aircraft ownership business and related enterprises, including an aircraft-leasing division. Its fleet includes some 250 aircraft, including Bombardier Challengers, Gulfstream G450s and G650s, and Embraer Phenoms, Legacys and Praetors, according to Cirium fleets data. Flexjet turned a $52.9m profit in 2021, down from $66.2m in 2020, and anticipates generating $2.3b in 2022 revenue, according to an investor report. The business-aviation market enjoyed unprecedented growth in recent years – a period characterised by broad economic expansion and easy access to cash. More recently, however, demand for business jets has flattened amid a wide economic slowdown. Flexjet remains bullish. <br/>
Brazilian airline Gol Linhas Aereas Inteligentes said Wednesday it expects to report a loss in Q3 due to high fuel prices, despite strong revenue growth. The company said it expected a loss of about 1.81 real per share for the period, with fuel unit costs expected to have risen 87% year on year. Gol added that it expects its EBITDA margin for the quarter to be around 15%, down from 24.3% in the same period last year. The company will publish its results on Oct. 27. The downturn comes despite an expected 45% rise in the company’s passenger unit revenue from a year earlier. This had been “driven by continued growth in domestic leisure travel demand combined with a gradual pickup in international travel,” the airline said. Non-fuel unit costs are expected to have fallen by around 25%, mainly due to increased supply and productivity growth, it added. Its financial leverage, measured by the net debt to EBITDA ratio, is expected to have been 10x in the quarter. Total liquidity at the end of September was calculated at 3.6b reais ($680.14m). <br/>
British low-cost airline Jet2.com, a unit of Jet2 Plc, said late on Wednesday that a flight from Turkey to Manchester was diverted to London's Stansted airport under the direction of UK authorities over a potential security threat. The aircraft landed safely and taxied to a remote stand, the airline said in a statement on Twitter, adding that the incident was later downgraded and declared as over. Essex Police led the safety operation after receiving a report of potential threat on board Wednesday night. "The runway was closed for a time while enquiries were carried out. Officers were then able to establish there was no threat on board," the police tweeted.<br/>
EasyJet has warned the closure of Ukrainian airspace could continue to cause flight disruption next summer. Congestion in the skies over Europe is causing delays for airlines, chief commercial officer Sophie Dekkers told MPs. Ukraine's airspace has been closed since February due to Russia's invasion.Airlines also said the tight labour market would continue to make hiring enough staff difficult. Dekkers told the Transport Select Committee this had caused a severe air traffic control challenge, because lots of traffic had to be routed through "a very narrow funnel across Europe". This, she said, meant any flights going through southern Europe were subject to delays and knock-on effects. The low-cost carrier does not think this will change in the near future, so the need to allow for delays would be taken into account when building its schedule for summer 2023. The travel industry is hoping strong appetite for holidays carries on into next year to help the sector recover, despite cost-of-living pressures and other challenges. Demand rebounded quickly after travel restrictions were lifted in March, but many aviation businesses were caught out by staff shortages, including of ground handlers. A number of airlines were forced to trim their schedules, and some airports to impose capacity limits. Looking ahead to next summer, representatives from British Airways and Gatwick Airport told the committee recruitment remained a challenge.<br/>
Air Arabia’s joint-venture Pakistani carrier Fly Jinnah is set to commence flights from Karachi having secured its air operator’s certificate and licence. Fly Jinnah will become the fifth private airline in the Asian state. It says it has passed “rigorous” inspections from the Pakistani civil aviation authority, and been granted the operating authority, but has yet to fix a date for launching services. Fly Jinnah has been established by Sharjah-based Air Arabia in co-operation with the local Lakson Group. “A lot of hard work has been put into achieving this outcome,” says Fly Jinnah chair Iqbal Ali Lakhani. “We look forward to launching Fly Jinnah’s operations, serving the strategic vision of Pakistan’s travel and tourism sector, and contributing to the country’s economic growth and job creation.” Fly Jinnah will initially use three Airbus A320s, flying domestic routes. It has been assigned the IATA designator code ‘9P’. “All aircraft cabin interiors will be fitted with world-class comfort seats, offering one of the industry’s most spacious economy cabin seat-pitches,” the carrier claims. Fly Jinnah expects to serve domestic destinations for about a year before expanding to international routes. “This milestone reflects our commitment of maintaining the highest possible safety standards across the airline operations while providing the highest value to all our customers,” says Air Arabia group chief Adel Ali. “We are confident that Fly Jinnah will add significant value to the air transport sector of Pakistan.” Air Arabia and Lakson Group had disclosed their aim to set up a joint-venture carrier about a year ago, and Ali had expected it to be operating by mid-2022.<br/>
Thai low-cost operator Nok Air narrowed its 2021 loss, helped by a revenue gain from debt restructuring, as well as recovery in domestic air travel demand in the second half of the year. For the year to 31 December 2021, the airline posted a pre-tax loss of around Bt1.4b ($37m), significantly narrowing the record Bt7.4b loss in 2020, when the airline was hit by a collapse in travel demand from the pandemic. Full-year revenue dipped just 5.6% against 2020, to Bt6.4b. While passenger and services revenues fell year on year, the airline took a significant revenue gain, at around Bt4b, from debt restructuring. Nok Air, which is undergoing debt restructuring, blames domestic travel restrictions – imposed for most of 2021 – for a drop in passenger revenues, which tumbled 67% year on year. The airline notes that its operating hub of Bangkok Don Mueang and Suvarnabhumi airports were shut off to regular passenger transportation in July as part of pandemic restrictions, forcing the airline to shift some operations to U-tapao airport near Pattaya. “However, after the government eased the travel limitations in the fourth quarter of 2021, passenger demand for travel increased. The company then decided to increase flight frequencies and routes,” says Nok Air. Its 2021 traffic results reflect the challenging operating environment: passenger numbers plunged nearly 70% to just 1.3m, with capacity falling by 67%. Nok Air reported a 52% decrease in full-year expenses to Bt7.8b, led by significant reductions in impairment costs and credit losses. It ended the year with Bt1b in cash and cash equivalents, slightly lower than the Bt1.4b at the start of the year. <br/>
Penang is set to receive more inbound travellers with the launch of AirAsia’s new direct route from Bali, scheduled to start on Oct 20 this year. State Tourism and Creative Economy committee chairman, Yeoh Soon Hin said he was confident that the route would be popular and provide numerous benefits to the local communities through the multiplier effect of tourism spending as well as employment opportunities. "This direct flight will also entice foreign travellers to come to Penang and this flight connectivity is advancing my vision towards establishing direct flights between Penang and Australia. "Studies have shown that Bali's leading international tourist arrivals are Australians, and since Penang is a growing business and tourism hub surrounded by beaches, this may also encourage airlines to explore the possibility of developing a new route between Penang and Australia,” he told reporters at the launch of the route by AirAsia here today. The twice-weekly flight would bring AirAsia Malaysia’s flight frequency in Penang to 156 flights per week.<br/>
A Jetstar flight in Australia had to make a priority landing this week after a "terrifying" mid-air brawl broke out just 24 minutes after take-off. Video taken onboard the plane shows chaos erupting as two men apparently have to be pulled apart as they throw wild punches at each other. Flight JQ582 was travelling from Melbourne to Brisbane on Tuesday when the incident led to the pilot deciding to turn the plane around. It landed back at Melbourne Airport where Australian Federal Police officers removed two men. One passenger told 9 News the fight was "absolutely terrifying" and another said she was clutching her son during the unexpected landing. "There was a commotion, there was yelling, people started standing up, it went on for a couple of minutes," a passenger told 9 News. "One gentleman was then escorted to the rear of the aircraft, he had blood on his face... we didn't hear anything else, we had no information." Eyewitnesses on the flight said one of the men had caused concern even before he was onboard the plane. "The guy was aggressive before he got on the plane and we thought surely they won't let him on the aircraft," the passenger said. A Jetstar spokesperson said the airline has a "zero tolerance for disruptive and abusive behaviour". "The safety of our passengers and our crew is always our first priority and we thank our customers for their patience," the airline's spokesperson said.<br/>