JetBlue Airways is preparing to cut scores of weekly flights in the New York City area this spring and summer in response to a shortage of air traffic controllers, a measure that will have a financial impact on the airline, CEO Robin Hayes said Wednesday. Last week, the FAA unveiled a new plan to help avoid a repeat of 2022′s flight disruptions, reducing flight requirements by up to 10% for airlines’ takeoff and landing rights to avoid congestion in the New York City area and Washington, D.C. The FAA cited its staffing shortfall. The waivers will last from May 15 through Sept. 15. “We don’t want to pull down flights. I’m sure no airline wants to pull down flights,” Hayes said in an interview with CNBC ahead of an event at the Economic Club of New York. “But if we don’t cut them the system is not going to be workable this summer.” The staffing shortfall and potential schedule cuts in the region highlight the difficulty airlines have faced to ramp up capacity as travel demand returns in the wake of a pandemic lull. Flight cancellations and delays were elevated during peak parts of 2022, and airlines scaled back schedules then to put more slack in the system. If weather is bad or there are other challenges, disruptions tend to cascade if airlines have packed their schedules with too many flights. Hayes said the latest measure is particularly impactful for JetBlue, which is based in New York City, because the vast majority of its flights take off from or land in the city or transit its airspace. “We’re staffed, we’ve already trained pilots, we’re paying for pilots, we’ve bought airplanes, we’re paying for gates and slots,” Hayes said. “This is going to have a very significant financial impact on JetBlue and our customers.” Delta Air Lines asked the FAA to return up to 10% of the airline’s slots or operating times at the three major airports serving New York City and at Washington Reagan National Airport for the period. United Airlines made a similar request. Carriers have until April 30 to request the waiver. “This [air traffic controller] staffing issue has been around for years,” Hayes said. T<br/>
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European budget carrier Wizz Air Wednesday lost its fight against E62m in state aid granted to its Romanian rival Blue Air after Europe's second-top court backed EU competition regulators' decision to approve the subsidies. The European Commission in its 2020 decision said a E28m guarantee to compensate pandemic-hit Blue Air and a E34m guarantee to cover its urgent liquidity needs due to losses from the pandemic complied with the bloc's state aid rules. Wizz Air, whose main operations are in central and eastern Europe, subsequently challenged the EU executive's approval at the Luxembourg-based General Court. A number of carriers have sued the Commission for clearing similar aid to their rivals. Judges rejected Wizz Air's arguments. "The action against the Commission's decision approving the aid granted by Romania to the airline Blue Air in the context of the Covid-19 pandemic is dismissed in its entirety," the Court said.<br/>
Ryanair Holdings Plc has entered talks with Boeing Co for an order of as many as 200 narrow-body aircraft, in negotiations that stand to last 6-12 months, CEO Michael O’Leary said. The discount carrier has resumed talks with Boeing for the order, with potential delivery slated for the period between 2027 and 2031, O’Leary said in Brussels at an aviation conference today. The airline is considering both the larger and as yet uncertified 737 Max 10 or the existing Max 200, O’Leary said. “It all comes down to pricing,” said O’Leary. “If they give us a good discount on the extra 30 seats, we’re more likely to take Max 10s. If they don’t give us a good discount on the extra seats, we’re more likely to go with an additional Max 200s.” Ryanair, Europe’s biggest budget carrier, is the biggest customer for Boeing 737 Max in Europe. The airline said it’s seeing significant growth in Italy, Portugal and Eastern Europe.<br/>
Ryanair CEO Michael O’Leary said on Wednesday air fares could go up by between 10 and 15% this year, although he added they are unlikely to rise more than 20% as other airlines have predicted. He said traffic was set to grow 10% this year for the low-cost carrier and the tempo of strong bookings could continue through the summer, driven in part by throngs of American tourists coming to Europe. <br/>