Air Canada is closing in on a deal for as many as 20 Boeing Co. 787 Dreamliners to renew and expand its long-haul fleet, according to people familiar with the matter, in the latest sign of surging demand for large commercial jets. The Canadian carrier is near an agreement to order between 15 and 20 of the twin-aisle aircraft, said the people, who asked not to be identified because the discussions are confidential. The 787 carries a list price of just under $300m for the variant most-used by Air Canada, suggesting a deal value of up to $6b before typical industry discounts. “We have not made any decisions,” Peter Fitzpatrick, Air Canada’s spokesman, said in an email. A Boeing representative declined to comment. Amos Kazzaz, the Canadian airline’s CFO, told analysts in a conference call Friday the airline is “constantly in the market looking for lift” as demand picks up. Air Canada would join other airlines locking in delivery positions on the latest generation of wide-body jets as long-distance flying rebounds from a prolonged slump caused by the coronavirus pandemic. United Airlines Holdings Inc. unveiled an order for 100 Dreamliners along with an equal number of options in December. Recent customers include the kingdom of Saudi Arabia, which is starting a new airline, and Air India, which took both Boeing and Airbus SE widebodies as part of its massive 470-plane deal in February. Large aircraft orders are likely to be in the spotlight next month at the Paris Air Show, the industry’s biggest gathering. <br/>
star
A faceoff this week between WestJet Airlines and its pilots over pay could set the stage for aviators' demands in future bargaining with Air Canada. Pilots at Onex Corp-owned WestJet gave notice on Monday that they could go on strike as early as Friday, raising fears of travel disruptions during Canada's Victoria Day holiday weekend. On Thursday, WestJet said it had already cancelled its flights in anticipation of the strike. The airline said it remained at the bargaining table with the pilots but was ready to "weather labour action for as long as it takes to arrive at a reasonable outcome." It would be the first major pilots' strike in Canada since 1998, according to a spokesperson for Canada's Labor Minister Seamus O'Regan, who is at the talks. For both sides, pay remains a hurdle. While WestJet is pricing salaries to the Canadian market, their aviators represented by the Air Line Pilots Association (ALPA) want to capitalize on U.S. gains, following a recent deal with Delta Air Lines that delivers a 34% pay increase over four years. Air Canada's estimated 4,500 pilots who joined ALPA this week are not currently in negotiations, but could kick off bargaining this summer before the end of a decade-long agreement reached in 2014 with Canada's largest carrier. ALPA president Jason Ambrosi recently told Reuters that a key priority is to narrow the pay gap between Air Canada pilots and their U.S. counterparts, echoing the union's demand for a "North American" contract at WestJet. "It's going to be on AC's desk real soon," said John Gradek, a faculty lecturer in aviation management at McGill University in Montreal, referring to Air Canada. Gradek added there is a group of Air Canada pilots "who have been chomping at the bit" to get a significant bump in wages.<br/>
Hartsfield-Jackson Atlanta International Airport and Addis Ababa Bole International Airport are now connected by way of this morning’s inaugural Ethiopian Airlines flight from that nation’s capital city. Flight 518, a 315-seat Boeing 787-9, carried dignitaries and government and airline officials on the maiden voyage. “The way we ensure Hartsfield-Jackson Atlanta International Airport continues to be the world’s busiest and most efficient airport is to continue to expand across the globe by connecting with partners like Ethiopian Airlines — the largest airline carrier in Africa. Having Ethiopian Airlines making regular flights into our airport will further connect the people, businesses, economies, and cultures of both places,” said Atlanta Mayor Andre Dickens. “This new route strengthens ATL’s position as an international economic force,” Balram “B” Bheodari, Hartsfield-Jackson general manager, said. “This deepens relationships established in Addis Ababa and is a huge win for our customers traveling for business or leisure to Africa and points beyond.” Ethiopian Airlines’ four-times-a-week service — the second African-based airline to provide direct service to Atlanta — represents a significant step forward in ATL’s international service.<br/>
The U.S. Justice Department is considering suing to block Korean Air's planned acquisition of Asiana Airlines, U.S. news website Politico reported on Thursday. The U.S. Department of Justice has been investigating the November 2020 deal for roughly two years, and is concerned that it will hurt competition on overlapping routes to the United States, the report said citing three people with knowledge of the deliberations. The administration is also concerned the merger would place too much control of cargo transportation of key goods like microchips in the hands of one company, the report said, adding that no decision has been made on whether to bring a case. EU antitrust regulators also said on Wednesday that Korean Air Lines' proposed acquisition of rival Asiana may restrict competition in passenger and cargo air transport services between Europe and Korea. The deal, announced by Korean Air in late 2020, would see it become the biggest shareholder in indebted Asiana, the biggest shake-up in the country's aviation industry in nearly three decades.<br/>
Regular scheduled flights between Xi'an, capital of Northwest China's Shaanxi province, and Astana, capital of Kazakhstan, began last month. The flights, operated by Air China, run every Monday and Friday. The opening of the Xi'an-Astana direct route will open up a more convenient air channel between China and Central Asia, expanding the international air network, boosting opening-up and helping more companies "go global", according to Air China. "The opening of the flight is because of the practical need for exchanges between China and Kazakhstan," said Zhang Sheng, vice-president of Air China. He noted that it will promote exchanges and cooperation in the fields of economy, trade, culture and tourism between the countries, contributing to the development of their aviation markets and the high-quality development of the Belt and Road Initiative. "The route will enable more young people from Central Asia to learn about China from all aspects. They can visit Xi'an and jointly help the city build into an international metropolis," said Epke Ehy, a student from Gumilyov Eurasian National University in Kazakhstan. This month, two more international routes from Xi'an to other Central Asian countries were scheduled to be launched, expanding the air network between China and Central Asia, according to the city's development and reform commission.<br/>