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Airbus in talks for large narrowbody deal with Mexico’s Viva

Airbus is in talks with Grupo Viva Aerobus SAB for a large narrowbody aircraft order that would fuel the Mexican low-cost carrier’s expansion, people familiar with the discussions said. The companies are holding talks and may announce an accord at the Paris Air Show starting on Monday, said the people, asking not to be identified discussing private deliberations. An order could surpass 100 aircraft, one of the people said. Negotiations aren’t final and there remains a risk that no agreement will be reached this week, the people said. Airbus declined to comment. Viva said its current Airbus deliveries run through 2027 and it hasn’t signed a new order. Viva had a fleet of 70 Airbus aircraft at the end March, consisting of a variety of A320 and longer A321 models, according to the carrier’s website. The airline said it has the youngest fleet in Mexico and one of the most up-to-date in North America. Just a short time ago, Viva Aerobus was fourth in Mexico’s domestic market by passengers, carrying 9.1m domestic travelers in 2018. It trailed Volaris, Aeromexico and Interjet. Now the airline has overtaken legacy carrier Grupo Aeromexico SAB in domestic passengers, increasing the need for additional aircraft to drive growth. Airbus is working on some big-ticket orders at the Paris show, the first event in the city since the end of the pandemic. Among possible deals is an accord with India’s IndiGo, as well as Saudi carrier Flynas, people familiar with the talks have said. <br/>

WestJet to shut down Sunwing Airlines

WestJet group is planning to wind down low-cost carrier Sunwing Airlines and integrate it into its main business, according to a memo seen by Reuters. The move is part of the integration process by WestJet which completed the acquisition of Sunwing airlines in May. Once the integration is complete, all Sunwing employees will continue to have employment with Westjet, said Len Corrado, President, Sunwing Airlines, in the internal memo sent to the employees. The news was first reported by Canadian Press in CBC.<br/>

Air Europa pilots in Spain announce two-week strike from June 19

Pilots at Spain's beleaguered airline Air Europa will go on strike between June 19 and July 2 following a breakdown in salary negotiations, the country's main pilots union SEPLA said in a statement late on Thursday. Pilots said the company reneged on a pre-agreement reached on June 8 and did not meet salary and working condition demands. Air Europa's salary proposals for pilots were equivalent to those at a low-cost airline, the union said in the statement. A spokesperson at Air Europa said the company was open to keep negotiating. Spain forces airlines and pilots to maintain a minimum number of flights during strikes, resulting in fewer restrictions compared to other countries. British Airways and Iberia owner International Airlines Group in February agreed to buy the remaining 80% of Air Europa it did not already own from Spain's Globalia for E400m. The deal still needs regulatory approval from Brussels and a first attempt to buy the airline in 2021 failed after it was rejected by regulators on concerns about a lack of competition on Latin American routes. The airline, which was bailed out by the government in 2020 with a E475m loan, will maintain its brand but will be managed by Iberia.<br/>

Aer Lingus cabin crew reject new pay offer of 10.75% over three years

Aer Lingus cabin crew have rejected a new pay offer of 10.75% over three years, the Sunday Independent reports. The deal was rejected by close to 55% of staff, despite the Fórsa trade union committee’s backing for it. Under its terms, a new “junior entrant” pay scale was to be scrapped with new recruits going directly on to the existing structure, while commission payments for goods sold by cabin crew on flights would go back to 12% for all staff after being cut to 10% during the pandemic. “Aer Lingus will review the outcome of the ballot and consider next steps in relation to the process of engagement which has been ongoing over recent months,” a spokesperson for the airline said. Dublin City Council has blocked two new hotels in the city centre, warning there is an “overconcentration” that is damaging the “vitality of the inner city”, according to the Business Post. City ID, the Dutch hospitality group, has been told it cannot build a 105-bedroom hotel on a derelict site on Capel Street, next to Jack Nealon’s pub. A proposal by investment firm Urban Capital Limited to convert an existing building on Thomas Street being used as offices into a small four-unit aparthotel was also refused permission. It is first time the council has used a new clause in the city development plan to prevent further tourist accommodation, causing anger in the tourism sector. Tourism representatives have complained that the decision will exacerbate the acute supply and affordability issues.<br/>

Ryanair apologises for 'Tel Aviv in Palestine' flight row

The CE of airline Ryanair has apologised after a flight attendant announced that the Israeli city of Tel Aviv was in Palestine. Eddie Wilson told Jewish human rights group the Simon Wiesenthal Center it was an "innocent mistake". Some passengers complained, and the row gathered momentum after the flight. Wilson said that he had written to the Israeli ambassador in Ireland, adding that Israel was "an important partner" for Ryanair. On 10 June, on a flight from Bologna to Tel Aviv, a junior cabin crew member "innocently but inexplicably" announced that the flight would soon be landing in Palestine, Wilson wrote in a letter to the Simon Wiesenthal Center. Wilson said that Ryanair was "100% satisfied that this was an innocent mistake with no political overtones or intent". After the announcement, which was made in Italian and English, several passengers complained, and "continued to be abusive" even after the cabin crew apologised, he said. Police had to be called to meet the aircraft when it landed, Mr Wilson said. The use of the name Palestine in place of modern day Israel represents non-recognition of the Jewish state and is seen as highly provocative by most Israelis. Following the flight, the row gained momentum. Some Israeli media commentators called for Israelis to boycott the airline if an apology was not made. Wilson said that Israel was an "important partner" for Ryanair, adding that it was Israel's second-largest airline. "We plan to invest in Israel to grow traffic and connectivity both for Israelis travelling to Europe and also to bring much-needed inbound tourism to Israel," he said. In a letter to Ryanair, the Simon Wiesenthal Center said it had received "numerous complaints" about the incident.<br/>

Clark reiterates plea for A380neo

Emirates Airline chief Sir Tim Clark has repeated his call for Airbus to develop a re-engined A380neo, believing the addition of a next-generation powerplant could deliver fuel-burn savings of up to 25%. Clark, speaking at the Paris Air Forum on 16 June, pointed out that the engines currently equipping its A380 fleet – both the Engine Alliance GP7200 and Rolls-Royce Trent 900 – were “designed in the 1990s”. He highlights the performance benefit an engine like the Rolls-Royce UltraFan could bring to the double-decker: “It would give us a 25% reduction in fuel burn and emissions on the A380,” he says, “that’s startlingly good.” Rolls-Royce ran its UltraFan demonstrator for the first time on 24 April and sees the architecture as having potential to equip future single- and twin-aisle aircraft requiring between 25,000lb (111kN) and 100,000lb of thrust. The Trent 900 is rated at 84,000lb. Clark says the A380 remains popular with passengers. Last week it had 87 of its 116-strong fleet in service operating with an 82% load factor. He says a new A380 using UltraFan engines would “give a step-change” in fuel-burn performance. Other aerodynamic improvements to the design and a switch to a high-wing configuration – to accommodate the large fans on the UltraFan – would also need needed, he adds. “I have done a lot of soul searching on how it would look,” he says. “I know it’s flying a kite but I am trying to get people thinking,” he says, arguing that an ultra-high-capacity aircraft will be the only solution for slot-constrained airports bearing in mind forecast future passenger growth. However, Clark’s pleas are falling on deaf ears at Airbus: “They always laugh at me,” he says. “I’m the outlier – but I’m simply saying what I know to be the case – they may choose not to deal with that.” <br/>

Riyadh Air CEO says airlines that ignore sustainability will fail

The head of Riyadh Air pledged the Saudi startup would be both commercially and environmentally sustainable and warned carriers that do not embrace climate concerns will not survive. Riyadh Air is owned by Saudi Arabia's Public Investment Fund, which has more than $620b in assets under management. CE Tony Douglas said the owners would impose strict financial expectations, which he did not specify. Douglas was speaking at an event to present the airline on the eve of the Paris Airshow. It is launching at a time when airlines are under pressure to meet industry emission targets, with some facing legal pressure over alleged greenwashing. "Ultimately it will be commercial aviation sustainability that will differentiate the winners and the losers, and anyone who doesn't take it seriously will probably fail for sure," Douglas said. The creation of a second Saudi national airline was announced alongside a provisional order for up to 72 Boeing 787s in March, as oil producer Saudi Arabia diversifies its economy. Douglas ruled out any further aircraft announcements at this week's show. However, industry sources said Riyadh Air was likely to sign a deal with General Electric for engines to power the recently ordered Dreamliners. <br/>

Board of Viet Nam's Bamboo Airways resigns after record loss

Four of five directors who resigned after Bamboo Airways released audited details of its record 2022 after-tax loss will be re-elected to the airline's board. The carrier will officially announce the VND17.6t dong (US$747.8m) for the twelve months to December 31, 2022, at its annual general meeting on June 21, when it will also re-elect directors. The directors who have tendered their resignations include the airline's chairman, Nguyen Ngoc Trong, as well as Doan Huu Doan, Le Ba Nguyen, Le Thai Sam. and Nguyen Manh Quan. However, Bamboo's major shareholders, including Le Thai Sam (who holds a 38.28% stake) and Doan Huu Doan (who has a 16.85% stake), have put forward a list of eligble new directors. Both gentlemen renominated themselves for re-election as well as Nguyen Ngoc Trong and Le Ba Nguyen, leaving Nguyen Manh Quan out in the cold. According to the Thuong Truong outlet, also set to join the enlarged seven-person board is Phan Dinh Tue, who is on the board of the Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), the lesser known Tran Hoa Binh, and Hideki Oshima, the former director of international relations at JAL. Bamboo's supervisory board will get three new members, including Nguyen Dang Khoa, Nguyen Bich Ngoc, and Nguyen Thi Huu. Former Japan Airlines' chairman Masaru Onishi will become a senior advisor to the board of directors. The two Japan Airlines alumni appeared on the scene after Bamboo's parent company, FLC Group and its chairman, sold down their stakes in the airline to an undisclosed investor earlier this year.<br/>