WestJet CEO Alexis von Hoensbroech says bringing Swoop and Sunwing Airlines under its banner won't lead to higher airfares as integrating the discount carriers will also tamp down costs. The CE said Canada's second-biggest airline will be able to swap out planes more easily and expand the range of destinations for travellers on the hunt for cheap tickets. Like rival Flair Airlines and Porter Airlines, WestJet aims to vastly expand its business over the next few years, with 61 Boeing 737s on the order book over the next five years, plus an option for 20 more. Over the past two weeks, the Calgary-based company told employees it would shut down Swoop at the end of October and Sunwing Airlines over the next few years, folding them into WestJet's main operation while maintaining Sunwing's tour package division. Some experts have warned that the mergers would result in lower competition and higher airfares, particularly for sun destinations. While competition remains intense and prices low on major Canadian routes such as Toronto to Vancouver, fares to sunny getaways, US cities and European hot spots have all gone up over the past year.<br/>
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Airbus is putting the finishing touches to a deal with Mexican ultra-low-cost carrier Viva Aerobus for 90 narrowbody jets, but the transaction will fall outside the Paris Airshow, industry sources said on Wednesday. The two sides have been in talks coinciding with the world’s largest air show, with estimates of the volume ranging between 60 and three-digits, but are converging on a deal for some 90 jets likely to be announced later this month, they said. Airbus declined comment. Viva Aerobus was not immediately available. The airline said this week it still had an existing Airbus order and had not signed a new deal with any supplier. <br/>
Indian airline Go First, which is under bankruptcy protection as it tries to resume operations, has sought additional funds at a lenders meeting on Wednesday, banking sources told Reuters. The airline is asking for between 4b and 6b Indian rupees ($122m) in additional funds, the sources said, with lenders expected to evaluate proposals in the next 48 hours. None of the bankers wished to be identified because they were not authorised to speak to the media. Go First plans to resume operations in July and operate 78 daily flights with 22 aircraft, one of the bankers said, adding that the airline will also require approval from India's aviation watchdog. The planned resumption of operations depends on a number of factors including regulatory approvals, a second banker said. The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors, which are owed 65.21b rupees in total. <br/>
Indian low-cost carrier SpiceJet on Wednesday said it has settled a dispute on unpaid dues with lessor Nordic Aviation Capital (NAC), with three repossessed aircraft returning to its fleet. The airline, which currently operates five Bombardier Q400 aircraft from NAC in its fleet, said the agreement settles all past liabilities for the Q400s. The Indian carrier has been scrambling to raise funds amid a string of quarterly losses, compounded by some lessors taking the airline to court to settle unpaid dues and requesting the country's aviation regulator to de-register their planes. Earlier this month, SpiceJet said lessor FTAI Aviation would lease it up to 20 engines as it looked to restore its fleet. The carrier said last month it has begun to revive 25 of its grounded fleet using its own money and a $50m line of credit through an Indian government scheme it secured.<br/>
Budget carrier Cebu Pacific is apologizing to passengers affected by “disruptions” of their flights attributing these “primarily” to fleet availability issues. At a joint hearing in the Senate on Wednesday (June 21), Cebu Pacific, through its CCO Alexander Lao, recognised the difficulties and frustrations experienced lately by its passengers due to flight delays or cancellations. “We express our sincerest apologies to our passengers for the disruptions and assure you that we are committed to resolving these challenges,” Lao said during the hearing of the Senate committees on tourism and public services. “We value the trust and confidence of our passengers and are committed to providing safe, affordable, and reliable flights. We understand that this is still our responsibility as a public service,” he added. Cebu Pacific then enumerated several factors that affected their operations – from the global supply chain issues to ground damage caused by unexpected severe weather events. In particular, Lao cited the grounding of 120 Pratt and Whitney (PW)-powered Airbus aircraft worldwide, which he said impacted other carriers, not just Cebu Pacific. “The PW engines are experiencing premature removal from service, and each engine restoration requires 220 days instead of the industry norm of 90 days. This premature servicing can be likened to a car’s preventive maintenance, where the vehicle is brought in for inspection at 3,000 kilometers instead of the expected 5,000km. Additionally, the vehicle is in the shop for one month instead of one day,” he explained.<br/>