Going public via direct listing can be a bit of a gamble. For Surf Air Mobility Inc., it proved to be more like a spin on the roulette wheel. When the stock finally began trading just before 3 p.m. Thursday in New York, it was on paper worth a quarter of the value expected the night before. While the reference price in a direct listing is merely an estimate of value — and a flawed one at that — the rocky debut could serve as a cautionary tale for other wanna-be public companies considering the route without the brand recognition direct listings typically accompany. For small companies looking at a direct listing, Surf Air’s CEO Stan Little has some advice: “Number one, make sure you have the money that you need to execute since you’re not raising money yourself,” he said on the floor of the NYSE Thursday. Despite the widespread view that it’s a cheaper and faster way to go public, only a handful of well-known companies like Spotify Technology SA, Slack Technologies Inc. and Coinbase Global Inc. have tapped the option to go public. The venture-backed regional air carrier with plans for electric planes opted for a direct listing after a SPAC deal was called off last year. While the company had reasons to go public, including a tie-up with Southern Airways Corp. and unlocking additional funding, its start isn’t the exit its backers were hoping for. Story has more.<br/>
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Southwest Airlines (LUV.N) has exercised options for the delivery of 30 Boeing 737 MAX 7 planes next year, and converted 24 existing MAX 7 orders to MAX 8, the company said in an SEC filing on Friday. The move comes two days after Boeing said the first delivery of the 737 MAX 7 was delayed to 2024 as it tries to secure Federal Aviation Administration certification for the narrow-body jet. Southwest's decision to convert some MAX 7 orders to the MAX 8 model, which is already in operation, would buffer the impact of the delivery delays. On Thursday, Southwest Airlines issued disappointing forecasts for the current quarter and full year after missing estimates for second-quarter results, fueling concerns about the strength of domestic travel demand in the United States. Southwest Airlines has plans to fly the MAX 7 "at some point next year", but if not, it would take MAX 8 orders instead, CEO Robert Jordan said on a post-earnings call on Thursday.<br/>
Start-up regional carrier Bermudair has received an air operator certificate from the Bermuda Civil Aviation Authority, taking it one step closer to launching operations to the East Coast of the USA. In a 26 July letter to the US Department of Transportation, Bermudair “stresses the urgent need for immediate action” to approve its application for a foreign air carrier permit “given that authority is critical to the start-up of operations”. Bermudair plans to start flying two Embraer 175s from its base at LF Wade International airport to Westchester, New York on 25 August, with plans to later add Boston and Ft Lauderdale, Florida to its nascent network. Both E-jets are about 10 years old and were originally operated by failed UK regional carrier Flybe. The aircrafts’ cabins have been converted from 88-seat configurations to 30 all-premium seats. “Bermudair may further expand the proposed services and use other aircraft in the future,” the carrier notes in its letter to the DOT. The fledgling airline proposes to fly six days a week, twice daily from Bermuda to New York’s Westchester County airport. In addition, it has applied to fly six days a week to both Boston and Fort Lauderdale, each once daily. Bermudair first applied for a foreign air carrier permit to operate in the USA on 3 May. The carrier says it plans to operate both scheduled and charter flights between Bermuda and the USA, targeting primarily business travellers with 1-and-1 seating configurations and “elevated” customer service. <br/>
Icelandic budget airline Play is extending its network to the German hub of Frankfurt later this year, as it turns in an improving first-half performance. Play is to open the Frankfurt service on 14 December, operating the route four to five times weekly over the winter season. Frankfurt will be the airline’s fourth German destination after Berlin, Hamburg and Dusseldorf. Play has been shifting its strategic focus from the transatlantic bridge market – connecting European and US cities via Reykjavik – towards point-to-point services, says chief executive Birgir Jonsson. This adjustment “has been successful and is working”, he adds. He says the airline has established a fleet of 10 Airbus A320neo-family aircraft, following the arrival of another A321neo in the second quarter, reaching the scale to which it has been ramping-up over the past two years. The airline is in talks to introduce another aircraft for summer 2024 and four in 2025. “Further fleet additions and various fleet development scenarios in the years following 2025 are also being explored,” it states. Play reduced half-year operating losses by 38% to $17.3m, as revenues reached nearly $106m. Q2 results were “better than we anticipated”, says Jonsson, as the airline edged into operating profit with a surplus of $416,000 for the three months to 30 June. Jonsson says the figures support the carrier’s previous forecast of an operational profit for the full year. Play operated to 34 destinations in Europe and North America over Q2, doubling its capacity compared with the same period last year. Despite this expansion, the load factor in the quarter increased by 10 points to 85%. The carrier states that 30% of passengers were travelling from Iceland, 27% to Iceland, and 43% were connecting through the bridge.<br/>
Prospective UK long-haul start-up Global Airlines is intending to configure its Airbus A380s with 450-470 seats, and initially operate to New York JFK and Los Angeles from London Gatwick. The would-be carrier is promising a three-class service – first, business and economy – as it looks to obtain an air operator’s certificate this year ahead of starting flights in summer 2024. It would commence operations with a pair of A380s, with a preliminary configuration intended to speed its entry before upgrading the interior cabins to their final full layout. “We’re a lot further along that you think,” founder and CE James Asquith told an audience during a Global Airlines event in London on 27 July, stating that two years of work were behind the project. “We haven’t just gone out and bought a bunch of A380s.” Asquith says Global Airlines is the culmination of a long-held ambition to revive a higher standard of air travel, capitalising on his background in airline finance. He claims to have flown with 284 airlines – “that’s a lot of product research” – and argues that the A380 is a highly-efficient aircraft if it is used “properly”. The company recently claimed it has reached terms of agreement for three more A380s, on top of an earlier agreement for a single aircraft. It indicates that the three latest aircraft are stored in the USA. Global Airlines believes it will have a “compelling” product that will attract passengers, even with competition from other transatlantic operators from Gatwick including Norse Atlantic, British Airways, Delta Air Lines and JetBlue Airways. Asquith acknowledges that the transatlantic market is “littered with failed carriers”, but insists: “We’re doing it very differently.” He took the opportunity during the event to reveal a newly-agreed partnership with American Express. “It’s been an exciting ride and it will get a lot more interesting,” he says.<br/>
Aer Lingus is to reopen its pilot recruitment drive, spanning the next five years, for the first time since before the pandemic. The airline is offering 90 “aspiring pilots a unique opportunity to realise their ambitions and become a pilot of tomorrow for the airline”, it said in a statement. Aer Lingus will take in 18 candidates this year, with applications accepted until August 16th. The airline fully sponsors the course. “Aer Lingus’s transatlantic expansion and Dublin hub growth strategy means there are opportunities for new Aer Lingus-trained pilots to join our team of captains and first officers who currently fly to over 80 European destinations, and to 14 North American destinations on our long haul network,” the airline’s chief executive Lynne Embleton said. “Our continued focus on using Ireland’s unique geographic position to connect Europe to North America and vice versa presents immensely exciting careers for those who are passionate about being a pilot." "While pilots are required to be technically adept, many of the required competencies like decision-making, problem-solving, teamwork and communication are readily transferred from other careers,” chief instructor Capt Karl O’Neill said. “We are seeking to attract future pilots with a wide breadth of qualifications from all backgrounds to reflect the rich diversity of our society and economy.”<br/>
Pilots at Aer Lingus Regional operator Emerald Airlines have called off their planned strike action this Friday, ahead of fresh talks with the company. Industrial action has been “temporarily suspended” to “allow for meaningful engagement” at Monday’s meeting with management, Forsa trade union national secretary Katie Morgan said in an emailed statement late on Sunday. The union hopes to reach agreement with Emerald to negotiate a collective labour agreement covering pilots terms and conditions of employment,” Morgan added. IALPA, the pilots professional association, which is a branch of Forsa, had called a strike by Emerald Airlines pilots for August 4th, coinciding with the start of the bank holiday rush. Emerald operates the Aer Lingus Regional network, connecting airports in Ireland, Britain, the Channel Islands and France. The pilots had been engaged work-to-rule since June, before calling this week’s strike.<br/>
India's aviation regulator has fined Indigo Airlines over deficiencies in documentation and operations in a special audit after a series of tail strike incidents on the carrier's A321 aircraft this year, the civil aviation ministry said on Friday. The Directorate General of Civil Aviation (DGCA) has levied a penalty of 3m rupees ($36,475) for deficiencies in the carrier's documentation and procedures of operations training, engineering and flight data monitoring, the ministry said. Indigo's response to the regulator's show cause notice was reviewed at various levels in the government and found to be unsatisfactory, the ministry said. The company is examining the regulator's order and will respond in due time, it said in a statement, adding that DGCA has allowed IndiGo one month to make an appeal. Indigo aircrafts have experienced as many as four tail strike incidents in the first six months of this year. The DGCA has directed Interglobe Aviation, which operates IndiGo, to amend its documents and procedures in line with regulatory requirements.<br/>
A US judge has tossed out Go First’s lawsuit against Pratt & Whitney (P&W) after a Singapore arbitration body overturned an earlier order. Go First had sued P&W in US federal order in April, asking a judge to require the company to abide by what had been an interim decision by the Singapore International Arbitration Centre (SIAC). The airline in March had filed with the SIAC for relief, alleging that defective PW1100Gs had forced it to ground half its 54 A320neo-family jets. The SIAC initially sided with the airline. In interim decisions in March and April, it ordered P&W to supply Go First with some 90 spare PW1100G engines this year. But on 27 July, US Judge Laura Hatcher denied Go First’s suit after learning that an SIAC tribunal had overturned its interim decisions. Hatcher calls Go First’s suit “moot” now that “the tribunal vacated the awards”. P&W declines to comment, saying the order “speaks for itself”. Neither Go First nor its attorney immediately responded to requests for comment. The dispute involves what Go First alleges to be significant PW1100G engine problems. The airline told the SIAC that the engines are defective and are significantly less durable than expected. Numerous other airlines have reported PW1100G durability problems in recent months. Airline executives have also lamented P&W for lacking sufficient maintenance capacity to address problems. Engines operating in hot and dusty regions have reportedly been most effected. The problems forced Go First to remove 510 PW1100Gs from its jets, devastated its operation and pushed it into financial distress, the airline told the arbitrator. On 2 May, Go First suspended all flights, and soon after filed for bankruptcy protection. The SIAC’s initial interim ruling required P&W “take all reasonable steps” to send Go First with 10 spare engines monthly through year-end – some 90 in total. But papers filed in US court reveal that those terms have since changed. Story has more.<br/>
Indian low-cost carrier Akasa Air is “still on track” to announce a potential order for at least 100 new aircraft – and announce its first international routes – by the end of the year. Speaking with Indian news outlet The Economic Times, Akasa chief Vinay Dube says it is “our intent to order 100-plus aircraft…between now and the end of the year”. <br/>His comments follow Akasa’s order for four 737 Max 8s at this year’s Paris air show, taking its total commitments to 76 examples. Dube, who is also in Akasa’s founding team, told The Economic Times that the four-aircraft commitment is not “superseding” the airline’s intent for a larger aircraft order. At the Paris air show, compatriots Air India and IndiGo each placed big orders with Airbus and Boeing. In March, Dube told FlightGlobal that the airline intended to make a “much larger aircraft order” by the end of this year, and that the 737 Max is expected to be a mainstay of the fleet. He had also disclosed the airline’s plans to launch international flights, pointing out network opportunities in the Middle East and Southeast Asia. In his latest interview, Dube confirms the airline is “still on track” for international flights with the imminent arrival of its 20th 737 Max. He did not disclose what its initial network will comprise, citing ongoing work to secure regulatory approvals. The airline – backed by the late billionaire Rakesh Jhunjhunwala – is approaching its first year of operations. It began flying in August 2022 with an initial network of four domestic points. <br/>
India’s Supreme Court has instructed bankrupt Jet Airways and its new owner, the Jalan-Kalrock Consortium, to reinstate 169 of its temporary workers with full back wages, The Economic Times newspaper and the Indian legal news site Verdictum reported. The grounded and indebted carrier cannot waive the provisions of the Bombay Model Standing Order, a legal provision that protects the rights of workers, the court ruled quashing earlier judgements to the contrary at the Bombay High Court and the Central Government Industrial Tribunal. The two-judge bench at the Supreme Court held that “a workman who has worked for 240 days in an establishment would be entitled to be made permanent, and no contract/settlement which abridges such a right can be agreed upon, let alone be binding.” The judges added that under Indian legislation, any agreement, contract, or settlement in which the rights of employees are waived “cannot override the Standing Orders.” According to the court’s reading of the Bombay Model Standing Order, an employee who has worked at a company for 240 days is entitled to be made permanent - in contradiction with the Bombay High Court which had ruled that completing this term would not entitle staff to claim permanency. The consortium had argued, through its lawyers, that workers who were temporarily engaged on a fixed-term contract should be treated as temporary by the airline even if they had completed this number of days of uninterrupted service. They were not entitled to permanent jobs as the airline union had in 2002 signed a deal abandoning a demand for permanent jobs in return for other benefits, it alleged.<br/>
Indian low-cost carrier AirAsia India has received clearance to operate flights under the Air India Express branding, as the consolidation of the Tata Group’s airline businesses continues. Air India Express and AirAsia India, the operating name for AIX Connect, says the “development marks a significant fast-tracking of the integration efforts, including harmonisation of customer touch points, products, and services across both airlines.” Air India Express and AIX Connect flights and services can now be marketed, distributed, and operated under the common Air India Express name. “Over the past few months, Air India Express and AirAsia India have taken significant steps towards the integration,” state the carriers. This follows the creation of a unified website in March. The Air India Express/AirAsia India merger is part of a broader restructuring, which will also see a merger between full-service carriers Air India and Vistara. Indian conglomerate Tata Group, the parent of Air India, owns 51% of Vistara, while Singapore Airlines owns 49%. In its 27 July financial results, SIA had this to say about the merger plans: “Work continues on the proposed merger of Air India and Vistara, which will result in SIA taking a 25.1% stake in the enlarged Air India Group when the transaction has been completed. This will bolster the Group’s presence in India, strengthen its multihub strategy, and allow it to continue participating directly in this large and fast-growing aviation market.”<br/>