Travel boom has delivered bumper earnings for U.S. carriers, but no-frills airlines such as Frontier and Spirit are struggling to return to sustainable profitability. That has made some of them weigh premium-price offerings, including first-class seats, customer lounges and branded foods even as they expect fares to remain the primary driver for bookings. Ultra low-cost carriers offer a no-frills experience at rock-bottom fares and charge heavily for ancillary services. They were tipped to be the big winners after the pandemic, but persistent operational constraints have exacerbated their cost pressures, making it imperative to find new high-margin revenue streams. With consumers more willing to splurge on travel, demand for premium cabins has gone up. This together with soaring bookings for flights to Europe and Asia have allowed the legacy airlines - Delta, United and American - to mitigate inflationary pressures. Budget carriers lack these products. Frontier CEO Barry Biffle said while he will not invest in long-haul jets, he has been struck by a greater desire among leisure travelers to pay for first-class seats on domestic flights. Frontier is watching the trend "very carefully" and would consider adding premium seats if it lasts for multiple years, he said. "If people are really willing to pay that much for a premium, maybe there is an opportunity," Biffle told Reuters. Similarly, Minneapolis-based ultra-low-cost carrier Sun Country is contemplating opening an airport lounge and offering branded food and beverage. CEO Jude Bricker said the demand for services that offer even minor improvements to the travel experience has doubled. "We're in discussions about things that I would have written off in the past," Bricker said.<br/>
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Canadian leisure carrier Air Transat and CAE have created a new cadet academy to help the airline meet soaring demand for pilots. The Ascension Academy will begin training cadets in February, offering aspiring pilots a “pathway to earn their wings at CAE’s flight academy, and the opportunity to begin their career as a second-in-command upon completion of their type rating with Air Transat”, the Montreal based carrier said on 21 September. Open to “anyone with little or no flying experience”, the 18-month programme is based mostly at CAE’s training facilities at Falcon Field airport in Phoenix. Applicants admitted into the Ascension Academy programme will receive a conditional letter of employment from Air Transat. Upon completion of training and type rating, graduates will be hired as first officers to fly “throughout the airline’s global network, including transatlantic destinations from its hub airports in Montreal and Toronto”, Transat says. The industry-wide pilot shortage has presented a challenge for airlines throughout North America, Annick Guerard, Transat’s chief executive, said during the carrier’s 14 September quarterly earnings call. “So far, we have been able to manage this challenge,” she said. “We are actively hiring pilots, primarily to support our growth ambitions and to fill in for upcoming retirements”, Guerard said. “In addition, we are also currently reviewing and revamping our pilot recruitment and training programmes to make them more attractive [and] more competitive.” CAE estimates that, over the next 10 years, 63,000 new commercial pilots must be hired to meet demand for flight crews in North America alone. “One of the advantages of the Ascension Academy is that we will have a pipeline of pilots trained to our exacting standards with the specialised knowledge and skill to operate Air Transat’s fleet to destinations throughout our network,” says Marc Gilbert, the airline’s vice-president, flight operations. Transat recently posted its first profitable quarter since before the beginning of the Covid-19 pandemic based on strong demand for leisure travel, especially across the North Atlantic. <br/>
Estonia’s government is not sufficiently capable of acting as the owner of complex aviation businesses, the country’s national auditor has concluded after a review of regional operator Nordica’s business. The national audit office, Riigikontroll, says the government is too indecisive, adding that a sale of Nordica and the associated aircraft lessor Transpordi Varahaldus would be a “reasonable” course of action. Both companies emerged in 2015 as the government sought to establish a successor to collapsed flag-carrier Estonian Air, and Nordica – originally Nordic Aviation Group – started flying in early 2016. Riigikontroll’s review sought to determine whether the carrier and lessor had succeeded in achieving targets over their seven years of operation, and whether the government’s continued ownership was justified. But it has found neither company is “strategically necessary” for the state and there is “no understandable public interest” in owing them. “The dream of flying under one’s own flag might not be possible in the tight competition of the aviation market without continuous financial support from the state – and without violating the European Union rules for granting state aid,” says auditor general Janar Holm. Estonia’s government invested E72.7m to set up the two companies in order to ensure air transport continuity. But the state-driven strategy of operating from Tallinn proved an “economic dead-end”, says the auditor. The airline’s management had sought other avenues of income to cover the losses of flying from Tallinn, including wet-leasing aircraft to other carriers, and repeatedly informed the supervisory board of the difficulties of meeting the owner’s expectations. Nordica had been allocated E40.7m of the government’s funding but, by the end of its first year in 2016, it had generated a E15m loss and just E3.2m of the funding remained.<br/>
Icelandair has tied up with a Norwegian flight school, the Oslo-based Pilot Flight Academy, in a training partnership programme for cadet pilots. Cadets recruited to the scheme will initially be trained at Torp-Sandefjord airport before moving to the school’s US facility at Denton Enterprise airport, Texas, for five months’ flying. They will then return to Torp to complete the 18-month programme, before embarking on a three-month session with Icelandair specifically training on Boeing 737s or Airbus A320s. Icelandair is a 737 Max operator but is aiming to expand its single-aisle fleet with A320neo-family jets. “Iceland depends on air transport,” say Icelandair Group chief Bogi Nils Bogason. “Although there is still great demand for jobs with Icelandair, it is very important to support the continued growth of the company and our team for the future.” The first group of cadets will begin training in November, says the academy, which has a fleet of Diamond DA40s and DA42s. Pilot Flight Academy says that recruiting sufficient young people to the industry is “one of the primary challenges”. “Competition for talent is intense, and students expect high quality, job security, and favorable conditions,” says the academy’s chief, Mikael Eriksson. While the academy offers a small number of scholarships, Eriksson says the responsibility to train enough pilots must be borne by the “entire industry”, adding that the Icelandair partnership demonstrates how airlines can “secure critical resources”.<br/>
Ryanair said on Thursday it will cut 17 routes from its winter schedule at its home base in Dublin and allocate 19 new Boeing 737 MAX planes to other European airports that offer incentives to fly quieter, lower CO2 emission aircraft. Ryanair plans to move some of the new MAX aircraft, which Boeing says use 15-20% less fuel and emit 40% less noise, to airports in Spain and Italy, as well as Britain's Luton Airport, Ryanair executive Eddie Wilson told a news conference. The Irish airline, Europe's largest by passenger numbers, cited Dublin Airport Authority's increased passenger charges and a failure to deliver a "meaningful" environmental incentive scheme as motivation for the decision. The Dublin Airport Authority said that Ryanair was exaggerating the size of increased charges and that the authority was consulting with airlines about a proposed scheme to incentivise lower-emission aircraft in 2024. It said Dublin Airport's passenger numbers had recovered to pre-pandemic levels and that it had no need to incentivise new growth given a capacity limit under the airport's planning permission. Ryanair frequently cuts capacity from airports during disputes over charges and typically allocates aircraft to airports and regions offering the best growth incentives.<br/>
Ryanair said on Thursday it did not see a risk of the European Union introducing minimum prices or compulsory limits on flights because it would disenfranchise poorer people, making it politically impossible. French Transport Minister Clement Beaune said this week he would seek support from other EU countries for a minimum price on flights in Europe in a bid to reduce the aviation sector's contribution to climate change. The Dutch government also said this month it would move ahead with plans to cap the number of flights at Amsterdam's Schiphol Airport next year, pending EU approval, in a bid to reduce noise pollution and greenhouse gas emissions. "I think it's politically impossible," Eddie Wilson, the head of Ryanair DAC, the largest airline in the group, told a news conference when asked if EU-wide minimum pricing or a cap on air travel could be introduced in the next 5-10 years. "People need connectivity to fly anything over 5-600 kilometres and get there quickly, and it's not about holidays or discretionary travel. Air travel is a necessity for a lot of things." EU officials told Reuters that countries including the Netherlands and Belgium support the French idea in principle. However, France may struggle to win sufficient support among other EU countries, which include island nations that rely on air transport, and regions with tourism sectors buoyed by low-cost flights.<br/>
German leisure carrier Condor Airlines plans to launch a new transatlantic route between Frankfurt and San Antonio in May 2024. Now available for booking on Condor’s website with flights starting on 17 May, the route will be operated with the carrier’s growing fleet of Airbus A330-900neos. San Antonio International revealed the route in a 21 September post on the social media platform X, formerly known as Twitter. ”Germany and beyond just got a whole lot closer,” the airport says, adding that it is “thrilled to announce” San Antonio’s first non-stop flights to Europe. San Antonio’s business leaders have recently pushed for non-stop flights to Europe, focusing on flights to Frankfurt and London and offering airlines incentives to establish such routes, according to local media reports. International flights directly from San Antonio are currently limited to vacation destinations in Mexico, according to the airport’s website. Condor did not respond to a request for comment on its plans for operations between its base in Frankfurt and San Antonio. The carrier said on 6 September that it plans to launch seasonal, thrice-weekly flights from Frankfurt to Miami next summer. Condor will also resume twice-weekly flights from Frankfurt to Calgary International airport. In December, Condor took delivery of its first A330-900neo, marking the beginning of its plan to replace its older A330-200s and Boeing 767s. ”Condor expects to receive a total of 18 new long-haul aircraft as part of its overall long-haul fleet renewal program, which is scheduled to completely replace the current 767 fleet by 2024,” the carrier said earlier this month. Condor currently has nine A330-900neos in service and nine more of the type on order, according to Cirium. The twin-engine widebody aircraft are configured with 310 seats in three classes, including 30 in the business cabin and 64 premium-economy seats.<br/>
Indian budget carrier Akasa Air has accused the aviation regulator of causing it "significant financial and operational hardship" by not intervening to stop pilots from abruptly quitting and disrupting operations, legal filings showed. Over 40 of more than 450 pilots have recently quit Akasa without serving their notice, leading to cancellations of around 18% of the 3,500 flights it usually runs a month in August. Akasa is suing some of the pilots for alleged contractual violations, and has warned in court that it might have to shut down if the exits continue. India mandates a notice period of 6-12 months for pilots which some pilot organisations are challenging in court. Akasa argues its contractual obligations with pilots remain in force, and is suing the regulator for not intervening in the public interest. In its 265-page legal filing, made on Sept. 14 and seen by Reuters, Akasa accused the Directorate General of Civil Aviation (DGCA) of being "unwilling to take any action", which resulted in "significant financial and operational hardship" as well as "reputational loss". The DGCA's inaction has a "cascading effect on the stability" of the Indian aviation sector, it added. A DGCA official said the regulator cannot comment, as the case was being heard in court. An Akasa spokesperson said the airline was in discussion with the DGCA on the matter.<br/>
AirAsia’s Cambodia unit will begin operations in November, as sister company Asia Digital Engineering looks to set up an MRO joint venture in the country. The launch date was disclosed by parent Capital A in a stock exchange filing on 20 September, where it also announced plans for an ADE unit in Cambodia. Capital A had planned to launch AirAsia Cambodia – its fifth airline unit in Southeast Asia – by the end of this year, but was coy about a specific timeline. AirAsia Aviation, the airline business of Capital A, holds 51% shareholding in the carrier, while Cambodian firm Sivilai Asia holds the remaining 49%. Sivilai will also invest Capital A’s new MRO venture in the country, taking a 40% stake, with ADE holding the remainder. According to Capital A, ADE will inject around $1.2m into the new venture in two tranches, with the company using its internal funds for the investment. Explaining its reasons for setting up the Cambodian MRO company, Capital A says that with the imminent launch of AirAsia Cambodia, there will “an opportunity for ADE to establish its operation in Cambodia by providing service to AirAsia Cambodia and other third-party airlines operating into Cambodia major airports”. It adds: “The proposal will facilitate and expedite consolidation of all of ADE’s resources and assets in order to optimise more productive, sustainable levels of operation and service for the [airline units], which in turn enable Capital A to capitalise on cost-saving opportunities and potentially capture surpluses from new revenue streams generated.”<br/>