unaligned

Flight attendants at the largest regional airline in the US, SkyWest, are seeking to unionize the airline, taking on what they claim is an illegal company union and pushing back on alleged retaliatory firings of two flight attendants who were leaders of an organizing campaign. Flight attendants at SkyWest, which operates flights for Delta, United, American Airlines and Alaska Airlines, are currently represented by the SkyWest Inflight Association (SIA), a work group that does not purport to be a union and is supported and funded by the airline itself, according to a handbook for SIA representatives. The Association of Flight Attendants (AFA) is seeking to unionize over 4,000 flight attendants at the airline and has accused the SkyWest of fostering a well-known anti-union culture which it says “includes illegal ‘in-house’ company unions”. On 13 September, two flight attendants at SkyWest Airlines were fired, which the union has alleged is retaliation for their public leadership roles in the union organizing campaign and is demanding their reinstatement. Tresa Grange worked as a flight attendant at SkyWest for 24 years before she was recently terminated along with Shane Price, a flight attendant at the airline for about nine years. Grange said about two years ago she reached out to the AFA-CWA to start getting a union organizing drive started, in part due to her experience as a representative for the SkyWest Inflight Association and her experience in management. “SkyWest Inflight Association is run as an extension of inflight management and that is why I am passionately after a legally recognized contract through a union,” said Grange. “They can bend and break and twist and utilize a policy or procedure in any way that supports or helps the company, however, the flight attendants cannot.” Price said the union opposition from SkyWest has ramped up this year as the union organizing started gaining momentum and flight attendants began wearing pins and putting union pins on their luggage. SkyWest cites the existence of SIA as to why its workers don’t need a union. But Price and their supporters don’t buy that.<br/>

WestJet said Friday it aims to wind down Sunwing Airlines and integrate the low-cost carrier into its mainline business by October of next year. WestJet, which bought the Toronto-based company’s main airline and vacation divisions in May in a major consolidation of the aviation market, said Sunwing’s 18 Boeing 737s and 2,000 employees will be folded into the Calgary-based carrier in a “seamless transition.” WestJet and Sunwing together make up 37% of seat capacity on direct flights to sun destinations, and 72% from Western Canada, according to a report from the Competition Bureau last fall. Some experts have warned that the move could mean less service and higher fares — particularly in Western Canada and smaller cities across the country. As a condition of Ottawa’s sign-off on the Sunwing acquisition, both parties pledged to maintain capacity on the most affected routes and keep the Sunwing Vacations head office in Toronto and a regional one in Montreal for at least five years. The integration process is underway as WestJet prepares to bring budget subsidiary Swoop under its flagship banner by the end of next month after reaching a new collective agreement that put pilots at both segments onto a level field of pay.<br/>

Arajet, a discount airline based in the Dominican Republic, is set to launch flights between that country and Toronto and Montreal this fall.<br/>The announcement by the year-old carrier marks the latest entrant to an already crowded field of low-cost airlines, and comes two weeks after US budget carrier Breeze Airways made a pitch to Quebecers bound for Florida. Unlike many low-price players, Arajet CEO Victor Pacheco said his strategy will bank on a hub-and-spoke model that connects passengers from far-flung airports via the airline's hub of Santo Domingo, his home country's capital. As proof, he said well over half of the 10,000-plus Arajet tickets sold to Canadians so far are for other destinations in the Caribbean and Central and South America, to be reached via connecting flights from the Dominican Republic. "The ULCCs (ultra-low-cost carriers) are mainly point-to-point airlines," Pacheco said. "We're bidding on connections. And if we didn't have that, it would be very difficult then to compete with Canadian carriers." Though no other airlines fly direct between Santo Domingo and Canada, Air Canada, United Airlines and American Airlines all touch down there regularly. Meanwhile, rapidly expanding discount carriers try to woo Canadians with cheap flights to an array of sunny destinations. By the end of next year, Flair Airlines aims to beef up its fleet to 26 planes from 21 now, and Lynx Air to 17 aircraft from its current nine. The latter's inaugural flight only took off in April 2022, while Flair launched in late 2017, illustrating Canada's increasingly congested skies of late. Canada Jetlines also flies to a handful of sun destinations, while Porter Airlines -- though not a budget carrier -- plans to grow its fleet to 79 by 2025 from 46 currently. "I think the pie is growing," Pacheco said. "Competitors do react to us, they lower prices as well. And that means that now more people have access to travel even with them."<br/>

Brazilian airline Azul has completed restructuring obligations it had with most of its lessors and equipment manufacturers, part of a broader shake-up that also saw the carrier delay debt maturities and raise additional capital. The deals, Azul said in a securities filing late on Sunday, include the elimination of lease obligations previously deferred during the COVID-19 pandemic and a permanent reduction in lease payments from their original rates to current market rates. The arrangement had been initially announced in March, when the carrier said it had agreed to give lessors and original equipment manufacturers (OEMs) equity and tradable debt in exchange for lower payments. "Through these agreements, we have significantly improved our capital structure and cash flow by reducing our lease liabilities and payments, while honoring our commitment to fully compensate our partners," CFO Alex Malfitani said in the filing. The airline estimated the restructuring will reduce lease payments by more than 1b reais ($198.73m) per year going forward. As part of the deals, Azul said it has issued $370m of 7.5% unsecured notes due 2030, while also agreeing to give lessors and manufacturers up to $570m in preferred shares of the company valued at 36.00 reais each.<br/>

Latin American operator LATAM is taking a further 13 Airbus A321neos, as it receives the first from a previous commitment to 76 of the twinjet variant. The carrier’s initial aircraft, leased from AerCap, is configured with 224 seats. Registered PS-LBB, the A321neo is fitted with Pratt & Whitney PW1100G engines and will be operated by the Brazilian division of LATAM. It was flown from the Hamburg Finkenwerder assembly site to Espargos in Cape Verde on 30 September, before conducting the onward leg to Fortaleza in Brazil. The delivery flight used a 49% blend of sustainable aviation fuel. Airbus says the airline has reselected the A321neo with an order for 13 more of the type, in order to expand its network. “Our fleet renewal and modernisation strategy is fully aligned with our sustainability commitment and brings us closer to the goal of becoming a carbon-neutral group by 2050,” says LATAM Airlines Group CFO Ramiro Alfonsin.<br/>

Icelandic budget carrier Play is expecting to post its first quarterly profit, having generated a surplus of $12m for the peak summer months of June-August. The airline is forecasting an operating profit of $10m and a net profit of $4m for Q3, which runs to 30 September. But it is predicting a full-year operating loss of $10m – although this will still amount to a considerable improvement on last year’s $44m loss. Play disclosed the outlook during a 28 September trading update. “It shows that Play is a profitable company for the summer and that its business model is working well,” the carrier states. Revenue for the summer nearly doubled from last year, reaching $116m, and the airline points out that it managed to increase unit revenues despite a 70% capacity hike. Play contrasts this performance with that of former Icelandic budget carrier Wow Air which, it says, suffered from a decline in unit revenues as it was growing over the period 2015-17. “After a period of steep growth, we have now reached the required scale to run an efficient and profitable operation and can begin to focus on optimising our operation,” says CE Birgir Jonsson. Play is looking at the possibility of expanding its fleet to 14 aircraft – up from the current 10 Airbus A320neo-family jets – in 2025. It has already signed letters of intent for two more A320neos, and says the additional aircraft will be introduced if they can be “secured at the right terms”. Play says it “plans to post an operating profit” in 2024. “Our cash position remains solid and, when adjusted for investments in fleet expansion, we have reached a neutral cash flow,” says Jonsson. “We do not intend to raise new equity in the current market environment.”<br/>

Malta’s government will shut down loss-making airline Air Malta in March next year and immediately replace it with another flag carrier after the European Union refused to allow a fresh injection of state aid, Prime Minister Robert Abela said on Monday. The new airline will retain the Air Malta name and aircraft, Abela told a press conference. He said the transition would be largely seamless and services would not be affected although unprofitable routes would be discontinued. Air Malta operated to 37 destinations in 2019. The new airline will operate to 17. Booked Air Malta passengers will be offered a refund or rebooking with the new airline. Air Malta workers will be re-employed by the new airline. The new arrangement was agreed with the European Union and is broadly similar to what the EU agreed with the Italian government a few years ago when it closed down Alitalia and started a new airline, ITA.<br/>

Iran-backed Houthis have prevented a Yemenia plane from taking off from Sanaa Airport in a bid to compel the national airline to reverse its decision to suspend flights to Amman. A Yemeni government official told Arab News on Monday that the Houthi militia seized a plane en route to Yemen’s southern port city of Aden, shortly after the company announced that it would suspend the only international flight from Sanaa Airport due to the Houthis’ ban on the use of its funds in Sanaa-based banks. The official added that the company needs its $80m in the Houthi-controlled banks to pay salaries, maintenance, and other operational expenses, as well as installments for recently purchased aircraft. “The company faces significant financial obligations, such as payments and purchasing two new aircraft. The (Houthi) group has rejected all settlement proposals for this dispute,” the Yemeni official — who wished to remain anonymous — said, adding that the funds had accrued in the banks over a long time, even before the April 2022 restart of commercial flights between Sanaa and Amman. The official added that the funds had “increased from $70m to more than $80m. More than 70% of the company’s revenue comes from Sanaa.” They said: “However, Yemenia now pays for its travels with revenues from its southern and eastern governorates’ offices. The group wants to confiscate the amount.” Yemenia resumed commercial flights from Houthi-controlled Sanaa Airport to Amman in April 2022 as part of a UN-brokered ceasefire that permitted ships to berth at the Hodeidah seaport.<br/>

Middle Eastern carrier Emirates has reached an agreement with energy firm Shell Aviation covering the supply of blended sustainable aviation fuel at its Dubai hub. Emirates says the agreement centres on the supply of 300,000gal of fuel, with initial deliveries set to take place by the end of this year. The airline says it will track delivery and use of the fuel through a digital platform, Avelia, which uses blockchain technology to provide a book-and-claim solution. Emirates says the deal marks the first time sustainable fuel will be supplied through the Dubai airport system. The airline first carried out a sustainable-blend flight in 2017, with a Boeing 777 out of Chicago, and it uses blended sustainable fuel on services from Paris, Lyon and Oslo. “We hope that this collaboration develops further to provide an ongoing future supply of [sustainable fuel] in our hub, as there are currently no production facilities for [such fuel] in the United Arab Emirates,” says Emirates president Tim Clark. Emirates will purchase the physical fuel while Shell Corporate Travel will purchase associated environmental attributes linked to the fuel, to help decarbonise business travel. The Avelia platform will enable airlines and corporates to “both share the environmental benefits” of the fuel, says the carrier. Shell Corporate Travel vice-president Chu Yong-Yi says the Dubai agreement is an “important milestone” and shows how different parts of the aviation chain have roles in “unlocking progress” with sustainable fuel.<br/>

Saudi Arabian flag-carrier Saudia has unveiled a new colour scheme, updated as part of the kingdom’s broader modernisation effort known as Vision 2030. The airline unveiled the new livery during an event in Jeddah. It features a green base colour, with shades of blue and sand, and retains the Saudia palm-and-swords logo. “The name and logo of Saudia are integral parts of the kingdom’s aviation history and development, and our people share a special emotional connection with the brand,” says Saudia Group director general Ibrahim Al-Omar. “We have incorporated this rich heritage into our new identity, adding elements that reflect our visionary approach.” Saudia operates a fleet of some 140 aircraft and aims to expand a network that covers more than 100 destinations. “The rebrand marks the beginning of a new era for Saudia, introducing innovative concepts in terms of customer services with a strong focus on digital aspects and enhancing the guest experience by celebrating Saudi culture,” it adds. Saudia states that the kingdom has a national aviation strategy which aims to transform the airline in to a “leader in the global industry”, and support the ambition to bring 330m visitors to the country by the end of the decade.<br/>

GallopAir, a new Brunei-based airline, is in talks with potential investors and plans to launch operations after taking delivery of its first Chinese aircraft in the second half of next year, its CE told Reuters. GallopAir last month announced a $2b deal to buy 30 regional and narrow-body jets from Commercial Aircraft Corporation of China (COMAC). It became the first carrier outside China to order the state-backed firm’s narrow-body C919 jet. It is in discussions with “several prospective investors”, and is seeking opportunities for collaboration and investment from the Brunei government and local companies, CEO Cham Chi said in an emailed statement to Reuters. Chi said the airline, owned by Chinese businessman Yang Qiang, expects to take delivery of its first ARJ21 aircraft in Q3f 2024 pending regulatory approvals. The delivery of the 30 planes will occur in phases over the next several years, and will depend on the production schedule, regulatory approvals and the company’s operational readiness, he added. “Our priority is to have the ARJ21 aircraft certified first as our first phase of operation is to operate the ARJ21,” Chi said. “Its capacity and range are well-suited to our initial routes and the budget-conscious market segment we aim to serve.” GallopAir will start with short-haul flights and then expand to medium-haul routes serving Southeast Asia, North Asia and the Southwest Pacific regions, he said. Brunei, home to fewer than 500,000 people, is not a major tourist destination but GallopAir said it aims to turn the country into a regional aviation hub.<br/>

Thai low-cost operator Nok Air widened its full-year net loss in 2022 despite a significant increase in passenger travel revenue, as the carrier was hit with a heftier fuel bill. For the year to 31 December 2022, Nok posted a net loss of Bt2.6b ($70m), compared with the Bt1.4b loss in 2021, when it gained on debt restructuring. The carrier, which is still under business rehabilitation, recorded a 17.5% increase in full-year revenues to Bt7.5b, with passenger revenue rising nearly three-fold year on year. Nok carried close to 5m passengers in 2022, three times the number it carried in 2021, when pandemic restrictions were largely in place. Full-year traffic rose four-fold, while capacity doubled year on year. Still, the airline blamed the higher cost of fuel – coupled with a rise in maintenance costs from increased flying – for steeper losses. Full-year expenses grew 29% to Bt10b, led by a staggering 93% jump in operations-related costs. More significantly, Nok disclosed a “significant” six-fold jump in fuel costs to Bt3.2b. The airline ended the year with Bt699m in cash and cash equivalents, lower than the Bt1b it had at the start of the year. In brief remarks attached to the financial results, Nok outlined several plans to “enhance sustainable operations and enhance its competitiveness”. To increase revenue, the carrier says it will “explore new business channels” like cargo, as well as adjust its fares “in line with market demand”. It also promises to increase work efficiencies to keep its costs down, as well as better manage its aircraft lease costs, by improving its utilisation rates.<br/>

Rex has formally launched its new frequent flyer program to rival Qantas and Virgin’s, with customers able to redeem points on services from mid-November. The airline also said construction would begin “immediately” on new airport lounges in Adelaide, Sydney, Melbourne and Brisbane. Passengers can earn up to 7 points for every dollar spent, with a last-minute ‘ultimate’ flight from Melbourne to Sydney costing 7,400 points. In the last few years, loyalty programs in Australia have become increasingly competitive, with numerous attempts by brands to make it easier for customers to switch. There was even a high-profile court battle over Virgin Velocity CEO Nick Rohrlach after he sensationally “defected” from Qantas Frequent Flyer in 2021. Rex previously had a smaller scheme for corporate travel. However, the new ‘Rex Flyer’ offering is set to be far more comprehensive than rival services offered by Qantas and Virgin. It follows the smaller airline launching 737 services in March 2021. Rex said in a statement that passengers can register for Rex Flyer now and immediately begin earning points and status points across both its domestic and regional networks.<br/>