Mexican low-cost carrier Volaris has revised its full-year capacity and earnings expectations due to additional inspections of its Pratt & Whitney geared turbofan (GTF) engines. The company said on 10 October full-year operating revenue will be around $3.2b, at the lower end of prior expectations. Capacity as measured in available seat miles (ASMs) will rise 10% rather than the 13% it had forecast earlier. The company also now expects an EBITDAR margin for 2023 of about 26%, down from an earlier expectation of 29%-31%. “The accelerated inspection program will include engines in our fleet,” says CE Enrique Beltranena. “The Volaris team is actively executing plans to mitigate the engine inspection impact, including a project to optimise our route network. We anticipate our growth rate will slow while we work through the required engine shop visits.” He adds that the airline will “continue to modify our plans as we get more detail from P&W”. He says the company was forced to lower its earnings expectations due to “the continuing volatility in jet fuel prices and the effect on ASM production as we work through the engine issues and its projected impact on our network and profitability”. In July, RTX, the parent company of Pratt & Whitney, first disclosed that 1,200 of its next-generation turbofan engines would need to be returned to the company for inspections and partial disassembly, citing possibly defective high-pressure turbine disks that require removal and inspection ahead of regular maintenance schedules. In September, RTX detailed the scope of the issue, saying airlines will need to remove hundreds of the engines from the wings of Airbus A320neo-family jets by the end of 2024 to inspect for the defective high-pressure turbine and compressor discs. Volaris is scheduled to publish Q3 earnings on 23 October.<br/>
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Spanish low-cost airline Vueling is facing an antitrust investigation in Italy over hand luggage fees and online profiling, the Italian Competition Authority (AGCM) said on Wednesday. According to the regulator, the carrier does not provide clear information to customers that the price for hand luggage varies depending on whether tickets are bought via its website or via its mobile app. In addition, "it would seem that the device used by the consumer is also used as a parameter to proceed with customer profiling in such a way as to differentiate the purchase price of the ticket," the AGCM said in a statement. Such practices, if proven, could damage consumers by offering them "incomplete, non-transparent and omissive information" on how Vueling sets prices for luggage, the authority said. Vueling said in a statement that its "baggage pricing policy is transparent and complies with the regulations", it "does not distinguish between devices, nor between web or app channels" and is properly advertised "throughout the purchase process". It added that it would "work closely" with Italian authorities "to provide all the necessary information and clarify any doubts". The Barcelona-based airline is part of the International Airlines Group (IAG), which also owns British Airways, Iberia and Aer Lingus, among others. In August, Spain's Ministry of Consumer Affairs said it had opened an investigation into Vueling and other low-cost airlines over hand luggage and other fees, which result in the price most consumers pay being higher than initially advertised.<br/>
A catering truck has crashed into a plane while it was arriving at London Stansted Airport. The Ryanair flight had just arrived from Luxembourg and was pulling into its aircraft stand when the incident took place. Surveillance camera footage shows the Boeing 737-800 as it lands on October 4, 2023, before the collision with the catering truck. The driver of the vehicle slammed on the brakes but failed to avoid the impact with the wing of the aircraft. The roof of the truck damaged the leading edge slat of the right wing of the plane. No passengers were injured in the accident and the aircraft may need several days to be fixed.<br/>
Grounded Indian airline Go First has received an expression of interest (EoI) from Jindal Power Ltd, two banking sources and two people aware of the development told Reuters. An EoI is the first step in the bidding process and may not result in a financial bid. "Jindal Power was the sole successful applicant whose expression of interest was accepted by banks," said a banker with a state-run bank that has exposure to Go First. The power generation company "will be conducting proper due diligence and post which it could submit a formal bid", said the banker, who did not wish to be named as he was not authorized to speak to the media. Go First's resolution professional, who conducts the insolvency process, and Jindal Power did not immediately respond to Reuters requests for comment. The last day to submit EoIs was Sept. 28, the banker said, and a committee of lenders met to assess the applications after that. Two other foreign entities had also submitted EoIs to bid for Go First, but their applications were rejected for failing to meet the criteria set by lenders, another banker said. The Go First bankruptcy filing lists Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank among its creditors to whom the carrier owes a total of 65.21b rupees ($784.60m). Aircraft lessors of Go First are locked in a legal tussle with the company after they were blocked from repossessing planes due to a moratorium imposed by Indian courts. However, the government amended its insolvency law earlier this month to exclude leased aircraft from assets that can be frozen, to bring India's bankruptcy laws into line with a treaty protecting the rights of foreign lessors. It is unclear whether the amended law would apply to Go First since its insolvency proceedings are still underway.<br/>
Start-up carrier Beond has formally unveiled its first aircraft at an event in the Maldives, from where it aims to conduct initial services to European cities. Beond will commence services with an Airbus A319 (8Q-FBA) which was originally delivered to EasyJet in 2004. It aims to operate from Male, the Maldivian capital, to Munich and Zurich, refuelling in Dubai, from mid-November. The airline has also listed Riyadh as a destination. The company, which says it has obtained an air operator’s certificate, is pitching itself as a “premium leisure” airline. Its A319 configuration includes 44 lie-flat seats and the carrier is promising such amenities as “fine dining”. CE Tero Taskila – formerly with Gulf Air, Air Baltic and Estonian Air – says the carrier will be a “lightweight, low-cost operation” and intends to expand the Airbus single-aisle fleet to connect more cities to the Maldives. Beond will display the A319 at the Dubai air show in November, and states that additional Airbus jets will join its fleet later this year and in early 2024. Taskila previously indicated that Beond would use an A321 fitted with 68 premium-class seats. The company disclosed in August that it had obtained more than $17m in seed capital from a group of investors. Beond says this reflects “strong confidence” in the airline’s potential. It has not identified the investors behind the company, beyond stating that they include “family offices, angel investors and strategic partners”. CCO Sascha Feuerherd says the carrier aims to “exceed every expectation” from “the moment [passengers] book with us”.<br/>
Malaysian start-up MYAirline abruptly suspended operations indefinitely – days after its founding CEO stepped down – as it cites “significant financial pressures”. The low-cost operator, which began operations in December 2022, says the “painful decision” comes amid a shareholder restructuring and recapitalisation exercise. “We have worked tirelessly to explore various partnership and capital raising options to prevent this suspension. Unfortunately, the constraints of time have left us with no alternative but to take this decision,” states MYAirline. It was first reported in Malaysian media outlet New Straits Times that MYAirline - the country’s newest operator - has struggled financially in recent months. The paper also reported, citing inside sources, that a new investor who was meant to acquire a controlling stake had pulled out at the last minute, prompting the operational shutdown. In its latest statement, MYAirline declines to comment on when it can restart operations. It notes: “The board, shareholders and all of us at MYAirline will be working tirelessly to resume operations as quickly as possible but at this stage we are unable to commit to any timeline.” The suspension comes two days after founding chief Rayner Teo announced his resignation, citing health issues. Teo, a former AirAsia executive, headed the Kuala Lumpur-based low-cost carrier since its inception and through its launch in December 2022. The airline is currently helmed by operations chief Stuart Cross who is stepping in as interim CEO. At that time, MYAirline said it was in the final stage of discussions to secure new “strategic partnerships” for future growth. The airline had on 9 October also received a two-year extension of its air operator’s certificate. <br/>