unaligned

The union representing Southwest Airlines Co.’s flight attendants called for a new vote on a contract offer it rejected last week after its voting service provider told them there had been a data leak, a charge the vendor denies. In a Facebook video, Lyn Montgomery, president of Transport Workers Union Local 556, told members that TrueBallot told them “their system was unsecured, leaving it open to vulnerabilities.” This, she said, left the board “no choice but to rerun the election with a trusted vendor.” TrueBallot President John Seibel said the union’s claims are “patently untrue.” In a phone interview, he said that a Dec. 8 livestream of voting results inadvertently showed a page that was supposed to be secure. Some people copied the URL and used it to get to a list of member names, emails and whether they voted — but not how they voted. The voting had already closed, he said, and nothing could affect the outcome. ‘It’s not good” Seibel said of the list being exposed. “But the integrity of the election was not affected.” Union officials did not immediately respond to a request for comment. The board said in the video that the new vote was not intended to overturn the original results announced last week, when the contract was voted down 11,761 to 6,635. It would have provided an immediate 20% pay increase, 3% annual boosts through 2028 and retroactive wages. The union did not immediately set a date for a new vote. It said it would launch an investigation and has scheduled a meeting with company officials Friday. <br/>

The Aircraft Mechanics Fraternal Association (AMFA) — which represents WestJet Airlines’ aircraft maintenance engineers (AMEs) — has taken legal action against the airline, filing unfair labor practice charges with the Canada Industrial Relations Board (CIRB). According to an AMFA press release, the dispute centres around WestJet’s creation of the new position of operations manager (OM) and the subsequent transfer of safety-sensitive maintenance coordination work that was previously performed by bargaining unit members. In an official complaint filed by AMFA against WestJet on Dec. 11, the union requested that CIRB become involved with the matter “due to the impact on aviation safety arising from WestJet’s elimination of the aircraft maintenance lead (AML) and inspection crew lead (ICL) positions, and the transfer of bargaining unit work to the newly created operations manager (OM) position.” CIRB certified AMFA as the representative of WestJet’s AMEs and other aircraft maintenance employees on March 30, 2023. WestJet announced the creation of the OM position in mid-April, according to the AMFA complaint, which has since sparked tensions within the airline’s maintenance operations — leading to concerns about impacts on safety culture. AMFA’s charges allege that WestJet’s unilateral decisions have caused “disarray within maintenance operations and hostility among co-workers whose integrated efforts are critical to maintenance safety culture.” The union also claims that the airline’s actions violate the law by making changes to working conditions without prior negotiations with the union, especially concerning the transfer of work outside the bargaining unit.<br/>

LATAM Airlines projected on Thursday record earnings for next year of between $2.6b and $2.9b as passenger numbers grow and it reduces its debt load after coming out of bankruptcy last year. The expected record earnings, measured in adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR), would top the maximum expected for this year of $2.5b. The airline also expects passenger growth of between 12% and 14% next year, topping 2019's growth rate within the first quarter and estimates revenues of $12.4b to $12.8b. Passenger growth, as measured in the metric of available seat kilometers, is also expected to increase between 7% and 9% in the Brazil domestic market, the carrier added. The group's cargo subsidiaries expect growth of between 10% to 12% in their operations, as measured in available ton kilometers, next year. LATAM also estimates it will close 2024 with net leverage of between 1.8 and 2.0 times, "which represents an approximate 50% reduction from its leverage level following its successful exit from the Chapter 11 restructuring process," the carrier said in a statement. The airline also expects to end 2024 with between $2.8b and $3.0b in liquidity, "as well as maintaining its solid capital structure," it said.<br/>

Canadian carrier WestJet Airlines intends to launch flights from its base in Calgary to Incheon International airport in Seoul with three-times weekly flights starting on 17 May. Still subject to regulatory approvals, the long-haul flights will be operated with the carrier’s fleet of seven Boeing 787-9s, supporting ”continued establishment of the airline’s global hub in Calgary”, WestJet said on 14 December. “It is with great pleasure that WestJet will serve as Alberta’s only direct link to South Korea, furthering our 787 global connectivity from our home city of Calgary,” says CCO John Weatherill. The flights will be available for booking early next year, WestJet says. Regular service to South Korea will complement WestJet’s daily flights from Calgary to Tokyo Narita International airport. The Calgary-Seoul connection comes as WestJet ”furthers its support of establishing business ties across the Pacific”. The proposed flights also represent “a signficiant opportunity for WestJet Cargo”, which will make use of bellyholds of the 787s for its trans-Pacific operations. <br/>

Canadian leisure carrier Air Transat said on Thursday it had reached an in-principle agreement with the union representing its flight attendants, averting a possible strike during the busy holiday travel season. The deal to renew the Transat collective labor agreement, which is subject to a vote, comes as flight attendants at several US carriers protest for better pay and work rules in their new contracts. Transat's release said details of the agreement will be presented to members in the coming days. "Travelers can enjoy their travel plans with peace of mind," it said. United Airlines flight attendants, who are demonstrating nationwide on Thursday, as well as their counterparts at other carriers, like Transat, are demanding an end to an industry practice of not paying for their time during boarding and waiting around the airport before and between flights. Currently, they are paid only for the period when the aircraft is in motion. Delta is the only U.S. carrier that pays its flight attendants during boarding time. Earlier this month, flight attendants at Southwest Airlines (LUV.N) voted down a tentative five-year contract deal that would have made them the highest paid cabin crews in the industry. The agreement, however, did not provide for boarding pay.<br/>

Up to a third of Canadian leisure carrier Air Transat’s Airbus A321LRs could be grounded late in 2024 due to its Pratt & Whitney geared turbofan (GTF) engines needing to come off wing for inspections. The extent of the carrier’s engine issues were revealed by CE Annick Guerard, who painted an optimistic picture of growth in 2024 during parent company Transat AT’s fiscal fourth quarter earnings call on 14 December. But she also acknowledged that the carrier could face significant headwinds from Pratt & Whitney’s recall of hundreds of GTF engines to inspect for defective high-pressure turbine and compressor discs. As a result, hundreds of A320-family aircraft will be grounded across the airline industry through 2026. “This situation involves anticipated inspection and removals of certain engines that power A321LR aircraft,” Guerard says. “We currently have three aircraft impacted and the numbers could reach five or six by the end of fiscal 2024.” Air Transat operates 15 Airbus A321LRs, two of which are currently in storage, according to Cirium fleets data. It holds unfilled orders for five more of the type. It plans to mitigate the groundings by extending existing aircraft leases, using spare engines and transferring some long-range routes to its fleet of 12 A330s. “While these reserves will involve short-term incremental cost, our objective is to maintain our position in the market,” Guerard says. <br/>

As several lower-cost carriers fight for space in the Canadian travel market, Porter Airlines CEO Michael Deluce told Canadian Press that at least one of them won’t survive the next two years. “I don’t believe that the traction’s there for the multitude of ULCCs that are in the market,” Deluce said in an interview with the news agency. “I would say not all of those plans will come to fruition.” Deluce did not venture an opinion on the viability of specific carriers, but he’s confident that Porter will survive any shakeout. 2023 was a huge year for the carrier that built its business on short-haul turbo-prop flights from Billy Bishop Toronto City Airport. Over the past 12 months Porter has welcomed 25 new Embraer E195-E2 jets, hired 300 pilots and inaugurated many new routes.<br/>Porter recently placed a firm order for 25 more Embraer jets, with a list price of US$2.1b. It had previously ordered 50 of the narrow-body Brazilian planes, which Porter offers in a 132-seat 2x2 configuration. But Porter isn’t the only Canadian carrier with big growth plans. By the end of next year, Flair Airlines aims to grow its fleet to 26 planes from 21, while Lynx Air aims to almost double its fleet to 17 from its current nine. Another recent entrant, Canada Jetlines says it will add a dozen planes to grow its three-aircraft fleet to 15 in just over a year.<br/>

Delays by Boeing in delivering 737 Max have led Brazilian discount airline Gol to significantly par back its fleet expansion plans through 2028, leaving it unable to fully capitalise on increasing demand for air travel. “We are seeing the market be healthy at this point and we are not able to grow at the pace we had planned,” Gol CE Celso Ferrer says during the company’s investor day on 14 December. “We were counting on those planes to renew the fleet…This is constraining our growth.” Last year, Gol, which only operates 737s, expected to have 53 737 Max in its fleet by now.<br/>But quality and supply chain problems have kept Boeing from reaching its delivery goals, leaving Gol with just 39 737 Max at end-September. The carrier’s total fleet stood at 136 aircraft – including 737 Max and 737NGs – when the month closed, and Gol’s capacity (in available seat kilometres) remains at only 89% of the pre-pandemic 2019 level. Gol has now revised its multi-year fleet plan to reflect aircraft-delivery delays. Its latest forecast, disclosed on 14 December, calls for the airline to have just 130 737s in 2025 and 140 (including 108 737 Max and 32 737NG) in 2028. That is 20 fewer aircraft in each year than Gol predicted in the forecast it released last year.<br/>

Another Indian airline founded by a billionaire is on the brink of shutting down for good, having tried and so far failed to attract a savior after entering bankruptcy protection in May. Go Airlines India’s chances are fading. CEO Kaushik Khona quit at the end of November, saying he couldn’t get the carrier flying again and that staff hadn’t been paid for six months. Go flight attendants and pilots are looking for jobs elsewhere. Meanwhile, Jindal Power Ltd. — Go’s sole potential buyer under its insolvency resolution process — has decided not to bid. Local media reported that Jindal couldn’t assess Go’s value because it is unclear how many planes it will have, after the aviation regulator signaled its aircraft should be returned to lessors. Go, which has 54 Airbus SE A320neos stuck on the ground, didn’t respond to requests for comment. Jindal also didn’t respond to requests for comment. If Go collapses for good, it would be the 12th Indian airline to do so this century, despite all having a vast and increasingly mobile population at their door. Go’s backers spoke of the challenge of operating with prohibitively high costs, particularly on fuel, and simultaneously needing to offer cut-price fares. Go’s creditors, including state-run Central Bank of India, Bank of Baroda and Deutsche Bank AG, may sell assets in a piecemeal fashion, said Sandeep Bajaj, a lawyer who represented some operational creditors in the insolvency case of Jet Airways India Ltd. Go owed about 65b rupees ($780m) to financial creditors as of April and its total liabilities were 115b rupees.<br/>

Virgin Australia has reached a cabin crew pay deal with unions that had called for strikes ahead of the busy end-of-year travel season, the airline said on Thursday. The in-principle agreement is for 15%-plus salary increases over three years, depending on an employee's skill and tenure, Virgin Australia said. "The overall cost of this agreement is in line with the agreements we have reached with other work groups," the statement said. The Cabin Crew Enterprise Agreement was negotiated with the Transport Workers' Union of Australia (TWU) and the Flight Attendant's Association of Australia (FAAA). Virgin cabin crew earlier this month voted in favour of 24-hour stoppages unless an agreement was reached, according to TWU and FAAA statements. Bain Capital-owned Virgin Australia said in October it had returned to a profit for the first time in 11 years for the fiscal year 2023, buoyed by a strong recovery in travel demand following the COVID-19 pandemic. "With the peak season upon us, it's a relief for everyone that protected industrial action won't be needed. Good, secure jobs are the answer to rebuilding aviation," the TWU said in a statement.<br/>