Southwest and its pilots’ union have reached a new preliminary labor agreement, ending months of tense negotiations. Southwest is the last of the largest US airlines to strike a deal that is set to give pilots big raises. The union didn’t immediately provide details about the pay increases, but the five-year deal is worth about $12b, Casey Murray, president of the Southwest Airlines Pilots Association, told CNBC on Tuesday. In comparison, larger rival United Airlines’ new four-year pilot contract is worth about $10b, according to the aviators’ union. Southwest’s pilots will need to approve the contract. CNBC reported earlier this month that the two sides were close to a deal. “We are pleased to reach an Agreement in Principle with the Southwest Airlines Pilots Association for Southwest’s more than 10,000 Pilots,” Southwest said in a statement. “The AIP is a key milestone in the process, and we look forward to the next steps.” American, United and Delta finalized pilot deals earlier this year that were worth billions and gave aviators double-digit pay hikes. The Covid-19 pandemic derailed negotiations across the sector, pausing pay increases across the highly unionized industry even when demand returned and inflation hit multidecade highs. As travel demand snapped back, pilots, flight attendants and other aviation workers have pushed for not just higher pay, but also better working conditions such as more predictable schedules. Southwest pilots and flight attendants have complained about erratic schedules, particularly during disruptions. One driver of Southwest’s holiday meltdown last year, which stranded some 2m customers, was old software that left crews out of position for rescheduled flights. <br/>
unaligned
US regional air carrier JSX on Tuesday announced plans to buy more than 130 hybrid-electric aircraft from three start-up companies, with options that could bring orders past 330 planes. The carrier made firm orders for 50 19-seat Era aircraft from France's Aura Aero, 50 30-seat ES-30s from Sweden's Heart Aerospace, and 32 9-seat aircraft from US-based Electra. If all options are included, JSX could buy up to 150 aicraft from Aura Aero, 100 aircraft from Heart Aerospace and 82 aircraft from Electra. The companies did not disclose the value of the deal. Started in 2016 by JetBlue Airways founding executive Alex Wilcox, JSX operates "semi-private" flights where customers book individual seats and fly in and out of private terminals. The order is a key endorsement for fixed-wing electric passenger planes in the world's busiest regional market, with JSX stating that the new aircraft will lower carbon emissions and operating costs while expanding flight options at over 2,000 US airports. However, analysts have said challenges remain over weight and power of batteries. JSX plans to accept its first hybrid-electric aircraft in 2028. It currently operates 48 Embraer E145 family aircraft. Electra and Heart Aerospace expect their electric planes to enter commercial service in 2028, while Aura Aero said its plane will enter service before 2030.<br/>
Turkish leisure carrier SunExpress has signed a memorandum of understanding to double the number of aircraft it damp-leases to South African Airways for the winter 2024-2025 season. Two SunExpress Boeing 737-800s are operating for SAA for six months during the current winter season, the Turkish Airlines-Lufthansa joint venture says, with four earmarked under the MoU for the subsequent winter period. The arrangement includes maintenance and cockpit crew, SunExpress states, and would represent an “add-on” to the current deal. “Over the next decade, we will more than double our fleet, reaching a 150-aircraft fleet by 2033,” says SunExpress chief executive Max Kownatzki. “These kinds of partnerships enable us to efficiently utilise our fleet, mitigating the impact of our seasonality.” Indeed, on SAA, Kownatzki told FlightGlobal at the recent Dubai air show: “The counter-cyclicality between their summer and our winter is fantastic.” SunExpress placed a firm order for 45 737 Max jets in Dubai, as part of its expansion effort. For its part, SAA resumed flights in September 2021 following a formal business restructuring process and has a fleet that only just tips into double figures. “The additional aircraft will support our operations to meet the growing customer demand during peak seasons and mitigate our management of the global aircraft availability crisis,” says SAA chief executive John Lamola of the expanded arrangement envisaged under the MoU. SAA is currently using two SunExpress jets to operate 12 domestic flights a day to Cape Town and Durban from Johannesburg. The two carriers say they are also exploring “options for a multi-year reciprocal capacity support and further co-operation with regards to maintenance, training and commercial support”.<br/>
EasyJet shareholders signed off on an almost $20b aircraft order from Airbus, making the carrier one of the planemaker’s biggest customers in Europe. The British low-cost airline held a general meeting with shareholders on Tuesday in Luton, London to get approval for its largest aircraft order yet: the purchase of 157 A320neo family planes with an option to add 100 more. The company first announced the order in October and said deliveries would run through 2034. The mega-order will pave the way for fleet renewal by replacing the airline’s older A319 aircraft and about half of its A320ceo jets. EasyJet’s fleet is entirely made up of Airbus planes, which keeps maintenance and training costs low compared to operating aircraft from different manufacturers. EasyJet is also converting 35 of its A320neos which it previously ordered into the A321neo model for delivery through 2028. The purchase and conversion value is based on the Airbus list prices, though customers typically get steep discounts for major orders. All eyes were on Stelios Haji-Ioannou, EasyJet’s founder and biggest shareholder with a 15% stake, who at the height of the pandemic engaged in a battle with the carrier’s board seeking a cancellation of the carrier’s Airbus order, citing a lack of demand. In the end, 99.94% of EasyJet’s shareholders voted in favor of the purchase. EasyJet is among the many airlines which have placed giant orders for aircraft this year. Market leader Ryanair, Indigo and United Airlines have all announced mega deals from Boeing and Airbus for their workhorse narrowbody jets.<br/>
Middle Eastern lessor Dubai Aerospace Enterprise has become the latest to secure a settlement from Russian flag-carrier Aeroflot over claims on aircraft leased to the airline. DAE puts the value of the settlement – covering seven aircraft and their engines – at $118m. As with previous settlements on aircraft retained by Russia in the wake of the Ukrainian conflict, the transaction was conducted with proceeds from Russian insurance firm NSK. DAE says the transaction was carried out in “full compliance” with all applicable sanctions regimes. “Each DAE-affiliated entity involved in the leases to Aeroflot has released its claims against NSK, Aeroflot and their international reinsurers,” it adds. Cirium fleets data indicates a DAE leased aircraft including a batch of Airbus A320s to Aeroflot. DAE says it is conducting discussions over insurance settlements of claims with respect to several other Russian airlines. “It is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds,” it states. “DAE will continue to actively pursue its litigation in the English courts under its own insurance policies.” It adds that it will continue efforts to mitigate losses with respect to aircraft previously leased to other Russian carriers.<br/>
Shortly after reporting a quarterly loss, SpiceJet Ltd. has announced it is considering acquiring the insolvent Go Airlines India Ltd., which stopped flying in May, with a goal of possibly combining the two airlines. The no-frills carrier is planning to submit an offer after conducting due diligence of Go, it said in a stock exchange filing Tuesday. SpiceJet intends to create a “strong and viable airline in a possible combination” with itself. SpiceJet earlier this month said it is seeking to raise 22.5b rupees ($270m) through preferential shares and warrants after reporting a net loss of 4.32b rupees for the three months through September. Go has canceled all scheduled flights until Feb. 4 as it teeters on the brink of collapse. Its CE stepped down at the end of November, saying he couldn’t get the airline flying again and that staff hadn’t been paid for six months. Jindal Power Ltd., which was a potential buyer under Go’s insolvency resolution process, has decided against making a bid. Go has a fleet of 54 Airbus SE A320neos, all of which are grounded. <br/>