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Mexican low-cost carrier Volaris expects reduce its full-year capacity in terms of available seat miles (ASM) by between 16-18% in 2024 as it contends with increased inspections of some of the Pratt & Whitney PW1100G geared turbofans (GTFs) powering its Airbus A320neo-family jets. In October Volaris said about 73 aircraft – 51 Airbus A320neos and 22 A321neos – in its 126-strong fleet may be affected by the engine recall over the coming years. Volaris at that time had 16 of the Airbus narrowbodies grounded due to the problem. Volaris has now issued Q1 and full-year guidance for 2024, both of which estimate ASM capacity will be reduced by between 16-18%. By contrast the airline increased capacity nearly 18% in Q1 2023, though this fell to an increase of 10% for the year as a whole. ”For 2024, Volaris remains focused on executing its business plan to serve robust demand in its domestic and international markets and drive profitable growth despite constraints due to accelerated GTF engine preventive inspections,” the airline says.<br/>

WestJet says multiple days of frigid temperatures in the Prairies are having a "compounding" impact on operations. The airline was forced to cancel at least 120 flights on Sunday. It has cancelled at least 464 flights since Thursday, according to a post on the company's website. Extreme cold rendered de-icing fluid ineffective in some western Canadian cities for the second morning in a row, said WestJet public relations strategist Madison Kruger. "Our crews are working overtime, our equipment is in the cold," she said. "These flights are all interconnected. It's an interconnected network. So when you get to your fourth day of this, and you never fully are able to recover your operation from the first day, the impacts just continue to grow." WestJet did manage to recover several aircraft left stranded by the weather across their network, added Kruger, which "put [the airline] in a better position." She also said the airline is mandating crew rests to keep employees safe while operating in the bitter cold.<br/>

Aer Lingus pilots have overwhelmingly rejected an 8.5% pay increase tabled by a company tribunal, saying it fails to reflect pandemic-era sacrifices. Pilots at the Irish airline have been pursuing a pay claim lodged in October 2022 as travel began its post-Covid recovery. It emerged on Friday that members of the Irish Airline Pilots’ Association in Aer Lingus voted by a 98.1% majority against a pay deal recommended by a company tribunal. According to Ialpa, part of trade union Fórsa, the vote, in which 96% of members participated, rejects an 8.5% pay increase plus a once-off 1.5% payment. Captain Mark Tighe, Ialpa president, said the offer did not reflect the sacrifices made by pilots to sustain the airline during the pandemic. “Reduced pay, terms and conditions were accepted by Aer Lingus pilots during the pandemic to help Aer Lingus with its recovery,” he said.<br/>

Lufthansa Group’s City Airlines unit has received its first aircraft ahead of launching services in the upcoming summer season. The CFM International CFM56-powered Airbus A319 is the first of four that the regional carrier is set to take. The aircraft – which most recently flew for Eurowings – touched down in Munich on 9 January having received its new livery at a paintshop in Munster, Germany. Lufthansa says the twinjet is still to have its interior retrofitted with Lufthansa colours and that it ”may be used for flight training” before entering service. The A319s are a stopgap before City Airlines begins receiving Airbus A220s in 2026, from an order placed by Lufthansa Group in December. The carrier – which will fly under the Lufthansa City brand – was established in 2022 and received its AOC in June 2023. It will operate from Lufthansa’s Frankfurt and Munich hubs, alongside regional unit Lufthansa CityLine. Lufthansa Group CE Carsten Spohr has previously suggested City Airlines offers an alternative to CityLine, which will not be permitted, under a union agreement, to operate aircraft with more than 75 seats from 2026. All of CityLine’s current fleet of around 50 aircraft – including A320-family jets, Embraer 190s and Bombardier CRJ900s – exceed that seat limit. Spohr also previously suggested that City Airlines would provide a home for pilots at the former Germanwings operation, which ceased flights in 2020.<br/>

A co-founder of OnlyFans is backing an airline startup that wants to rival British Airways. Tom Stokely, a member of the Essex family that launched the adult subscription site, has emerged on the board of Global Airlines – a new carrier hoping to offer flights from London Gatwick to New York and Los Angeles. Stokely, his brother Tim and father, Guy, set up OnlyFans in 2016. The subscription website, which is known for hosting adult content, saw explosive growth during the pandemic. The Stokelys sold off a majority stake to US-based porn baron Leonid Radvinsky in 2019 for an undisclosed price. OnlyFans made a profit of GBP36m on subscription revenues of GBP1.7b in the year of the sale. During his time at OnlyFans, Tom Stokely served as the platform’s COO. The money he made from the site has since allowed Stokely to acquire shares in Global Airlines. The business was founded three years ago by James Asquith, a former banker who broke the Guinness World record as the youngest person to fly to all 196 sovereign nations. Stokely is also a former banker and first crossed paths with Asquith last year when he joined the advisory board of his travel business, Holiday Swap. At the time of his appointment, Holiday Swap – an app that lets homeowners around the world rent each others’ properties – hailed Stokely as a “skilful businessman” who had previously worked at a “major company” as COO. OnlyFans was not mentioned. Unlike his brother, Tim, who has flaunted his wealth on social media, Tom has largely kept a low profile. His role at Global Airlines has emerged as the start-up prepares to mount what many see as an audacious attempt to rival established carriers. Flights from London to New York would put the carrier in direct competition with British Airways and Virgin Atlantic, which dominate the route. Story has more.<br/>

Kazakhstan’s national carrier Air Astana has announced plans to float in London, as the carrier seeks to turbocharge its growth. The airline, which is almost 50% owned by defence company BAE Systems, hopes to list in both Kazakhstan and on the London Stock Exchange, offering the latter a boost after a year in which it has struggled to attract new companies. Air Astana said on Friday it hoped to raise $120mn through twin listings on the London Stock Exchange and in Kazakhstan. The proposed flotation also marks a potential windfall for BAE Systems, which owns 49% of the carrier. The rest is owned by the Kazakh sovereign wealth fund. Air Astana did not disclose how much of the company it intended to sell in the IPO. The London stock market has suffered a string of disappointments over the past year as companies moved their listings or chose to float elsewhere. Recent snubs have included Europe’s largest tour operator Tui, whose board last week recommended to shareholders that it cancel its UK listing, while UK commodities broker and clearer Marex plans to float in New York. Peter Foster, Air Astana’s CE, said “there was never any doubt” the airline would choose London for its listing, however. He said the company was attracted by London’s strong corporate governance framework and liquidity, as well as BAE’s ties to London. “We always knew this was going to be a dual listing, Kazakhstan and a major global market, and there was never any doubt that was going to be London,” he said. BAE’s shareholding dates back to the launch of Air Astana in 2002. The UK company was bidding for a defence contract at the time and was asked to invest start-up capital of $8.5mn towards the launch.  The defence deal never happened, but Sir Richard Evans, then chair of BAE Systems, went on to become chair of Samruk, Kazakhstan’s sovereign wealth fund, after leaving the defence group in 2004.  Although BAE’s operations are today focused on defence, the company used to have interests in civil aviation. It sold a 20% stake in Airbus, the European plane maker, in 2006.<br/>

Russian regional carrier KrasAvia has shown off an ATR 42 turboprop in the airline’s new colour scheme. The airline says it had previously applied the livery only to helicopters and its Soviet-era Yakovlev Yak-40. “Now it’s the turn of aircraft that carry the bulk of the traffic,” it states. The airline is undertaking the change over the winter to take advantage of the lower operational capacity demand. KrasAvia aims to paint its entire ATR fleet – about half-a-dozen 42-500 and 72-500 aircraft – by the beginning of the summer season. It says the brand is based on a gull which represents “freedom, independence and love of travel”, and is “ubiquitous” in the Krasnoyarsk region. KrasAvia has contracted Ulyanovsk-based painting specialist Spektr-Avia to carry out the livery work.<br/>

Lenders to India's Go First have set Jan. 31 as the deadline for financial bids to acquire the airline, two banking sources said on Sunday. Go First filed for bankruptcy protection in May but lenders have more recently been considering liquidating the airline after failing to secure new investors. "Banks have decided to give the resolution process another go and allow those suitors who have shown prior interest a chance to submit a concrete bid," said a banker with a state-run bank that has exposure to Go First. Indian carrier SpiceJet said last month that it was considering an offer for Go First after conducting due diligence. Sharjah, UAE-based Sky One, Africa-focused Safrik Investments and U.S.-based NS Aviation have also shown interest in Go First, the two sources said. Sky One, Safrik Investments and NS Aviation did not immediately respond to requests for comment. The second banker said the Committee of Creditors could also consider extending the month-end deadline at the request of a potential suitor.<br/>

PT Lion Mentari Airlines is considering reviving an initial public offering in Jakarta that could raise as much as $500m, according to people familiar with the matter. Indonesia’s biggest private carrier is working with advisers on a potential offering that could take place as soon as the end of this year, the people said, asking not to be identified discussing private information. The company could raise $300m to $500m, they said. Deliberations are ongoing and details such as the size and timing of the IPO could still change, the people said. A representative for Lion Air declined to comment. A listing would be a boost to Indonesia’s IPO market after it hosted $3.6b of first-time share sales last year, up from $2.3b in 2022, according to data compiled by Bloomberg. Indonesia ranked sixth in the world in number of IPOs in 2023 and ninth in terms of proceeds, according to an EY report cited in a statement from the country’s bourse. Lion Air had explored an IPO in 2019 as it sought to move past an October 2018 crash that killed all 189 people on board one of its Boeing 737 Max aircraft, but then Covid erupted and the plan was put on hold as air travel stalled. Lion Air is a low-cost carrier whose first flight took place in 2000, according to its website. The airline is a subsidiary of PT Langit Esa Oktagon, which is part of the wider Lion Group.<br/>