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Swiss International Air Lines CE Dieter Vranckx will leave his post to join Lufthansa Group’s executive board, responsible for global markets and commercial steering hubs, in July. The Zurich-headquartered airline, part of Lufthansa Group, said on 22 February that in his new role Vranckx, who has been at the helm of Swiss since 2021, will also be responsible for the parent company’s customer experience and brand management. Those two areas had previously been part of the group’s brand and sustainability division. Vranckx will remain deputy chair of Swiss’s board of directors. The move marks the second major management change announcement at the Swiss carrier in three days. On 19 February, the airline said CFO Markus Binkert will leave the company at the end of May. “I am really looking forward to these new challenges, and to applying my international experience to the entire Lufthansa Group as part of the executive board team,” Vranckx says. “At the same time, Swiss is my ‘home’, and will always be dear to my heart. So it means a great deal to me that I will also remain closely involved with Swiss in my new capacity.” Reto Francioni, chair of the Swiss board, says Vranckx “delivered some outstanding achievements” in the past three years as the air transport industry regained footing in the wake of the global Covid-19 pandemic. “Not only did he guide our airline swiftly, successfully and in sound competitive health out of the global crisis within the airline industry that was prompted by the Covid pandemic, he was also instrumental in stabilising our company,” Francioni says. “Our successful conclusion of new collective labour agreements with our social partners for our ground personnel and our cockpit and cabin crew corps are of particular note here.” Vranckx, a Belgian-Swiss dual national, has spent 17 years at Swiss and its predecessor, Swissair, in various executive capacities. He has been with Lufthansa group for some two decades.<br/>

Air India has picked Collins Aerospace to supply avionics hardware for its upcoming fleet of Boeing 737 Max aircraft. The deal, signed at the Singapore air show, covers communication, navigation, surveillance equipment, as well as air data sensors. Air India will also receive Collins’s weather radar systems. Collins’ general manager of avionics sales, marketing and aftermarket services Craig Bries says: “This avionics agreement marks a collaborative effort that will be foundational to Air India’s 737 Max fleet for years to come.” Cirium fleets data shows Air India to have over 170 737 Max jets on order. Its low-cost subsidiary Air India Express has 13 Max 8s in service, and another five on order. Separately, the Star Alliance carrier signed an inventory technical management agreement with SIA Engineering (SIAEC), covering its fleet of Airbus A320s. The 12-year agreement will see SIAEC provide support for the A320 airframe and engine components. Air India will also gain access to SIAEC’s inventory pool, with the latter also providing component MRO services.<br/>

Thai Airways International swung back to the black in 2023, posting an annual net profit on gains from its debt restructuring, as well as a continued increase in passenger travel revenue. The Star Alliance carrier reported a net profit of Bt28.1b ($782m) in the year to 31 December 2023, a swing from the Bt272m attributable net loss in 2022. Thai saw a 53% jump in operating revenue to Bt161b, led by a 79% increase in passenger travel revenue, but offset by a 35% decline in the cargo segment. In 2023, Thai carried close to 13.8m passengers, up 52% year on year. Traffic rose 65%, while capacity increased 41% compared with 2022. The Bangkok-based operator had resumed operations to the Mainland China after the easing of ‘zero-Covid’ measures, adding flights to Beijing, Shanghai and Chengdu. It also increased frequencies to cities such as Tokyo, Osaka, Melbourne and Singapore. Thai notes that the removal of visa requirements for Chinese travellers to Thailand has led to an increase in tourist arrivals to the country, in turn boosting the airline’s passenger traffic. Operating expenses for the year rose 24% to Bt121b in line with more activity. The carrier ended the year with 70 aircraft, which also includes the Airbus A320s it acquired after merging its regional unit Thai Smile into mainline operations. <br/>

Air New Zealand says it may raise ticket prices to cover rising costs after reporting a 38% slump in interim earnings and forecasting an even worse second half. Inflationary pressures have driven up non-fuel operating costs over the last four years, which is “having a significant impact on the cost of providing air services, including on the domestic network,” the Auckland-based carrier said. “The airline is currently reviewing fares and capacity to better reflect ongoing cost pressure,” it said. Air New Zealand is facing intense competition on its international routes, particularly from North America where US airlines have not yet returned to China at scale and have directed some of that additional capacity to the New Zealand market. It is also grappling with Pratt & Whitney engine maintenance issues on its Airbus A321neo fleet, which will see as many as five of its newest and most efficient aircraft out of service at any one time across the next 18 months at least. “On top of these operational challenges, we are now leaning into the reality of a worsening revenue and cost environment, which is expected to have a significant adverse impact on performance in the second half,” chair Therese Walsh said.<br/>

Air New Zealand’s Skynest sleeping pods may not be available for passengers until 2025, with the carrier’s order of eight new 787-9 Dreamliners delayed. In a statement announcing Air New Zealand’s half-year results, CEO Greg Foran confirmed that the new 787-9s, which will add to the carrier’s current fleet of 14 Dreamliners and feature the Skynests, are not likely to arrive until next year. Skynest was intended to launch in September this year on flights from Auckland to Chicago. Available for $400-$600 NZD, the bunk bed-style pods, located between the economy and premium economy cabins, will be limited to one session per passenger, though families on the same ticket will be able to book separate sessions for each person pending availability. “Boeing has now confirmed that the first of the new 787 Dreamliners is unlikely to arrive until at least mid-2025, which will delay delivery of our innovative new Skynest. The interior retrofit of our current 787 fleet remains on track,” said Foran. “To mitigate these challenges, we introduced a dry lease 777-300ER in November. A second dry lease 777-300ER will enter the fleet mid-year and we are well advanced on negotiations for a third.” The airline reported $185m NZD in earnings before tax for the first half of FY2024, translating to $129m net profit after tax, with $3.1b in passenger revenue driven by what it called a “significant ramp-up in capacity across the international network”.<br/>

It’s not only passengers who are finding flying increasingly expensive, say Auckland-based airlines. Regional carriers have lent their voices to concerns raised by Air New Zealand that airport redevelopments are pushing operating costs sky-high. On Wednesday, Air NZ called for an urgent inquiry into what it claimed was runaway spending by the country’s largest air transport hub. The cost of Auckland Airport’s $8b 10-year redevelopment plan is being passed on in airport fees and passenger levies likely to increase by more than 400% over that time. The national carrier claimed airport charges were likely to increase from $9 to $46 per passenger by 2032. That would be reflected in the price of air tickets. The Qantas Group, which operates Jetstar and Qantas flights, has also asked for greater scrutiny of airport costs, adding its voice to industry groups like the Board of Airline Representatives New Zealand (Barnz) and its 26 member airlines, which have raised the issue with the Commerce Commission. However, it’s regional airlines which say they are feeling the costs increase most sharply, for not much improvement. Many smaller airlines, which provide the only connections to some regional airports, are concerned about the viability of their businesses. Airlines at Auckland Airport’s regional hub say they have the rough end of the deal and are disproportionately affected by the rising costs. Air Chathams described the proposed fee increases as “extremely challenging”, especially on top of increased rents for its hangars and office spaces.<br/>