Southwest Airlines said it had launched a compensation program for flight delays as part of a $140m US Department of Transportation settlement over the carrier's meltdown in December 2022 during a busy holiday travel period. Southwest in December 2023 agreed over three years to provide $90m in travel vouchers of $75 or more to passengers delayed at least three hours getting to final destinations because of an airline-caused issue or cancellation, and to start the program by April 30. The airline said on Monday it had quietly launched the program on April 16 and has already heard from a few thousand customers seeking vouchers. The airline agreed to the compensation program after the holiday meltdown that resulted in 16,900 flight cancellations and stranded 2m passengers. The settlement included a $35m cash fine. A massive winter storm in December 2022 and subsequent chaos prompted travel horror stories such as people missing funerals or long-awaited holiday gatherings, passengers with canceled flights forced to make cross-country drives of 17 or more hours and some cancer patients being unable to get treatment. The delay compensation program is part of the Biden administration's aggressive efforts to get tough on airlines as it aims to require new passenger compensation. Vouchers will be awarded "upon request," Southwest said. Southwest CEO Bob Jordan said in December the $30m in vouchers annually was "the right number" to commit to given its operational performance. Asked if Southwest would end the program after three years, Jordan said consumer programs "rarely change or go away." Rival U.S. airlines have not put in place similar programs and do not yet face a mandate to do so.<br/>
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Brazilian airline Azul will add 13 new Embraer 195-E2 jets to its fleet in 2024, representing an investment of R3b ($590m). The Sao Paulo-based carrier says the aircraft will be delivered “over the next few months, until the end of the year”. Azul took delivery of its first 136-seat E195-E2 in September 2019 and currently operates 20 of the type in its 189-strong fleet and has 54 more of the type on order. “Fifteen years ago, Azul began its history betting on the Brazilian industry with the decision to operate Embraer equipment, and today we are fully aware that this successful investment by Azul also represents a strong economic and social contribution in the country,” says CE John Rodgerson. Embraer CE Francisco Gomes Neto says: “The expected delivery of 13 more E195-E2 jets to Azul this year is another important demonstration of confidence in our aircraft, which is a global benchmark in quality, efficiency and sustainability.”<br/>
Capital A Bhd Monday said the AirAsia Aviation Group (AAG), comprising AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia, and AirAsia Philippines, delivered improved performance across key metrics, with a system-wide record quarterly load factor of 90% in Q1 2024 (1Q 2024), reflecting one percentage point (ppt) improvement year-on-year. It said the robust performance aligned with AirAsia's strategic focus on expanding capacity and rebuilding its network. "Passenger volume grew 17% y-o-y to 15.4m, outpacing capacity growth of 15% y-o-y, demonstrating continued strong travel demand across the region,” the carrier group said. It noted that the growth was largely attributed to the school holidays, Chinese New Year season as well as the resurgence of China and India routes that delivered a robust load factor of 94%, higher than the pre-COVID level due to the visa-free travel corridors of both regions introduced at the end of 2023. As of the end of March this year, the airline group deployed 167 operational aircraft. "AirAsia Philippines and Thailand emerged as the group's top performers, with highest load factors at 93% each, while AirAsia Malaysia and Indonesia followed closely with load factors of 89% and 83%, respectively,” it said. Capital A still owns an 18.39% stake in AAG.<br/>
Budget Australian airline Bonza, owned by 777 Partners, had its fleet repossessed by creditors and cancelled flights on Tuesday, the Australian Financial Review reported. The airline’s Boeing Co. Max aircraft were initially purchased by 777 Partners, but the venture capital firm’s creditors this month formed a new entity to take over planes linked to 777 Partners, the newspaper said. The carrier last week denied a newspaper report that it had appointed KordaMentha, best known as a restructuring specialist for financially stressed companies, as a financial advisor. Miami-based 777 Partners had previously laid out plans to build a global airline portfolio to add to a sprawl of sports and aviation assets. The firm agreed to buy UK football club Everton last year, but recently asked for more time to complete the takeover. Bonza and 777 Partners didn’t reply to voicemails and emails seeking comment on the AFR report.<br/>