unaligned

Southwest Airlines Co. reduced its estimate for unit revenue in the second quarter, a sign of ongoing challenges at the carrier as it fends off an activist push for a management overhaul. The company expects revenue per available seat mile to fall as much as 4.5% in the current quarter, Southwest said Wednesday in a regulatory filing. It had previously expected a decline of no more than 3.5%. Southwest attributed the pared outlook to “complexities in adapting its revenue management to current booking patterns,” according to the filing. The reduction is an unwelcome development for Southwest CEO Bob Jordan as he faces demands for new leadership by some investors including activist Elliott Investment Management, which disclosed a $1.9b stake in Southwest earlier this month. Elliott issued a statement Wednesday blasting Southwest for the cut, calling it the eighth guidance reduction in the past 18 months. The investor reiterated its demand for new leadership after the current team has “proven unable to adapt to the modern airline industry.” Southwest representatives didn’t immediately respond to a request for comment. <br/>

Breeze Airways, the three-year-old airline started by serial entrepreneur David Neeleman, has received initial approval to start international service. The airline, which operates mostly Airbus A220 aircraft in three-class configuration with 137 seats, already deploys the long 3,800nm (6,110km) range of the twinjet to fly transcontinental within the USA and is making plans to serve “warm weather destinations” first, says Neeleman. While Salt Lake City, Utah-based Breeze has not received full “flag” status as an international carrier, it has received FAA approval for International Supplemental Operations. Neeleman tells Flightglobal that he expects final approval “by the end of the summer so that we can sell the winter season” for new international markets. Breeze CCO Lukas Johnson says Latin America and the Caribbean would be initial international points, with Europe and Hawaii coming later. Breeze, which calls its service “premium leisure,” serves 56 cities and Neeleman cites its growing base in Providence, Rhode Island – north of New York, south of Boston – as a planned launch point for Caribbean and Europe service in addition to other East Coast bases. He said new destinations in Europe would include Ireland and UK. The airline will finish 2024 with roughly 45 aircraft, including 33 A220s and 10-13 Embraer E190s, which are flying almost exclusively in an expanded sports charter operation. The A220 can reach Iceland, Ireland, England, Scotland, Netherlands and other markets.<br/>

WestJet has cancelled 25 flights scheduled for Thursday and Friday as the airline prepares for the possibility of a strike by its mechanics.<br/>The airline says the Aircraft Mechanics Fraternal Association (AMFA) has issued a strike notice that could mean a work stoppage as early as 5:30 p.m. MT on Friday. In a news release Wednesday night, WestJet says 3,300 passengers will be affected by the cancellations. The airline directs passengers to this website for updates on flight status. This marks the second time in the past week the airline has cancelled flights because of a strike threat by the mechanics. Dozens of flights were cancelled last week before contract talks resumed. "This action ensures the airline can safely park its aircraft in a controlled manner, while enabling proactive communication and preventing the stranding of WestJet's guests and crew," the release said. Diederik Pen, WestJet's president and COO, said the timing of the work stoppage — coming at the beginning of the Canada Day long weekend — is particularly difficult for passengers. "As we are forced to make this painful decision, every one of us at WestJet feels the immense weight of the impact this will have on each of our guests and the communities we serve, counting on us to fulfil their travel plans this weekend," said Pen. In its most recent news release about the negotiations with the airline, AMFA said its 72-hour strike notice was submitted to prompt the airline to offer the mechanics a better deal. Instead, the union said, one hour later WestJet issued a 72-hour lockout notice in response. "Strike or no strike, AMFA will always be available for negotiations. We have agreed to extend negotiations in Toronto through the end of this week and resume in Calgary next week if necessary," the AMFA negotiating committee said.<br/>

Aer Lingus pilots said they would resume talks with the Irish airline after they launched an industrial action Wednesday that led to the cancellation of hundreds of flights and tossed the travel plans of tens of thousands into disarray. The pilots imposed ‘’work to rule’’ actions, refusing to work overtime, accepting changes in set rosters or taking out-of-hours management requests. The Irish Air Line Pilots’ Association said it would resume talks Thursday with Aer Lingus as the labor action continues. An eight-hour strike is planned on Saturday. The flag carrier of Ireland and its pilots have been locked in a bitter dispute over pay, with pilots seeking a pay increase of 24% to keep pace with inflation since their last pay raise in 2019. Aer Lingus has said it is willing to offer pay increases of 12.5% or more if “productivity and flexibility” are discussed. Ireland’s prime minister, Simon Harris, said it is “absolutely vital” that a resolution is found. “My challenge to the parties now is to bring that engagement forward, rather than putting people through a prolonged period of agony and chaos, and then engaging in the end anyway,” Harris said Tuesday. “This dispute will be settled the same way every dispute is settled: compromise, engagement, sitting around a table. That’s what needs to happen.”<br/>

Air Serbia is to begin twice-weekly flights to Guangzhou Baiyun airport – the carrier’s second Chinese long-haul route. The airline will begin the route at the end of September once it takes delivery of a third Airbus A330-200. Air Serbia resumed long-haul flights, initially to New York JFK, in 2016 after a lengthy break. It has since added flights from Belgrade to Tianjin in China in late 2022 and to Chicago last year. “When we established direct flights between the Republic of Serbia and the People’s Republic of China on 9 December 2022, after a hiatus of over two decades, we once again opened the doors of Asia to passengers from the wider Balkan region,” says Air Serbia CE Jiri Marek. ”The service significantly contributed to boosting co-operation and bilateral relations between Serbia and China, positively stimulating economic growth, trade relations, tourism and cultural exchange.” He says the signing in May of a strategic partnership on deeper co-operation between Belgrade and Beijing provides added impetus for launching direct services to China. Guangzhou Baiyun, a hub of China Southern Airlines, was the busiest airport in China by passenger numbers last year. <br/>

Danish investigators have determined that the additional fuel consumption arising from stuck flaps resulted in a diverted Boeing 737-800’s landing at Copenhagen with less than the required minimum fuel reserve. The aircraft – operated by Danish carrier Jettime – had been conducting an approach to Billund following a charter service from the Egyptian resort of Hurghada on 21 December last year. Investigation authority Havarikommissionen says a sensor glitch, subsequently resolved, delayed the 737’s departure from Hurghada by 28h. When the crew updated the flightplan they based it on a minimum fuel requirement of 16,814kg although the carrier’s operational control centre communicated a revised figure of 17,400kg owing to a new winds aloft forecast. The crew did not manage to update the flightplan with the winds forecast but – while continuing to use the basic figure of 16,814kg – chose to add 1,186kg of extra fuel to account for the winds forecast, the technical snag, and the possibility of storms on arrival in Denmark. Danish investigation authority Havarikommissionen says this extra fuel provided a “reasonable operating margin”. But as the flight progressed the crew noticed a reduction in estimated landing fuel – from 4,000kg to 3,200kg – owing to stronger-than-expected headwinds, and opted to change their alternate airport from Gothenburg to the closer Copenhagen. The aircraft had 3,278kg of fuel on board when it conducted its ILS approach to Billund’s runway 27, in strong gusting winds from the northwest. Story has full details.<br/>

Lebanon’s Middle East Airlines (MEA) aims to keep flying despite the tough conditions of operating in a war zone that has shrunk its business and slashed passenger volumes by 20% since the beginning of the Israel-Gaza war in October 7. With the Gaza war leading to increased fighting between Lebanon's Hezbollah militants and Israeli forces on the border, state-owned MEA has been forced to park some of its planes in Turkey and face reductions in its aircraft insurance cover. “If you see the challenges that Middle East Airlines has, we wish we had similar problems to what other airlines are facing," Mohamad El Hout, MEA chairman, said. "We are in the midst of the most difficult and complicated security and political situations in Lebanon and the whole region. We have difficulties getting aircraft insurance against wars." The airline has faced geopolitical risk in the past, most notably in 2006 when an Israeli air strike destroyed three runways at Beirut International Airport. There are now fears that an escalation in fighting between Israel and Hezbollah might make it the deadliest since the 2006 war. Hezbollah said it will not cease its attacks until Israel ends its siege on the Gaza Strip, where more than 37,600 Palestinians have been killed.<br/>

Etihad Airways has started direct service between Abu Dhabi and Bali, in Indonesia, from June 26. The inaugural flight, EY476, took off from Zayed International Airport and touched down in Denpasar, the main gateway to the paradise island destination. On arrival in Denpasar, the aircraft was accorded the traditional water cannon salute with Etihad’s captains waving the UAE and Indonesian flags from the cockpit to celebrate the launch of the non-stop service. The state-of-the-art Boeing 787-9 Dreamliner is being employed in the four-times-a-week operations. The aircraft features Etihad’s renowned Business Studios and Economy Smart seats. With 28 seats in Business and 262 seats in Economy boasting Etihad’s E-Box entertainment system, in-seat power, and in-flight Wi-Fi connectivity, guests can expect a comfortable and enjoyable travel experience, complemented by world-class service and hospitality. “I am honoured to be welcomed to the island today and proud to bring a full flight on our inaugural journey into Bali,” said Arik De, Etihad’s Chief Revenue and Commercial Officer. “We are thrilled to add Bali to the growing list of destinations we serve directly from Abu Dhabi. It becomes our second destination in Indonesia, adding to the capital Jakarta. We look forward to connecting our guests from the Middle East, Europe and across our global network with the Indonesian tropical island.”<br/>

Vietnam Airlines (VNA) on Tuesday (June 25) launched a direct air route linking Hanoi with China’s Chengdu city, with a frequency of four flights a week, on Tuesdays, Wednesdays, Fridays, and Sundays. The first flight, coded VN 552, departed Noi Bai International Airport at 11pm on June 25 (Hanoi time) and landed at Tianfu International Airport of Chengdu at 2:05am on June 26 (Chengdu time). Meanwhile, the flight back, coded VN 553, took off at 3:05am (Chengdu time) and arrived in Hanoi at 4:20am (Hanoi time) on June 26.<br/>

Vietnam Airlines has rebooted its Pacific Airlines unit following three months of inactivity and extensive restructuring. Pacific Airlines has recommenced services with a trio of Airbus A321s flying on domestic routes, according to its parent. Vietnam Airlines says the relaunch follows an extensive restructuring, as well as an apparent change in its business model. The carrier ceased operations in March. According to a report by Vietnam’s VnExpress news outlet, the airline – formerly an A320 operator – had handed back all of its leased aircraft. The Vietnam Airlines statement indicates that two of Pacific’s A321s have 203 seats, with 195 in economy and eight in business class, while the other has 184 seats, with 168 in economy and 16 in business class. This suggests that the three aircraft are from the Vietnam Airlines fleet, as Cirium fleets data indicates that the carrier has A321s with both of these layouts. Moreover, Pacific Airlines, which formerly operated as a low-cost carrier, will now operate under a full-service model. “The most notable change is that Pacific Airlines will provide business- and economy-class services with meal and baggage standards included in the flight ticket similar to Vietnam Airlines,” says the parent carrier.<br/>

Now-shuttered Australian carrier Bonza received funding from parent company 777 Partners “sporadically” even as it racked up significant losses in its first year of operations. In a creditor report released 25 June, administrators Hall & Chadwick found that the funding from 777 Partners was ultimately “not sufficient” to meet Bonza’s accrued debts, forcing the airline to go under. Bonza began operations in January 2023 but suspended operations abruptly just over a year later in April. The low-cost airline operated Boeing 737 Max 8’s and its business model focused on unserved Australian domestic routes. The Hall & Chadwick report found that the airline never made a profit in its brief operating period. For the 10-month period leading up to its collapse, the airline posted a loss of over A$80m ($53m). This was higher than the loss it reported in the year ended 30 June 2023, where it was A$50.3m in the red. The report also suggests that airline directors had engaged in trading while the airline was insolvent - an offence under Australian law - by accepting bookings despite not knowing if the airline was able to continue its operations. In the over 120-page report, administrators pointed out that the airline had already encountered difficulties in the lead-up to launch. In 2022, the airline’s launch was hit by a series of delays, including in getting new aircraft and securing its air operator’s certificate. Bonza also encountered simulator access restrictions which delayed its launch. The report found that Bonza suffered from “staffing shortages”, as a result of salaries being lower than at competitors. These issues were compounded by the lack of funding from Miami-based 777 Partners.<br/>