Demand for high-end travel is booming, and U.S. carriers are in a rush to seize on it. Airlines are adding more comfortable and bigger seats on their planes to attract customers willing to pay more for a better travel experience. Some airlines known for low-fare models like Southwest, Spirit and Frontier are even shifting away from their traditional business models to woo them. Airline executives say consumers have cut their spending on goods in favor of experiences, with travel their topmost priority after the COVID-19 pandemic. U.S. carriers are betting that the travel boom is a multi-year phenomenon and are vying to grab a bigger slice of the high-end market. The effort is part of a broader industry strategy to find high-margin revenue streams to offset rising labor and operating costs. A survey in May by consulting firm Deloitte found more travelers were ready to pay for a more comfortable flying experience than a year ago. "That segment of passengers is as strong as the industry has ever seen it," Alaska Airline's CFO Shane Tackett said in an interview. Stronger demand for premium cabins helped Alaska post the highest adjusted pre-tax margin among major carriers in the second quarter. It also boosted earnings at Delta and United Airlines. Alaska has retrofitted its entire regional fleet this year to add 400,000 premium seats. It now has plans to add 1.3m premium seats a year to its mainline fleet.<br/>
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Canada's Competition Bureau has launched a market study into the country's domestic air passenger service, noting that fares remain pricier than they were before the COVID-19 pandemic. In the study's terms of reference published earlier this week, the bureau says there are signs "domestic airfares in Canada may be relatively high," and that "average airfares remain above pre-pandemic level." Those terms also highlight the relative duopoly of Air Canada and WestJet, which the bureau says accounts for 80 per cent of Canada's domestic air capacity — measured by the number seats available multiplied by kilometres travelled. "I think part of the reasons that fed into our decision to launch this market study include the fact that this is a concentrated sector," said Anthony Durocher, deputy commissioner of the bureau's competition promotion branch. "Recent incidents such as the bankruptcy of Lynx Air [have] clearly indicated it may be more difficult for smaller airlines to operate in the Canadian marketplace."<br/>
Boeing’s board named the plane maker’s next chief executive on Wednesday, putting Robert K. Ortberg, a veteran of the aerospace industry, in charge as the company tries to recover from a crisis prompted by a panel blowing away from a 737 Max plane in January. Ortberg, known as Kelly, will inherit a long list of difficult tasks. He will have to oversee sweeping cultural changes, finish contract negotiations with the company’s largest union, complete the acquisition of an important supplier, stabilize production and lead development of its next generation of planes. His appointment takes effect on Aug. 8. Ortberg, 64, brings decades of industry experience and an outsider’s perspective to the role. He is a former chief executive of Rockwell Collins, which made electronic systems and other technology for aircraft, including those made by Boeing. Speculation about the airplane manufacturer’s next chief executive had focused on other candidates for months, but Mr. Ortberg’s name entered the public discussion this week after The Air Current, a trade publication, reported that he was being considered. Industry experts welcomed the news, noting that Mr. Ortberg is a well-regarded engineer and leader. “We believe this is a strong, and safe pick,” Ken Herbert, an aerospace and defense analyst at RBC Capital Markets, said in a research note.<br/>
Lawyers for relatives of some of the people killed in Boeing Max jetliner crashes asked a federal judge on Wednesday to reject a plea agreement the aircraft maker struck with U.S. prosecutors, saying it is too lenient and lets Boeing avoid accountability for causing 346 deaths. Some of the lawyers argued that the Justice Department has treated Boeing lightly because the company is a major contractor to the U.S. government. Boeing agreed on July 7 to plead guilty to a single count of conspiracy to commit fraud to settle allegations that it deceived Federal Aviation Administration regulators who approved the 737 Max and then broke a 2021 settlement that would have let the company escape criminal prosecution. Under this month’s deal, Boeing would pay a fine of at least $243.6m, invest $455m in compliance and safety programs, and be placed on probation for three years. The Justice Department and Boeing would pick a monitor to oversee the company’s compliance. U.S. District Judge Reed O’Connor in Fort Worth, Texas, can accept the corporate plea agreement and the proposed sentence, or reject the deal, which likely would lead to new negotiations between Boeing and prosecutors.<br/>
U.S. Senate Commerce Committee chair Maria Cantwell said she plans to introduce legislation on Thursday to require the Federal Aviation Administration to use advanced safety measures after a series of problems with Boeing jets. "We really think the FAA needs to have its own process," Cantwell said of safety management systems, which are sets of policies and procedures to proactively identify and address potential operational hazards. She also said she still plans to call Boeing to testify even after the company named Kelly Ortberg as its new CEO on Wednesday. Cantwell, who represents the state of Washington, added the new CEO of Boeing should be based in Seattle, where much of the planemaker's manufacturing is located. "I think the notion that somebody thinks they can run the company from anywhere other than Seattle is a big mistake," Cantwell said. A source confirmed that Ortberg plans to be based in Seattle.<br/>
Boeing CE David Calhoun thinks the company could have its 737 Max 7 and Max 10 certificated by the Federal Aviation Administration in the first half of 2025, while cautioning that the regulator will determine ultimate timing. Calhoun laid out the timeframe on 31 July, saying Boeing has made progress in redesigning the types’ engine anti-ice system, which has been holding up the certifications. Asked during Boeing’s second-quarter earnings call if the Max 7 and 10’s approval could come in the first half of next year, Calhoun responds, “Sounds realistic to me… But [the FAA] is in charge”. Boeing executives have previously estimated that the Max 7, the smallest variant of the narrowbody jet, will be certificated in 2025. But the approval timeline for the Max 10, the largest variant, has been more unclear. Both certification programmes are badly delayed, partly due to increased scrutiny from the FAA, which hiked oversight in the wake of criticism about its certification of the Max 8 and Max 9. Boeing in January took another delay to the Max 7 and 10 programmes, saying it needed to redesign the types’ engine anti-ice system due to an overheating problem. Executives said at the time that the redesign would take about one year. Boeing also intends to install the new system on in-service Max 8s and 9s. Asked about progress on 31 July, Calhoun called the anti-ice system the only “discrete item” holding up certification. He expressed a “high level of confidence” that the company will complete the system’s engineering work before year-end.<br/>
Electric flying taxi journeys could be as cheap as Uber rides, an aircraft manufacturer claims. Bristol-based Vertical Aerospace hopes to launch its first flights for "premium airline passengers" in 2027, but expects the service to become “very affordable” once production grows. Bosses say the technology will eventually enable "quicker and cleaner journeys" compared with road or rail transport. The company's chief commercial officer Michael Cervenka said: “The potential is for this aircraft to be about the same cost as hiring an Uber." Tech bosses hopes to receive regulatory approval for its eVTOLs, which stands for electric vertical take-off and landing aircraft, by the end of 2026, with commercial flights beginning in the following year. The company has started ground tests of its most advanced prototype, named VX4. Cervenka said the journeys will be fewer than 100 miles and are likely to be in three categories: airport shuttles, between locations with “gaps in ground transportation” such as between Manchester and Leeds, and sightseeing trips. He added they gradually hope to roll out thousands of aircraft. “Where it starts to become affordable is, we’ve got a vehicle that can fly lots of times a day, can carry lots of passengers, needs very little maintenance, is very efficient to operate. “We’re selling the aircraft. Our customers will set the prices (for journeys)," he said.<br/>