Politics, public opinion and salary hikes south of the border helped push Air Canada toward a deal that secures major wage gains for pilots, experts say. The tentative agreement includes a 42 per cent wage hike over four years, according to one source who was not authorized to speak publicly on the matter. On Sunday, the country's biggest airline and the union representing its 5,200-plus pilots announced they had reached a would-be contract, averting a strike that would have grounded flights and affected some 110,000 passengers per day. Shortly before, Prime Minister Justin Trudeau had made it plain the two sides should hash out a deal themselves. On Friday, he said the government would not step in to fix the impasse — unlike during a massive railway work stoppage last month and a strike by WestJet mechanics over the Canada Day long weekend. Trudeau said the government respects the right to strike and would only intervene if it became apparent no negotiated deal was possible. Trudeau's government was unlikely to consider back-to-work legislation after the NDP tore up its agreement to support the Liberal minority in Parliament, said John Gradek, who teaches aviation management at McGill University. Conservative Leader Pierre Poilievre, whose party has traditionally toed a more pro-business line, also said last week he was "not going to support pre-empting those negotiations. "We stand with the pilots and their right to fight for a fair deal, good wages."<br/>
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Air Canada's tentative, four-year agreement with the union representing its pilots removes a significant overhang on the airline's beleaguered stock, analysts say, as shares jumped on Monday. Canada's largest airline reached a deal with the Air Line Pilots Association (ALPA), the union representing more than 5,200 Air Canada pilots, on Sunday, averting a strike and widespread flight cancellations. Air Canada says the terms of the tentative agreement will remain confidential pending a ratification vote by union membership, which is expected to occur next month. ALPA says the agreement adds $1.9b in value for its membership, with a cumulative pay rate increase of 42% over four years. The last agreement expired in September 2023. Shares of Air Canada jumped nearly 8% in early trading on Monday. The stock was up approximately 4% as at 11:50 a.m. ET on the Toronto Stock Exchange, trading around $16.42. The new collective agreement removes "a significant overhang that has weighed on shares" during the airline's post-pandemic recovery, says ATB Capital Markets analyst Chris Murray. It also allows Air Canada to shift its focus to other initiatives, such as share buybacks and adding aircraft to the fleet. "The absolute focus for most of the year has been getting to a settlement with the pilots that they can work with, that keeps the pilots happy and allows the airline to move forward," Murray said in an interview with Yahoo Finance Canada, adding that Air Canada has been cautious about things that investors have been looking for, including share buybacks. Murray has an "outperform" rating on Air Canada, with a $26.50 share price target.<br/>
Group passenger load factor (PLF) stood at 85.7% in August. Passenger traffic for Singapore Airlines C6l (SIA) as a group rose 7.7% y-o-y to 12.9b for the month of August, while passenger capacity rose by 10.8%. The group’s airlines, flag carrier SIA and its budget airline Scoot, carried a total of 3.3m passengers in August, 9.4% higher y-o-y. Group passenger load factor (PLF) stood at 85.7% in August with SIA’s and Scoot’s PLF of 84.9% and 88.8%, respectively. Meanwhile, cargo loads rose by 20.9% y-o-y, on the back of sustained strength in e-commerce flows and some demand spillover from disruptions to sea freight. Similarly, cargo capacity expanded by 10.4% y-o-y. As a result, cargo load factor stood at 56.1%, 4.9% percentage points (ppts) higher y-o-y. At the end of August, the group’s passenger network covered 125 destinations in 36 countries and territories. SIA served 78 destinations, while Scoot served 69 destinations. Its cargo network comprised 129 destinations in 37 countries and territories.<br/>
Thai Airways International has signed a memorandum of understanding with aerospace firm Thai Aviation Industries (TAI) to explore opportunities in commercial aircraft MRO. The agreement covers areas such as aircraft, engine, as well as component maintenance, says the state-owned TAI. Other areas include training and technological development. The partnership aims to “support the growth and increase competitiveness” of Thailand’s aviation sector, as part of government efforts to promote the country as a regional aviation hub. TAI, which was set up in 2003, has MRO capabilities on a range of platforms, including the Airbus A320 and ATR 72. It is predominently focused on military aircraft MRO, with capabilities on the Lockheed Martin C-130H, Bell 212 and 412, as well as the Sikorsky S-92 helicopter.<br/>