Further industrial action being contemplated by the Airline Pilots Association (ALPA) could cost the beleaguered airline as must as E575,000 a day in the worst case scenario, an internal risk assessment carried out by the airline reveals. ALPA and Air Malta’s management remain at loggerheads over the negotiation of a new collective agreement, since talks have been delayed as the airline continues to thrash out a takeover agreement with Alitalia that would see the Italian carrier become the Maltese carrier’s strategic partner. In the meantime, the airline’s pilots are turning up the pressure on Air Malta and are threatening to escalate matters from their current ‘dress down’ industrial action. Such escalation, ALPA has warned, could take the forms of delaying flights or suspending services altogether. <br/>
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New Cyprus-based carrier Cobalt has launched initial services, with plans to ramp up its fleet and destinations over the next few weeks. Cobalt is chaired by Cypriot entrepreneur Gregory Diacou and has what the airline describes as “51% European shareholding,” with the remaining 49% being held by the Chinese state-owned Aviation Industry Corp. of China (AVIC). This will be the latest foray by major Chinese organisations into Western aviation assets and infrastructure. Cobalt is beginning life with 3 leased, single-class Airbus A320s, with another expected imminently and “possibly an A321 by the end of the month,” a company spokesman said. Although the airline said early in 2016 that it would initially undertake charter services and then move into scheduled services, it has started with scheduled operations. <br/>
Airbus Group is in discussions with Go Airlines India about the purchase of about 70 A320neo planes worth around US$7.5b at list prices, according to people familiar with the situation. An announcement could come as early as this week at the Farnborough Air Show, though talks may extend further into the year, said the people. GoAir is one of only three carriers that have begun operating the revamped Neo version of Airbus’s single-aisle jet, so that a follow-on order would provide a vote of confidence in a model that’s been dogged by issues with its Pratt & Whitney turbines since last year. The carrier already has a contract for 72 A320neos, 2 of which have been delivered, after announcing a deal for the jets in 2011. The new batch would again use Pratt engines. <br/>
AirAsia is studying a dual listing in Hong Kong, part of plans to become a pan-Asian low-cost airline player as it also moves towards setting up a joint venture in China, people familiar with the matter said Sunday. The group is simultaneously looking for more aircraft to meet strong demand in North Asia and elsewhere, the people said on the eve of Britain's Farnborough Airshow. The airline group, which already has affiliates across Southeast Asia, aims to form the venture with the backing of a Chinese state-owned enterprise (SOE) to help capture traffic from fast-growing secondary and tertiary cities. Co-founder and CE Tony Fernandes referred to the potential dual listing without naming a location and hinted at a potential new aircraft order in remarks posted on his Twitter account Sunday. <br/>
Europe's traditional airlines, already challenged by budget rivals, could face a new threat at the business class end of the market later this year when Surf Air Europe starts flying. Venture capital-backed Surf Air Europe will start connecting London to Geneva, Zurich and Cannes from October, operating a subscription-model where customers pay a US$3,250 monthly fee for unlimited travel. Although small - the airline will initially fly 3 8-seater aircraft - the new service could take some of British Airways' and SWISS' most lucrative customers: those who tend to fly business class and pay extra for flexible tickets. Surf Air Europe will try to imitate what its sister company, Surf Air, has done in California. Launched 3 years ago, that company now has 3,000 members and is due to start making a profit in the next quarter. <br/>