The perks of being a frequent flier are not as valuable as they once were. That is especially evident to travellers hoping to score a free upgrade to first class. Airlines, more and more, would rather get money for those upgrades. So they are using last-minute deals to entice passengers to pay to move to the front of the plane, while leaving frequent fliers languishing on the waiting list. The offers are working. By last year, slightly more than half of DeltaÕs first-class passengers had paid to be there. By 2018, Delta says it hopes that percentage will grow to 70%, which would leave less than a third of the best seats available for free upgrades. Other big airlines, including United and American, cite similar shifts. <br/>
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Brazil's govt plans to remove foreign ownership limits on domestic airlines through a presidential decree or an act of Congress this year, transportation minister Mauricio Quintella said Monday. Facing opposition from some senators, interim president Michel Temer agreed in June to partially veto a decree allowing foreigners to own up to 100% of Brazilian airlines. That will leave maximum foreign ownership of airlines at 20%, but Quintella said the govt still wants to lift the cap altogether. A two-year recession has curbed air travel in Latin America's largest country and weakened the local currency, which battered the profitability of Brazilian airlines by driving up the cost of fuel and aircraft leases. <br/>
AirbusÕs sales chief said a slowdown in orders of new planes isnÕt denting the need for the company to push up production. ÒThe ramp-up is still warranted,Ó said John Leahy. Monday, Leahy warned that meeting the companyÕs order target of about 650 planes this year would be a Òstretch.Ó Airbus has a backlog for over 6,000 aircraft, while BoeingÕs tops 5,000. Airbus has said it plans to build 60 A320 single-aisle planes a month in 2019, up from the mid-40s today. ÒWe need every one of the aircraft being built up to rate 60 and even beyond,Ó Leahy said. He is also eager for the company to build more A350 long-range jets to satisfy demand, he said. <br/>
Boeing has announced a commitment for 30 737 aircraft from an unidentified Chinese customer. The commitment, valued at more than US$3b at current list prices, includes a mix of 737 MAX and Next Generation 737s. "The agreement demonstrates the confidence the market has in the 737 family of planes," said Boeing Commercial planes CE Ray Conner. <br/>