As Delta Air Lines upgrades its fleet with more efficient planes to reduce costs, executives anticipate another benefit from the new jets that will help generate revenue: more premium seating. So-called "branded" fares generated an additional US$200m during the final 3 months of 2017. Paid upgrades to first-class or "Comfort Plus" seating grew more than 25%, president Glen Hauenstein said Thursday. This year, the airline anticipates a $350m increase in branded fares, in part because newer planes will expand premium seating 5%, Hauenstein said. “We think that’s going to be key to our ability to drive revenues going forward,” Hauenstein said. Part of Delta’s strategy is to sell premium seats to business travellers more easily, even if their companies won’t pay for the higher cost. <br/>
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Delta Air Lines apologised Friday and said it recognised the seriousness of the issue after it was criticised by the Chinese aviation regulator for listing Taiwan and Tibet as countries on its website. The Civil Aviation Administration of China earlier in the day posted a statement on its website demanding the US carrier to issue an "immediate and public" apology and to investigate how the issue occurred. "Delta recognises the seriousness of this issue and we took immediate steps to resolve it," the company said. "It was an inadvertent error with no business or political intention, and we apologise deeply for the mistake. As one of our most important markets, we are fully committed to China and to our Chinese customers." <br/>
Xiamen Airlines has signed a US$2.05b memorandum of understanding with CFM International, covering installed and spare engines. The deal also includes a long-term time and materials support agreement. The engine-maker says no further details of the deal are available. This brings the total value of agreements signed in China, in conjunction with French president Emmanuel Macron's state visit to the country, to $9.1b at list prices. Other deals signed include Spring Airlines' finalised order for 120 Leap-1A engines to power its incoming fleet of 60 Airbus A320neos. Together with a 10-year flight hour service agreement, the deal is worth $2.9b. Hainan Airlines also signed an MoU, valued at $4.2b, for the purchase of Leap-1A engines to power 55 A320neos. <br/>
Kenya Airways will launch daily Nairobi Jomo Kenyatta-New York JFK services Oct 28, becoming the first airline to offer a nonstop flight between East Africa and the US. Kenya Airways Group MD and CE Sebastian Mikosz said the new service “fits within our strategy to attract corporate and high-end tourism traffic from the world to Kenya and Africa.” East Africa-based Ethiopian Airlines operates nonstop flights from the US east coast on westbound flights returning to Addis Ababa. However, Ethiopian is not able to operate eastbound flights to the US because its Addis Ababa Bole International hub sits at high sea level (7,657 ft. above sea level), which reduces engine performance and requiring a longer take-off run, potentially exceeding the amount of available runway. <br/>
Air France Saturday denied that it had made an offer to buy the struggling Alitalia, a day after an Italian govt minister said the French carrier had made a joint bid with EasyJet. Italian Industry minister Carlo Calenda Friday said separate offers had been presented by US private equity fund Cerberus and Lufthansa, as well as a joint Air France-EasyJet bid. But Air France said it had not taken part in the process launched by the Italian authorities. "Air France-KLM denies having made an offer to take over Alitalia," Air France said. Heavily indebted Alitalia, which has only turned a profit a few times in its 70-year history, was put under special administration last year after its staff rejected a plan to cut jobs and salaries. <br/>