Saturday, April 20, 2024
Book Flights
 

Ryanair threatens to pull aircraft out of Britain

Ryanair737 MAX
Photo: Ryanair.

Low-cost giant Ryanair has warned it could move “some or all” of its UK-based aircraft to Europe unless it receives certainty about operations after Brexit.

Ryanair said on Monday it remained concerned about the uncertainty surrounding the UK’s departure from the European Union from March, 2019, and whether Britain would remain a party to the EU Open Skies agreement.

The airline, which has almost 90 aircraft in the UK, campaigned against Brexit and strongly supports staying with the open skies agreement.

It is worried there will neither the time nor the goodwill to allow a bilateral treaty to be negotiated if this proves not to be the case and that the policy chaos could result in flight disruptions.

“We, like all airlines, seek clarity on this issue before we publish our summer 2019 schedule in the second quarter of 2018,’’ Ryanair said in a statement announcing a 55 per cent rise in first-quarter profits.

 “If we do not have certainty about the legal basis for the operation of flights between the UK and the EU by autumn 2018, we may be forced to cancel flights and move some, or all, of our UK based aircraft to Continental Europe from April ’19 onwards.

“We have contingency plans in place and will, as always, adapt to changed circumstances in the best interests of our customers and shareholders.’’

The warning came as Ryanair boss Michael O’Leary also revealed the group was one of 10 companies to submit “non-binding” offers for financially crippled Alitalia.

The failed airline is being propped up by an Italian government bridging loan while special administrators determine whether it should be sold, restructured or liquidated.

It was placed under special administration after unions rejected a restructuring plan backed by the airline’s investors, including 49 per cent stakeholder Etihad.

Potential suitors have until October to submit a binding proposal but O’Leary said Ryanair would only do so if there was significant restructuring that allowed the Italian carrier to operate on a profitable basis.

There would also need to be "an absence of Italian government interference," the BBC quoted him as saying.

Ryanair reported a first-quarter of €397 million, up from €256m in the same quarter last year, but noted the figures were distorted by the timing of Easter.

Traffic for the quarter grew 12 per cent to 35 million customers with passenger loads hitting a record 96 per cent.

Average fares rose by 1 per cent to just over €40 as the strong April traffic was offset by factors such unfavourable currency movements, lower bag revenue and terrorist attacks in Manchester and London.

The airline took delivery of 14 new Boeing 737s during the quarter and said new bases in Frankfurt Main and Naples were doing well.

“We will launch two new bases in Memmingen (Munich) and Poznan in the autumn and open 170 new routes for winter ’17,’’ it said. “We continue to see significant growth opportunities for Ryanair across Europe as competitors close bases or move capacity and legacy airlines restructure.”

Ryanair now expects to carry 131 million people in the 2018 financial year, up 1 million on its previous estimate.

It said it expected the pricing environment to remain “very competitive” in the second half with traffic growth of about 7 per cent and fares falling 8 per cent.

It maintained its after-tax profit guidance of  €1.40bn to €1.45bn but added: "This guidance remains heavily dependent on close-in summer bookings, H2 average fares and the absence of any further security events, ATC strikes or negative Brexit developments.”

Australia widens safety oversight of foreign carriers.

Australia’s safety regulator will have access to safety information from hundreds of airlines after signing a deal with the International Air Transport Association.

The deal will give the Civil Aviation Safety Authority access to the audit details of more than 400 carriers on the IATA Operational Safety Audit (IOSA) and makes Australia the first country in the Asia-Pacific to use the audit as part of its safety oversight.

CASA already has access to information from the US Federal Aviation Administration and European Aviation Safety Agency authorities but this will be the first time it will also be able to get details from IOSA audits.

The Australian regulator says it expects the additional information to make its surveillance and audits more efficient and effective.

IOSA is compulsory for IATA members but non-members also sign up for it on a voluntary basis.

Introduced to help reduce the rate of airline fatal accidents, it is an internationally nationally recognised audit that looks at operational management and control systems at an airline.

Carriers taking part in the audit tend to have a better overall safety record than those that don’t.  IATA says the total accident rate for IOSA carriers between 2011 and 2015 was 3.3 times lower than the rate for non-IOSA operators.

Acting CASA aviation safety director Graeme Crawford said CASA would use the IOSA information to complement the existing surveillance and oversight of foreign airlines.

Crawford said CASA had worked closely with IATA to understand the organisation’s audit process, quality assurance and management of approved auditors.

“It will also be used as part of the assessment process for new foreign carriers seeking authorisation to operate to Australia,’’ Crawford said in the latest CASA Briefing newsletter.

 “In the future, we expect to have access to IOSA information in relation to Australian carriers, which will be used to support our existing audit and surveillance work.’’

IATA senior vice president safety and flight operation Gilberto Lopez-Meyer said sharing IOSA information with regulators reduced the burden and costs of safety oversight.

Other agreements to share IOSA information are in place with the FAA, EASA and China.

New Air France carrier targets millennials

Old, cranky people need not apply if the first hints about Air France’s new youth-oriented airline are any indication.

The project, made possible through a recent union agreement and originally labelled Boost, will be known as “Joon” and will start operating medium-haul flights from Paris Charles de Gaulle airport from the northern autumn.

It will be headed by Jean-Michel Mathieu, a 48-year-old who has spent most of his career with Air France and Air France-KLM in areas including network, revenue management, digital services and customer relations.

With plans to go to long-haul services in mid-2018, the airline is part of Air France’s strategy to cope with pressure from Gulf carriers as well as the expansion in Europe of long-haul, low-cost carriers such as Norwegian Air Shuttle and IAG’s recently-launched LEVEL.

Initial indications are it will operate 10 long-haul and 18 short-haul aircraft with a graphic on its website showing Airbus A320, A340 and A350 aircraft in the Joon livery.

The were few details in the company’s breathless announcement but it says the new carrier will not be low-cost and will offer “original products and services that reflect those of Air France’’.

The missive stops short of revealing any deep meaning for the new name but says it is “short, powerful and international” and designed to  “speak to people all round the world’’.

It describes Joon as “a lifestyle brand and state of mind’’.

“Joon is especially aimed at a young working clientele, the millennials (18 to 35- year-olds), whose lifestyles revolve around digital technology,’’ the Air France Website says “This new brand has been entirely designed to meet their requirements and aspirations, with an authentic and connected offering that stands out in the world of air transport.’’

Joon is also out to break the mold when it to cabin uniforms.

The announcement is accompanied by art work of Joon’s electric blue uniforms “symbolising the airline’s dynamic attitude as well as the sky, space and travel’’.

“We started with our target customer segment, the millennials, to create this new brand that means something to them,’’ Air France brand vice-president Caroline Fontaine said in a statement.

“Our brief was simple: to find a name to illustrate a positive state of mind.

“This generation has inspired us a lot: epicurean and connected, they are opportunistic in a positive sense of the word as they know how to enjoy every moment and are in search of quality experiences that they want to share with others. Joon is a brand that carries these values.’’

Will an artificial intelligence plan your future travel?

Artificial intelligence that personalises global travel, a fragmented world with destinations off limits and the growth of Asia while Western nations stagnate.

These are some of the scenarios raised in a report on potential travel industry trends produced for global reservations giant Amadeus.

The report, “What if? Imagining the Future of the Travel Industry”, was produced by management consultants AT Kearney comes up with four scenarios named after famous artists in its attempt to assess “what might lie over the horizon.”

The parties say they undertook the scenario-planning project to study the impact of disruptive trends on travel industry players as well as Amadeus’ business.

“Technology has never held more promise for the travel industry,” Amadeus IT Group vice president of corporate strategy Alex Luzarraga says in the report.

“But the status quo is being turned on its head. There is widespread mistrust and populism. Things we used to take for granted, such as the right to travel across Europe without passports, for example, may be less likely in the future.”

The report identifies two key areas: a technology-driven move to more personalised travel versus the mass-market version and seamless travel versus segmentation.

Looming over this is widespread unease about the ability of tech giants such as Google and Amazon to colonise “large swathes of travel ecosystem’’, disrupt long-standing relationship and act as gate keepers between companies and consumers

It uses these to create scenarios ranging from travel dystopia to a nirvana of economic prosperity, data sharing and relaxed regulation.

The familiar Picasso scenario is built on a fragmented world marked by the rise of populism and heightened security concerns.  The European Union begins to break-up due to the rise of anti-immigrant sentiment and a protectionist US alienates China and Mexico.

Nonetheless, global economic prosperity drives consumer wealth and demand for personalisation and companies invest in innovative technology to offer more sophisticated personalised offers — but only up to a point.

The global distribution system remains relevant because the fragmented world still needs aggregation platforms to compare prices and availability but the sharing economy changes the way travellers shop, book and experience a destination.

Travel agencies are potential losers in this scenario airlines risk becoming a commodity rather than a first step in planning a journey.

Artificial intelligence is a player in the somewhat surreal Dali scenario. This ratchets up the corporate optimism to assume both social attitudes and economic prosperity leads to more data sharing, relaxed privacy legislation and lighter regulation.

The world becomes interconnected and the Internet of Things allows an unprecedented amount of personal data to be extracted.

There are fewer security controls at borders, real-time information is available about unforeseen events such as flight delays, driverless cars wait at destinations and automatic translation allows communication between people who speak different languages.

“Artificial intelligence has real-life applications, including the ability to predict personal preferences and push suggestions for a holiday or business trip,’’ the report says.

“Voice recognition is refined and digital assistants such as Apple’s Siri and Amazon’s Echo replace online search engines as the preferred channel of finding information.’’

The consultants concede there could be a backlash against machines following our every move but say travellers living in the Dali scenario would see faster, cheaper and safer travel.

Not surprisingly, winners in this scenario include cybersecurity and technology companies with global distribution platforms morphing into intelligent platforms providing directly comparable data without the distortion of advertising algorithms.

It is left to Hieronymus Bosch to lend his name to the darkest scenario in which nationalism and economic recession combine to breed protectionism and distrust.

There is little collaboration when it comes to data sharing and consumer data stays within the country in which it is generated.

The pace of innovation slows, tech giants and the sharing economy face a regulatory backlash and fear of terrorism, including cyber-terrorism, makes travel more cumbersome and costly.

Tech giants, unable to harvest data across borders and stymied by hostile regulation, are losers in terms of their travel aspirations while the scenario is good news for travel agencies.

“Business costs rise as companies struggle with a mosaic of legal, tax, labour and data protection laws,’’ the report says.

Pop artist Andy Warhol heads a fourth scenario involving a standardised world in which consumers become more price sensitive and are unwilling to pay for personalised packages.

Under this scenario, Asia grows but the West stagnates and innovation is localised because of strict privacy laws.

A rising Asian middle class, albeit with less spending power than their counterparts in US or Europe, sees local and regional tourism grow rapidly with a proliferation of local and regional airlines.

Sluggish growth in The West diminishes the demand for personalised travel but potentially boosts the sharing economy.

Profit margins come under pressure in an environment that encourages consolidation to form global groups of hotels airlines, airports.

“A consequence of a more standardised world is that travel services become more of a commodity,’’ Amadeus director of corporate strategy Rafael Hernandez says of the Warhol scenario.

“If travellers don’t want to pay for tailored plans, there will be more standard offers. For travel agencies, it will be more difficult to compete with the tour operators and their offer of standardised package tours. Tech giants will find the industry less attractive.’’

Fresh Mint for JetBlue

U.S. airline JetBlue isn’t underestimating the allure of lie-flat seats.

The low -fare/high-frills carrier is boosting the number of daily Mint flights to more than 80 beginning early next year.

 

“Travelers are overdue for an upgrade of the so-called ‘first class’ offered by other airlines,” says Marty St. George, the carrier’s executive vice president commercial and planning.

“In every city where we’ve introduced Mint we’ve transformed the premium travel business and boosted overall performance on the routes.”

 

The U.S. “transcon” (transcontinental) market is the prize here.

Populated by the likes of Delta, American, United, and Alaska it’s the arena in which airlines roll out their cutting-edge ideas, especially up front, beyond the curtain separating their premium product from the “main cabin.”

 

Who’s best is largely a matter of taste, allegiance by corporate travel buyers and the elite frequent flyer status of customers.

 

What’s in undeniable demand is lie-flat seating. Here’s where JetBlue plans to introduce it or increase such service in existing markets:

 

Beginning January 4, 2018, JetBlue will launch nonstop Boston Logan – Las Vegas Mint service with a couple of daily nonstops.

 

The move follows the airline’s already announced plans to begin Mint flights between New York JFK and Las Vegas this November.

 

Word that JetBlue will strike at the heart of well-thought-of Alaska Airlines’ route system sets the table for some high-flying competition in the Seattle/Tacoma – Boston market this fall.  Two daily Mint nonstops get off the ground February 15, 2018.

 

A bit later in the year, JetBlue serves up Mint in between New York Kennedy and Seattle/Tacoma. There will be but one Mint flight on this route per day.

 

To illustrate how popular lie-flats are,  JetBlue adds an eleventh daily Los Angeles International – New York nonstop, as well as a fifth daily San Francisco – Boston frequency.

 

While the product was designed for the demands of revenue-producing business travelers who frequent the transcon, JetBlue is doubling up on leisure focused Caribbean Mint flights early next year. Second Saturday-only seasonal roundtrips are set for JFK – St. Maarten from January 13, 2018, with Boston- Aruba and Boston-St. Maarten following from February 17.

 

A321s will do the heavy lifting on these routes.

Singapore tweaks Capital Express service to Canberra and Wellington

Singapore Airlines has retimed its Capital Express flight to the Australasian capitals of Canberra and Wellington to improve connections with other flights in its network and make the service more efficient.

The airline said the changes to the service would see  SQ291 leave 55 minutes later from Singapore and SQ 292 leave Wellington 65 minutes earlier, cutting down the turnaround time in the New Zealand capital.

The four-times weekly Boeing 777  operation was launched in September and was warmly welcomed as the first international scheduled service to Canberra.

Despite some doubts about the route’s viability at competitor Qantas, Singapore was optimistic at the time that Canberrans would support the flights as an alternative to travelling to Melbourne or Sydney to catch an international flight.

The airline’s regional vice president South-West Pacific, Tan Tiow Kor, said on Thursday the timing changes were part of a normal review of the route and were being made to improve operational efficiency.

“While the loads we have achieved for the flights in the first 10 months have met our expectations, we believe there are some areas where we can improve efficiency,” Tan said in a statement.

“Re-timing the flights will assist in this goal, while also providing additional connections from the Singapore Airlines global network to SQ291.

“The later departure from Singapore will allow customers travelling from Bali, Hanoi, Ho Chi Minh City, Hong Kong, Kuala Lumpur, Manila, Phuket, and Shanghai to connect to the Singapore-Canberra-Wellington flight.

“These new connections provide a great opportunity to increase the number of inbound visitors to Canberra.’’

Tan said the changes were the result of a review of the first six months of operation and the airline would continue work with partners to develop and grow the route.

“As the first airline to operate the Singapore-Canberra-Wellington route there have been a number of learnings that we have taken out of the first 10 months of operation,’’ he said.

“These learnings were fed into the review and have resulted in our decision to re-time the flights.

“We will continue to monitor the performance of the operation and if required make further adjustments where necessary.”

SIA operates 126 flights a week to six cities in Australia and in 2017 is celebrating its 50th anniversary serving the continent.

Opening the world’s eyes to a faster future

Blake Scholl, 36, former Amazon manager and internet entrepreneur, is the founder and CEO of Boom Supersonic, a start-up from Denver/Colorado.

Boom is aiming at bringing to market the first supersonic passenger airliner since Concorde, with entry into service planned from 2023. In  2018, a two-seater demonstrator aircraft dubbed “Baby Boom” is supposed to fly.

At the Paris Air Show,  Boom revealed that currently 76 of the 55-seat production-type jets have been reserved by five undisclosed major airlines with substantial, non-refundable down payments. Andreas Spaeth exclusively talked to Scholl recently.

AirlineRatings: How did you get hooked on supersonic travel, without ever having flown on Concorde?

Blake Scholl: It started in 2007 when I was working at an internet start-up in Seattle.  One day my girlfriend was stuck on one of these slow, hopelessly delayed flights, and when I was waiting for her I thought: ‘What happened to Concorde and supersonic flight?’.  But there was no credible effort to build a supersonic aircraft I could see myself flying on. There was just some Science Fiction stuff. Or maybe a private jet for billionaires – I said well, that’s not for me. I thought: Could I start a company to build a supersonic jet? I thought the answer would be ‘No’. I started to look at it more seriously three years ago, I thought I would do two weeks of research and get the whole idea out of my system.

Q: But you obviously didn’t, why not?

Scholl: The more I learned the more I realized that we actually can do it. It’s hard but it’s possible, as in fact we already have all the key technology we need. Relative to Concorde, we have had 50 years of progress in how we build aircraft. We’ve got better ways of optimized aerodynamics, we have new materials like carbon-fibre composites, we have significantly quieter and more efficient engines. If you take all these things together you can build a new-generation supersonic airplane that costs 75% less to fly than Concorde. And once we realized that we said: Either we have no courage, or we want to start this company and do it.

Q: Boom is deliberately clinging on to existing technology rather than going into the unknown. So how do you actually exploit the progress made since Concorde?

Scholl: We use state of the art technology, the same that is on the latest subsonic airplanes. Aerodynamics, materials and propulsion are the three big categories. From an aerodynamics perspective, it used to be you had to design an airplane in a wind tunnel. It takes about six months, meaning you can’t do very many tests and can’t touch many designs. Today’s computer simulations, in contrast, are really good, you can do all your optimization in the computer, meaning you can do six months of work in half an hour. And you can test thousands of more design ideas than you could before, which means you can find better ones and you end up with a refined aerodynamic shape of the airplane, with more lift and less drag. New materials mean you can come up with a very complex shape of the airplane, it turns out the way you want it to, it’s hard to find a straight line on our aircraft. With composites, you mould the parts into any shape you want them.

Q: For the engines you stick with fairly known technology, at least with your demonstrator ‘Baby Boom’, why?

Scholl: Yes, the production aircraft will use the same turbofan technology that’s in an Airbus or Boeing aircraft. ‘Baby Boom’ will use a small old engine, because that’s what fits the airplane. We know it’s going to work with the turbofans for supersonic, the engine manufacturers have done the work on their side, and they know it’s working, too. Basically, you take three existing wide-body engines to power a much smaller airplane, so you’ve got a lot more thrust. The way you adapt the engines themselves is: For subsonic, you want these great big fans at the front. It turns out for supersonic, however, you want a medium size, a much smaller fan. You need a compromise about being quiet at the airport and being fuel efficient at high speed. But it’s the same technology as on other aircraft, you just adapt it. Basically, you just change the fan size, which is a straightforward thing to do, the same technology that’s flying today, you are adapting it for high speed. We haven’t chosen an engine supplier yet, as we are talking with everybody.

Q: What about engine noise and also about the sonic boom a supersonic aircraft inevitably produce?

Scholl: The engine noise at the airport will be 30 times quieter than Concorde, which was really loud. And we don’t use afterburners on take-off, which is a big factor. And on the sonic boom side, it is also quieter by a factor of 30 versus Concorde, so the Boom passenger airliner will be 30 times quieter both at the airport and with the sonic boom it causes.

Q: Serious scientists argue that the speed of Mach 2.2 you are aiming at, 10% faster than Concorde, is unrealistic. Is it?

Scholl: The opposite, I think the lower speeds aimed for by other projects are actually the problem. The point of supersonic is not to save you an hour here and there. That would be great, but it wouldn’t be transformative. The power of supersonic is when you change where you can go, when you can save entire days off of a trip. The most important travel route around the world for business today is New York to London. If you catch the first flight of the day from New York, going to London, and you travel at Mach 1.5, you’ll get to London after everyone has already closed up shop. Then you still lose the day. With Mach 2.2, you make it there in time for an afternoon meeting, even including ground transportation. That’s really important. If you look at an airline schedule about what trips passengers can take, Mach 1.5 isn’t good enough in most cases. You have to go at least Mach 2. And my belief is that 50 years after Concorde, we need to be faster, not slower. There is a huge need to fly this fast, the other proposed lower-speed concepts will run into some real challenges when you look what you can actually do with them.

Q: Critics say your aircraft will be too big to be viable. True?

Scholl: I rather think it’ll be too small. This works on hundreds of routes that have enough premium traffic for it. We’ve already announced 76 aircraft reserved by five airlines, and this is just scratching the surface, this is going to be a huge market. We are on track to hit this 1,300 sales forecast just for our Boom aircraft alone over ten years. This is supported by a third-party analysis made by the Boyd Group. And I think there is a good chance we’ll beat that. History shows that when flights get faster, people travel more often. It happened when jets replaced propeller aircraft, traffic grew like six-fold. When you can get from London to New York in 3:15 hours instead of seven hours, a lot more people will go. Which means you will see a big increase in demand. So in light of that, this aircraft might be way too small.

Q: What do you expect to be your first supersonic flight as a passenger to be like?

Scholl: It’s gonna be awesome, I can’t wait to see the curvature of the earth for myself from 60,000 feet through our big windows. It’s going to open the eyes of the world to a faster future.

www.boomsupersonic.com

 

MH370 search a rich source of undersea data

Sea floor mapping conducted off Western Australia during the search for Malaysia Airlines flight MH370 is being hailed as an invaluable resource for the scientific community that has revealed previously unseen details of the Indian Ocean depths.

Although it failed to find the wreckage, the first high-resolution look at the remote area of the Indian Ocean shows never-before-seen-detail of ridges six kilometres wide and 15 kilometres long that rise 1500m  above the sea floor.

There are also fault valleys 1200m deep and five kilometres wide.

It was one of the biggest marine sweeps ever conducted and searchers collected 278,000 sq. kms of bathymetry data from the wider search area 2000kms from Perth.  This increased to 710,000 sq. kms when data acquired during transits taking up to six days transit between port and the search area are included.

The information has been used to make maps with a resolution 15 times higher than those made previously using satellites.

Data from the search’s first phase were released by Geoscience Australia Wednesday to the international community with more to come in mid-2018.

The first phase involved data collected in the Southern Indian Ocean off Western Australia during a bathymetric survey used to map the seabed and lay the foundations for a more detailed search.

The detailed search of a 120,000 sq, km area initially believed likely to contain the debris failed to find any sign of the plane, which disappeared in March, 2014, with 239 passengers and crew on board.

Subsequent drift studies made possible by the discovery of aircraft debris caused experts to revise their estimates of its likely position to an area to the north of the original search zone.

However, the Malaysian, Australian and Chinese governments decided to suspend the search. which had already cost about $A200m, before the newly identified area could be thoroughly probed.

Geoscience Australia was involved in the Australian Transport Safety Bureau-led search because of its expertise in marine mapping. It was also responsible for processing and analysing data from the two phases of the search.

The bathymetric data in the first phase was used to develop maps of the sea floor topography with a resolution 15 times greater than those made previously using satellites. These aimed to allow the second phase, a more detailed underwater search using towed and autonomous underwater vehicles, to safely negotiate obstacles.

The chief of Geoscience’s Environmental Geoscience Division, Dr Stuart Minchin, said only 10 to 15 per cent of the world’s ocean had been surveyed with the kind of technology used to search for MH370.

This made the search area among the most thoroughly mapped regions of the deep ocean on the planet.

“So this data is unique both because of the remote location of the search area, and because of the sheer scale of the area surveyed," he said.

Dr Minchin said the data would contribute to a greater understanding of the geology of the deep ocean and the complex processes occurring there.

“It will be important for a range of future scientific research, including oceanographic and habitat modelling,’’ he said. “While tragically the aircraft has not yet been found, I am proud we could bring the organisation's expertise to bear on such important work.’’

Authorities always intended to release the data and it was done so with the support of the Malaysian, Chinese and Australian Governments.

Geoscience has released an interactive story map for public consumption while more detailed data is on organisation’s website.

National Computation Infrastructure Australia is hosting raw data that can be downloaded by experts

United second-quarter profit soars despite Dao incident

The public battering United Airlines suffered over its treatment of a 69-year-old doctor has not translated to its bottom line with the carrier on Tuesday reporting a strong increase in second-quarter net profit to $US881 million.

The result, up 39 per cent compared to last year, came as revenue rose 6.4 per cent to $US10 billion, passenger revenue per available seat mile rose 2.1 per cent and consolidated yield increased 2 per cent in what president Scott Kirby described as “an outstanding quarter”.

Calls for a boycott of the airline after Dr David Dao was dragged screaming from his seat on April 9 went unheeded with the airline reporting a 5 per cent rise in passenger numbers over the three months to June 30 to 38.25 million.The increase on mainline services was even higher at 9.5 per cent.

Read: United satisfaction ratings may survive furor.

Th results prompted chief executive Oscar Munoz to observe the results demonstrated “United is firmly on the right path’’.

“From investing in our products and our people, redoubling our focus on the customer experience, closing the margin gap with our peers and delivering strong returns to our investors, we have made important progress and moved United decisively forward,’’ Munoz said in the results announcement.

“No single quarter constitutes a trend and we still have much further to go before we fully realize the potential of this airline and exceed the expectations of our customers.

“But, we also know that one success begets another and the strong financial and operating performance we posted this quarter adds to the momentum that all of us here at United are determined to build upon."

United started the quarter in crisis mode after Dao incident prompted a global backlash that resulted in a mea culpa by Munoz and the introduction of changes to the way the airline operated.

These included increased customer compensation for voluntary denied boarding of up to $10,000 and a reduction in the level of overbooking that saw involuntary denied boardings in June down 88 per cent on the previous year.

The airline said it had implemented the majority of the 10 changes it announced to address the backlash.

It also pointed to improvements in its premium transcontinental services that included flat-bed seats in business class and complimentary meals and alcohol for passengers in Economy Plus.

Other pluses included improvements at Los Angeles International Airport and better ways to redeem frequent flyer rewards.

From an operational perspective, United said it delivered in the second quarter the best competition, on-time departure and performance in company history.

“As a result, United had fewer cancellations than any major competitor,’’ it said.

Air France receives low-cost Boost from pilot deal

Airlines attack french eco tax
Air France is strongly opposed to the new eco tax.

Air France will proceed with its new low-cost carrier after a lengthy dispute with pilots ended Monday with 78 per cent voting for a new labour agreement.

The airline now has deals with both flight and cabin crew and plans to launch its “Boost” project during autumn along a previously announced schedule that will see medium-range flights offered first with long-range flights following in 2018.

It is part of Air France’s strategy to cope with pressure from Gulf carriers as well as the expansion in Europe of long-haul, low-cost carriers such as Norwegian Air Shuttle and IAG’s recently-launched LEVEL.

Read: Europeans to see new long-haul, low-cost options as competition heats up.

The budget carrier will operate 10 long-haul and 18 short-haul aircraft and there are plans to recruit 250 pilots per year over the next three years.

The Air France deal with its main SNPL pilots’ union includes productivity gains estimated at 40 million euros ($US46m) annually across the wider Air France group and ends seven months of negotiations.

AFP reported the pilots agreed to forfeit a day of rest on medium-range flights and to give up their private toilets on Airbus A330 and A350 planes to create more space for passengers.

Air France-KLM chief executive Jean-Marc Janaillac said he welcomed the responsibility shown by the pilots.

“This agreement is the result of lengthy negotiations, which have resulted in a balanced compromise in favour of the interests of the company and all its employees,’’ he said in a statement.

“This milestone is part of Trust Together’s growth and recovery trajectory, driven in particular by the project for the new airline.”

The new airline will be pitched to the younger “millennial” market and management is hoping it will allow Air France to return to growth and operate profitability in highly competitive markets.

It plans to operate an Airbus fleet of A321s, A320s and A350s with the aim of achieving unit cost savings of 15 to 18 per cent on Air France.

Janaillac has also said it will be an  “innovation laboratory” for the group.

The Air France deal comes after Norwegian’s UK subsidiary was given tentative approval on July 14 by the US Department of Transportation to operate low-cost flights between the US and Europe.

The approval comes after the European Commission warned that a failure to grant the application, which was opposed by US carriers and union groups, would result in a formal arbitration under the EU-Europe open skies agreement.

Norwegian UK also plans to start services from London Gatwick to Singapore in September and Argentina early next year.

THE RATINGS YOU NEED!

AIRLINE SAFETY RATINGS
The only place in the world to get ALL Airline Safety Ratings in one place! The ONLY airline rating that includes Safety, Product and COVID-19 safety ratings! Visit our Ratings Now!

2024 Airline Excellence Awards

View our special section announcing the 2024 Airline Excellence Awards!

AIRLINERATINGS NEWSLETTER

Subscribe to have AirlineRatings.com Newsletter delivered to your inbox!

STAY CONNECTED

61,936FansLike
2,336FollowersFollow
4,714FollowersFollow
681FollowersFollow
Cookie settings