AirAsia X Defers A330neo Deliveries to Counter Virus Effect
AirAsia X has begun laying plans to “aggressively” cut a number of routes and reduce its fleet size, including deferring the delivery of 78 Airbus A330neos as part of a larger effort to rein in costs to counter the effect of the new coronavirus.
According to the carrier’s recently released 4Q19 and FY2019 financial statements, plans include delaying its A330-900 deliveries, selling two A330-300s, and the early return of a further five aircraft to lessors. The aircraft sales could fetch a market price of up to $100 million while the airline expects new lessor agreements to slash its lease rates by 30 percent. The budget carrier did not elaborate on the duration of the A330-900 delivery deferrals but did add that it was working on additional short-term wet-lease arrangements while renegotiating the company’s lease maintenance reserves. The airline, which operates a fleet of 24 A330-300s, revised its deal with Airbus last August to take 78 A330-900s and 30 long-range A321XLR narrowbodies rather than 100 A330neos.
An order placed by All Nippon Airways for up to 20 General Electric GEnx-1B-powered Boeing 787s on Tuesday struck another blow to rival engine maker Rolls-Royce, whose troubled Trent 1000 powers 71 Dreamliners already in service at ANA. The decision by the Japanese airline to choose GE marks the second case of a Dreamliner operator switching from Rolls-Royce. Air New Zealand last summer chose alternative GEnx-1Bs to power eight incoming Boeing 787-10s after having to ground five of its 13 Boeing 787-9s due to premature turbine blade wear on the Trents.
ANA’s own problems with the Trent 1000 date back to 2016, when three engine failures caused by corrosion and cracking of intermediate turbine blades prompted it to replace the turbofans on all 50 of the 787s it had taken by then. By early last fall, the UK engine company acknowledged its efforts to replace all the turbine blades on the worldwide fleet would extend into the second quarter of this year.
U.S. Regional Airline Trans States to Close by Year-end
St. Louis-based regional carrier Trans States Airlines will go out of business by the end of the year following an orderly “wind-down” of operations, company CEO Rick Leach told employees in a Monday memo. Operating 41 Embraer ERJ-145s as a United Airlines partner, Trans States has suffered mightily with cost overruns and a shortage of captains over the past 18 months, leading to a decision to shutter the business.
In his memo, Leach cited moves by U.S. major airlines to shift aircraft among their partners to simplify and create “critical mass” among fleet types and reduce geographic overlap of flying as a major reason for financial distress within the regional industry at large. United, for one, continues to consolidate and restructure 50-seat jet flying among its various regional affiliates, most recently announcing a major fleet addition at its ExpressJet partner.
Heathrow’s Third Runway Ruled Illegal over Climate Change
Heathrow Airport remained upbeat on plans to build a third runway despite the London Court of Appeal’s ruling on Thursday that the UK government's decision to give the £14 billion project the go-ahead was unlawful on environmental grounds. In their ruling, the judges considered that the former government failed to take account of its commitment to the 2016 Paris agreement on climate change when setting out its support for Heathrow’s expansion in its national policy statement on aviation. Environmental groups, London mayor Sadiq Khan, and five councils in London affected by the expansion brought legal action over the government's approval of the proposed third runway on grounds of climate, noise, air pollution, and economic growth.
A Heathrow Airport spokesperson said the Court of Appeal dismissed all appeals against the government apart from one—namely climate change, which he described as “eminently fixable.” He added that the company will appeal to the Supreme Court on that one issue. “In the meantime, we are ready to work with the government to fix the issue that the court has raised,” he explained.
Qatar Airways, American Airlines Reestablish Codeshare Ties
Qatar Airways and American Airlines have reestablished ties two years after an acrimonious divorce over alleged subsidies from Persian Gulf governments to their state-owned airlines. A new code-share deal announced Tuesday links American’s U.S. hubs with Hamad International Airport in Doha, allowing Qatar Airways’ passengers seamless travel options on AA domestic flights out of Boston, Dallas, Chicago O’Hare, Los Angeles, Miami, New York JFK and Philadelphia. Under the re-activated codeshare, American Airlines said it also will explore flying direct between the U.S. and Qatar.
“We have moved on from past issues and look forward to working closely with American Airlines to build a world-leading partnership for all our customers,” said Qatar Airways CEO Akbar Al Baker.
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