Dominating this week’s top air transport stories include FAA halting Boeing’s planned production increase of the MAX and United Airlines removing the MAX 10 from its internal plans as investigations continue on the inflight loss of an exit door plug on an Alaska Airlines 737-9 on Jan. 5.
FAA has taken the extraordinary step of denying Boeing permission to continue with its planned production increase of the MAX. The action, which comes as Boeing is in the midst of ramping up 737 production at its Renton site as well as standing up a new assembly line in Everett, Washington, is part of a broader FAA reaction to the recent incident, which was triggered by a serious lapse in the manufacturer’s quality control processes.
As groundings of the Boeing 737-9 affect its first quarter outlook, United Airlines is taking existing orders for the larger 737-10 variant out of its internal plans.
The European Commission (EC) opened an in-depth investigation into Lufthansa’s plans to buy a stake in Italian flag carrier ITA Airways, saying it wants to ensure the proposed deal will not reduce competition in short- and long-haul traffic.
In airline news, startup carrier AirJapan expects to take delivery of its second Boeing 787 by the end of April, allowing it to boost frequencies on its initial network. AirJapan is a subsidiary of All Nippon Airways (ANA) Holdings, with an LCC/hybrid business model. The LCC plans to start service on Feb. 9 with six weekly flights between Tokyo Narita and Bangkok Suvarnabhumi airports. Its second route will be between Tokyo and Seoul, with five weekly flights starting Feb. 22.
Southwest Airlines pilots ratified a five-year contract that contains “sweeping changes” to scheduling practices and enhancements to benefits including maternity and paternity leaves, disability coverage, retirement and scope protections. Initially, pay rates rise 29.15% on date-of-ratification, followed by 4% raises in 2025, 2026, and 2027, and a 3.25% raise in 2028, the Southwest Airlines Pilots Association (SWAPA) said.
Spirit Airlines shares that had fallen more than 60% after a judge’s ruling blocked its merger with JetBlue Airwayslifted more than 20% from the prior day’s close in Jan. 19 pre-market trading, as the carrier expressed continued confidence in the deal and outlined steps to profitability. The two carriers have 30 days to appeal the Jan. 16 ruling that blocks their deal as currently proposed.
European airlines including Air France, Transavia, and Ryanair are preparing to restart flights to and from Tel Aviv suspended since the Oct. 7, 2023, start of the Israel-Hamas war, which caused many carriers to halt services. Lufthansaand its fellow Lufthansa Group airlines SWISS and Austrian resumed flights Jan. 8.
European company Avia Solutions Group signed a share purchase agreement to take control of Australian carrier Skytrans. The acquisition is expected to be completed in March. Avia is the parent company for airlines including SmartLynx Airlines, Avion Express, AirExplore, KlasJet, and Magma Aviation. Gaining an AOC in Australia will allow it to operate passenger and cargo flights there.
In aircraft and engine news, WestJet acquired five new Boeing 737 MAX 8s, three from China’s CDB Aviation and two from Dublin-based lessor Avolon. The Calgary-based airline expects to receive delivery of the aircraft in early 2025.
Buoyed by a surge in engine orders, higher revenues and operating profits, General Electric says GE Aerospace is well-positioned for its launch as a separate entity in April. For 2024, GE expects to see strong growth backed by the continued surge in demand for aftermarket services and higher engine deliveries.
In sustainability news, European airports lobby group ACI Europe has published a new manifesto calling for more support for sustainable aviation fuels (SAF) as well as air traffic management (ATM) reforms. The publication comes as European institutions prepare to adopt broad strategic priorities for the coming five years to 2029.
Dublin-based ULCC Ryanair and Italian sustainable fuels provider Enilive signed a letter of intent (LOI) for the long-term supply of SAF at several airports across Italy served by the airline. The LOI will enable Ireland-based Ryanair to access to up to 100,000 tons/33 million gal. of SAF between 2025 and 2030, a total that Ryanair equates to 20,000 flights from Milan Malpensa to Dublin.
U.S.-UK advanced air mobility (AAM) startup ZeroAvia entered into a conditional agreement to supply 20 of its 600-kW ZA600 hydrogen-electric powertrains to Indian regional operator MEHAIR. ZeroAvia, which plans to certify the ZA600 by the end of 2025, and MEHAIR will also collaborate on establishing the fuel supply for the carrier’s services across India.
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