Air Canada to increase foreign ownership

Air Canada made this announcement:

Air Canada has announced that the Quebec Superior Court issued earlier on May 8 a final order approving the previously announced plan of arrangement under the Canada Business Corporations Act effecting amendments to Air Canada’s articles of incorporation to align the permitted level of non-Canadian ownership and control of its voting shares within its articles with those prescribed by the new definition of “Canadian” under the Canada Transportation Act (CTA) as amended in June 2018.

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

ASL Airlines France adds two Boeing 737-800s

Leased from AerCap April 18, 2019, operated for TUI UK

ASL Airlines (France) (Paris-Charles de Gaulle) has leased a pair of Boeing 737-800s (F-GZTV and F-GZTZ) from AerCap.

This is a new type for the airline.

The pictured F-GZTZ (top) is operating for TUI Airways (UK).

Top Copyright Photo: ASL Airlines (France) Boeing 737-8K5 SSWL F-GZTZ (msn 30883) PMI (Javier Rodriguez). Image: 946508.

ASL Airlines aircraft slide show:

Air Wisconsin flight attendants say negotiations are at an impasse, ask government to impose deadline on talks

The Association of Flight Attendants-CWA (AFA) representing United Express carrier Air Wisconsin flight attendants has petitioned the National Mediation Board for a proffer of arbitration/release from mediation, which could start the clock for a potential flight attendant strike 30 days later.

โ€œEnough! Flight Attendants are living in poverty while airlines are making billions off their backs,โ€ said AFA International President Sara Nelson. โ€œThe aviation scam of the century is undervaluing Flight Attendants and other workers at regionals who provide the backbone service of mainline networks. The Air Wisconsin story is among the worst example of this with first year flight attendants making as little as $15,000 a year and others who have gone without a raise for 12 years are no longer able to keep up. Flight attendants have voted 99 percent to strike, if necessary, and today we are formally requesting a release from mediation to move these negotiations to conclusion. This is our number one contract fight.”

In a letter submitted to the National Mediation Board (NMB), AFA said it believes a proffer of arbitration and release from mediation is necessary to move the parties to agreement. The next step under the statute is a 30-day cooling-off period that ends with a strike deadline.

Today, Air Wisconsin flight attendants are demonstrating at Washington Dulles International Airport. They are joined by AFA union leaders, flight attendants from across the country and labor allies in the region.

โ€œWhat happens at one airline, affects us all and Flight Attendants across the industry are standing with Air Wisconsin Flight Attendants for a fair contract,โ€ Nelson stated.

 

Flight attendant negotiations at Air Wisconsin have been overseen by the National Mediation Board since 2017. In November 2018, Air Wisconsin flight attendants voted by 99 percent to authorize a strike. AFA has a trademarked strike strategy known as CHAOS or Create Havoc Around Our Systemโ„ข. With CHAOS, a strike could affect the entire system, a single airport, or a single flight. The union decides when, where and how to strike without notice to management or passengers.

Air Wisconsin is a regional airline, headquartered in Appleton, Wisconsin operating CRJ-200 regional jets. Air Wisconsin previously operated as an American Eagle regional air carrier. As of March 2018, Air Wisconsin operates exclusively as a United Express regional air carrier.

All photos by the airline.

Route Map:

Differentiating Delta: Brand campaigns establish local voice in NY, LA, Seattle

Delta Air Lines released this story:

Delta Air Lines recently launched regional brand campaigns in New York, Los Angeles and Seattle, three of its most competitive hubs. The campaigns โ€“ which derive from Delta’s national marketing campaign and lean on insights and cultural touchstones from local customers โ€“ allow Delta to communicate with its audiences in each region in a relevant way.

โ€‹With more than 800 collective daily departures from the four hub airports in these regions โ€“ John F. Kennedy International Airport, LaGuardia Airport, Los Angeles International Airportย and Seattle-Tacoma International Airport โ€“ Delta’s coastal hubs are some of its fastest-growing. The campaigns provide a unifying message as the airline marks key milestones and commercial priorities in each of these markets in 2019, along with investments in the airport experience at LaGuardia, LAX and Sea-Tac.

NEW YORK

Thisย campaign appeals to busy New Yorkers by showing how flying with Delta can offer a reprieve from the grind of city life.

Delta has made significant investments to provide more consistency, comfort and convenience inย all cabins of service on flights to and from New York. The campaign highlights Delta’s commitmentย by touting the addition of thousands of flights on new aircraft, the most First Class seats from New York and the addition of thousands of flights with seatback entertainment for New Yorkers.

The campaign’s creative includes digital media in The New York Times and The Weather Company; mobile e-newsletters to subscribers of Conde Nast and Meredith Publications; social media; and audio on Spotify, Pandora and iHeart Radio, with additional marketing channels to come later this year.

โ€‹โ€‹LOS ANGELES

This targeted regional campaign drives awareness across the entertainment capital of the worldย that Delta is L.A.’s true entertainment airline.

The campaign focuses on four key points showing that Delta’s investment in entertainment provides an enhanced flying experience for all Angelenos:

  • Delta has the most seatback screens from LAX
  • More seatback screens than any airline in the world
  • All-free entertainment
  • The ability to multitask throughย free in-flight entertainment, free messaging, and Wi-Fi packages โ€“ customers never need to sacrifice one form of entertainment for the other on board

The campaign launched with audio, companion banners and digital billboards, andย social content and custom digital ads in Delta’s channelsย and partners’ channels areย planned for later in 2019. Media partners include Spotify, Pandora, iHeart, Amazon, IMDB, The Hollywood Reporter, Billboard and more.

SEATTLE

This month, Delta will launch a new marketing campaign encouraging Seattleites to “SEA for Yourself” the Delta Difference.

The campaign helps Seattelitesย clearly understand the benefits of choosing Delta. Media channels will include social, audio, digital display and billboards that highlight Delta’s key differentiators in the market, including:โ€‹

  • Delta serves the most international destinations from Seattle
  • More seatback screens than any other airline
  • Delta Comfort+ on all flights from Seattleโ€‹
  • Miles that never expire

โ€‹

Cargojet announces a new partnership with artist Drake

Cargojet Inc. has announced their new partnership with multi award-winning artist, Drake.

Drake has been a longstanding supporter of Cargojet, being first introduced to the brand during the celebrations of its first Boeing 767-300F launch. The Canadian born company provides unparalleled transportation and logistics in air cargo services.

“Supporting home grown businesses has always been a top priority of mine, so when an opportunity came up to get involved with a great Canadian company I was honored to do so.” โ€“ Drake.

“We are very excited to partner with Drake as our ambassador and assisting him with his logistical needs and requirements,” said Ajay Virmani, President and Chief Executive Officer. “We have had a lengthy relationship with Drake and this partnership has grown organically between both parties. Cargojet and Drake are both great Canadian successes, we are thrilled to be partnering together,” he concluded.

Video:

Jazz Air Bombardier Q400 collides with a fuel truck at Toronto

A Jazz Air Bombardier DHC-8-402 (Q400) (C-FJXZ) operating as an Air Canada Express flight collided Friday morning (May 10) with a fuel truck while taxiing on the tarmac at Toronto (Pearson).

The flight was AC 8615.

Three people sustained minor injuries, including both pilots.

Social media:

Boeing statement on AOA Disagree Alert

Boeing has issued this statement:

On every airplane delivered to our customers, including the MAX, all flight data and information needed to safely operate the aircraft is provided in the flight deck on the primary flight deck displays. This information is provided full-time in the pilotsโ€™ primary field of view, and it always has been.

Air speed, attitude, altitude, vertical speed, heading and engine power settings are the primary parameters the flight crews use to safely operate the airplane in normal flight. Stick shaker and the pitch limit indicator are the primary features used for the operation of the airplane at elevated angles of attack. All recommended pilot actions, checklists, and training are based upon these primary indicators. Neither the angle of attack indicator nor the AOA Disagree alert are necessary for the safe operation of the airplane. They provide supplemental information only, and have never been considered safety features on commercial jet transport airplanes.

The Boeing design requirements for the 737 MAX included the AOA Disagree alert as a standard, standalone feature, in keeping with Boeingโ€™s fundamental design philosophy of retaining commonality with the 737NG. In 2017, within several months after beginning 737 MAX deliveries, engineers at Boeing identified that the 737 MAX display system software did not correctly meet the AOA Disagree alert requirements. The software delivered to Boeing linked the AOA Disagree alert to the AOA indicator, which is an optional feature on the MAX and the NG. Accordingly, the software activated the AOA Disagree alert only if an airline opted for the AOA indicator.ย 

When the discrepancy between the requirements and the software was identified, Boeing followed its standard process for determining the appropriate resolution of such issues. That review, which involved multiple company subject matter experts, determined that the absence of the AOA Disagree alert did not adversely impact airplane safety or operation. Accordingly, the review concluded, the existing functionality was acceptable until the alert and the indicator could be delinked in the next planned display system software update. Senior company leadership was not involved in the review and first became aware of this issue in the aftermath of the Lion Air accident.

Approximately a week after the Lion Air accident, on November 6, 2018, Boeing issued an Operations Manual Bulletin (OMB), which was followed a day later by the FAAโ€™s issuance of an Airworthiness Directive (AD). In identifying the AOA Disagree alert as one among a number of indications that could result from erroneous AOA, both the OMB and the AD described the AOA Disagree alert feature as available only if the AOA indicator option is installed.

Image: Boeing.

Boeing discussed the status of the AOA Disagree alert with the FAA in the wake of the Lion Air accident. At that time, Boeing informed the FAA that Boeing engineers had identified the software issue in 2017 and had determined per Boeingโ€™s standard process that the issue did not adversely impact airplane safety or operation. In December 2018, Boeing convened a Safety Review Board (SRB) to consider again whether the absence of the AOA Disagree alert from certain 737 MAX flight displays presented a safety issue. That SRB confirmed Boeingโ€™s prior conclusion that it did not. Boeing shared this conclusion and the supporting SRB analysis with the FAA.

Boeing is issuing a display system software update, to implement the AOA Disagree alert as a standard, standalone feature before the MAX returns to service. When the MAX returns to service, all MAX production aircraft will have an activated and operable AOA Disagree alert and an optional angle of attack indicator. All customers with previously delivered MAX airplanes will have the ability to activate the AOA Disagree alert.

New York Times: With 737 MAX, Boeing wants to win back trust. Many are skeptical.

Is Boeing facing a credibility problem for its Boeing 737 MAX? The New York Times raises this issue. Read the article.

Image: Boeing.

Jet2 announces two new Glasgow routes for the summer

Jet2-Jet2.com Boeing 737-800 WL G-JZHP (msn 63147) (Friendly Low Fares) PMI (Ton Jochems). Image: 946501.

Jet2 will add two new routes from Glasgow this summer – Almeria and Krakow.

The Almeria flights will operate weekly and Krakow will operate two days a week.

Jet2 will fly to 34 destinations from Glasgow.

Top Copyright Photo: Jet2-Jet2.com Boeing 737-800 WL G-JZHP (msn 63147) (Friendly Low Fares) PMI (Ton Jochems). Image: 946501.

Jet2 aircraft slide show:

IAG reports its first quarter results

International Consolidated Airlines Group (IAG) today (May 10, 2019) presented Group consolidated results for the three months to March 31, 2019.

IAG period highlights on results:

  • First quarter operating profit โ‚ฌ135 million before exceptional items (2018 pro forma1: โ‚ฌ340 million)
  • Passenger unit revenue for the quarter down 0.8 per cent, down 1.4 per cent at constant currency
  • Non-fuel unit costs before exceptional items for the quarter up 0.8 per cent, down 0.6 per cent at constant currency on a pro forma1 basis
  • Fuel unit costs for the quarter up 15.8 percent, up 11.1 per cent at constant currency
  • Net foreign exchange operating profit impact for the quarter adverse โ‚ฌ61 million
  • Cash of โ‚ฌ7,481 million at March 31, 2019 was up โ‚ฌ1,207 million on December 31, 2018 and net debt to EBITDA improved by 0.2 to 1.0 times
  • Profit after tax before exceptional items โ‚ฌ70 million down 62.6 per cent, and adjusted earnings per share down 57.5 per cent on a pro forma1 basis

 

Performance summary:

ย  Three months to March 31
ย  Statutory   Pro forma ย  Statutory
Highlights โ‚ฌ millionย  2019 ย  20181 Higher /

(lower)

2019 20182
Passenger revenue 4,646 ย  4,415 5.2 % 4,646 4,415
Total revenue 5,318 ย  5,022 5.9 % 5,318 5,022
Operating profit before exceptional items 135 ย  340 (60.3)% 135 280
Exceptional items ย  639 (100.0)% 639
Operating profit after exceptional items 135 ย  979 (86.2)% 135 919
ย  ย  ย         
Available seat kilometres (ASK million) 75,423 ย  71,093 6.1 %    
Passenger revenue per ASK (โ‚ฌ cents) 6.16 ย  6.21 (0.8)%    
Non-fuel costs per ASK (โ‚ฌ cents) 5.06 ย  5.02 0.8 %    
ย  ย  ย         
ย  ย  ย         
Alternative performance measures 2019 ย  20181 Higher /

(lower)

   
Profit after tax before exceptional items (โ‚ฌ million) 70 ย  187 (62.6)%    
Adjusted earnings per share (โ‚ฌ cents) 3.7 ย  8.7 (57.5)%    
Net debt (โ‚ฌ million)3,4 5,225 ย  6,430 (18.7)%    
Net debt to EBITDA3,4 1.0 ย  1.2 (0.2x)    
  ย  ย         
  ย  ย         
Statutory results โ‚ฌ million 2019 ย  2018 Higher /

(lower)

   
Profit after tax and exceptional items 70 ย  794 (91.2)%    
Basic earnings per share (โ‚ฌ cents) 3.7 ย  38.5 (90.4)%    
Cash and interest-bearing deposits 7,481 ย  7,442 0.5 %    
Interest-bearing long-term borrowings 12,706 ย  6,953 82.7 %    
For definitions refer to the IAG Annual report and accounts 2018.    

1 Pro forma financial information is based on the Groupโ€™s statutory results with an adjustment for IFRS 16 โ€˜Leasesโ€™ from January 1, 2018. A reconciliation of the pro forma financial information to the Group’s statutory results is available on the Company’s website.

2 March 31, 2018 comparatives are the Groupโ€™s statutory results as reported.

3 Net debt is long-term borrowings less cash and cash equivalents and other interest-bearing deposits. EBITDA is operating profit before exceptional items and depreciation, amortisation and impairment.

4 The prior year comparative is pro forma December 31, 2018. The December 31, 2018 as reported was adjusted net debt of โ‚ฌ8,355 million, and adjusted net debt to EBITDAR of 1.6 times.

 

Willie Walsh, IAG Chief Executive Officer, said:

โ€œIn a quarter when European airlines were significantly affected by fuel and foreign exchange headwinds, market capacity impacting yield and the timing of Easter, we remained profitable and are reporting an operating profit of โ‚ฌ135 million.

โ€œAt constant currency, non-fuel unit costs were down 0.6 per cent while passenger unit revenue decreased by 1.4 per cent.โ€

 

Trading outlook

At current fuel prices and exchange rates, IAG expects its 2019 operating profit before exceptional items to be in line with 2018 pro forma. Passenger unit revenue is expected to be flat at constant currency and non-fuel unit cost is expected to improve at constant currency. We expect passenger unit revenue at constant currency to improve for the remainder of the year.