This week’s top air transport stories includes the latest coverage of the antitrust trial challenging the pending merger between New York-based LCC JetBlue Airways and Fort Lauderdale-based ULCC Spirit Airlines.
Without a merger with JetBlue Airways, Spirit Airlines does not see a path to achieve planned growth or being able to effectively compete for market share with the Big Four U.S. airlines, counsel for the South Florida-based ULCC said on the opening day of the antitrust trial challenging the ULCC’s pending merger with New York-based JetBlue. On Day 2 of the trial, Spirit CEO Ted Christie cited challenges the ULCC faces that includes rising costs of labor and jet fuel, a demand shift to premium and international traffic, and ongoing issues with the Pratt & Whitney geared turbofan (GTF) engine.
In other airline news, Korean Air ordered 20 more Airbus A321neos, in the latest step in its long-term fleet upgrade and expansion plans. The latest deal follows a previous order for 30 A321neos, which are scheduled for delivery by 2028; the latest A321neos will deliver after that.
SkyWest agreed to purchase 19 Embraer E175s, which will fly for United Airlines under a capacity purchase agreement. The 70-seat aircraft in a three-class configuration will replace 19 Bombardier CRJ700s currently flying for United. SkyWest expects deliveries to begin in the fourth quarter (Q4) of 2024 with four, followed by seven in 2025 and eight in 2026.
Southwest Airlines is facing possible fines from the U.S. Department of Transportation (DOT) for its December 2022 operational meltdown.
Stockholm Bromma-based Braathens Regional Airlines (BRA), which went into administration in October, took delivery of its first Airbus A320 and will be adding two more of the type in November.
Air Niugini placed a firm order with Airbus for six A220-100s as part of fleet modernization efforts. The Papua New Guinea flag carrier is also set to acquire three A220-300s and a further two A220-100s from third-party lessors.
Three Vietnam-based institutional investors have preliminarily agreed to invest $100 million in VietJet Air as the LCC’s fleet crosses the 100 mark. The Hanoi-based LCC said the infusions would be used to “meet the needs of growth, investment, network expansion, and fleet expansion.” The investment transaction will be completed by the fourth quarter of 2023.
Air Canada plans to expand its Asia-Pacific service and will redeploy capacity into the region, shifting some away from the North Atlantic in the fourth quarter (Q4) and in the first quarter (Q1) 2024.
In manufacturer news, Pratt & Whitney engine issues forced All Nippon Airways (ANA) to reduce its schedule from January 2024 due to the latest inspection requirements for PW1100G-JM engines, which will also result in revenue cuts. ANA says 33 of its Airbus narrowbodies will be affected by the inspections, comprising 11 A320neos and 22 A321neos, which will begin in January 2024.
Boeing has begun certification testing of an upgraded high pressure (HP) turbine blade configuration on the Rolls-Royce Trent 1000 TEN version, marking a key step toward finalizing a package of fixes developed by the engine maker to correct long-running corrosion and fatigue issues on the 787 powerplant.
In sustainability news, a study looking at the impact of sustainable aviation fuel (SAF) on ground air quality has revealed that ultrafine particle emissions could be reduced by about 30%, compared with traditional kerosene. The research, which was performed by German Aerospace Center DLR, Copenhagen Airport, Scandinavian Airlines and BP, monitored ground emissions from a Scandinavian Airlines (SAS) aircraft over a four-week period.
U.S. airlines have backed the use of a carbon life-cycle assessment model that would make it easier for sustainable aviation fuel (SAF) made from corn ethanol to qualify for a government subsidy. A Nov. 1 letter to U.S. Treasury Secretary Janet Yellen, signed by fuel producers and seven major airlines, as well as Boeing and GE Aerospace, urges the Biden administration to immediately recognize the U.S. Energy Department’s Argonne GREET (Greenhouse Gases, Regulated Emissions and Energy Use in Technologies) model as an acceptable life-cycle assessment (LCA) methodology under the Inflation Reduction Act (IRA).
Universal Hydrogen (UH2) has demonstrated loading and unloading of its liquid hydrogen modules on an ATR 72 test aircraft at Toulouse Blagnac Airport.
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