Tom Crabtree

Here's how #Boeing's quality and safety issues have impacted #LUV #Southwest and #AAL #AmericanAirlines latest earnings reports.

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American Airlines Reverses Course on AAdvantage and NDC. Amid recent financial setbacks, American Airlines announced a rethink of the airline’s New Distribution Capability (NDC) plans and some AAdvantage requirements. Initially aimed at enhancing the airline shopping experience and pushing direct bookings, these plans faced significant industry pushback. Read the full article: https://ow.ly/WMiE50S1gvU #AviationNews #AmericanAirlines #NDC #AAdvantage #TravelIndustry #AirlineStrategy #BusinessNews

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[Air Incheon ascends to No. 2 air cargo carrier with Asiana Airlines deal] With stock purchase worth W450b set for completion next month, CEO hints at IPO by 2026 Korea's sole all-cargo airline Air Incheon has been named the preferred bidder for Asiana Airlines' cargo freighter division, paving the way for it to expand its business routes to the Americas and Europe. The purchase price is estimated to range between 450 billion won and 500 billion won ($325-million-$362 million). Air Incheon is to sign a stock purchase agreement by the end of July after two weeks of due diligence and contract discussions. If the deal closes by the first quarter of next year, Air Incheon will ascend to become the nation's No. 2 air cargo operator from a distant No. 6. Based on trade volume last year, Asiana controlled 28 percent of the air cargo market, falling behind only Korean Air's 57.6 percent. Last year, Air Incheon posted 70.7 billion won in sales, which compared to Asiana’s 1.6 trillion won in freighter business alone. Tap below to read full story. #trade #bid #Asiana #KoreanAir #AirIncheon #cargo #airline #deal #stock #IPO https://lnkd.in/gcfU52ar

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Frontier Airlines, a prominent ultra-low-cost carrier in the United States, has made a significant alteration to its fleet expansion plans. The airline has decided to cancel its order for the Airbus A321XLR and instead opt for additional A321neo aircraft. Frontier was initially an enthusiastic supporter of the Airbus A321XLR, even being the first US airline to order the long-range variant. The plan was to acquire 18 of these aircraft to tap into new markets, including transcontinental routes and potentially even international destinations like Europe and Hawaii.  However, Frontier's recent financial performance has led to a re-evaluation of its growth strategy. The airline has encountered profitability challenges in recent years, necessitating a more conservative approach to capital expenditure. As a result, the decision to forego the A321XLR, which would have required a substantial upfront investment, appears to be a strategic move to preserve financial stability. #Airport #Airline #FrontierAirlines #A321XLR #A321neo #Airbus #AviationIndustry #AviationOasis https://lnkd.in/e8cmVzG7

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ACMI airline and Avia Solutions Group subsidiary, AirExplore, has received approval from the US Department of Transportation (US DOT) to begin operations in the United States, allowing the airline to conduct commercial flights for passengers, cargo, and mail. ✅ The approval comes after the airline reapplied for its Foreign Air Carrier Permit following the acquisition of the airline by Avia Solutions Group. The approval for operation in the United States follows other recent permits for the airline, as well as AirExplore’s placement of four 737NG aircraft with Air Peace in Nigeria. The airline has also recently announced the addition of three cargo aircraft to its fleet, signalling continued growth in global markets and a significant step in Air Explore’s international expansion. ✈️ Read the full story here 👉 https://lnkd.in/dTMdt9sF #AviaSolutionsGroup #AirExplore #Aviation

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Boeing predicts that passenger aviation traffic in Southeast Asia will triple over the next 20 years due to the region's expanding middle class and faster-than-average economic growth. To fulfil the growing demand for air travel, the region's fleet of aircraft is also expected to more than triple to 4,960 jets; according to Boeing's 2024 Commercial Market Outlook (#CMO), the company's long-term demand prediction for commercial aircraft and services. https://lnkd.in/gxyACvKp Kelly Ortberg Dave Schulte

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Boeing Set to Implement Furloughs Amid Ongoing Strike, Disrupting Production On Wednesday, Boeing's CEO announced plans to furlough a significant number of employees in an effort to reduce costs amid the ongoing strike by union machinists, which began last week. Those affected include executives, managers, and other U.S.-based employees, according to CEO Kelly Ortberg. “While this is a tough decision that impacts everyone, it's necessary to secure our long-term future and navigate this difficult time,” Ortberg said in a message to staff. Boeing has not specified the exact number of furloughed employees, but it's expected to be in the tens of thousands. At the start of the year, the company had 171,000 employees. The furlough announcement follows a strike by nearly 33,000 factory workers in the Seattle area, who rejected a proposal for a 25% pay increase over four years. Striking workers are demanding a 40% raise, the return of traditional pension plans, and other benefits. The strike has halted production of several airplane models, including the 737 Max, Boeing’s top-selling plane, directly affecting the company’s cash flow. Selected employees will be furloughed for one week every four weeks, while retaining benefits. Ortberg also mentioned that Boeing's senior executives will take pay cuts during the strike, though the details were not specified. The company is currently in talks with the International Association of Machinists and Aerospace Workers to reach a new contract agreement, but production remains paused across key programs. Ortberg emphasized the importance of preserving cash and ensuring Boeing's ability to recover. To further reduce costs, Boeing has cut supplier spending and eliminated most travel. Despite two days of mediation talks, no agreement has been reached, and further negotiations have not been scheduled. The striking workers are picketing at multiple locations in Seattle, California, and Oregon, as the union surveys members on their demands for a new contract. The last Boeing strike occurred in 2008.

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