Boeing may reach top of capped Max rate by second half of 2024
February 14, 2024
The US Federal Aviation Administration's increased oversight of Boeing has slowed production of 737 Max aircraft to the point that the manufacturer may not reach the top end of the FAA-capped production rate until the "back half" of 2024, Boeing finance chief Brian West has observed. West had noted on 31 January during an earnings call that per the FAA's 24 January announcement that it would not grant any production expansion of the Max, Boeing would maintain the production rate at 38 per month and "work transparently with the FAA to complete all requirements for future increases". Speaking on 13 February during the TD Cowen Aerospace and Defense conference, West said that Boeing in the first half of this year will be producing Max jets at a "lower output" rate, and that in the "back half will be cycling toward that 38 [monthly rate]". West adds that the intensified regulatory scrutiny that has followed the FAA's early January temporary grounding of Max 9 aircraft "is only going to work to make [Boeing] stronger", adding: "If we go slow and we stay at these capped rates for longer, we respect that". He adds: "Holding the rate is a chance for us to double down on stability." Boeing Commercial Airplanes (BCA) delivered 27 aircraft in January 2024, down from 38 deliveries in January 2023, the manufacturer has disclosed. All but two of the deliveries were Max aircraft, with the remainder being one 787-9 and one 767. BCA booked three gross orders during the first month of year, all for Max aircraft, compared with 55 gross orders in January 2023. One order for a 787-9 and two for Max jets were cancelled.
Qantas subsidiary pilots start six-day strike
February 14, 2024
Pilots at Qantas subsidiary Network Aviation have started a six-day strike after talks on a new labour deal broke down.
The Australian Federation of Air Pilots initially called the strike for 14-16 February, but has extended this to 19 February.
Network operates charter and most scheduled regional services in Western Australia, plus a daily Perth-Darwin service, under the QantasLink brand using Airbus A320ceos, an A319ceo and Fokker 100 jets. Schedules data shows that the unit is scheduled to operate 300 flights over the strike period, plus additional charters to remote minesites. Qantas says that it will use three mainline Boeing 737s and charter aircraft from other carriers to mitigate the impact of the strikes. AFAP says that the key issues it has put to Qantas include bringing Network pilot policies around rostering provisions, overtime and duty hours allowances in line with other QantasLink operators. "We have been negotiating in good faith for at least 18 months but the company continues to be inflexible," says AFAP senior industrial officer Chris Aikens. "We remain keen and willing to meet with the company’s management to arrive at some improvements in terms and conditions for the lowest paid jet pilots in the Qantas Group." In a statement provided by Qantas, the carrier says that its subsidiary is "committed to resolving the clear impasse in negotiations and is continuing with its application to have a new agreement arbitrated by the Fair Work Commission". Network chief operating officer Trevor Worgan adds: "We’ve been working to reach a new agreement for 18 months and want our pilots to start receiving pay increases of more than 25 per cent that we have offered. We’ve been clear that we cannot offer more.”
SpiceJet eyes $12 million cost savings from layoffs
February 13, 2024
SpiceJet is seeking to cut Rs1 billion ($12 million) in costs through layoffs as part of its turnaround strategy. The carrier says that following recent equity infusions it has " initiated several measures, including manpower rationalisation, aimed at achieving profitable growth and positioning ourselves to capitalise on the opportunities in the Indian aviation industry". It has not confirmed an Economic Times report that up to 1,400 positions will be affected by the layoffs, but states that it anticipates annual savings of Rs1 billion. SpiceJet adds, however, that half of its staff salaries for January have been credited and the remainder will be processed shortly, amid reports that there have been delays to salary payments. A large portion of the cuts are likely to come from operational areas, as one-third of SpiceJet's fleet of 66 aircraft are listed as stored, fleets data shows. SpiceJet has struggled in the aftermath of the Covid crisis, with several lessors and other creditors launching court action against it both in India and abroad. The airline's chair Ajay Singh committed to a Rs5 billion equity infusion in July, while in January it was given stock-exchange approval to raise a further Rs2.25 billion from a group of equity funds and other investors. The carrier tells says there are no delays to the equity raisings and that further announcements will take place as progress is made.