ARC NEWS
KLM to cut 250 non-operational roles
January 30, 2025
KLM is planning to cut 250 jobs in non-operational roles as part of its efforts to structurally improve its financial and operational performance by €450 million ($469 million). The Works Council and the trade unions have been informed in advance, the airline says. "It is crucial for our future to structurally lower costs, which involves making painful choices. One of these measures is reducing the number of non-operational jobs, where we will try to avoid forced layoffs, although we cannot rule this out in advance," says KLM president and chief executive Marjan Rintel. He adds that the airline will continue to recruit operational positions to "maintain our operational capacity as much as possible". KLM says that it has also reached an agreement with its pilots’ union on temporary measures to increase pilot availability over the upcoming northern summer and winter scheduling seasons.


Thai rolls out business class on A320s
January 30, 2025
Thai Airways International has unveiled the business class seats on its Airbus A320s that will be rolled out on domestic and some regional international services. Currently available on selected flights, the new business class cabin features 12 exclusive seats arranged in a 2-2 configuration across the first three rows, it says. The seats are equipped with fold-away tray tables for dining and personal device use, complemented by beverage holders near the armrests. The new service is available on eight domestic routes from Bangkok to Chiang Mai, Chiang Rai, Khon Kaen, Udon Thani, Ubon Ratchathani, Phuket, Hat Yai and Krabi. The service also extends to 22 destinations across Asia, including to Taiwan, Hong Kong, Cambodia, Laos, Myanmar, Vietnam, Indonesia, Malaysia, Singapore, India, Nepal, Bangladesh and Sri Lanka. "The service, launched this January, will be available in all 20 aircraft by the second quarter of this year," Thai chief commercial officer Korakot Chatasingha says. Thai integrated the A320s into its fleet in early 2024 after absorbing low-cost subsidiary Thai Smile into the mainline carrier. Fleet data shows that Thai’s A320s are aged between 9.2 and 12.6 years old, with 15 on operating leases, four owned encumbered and one owned unencumbered by the airline.


Boeing sees path to exceeding Max production rate of 38 per month
January 29, 2025
Boeing and the US Federal Aviation Administration have come to terms on a "path" the US airframer can take towards producing more than 38, 737 Max jets per month, Boeing chief executive Kelly Ortberg has declared. A 38 aircraft-per-month cap for the Max programme had already been in place before the Alaska Airlines Max 9 door-plug blowout in January 2024. After the accident, the FAA kept that limit in place. In addition to reducing its monthly Max production rate to address quality and safety issues, Boeing in May 2024 delivered to the FAA a comprehensive action plan that included a system of key performance indicators tracking the manufacturer's production methods. Boeing is still working towards producing 38 Max jets per month. Its progress was slowed by the International Association of Machinists and Aerospace Workers' strike in autumn 2024. "For the 737 Max, we have sufficient parts inventory to enable producing at 38 a month, including fuselages," Ortberg said on 28 January during an earnings call. "All three of the production lines in Renton [Washington] are now cycling. In the past quarter, we completed our safety management meeting with the FAA in which they reviewed our safety management system and our production status, including spending time on the factory floor. They reported that they saw significant improvements, and I'm pleased that we have an agreed-upon path for rate increases beyond 38 per month." He adds: "It's all about adhering to our safety management system and a stable factory as measured through agreed-upon key performance indicators. It's in early innings on the production ramp, and we need to stay disciplined on maintaining a stable production system, but early signs are encouraging." Ortberg notes that US-based fuselage supplier Spirit AeroSystems has done a "really nice job of improving the quality of the fuselages and the flow of the fuselages", adding: "I don't view Spirit fuselages as a constraint right now for us to get to rate 38." He remains vague on the timing of reaching a monthly production rate of 38 Max jets per month and on approval of a rate increase. "We're going to go to that rate when the KPIs say that we're going to go to that rate, and we'll just see how that plays out," Ortberg says. "I do want to get through the rate 38 approval… this year and get to that 42 sometime towards the end of the year." He adds: "Historically, upward rate breaks have been pretty challenging. And when you look beyond the 38 a month to 42 and subsequent rate breaks, how are you thinking about what you need to get done to make sure that you have the right team in place to make those rate breaks happen, given that a lot of people have left over the past five years or so? "The most important thing is that we have the supply chain ready and mature." The 737 Max programme delivered 36 aircraft in the fourth quarter of 2024, including a ramp-up to 18 in December. As of 27 January, Boeing has delivered 33 Max jets during the first month of 2025. "January is off to a very solid start, and deliveries should be in the high 30s for the month," Boeing finance chief Brian West said during the earnings call. "We expect to be in a position to go above 38 per month later in the year." He adds that testing on the "anti-icing design solution" for the Max 7 and 10 is ongoing, "with certification expected to follow later in the year".


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