ARC NEWS
Delta and Aeromexico grow codeshare amid wait for final DOT order
April 18, 2024
Transborder partners Delta Air Lines and Aeromexico have added to their codeshare a daily route connecting Boston and Mexico City while awaiting a final order from the US Department of Transportation that will determine the fate of their joint co-operation agreement. The route, operated by Aeromexico, launched on 22 March. The Mexican carrier is using Boeing 737 Max 8 aircraft for the flights, Cirium data shows. The DOT on 26 January issued an "order to show cause" that, if finalised, would give the carriers until late October 2024 to "wind down" their immunised joint venture. It noted in its order that actions taken by the Mexican government regarding operations at Mexico City's Benito Juarez International airport are "fundamentally out of compliance with the existing bilateral air service agreement and international norms governing capacity management at airports". Delta and Aeromexico say in an objection submitted to the DOT on 23 February 2024 that they "strongly object" to the department's 26 January tentative dismissal of the two carriers' application seeking renewal of antitrust immunity granted in 2016 for the operation of a transborder joint venture. They argue that, if finalised, the order "would punish the [joint venture] partners and the communities they serve [and] erode competition in the transborder US-Mexico market". The US major told Cirium on 17 April that during the interim following the filing of its objection on 23 February, "nothing has changed here in that we don't know if and when DOT will issue a final order". Delta adds that more than 250 letters from governors, mayors, large corporations, and Hispanic organisations in the USA have been sent to US Transportation secretary Pete Buttigieg alerting him to the "devastating effect" the unwinding of the transborder partnership would have on consumers, businesses, and "especially Latino-American families". Aeromexico and Delta disclosed in October 2023 that they intended to expand their codeshare in 2024 with 17 new routes from seven airports in Mexico to nine destinations in the USA.


Lufthansa to debut 'Allegris' on A350 flight to Vancouver in May
April 17, 2024
Lufthansa Group will launch its new long-haul experience "Allegris" cabin product aboard an Airbus A350 flying from Munich to Vancouver on 1 May. The group says Toronto is the second destination which will be served alternately with Vancouver on selected flights in the first few months. It adds that with further A350s delivered, the Allegris cabin will also be used on flights to Chicago and Montreal this summer. Lufthansa plans to equip over 80 new aircraft such as Boeing 787-9s, A350s and 777-9s with its new long-haul product Allegris. It notes that its 747-8s will also receive the new product. Around 27,000 new seats will be installed with the business class seats manufactured by Stelia, Collins and Thompson, premium economy class seats by ZIM and economy class seats by Recaro. The group will invest €2.5 billion ($2.7 billion) in product and service improvements until 2025. Lufthansa notes that the new Allegris experience allows its passengers to create their own individual travel experience – with choices in seats, meal


United alters fleet plan with Max conversions and leased A321neos
April 17, 2024
United Airlines has converted a portion of its Boeing Max 10 orders scheduled for delivery from 2025 through 2027 to Max 9s, and may convert additional Max 10s to Max 8 and 9 aircraft. Additionally, the US major says it has signed letters of intent with two lessors to receive 35 new Airbus A321neos with CFM engines in 2026 and 2027. The Max order conversions and A321neo leasing deals disclosed on 16 April follow long-term manufacturing slowdowns at Boeing and Airbus, delayed certification of the Max 10 and the Alaska Airlines Max 9 door-plug blowout event on 5 January, which forced United to temporarily ground its 79 Max 9s. At the end of 2023, United had contractual commitments with manufacturers for 183 narrowbody deliveries this year. The Chicago-based carrier at the beginning of 2024 nevertheless expected manufacturing delays would result in 101 narrowbody deliveries. A further dimming of expectations was to come. "Following the 737 Max 9 grounding and the FAA's announced significant production capacity constraints on Boeing, the company now anticipates 61 narrowbody aircraft and five widebody aircraft to be delivered in 2024," United said on 16 April. United has on order 346 Max jets, 150 787s, 172 A321neos and 45 A350s. "We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver," United chief executive Scott Kirby states. "We'll use those planes to capitalise on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs."
United notes that the grounding of its Max 9 fleet earlier in 2024 had a "$200 million impact" on its first-quarter financial results, "without which the company would have reported a quarterly profit". The carrier in the first quarter of 2024 made a net loss of $124 million, narrowing its net loss of $194 million in the same period last year. It made an operating profit of $99 million, reversing its operating loss of $43 million in the first quarter of 2023. United generated $12.5 billion in total operating revenue in the first quarter, up 10% year on year. Total operating expenses grew 8%, to $12.4 billion. The carrier ended the first quarter with liquidity of $16.9 billion, and total debt and finance lease obligations of $27.2 billion.


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