Carriers continue to suspend Tel Aviv services
October 24, 2023
A number of airlines are continuing to adjust their services to Tel Aviv Ben Gurion International airport for November as Israel's military moves closer towards a ground operation in Gaza. Schedules changes made on 20 October show that in total 316 weekly sectors into and out of Tel Aviv have been cancelled from the November schedule over the week, cutting seat capacity by over 66,000 seats per week. That figure does not include cancellations from Cathay Pacific, which advised on 22 October that it has cancelled its Tel Aviv services until the end of the year. It had already cancelled services to the end of October. Korean Air has also cancelled flights until January, schedules show, and a notice on its website confirms that it has issued a fare waiver for passengers booked on its services to and from Tel Aviv until the end of the year. TAP Air Portugal and Transavia have cancelled flights through to January. Schedules show that Lufthansa Group has adjusted its capacity to Tel Aviv, with it cancelling 21 Lufthansa flights that were scheduled to operate in November, daily Swiss services, and eight Brussels Airlines flights. Those changes reduce Lufthansa's November schedule to Tel Aviv to twice-daily, Swiss to daily and Brussels to six weekly. Austrian Airlines, meanwhile, has halved the number of services it will operate into Israel to daily. Turkish Airlines has removed 61 weekly return services to Israel from its schedule for November, which will be reduced to only twice-daily services per week. Compatriot carrier Pegasus has cut 33 return services but will still operate 10 per week through November. Week-on-week, El Al has not made any changes to its November schedule, while Israir has cut 10 sectors from Tel Aviv. Arkia has added six sectors, but on a weekly basis will operate 1,392 fewer seats during November.
Cebu Pacific explores SAF supply deal with Neste
October 24, 2023
Filipino low-cost carrier Cebu Pacific Air has signed a memorandum of understanding with Finnish renewable fuels producer Neste to explore the supply and purchase of sustainable aviation fuel in Asia Pacific. "Carbon emissions are a pressing concern in the aviation industry. To this end, Cebu Pacific has laid out initiatives to address our emissions footprint, with a primary focus on integrating SAF in its operations," says Cebu Pacific's chief strategy officer Alex Reyes. In September 2022, Cebu Pacific operated its first passenger flight powered by blended SAF from Singapore to Manila. The airline has announced another upcoming SAF-powered commercial flight from Tokyo Narita to Manila on 25 October. The airline aims to transition to an all Airbus A320neo and A330neo fleet by 2028 and will incorporate the use of blended SAF for its entire commercial network by 2030.
Alaska Air Group sells A321neo fleet to American Airlines
October 23, 2023
Alaska Air Group has reached an agreement to sell its 10 Airbus A321neos to mainline rival American Airlines. Aircraft sales will begin in the fourth quarter of 2023, Alaska says in a 19 October announcement. The sale completes the transition to an all-Boeing fleet for the Seattle-based carrier, which retired its remaining A321neos in September, after stating in March 2022 that the aircraft would exit the fleet before the end of 2023. In March, it was revealed that Alaska was in discussions to buy the 10 Airbus A321neos in its fleet from lessors and then resell the aircraft to a single buyer. At the time, it was also considering selling the aircraft to a lessor. Alaska Air Group inherited the aircraft from its 2016 acquisition of Virgin America. Prior to that deal Alaska Airlines operated only Boeing 737s. Matt Grady director of investor relations says on a 19 October earnings call that the transaction is "probably one of the more complicated ones that I've seen in my 25 years of doing this". "But our thinking on it is really simple," he adds. "We've been public in that there's six to eight years left on these above-market leases that Alaska acquired as part of the Virgin transaction. And our objective was just to find a transaction and build it that economically offset those remaining obligations." Emily Halverson, vice-president, finance, controller and principal accounting officer, says Alaska has reported special charges on its income statements over the past 12 to 18 months in relation to these transactions. "Cash-wise, we're about two-thirds of the way through the cash that we're going to incur with this. Of course, as we've purchased the lease or the planes from the lessors and then we sell the planes to American, there will be cash inflows and outflows," she said on the same earnings call. "So about two-thirds of the $300 million to $350 million total cash exposure that we've shared with you guys previously, we've already incurred that. And then the remaining one-third will happen over the next two quarters."