ARC NEWS
Ryanair confirms further 737 delivery delays
March 04, 2024
Ryanair has warned of changes to its summer schedule and a reduced traffic outlook as a result of additional delays to deliveries of Boeing aircraft. The Irish low-cost carrier says Boeing now plans to deliver 40 737 Max 8-200s before the end of June. Ryanair previously counted on receiving at least 50 new aircraft which could be used for the peak travel season in July, August and September. Under a previous plan, 57 Max 8-200s were scheduled for delivery by end of April. In addition to earlier schedule cuts, Ryanair says it will make "minor" changes to its network plan because of the latest delivery delays, through frequency reductions on existing routes rather than by cutting new services. The airline warns, however, that it now expects full-financial-year traffic through March 2025 to fall below 200 million passengers, having previously set a 205 million target. "We are very disappointed at these latest Boeing delivery delays," states Ryanair Group chief Michael O'Leary. "But we continue to work with Boeing to maximise the number of new 737 aircraft we receive by the end of June, which we can confidently release for sale to customers during the [summer 2024] peak." O'Leary says Ryanair will work with the airframer to take "delayed aircraft deliveries" during August and September, "to help Boeing reduce their delivery backlog". Late arrival of aircraft during the peak season may mean that the additional capacity can only be sold at lower fares, he notes. "Boeing continues to have Ryanair's wholehearted support as they work through these temporary challenges, and we are confident that their senior management team, led by [chief executive] Dave Calhoun and [finance chief] Brian West, will resolve these production delays and quality-control issues in both Wichita and Seattle," O'Leary says. The US Federal Aviation Administration has put on hold Boeing's plan to increase 737 production, because of quality issues that have come to light after the in-flight door-plug separation on a new Alaska Airlines Max 9 in January. In February, the FAA requested that Boeing develop, within 90 days, a "comprehensive action plan to address its systemic quality-control issues" and meet mandated safety standards. Boeing says: "We are communicating with customers that some delivery schedules may change as we take the necessary time to make sure that every airplane we deliver is high quality and meets all customer and regulatory requirements. "We deeply regret the impact this is having on our valued customer Ryanair. We're working to address their concerns and taking action on a comprehensive plan to strengthen 737 quality and delivery performance." O'Leary warns of constrained capacity and higher fares across European airlines during summer because of the combined effects of 737 delivery delays and Airbus A320neo-family jet groundings amid Pratt & Whitney's ongoing GTF inspection programme.


Qatar Airways resumes Osaka service from Doha
March 04, 2024
Qatar Airways has resumed direct flights between Doha and Osaka in Japan. Flights on the route will be operated daily with Airbus A350-900 aircraft, the carrier says. With the addition of the service, the carrier currently serves two cities in Japan – Osaka and Tokyo.


PAL’s parent company refutes sale of significant stake in airline
March 01, 2024
The parent of Philippine Airlines has refuted reports on the imminent sale of a significant stake in the airline while indicating it remained open to “strategic investors”. “While the sentiment is strongly in favour of welcoming strategic investor, the groundwork has yet to be started,” PAL Holdings stated in a 29 February filing to the Philippine stock exchange (PSE). It adds that “there is nothing to report on the matter at this time”. PAL was responding to a 28 February report by local newspaper The Philippine Star that the family of Filipino tycoon Lucio Tan, which controls the airline, was willing to sell a 20-25% stake, with a team recently formed to “receive some offers”. PAL Holdings’ 31 January PSE disclosure on its public shareholding indicates that Trustmark Holdings Corporation, a subsidiary of Lucio Tan’s listed holding company LT Group, owns the majority stake in PAL Holdings at 76.9%. Japanese airline group ANA Holdings has 9.5%, which it acquired in February 2019, although that was reduced to 4.78% during the airline's Chapter 11 reorganisation. “The Company has always been open or receptive to welcome strategic partners that will contribute positively to the ongoing effort of PAL to strengthen and position itself for growth in the coming years,” it states. It goes on to say that “alliances or partnerships of similar nature are most often beneficial to the company”. This is not the first time it has hosed down speculation that it was actively seeking new investors. In May 2023, the airline said it “was not actively seeking strategic investors” at that time, following remarks made by its chief operating officer Stanley Ng in response to what it described as a “theoretical question” on potential investment.


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