Ryanair may need to cut UK fares this winter: group chief
September 29, 2023
Ryanair sees a potential need to slash ticket prices to stimulate the UK market this winter, as it detects particular weakness in consumer confidence outside London. During a media event in London on 27 September, group chief executive Michael O'Leary said trading outside of the UK remained "strong" and showed no signs of a significant slowdown. However, the UK is "weaker [than other markets] with the exception of London, which continues to be strong". He attributes this to a challenging economic situation in the country with higher interest rates and energy bills than continental Europe. "We may have to stimulate fares here," he says, adding, however, that this "wouldn't be the worst thing in the world". He adds: "Demand for travel is not insatiable… Everything points to a dip in consumer confidence and consumer spending, and eventually that feeds back into [demand for] flights." Companywide sales are trending 4-5% ahead of last year through October, November and December, he notes, with capacity 60%, 30% and 15% booked up for those months, respectively. "We are seeing people booking earlier at slightly higher fares, but we are not sure if that will continue into winter." O'Leary repeated his criticism, originally aired earlier this month, of Martin Rolfe, the chief executive of UK air traffic controller NATS, describing his performance as "useless" and "incompetent". He also takes issue with Rolfe's 2023 pay award, labelling it "reprehensible and offensive". This follows the announcement on 25 September that flights would have to be cancelled at Gatwick this week because, NATS disclosed, 30% of its controllers were sick with Covid. NATS, he argues, has enough staff to operate effectively but is hamstrung by poor management and with many staff working from home. Two days of disruption to flights because of a system outage at NATS in August will cost Ryanair Group around £15 million ($18 million), O'Leary estimates, adding that Ryanair pays the air traffic manager more than £100 million per year for its services. He accuses UK aviation minister Baroness Vere of having "disappeared" amid the latest flight disruption. NATS operates through a public-private partnership and the UK government holds a 48.9% stake. The air traffic manager says it will not be making any further statements in relation to the disruption at Gatwick airport beyond a 25 September media release in which it said that given the levels of sickness NATS had experienced over the last few weeks "we believe it is the responsible thing to do to limit the number of flights this week in order to reduce the risk of daily disruption to passengers using the airport".
China Eastern to buy another 100 C919s
September 29, 2023
China Eastern Airlines has agreed to purchase 100 Comac C919s, marking the largest single order for the type. The aircraft are scheduled for delivery from 2024 to 2031, the carrier states. Five units are scheduled for delivery in 2024, while the numbers will be ramped up to 10 and 15 per year from 2025-2027 and from 2028-2030, respectively. The remaining 20 is scheduled for delivery in 2031. The carrier did not disclose the size of the deal, but noted that Comac has granted “substantive price concessions” resulting in a consideration that is “significantly lower”, says the carrier in a 28 September announcement to the Hong Kong stock exchange. The catalogue price of the 100 aircraft is approximately $9.9 billion. The carrier plans to finance the purchase with its own funds, loans from commercial banks and proceeds from the issuance of bonds and other financing instruments, adding that the purchase will be settled in both US dollars and Chinese yuan. “During the delivery period of the aircraft introduced, a large number of narrowbody passenger aircraft in the inventory of the company will be phased out from the fleet due to their age and lease expiry, etc,” states the carrier. China Eastern has two C919s in service, as part of an order of five it placed in 2021. It received its first delivery in December 2022, and the second in July this year. As of 26 September, the two units in service have had a combined 867 hours of commercial operation over 296 commercial flights, carrying more than 35,000 passengers, according to a WeChat post by Comac. The carrier has 431 aircraft in service and stored in its fleet, comprising 383 Airbus jets, 14 Boeing jets and two Comac units.
P&W to boost MRO capacity in Singapore amid PW1100G inspections
September 28, 2023
Pratt & Whitney will grow capacity of its Singapore overhaul shop Eagle Services Asia due to increased demand amid the inspection campaign for PW1100G engines. The facility, which is jointly owned with SIA Engineering, will lift its capacity by two third, the US engine manufacturer says. "We will increase staffing and provide extensive staff training so that we are well equipped to meet the increased demand," states vice-president of aftermarket operations Asia Pacific and Turkey Shangari Meleschi, adding: "We are dedicated to maintaining our customers' trust as we work through the impacts of the GTF fleet management plan." On 11 September, P&W parent RTX disclosed that around 3,000 PW1100G engines – up from 1,200 as predicted in July – will require inspection because the manufacturer has since determined that metal powder contamination affected component production of more parts than previously estimated. Eagle Services Asia has overhauled PW1100Gs since 2019. It additionally supports PW4000s, Engine Alliance GP7200s and GE Aerospace GE90s. P&W notes that its MRO network for PW1000G series engines has more than doubled in size since 2019.