ARC NEWS
​Finnair to cancel 550 flights this week over strikes
January 30, 2024
Finnair expects to cancel around 550 flights on 1-2 February due to a strike planned by several unions across the country, aimed at the government. Industrial action will have a significant impact on Helsinki airport as well as the carrier, which normally operates approximately 280 flights per day. Finnair expects to operate just a handful of services through period. Cancellations will be implemented gradually from 30 January, with alternative routings offered to customers. Ground and inflight services are also expected to be affected. "It is unfortunate that the political strike will affect so many customers' travel," Finnair's vice-president of operations, Jari Paajanen, says. "We will work in close collaboration with our partners to ensure that after the strike, our flight operations can again commence as smoothly as possible." Finnair has already offered its customers the opportunity to reschedule flights or apply for refunds if they are unable to change travel dates.


Spirit notified that JetBlue may pull out of merger agreement
January 29, 2024
JetBlue Airways has flagged to Spirit Airlines the possibility that it may terminate their merger agreement, which has been blocked by a US district court judge, on or after 28 January. In a US Securities and Exchange Commission filing, New York-based JetBlue says it has told Spirit "that certain conditions to closing required by the agreement and plan of merger… may not be satisfied prior to the outside dates set forth in the merger agreement". JetBlue adds that it "continues to evaluate its options under the merger agreement", noting: "Unless and until such time as the merger agreement is terminated pursuant to its terms, JetBlue will continue to abide by all of its obligations under [the agreement]." Spirit and JetBlue have jointly filed with the US Court of Appeals for the First Circuit a notice of their appeal against a 16 January ruling by Judge William Young of the Massachusetts District Court that blocked the carriers from executing the merger deal they had agreed in July 2022.


'Boeing needs to get their act together': American chief
January 26, 2024
American Airlines has not been directly affected by either the FAA's grounding of certain Boeing 737 Max 9 aircraft or the regulator's recommended inspection of 737-900ERs fitted with mid-cabin door plugs, but the US carrier still relies on Boeing for a lot of its aircraft. The Fort Worth-based airline does not operate Max 9s or have the variant on order, It also does not operate 737-900 aircraft. Speaking during a 25 January earnings call, American chief executive Robert Isom noted that "some of Boeing's current issues are all around the Max 9 and 737-900 – American doesn't fly them". Nevertheless, he points out that American is a "big Boeing customer", and that the US manufacturer "needs to get their act together". American operates 488 Boeing aircraft and 494 Airbus jets. It has on order 101 and 54 Boeing and Airbus aircraft, respectively. Isom says: "All of Boeing needs to come together and get back on the right track. We will encourage Boeing to do everything they can to produce a quality product." He adds that he "has great confidence" in Federal Aviation Administration (FAA) administrator Mike Whitaker and expects he "will hold Boeing accountable". "Aviation in the United States – throughout the world – is the safest form of transportation. We need to keep it that way," Isom says. Isom notes that in addition to not operating the Max 9, American is "the operator [globally] with the largest amount of Airbus aircraft". American operates 59 Max 8s, and has 71 of that variant on order. It has no Max 7s or 10s on order, so it is not exposed to delays in certification of those two variants. "We have 20 Max 8s that are on the horizon for next year," Isom says. American in the fourth quarter of 2023 made an operating profit of $656 million, down 53% year on year. It generated $13 billion in total operating revenue during the period, down 1% compared with the fourth quarter of 2022. Total operating expenses increased 5%, to $12.4 billion. Capacity in the fourth quarter was raised 6% year on year. The carrier ended 2023 with $10.4 billion of total available liquidity, and total liabilities of $22 billion. American expects to raise capacity in the first quarter 6.5-8.5% versus the first quarter of 2023. Additionally, it forecasts that total revenue per available seat-mile in the first quarter of 2024 will be down 3.5-5.5% year on year.


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