ARC NEWS
Southwest ground-service employees ratify contract
March 22, 2024
Southwest Airlines' ramp, operations, provisioning and cargo agents have voted to approve a collective-bargaining agreement spanning five years. The US carrier's nearly 18,000 ground-service employees were represented during negotiations by Transport Workers Union Local 555. Southwest and TWU 555 had reached a tentative pact in February. "Our ramp, operations, provisioning and cargo agents provide exceptional customer service and are essential to the Southwest experience," states the airline's vice-president of labour relations Adam Carlisle. "This new labour contract rewards them for their work and places them competitively in the industry." TWU 555 notes in a letter sent to union members on 21 March that 78% of the voting membership were in favour of ratifying the tentative agreement. Separately, Southwest disclosed on 20 March that the Transport Workers Union Local 556 representing the Dallas-based carrier's nearly 20,000 flight attendants had tentatively agreed terms for a new labour contract.


Slot availability a 'competitive advantage' for Embraer: chief
March 20, 2024
Embraer's availability of E-Jet delivery slots from 2026 represents a "competitive advantage" versus Airbus and Boeing, the Brazilian airframer's chief executive Francisco Gomes Neto believes. Speaking during a financial results briefing on 18 March, Gomes Neto said that order activity in recent years had concentrated on larger aircraft than Embraer's E-Jet family. "But now," he adds, "we are also noticing an interest in smaller aircraft." Citing a recent study that a third of international aircraft demand is not being met, he suggests "there is an opportunity for airlines to add capacity to their fleets quickly" by ordering E-Jets. Airbus previously said it has no delivery slots for new A320-family orders before 2030. Boeing's 737 ramp-up plan, meanwhile, has been put on hold by the US Federal Aviation Administration as part of its probe in the US airframer's quality processes following the Alaska Airlines Max 9 in-flight door-plug separation accident in January. Beyond the E190-E2 and E195-E2, Embraer sees continued demand for first-generation E175s because of improvements in the US pilot labour market, Gomes Neto says. He estimates 30-40 annual E175 deliveries to replace in-service aircraft. New E175s are mostly being ordered by US operators because it is the sole in-production aircraft that complies with scope clauses in US collective labour agreements. Gomes Neto says that Embraer is involved in international sales campaigns totalling more than 200 commercial aircraft and predicts that the company's E-Jet production will grow to more than 100 annual deliveries between 2025 and 2026. He cites talks with Lufthansa Group about potential replacement of E-Jets in its fleet and a request for proposals by Polish carrier LOT for 48 new aircraft as examples of ongoing sales campaigns. Embraer targets 72-80 deliveries in 2024. The company handed 64 E-Jets to customers last year, citing supply chain bottlenecks as having limited output. The supply chain situation has become better since 2022, Gomes Neto says, noting close collaboration with suppliers to manage material flow to the airframer's production lines. "I am sure there will be more improvements in 2024 on major bottlenecks, especially when it comes to critical parts for production such as engines." Gomes Neto warns "there may be difficulties and delays" during the second half of this year, but he expresses confidence that the company will meet its guidance. "We are very confident because we have been conservative when it comes to the supply commitment."


Air NZ opens global search for SAF partnerships
March 20, 2024
Air New Zealand has issued an 'opportunity statement' seeking global partnerships to supply it with sustainable aviation fuel (SAF). The carrier states that the document provides an overview of its SAF requirements based on network, fleet, sustainability targets and other criteria, and is looking to enter into offtake agreements over the short- and long-term. Chief sustainability officer Kiri Hannifin says that finding a stable supply of SAF is critical to reducing the airline's emissions. "That’s why we’ve taken this novel approach, asking emerging SAF producers from around the world to connect with us and respond to the Opportunity Statement," she adds. The airline expects it will require SAF to make up around 20% of its fuel uptake by 2030, and is also advocating for a strategic regulatory package to support its uptake. In 2022 the airline took its first import of 1.2 million litres of SAF that was blended with fuelling infrastructure at Auckland airport. "Air New Zealand is an ideal airline partner for SAF innovators and producers. We have a mature understanding of SAF, a clear roadmap to meet our targets, and the volumes of SAF we need to align with current production capabilities," says Hannifin.


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