ARC NEWS
Airbus abandons 2022 delivery target amid 'complex environment'
December 07, 2022
Airbus has abandoned its target of delivering around 700 commercial aircraft in 2022 after it reached 68 deliveries in November, bringing the net number for the year so far to 563. The European airframer says that it considers the target “now to be out of reach” because of the “complex environment” it is operating in. Airbus predicts the final delivery number will not fall “materially short” of the target of “around 700”. But the company adds it will be “adjusting the speed of the A320-family ramp-up to rate 65 for 2023 and 2024” because the “complex environment will persist longer than previously expected”. Until now, Airbus had planned to reach 65 A320-family deliveries in early 2024. A further target of reaching rate 75 is being maintained, the airframer notes. Despite the lower deliveries, Airbus says it “remains committed to delivering its financial guidance” for 2022 in terms of adjusted EBIT and free cash flow. Full-year order and delivery data will be disclosed on 10 January and financial results on 16 February 2023. November deliveries comprised six A220-300s, 28 A320neos, 25 A321neos, two A330-900s, one A330-800, one A330-200 and five A350-900s. Airbus booked 29 orders in November. These comprised orders from Azul Finance for three A330-900s, CDB Leasing for two A320neos, Condor for six A321neos and four A320neos, Croatia Airlines for six A220-300s, Aer Lingus for two A320neos, and British Airways for two A321neos and four A320neos. Orders for 14 aircraft were cancelled, the airframer says.


Air India to lease 12 additional aircraft to boost operations
December 06, 2022
Air India has signed lease agreements for six Airbus A320neos and six Boeing B777-300ERs to further expand its existing fleet. The 12 aircraft are expected to be inducted in the first half of 2023, the flag carrier says. It adds that the A320neo narrowbodies will be deployed on its domestic/short-to-medium haul routes, while the B777-300ER widebodies will be operated on long-haul international routes. The Star Alliance member leased 30 aircraft earlier this year, including 21 A320s, four A321s and five B777-200LRs. Air India's chief executive Campbell Wilson states: "Growing our network is an essential part of Air India's Vihaan.AI transformational journey and we remain committed to increasing connectivity and frequency of flights both domestically and internationally. These additional aircraft leases will support our near term growth even as we finalise plans to refresh and significantly grow our long-term fleet." As part of its expansion plan, the airline has already resumed operations of 19 long-grounded aircraft, with nine more to follow. It has also increased the frequency of flights between key cities on the domestic sector and announced direct flights between Indian cities and key global destinations like Doha in Qatar, San Francisco in the USA, Vancouver in Canada, and Birmingham in the UK.


Delta and pilots' union clear first hurdle toward new contract
December 06, 2022
Delta Air Lines and the Air Line Pilots Association (ALPA) have signed an agreement in principle encompassing terms for a new contract for the Atlanta-based carrier's pilots. The US major says that it "[appreciates] the work of the negotiating teams and the mediator in reaching this agreement in principle". "We are pleased to have reached an agreement in principle for a new pilot contract, one that recognises the contributions of our pilots to Delta’s success." In a memo sent on 2 December to the carrier's pilots, Delta's ALPA master executive council says that the agreement in principle (AIP) "will improve the value of our pilot working agreement [PWA] by 45%, and represents over $7.2 billion of cumulative value increases over the next four years". Additionally, the agreement's "me too" clause stipulates that pay for Delta's pilots will exceed by at least 1% rates for pilots employed by United Airlines and American Airlines for the duration of the four-year contract. Once final contract language is agreed upon by the union and Delta, the AIP becomes a tentative agreement for consideration by the master executive council. The tentative agreement will be sent to union membership for ratification if it is approved by the council. The union adds in the memo to Delta pilots: "There is still much work which must be completed prior to making these hard-fought gains permanent." In late October, Delta's pilots voted to authorise ALPA to call a strike if contract negotiations with the carrier break down and certain legal conditions for a strike are met. ALPA said at the time that Delta's pilots are working under pay rates, contractual provisions and benefits that were negotiated in 2016. Negotiations for a new agreement commenced in April 2019, nine months prior to the amendable date of December 2019. Talks entered mediation in February 2020 and were paused for nearly two years during the Covid-19 pandemic. Mediated talks resumed in January 2022. "Delta has rebounded from the pandemic and is poised to be stronger than ever, posting record revenues for the third quarter," Jason Ambrosi, chair of Delta's ALPA master executive council, stated on 31 October. "Meanwhile, our negotiations have dragged on for too long." Recent airline trade union activity shows that an agreement in principle is no guarantee that a signed final contract is imminent, particularly in the wake of US majors' profits in the third quarter of 2022. United and ALPA in May signed an agreement in principle encompassing terms for a new contract for the Chicago-based carrier's pilots. United's pilots voted to reject the agreement in November.


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