Boeing to delay 777X programme, cease 767F line, cut workforce
October 14, 2024
Boeing is delaying delivery of its first 777X aircraft to 2026, concluding 767 freighter production in 2027 and reducing its workforce by approximately 10% amid an ongoing strike by its machinists and resulting work stoppage.The US airframer's chief executive Kelly Ortberg told employees in a company memo on 11 October that development challenges, a flight test pause and the work stoppage has delayed the 777X programme's timeline. Additionally, he notes that Boeing will build and deliver the remaining on-order 767 freighters and conclude production of the commercial programme in 2027. "We must also reset our workforce levels to align with our financial reality and to a more focused set of priorities," Ortberg says in the memo. Boeing's 10% workforce reduction during "the coming months" will include executives, managers and employees. "We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them," Ortberg says. "However, the state of our business and our future recovery require tough actions." He notes that the company needs to focus its resources "on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment". Members of the International Association of Machinists and Aerospace Workers (IAM) on 12 September voted in favour of a strike, rejecting the tentative new labour agreement reached by Boeing and the union on 8 September Boeing disclosed on 8 October that it had withdrawn its latest contract offer and paused negotiations with the union representing about 33,000 machinists after a third round of talks with a federal mediator broke down. The company expects to report on 23 October third-quarter revenue of $17.8 billion. Cash and investments in marketable securities totalled $10.5 billion at the end of September.
Air Canada pilots ratify contract
October 11, 2024
Air Canada's pilots have voted to approve a new four-year collective agreement. The more than 5,200 pilots were represented in negotiations by the Air Line Pilots Association (ALPA), which in mid-September agreed a tentative pact with Air Canada. "This contract is the largest labour agreement in Air Canada's history and reflects contributions that our pilots bring to the success of our airline," states Charlene Hudy, chair of the Air Canada ALPA master executive council. "We look forward to working under these improved pay rates and working conditions while continuing to connect our passengers to Canada, North America and the world." Air Canada chief executive Michael Rousseau notes that the "mutually beneficial" contract "creates a framework for future growth of the airline and its network".
United to add eight new global destinations in summer 2025
October 11, 2024
United Airlines has unveiled a major international expansion of its 2025 summer schedule that will make it its largest ever transatlantic operation, and add new routes in Asia, Latin America and Africa. From its Newark hub, the carrier will launch twice-weekly seasonal flights to Nuuk on 14 June, four weeklies to Faro from 16 May 2025, and Madeira thrice-weekly from 7 June 2025. United will also launch thrice-weekly seasonal Newark-Palermo services using Boeing 767-400s from 16 May, while flights to Bilbao will begin on 31 May. The airline will resume service from Newark to Athens on 6 March, to Venice on 29 March and daily to Dubrovnik. It is also adding three new routes from Washington Dulles, including its thrice-weeklies to Dakar from 23 May, plus seasonal nonstops to Nice and Venice from 22 May. United will resume San Francisco-Barcelona and Chicago O'Hare-Athens from 1 May, with the latter flight operating with 787-10s. In Asia, the carrier will operate a seasonal service from Tokyo Narita to Ulaanbaatar from 1 May and a year-round service to Kaohsiung on 11 July 2025 and expand its Narita-Koror (Palau) service to year-round. Schedules data shows that it will be the only carrier to operate nonstop services between the USA and Kaohsiung, while it will join MIAT Mongolian Airlines and Aero Mongolia on the Ulaanbaatar route. United is also adding a weekly, year-round service to Puerto Escondido from Houston operated by United Express partner Mesa Airlines on Embraer 175 aircraft from 5 April, plus a daily San Francisco-San Jose (Costa Rica) service with Boeing 737 Max 8s.