BA check-in staff vote to strike
June 24, 2022
Over 700 check-in staff working for British Airways have voted for strike action this summer in a dispute over pay. Unions representing staff are demanding that a 10% salary cut imposed at the peak of the pandemic be immediately reversed. IAG-owned BA says it is "extremely disappointed" with the result, which follows an offer of a 10% bonus to account for lower salaries. This offer, the airline says, was accepted by staff in other areas of the business. Union members balloted by GMB and Unite voted overwhelmingly in favour of the action, raising the prospect of widespread disruption at BA this summer. “The problems British Airways is facing are entirely of its own making," states Unite national officer for aviation Oliver Richardson. "It brutally cut jobs and pay during the pandemic even though the government was paying them to save jobs. “In the case of this dispute, they have insulted this workforce, slashing pay by 10% only to restore it to managers but not to our members. BA is treating its loyal workforce as second-class citizens, and they will not put up with it a moment longer." The unions and BA will now enter a short period of negotiation, failure of which would result in strike days being announced. BA says it remains "fully committed to work together to find a solution" and intends to keep customers updated on the status of their flights. The vote applies to just under half of its Heathrow-based customer-service staff. Several airlines across Europe are facing strike action by employees, as a tight labour market and runaway inflation prompt demands for improved terms and conditions.
Ryanair loses appeal against Finnair state aid
June 23, 2022
Ryanair has lost its bid to overturn a European court's dismissal of its complaint about approval of state aid for Finnair.
The European General Court in April 2021 rejected Ryanair's plea against Finland's granting of a €600 million ($633 million) loan guarantee to Finnair. The Irish budget carrier then brought an appeal to the European Court of Justice, arguing that the loan guarantee was an "unfair subsidy" that favoured Finnair over other EU-based carriers. But the Court of Justice of the European Union's General Court says in a 22 June statement that Ryanair's action "seeking annulment of the decision by the [European] Commission to approve aid granted by Finland to the airline Finnair is dismissed in its entirety". The court adds: "The Commission was entitled to approve the recapitalisation of Finnair, carried out by its public and private owners on a pro rata basis in proportion to the previously existing ownership structure, without initiating the formal investigation procedure." Ryanair has brought a number of appeals against state aid granted to EU-based carriers during the Covid-19 pandemic. In addition to Finnair, it has sought to overturn decisions to approve state aid for SAS and Air France. In May 2021, Ryanair's complaints against state aid approved for TAP Air Portugal and KLM resulted in an annulment by the General Court, although the effects of the annulment – including any recovery of the aid – were suspended. In the Finnair case, the General Court says that Ryanair has not provided "any conclusive evidence of the existence of doubts as to the compatibility of the measure at issue with the internal market with respect to the commission's assessment of Finnair's market power on the markets in question". Ryanair has the option of appealing the latest ruling.
Norwegian concludes agreement with Boeing for 50 Max jets
June 23, 2022
Norwegian said on 22 June that the "various closing conditions" associated with its in-principle order for 50 Boeing 737 Max 8s have been met and that the order has been finalised. In May, the Norway-based carrier announced an agreement in principle for the purchase of 50 Max 8s with options for another 30 aircraft. Following the conclusion of the agreement, Norwegian estimates it will record a net gain of approximately NOK 2 billion ($202 million) in the second quarter of 2022, it says in a 22 June press release. It adds that Boeing and Norwegian have "filed to settle all outstanding legal disputes". “The agreement to purchase 50 brand-new and fuel-efficient aircraft constitutes a big leap forward in the strategy to solidify our market position in the Nordics,” says Geir Karlsen, chief executive of Norwegian. The 50 aircraft in the order are due to be delivered between 2025 and 2028, at a schedule "closely corresponding" to current aircraft lease expirations, Norwegian stated in a 30 May press release. The deal will lead to a "limited net increase" in the carrier's fleet. Norwegian said at that time that it intends to finance the outstanding balance of pre-delivery payments through positive cash flow from operating activities and that a "significant share" of the aircraft will be owned by the company, thus "ensuring an optimised and balanced aircraft financing structure".