ARC NEWS
Boeing starts furloughs as it works to resolve strike
September 20, 2024
Boeing is implementing rolling furloughs to deal with the cash flow impact of a strike that has crippled production of its 737 Max, 767 and 777 lines. The action was announced in a memo to staff from new president and chief executive Kelly Ortberg, who said that while talks were continuing to resolve the strike, "it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover." "As part of this effort, we are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees," he adds in the 18 September memo. The memo states that Boeing is "planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike". Ortberg adds that he and the Boeing management team will also take pay reductions over the duration of the strike. Around 33,000 workers in the Puget Sound region of Washington state, Portland and California, represented by the International Association of Machinists and Aerospace Workers 761 and W24 districts started their strike on 13 September after over 90% voted to reject a new labour agreement that had been recommended by the union's leaders. Despite the impact of the strike and the furloughs, Ortberg says that critical safety, quality and customer support functions will be given priority and continue, while 787 production will also continue. Those jets are assembled by non-union labour at its North Charleston, South Carolina facility. Boeing is also expected to focus on clearing its inventory of jets that have not yet been delivered jets to keep up its cash flow. This is likely to include several Boeing 737 Maxes for Chinese airlines following regulatory pauses on deliveries earlier this year. Despite the furlough measures, Ortberg says that Boeing remains committed to continuing discussions with the IAM to reach a new agreement and end the strike.


​SAS to serve 15 new destinations from Copenhagen
September 19, 2024
SAS plans to launch 15 new routes from Copenhagen, including a new long-haul route to Seattle. The other new summer services include Krakow, Madrid, Budapest, Lyon, Valencia, Malta, Bucharest, Milan Linate, Seville, Turku, Billund, Kristiansand, Harstad/Narvik and Bodo, the carrier says. It adds that it will also launch a seasonal route between Oslo and New York JFK in summer 2025. Additionally, SAS will boost frequency on 15 existing services, including Stockholm, Oslo, Prague, Berlin and Helsinki. "Following new ownership and the successful completion of our restructuring, SAS is emerging as a competitive and financially strong airline," states SAS chief Anko van der Werff. "By enhancing Copenhagen as our main hub and expanding our network, we are boosting connectivity and driving economic growth not only in Denmark but across Scandinavia."


Alaska and Hawaiian say merger's consummation is imminent
September 18, 2024
The US Department of Transportation has approved an application for an interim exemption jointly submitted by Alaska Airlines and Hawaiian Airlines, putting their proposed merger within reach, the two US carriers say. "Subject to the satisfaction or waiver of the remaining conditions to closing, Alaska and Hawaiian expect to consummate the merger on or about September 18, 2024," Alaska says in a 17 September US Securities and Exchange Commission filing. Hawaiian's own SEC filing on the same day says virtually the same thing, with the exception being the reversal of the order of the two carriers' names. In December 2023, Hawaiian parent Hawaiian Holdings and Alaska parent Alaska Air Group agreed to combine under a $1.9 billion deal. Under terms of the deal, Alaska would acquire Hawaiian while retaining the latter carrier's brand. In August 2024, the US Department of Justice's antitrust division completed its review of the proposed acquisition of Hawaiian by Alaska without issuing an objection. Alaska said at the time that this marked "a significant milestone" in the merger's progress, which remained subject to Department of Transportation approval of an interim exemption application.
"Following that step, we will complete work to close the transaction, and proceed with integrating the two companies," Alaska said on 20 August. That step is now behind Alaska and Hawaiian.


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