Icelandair Group has reversed an extraordinary decision to dismiss all its cabin crew, after a swift resumption of negotiations resulted in another tentative collective bargaining agreement. The operator’s mass sacking of its flight attendants, which would have involved replacing them with pilots from 20 July, had initially spurred a strike threat from cabin crew union FFI. But the clash appears to have spurred a rethink on both sides, because the airline says they managed to restart discussions and have quickly reached another provisional collective agreement. Icelandair Group says this revised deal is “based on the same principles” as the previous one, whose rejection had prompted the airline to dismiss its entire cabin crew corps – all of whom are FFI members – and start seeking an alternative. The new agreement, which would be valid until the end of September 2025, still needs to be ratified by the flight attendants. This vote is likely to conclude on 27 July. Icelandair Group says the pact “meets the set objectives” of increased productivity and flexibility, while ensuring “competitive compensation” for cabin crew. It had said the same for the rejected deal, and the company has not specifically detailed the new agreement or any changes from the previous one, simply stating: “The current agreement results in further reduction in operating cost without negatively affecting the employee terms of cabin crew members.” But crucially, the airline says it will not resort to using pilots to take over from cabin crew and adds that the “most recent” cabin crew lay-offs will be “withdrawn”. FFI has yet to respond publicly to the developments. Cabin crew had held out against reaching a new collective agreement, after Icelandair sealed revised deals with its pilots and aircraft mechanics. The airline had been seeking to relax duty-time clauses and secure flexibility to allow it to operate new routes to the western USA and southern Europe. Agreements with its personnel representatives are an important part of a strategy to underpin Icelandair Group’s liquidity, which includes a new share offering.

Source: Cirium

Boeing’s services division has inked a series of orders and contracts – mostly with Asian carriers – for its digital and training products. Boeing Global Services announced that Japan Airlines, All Nippon Airways, as well as Xiamen Airlines have signed for its optimised maintenance programme that will be tap on advanced data analytics. Xiamen Airlines will be the first carrier from Mainland China to adopt the programme, joining 23 other carriers globally to have done the same, across a fleet of more than 2,500 Boeing aircraft, says Boeing Global Services. A group of smaller Chinese carriers, including Suparna Airlines, Guangxi Air, Air Changan and Urumqi Air, have inked a wide-ranging agreement for electronic flight bag solutions offered by Boeing subsidiary Jeppesen, under its FliteDeck Pro application. Boeing Global Services says the agreement will “enhance operational efficiency, further streamline paperless operations in the flight deck, as well as optimise flight planning capabilities”. Indian carrier Vistara has also signed a multi-year agreement with Boeing to expand its digital crew planning solutions. In addition, two carriers – Alaska Airlines and All Nippon Airways – have signed for maintenance-related deals with Boeing. Alaska Airlines inked a three-year agreement for quick engine change kits and tailored parts package to support its Boeing 737 fleet. Boeing Global Services states that this is the carrier’s “largest consumable and expendable services agreement”. “Throughout the term of this three-year agreement, Boeing anticipates the shipment of nearly 800,000 parts and four Quick Engine Change kits, which will be used to configure spare engines to allow for quick return of an airplane to service when an engine needs to be repaired or replaced,” Boeing adds. As for ANA, it has signed for ten quick engine change kits for its 767 fleet. The Star Alliance carrier has also inked an agreement to install a 787-9 galley facility at its training centre. Boeing Global Services did not indicate the total value of these contracts. Ted Colbert, president and chief executive of the unit, says: “As airlines and operators continue to respond to the current challenges facing the global air travel industry, our partners are moving forward, integrating creative solutions to continue connecting people around the world.” “Boeing is working closely with our customers around the world, delivering the customised solutions they need to improve operational efficiency, support their fleets, and reduce their costs,” Colbert adds.

Source: Cirium

Airports body ACI Europe does not expect passenger traffic to regain 2019 levels until 2024 – a year later than in its previous projection. Demand for air travel in Europe is returning "at a slower pace than we had hoped for", states ACI Europe director general Olivier Jankovec, and this has prompted the trade association to paint a more pessimistic picture of the sector's recovery from the Covid-19 crisis. Passenger traffic across Europe's airports fell 93% in June compared with the same month in 2019. While this was a slight improvement from the 98% drop recorded in May, it fell short of ACI Europe's expectations. The body is now forecasting that only 19% of July 2019's passenger traffic will be recovered in same month this year, after previously predicting 30%. "This is down to the still-incomplete lifting of travel restrictions within the EU/Schengen area and the UK, as well as the permanence of travel bans for most other countries," states Jankovec. Passenger numbers at European airports are likely to be down 64% in 2020 compared with last year, while revenues will fall 67%, ACI Europe predicts. It says those flights that have been reinstated across the continent are "generally achieving low load factors" – bad news for airport revenues. "The financial situation of airports is not significantly improving, with some even making more losses now compared to their situation prior to the restart," warns Jankovec. "Considering that the peak summer season normally accounts for a large share of annual revenues, and the fact that temporary unemployment schemes are coming to an end in many EU states – not to mention fierce airline pressure on airport charges – liquidity will remain an ongoing concern through the winter."

Source: Cirium