Turkish Airlines reaches 737 Max compensation agreement
January 06, 2020
Turkish Airlines has reached an agreement with Boeing over compensation for the financial impact relating to the grounding of the 737 Max. The carrier is intending to introduce 75 Max jets to its fleet, comprising 65 Max 8s and 10 of the larger Max 9. But while it has received 12 of the re-engined aircraft, deliveries have been held up by the worldwide grounding of the type in March. Turkish Airlines has revealed that it “came to an agreement” with Boeing concerning “compensation for certain losses” caused by the grounding as well as the non-delivery of 737 Max aircraft. It has not disclosed the extent or nature of the compensation, nor whether the agreement is a final or interim arrangement. Turkish Airlines’ latest fleet plan shows the airline aims to have 48 Max jets in its fleet, including the 10 Max 9s, by the end of 2020. But these numbers, it says, are only based on the original fleet-development strategy and are “subject to change” depending on developments within Boeing. Turkish Airlines has increased the number of 737-800s in its 2020 fleet plan, to 88 from a previous figure of 75 given in June. Its joint venture carrier SunExpress recently opted to increase its own Max commitment to 42 firm aircraft, through an agreement to take 10 more.

Source: Cirium

​Argentina imposes 30% tax on international flights
December 31, 2019
Argentina has announced the introduction of a new 30% tax on international air tickets bought in the country, creating an outcry from international airlines as the measure exempts the state-owned flag carrier. Part of the "national economic emergency law" approved by the newly elected Argentinian government, the tax is aimed at stabilising the local economy and the peso's exchange rate. It applies not only to tickets sold in foreign currencies but also to those offered in pesos by foreign airlines that repatriate local revenues converted into other currencies. This creates a competitive advantage for Aerolineas Argentinas' peso-denominated fares on international routes. IATA has expressed its "deep concern over the potential discrimination of international airlines operating in Argentina". In a somewhat comparable situation in 2002, the South American nation gave local airlines a better exchange rate on local airport fees, and several countries reacted by imposing special local surcharges on Aerolineas Argentinas' operations. While a number of airlines and travel agencies have already started charging the new tax – which was introduced with immediate effect – no concrete regulation has been published yet, creating confusion among passengers and airlines. In some cases, passengers are being alerted that an extra 30% has been blocked on their credit cards so that it can be added to the price if it turns out that the yet-to-be-published regulation applies to the ticket.

Source: Cirium

Germanwings cabin crew strike in dispute over part-time contracts
December 31, 2019
Germany's UFO cabin-crew union has called a three-day strike at Germanwings in a dispute over working conditions, leading to the cancellation of 182 flights. Germanwings, a unit within Lufthansa’s Eurowings subsidiary, says cabin crews began striking at 12:00 CET. The action is to continue through to midnight on 1 January. "This strike is unfounded and incomprehensible to us," Germanwings complains. "We are doing everything to offer our passengers a normal flight schedule between Christmas and New Year." Around 30 of Eurowings' 140 aircraft are operated by the unit. UFO says it called the strike after the failure of negotiations on a collective bargaining agreement that would cover part-time staff. "In unsuccessful negotiations, the employer repeatedly and finally made it clear that we did not want to meet our demand for a part-time contract," the union asserts. "We consciously announce this strike early, so that Germanwings passengers now have at least the chance to be rebooked to other airlines or to choose alternative means of travel." Further strike dates could be announced after 2 January, UFO warns. The union also notes that it is in ongoing conflict not just with Germanwings but also other entities spanned by Lufthansa Group: joint venture SunExpress, Eurowings, CityLine, and Lufthansa mainline. "The situation is most difficult at Lufthansa," notes UFO vice-chairman Daniel Flohr in a video statement. "On the one hand, it deals with the tariff issues of the Lufthansa airline. However, Lufthansa also brings in topics from other airlines and would like to arrange moderation with a duty to maintain peace at Germanwings, for example." Preparatory talks on an arbitration process between Lufthansa and UFO broke down repeatedly in November.

Source: Cirium


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