ARC NEWS
LATAM to invest $360 million in 787 cabin renewals
September 16, 2024
LATAM Airlines Group plans to refurbish 24 of its Boeing 787s, upgrading the cabin interiors with new seats, onboard entertainment and design enhancements with a total investment of $360 million. The refurbishment process started in September at its maintenance bases in Sao Carlos, Brazil, and Santiago, Chile and is expected to be completed by mid-2026, the carrier says. Of the 24 aircraft to undergo retrofit, 10 are 787-8s for the Chilean domestic market and 14 are 787-9s, operating in Chile, Brazil and Peru.


American Airlines flight attendants ratify contract
September 13, 2024
American Airlines' flight attendants have voted in favour of a new five-year contract. They were represented during negotiations by the Association of Professional Flight Attendants (APFA). "This contract marks a significant milestone for our flight attendants, providing immediate wage increases of up to 20.5%, along with significant retroactive pay to address time spent negotiating," states APFA national president Julie Hedrick. American and APFA in July had reached a tentative agreement, which was subsequently submitted to the 28,000 APFA members for ratification. "It’s an exciting day for American's nearly 28,000 flight attendants and our entire airline,” American chief executive Robert Isom states. "Reaching an agreement for our flight attendants has been a top priority, and today, we celebrate achieving this important milestone." He adds: "I want to personally thank APFA president Julie Hedrick for her leadership through these negotiations and in her daily leadership of the industry's best flight attendants. I also wish to thank [US Transportation secretary] Pete Buttigieg and other partners in the [Biden] administration for their support throughout this process."


Rex accused of stealing and taking apart four Saab 340s
September 13, 2024
Regional Express has been accused of taking and disassembling without permission four Saab 340s from Missouri-based leasing company Jet Midwest after failing to make full payment for the aircraft. The leasing company is seeking damages for the loss, citing a market value of $7.2 million for the four aircraft, according to an 18 July court document filed by Jet Midwest to the New South Wales Supreme Court. “Aircraft were taken without any payment to or the consent of the Plaintiff and after the removal of the engines, propellers and components, were subsequently disassembled and destroyed,” reads the court document. The ordeal began when Rex, through its Rex Investment subsidiary, allegedly agreed to purchase four Saab 340s (MSNs 298, 304, 307 and 320) on 15 October 2019 from Jet Midwest for a total purchase price of $2 million, with delivery scheduled for the end of the month. Thereafter, Rex paid a deposit of $200,000 but did not make full payment by the time of the scheduled delivery on 31 October 2019. Instead, it requested in April 2020 to delay the purchase due to the Covid-19 pandemic. Jet Midwest then gave a payment deadline of June 2020, failing which the purchase agreement would be terminated and deposit forfeited. Rex is accused of hiring in October 2020 aviation parts provider 340 Aviation Services to take possession and disassemble the aircraft that were stored at a facility in Kingman, Arizona. According to the court document, Rex asked 340 Aviation to “have the engines, propellers and other valuable parts from the Aircraft shipped to the Defendant in Australia” and “cut the wings off the airframes and to scrap the airframes or ship the airframes to 340 Aviation’s facility”. The company was also requested to sell other parts, with 75% of the profits due to Rex and 25% to 340 Aviation. The engines and propellers attached to the aircraft were later shipped to Rex in Australia in March and September 2021, respectively, based on shipment tracking information, the court document shows. It was only in February 2023 that Jet Midwest discovered the aircraft were no longer at the Kingman facility, but was released to 340 Aviation on behalf of Regional Express. Following the discovery, Jet Midwest had from March 2023 made multiple inquiries to Rex regarding the aircraft and its parts, state the court papers. However, it adds: “At no time to date had the defendant or Rex Investment conceded any involvement in the removal of the aircraft from the Kingman facility or the whereabouts of the aircraft, or the engines, propellers and other parts of the aircraft.” Fleets data shows Jet Midwest bought the four 1992-vintage aircraft from Envoy Air in 2015, with court papers showing that the four Saab 340s were then stored at Kingman airport in Arizona for a monthly fee until they were removed. The court document adds that the parties have not attempted mediation, but Jet Midwest will be willing to participate in one. The allegation adds to the woes of embattled carrier Rex which is currently undergoing voluntary administration, with administrators looking for a buyer for the carrier.



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