The UK government has reached an agreement to keep regional airline Flybe operating. “Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected,” said UK business secretary Andrea Leadsom on Twitter on the evening of 14 January. “This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.” Full details of the agreement were yet to emerge, but pilot union BALPA tweeted: “This is good news for 2,400 Flybe staff whose jobs are secured and regional communities who would have lost their air connectivity without Flybe. BALPA looks forward to discussing the airline’s future plans in detail with management.” Emergency talks between the government and Flybe’s owners – the Connect Airways consortium – were being held on 14 January amid indications the operator was seeking urgent funding.

Source: Cirium

Delta Air Lines posted strong full-year 2019 results, as passenger demand rose and the carrier benefitted from its rivals’ difficulties with the grounded aircraft. Delta’s full-year net income rose to $4.8 billion, up from $3.9 billion in 2018, while total revenue rose 7.5% to $47 billion from $44.4 billion a year earlier. In the fourth quarter, net income was up 9% to $1.1 billion. The company said it will be sharing its profits with its 90,000 employees, to the tune of a record $1.6 billion, up 23% from 2018. “As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results,” says chief executive Ed Bastian on 14 January. The company says first-quarter 2020 revenue is expected to rise another 5% to 7%. The Atlanta-based airline reported a 6% increase in passengers transported during the year, to 204 million, an all-time record and translating to a load factor of 86.3%. Delta is the only major US airline that does not have the Boeing 737 Max aircraft in its fleet, and thus, unlike its rivals, is not negatively affected by the aircraft’s grounding, now in its 11th month. The FAA has remained silent on when it will re-certificate the aircraft, and when it could return to regular passenger service. Several airlines have taken it out of their schedules into the second quarter. The Atlanta-based carrier has 217 737NG aircraft. “We have been watching the Max story for the last year,” Bastian says. “But we are not deviating on our plan based on news flow. We have a strong plan and to the extent that we pick up some marginal revenue – which we have – that’s great. We have clearly been a beneficiary as long as the Max stays out of the sky we will continue to be one.”

Source: Cirium

Longtime Boeing board member David Calhoun became chief executive of the Chicago-based company on 13 January, stepping into the spotlight amid a seething controversy while pledging to improve Boeing’s transparency and commitment to safety. But not even one day into the job, Calhoun faced a new controversy, with lawmakers pressuring Boeing to cancel a $7 million bonus payment that Calhoun is eligible to receive. Boeing says Calhoun is the right person to lead the company through the 737 Max disaster. “With deep industry experience and a proven track record of performance, Dave is the right leader to navigate Boeing through this challenging time in our 104-year legacy,” Boeing board chair Lawrence Kellner says in a media release. “We’re confident Dave will take Boeing forward with intense focus on our values, including safety, quality and integrity.” Calhoun, a 62-year-old former General Electric executive, succeeds interim CEO and chief financial officer Greg Smith. Smith took the company’s reins in December following the departure of former CEO Dennis Muilenburg. “Working together, we will strengthen our safety culture, improve transparency and rebuild trust with our customers, regulators, suppliers and the flying public,” Calhoun says in the release. “With the strength of our team, I’m confident in the future of Boeing, including the 737 Max.” But also on 13 January, several top senators urged Boeing’s board to cancel a $7 million incentive award payable to Calhoun assuming he meets goals that include the 737 Max’s return to service. “This reward represents an inappropriate incentive for Mr Calhoun to pressure regulators and attempt to rush the 737 Max back into the sky,” says the letter from senators Tammy Baldwin, Richard Blumenthal and Edward Markey. “We therefore urge you to cancel this incentive payment immediately and cease all efforts to rush the 737 Max.” In response, Boeing notes the incentive payment is based on the Max’s “safe” return to service, stressing it will follow regulators’ lead. “The incentive award for Boeing’s new CEO, David Calhoun, will vest only after he has served in his role for multiple years and if he achieves a series of challenging strategic objectives across all three principal business units, including the full, safe return to service of the 737 Max,” Boeing says. Calhoun kicked off his new job with a 13 January letter to all Boeing staff in which he lays out priorities and promises to improve the company’s transparency and commitment to safety. “We have work to do to uphold our values and to build on our strengths. I see greatness in this company, but I also see opportunities to be better,” Calhoun’s letter says. “That includes engaging one another and our stakeholders with greater transparency, holding ourselves accountable to the highest standards of safety and quality and incorporating outside-in perspective on what we do and how we do it.” Top on Calhoun’s 2020 priorities is returning the 737 Max to service, which he says Boeing will accomplish by “following the lead of regulators and working with them to ensure they’re satisfied completely”.

Source: Cirium