ARC NEWS
Trade war makes talk of Air China-United joint venture academic
August 27, 2019
Air China would like to establish a joint venture with United Airlines, but current tense US-China trade tensions make such an arrangement all but impossible, according to an Air China executive. The carrier's vice-president and general manager of North America Zhihang Chi says trade frictions comes amid a broader slowdown in demand for air travel from China to many international destinations. "In the United States, we would like to have a joint venture relationship… with United Airlines," Chi says at the Boyd Group International Aviation Forecast Summit in Las Vegas on 26 August. "But given all that has been going on, this is virtually impossible." Air China and United already have a codeshare arrangement and are both members of Star Alliance. But in recent years Air China has sought to establish tighter relationships with partners by establishing joint ventures, which typically involve sharing revenue and joint marketing and sales activities. Air China has signed such deals with Air Canada and Lufthansa. But joint ventures require regulatory approvals, and the USA and China are currently battling in a tariff war. Just days ago, US President Donald Trump announced he would raise taxes on imported Chinese goods in response to new tariffs imposed by Beijing.

Source: FlightGlobal


British Airways pilots announce September strikes
August 26, 2019
BALPA's British Airways members are to strike on 9, 10 and 27 September. The UK pilot union says its attempts to resolve an industrial dispute with IAG-owned BA have been rebuffed. The airline's latest offer is unacceptable to BALPA members, it adds. "In these circumstances, with a 93% vote in favour of taking industrial action, and with no prospect of any further meaningful talks, we have no choice but to call this action," says the union. BA responds that it is "completely unacceptable" for BALPA to disrupt the travel plans of tens of thousands of passengers. "We are extremely sorry that after many months of negotiations, based on a very fair offer, BALPA has decided on this reckless course of action," says the airline. As a result of the strike, BA is looking to amend its schedules to maintain as many flights as possible, although it is "likely that many of our customers will not be able to travel". It is also examining the possibility of wet-leasing capacity and crew from other airlines, as well as scheduling larger aircraft from its partner airlines. Flights on BA CityFlyer, Sun-Air and Comair are not affected, BA stresses.

Source: FlightGlobal


Cathay warns against planned union protests at operations hub
August 26, 2019
Cathay Pacific has warned its employees against taking part in a planned protest at its main headquarters on 26 August. This was because an injunction order obtained by the Airport Authority Hong Kong to restrict protests at Hong Kong International Airport also covered the nearby Cathay City, which is the airlines main operations hub. The Airport Authority Hong Kong was on 23 August granted an extension of an interim injunction meant to restrict protests. The injunction restrains protesters from "unlawfully and wilfully obstructing or interfering with the proper use" of the airport. The operator states that blocking roads connecting to the airport might constitute as such an act. Stressing that Cathay City includes “facilities that are absolutely critical for our flight operations”, the Oneworld carrier adds in its latest statement: “Any activities that impact our ability to operate safely not only significantly disrupt the travelling public, but also jeopardise the safety of our customers and our employees, while also damaging Hong Kong’s economy and the reputation of Hong Kong International Airport.” Hong Kong’s Confederation of Trade Unions had organised the planned protest, which came after the airline sacked the head of one of its flight attendant unions. It was previously reported that Rebecca Sy was given the chop over her social media posts, including one which expressed outrage over the resignation of ex-Cathay chief Rupert Hogg and former customer and commercial chief Paul Lo. Cathay states in its latest statement that it was aware of the planned protest but adds that it took a “zero-tolerance approach to any support for or participation in illegal protests, violent activities or overly radical behaviour.”

Source: FlightGlobal




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