Corporate Travel News For Europe/MEA

Saudi Arabian Airlines (Saudia) director-general Saleh Bin Nasser Al Jasser said the carrier will enter discussions with Boeing and Airbus for around 30 narrowbody aircraft for its new LCC subsidary flyadeal before the end of 2017 (Reuters, 05-Oct-2017). Flyadeal commenced operations on 23-Dec-2017. The carrier is leasing eight A320s from DAE Capital in the interim.

CAPA - Centre for Aviation stated (05-Oct-2017) Monarch Airlines has proceeded to return aircraft to lessors. The carrier, upon ceasing operations on 02-Oct-2017, has returned a total of nine A320/A321s to their respective lessors as of 04-Oct-2017.

SAS announced (05-Oct-2017) five new routes and increased capacity on existing routes from Aarhus Airport in summer 2018 as part of a cooperation agreement with the airport to boost connectivity. New routes include Stockholm, Oslo, Munich, Mallorca and Split, with the later two operating as seasonal routes during summer 2018. The carrier will also extend Malaga route to year round and increase Copenhagen frequency. EVP & COO Lars Sandahl Sørensen stated there is "significant potential in the area" and the services will fill a gap in the market (Check-in.dk/The Local.dk, 05-Oct-2017). The capacity expansion is estimated to add more than 300,000 seats p/a to the airport which will result in 200,000 additional passengers p/a. [more - original PR - Danish]

Jet2.com announced (05-Oct-2017) plans to increase capacity over winter 2017/2018 from London Stansted, Manchester Airport and Leeds Bradford in response to increased demand. Jet2.com CEO Steve Heapy commented: "A number of factors have resulted in increased demand for our award-winning flights and ATOL protected package holidays... We won't be stopping at these winter flights, so keep an eye out for further announcements about additional Summer 18 capacity very soon". [more - original PR] [more - original PR - II] [more - original PR - III]

CAPA - Centre for Aviation, in a report entitled: 'Virgin Atlantic: Air France-KLM relationship may help in improving network coverage', stated (05-Oct-2017) Virgin Atlantic's anticipated entry into the North Atlantic JV based around SkyTeam members Delta Air Lines and Air France-KLM will probably not immediately change the shape of its network in a significant way. It will certainly not directly alter its competitive position on its routes from the UK. Virgin Atlantic's new relationship with Air France-KLM should improve Virgin's access to wider markets in the future. Air France-KLM has a much more geographically balanced network and, over time, this should help to widen Virgin's global commercial footprint, particularly if the new Air France-KLM shareholder China Eastern is also brought into its sphere of influence. [more - CAPA Analysis]

IATA regional VP for the Middle East & Africa Muhammad Ali Albakri stated (05-Oct-2017) the practice of blocking airlines funds in Africa is not the answer to addressing significant economic challenges. He said: "Airlines are powerful economic enablers and if they cannot recover revenues which are essential to covering their costs they will be unable to provide the connectivity that is vital for countries' economic growth". Mr Albakri noted IATA had success in Egypt where the Government has completely cleared the backlog of funds. Mr Al Bakri urged other Governments, specifically Angola and Sudan, "to follow suit". [more - original PR]

Boeing VP Sales for Middle East, Turkey, Russia and Central Asia Marty Bentrott confirmed Emirates will be the launch customer for the 777X (Gulf News/The Seattle Times, 04-OCt-2017). Mr Bentrott said Emirates is "actually ahead of its original mid-2020 schedule to receive its first 777X aircraft". Emirates displaces Lufthansa as launch customer for the aircraft. Emirates ordered 150 777X aircraft in 2013, comprising 35 777-8Xs and 115 777-9Xs.

Iran Air appointed Farzaneh Sharafbafi as CEO, following approval from the Iranian Cabinet (Financial Tribune, 05-Oct-2017). Ms Sharafbafi is Iran Air's first female CEO. She previously served as chairwoman of Iran Air and also as director of human resources development and training.

CAPA - Centre for Aviation, in a report entitled: 'Malaysia Airlines' fleet strategy: still a work in progress following A330-200 and 787-9 deals', stated (04-Oct-2017) Malaysia Airlines is in final negotiations with a European airport and intends to announce a new long haul route within the next few weeks. As CAPA has previously reported, the airline has been considering several potential destinations in Europe for the last two of its six A350s. Malaysia Airlines has six A350s on order and decided two years ago to use four A350s to replace A380s on its twice daily Kuala Lumpur-London route. Malaysia Airlines initially looked at using the fifth and sixth aircraft for Auckland and other potential routes within Asia Pacific before deciding earlier this year to pursue a new long haul route. Malaysia Airlines previously served four destinations in Europe in addition to London. Amsterdam and Paris were suspended in early 2016 while Frankfurt and Istanbul were suspended in 2015. CAPA stated that "Malaysia Airlines would prefer to wait for its new fleet of 787-9s, which are being delivered from 2H2019, to resume expansion in Europe. However, the airline has determined that it has no other viable option for its last two A350s and needs to somehow utilise the last two aircraft. Essentially Malaysia Airlines has to find a route where it can cover as much of the lease costs on the last two A350s as possible. Once the first batch of 787-9s are delivered in late 2019, this route can potentially be transferred from the A350". [more - CAPA Analysis]

Airbus, via its Oct-2017 State Shareholders Presentation, provided (04-Oct-2017) the following update for the A320 family:

• Narrowbody market remains healthy, with the A320 family "essentially sold out until 2022", protecting production our ramp-up plans;
• 310 A320 family aircraft deliveries for the year to the end of Aug-2017, including 76 A320neo/A321neo;
• Ramp up of A320neo output "remains challenging";
• Customers are still experiencing a number of in-service engine issues;
• Airbus still targets total A320neo deliveries to be around 200 aircraft, but in view of these engine issues, this target becomes "more challenging". [more - original PR]