This week's commercial aviation news includes the latest in the Boeing 737 MAX saga, Canadian consolidation and expansion of U.S. carriers.
Having trouble keeping up with the torrid pace at which news circles around the commercial aviation industry? Well, we have you covered. Every Friday, we'll give you a quick rundown of what you might have missed. And of course, remember to follow along on Kambr Curated throughout the week.
The Boeing 737 MAX Saga Continues
It of course wouldn't be a week of airlines news without hearing more about the Boeing 737 MAX. According to the FAA there is still no timetable for ungrounding the aircraft, although it does say it will return to flight.
Among the latest developments is that a bird strike may have caused the second 737 MAX crash. This comes after Boeing officials downplayed the possibility a bird strike could impair the plane’s sensor equipment, shortly after the first 737 MAX crash.
As the MAX remains flightless, the costs for airlines continue to pile up. In fact, China's big three airlines are seeking compensation from Boeing. Analysts are estimating Boeing could face $1.4B in MAX reimbursements.
All of this of course sets the perfect stage for aircraft-manufacturing rival Airbus. Airbus is set to deliver a strong counter punch to Boeing's mid-size offerings.
In spite of everything however, there is optimism surrounding the 737 MAX. Among those optimists are American Airlines CEO Doug Parker. And there may be good reason. Despite the 737 MAX controversy, U.S. summer air travel is expected to hit a new record.
More Acquisitions & Shakeups
In case you missed it from the previous week, there has been a lot of news specifically coming from the Canadian airspace. First, Onex Corp. agreed to acquire WestJet Airlines. Then later in the week, we learned Air Canada intends on acquiring Air Transat.
As you can imagine, such transactions have sparked quite the discussion. While some fear price hikes, others see an opportunity for Canadian aviation to compete with the best in the word.
The Canadian airspace is not alone in seeing possible shakeups. IATA has suspended Avianca Brasil. The end may be near for this airline.
While others struggle, this market is ripe with opportunities for opportunistic airlines. Ryanair has created a new group structure to position for taking on airlines, aircraft or airport slots that might come available because of the competitive market.
For example Thomas Cook is trying to stop the bleeding from $1.9B in losses.
While other airlines flounders, the stronger ones continue to expand. American Airlines plans to build a $3B passenger terminal in Dallas/Fort Worth. Curious as to whether that'll be a success? We took an in-depth look. Not to be outdone by its Texas counterpart, New Orleans plans on opening a new terminal later this year.
As expansion goes, Tokyo is a hot commodity for U.S. carriers. Delta and United are poised for the most new slots at Tokyo's Haneda airport. With the extra slots at Haneda, Delta can close its old Tokyo hub at Narita. This occurs while the US Department of Transportation has granted approval of 12 new flights between U.S. cities and Tokyo.
Meanwhile, Madrid-based Air Europa plans to launch a new airline to operate domestic flights in Brazil.