Air France-KLM is reportedly close to announced it long-haul aircraft order, which is expected to be divided between B787s and A350s (Reuters, 15-Sep-2011). The airline group will reportedly order 25 of each type. Air France-KLM currently operates a fragmented long-haul fleet, comprising A330-200/300, MD-11, A340-300, B777-200ER/-300ER, B747-400 and A380 equipment, according to Ascend.
Air France-KLM to split widebody order
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Airline strikes: 2016 a peak year for Europe's legacy airlines. Wakeup time, as LCCs pick them off
Pilot strikes at Lufthansa. Again. A strike ballot among British Airways cabin crew. A guilty verdict for Air France workers who assaulted an executive during a union protest. These were all headlines in late Nov-2016, following Air France pilot and cabin crew strikes in summer 2016. Labour relations at Europe's three biggest legacy airline groups are an ongoing challenge.
A CAPA report in Jun-2016 highlighted the growing number of articles on CAPA's website mentioning the word 'strike'. It raised the possibility that if the rate continued through the year, 2016 could be the biggest year for strike-related articles since before the global financial crisis. With a little under a month still to go, this year has already comfortably passed this milestone.
To a large extent labour unrest grows as airline industry profits increase. However, rather than hoping for an industry downturn to reverse the rise in the cycle of strikes, airline CEOs are talking tough – a line long taken by IAG's Willie Walsh. Lufthansa's Carsten Spohr has said that taking on the pilots is "about the future of Lufthansa", noting that it has “no chance of survival" if it gives in to pay demands (Bloomberg, 24-Nov-2016).
Project Hope: Malaysia Airlines outlook hinges on spinning off new high-density A380 charter airline
Malaysia Airlines is planning to set up a new airline to operate its A380 fleet on religious pilgrimage charters to Saudi Arabia. All six of the airline’s A380s will be reconfigured from 386 to up to 700 seats by the end of 2018, and transferred to a new operator's certificate.
Malaysia Airlines is hoping to attract a combination of foreign and local investors to take control of the planned new airline and all six A380s. The group is calling the plan “Project Hope” – an appropriate name given its current predicament with the A380 fleet.
The flag carrier’s A380 operation has been highly unprofitable and the aircraft is too big for operation to London – its only remaining long-haul route. Malaysia Airlines is now committed to acquiring six A350s, which will be used to replace the A380 on London. As selling or subleasing the A380s is not possible given the virtually non-existent demand for the type, establishing a new charter airline is the only sensible option – although still with some risk, given the need to find investors.