Japan Airlines Corp pilots who have received dismissal notices are reportedly preparing to sue the company, claiming it is unlawful to forcibly terminate employment contracts (Nikkei, 23-Dec-2010). The carrier is eliminating around 90 pilot positions after its voluntary retirement programme failed to achieve the targetted reductions. The pilots are expected to file a lawsuit with the Tokyo District Court early next year. Meanwhile, JAL's flight attendant union is preparing to go on strike and may file a separate suit.
Pilots facing dismissal to sue JAL: reports
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Europe's aviation strike spike could signal a cyclical peak - with downturn to follow
One swallow does not make a spring and nor does a rash of aviation strike news guarantee a turning point for the aviation industry. But the signs are ominous. In the month of Jun-2016 (to 20-Jun-2016), there have been 136 articles on CAPA's website mentioning the word 'strike'. This compares with 81 for the first 20 days of Jun-2015. For 2016 so far (1-Jan-2016 to 20-Jun-2016), the 's' word has occurred in 594 articles – about 20% more than in the same period in each of the past two years. If this rate continues, 2016 could be the biggest year for strike-related articles since before the global financial crisis.
The vast majority of the Jun-2016 articles – 80% – relate to Europe. A significant source is air traffic control disputes, particularly French ATC. There have also been strikes and/or strike threats involving airport workers and ground handlers. Among European airlines, Air France has generated the most coverage for its ongoing dispute with its pilots, and it may also face a cabin crew strike. Lufthansa has not yet faced a strike by its employees this year, but has not yet reached new agreements with pilots or cabin crew after industrial action last year.
History tells us that labour's demands grow as profits rise. The apparent increase in industrial action this year could be a signal of an approaching peak in the airline profit cycle. There are other causes of unrest, such as impending French labour legislation, but the correlation reflects some history.
HK Express receives first A321 and awaits A320neo as Hong Kong's LCC rate grows to 10 percent
HK Express continues to work towards its goal of ending 2018 with 50 aircraft. HK Express will end 2016 with 18 aircraft, including its first A321s and A320neo. The A321s provide additional capacity per movement – important to bring costs down, but also to grow where traffic and slots (at Hong Kong and abroad) do not permit.
Asian LCCs are increasingly gravitating to larger aircraft to try to overcome insufficient infrastructure. Larger narrowbodies at LCCs gained wide awareness with AirAsia's A321 order, although many other LCCs will operate larger types before AirAsia receives its first A321. The A320neo brings additional range, besides the usual efficiency improvements.
HK Express plans to end 2017 with 32 aircraft. Even if sustainable markets can be found, this is rapid growth for an opaque slot system at Hong Kong International Airport. HK Express' continued growth will further boost the share of seats that LCCs operate at Hong Kong. LCCs account for 10% of capacity at Hong Kong in 2016 – up from 5% in 2012. The gains have mostly been earned due to HK Express. With as much success as HK Express claims, it might now be time for the LCC to open its books and present transparent financial reports.