Qatar Airways CEO Akbar Al Baker confirmed the carrier is still interested in acquiring Bombardier Cseries arcraft, and is looking at an order for 15-25 of the larger CS300 variant (The Canadian Press, 30-Jun-201). One to two aircraft may be used for the carrier’s business and luxury jet subsidary, Qatar Executive. Qatar Airways delayed an order announcement that was expected to be made at the Paris Air Show. The carrier has not revealed when it expects to announce an order. Qatar Airways also plans to order the A320neo from Airbus.
Qatar Airways still looking at CSeries order
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Garuda Indonesia Part 4: revised fleet plan leads to new narrowbody and widebody orders
Garuda Indonesia is close to completing a new 10-year fleet plan outlining narrowbody and widebody growth. An overdue order for new generation widebody aircraft, along with a top-up order for 737 MAX narrowbodies, is expected by the end of 2016, potentially at the upcoming Farnborough Airshow.
The new fleet plan supports an ambitious plan to expand Garuda’s international network – both regionally and in the long haul sector. Garuda is also striving to strengthen its domestic position further with narrowbody growth.
According to CEO Arif Wibowo, the group's new overall strategy is: “To dominate the domestic market, expand regional where the opportunities are and subsidise long haul growth.” This is the fourth and final part of a comprehensive series of analysis reports published by CAPA on the Garuda Indonesia Group.
The US Big 3 work to preserve their unit cost performance as labour talks heat up
The paradox of margin expansion and unit revenue contraction will continue for most US airlines into 2Q2016 as those companies work to alleviate investor concern and set a course for a positive unit revenue trajectory. But maintaining favourable unit costs is key for the continued margin expansion forecast by the three large US airlines – American, Delta and United.
Although fuel prices have been rising, energy costs remain below historical levels, which is helping American, Delta and United to keep their unit costs in check. Excluding fuel, each airline has varying forecasts for 2016 driven by different inputs, including rising labour costs and profit-sharing.
American’s unit costs during the past year have been affected by labour contracts it reached with pilots and flight attendants in 2015. Delta and United will also likely need to weather labour cost increases as both companies are in the process of negotiating contracts with different employee groups. Many US airlines face uncertainty in their cost performance in the future as they work towards favourable contract terms that preserve their efforts to contain costs. And so the wheel turns.