Ireland’s government announced it is examining proposals to sell the Dublin Airport Authority’s three airports, which are Ireland’s largest, as part of a debt reduction plan (Breaking News, 17-Apr-2011). The Review Group on State Assets will present a report this week proposing the sale of Dublin, Cork and Shannon airports. The new coalition government pledged to generate EUR2 billion through the sale of non-strategic state assets in the recently agreed Programme For Government.
Ireland to consider selling DAA airports
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jetBlue Airways, armed with its premium product Mint, is poised to disrupt the trans-Atlantic market
Periodically throughout the last few years jetBlue has hinted that long haul trans-Atlantic flights could be a possibility at some point in its evolution. But in mid-2016 the company took a more concrete step towards serving trans-Atlantic routes by altering its Airbus order book – potentially to support long haul expansion.
JetBlue’s decision to option the Airbus A321LR occurs at a time when airlines such as WestJet, Norwegian Air Shuttle and WOW Air are pushing the low cost model into the long haul international market. Perhaps the steps those airlines are taking to carve out the low cost niche in the long haul space has accelerated jetBlue’s evaluations of trans-Atlantic service. The company has declared that it would make a decision about its options for the long-range Airbus narrowbody in 2017 ahead of the narrowbody’s debut in 2019.
The biggest drivers for jetBlue’s decision to enter the long haul trans-Atlantic market are identifying routes where it can inject low fares to stimulate traffic and drive revenue. The company’s base in Boston is emerging as the epicentre for those potential opportunities.
WestJet forges crucial deal with pilots for long haul expansion, but unionisation threat looms large
Canada’s second largest airline WestJet has eliminated uncertainty over its widebody expansion as 2016 has come to a close, reaching a deal with its pilots that allows the company to move forward in adding Boeing 767 widebodies to its fleet. The latest agreement follows a rejection of an earlier agreement by Westjet's pilots in Nov-2016, which placed in doubt the company’s ability to fully execute its long haul ambitions.
At the same time as pilots rejected the previous offer the Air Line Pilots Association (ALPA) was amping up efforts to unionise WestJet’s pilots. Independent entities have attempted to unionise the airline’s pilots in the past, but ALPA’s scale and resources offer a different level of heft to a potentially unionised workforce at WestJet.
Although WestJet can now move forward in crystallising its long haul strategy, the threat of unionisation among the company’s pilots and flight attendants looms large, and the airline could be a prime target for larger, more powerful unions.