Airlines

US Airlines Cut One Million Seats for Thanksgiving

US Airlines Cut One Million Seats for Thanksgiving : OAG

"Flight Chaos Unleashed: Unprecedented Storms and Airline Disruptions Sweep Across the United States"

The summer’s dizzying heights, when the world could fill more than 100 million seats a week, are long gone. For the next seven days, capacity has decreased to 89.4 million seats, a somewhat lower level than last week. This week, we may “blame” the US aviation industry for that reduction, though it will rapidly recover.

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Major seasonal holidays, like Thanksgiving in this case, always have an impact on capacity, and we’ll see later that it’s not necessarily a good thing. Although 89.4 million seats may appear soft but they are up +17% from the previous year and down -15% from 2019 levels. It is anticipated (certainly at a worldwide level) that capacity will stay about 15% below 2019 levels through the first half of 2023.

What Does Capacity Look Like in 2023?

Looking ahead to the first few months of 2023, current capacity is about 6% below 2019levels. However, airlines have yet to really start thinking about the new year, and Chinese airlines continue to publish their full schedule despite the likelihood that they will have to make last-minute changes to their operations; what other option do they have? All of this means that January is expected to start with approximately 372 million, still 7% higher than in 2022, but an indication that the market recovery will begin to slow down in the first quarter of next year.

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Since there hasn’t been much change in capacity at the regional level over the past week, this week we have looked at ASKs (available seat kilometres) rather than capacity for all the key tables. The relative standings are somewhat impacted when the measuring parameters are altered at the regional level, but the amount of recovery still needed is more clearly highlighted. North East Asia is down -41% compared to the same week in November 2019 but would only be down -31% if we were calculating pure capacity, making the absence of those longer international sectors even more apparent.

Thanksgiving’s Impact on Capacity

United States for the past two weeks, as shown in the chart below, has had a substantial impact on this upcoming Thursday’s capacity, which is 34% below the level of the previous week. This suggests that if you haven’t travelled by Wednesday, getting a last-minute seat may be nearly difficult. The second notable aspect of the data is the degree of capacity restraint that airlines are displaying with little or no additional capacity added over the two-week period;

Although this week should be relatively quiet for airlines, work is still being done behind the scenes. With delegates returning to the IATA Slots Conference to finalize their summer 2023 itineraries, Qantas appears to be bringing back more of its A380 aircraft, London Heathrow has removed any concerns regarding to capacity restrictions for the upcoming Christmas travel season, and punctuality appears to be returning to normal. Good Times!

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Airlines

Air China Makes Landmark Deal: Orders 100 C919 Jets from COMAC

In a strategic move that could reshape China’s aviation industry, Air China has inked a monumental deal with Comac, signaling a significant shift in the nation’s commercial aircraft procurement landscape.

The agreement, valued at a staggering $10.8 billion based on list prices, entails the purchase of 100 Comac C919 jets, a resounding endorsement of the homegrown challenger to aerospace giants Airbus and Boeing.

The announcement, disclosed in a filing by Air China, underscores the airline’s commitment to bolstering its fleet with domestically manufactured aircraft. These C919 jets, slated for delivery between 2024 and 2031, are poised to amplify Air China’s operational capabilities and enhance its competitive stance in the global aviation arena.

The C919, a formidable competitor to Boeing’s 737 Max and Airbus’s A320neo, symbolizes China’s ambitious foray into the global aviation market. With Air China’s commitment to acquiring a substantial fleet of C919s, the aircraft is poised to carve out a formidable niche in the industry, challenging the dominance of established players.

Notably, Air China‘s existing fleet comprises an extensive array of Airbus and Boeing aircraft, showcasing its diverse operational portfolio.

With nearly 500 airplanes in service, including models from the A320 family and the 737 series, Air China’s decision to incorporate the C919 into its fleet underscores a strategic diversification strategy.

While Airbus has enjoyed notable success in China, buoyed by its local assembly line, Boeing has faced formidable challenges in recent years. However, Air China’s resolute investment in the C919 signals a paradigm shift, amplifying China’s quest for self-sufficiency in aviation.

Airlines

IndiGo, India’s Leading Airline, Orders 30 Airbus A350-900 Aircraft

Today, IndiGo, India’s leading low-cost carrier, made headlines by placing its largest-ever order for A350 aircraft. This substantial move follows Air India’s order last year, signaling IndiGo’s strategic expansion into the wide-body aircraft market.

The Airbus A350, renowned for its advanced technology and spacious design, has become a prime choice among airlines worldwide. IndiGo’s decision to invest in the A350 stems from its growing international route network, where larger capacity and extended range are essential.

Following the announcement, IndiGo’s stock prices surged, reflecting investor confidence in the airline’s ambitious growth plans. The initial order encompasses 30 jets, with options for an additional 70 aircraft in the future. While specific configurations are pending, IndiGo is inclined towards the A350-900 variant, favored by many airlines for its versatility.

.@IndiGo6E weren't kidding when they said they have big plans for big planes.
The @Airbus #A350-900 ordered today will sit on top of this table when delivered in 2027.
Can't wait to see the #A350 in 6E's iconic livery. Until then here is a render made by @aeroconcepts1 #AvGeek pic.twitter.com/D75a7Qs0jO— VT-VLO (@Vinamralongani) April 25, 2024

Indian aviation enthusiasts have eagerly welcomed IndiGo’s bold move, anticipating the arrival of the A350-900 aircraft starting in 2027. Furthermore, the airline retains purchase rights for an impressive 70 more A350 family aircraft, signaling its long-term commitment to enhancing its fleet and expanding its global footprint.

Airlines

US DOT says Airlines must now pay automatic refunds for cancelled flights

The U.S. Department of Transportation (DOT) has released a final regulation requiring airlines to quickly reimburse passengers with automatic cash refunds when owed, according to a statement made by the Biden-Harris Administration.

Under the new regulation, passengers will find it easier to get refunds when airlines dramatically alter or cancel flights, cause severe delays for checked baggage, or don’t supply the additional services they paid for.

According to a statement from the Biden-Harris Administration, the U.S. Department of Transportation (DOT) has published a final rule mandating airlines to promptly compensate customers with automatic cash refunds when they are eligible. The new rule would make it simpler for customers to receive refunds from airlines in cases when they drastically change or cancel flights, cause significant delays for checked luggage, or fail to provide the extra services they charged for.

Under the latest rule from the USDOT, passengers are guaranteed refunds in several scenarios:

Canceled or Significantly Changed Flights: Passengers are entitled to refunds if their flight is canceled or significantly altered, including changes in departure or arrival times exceeding 3 hours domestically or 6 hours internationally, departures or arrivals from different airports, increased connections, downgrades in service class, or changes less accommodating to passengers with disabilities.
Delayed Baggage Return: Passengers filing mishandled baggage reports can claim a refund for checked bag fees if their luggage is not returned within specific timeframes after flight arrival.
Unprovided Extra Services: If airlines fail to deliver paid extra services like Wi-Fi, seat selection, or inflight entertainment, passengers can request refunds for those fees.

The final rule streamlines the refund process, ensuring it is:

Automatic: Refunds are issued automatically without requiring passengers to request them.
Prompt: Airlines must refund credit card purchases within seven business days and other payment methods within 20 calendar days.
In Original Form of Payment: Refunds are provided in the original payment method used for purchase.
Full Amount: Passengers receive full refunds minus the value of any portion of transportation already used, including government and airline fees.

Suggest banning family seating junk fees and ensuring that parents can travel with their kids at no additional cost. No airline promised to ensure fee-free family seating prior to efforts from President Biden and Secretary Buttigieg last year. Family seating is now guaranteed free of charge on four airlines, and the Department is working on a plan to eliminate family seating junk fees.

Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.