Airlines

American Airlines CEO defends JetBlue alliance in antitrust trial

American Airlines CEO defends JetBlue alliance in the antitrust trial

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The CEO of American Airlines Group refuted claims that the agreement between his firm and JetBlue Airways Corp. resulted in a de facto merger of the two airlines in the northeastern United States.

In evidence at a Boston antitrust trial, Chief Executive Robert Isom disputed claims that, after the establishment of their Northeast Alliance in 2020, the companies operated as a single airline in the Boston and New York region. A judge has being urged to order it undone by the Justice Department. Customers would view JetBlue and American as one entity in the four airports covered by the alliance, according to Justice Department attorney Bill Jones.

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According to Isom, both airlines “are going to go after all premium consumers,” in contrast to Jones of the Justice Department’s assertion that American need not be concerned about JetBlue pursuing premium customers in Boston.

The alliance between the companies’ Boston and New York operations, in which they coordinate flights and pool revenue to the detriment of passengers, who it claims face $700 million in additional annual costs, has been dubbed a “de facto merger” by the U.S. Justice Department, six states, and the District of Columbia.

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The industry will have to eliminate a large amount of capacity turning the dial back 5 years as a guide to what 2021 looks like.” Congress provided $54 billion in payroll support to American airlines until September 2021, preventing many significant cuts that the sector had forecast.

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Related Topics:American Airlines JetBlue

Airlines

S7 Group Begins Fan Blade Production for Western Engine Models

The privately-owned Russian aerospace giant S7 Group has reportedly commenced production of blades for Western-built aero engines at its subsidiary, the Berdsk Electromechanical Plant (BEMZ), located in Novosibirsk.

This development, reported by the Russian aviation publication ATO.ru, marks a significant step for the company amid ongoing geopolitical tensions.BEMZ has started manufacturing composite fan blades compatible with jet turbine engines, including the CFM International CFM56, which powers popular aircraft like the Boeing 737 and Airbus A320 family.

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The technology for restoring blades of gas turbine engines used in Airbus and Boeing aircraft was previously developed by the Institute of Theoretical and Applied Mechanics and is now being implemented in the production of new aircraft parts at BEMZ.

Currently, BEMZ focuses on producing parts essential for maintaining the airworthiness of civil aircraft. Over the past year and a half, the plant has manufactured approximately 3,500 structural elements and components for replacement on foreign aircraft, which are utilized by airlines such as S7 Airlines, Pobeda, Aurora, and Aeroflot.

The facility is undergoing expansion, with two stages of an investment program totaling 2 billion roubles already completed. These developments are likely geared toward producing blades for the CFM56 engines, which equip more than half of S7’s operational fleet, including 28 Airbus A320-family aircraft and 19 Boeing 737-800s.

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Vasily Yurchenko, CEO of Berdsk Electromechanical Plant, emphasized the shift in focus towards maintaining the airworthiness of the Western-made fleet. The plant has delivered thousands of components to S7 and other Russian carriers since 2022. Notably, according to Russia’s Air Operators Association, 89% of the country’s passengers in 2023 traveled aboard foreign-made aircraft.

Future plans include serious investments to transform the plant into a modern, high-tech aircraft manufacturing facility. In addition to engine blades, BEMZ is also known for producing various spare parts for aircraft, reinforcing its role in the Russian aviation industry as it adapts to new manufacturing needs.