Airlines

American Airlines in talks with Airbus and Boeing for Major aircraft Order

In the midst of a travel boom, American Airlines revealed on Wednesday that it has begun talking to top aircraft manufacturers Airbus and Boeing about placing a fresh order for narrowbody aircraft. The timing of these discussions coincides with airlines’ urgent need to restock their fleets in order to keep up with the surge in demand for travel.

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In earlier reports, Bloomberg News cited sources familiar with the situation to say that the airline was in talks to place an order for at least 100 new jets with the manufacturers. Industry sources told Reuters that the conversations are still in the beginning stages and that no decisions are final.

American stated in a statement that “We are talking to Boeing and Airbus about our narrowbody aircraft needs for the latter half of this decade and beyond.”

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American Airlines hinted to its limited fleet replacement requirements during an investor call last month, despite the fact that their planning was still in the early stages. The airline said that “we expect aircraft capex to average about $3.5 billion per year for the next several years and likely through the end of the decade.” With agreements for further acquisitions, the deal size may exceed 200 jets.

The airline is reportedly considering the 737 Max from Boeing and the A321neo from Airbus to replace its 737-800, A319, and A320 single-aisle models later this decade. Negotiations have been ongoing for a while.

Airlines

Federal Court Imposes $100M Fine on Qantas for “Ghost Flights” Scandal

In a major ruling, the Federal Court has confirmed a hefty A$100 million penalty against Qantas for its involvement in the “ghost flights” scandal. As reported by FlightGlobal.

The court found that Qantas misled consumers by offering and selling tickets for flights that the airline had already decided to cancel. Adding to the controversy, Qantas failed to promptly notify ticket holders about these cancellations.

The penalty follows Qantas’ admission of violating the Australian Consumer Law (ACL). The airline agreed with the Australian Competition and Consumer Commission (ACCC) on the penalty amount, aiming to deter Qantas and other businesses from similar breaches in the future.

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The ACCC emphasized that this substantial fine sends a clear message: misleading customers will lead to serious consequences, regardless of a company’s size. In addition to the penalty, Qantas has committed to paying approximately A$20 million to affected passengers who unknowingly purchased tickets for canceled flights.

This compensation comes on top of any refunds or alternative flight arrangements already provided. ACCC Chair Gina Cass-Gottlieb praised the penalty, underscoring the importance of robust compliance programs red energy qantas in large corporations like Qantas.

She pointed out that Qantas has since made changes to its operating and scheduling procedures to prevent similar issues in the future.