December 29, 2021

Operational Struggles Roll Into Thursday

More than 700 domestic flights were canceled today as the effects of last weekend’s operational failures were felt for a sixth consecutive day.

United led the way domestically with more than 150 cancellations today, abut 7% of its total operation for Wednesday. Alaska axed 11% of its schedule – 74 flights, with JetBlue’s 78 cancellations equaling about 7%. Spirit had a good day – for Spirit – cancelling just 56 flights, while Delta lost 88, which equaled 3% of its planned flying.

In addition to the Omicron variant of COVID-19 raging through airlines’ crew rosters, inclement weather was also factor – especially for Delta and Alaska which are still digging out from a major winter storm at their Seattle hub.

Chinese airlines canceled more than 700 flights today – led by China Eastern and Air China which combined for 650 cancellations, but we don’t put much stock in Chinese cancellation numbers anyway. On the bright side, every plane that took off from the United States en route to China made it without turning back halfway.

Kenya Airways to Remain Privatized

The Kenyan government dropped its plan to nationalize its flag carrier Kenya Airways, instead choosing to inject cash into the beleaguered carrier while keeping it a private entity. Despite the change-of-heart, the government will remain the carrier’s largest shareholder with a 48.7% stake in the airline.

KQ will receive more than $1 billion in restructuring money, led by an $827 million debt takeover by the government along with a $473 million cash injection. These are all contingent on the carrier meeting the government’s required conditions. Those include clear KPIs, timelines, reporting obligations, and a disbursement plan. No, really, that is a requirement. We just assume it will be irrelevant the second the money hits KQ’s bank account.

The government had already been on the hook for $750 million worth of the carrier’s debt, so increasing to $827 million is almost a nominal increase. The Kenyan national treasury intends to hire an airline consultant with “international experience and know-how to negotiate for concessions.” Luckily for Kenya, Doug Parker is about to gain a lot of free time and can be contacted at ex.ceo@aa.com.

Balearic Islands Propose Takeover of Air Europa

The ruling coalition in the Balearic Islands are pushing the Spanish federal government to purchase Air Europa and transfer control of the carrier to the Balearic government.

Més per Mallorca, the party that leads the ruling coalition in the islands – which include Mallorca, Menorca, Ibiza, and Formentera – believe the €475 million the Spanish government has proposed injecting into the embattled carrier should be used to save the airline and not as a business opportunity for Iberia.

Under the proposal, the new state-owned carrier would retain is current headquarters in Llucmajor, near Palma de Mallorca Airport (PMI), preserving local jobs. Becoming state-owned would also give Air Europa the opportunity to become the official airline of Ibiza and finally create the rave plane it’s had in development for decades.  Partygoers could get the party started upon departure from their home airport and arrive in Ibiza ready to go.

  • Air Congo‘s debut is being delayed until at least Q1 2022, which seems prudent considering Q4 2021 has two days left.
  • Air Serbia will resume service to Venice on April 10 and to Madrid on April 30.
  • Austrian made a second €30 million payment to the Austrian government as it repays the €300 million it was loaned to get through the pandemic. Ryanair is still waiting on its cut.
  • Delta offered 15,000 SkyMiles to customers affected by its operational shortcomings last week. Only six or seven more cancellation-filled weekends stand between those customers and a one-way domestic award in Main Cabin.
  • Etihad is working towards a new cargo hub in Zhengzhou, China (CGO).
  • Norse Atlantic, the startup being run by three guys named Bjørn, took delivery of its first B787-9 aircraft.
  • Pobeda plans to add 40 new B737-800 to its fleet by the end of 2023.
  • Samoa Airlines recently filed for bankruptcy and is trying to call “backsies” to get out of a B737 it recently leased.
  • Singapore will suspend its short-lived flight to Los Angeles from Taipei beginning February 16, having grown tired of spray tans and the sprawling traffic.

Dracula passed out at midnight on New Year’s Eve.
There was a count down