A surprise twist in the Hong Kong protests as Cathay CEO Rupert Hogg resigns. Plus RFID for bags, VR for passengers and new aircraft types launching service soon. A busy week with plenty to uncover in this edition of PaxEx Update!
737 MAX
Southwest announces expanded Hawaii service
Southwest is resuming its Hawaii expansion. The carrier will add three more Pacific crossings daily and more than double its inter-island flights beginning in mid-January 2020.
United Airlines to update MAX order
United Airlines appears poised to adjust its 737 MAX order book, as well as change the way the aircraft interiors are fitted. Multiple internal documents reveal an updated plan that should have passengers happy on board.
737 MAX grounding kills off Norwegian’s smaller TATL operations
Norwegian’s experiment flying single-aisle aircraft across the Atlantic is coming to an end. The carrier will shutter its six remaining routes connecting Ireland with North America effective 15 September 2019.
Hints of (maybe, eventually) a new fleet type at Southwest
Southwest Airlines is very happy with the current fleet make-up. The carrier does not want a new type added into the operation. Still, as the company continues contract negotiations with its cabin crew there’s a hint that someone, somewhere is thinking about how to make that change.
Tariffs, 737 MAX, satellite crash hit Astronics earnings
How many different ways can one company get beat up in the inflight entertainment and connectivity market? Astronics faces headwinds in its Aerospace market on three fronts. The 737 MAX grounding has costs on both new production and retrofit efforts, while the loss of Intelsat 29E grounded a connectivity program indefinitely. Add in tariffs related to China suppliers that the company is paying and the numbers are going to be rough in that segment for the foreseeable future.
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China Southern reportedly cancels 737 MAX order (But not really)
A comment attributed to a UK-focused manager for China Southern touched off a flurry of potential outcomes regarding the future of the 737 MAX. Did the carrier decide to wipe its order book clean of the type?
Hawaii, Cozumel get the LUV; Newark doesn’t
The 737 MAX grounding will push Southwest Airlines out of Newark. The carrier needs its aircraft in more profitable markets as it shrinks its operations this year.
PaxEx Update: 19 July 2019
United Airlines has new seating plans for its 787s, EgyptAir has a sleek looking new A220 and OneWeb has connectivity in space. Plus a big financial hit for Boeing and a soft-launch for IAG.
MAX, XLR and NMA: United addresses future fleet flexibility fundamentals
On the heels of its strongest second quarter results since the 2010 merger United Airlines found itself facing tough questions from investors about future fleet plans. There’s a decent chance neither the NMA nor XLR figure into the company’s needs for the next decade, given other options available.