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USA Aviation Industry Newsletter 2 October

USA Aviation Industry Newsletter 2 October

American Airlines adding free messaging, other in-flight perks

American Airlines passengers will find new perks and improved services as it switches its attention and money to wooing travelers after spending the past few years on the complex logistics of merging with US Airways. “The airline we’re going to fly in three years will be better than the airline we’re flying today because we’re going to invest,” CEO Doug Parker said at the airline’s first post-merger media and investor day near Dallas.

Aviation Capital Group Expands Growth Capital Through Partnership with Strategic Investor

Aviation Capital Group LLC announced that its parent company, Pacific Life Insurance Company, has entered into an agreement with Tokyo Century Corporation (TC), that results in an investment by TC for a 20 percent membership interest in ACG. In addition to this initial investment, TC has agreed to provide additional capital to ACG to help accelerate ACG’s business expansion and create incremental business opportunities. Pacific Life will retain a controlling interest in ACG. The transaction is expected to close in the fourth quarter of 2017.

Boeing Opens New Office for NMA Study

Boeing Commercial Airplanes has established a new office dedicated to the study and potential development of an airplane sized to fit between the 737 family and the Dreamliner known as the NMA (new midsize airplane). In a letter to employees dated September 25, Boeing Commercial Airplanes CEO Kevin McAllister stressed that the announcement does not amount to a program launch, but rather another step in the process toward deciding on whether or not to proceed. NMA studies have concentrated on a plan for a two-member family of airplanes to seat between 220 and 270 passengers and to fly to a range of between 4,000 and 5,000 nm.

Southwest Airlines Begins Boeing 737 MAX 8 Service

Southwest Airlines achieved an aviation milestone on 1st October by becoming the first airline in North America to offer scheduled service utilizing the Boeing 737 MAX 8 aircraft. In a nod to Southwest’s history, the inaugural MAX 8 flight departed Dallas’ Love Field and flew to Houston, one of the carrier’s original markets first flown in 1971. Southwest launched nine Boeing 737 MAX 8 into service and expects to end 2017 with 14 of the aircraft. Based upon the delivery schedule, as of July 25, 2017, the airline has 200 firm orders for a combination of MAX 7 and MAX 8.

United Airlines Submits Application to Increase to Daily Service Between Houston and Havana

United Airlines completed its application to the U.S. Department of Transportation (DOT) for authority to provide daily service from Houston to Havana’s José Martí International Airport. United’s proposal, subject to government approval, will expand its service from Saturday-only to daily service. Launched in December 2016, United’s successful Saturday-only service between Houston and Havana reflects the airline’s optimism about future growth potential and will provide customers with greater choice and convenience when planning travel to Havana.

U.S. Proposes Massive Import Duties on Bombardier C Series

The U.S. Department of Commerce on Tuesday proposed a 219.63 percent duty on the sale of 100- to 150-seat jets from Canada into the U.S., potentially striking a major blow to Bombardier’s C Series program. The ruling comes ahead of planned delivery next spring of the first of 75 Bombardier CS100s to Delta Air Lines, the U.S. launch customer for the program.

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