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Japan Airlines (JAL) and Garuda Indonesia signed (03-Oct-2024) a joint business agreement, after Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLITT) approved JAL's antitrust immunity application. JAL president and group CEO Mitsuko Tottori stated: "We expect to launch this joint business relationship in the second quarter of 2025 to provide additional travel benefits for our mutual customers". As previously reported by CAPA, the two airlines commenced codeshare services in Oct-2018. [more - original PR]

IATA director general Willie Walsh reported (03-Oct-2024) "good news" in air cargo markets for Aug-2024, with the sector recording a second consecutive month of record high demand for the year to date. Mr Walsh noted yields are up 11.7% compared to 2023, 2% compared to Jul-2024 and 46% compared to pre-pandemic levels. Mr Walsh added: "This strong performance is underpinned by slow but steady growth in global trade, booming e-commerce, and continuing capacity constraints on maritime shipping". [more - original PR]

KLM announced (03-Oct-2024) a set of measures aimed at improving the company's operational and financial performance. These include increasing productivity, simplifying the organisation, cutting costs and deferring or postponing investments. KLM stated that despite revenue growth, these interventions are necessary due to the rising cost of equipment, staff and airport fees, as well as its ongoing fleet renewal. KLM aims to improve its operating result by EUR450 million in the short term, targeting structural profit margin above 8% by 2026 to 2028, in line with Air France-KLM's group ambition. Key actions include:

• Increase labour productivity by 5% by 2025, including through automation, mechanisation and reducing absenteeism;
• Address pilot shortages to ensure "we can operate all flights with our pilots", with a better balance between inter continental and European flights;
• Address technician shortages and supply issues to reduce cancellations, with possible partial outsourcing of maintenance if needed;
• Reconsider and defer non-essential investments, such as new headquarters and engineering and maintenance buildings, while aiming to maintain fleet investments;
• Enhance onboard services, trialling an expanded catering offer and optimised aircraft layouts to boost revenue by EUR100 million p/a;
• Simplify the organisation, increase synergy, eliminate overlap and overhead, including through the planned reorganisation of flight services and training organisations;
• Explore options for outsourcing, divesting or discontinuing activities that do not directly contribute to flight operations.

The Works Council and trade unions have been informed of the proposed measures and objectives and will be consulted through the standard consultation process. President and CEO Marjan Rintel stated: "KLM is suffering from high costs and shortages of staff and equipment", noting that "our aircraft are full, but our capacity is still not back to pre-corona levels". Mr Rintel added that in order to effectively "remain at the forefront of customer and employee satisfaction as well as sustainability", the carrier "must make clear and decisive choices now". [more - original PR]

Argentina's Government passed (02-Oct-2024) a decree officially declaring Aerolineas Argentinas as an organisation subject to privatisation. The decree states privatisation of the carrier is necessary to reduce Argentina's public spending, citing the airline's poor financial performance and "inefficient" cost structure. The privatisation process will encompass methods including the sale of assets and share placement. [more - original PR - Spanish]

Rossiya - Russian Airlines, via its official Telegram account, stated (01-Oct-2024) it rerouted Sochi-Dubai World Central service on 02-Oct-2024 to operate via the airspace of Türkiye, Egypt and Saudi Arabia, with a technical stop in Hurghada. Saint Petersburg-Dubai World Central service was rerouted to operate via the airspace of Turkmenistan, Afghanistan and Pakistan, with a technical stop in Samara. As previously reported by CAPA, Russia's Federal Air Transport Agency advised carriers to avoid the airspace of Israel, Iran and Iran.

Sydney Kingsford Smith Airport announced (02-Oct-2024) China Southern Airlines plans to commence four times weekly Beijing Daxing-Sydney service with A330-300 equipment on 13-Dec-2024. Sydney Kingsford Smith Airport group executive for aviation growth & group strategy Greg Botham stated: "We are proud to be the first airport in Australia offering flights to Beijing Daxing". The airline will be the sole scheduled operator on the route, according to OAG. [more - original PR]