This week, Sabre stopping selling Finnair tickets as talks over a new contract broke down while European airlines will most likely have to pay a new EU tax on jet fuel. Meanwhile, India is so desperate to sell its national airline, it has agreed to take over $7 billion in debt to make Air India seem more attractive to a buyer.
Airline News Weekly Roundup
Throughout the week we post dozens of original stories, connecting the dots across the travel industry, and every weekend we sum it all up. This weekend roundup examines aviation.
For all of our weekend roundups, go here.
Sabre Stops Selling Most Finnair Tickets in Contract Spat: It’s rare for airline contract disputes with distribution companies to reach this outcome. Finnair will suffer financially until it cuts a deal. Sabre, for its part, risks embarrassment if it’s seen as bullying a midsize carrier. Nobody usually ends up winning in these classic games of chicken.
European Airlines Face Prospect of Finally Having to Pay Tax on Jet Fuel: Airlines obviously won’t like it, but the prospect of new or higher taxes now seems inevitable. The problem that the European Union will have is getting other countries across the world involved.
Embattled Hong Kong Airlines Delay Staff Salaries: Hong Kong Airlines has been struggling even before the pro-democracy protests. Now it’s clutching at the straws. Staff morale will plunge as salaries are delayed despite the airline saying otherwise.
Modi Mulls Absorbing $7 Billion of Air India Debt to Attract Buyers: Will this be enough to lure investors to consider buying Air India, which has been unprofitable for a decade?
Norwegian Air Scales Back Long-Haul Routes Citing Engine Problems: Norwegian Air still appears to be in scale-back mode. The idea remains that reining in ambitions will allow the carrier to find a sustainable future.
Berlin Airport Finally Schedules First Flight — After 8 Years of Delays: Well, you have to hand it to Berlin for persistence. The first flight at its new airport is scheduled — not until next October, but, hey, it’s progress.
Photo credit: Negotiations over a new contract between distributor Sabre and Finnair took a turn for the worse this week when Sabre dropped the airline tickets. tsuna72 / Flickr