Dominating this week’s top air transport stories include a landmark firm deal from Lufthansa Group for 40 Boeing 737 MAXs and a firm order from UK LCC easyJet for 56 Airbus A320neos and 101 A321neos, plus 100 purchase rights.

Lufthansa Group firmed an order for 40 Boeing 737 MAXs that can grow to 100 aircraft, including options. While Lufthansa has flexibility to change to other versions closer to their delivery dates, the group’s priority is the 737 MAX 8. Lufthansa also ordered 40 Airbus A220-300s, plus 20 options and secured 40 options for more A320neos.

UK LCC easyJet firmed an order for 56 Airbus A320neos and 101 A321neos, plus 100 purchase rights. EasyJet is also converting existing orders for 35 A320neos to the larger A321neo, supporting growth at slot-constrained airports.

Santiago, Chile-based LATAM Groupordered five more Boeing 787s to continue advancing its commitment to be more efficient and sustainable. With this order, together with the already scheduled deliveries of this model in the upcoming years, LATAM group will reach a total of 46 Boeing 787s. LATAM selected GEnx-1B engines to power the aircraft.

In more aircraft news, South African Airways (SAA) plans to grow its fleet to around 40 aircraft in the coming years as part of its efforts to become re-established as the country’s primary international airline. The flag carrier is trying to secure more short- and long-haul aircraft in the short term to be able to grow in both African regional and long-haul markets, but CEO John Lamola said the acute shortage of aircraft globally is affecting SAA in its growth plans.

Turkish Airlines finalized an order for 220 Airbus aircraft, following an “agreement in principle” disclosed in November. The commitment is for 150 A321neos and 70 A350s, representing one of the largest widebody deals Airbus has secured.

Japan Airlines took delivery of its first Airbus A350-1000, which will allow the Japanese flag carrier to start scheduled service with the aircraft in January.

Qantas Group took delivery of the first of its Airbus A220s, triggering the start of the replacement of the Boeing 717s it uses on domestic regional routes. A second A220 is scheduled to be delivered in January 2024, and five more by mid-2025. Qantas subsidiary QantasLink will operate the A220s on thinner domestic routes between smaller cities including Canberra and Hobart and larger hubs such as Brisbane, Melbourne and Sydney.

In airline news, the settlement agreement for Southwest Airlines’ December 2022 operational disruption divides a record $140 million fine levied by the US Department of Transportation into three parts, allocating more than half of the total toward future passenger compensation.

Lufthansa confirmed plans to resume flights to Tel Aviv on Jan. 8, 2024, initially offering four flights per week from Frankfurt and three per week from Munich. Additionally, Lufthansa Group subsidiaries Austrian Airlines and Swiss are planning to provide 8X-weekly and 5X-weekly connections, respectively. This will see the group provide a total of 20 services per week to Tel Aviv, representing about 30% of its regular schedule.

Gurugram, India-based LCC SpiceJet is proposing a plan to bring grounded Mumbai-based LCC Go First out of bankruptcy and combine the two airlines. SpiceJet said its “proposed combination [between] the company and Go First will provide synergy and [a] sustainable business model for revival of Go First in the present competitive environment.”

Southwest Airlines pilots have an agreement-in-principle (AIP) on a new contract, valued at roughly $12 billion over its five-year term.

In government/regulatory news, the US Senate passed a short-term bill on Dec. 19, extending authorization of FAA operations until March 8, 2024, under the terms of the five-year FAA reauthorization bill passed by Congress in 2018.

the German federal government has given up on plans to raise a domestic fuel tax only days after it first announced the proposal, and instead will raise the existing aviation tax (Luftverkehrsabgabe).

Iceland’s government said a new volcanic eruption in Iceland so far poses no threat to aviation services, either in the country or further afield. The eruption, in the southwest part of the North Atlantic island nation, began around 10 p.m. local time Dec. 18 on the Reykjanes peninsula, southwest of the capital Reykjavik.

In sustainability news, Airbus’ plan for an ultra-efficient aircraft that would supersede the current A320 around 2035 has received a funding commitment from the French government for €300 million ($330 million) per year, from 2024-27. The short- to medium-haul aircraft would use conventional or sustainable aviation fuel (SAF), as opposed to hydrogen.

All 13 oneworld member airlines have agreed to contribute their operational data to IATA’s CO₂ Connect emissions calculator, marking a big win for IATA’s model. Oneworld’s members comprise Alaska Airlines, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Malaysia Airlines, Qatar Airways, Qantas, Royal Air Maroc, Royal Jordanian, and SriLankan Airlines.

Many of the world’s largest companies have cut back business-related flying and levels of emissions from business flights halved from 2019 levels to the end of 2022, according to European environmental lobby group Transport & Environment (T&E). The Brussels-headquartered group surveyed 217 companies and found that 104 had kept their air travel emissions to less than 50% of pre-pandemic levels by the end of 2022.

Rolls-Roycebegan tests of aerospace-rated pumps able to handle hydrogen in its cryogenic liquid state. The effort is part of the engine-maker's growing research into the potential use of hydrogen for future zero-emissions flight.