Commercial Aviation
KLM Retires First Boeing 737-800 in Fleet Renewal Program
KLM begins retiring Boeing 737-800 fleet, transitioning to Airbus A320neo with sustainability-focused recycling and enhanced fuel efficiency.
This article is based on an official press release from KLM Royal Dutch Airlines.
KLM Royal Dutch Airlines has officially commenced the phase-out of its Boeing 737-800 fleet, a significant milestone in the carrier’s extensive €7 billion fleet renewal program. On December 5, 2025, the first aircraft scheduled for retirement, registration PH-BXK, named “Gierzwaluw” (Swift), departed Amsterdam Schiphol Airport (AMS) for the final time.
According to the airline’s official announcement, the aircraft was flown to Twente Airport (ENS) in the Netherlands. There, it was handed over to Aircraft End-of-Life Solutions (AELS) for dismantling and recycling. This event signals the beginning of a strategic transition for KLM as it moves from the Boeing 737 Next Generation (NG) series to the Airbus A320neo and A321neo family.
Delivered to KLM on September 12, 2000, the Boeing 737-800 registered as PH-BXK served the airline for approximately 25 years. While KLM received its first 737-800 in 1999, PH-BXK is the first of this specific variant to be permanently retired under the current modernization strategy.
Following its final commercial service, the aircraft performed a short ferry flight to Twente. KLM confirmed that the retirement process involves a focus on sustainability and circular economy principles. Before the airframe is scrapped, KLM Engineering & Maintenance removed high-value components, including the engines and the Auxiliary Power Unit (APU). These parts will be retained to maintain the remaining active Boeing 737 fleet.
KLM has partnered with AELS to ensure the airframe is processed responsibly. AELS will strip the remaining useful parts for resale to other operators or for recycling. In a statement regarding the process, KLM emphasized the environmental importance of this approach:
“We are not just scrapping planes; we are harvesting them to keep our remaining fleet flying safely and sustainably.”
The retirement of the 737-800 is part of a broader €7 billion investment by KLM to modernize its fleet. The airline is currently shifting its European narrow-body operations from an all-Boeing lineup to Airbus aircraft. The Boeing 737-700, -800, and -900 models are being progressively replaced by the Airbus A320neo and A321neo.
According to data provided by KLM, the new Airbus aircraft offer significant environmental benefits compared to the outgoing Boeing 737 NG fleet: The airline also noted that the new fleet features passenger experience upgrades, including wider seats and larger overhead bins.
The retirement of PH-BXK represents a pivotal moment in European aviation logistics. By transitioning from Boeing to Airbus for short-haul operations, KLM is diversifying its manufacturer reliance, a strategy increasingly adopted by airline groups to mitigate supply chain risks. This move mirrors the broader strategy of the Air France-KLM Group, which has historically operated mixed fleets to optimize maintenance costs and operational flexibility.
Furthermore, the decision to recycle the aircraft domestically at Twente Airport rather than flying it to remote storage facilities (often in the United States) underscores the increasing pressure on European carriers to adhere to strict regional sustainability mandates, even at the end of an aircraft’s life cycle.
KLM has outlined the immediate next steps for its renewal program. The second Boeing 737-800 is scheduled to retire and fly to Twente in January 2026. The phase-out will continue progressively as new Airbus deliveries arrive.
Beyond the narrow-body fleet, KLM is also updating its regional and long-haul operations. KLM Cityhopper is replacing older Embraer 190s with the Embraer E195-E2. Meanwhile, the intercontinental fleet is seeing the introduction of Boeing 787-10 Dreamliners and Airbus A350s to replace older Boeing 777s and Airbus A330s. Additionally, aging Boeing 747 freighters are set to be replaced by Airbus A350F cargo aircraft.
KLM Retires First Boeing 737-800, Marking Major Step in Fleet Renewal
The Final Journey of PH-BXK
Partnership with AELS
A €7 Billion Investment in Efficiency
AirPro News Analysis
Future Fleet Outlook
Sources
Photo Credit: KLM
Route Development
AnguillAir Starts Direct Seasonal Flights from U.S. Northeast to Anguilla
AnguillAir, a BermudAir brand, begins nonstop flights from Boston, Newark, and Baltimore to Anguilla’s upgraded airport through April 2026.
For the first time in history, travelers from the U.S. Northeast can fly nonstop to the Caribbean island of Anguilla, bypassing the traditional and often cumbersome connections through St. Maarten or Puerto Rico. AnguillAir, a new sub-brand operated by the boutique carrier BermudAir, officially launched its inaugural services this week.
According to reporting by Travel Weekly, the new carrier began operations on Wednesday, December 17, 2025, with a flight from Boston (BOS). This was followed by a Newark (EWR) launch on Thursday and a Baltimore/Washington (BWI) service commencing today, December 19. The flights are timed to coincide with the opening of the newly upgraded passenger terminal at Anguilla’s Clayton J. Lloyd International Airports (AXA).
The introduction of these routes represents a significant shift in regional Caribbean aviation, offering a “tarmac-to-tarmac” solution for high-end leisure travelers who previously relied on ferries or charter hops to reach the destination.
AnguillAir operates as a seasonal service, scheduled to run through April 2026. While marketed under the AnguillAir brand, the flights are operated by BermudAir using its existing Air Operator’s Certificate (AOC), flight crew, and fleet. Official scheduling data confirms the following operational timeline:
The routes will be served twice weekly using BermudAir’s fleet of Embraer E175 and E190 regional jets. These aircraft are configured to support a premium leisure product, with the E175 offering 10 Business Class and 60 Economy Class seats, while the E190 features 8 Business Class and 88 Economy Class seats.
Historically, access to Anguilla has been a logistical challenge for U.S. visitors. The standard journey involved a commercial-aircraft flight to St. Maarten (SXM), followed by a taxi to a ferry terminal, and finally a boat ride to Anguilla. Alternatively, travelers could connect via San Juan (SJU) onto smaller propeller aircraft.
In a statement regarding the launch, Adam Scott, Founder and CEO of BermudAir, emphasized the strategic intent behind the new brand:
“This is much more than a new route, it’s a reflection of what BermudAir was built to do: deliver extraordinary service while broadening our destination offerings. We’re thrilled that we are now able to extend the service and care we offer from Bermuda now also to our sister British Overseas Territory neighbour Anguilla.”
The launch of AnguillAir is closely coordinated with infrastructure developments on the island. The government of Anguilla recently opened a new terminal at Clayton J. Lloyd International Airport on December 15, 2025, specifically to handle increased capacity and direct jet service.
According to local officials, the government has provided support for the route, including a seat guarantee reported to cover up to 7,000 seats to mitigate the airline’s risk. Jose Vanterpool, Anguilla’s Minister of Infrastructure, highlighted the economic implications of the new service: “The reopening of the Clayton J. Lloyd International Airport marks a pivotal moment for Anguilla’s economic future. Our agreement with BermudAir to launch nonstop service from the U.S. Northeast is a crucial first step.”
The creation of AnguillAir represents a shrewd operational pivot for BermudAir. Launched in 2023 to serve the business and premium leisure market in Bermuda, the airlines faces significant seasonality issues, with demand for Bermuda dropping during the winter months. By deploying its aircraft to Anguilla, a warm-weather destination with peak demand from December to April, BermudAir can maximize fleet utilization without acquiring new assets.
We observe that this “pan-Caribbean” approach allows the carrier to act as a flexible capacity provider for British Overseas Territories, leveraging its existing regulatory standing and premium cabin configuration to serve niche, high-yield markets that major U.S. carriers may overlook.
Is AnguillAir a separate airline? What aircraft are used for these flights? Are these flights year-round? Do I need to take a ferry if I fly AnguillAir? Sources: Travel Weekly, BermudAir.
AnguillAir Launches Historic Direct Service from U.S. Northeast to Anguilla
Operational Details and Schedule
Addressing the “Access Issue”
Strategic Context and Infrastructure
AirPro News Analysis: BermudAir’s Counter-Seasonal Pivot
Frequently Asked Questions
No. AnguillAir is a brand name. All flights are operated by BermudAir using BermudAir aircraft and crew.
The routes utilize Embraer E175 and E190 regional jets.
No, the service is seasonal. Flights from Boston, Newark, and Baltimore operate from mid-December 2025 through April 2026.
No. These flights land directly at Clayton J. Lloyd International Airport (AXA) in Anguilla.
Photo Credit: Government of Anguilla
Airlines Strategy
TUI Airline Launches Navitaire Stratos for Modern Airline Retailing
TUI Airline adopts Navitaire Stratos, a cloud-native platform with AI-driven offer and order retailing to enhance booking and operational capabilities.
This article is based on an official press release from Amadeus.
In a significant move toward modernizing digital travel infrastructure, TUI Airline has been announced as the launch customer for Navitaire Stratos, a next-generation airline retailing platform. According to an official press release from Amadeus, the parent company of Navitaire, this partnership marks a transition from the legacy “New Skies” system to a cloud-native, AI-driven environment designed to facilitate “Offer and Order” management.
The collaboration aims to overhaul TUI’s digital capabilities, moving the leisure carrier away from rigid, traditional ticketing systems toward a flexible, e-commerce model comparable to major online retailers. By adopting Stratos, TUI Airline intends to enhance its ability to sell personalized travel bundles, manage complex itineraries, and integrate third-party ancillaries directly into the booking flow.
The aviation industry is currently undergoing a technological paradigm shift known as “Offer and Order” management (OOMS). Traditionally, airlines have relied on Passenger Service Systems (PSS) that separate schedules, fares, and ticketing into distinct, often disjointed, databases. This legacy architecture can make modifying bookings, such as adding a hotel room or changing a flight leg, technically complex.
Navitaire Stratos is designed to replace these silos with a unified system. According to the announcement, the platform utilizes open architecture and artificial intelligence to generate dynamic offers. This allows the airline to present a single, comprehensive “order” that includes flights, accommodation, and activities, rather than a collection of disparate tickets and reservation numbers.
One of the standout features of the Stratos platform, as highlighted in the release, is the introduction of shopping cart functionality. While standard in general e-commerce, the ability to add items to a cart, save the session, and return later to complete the purchase is relatively rare in airline booking engines due to the volatility of ticket pricing and inventory.
TUI Airline plans to leverage this feature to reduce friction for leisure travelers. The new system will allow customers to build complex holiday packages over time, saving their progress as they coordinate with family members or travel companions. The platform is also designed to support intelligent upselling, offering relevant add-ons such as baggage upgrades, meals, or car rentals based on specific customer data.
TUI Airline, which operates a fleet of over 130 aircraft including Boeing 737 MAX and 787 Dreamliner jets, has maintained a partnership with Navitaire for over two decades. This new agreement represents a deepening of that relationship rather than a new vendor selection. The transition to Stratos is positioned as a critical step in TUI’s digital transformation strategy. Peter Glade, Chief Commercial Officer at TUI Airline, emphasized the importance of this technological upgrade in the company’s official statement:
“We are on a journey to build the most modern airline commercial set up in the industry. Navitaire Stratos will be a cornerstone of this transformation… It will elevate our retailing capabilities with intelligent recommendations, dynamic offers, and a shopping cart that makes it easy for customers to convert their selections into an order or save them for later.”
Amadeus views this launch as a benchmark for the broader low-cost and hybrid carrier market. Cyril Tetaz, Executive Vice President of Airline Solutions at Amadeus, noted the long-term implications of the project:
“As the group transitions from our New Skies solution, close collaboration on a shared long-term roadmap will ensure business continuity, while helping shape the next-generation Offer and Order solution of reference for low-cost and hybrid carriers.”
While legacy network carriers often focus on corporate contracts and frequency, leisure carriers like TUI are uniquely positioned to benefit from the “Offer and Order” revolution. Leisure travel is inherently more complex than point-to-point business travel; it often involves multiple passengers, heavy baggage requirements, and the need for ground transportation or accommodation.
By moving to a cloud-native platform like Stratos, TUI is effectively acknowledging that it is no longer just a transportation provider, but a digital travel retailer. The ability to “save for later” is particularly potent for the leisure market, where the booking window is longer and purchase decisions are often collaborative. If TUI can successfully implement a “shopping cart” experience that mimics Amazon or Uber, they may significantly increase their “share of wallet” by capturing ancillary spend that might otherwise go to third-party aggregators.
Beyond retailing, the shift to cloud-native infrastructure offers operational benefits. Legacy PSS platforms are notoriously difficult to update and maintain. A cloud-based system allows for faster deployment of new features and greater resilience during peak traffic periods, critical factors for a holiday airline that experiences extreme seasonal demand spikes.
TUI Airline Selected as Launch Customer for Navitaire Stratos Retailing Platform
The Shift to “Offer and Order” Management
The “Amazon-ification” of Booking
Strategic Partnership and Executive Commentary
AirPro News Analysis
Why Leisure Carriers Lead the Retail Revolution
Operational Resilience
Sources
Photo Credit: Amadeus
Airlines Strategy
Volaris and Viva Aerobus Announce Merger of Equals in Mexico
Volaris and Viva Aerobus agree to merge holding companies, controlling 70% of Mexico’s air travel market with regulatory review pending.
This article summarizes reporting by Reuters and includes data from official company announcements.
In a move set to reshape the Latin American aviation landscape, Mexico’s two largest low-cost carriers, Volaris and Viva Aerobus, have announced a definitive agreement to merge their holding companies. The transaction, described by the Airlines as a “merger of equals,” aims to consolidate operations under a single financial umbrella while maintaining separate consumer-facing brands. If approved, the combined entity would control approximately 70% of Mexico’s domestic air travel market.
According to reporting by Reuters and subsequent company statements released on December 19, 2025, the deal is structured as a 50-50 ownership split between the existing shareholders of both airlines. The agreement targets a closing date in 2026, though industry observers warn that the path to regulatory approval will be fraught with challenges given the massive market concentration the merger implies.
The agreement outlines a strategy designed to capture economies of scale without alienating the loyal customer bases of either airline. Under the terms of the deal, Viva Aerobus shareholders will receive newly issued shares in the Volaris holding company. The resulting entity will retain listings on both the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE).
Despite the financial integration, the airlines plan to keep their operations distinct. According to the announcement, both carriers will retain their individual Air Operator Certificates (AOCs), commercial teams, and loyalty programs. This dual-brand strategy allows them to continue targeting their specific market segments while unifying backend logistics.
The governance structure reflects the “merger of equals” philosophy. Roberto Alcántara, the current Chairman of Viva Aerobus, is slated to become the Chairman of the Board for the new group. Meanwhile, the current chief executives will maintain their operational roles:
“Under the new group structure, Viva and Volaris will continue to operate as independent airlines, allowing our passengers to choose their preferred brand.”
, Juan Carlos Zuazua, CEO of Viva Aerobus
Enrique Beltranena will continue to lead Volaris as CEO, while Juan Carlos Zuazua remains at the helm of Viva Aerobus. The merger comes at a time when both airlines are navigating significant operational headwinds, primarily driven by global supply chain issues. Both carriers operate all-Airbus fleets and have been heavily impacted by Pratt & Whitney GTF engine inspections, which have grounded portions of their capacity.
p>Despite these challenges, the financial rationale for the merger is rooted in resilience. By combining balance sheets, the airlines hope to weather industry shocks more effectively. Recent financial data highlights the scale of the proposed giant:
Investors reacted positively to the news. Following the announcement, Volaris shares surged between 16% and 20%, signaling market confidence that a consolidated industry could lead to better yield management and profitability.
“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry.”
, Enrique Beltranena, CEO of Volaris
While the financial logic appears sound to investors, the regulatory landscape presents a formidable barrier. The combined entity would hold a near-duopoly position alongside legacy carrier Aeromexico, controlling an estimated 71% of domestic traffic. This level of concentration far exceeds typical antitrust thresholds in Mexico.
The Federal Economic Competition Commission (COFECE) has historically taken an aggressive stance in the transport sector. In 2019, the regulator sanctioned Aeromexico for collusion, and more recently, it issued findings regarding a lack of effective competition in maritime transport. The merger also faces political uncertainty due to proposed reforms that could replace COFECE with a new National Antitrust Commission (CNA) under the Ministry of Economy, potentially introducing political criteria into the approval process.
The Efficiency Defense vs. Market Power
We believe the central battleground for this merger will be the “efficiency defense.” Volaris and Viva Aerobus will argue that consolidating backend operations,such as maintenance, fuel purchasing, and fleet negotiations with Airbus,will lower their cost per available seat mile (CASM). Theoretically, these savings could be passed on to consumers in the form of lower fares, fulfilling the “democratization of air travel” mandate both CEOs frequently cite.
However, regulators are likely to view this skepticism. Economic theory and historical data from the Mexican market suggest that when hub dominance exceeds certain thresholds, premiums on ticket prices rise regardless of operational efficiencies. With Aeromexico as the only other major competitor, the incentive to engage in price wars diminishes significantly. Furthermore, the US Department of Transportation (DOT) may view this consolidation as a complication in the ongoing dispute over slot allocations at Mexico City International Airport (AICM), potentially jeopardizing cross-border alliances. Will my Volaris or Viva Aerobus points be combined? When will the merger be finalized? Will ticket prices go up?
Volaris and Viva Aerobus Agree to Historic “Merger of Equals,” Facing Stiff Antitrust Headwinds
Structure of the Proposed Deal
Leadership and Governance
Financial Context and Market Reaction
Regulatory and Political Hurdles
Antitrust Scrutiny
AirPro News Analysis
Frequently Asked Questions
Currently, there are no plans to merge loyalty programs. Both airlines have stated they will maintain separate commercial teams and loyalty schemes.
The deal is expected to close in 2026, subject to approval from shareholders and Mexican regulatory bodies.
While the airlines argue that efficiency will keep fares low, analysts warn that reduced competition often leads to greater pricing power for airlines, which could result in higher fares on routes where the new group holds a dominant position.
Sources
Photo Credit: Airbus – Montage
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