Embraer reported second-quarter net income of $70.3 million, up 3.7% from a $67.8 million profit in the year-ago period, and expressed a positive outlook regarding commercial aircraft demand.
Taiwan's aviation authority suspended 31 weekly cross-strait flights on Monday, claiming a different understanding of thelatest agreement that was signed with Beijing in May ( ATW Daily News, May 25). The remaining 19 weekly cross-strait flights—14 from Taipei (Songshan airport) to Shanghai (Hongqiao airport ) and five to middle and southern Taiwan—can be operated normally, Taiwan said.
Mexicana Airlines filed for protection from creditors in Mexico and the US late Monday, conceding in a statement that its "financial and labor situation is no longer sustainable."
Continental Airlines said it plans to offer $750 million of senior secured notes due in 2015. The notes will be guaranteed by its Air Micronesia and Continental Micronesia subsidiaries and secured by certain routes, airport slots and gate leaseholds utilized in connection with the routes. Approximately $350 million of the proposed offering will be used to retire an existing secured loan facility that is due in June 2011 with the remainder dedicated to general corporate purposes.
Up to four new Indonesian airlines are expected to be given rights to fly from Indonesia to Australia after the two countries announced an increase of almost 50% in the weekly capacity to 14,800 seats. Indonesian carrier Batavia Air last week announced it had been given rights to fly from Bali to Perth, Melbourne and Sydney, while applications from Sriwijaya Air, Mandala Airlines and Lion Air are pending.
Aer Linguscabin crew, represented by the Impact union, last week announced it would ballot for strike action as part of an ongoing dispute over proposed cost-cutting measures. This would be the third ballot, following an initial 64% vote against the changes that encompass pay cuts, redundancies and productivity increases, and a subsequent 93% vote supporting the restructuring measures ( ATW Daily News, March 29).
US FAA and EASA jointly certified CFM International’s advanced CFM56-7BE engine for the 737NG. The engine is scheduled to enter service in mid-2011 to coincide with 737NG airframe improvements being implemented by Boeing. Over the past year, the CFM56-7BE has completed 450 hr. of ground and flight testing. Boeing said the improved 737NG will offer an enhanced airplane/engine combination providing a 2% improvement in fuel consumption and an equivalent reduction in carbon dioxide emissions.
Air China subsidiary Shenzhen Airlines has decided to purchase 10 A320s, worth $814 million at list prices, to boost its capacity in the southeast and southern parts of China. CA revealed the transaction in a stock filing released by the Shanghai Stock Exchange. Shenzhen will take delivery of the aircraft in 2012 and 2013. Shenzhen operates a fleet of 134 aircraft, which includes 32 A320 family aircraft.
Northwest Airlines has agreed to plead guilty to fixing prices on air cargo shipments and pay a $38 million criminal fine, the US Dept. of Justice announced.
American Airlines and Delta Air Lines said they will remove their codes from AeroMexico and Mexicana flights respectively following the US FAA's downgrading late Friday of Mexico's safety rating from a Category 1 to Category 2.
The European Commission said it has "opened an in-depth investigation under the EU Merger Regulation" into the planned Olympic Air/Aegean Airlines combination, stating that its initial inquiry into the deal found that "serious competition concerns" could arise.
Thai Airways International Public Company and Tiger Airways Holdings announced Monday that they will jointly launch a new low-fare airline venture, to be called Thai Tiger Airways, to offer service from Bangkok to domestic and international routes.
Yemen Airways will launch thrice-weekly Sana’a-Nairobi and Sana’a-Dar es Salaam services Dec. 6 aboard a 737-800. Etihad Airways will commence daily Abu Dhabi-Seoul Incheon flights Dec. 12 aboard an A330-200 configured with three classes. The carrier will offer 2,800 seats each week to and from Seoul, which will become the 65th destination on its network.
Airbus parent EADS posted first-half 2010 net income of €185 million ($241.7 million), down 51% from a €378 million profit in the year-ago period, but expressed optimism going forward owing to rebounding commercial aircraft sales. Large numbers of orders announced at this year's Berlin and Farnborough air shows "reflect an improvement in the commercial aviation market," CEO Louis Gallois said. EADS's first-half order intake jumped 79% year-over-year to €30.8 billion "due to higher commercial aircraft orders," the company stated.
Virgin Atlantic Airways said Friday that the start of its current fiscal year “has been encouraging despite difficult trading conditions,” with revenue for its fiscal first quarter ended May 31 up 10% on the prior-year period to £513 million ($670 million) despite the impact of April’s volcanic ash cloud. Quarterly cargo revenue was up 36% to £52 million. Passenger load factor increased 5 points to 82%, it said, adding that it had 15% additional first-class passengers. It did not provide passengers carried or ASKs/RPKs.
British Airways reported a net loss of £122 million ($190.5 million) for its fiscal first quarter ended June 30, widened 15.1% from a £106 million deficit in the year-ago period, but noted that operating loss improved 23.4% year-over-year to £72 million.
The US Congress attached sweeping aviation safety reform legislation, including a requirement that all Part 121 pilots accumulate at least 1,500 hr. of flight time before operating a commercial flight, to its latest short-term FAA funding extension passed on Friday.
ANA Group posted a net loss of ¥5.2 billion ($60.2 million) for its fiscal first quarter ended June 30, a significant improvement over the ¥29.2 billion loss in the year-ago period, as deflationary effects continued to exert downward pressure despite a recovery in the Japanese economy.
Southwest Airlines' second-quarter net income rose 23.1% year-over-year to $112 million from $91 million in the year-ago period and the LCC expressed confidence in "continued strong revenue performance" for the remainder of 2010.
As part of its largest order to date, OnAir will equip 90 Emirates A380s with connectivity that will enable passengers to make voice calls, send SMS text messages or use wireless data services ( ATW Daily News,July 21). "Major airlines now are starting to recognize the connectivity that had been a 'nice-to-have' historically has moved [beyond] that," OnAir CEO Ian Dawkins told ATW. "If you want to be a five-star airline, it's something you have to offer."
Indonesia’s Directorate General of Civil Aviation ruled that all safety-sensitive aviation personnel must eat while on duty during Ramadan, the Islamic month of fasting that begins Aug. 11. The ruling affects air traffic controllers, flight attendants, pilots, aircraft maintenance engineers, airport maintenance personnel, airport ramp personnel, baggage and freight load dispatch controllers and security personnel.
