Iberia Chairman and CEO Antonio Vazquez reiterated the airline's intent to launch a separate carrier operating its short- and medium-haul flights with a "model that is substantially different than the existing one," and stressed that the decision is "irreversible," Agence France Presse reported. He said that continuing to operate short- and medium-haul flights in the same manner as long-haul would "mortgage the future of the company." Vazquez said he is hoping to reach an agreement with unions on the new carrier in the next several weeks.
US FAA awarded Boeing a $1.7 billion research and development support contract associated with the agency's planned transition from ground-based radar to a satellite-based NextGen ATC system. The contract has a five-year base with additional options for another five years. Under terms of the deal, Boeing will "perform work that will demonstrate NextGen procedures in real time on a large scale within the current air traffic system," the company said in a statement.
Bombardier reported net income of $153 million in its fiscal first quarter ended April 30, down just 3.2% compared to income of $158 million in the year-ago period amid some signs of a strengthening commercial aircraft sector. Quarterly revenue fell 6.7% to $4.2 billion. Operating profit dipped 4.7% to $224 million from $235 million a year earlier, although operating margin remained stable at 5.3%.
IATA said there was "significant improvement in all regions at the operating level" for the international airline industry in the first quarter and beyond, with one notable exception: Europe.
Ryanair reported net income of €305.5 million ($373.4 million) for its fiscal year ended March 31, reversed from a €169.2 million deficit in its prior fiscal year when results were affected negatively by€274.1 million in exceptional costs including a €222.5 million impairment resulting from its investment in Aer Lingus.
ALTA yesterday announced that TAM will operate Latin America's first biofuel demonstration flight in the second half of 2010 using an A320 partially powered by fuel derived from jatropha. The flight will be conducted in conjunction with Airbus and CFM International. The CFM56-5B-powered aircraft will utilize biofuel derived from jatropha oil refined by Honeywell's UOP. According to ALTA, TAM has acquired jatropha seeds from throughout Brazil via the Brazilian Assn. of Jatropha Producers and will pass along the seeds to UOP.
Allegiant Air flew 419.07 million RPMs in May, up 10% year-over-year, on an 8.2% increase in capacity to 455.06 million ASMs. Load factor increased 1.5 points to 92.1%. Continental Airlines said May estimated consolidated RASM increased 23%-24% from the year-ago month while estimated mainline RASM rose 22.5%-23.5%. It flew 7.81 billion consolidated RPMs last month, up 3.7% year-over-year, as capacity lifted 0.2% to 9.33 billion ASMs. Load factor rose 2.9 points to 83.8%.
International Communications Group was selected by AeroMexico to install its NxtLink ICS-120A communications systems offering flight deck voice and datalink services over the Iridium satellite network on five of its 767-200 and -300 series aircraft. ICG said the systems support ACARS, CPDLC and other FANS1/A messaging. Agreement also covers the associated Configuration Identity Modules and Spectralux Avionics Dlink+ all-in-one ACARS system, it said.
LuxairGroup yesterday announced it placed an order for one 737-800. The carrier said the aircraft's size and range will enable it to "optimize operations" for its tour operator LuxairTours. The order, valued at $77 million, previously was listed on Boeing's website as an unidentified customer.
Gol yesterday announced that it has joined IATA and that it "already enacted a number of changes in preparation of joining the association," including receiving IOSA certification. "Our membership comes at a very important moment for the industry, which is undergoing profound changes, as well as our company, as we continue to increase our international presence via codeshare agreements with leading carriers," President and CEO Constantino de Oliveira said.
US National Mediation Board denied a request by UPS Airlines mechanics to be released from mediated talks. A release would have allowed the 1,400 mechanics, represented by Teamsters Local 2727, to begin a 30-day countdown toward a possible strike. Instead, NMB effectively ordered the workers to return to talks with company management. The contract between the Louisville-based airline arm of UPS and its aircraft mechanics became amenable on Nov. 1, 2006, but talks since then have not yielded a new contract.
Wataniya Airways, a Kuwait-based premium services airline that commenced operations in January 2009, launched its first route to Europe Wednesday with thrice-weekly Kuwait City-Vienna flights operated with an A320. CCO Lee Shave told ATWOnline in Vienna that despite the foray into Europe, the carrier remains focused on expanding at a moderate pace. "Regarding Europe, we looked to several destinations," he said. "But Vienna was ideal for us and we plan to be here for several years."
Virgin Blue Group CEO John Borghetti launched a radical shakeup of the airline, including plans to cut routes where it faces stiff competition from Jetstar and Tiger Airways while chasing a 15% increase in corporate business on key routes from Perth.
Vueling Airlines will start connecting passengers through its base at Barcelona El Prat from July 5, a move that it expects will allow it to carry 250,000-350,000 additional travelers this year and another 1 million or more next year. The new connectivity will provide passengers with 418 "Vueling-to-Vueling" city-pairs through Barcelona. Customers will buy only one ticket when booking the flights. Vueling will charge only one transaction fee and connect baggage at no additional charge despite its aim to increase ancillary revenue.
The US Dept. of Transportation issued a Notice of Proposed Rulemaking yesterday to extend the requirements of the so-called tarmac delay rule to foreign airlines' US operations and to require all carriers to adopt delay contingency plans at all US airports they serve.
Air Berlin took delivery of two A320-200s from GECAS as part of an existing order agreement between the carrier and Airbus. The aircraft are two of 15 that GECAS currently leases to AB. Lufthansa Technik subsidiary AERO Alzey signed an engine services agreement with Lufthansa CityLine to cover MRO services on CF34-10 engines powering CityLine's present and future E-190/-195 fleet.
Qantas will introduce daily A380 service between Melbourne and London Heathrow and six-times-weekly A380 flights between Melbourne and Los Angele as its eighth, ninth and tenth A380s are delivered by the end of the 2011 first quarter. The services are expected to be launched by March 2011. Qantas has six A380s in service and expects to take delivery of its seventh in the final quarter of 2010, enabling Sydney-LHR A380 services to go daily.
Honeywell said last week that it will be analyzing the effects of ash ingestion in two of its TPE331 turboprop engines used to gather scientific data during the recent volcanic eruptions in Iceland. The engines powered a Do-228 "and accumulated 10 hr. of operation in the volcanic ash cloud and an additional 22 hr. of operation in the outer zone of the cloud," the company said. Engines were returned to Phoenix for teardown and evaluation. The aircraft was operated by the UK's Natural Environment Research Council.
