SAS announced June 9 as the record date for a 1:30 reverse stock split of its shares. The last day of trading in SAS shares before the split is June 4. Following the reverse split, the number of shares will be reduced from 9.87 billion to 329 million. Companies typically carry out reverse splits in an effort to increase the value of outstanding shares.
A team from Massachusetts Institute of Technology has designed two green aircraft concepts that are estimated to use 70% less fuel than current aircraft while also reducing noise and emissions of nitrogen oxides.
China's government announced that domestic per-ton fuel prices will be lowered by CNY220 ($32.30) with effect from yesterday, a move that is expected to reduce operating expenses significantly for Chinese airlines.
Virgin Blue Group advised the Australian Stock Exchange of sharply lowered earnings expectations for its fiscal year ending June 30, blaming in part fares that have fallen by 10% in the past month.
AirAsia announced an 8% year-over-year increase in first-quarter net income to MYR224.1 million ($68.7 million) on a 10% rise in revenue toMYR878 million. Passengers carried lifted 17.1% to 3.7 million; the airline did not release RPK and ASK figures. CEO Tony Fernandes said the period's major highlights were the "sustained turnaround" of its Thai and Indonesian operations and an "astounding 31% jump in ancillary income." Ancillary revenue comprised 16% of the carrier’s total revenue.
US Dept. of Transportation Friday fined AirTran Airways and Delta Air Lines $20,000 and $40,000 respectively for "violating rules that require airline price advertisements to disclose the full price consumers must pay for air transportation." DOT alleged that AirTran in February advertised fares "starting as low as $39" one-way as part of its 72-hr. "Leave the Blizzard Behind Sale," but that further investigation by the department's Aviation Enforcement Office revealed that the lowest available fare was $44.
American Airlines said Friday that it has reached a tentative agreement with its fleet service workers on a new labor contract, but the Transport Workers Union representing the workers cast doubt on whether the accord will win approval from rank-and-file members.
Hainan Airlines is seeing a marked improvement in the China-Europe market, with both demand and yield showing growth, GM-Europe Liang Pubin told this website Friday in Brussels as the carrier launched thrice-weekly BRU-Shanghai Pudong service. Demand for all airlines on China-Europe routes increased 30% in the first quarter compared to the year-ago period, he said, adding, "Hainan witnessed a traffic increase higher than that…Yield is coming back also."
US FAA ADS-B Out final rule announced May 28 contains a summary of costs ranging from $2.74 billion to $5.47 billion, assuming a 3% discount rate (net present value) and a cost of $2.15 billion-$4.11 billion discounted at 7% NPV.
The US National Transportation Safety Board issued two urgent safety recommendations to FAA regarding CF6-45/-50 series engines prompted by four recent incidents in which aircraft experienced uncontained engine failures owing to failed turbine disks. None of the incidents led to accidents, but NTSB is concerned that future similar events "present a direct hazard to an airplane and its passengers because high-energy disk fragments can penetrate the cabin or fuel tanks, damage flight control surfaces, or sever flammable fluid or hydraulic lines."
The proposed merger of Continental and United may create a potent global competitor, but only if Continental’s winning ways can be integrated into the successor.
Although the two events are not related in any physical sense, a synchronicity exists between the shutdown of northern European airspace for six days in mid-April and the proposed merger between United Airlines and Continental Airlines, announced a few weeks later.
Airlines protested the closure of airspace during the volcanic eruption, but lack of consensus on safe levels of ash left regulators feeling they had little choice.
Volga-Dnepr Airlines took delivery of one "built-to-order" PS-90А-76-powered IL-76TD-90VD freighter and completed the first customer flight. The freighter, manufactured at Tashkent Chkalov Aviation Factory, is part of a contract for three additional IL-76TD-90VDs signed by Volga-Dnepr Leasing Co. with JSC UAC-Transport Aircraft in 2007.
Japan Airlines and China Eastern Airlines expanded their codeshare agreement to include daily CEA-operated flights from Shanghai Pudong to Xi'an, Wuhan and Shenzhen as of June 3. They also will increase the frequency of existing Shanghai codeshare routes to Chengdu and Chongqing from four-times-daily to nine-times-daily. Gol Linhas Aereas Inteligentessaid its Varig subsidiary will launch weekly Sao Paulo Guarulhos-Bridgetown, Barbados, service June 26.
