Virgin America will launch services to its first destination outside the US with twice-daily flights to Toronto Pearson from San Francisco and Los Angeles June 23. Avianca will launch twice-weekly Medellin-Madrid service July 3 aboard an A330.
Continental Airlines said that its 111 dispatchers represented by the Transport Workers Union ratified a new four-year collective bargaining agreement.
Boeing flew its second 747-8F test aircraft to Palmdale, heralding the transition of testing to Southern California. The 747-8F will be stationed in Palmdale for the majority of its scheduled flight test program. Flight crews will conduct several test flights with fuel mileage and engine performance as key focus areas. In coming weeks two additional 747-8s will arrive in Palmdale.
Allegiant Travel Co., parent of Allegiant Air, reported $22.6 million in net income for the first quarter, a 19.8% decrease from its year-ago profit of $28.2 million. Operating revenue was up 19.4% to $169.6 million but expenses jumped 36.6% to $133.4 million on a 71.8% hike in aircraft fuel costs to $57.4 million. This caused operating income to fall 18.5% to $36.2 million. "We are pleased to announce our 29th consecutive profitable quarter with the results of the first quarter of 2010," CEO and Chairman Maurice Gallagher said.
Cebu Pacific Air ordered seven more A320s, bringing its outstanding orders for the type to 22, which will be delivered beginning in October and continue through late 2014. "This will enable us to have the largest fleet of Airbus A320 family aircraft in the Philippines and the second-largest in Southeast Asia, allowing us to offer our trademark low fares to even more Filipinos," President and CEO Lance Gokongwei said. The additional aircraft will bring the carrier's A320 fleet to 43 by 2014.
Shanghai-based China Eastern Airlines yesterday reported a 2009 net profit of CNY539.7 million ($79.2 million), a big turnaround from a net loss of CNY13.93 billion in 2008, on a 4.8% decrease in operating revenue to CNY39.83 billion.
Delta Air Lines yesterday said it had cancelled around 400 flights and lost an estimated $20 million through April 19, or around $5 million per day, owing to the closure of European airspace. The figure seems to be in line with estimates by J.P. Morgan that aggregate losses for US airlines will be "kept to within $100 million" based on a seven-day disruption. In a report released Monday, the investment firm noted that "transatlantic operations account for no more than 8% of operations for US legacy carriers" and "are among the most costly for US airlines."
Delta Air Lines reported a first-quarter net loss of $256 million, narrowed from a $794 million deficit in the year-ago period, and CEO Richard Anderson said continuing evidence of "the right trends in the revenue environment" have the company "optimistic about the rest of the year" and anticipating a "solidly profitable" second quarter.
A new ash cloud halted efforts to restore full air traffic operations in Europe yesterday, but UK regulator CAA announced plans to reopen airspace with some restrictions from 10 p.m. local time, enabling flight operations to resume into London airports this morning.
SR Technics yesterday confirmed its plans to consolidate its London Stansted component services organization to Zurich following a statutory consultation period with the representatives of its employees. It announced the plans in January ( ATWOnline, Jan. 14). The consolidation will affect 340 employees at the London facility, it said, adding that it will continue to operate its line maintenance business in the UK.
JetBlue Airways received its IOSA registration and is now a member of IATA. The airline said joining the IOSA registry will "expand JetBlue's partnership opportunities" and demonstrates its "rigorous [safety] guidelines."
Frontier Airlines will operate seasonal Denver service to Green Bay (daily aboard an E-190), Louisville (daily), San Francisco (daily) April 19-Oct. 22 and to Branson (four-times-weekly aboard an E-190) April 20-Oct. 22. It also will operate seasonal daily Milwaukee-San Diego flights April 19-Nov. 17. It said the new routes are part of a 17-market expansion taking place this spring and summer following its integration with Midwest Airlines ( ATWOnline, April 14).
Aviation Capital Group reported first-quarter activity comprising leases of one new A320-200 by Avianova, a new PW4060 by Delta Air Lines and a new A320-200 by Batavia Air and extension of leases on two 737-800s by Sun Express, two A320-200s by Dragonair, four 737-300s by US Airways, one A321-200 by Spanair and one 737-300 by Southwest Airlines. ACG also acted as an agent, selling one MD-83 to Air Austral. It reported two new order deliveries: One 737-800 by Ukraine International Airlines and one 737-800 by Copa Airlines.
Airbus said it was taking advantage of "scheduled development test flights to assess the impact on the aircraft and its flight systems" of potential volcanic ash encounters. An A380 flew in French airspace and an A340-600 flew in French and German airspace yesterday. The manufacturer said it will "share the findings from these flights with the relevant airworthiness authorities and engine manufacturers as soon as possible."
ExpressJet Holdings board of directors named Thomas Hanley president and CEO effective immediately. Hanley, who has extensive regional airline experience, succeeds Patrick Kelly, who held the positions on an interim basis following the departure of Jim Ream in December to become senior VP-maintenance and engineering at American Airlines
Two weeks after Spirit Airlines announced it will charge fees of up to $45 for carryon luggage, American Airlines, Delta Air Lines, JetBlue Airways, United Airlines and US Airways pledged not to follow suit. Spirit is not backing down. CEO Ben Baldanza told the Associated Press, "Our plan was never predicated on anyone matching us. The fact that other people are saying they won't has never changed our view that this is right."
Airlines busy assessing the toll of the volcanic-ash-induced airspace closure and figuring out how to resume operations to/from/within Europe were not shy in expressing dissatisfaction with EU governments' handling of the situation.
European Commission President Jose Manuel Barroso announced yesterday that he has established an ad-hoc group to assess the economic fallout from the multiday closure of much of Europe's airspace, with a particular focus on how the air transport industry was affected.
European airspace began gradually reopening yesterday following more than four days of severe restrictions on civil flights owing to last week's Icelandic volcano eruption, but European Commission VP-Transport Siim Kallas cautioned there would be "no compromise on safety" despite economic pressure to return to business as usual. Eurocontrol said it would permit the "the progressive and coordinated opening of European airspace" and announced yesterday that airspace would be divided into three zones.
There have been 90 incidents over the last 30 years in which aircraft have encountered volcanic ash, invisible to weather radar and totally undetectable at night, and several of the encounters created very dangerous situations.
Recaro Aircraft Seating opened a new service center in Stockholm with the aim of offering closer proximity for services for customers in the Scandinavian region. It said the facility will enable it to offer services on short notice in Sweden, Norway, Finland, Denmark, Iceland, Estonia, Latvia and Lithuania in cooperation with partner company Sollentuna Cabin Interiors.
Volcanic ash from last week's eruption in Iceland continues to cause dramatic disruption to air traffic in Europe, with many airlines cancelling services for a fifth consecutive day Monday owing to airspace closures but questioning whether EU governments and ATC providers are overreacting.
Aerolia announced it has produced the first pipe for the A350 XWB galley cooling system and the first composite ply for the upper shelf panel. It won the contract from Airbus last year ( ATWOnline, May 1, 2009).
Precision Conversions will provide Aerolease International with three 15-pallet 757-200PCFs. The first is scheduled for induction this month with the following two scheduled for delivery in May and July. All three will be modified by Flightstar Aircraft Services.
Cathay Pacific Airways and Dragonair flew 8.08 billion RPKS in March, a 6.6% rise year-over-year. Capacity was cut 1.6% to 9.43 billion ASKs, lifting load factor 6.6 points to 85.7%. Germanwings transported 532,169 passengers in March, up 5.1% year-over-year. Load factor fell 3.1 points to 73.8%. Great Lakes Aviation operated 11.18 million RPMs in March, up 6.6% year-over year against a 3.6% cut in capacity to 32.16 million ASMs. Load factor rose 3.3 points to 34.8%.
