Chinese government cut the domestic fuel price by CNY10 ($1.46) per ton to CNY5,200. It is the second adjustment this year following a CNY20 per ton increase on Jan. 1. Beijing makes a decision on the fuel price each quarter. Fuel currently accounts for 40%-50% of Chinese carriers' total operating expenses. China Southern Airlines is expected to benefit most from the new cut as it operates the largest number of domestic routes, comprising 80% of its total. CZ will save about CNY25.5 million in annual fuel costs.
Edelweiss Air, a Swiss International Air Lines subsidiary, ordered one A330-300 for delivery in March 2011 to replace its single A330-200. The carrier operates three A320s and is evaluating the addition of a fourth. It will launch a weekly Zurich-Calgary-Vancouver service on May 31. Edelweiss transported 703.000 passengers last year, nearly 25% more than in 2008.
Embraer last week announced that it has created the new management position of executive VP-new programs-airline market and appointed Executive VP-Airline Market Mauro Kern to the post, leading to speculation that the manufacturer is eyeing a new commercial aircraft program.
Airphil Express is the new name of the former Air Philippines, effective last week. A low-cost subsidiary of Philippine Airlines parent PAL Holdings, Airphil added two single-class, 177-seat A320-200s on lease--its first jets--and placed them into service from Manila to Iloilo, Bacolod, Puerto Princesa and Cagayan de Oro. The acquisition is the beginning of an expansion that will see the carrier acquire 20 A320s over the next 20 years, adding to its current fleet that also includes eight Q-300s/400s.
Japan Airlines' main lenders reportedly are not willing to provide the bankrupt carrier with further relief unless they see evidence that it is making strides in slashing costs, in particular by cutting back on international services.
IATA reported that demand for passenger travel and cargo transport "continues to rise strongly," but noted that carriers are adding back capacity "at a cautious pace," leading to a slower rise in yields. In its latest "Airlines Financial Monitor," the organization said that "capacity restraint [is being] partly achieved by reducing aircraft utilization, slowing recovery of profits." But with load factors high, fares are 10%-11% higher than mid-2009 levels, it said.
The US Dept. of Homeland Security Friday began implementing enhanced, "more flexible" security protocols for international flights to the US, including additional screening of passengers matching "current, intelligence-driven and threat-based characteristics."
Pan Am International Flight Academy of Miami was awarded a three-year, $3.5 million contract from FAA to provide pilot training for FAA inspectors on A300, 737-200, 737-300, 747-400, 767, 777, CRJ100/200, CRJ700, DC-8 and E-170/190 simulators.
Air Pacific named Virgin America Senior VP Dave Pflieger as its new MD and CEO effective May 1, succeeding the retiring John Campbell. Pflieger, 47, joined VX in 2004 and led the effort to secure certification as a US carrier. An A319/A320 captain, he piloted the airline's inaugural flight from San Francisco to Washington Dulles. Prior to joining VX, he was VP-operations at Delta Air Lines subsidiary Song.
Virgin America, Virgin Blue and its V Australia subsidiary announced the linkage of their loyalty programs. VX and Blue also announced a cabin crew exchange program set to start in October.
Singapore Airlines will launch twice-daily Singapore-Tokyo Haneda flights on Oct. 31 aboard a 777-300ER. SIA already operates twice-daily to Narita. Gol will launch weekly Rio de Janeiro Galeao-Sao Paulo Guarulhos-Caracas-Punta Cana service on April 3 aboard a Varig 737-800. Midwest Airlines will launch 13-times-weekly Milwaukee-St. Louis service April 1 aboard EMB-135s.
Volga-Dnepr Group, parent of heavy airfreight specialist Volga-Dnepr Airlines and scheduled air cargo operator AirBridgeCargo Airlines, said the carriers' combined traffic increased 7% year-over-year in 2009 to 1.85 billion FTKs. However, revenue for the year lowered 15% to $1.25 billion as global cargo yields took a major hit. The Moscow-based company pointed out that its traffic and revenue results compared "favorably" in an air cargo industry that had a historically negative year.
Southwest Airlines yesterday responded to comments from WestJet that it is considering exploring additional codeshare opportunities, including one with Delta Air Lines, insisting that it it is "prepared to move forward to implement our agreement" with the Canadian LCC but that it will look for alternatives for Canada service if WS goes in a different direction.
Lufthansa pilots represented by Vereinigung Cockpit have proposed arbitration to settle their dispute with the airline prior to the four-day strike scheduled to start April 13, a union spokesperson told the Associated Press. In response, LH said it would only discuss arbitration if VC first called off the strike. Chief Officer-Group Airlines and Corporate Human Resources Stefan Lauer told reporters in Frankfurt this week that the airline will seek damages from VC if the strike occurs and that extensive negotiations are required to solve the dispute.
Bahrain Air said it is targeting a breakeven 2011 and that its board has boosted its authorized capital by 50% to BHD30 million ($79.3 million). The carrier, which began flying two years ago, launched thrice-weekly flights to Dhaka and four-times-weekly service to Chittagong last month and plans to begin serving Istanbul Ataturk on June 16. It operates four A320s and two A319s.
Frontier Airlines took delivery of a 162-seat A320, the first of three scheduled to arrive this spring. Aircraft features an orca on the tail. Its Airbus fleet currently comprises nine A318s, 38 A319s and five A320s. Helvetic Airways will add its fifth and sixth F100 in May and June respectively. It also will add 30 fulltime employees, increasing the ranks to 150. It said revenue in its fiscal year ended March 31 was "around" CHF5 million ($4.7 million).
ICAO said its four-day High-Level Safety Conference in Montreal concluded with a "strong mandate" by attendees to "create a global safety information exchange to enable analysis of key safety indicators." The HSC, attended by more than 600 participants including ministers and directors general of civil aviation from 150 member countries, called upon ICAO "to facilitate the collection, analysis and dissemination of safety information" provided by member states and industry stakeholders throughout the international aviation community.
Ryanair raised its net profit guidance for the fiscal year ended March 31 to "not less than €310 million ($418 million)" from a previously forecast €275 million ( ATWOnline, Feb. 2) as a result of "somewhat stronger than expected passenger bookings, at better than expected yields" in late February and March in the runup to the Easter holiday weekend. The LCC expects to announce its full-year results on June 1.
Bombardier reported net income of C$707 million ($696 million) for its fiscal year ended Jan. 31, down 31.1% from C$1.03 billion in the prior fiscal year, blaming a "challenging economic backdrop" for the drop.
Boeing will conduct stability, control and flutter tests on its 747-8F next week before launching NAMS testing designed to establish fuel burn figures at high altitude. VP and GM-747 Program Mohammad Yahyavi told ATWOnline in Seattle that current testing is proceeding well while acknowledging that a slight redesign of the landing gear door will be required to address buffet when the gear is lowered and the flaps are fully deployed for landing. The 777 had a similar buffet problem with its nose gear in 1994.
Virgin Blue Group finalized a contract with Boeing for up to 105 737NGs, confirming and adding to a February MOU in a deal that is the biggest in the Australian company's 10-year history and the largest Boeing has landed in 18 months. The agreement includes 50 firm 737-800s with options to convert orders to either the -700 or -900, plus 25 options and 30 purchase rights. Deliveries are scheduled to run from June 2011 through 2017 ( ATWOnline, Feb. 25).
European Commission sent a "reasoned opinion" to the Czech Republic and Greece for failing to implement EU legislation concerning aircraft safety checks at their airports. EC noted that the relevant directive establishes "EU-wide safety standards" covering aircraft inspections, possible measures for unsafe aircraft (including grounding) and standards for training and qualification of inspectors. Member states were required to implement the Directive by Oct. 20, 2008. Both countries have two months to comply with the request.
Aeroports de Montreal, which operates Trudeau International and Mirabel International, reported 2009 EBITDA of C$151.5 million ($149.9 million), a 12.5% decline from the C$173.1 million earned in 2008. It said it invested C$186.4 million in the two airports last year, down 20.6% from the prior year, concentrated largely on completing YUL's new transborder departures area and work on reconfiguring the road network in front of the terminal. Full-year revenue dropped 3% to C$351.4 million.
Dublin Airport's controversial new Terminal 2 will be managed by the Dublin Airport Authority, which will have to do so in line with operating cost targets set by the Commission for Aviation Regulation, Irish Minister for Transport Noel Dempsey announced. The decision effectively ends a competition to find an external company to operate T2, which is due to open toward the end of this year.
Fraport suffered a 20.1% decline in profit last year, reporting a €157.3 million ($212.8 million) surplus on a 6.1% fall in revenue to €1.97 billion. EBIT was down 19.2% to €290.4 million. Frankfurt Airport handled some 51 million passengers during the year, down 4.7%, while freight slipped 10.1% to 1.8 million tonnes. Aircraft movements decreased 4.7% to 463,111. "The best thing about last year's financial results is our outlook for 2010," Chairman Stefan Schulte said.
