Gulfstream International Airlines parent Gulfstream International Group will convert $1.5 million of subordinated debt to convertible preferred stock under an agreement with Gulfstream Funding II, a lender that issued the loan in October.
US Air Transport Assn. said members' December passenger revenue fell 4% year-over-year, the 14th consecutive monthly decline, and 2009 full-year revenue plunged a record 18%. December passenger traffic was down 3% and the average price to fly 1 mi. dropped more than 2%. Full-year passenger volume was down 6% from 2008, with a 13% fall in the average price to fly 1 mi.. The largest previous full-year revenue decline was the 14% slip from 2000 to 2001.
LOT Polish Airlines has three bidders interested in participating in the carrier's privatization, according to reports from Warsaw. A Polish treasury spokesperson said a major airline and a financial investor are among the suitors. Air France KLM denied reports that it is participating, and Aeroflot denied interest when asked by Bloomberg News. The treasury spokesperson said the sale is unlikely to happen this year. The treasury holds 68% of the carrier.
ANA President and CEO Shinichiro Ito yesterday expressed concern over the Japanese government's heavy involvement in Japan Airlines' bankruptcy restructuring. Between the Enterprise Turnaround Initiative Corp. of Japan and the Development Bank of Japan, both of which are government-backed institutions, JAL will receive ¥900 billion ($9.9 billion) to ensure it does not collapse as it goes through the court-monitored process ( ATWOnline, Jan. 20).
ATR delivered 54 aircraft in 2009, down one from the prior year, and enjoyed record revenue of $1.4 billion, up 7.7%. The French turboprop manufacturer took orders for 40 new aircraft plus 17 options last year compared to 42 orders plus 14 options in 2008.
Fokker Services announced a €130 million ($186.5 million), 10-year FLYFokker Take Care service agreement with Austrian Airlines covering nine F70s and 15 F100s.
Copa Airlines took delivery of two new 160-seat 737-800s and now operates a fleet of 20 737-700s, 11 737-800s, 26 E-190s and one MD-80 along with AeroRepublica. The airlines expect to be operating a combined fleet of 63 aircraft by year end.
OnAir will go live with its Internet and VPN connectivity service next month but sees a profitable future for its phone and PDA inflight connectivity service, with CEO Benoit Debains telling ATWOnline yesterday, "We are, and we remain, a phone company." The Airbus/SITA joint venture provided no further details concerning Internet OnAir's launch but Debains insisted that the company's Mobile OnAir service and Internet are complementary. "Contrary to what people believe," he said, "it's not phone versus Internet."
BAE Systems secured an agreement from Condor Airlines to remarket 13 757-300s for a sale/leaseback transaction with a financial institution or lessor. All aircraft will remain in operation with the German carrier.
British Airways cabin crew represented by Unite pledged not to strike over the April 2-5 Easter holiday. The union plans to hold a new strike ballot Jan. 25-Feb. 22 and has said a work stoppage could begin soon thereafter ( ATWOnline, Jan. 12). "We are making this announcement now so families can plan their travel arrangements in confidence," Unite Assistant General Secretary Len McCluskey said.
Air France announced the introduction of a new seat on A320 family aircraft operating domestic flights. The Recaro seat will be phased in from Jan. 30 and will be 40% lighter (weighing 9.1 kg.) than its predecessor and feature 2-3 in. in additional legroom and a 15-deg. recline, AF said. Separately, AF denied reports that it is planning to introduce the compulsory purchase of an additional economy class seat for overweight passengers, saying it "has no intention of making corpulent passengers pay for a second seat." From Feb.
Ethiopian Airlines CEO Girma Wake yesterday announced that the carrier placed orders for 10 737-800s this month while achieving a long-sought objective to create a West African hub with the launch of ASKY Airlines, a Lome-based carrier operating a pair of 737s leased from ET. First flights for the new airline on Jan. 15 were from Lome to Abidjan and Banjul ( ATWOnline, Dec. 9, 2009).
CAE announced the sale of A320 and A330 CAE 7000 series full flight simulators to China Eastern Airlines subsidiary Shanghai Eastern Flight Training. Simulators are valued at C$30 million ($29.2 million) at list prices and will be delivered in 2011. SEFT currently operates six CAE FFSs: Four A320s, one A330/A340 and one 737. CAE said it also has received the cancellation of an unidentified simulator order placed last year.
Tiger Airways Holdings defied analysts' skepticism and raised S$247.7 million ($178.2 million) through its IPO that closed yesterday, of which about S$233.3 million will go to the airline to fund its expansion. Its market capitalization will be S$780 million when it lists on the Singapore Exchange on Jan. 22 ( ATWOnline, Jan. 18).
Air China parent CNAC is expected to receive a CNY1.5 billion ($219.4 million) cash injection from the Chinese government to pay back the loans it used to finalize last year's acquisition of its Air China Cargo subsidiary, according to CA Board Secretary Huang Bin.
Bmi will cease offering business class on flights from London Heathrow to destinations in the UK and Ireland from Jan. 27. In addition, passengers purchasing higher Flexible Economy fares will be able to change tickets without a fee and will have access to lounges, reserved seats at the front of the aircraft and free food and beverages onboard. It also announced the launch of twice-daily London Heathrow-Vienna service on March 28 using an A320. Star Alliance partner and fellow Lufthansa subsidiary Austrian Airlines will codeshare.
Eurowings, Lufthansa's regional subsidiary, will phase out 17 CRJ200s and two CRJ700s during the summer schedule starting on March 28 as part of the parent company's Climb 2011 cost-cutting plan. Several hundred jobs reportedly will be cut. In a statement, Eurowings said the aircraft will be removed from the fleet over a 12-month period during which the carrier will increase the number of CRJ900s to 15.
China Airlines will launch thrice-weekly Taipei-London Heathrow service on March 28. CI previously served LHR through Amsterdam. Aer Arann will operate weekly Galway-Lorient service May 30-June 21, increasing to twice-weekly June 22-Aug. 29.
News from Travel Technology Update: When you think about groundbreaking technology in the travel industry, your thoughts probably don't turn to a 125-year-old company. But NCR Corp., founded to market the first mechanical cash register, has over the last century been a leader in areas as diverse as automated credit systems (1914) and digital computers for aviation (1952).
Amadeus will provide Emirates, Finnair and TACA with its Marketing Information Data Tapes, which contain information about airline bookings made by travel agencies connected to the Amadeus GDS.
SIA Engineering Co. broke ground for a non-OEM provider of MRO services by purchasing a stake in Pratt & Whitney's PW1000G engine "risk-revenue sharing program" in exchange for a key role in Pratt's MRO network. SIAEC, a member of Singapore Airlines Group, will hold a 3% stake in the engine RRSP for the Bombardier CSeries and a 1% stake in the Mitsubishi Regional Jet engine RRSP.
Boeing, Etihad Airways, Honeywell's UOP subsidiary and the Masdar Institute of Science and Technology (an Abu Dhabi-based research and graduate program partnered with the Massachusetts Institute of Technology) announced an agreement to establish a major initiative dedicated to developing "sustainable energy solutions." The Sustainable Bioenergy Research Project will use integrated saltwater agricultural systems to support the development and commercialization of biofuel sources for aviation and co-products.
Continental Airlines will record $77 million in fourth-quarter special charges and $145 million for the full year, as well as a noncash income tax benefit, it said. The fourth-quarter items comprise $36 million in aircraft-related charges, $29 million in pension plan settlement charges and $12 million in route impairment charges. Full-year totals are $89 million, $29 million and $22 million respectively in addition to $5 million in severance payments.
Japan Airlines yesterday filed for bankruptcy protection in Tokyo under Japan's Corporate Rehabilitation Law, initiating a restructuring process that it said will include major cost cuts and structural changes with the aim of returning to profitability by March 2012.
American Airlines will increase its charge for the first checked bag on domestic flights to $25 and the second bag to $35 effective Feb. 1, matching the raises announced by Continental Airlines, Delta Air Lines, United Airlines and US Airways ( ATWOnline, Jan. 14). Premium passengers and loyalty program members are exempt.
