Embraer, GE, Azul Linhas Aereas Brasileiras and Amyris, a US/Brazilian biotechnology company, signed an MOU to evaluate the technical and sustainability aspects of Amyris's renewable jet fuel developed from existing sugar cane feedstock. The group is targeting a demonstration flight by early 2012 aboard an Azul E-190. The fuel already has been tested by the US Air Force Research Laboratory, Southwest Research Institute, GE Aviation and others, the companies said. The Brazilian government contributes funding to Amyris's renewable jet fuel production.
Adria Airways posted an €800,000 ($1.2 million) profit in the third quarter, its first surplus in 2009, but expects a full year in the red despite another profit in the current quarter, the Slovenian Press Agency reported yesterday. Adria also confirmed in a statement that it will become a full member of Star Alliance in January. The group announced elimination of the regional member designation (Blue1 and Croatia Airlines are the others) in June ( ATWOnline, June 9).
United Airlines announced the issue of $810 million in enhanced equipment trust certificates comprising two classes due in 2016 and 2017 respectively that it said will generate $290 million in new liquidity. It will use remaining proceeds to repay at par $493 million in equipment notes related to its 2000-02 trust certificates. It said principal payment obligations will be reduced by some $225 million next year and by $175 million in 2011.
Gulfstream International Airlines reported a $3.5 million third-quarter loss, a 13.5% improvement from the $4.1 million deficit posted in the year-ago quarter. The Fort Lauderdale-based regional suffered a 7.3% year-over-year decline in revenue to $19.5 million but its operating loss narrowed to $2.9 million from $4.4 million last year. Nine-month loss of $567,000 compared to an $8.9 million deficit in the year-ago period.
Bombardier's CSeries program took another step forward this week when construction began on a wing manufacturing facility in Belfast. The 600,000-sq.-ft. factory will be built in two phases, incorporating an existing structure. First test wing is expected in 2011. The first test fuselage barrel arrived at Bombardier's Saint-Laurent facility in August ( ATWOnline, Aug.
SAS Group Airlines flew 2.32 billion RPKs in October, down 13.5% from the year-ago month. Capacity fell 18.6% to 3.11 billion ASKs, lifting load factor 4.3 points to 74.3%. SAS Scandinavian Airlines flew 2.13 billion RPKs, down 14.6%, while capacity was cut 20.1% to 2.83 billion ASKs. Load factor rose 4.8 points to 75.4%. Turkish Airlines flew 33.08 billion RPKs through the first 10 months of 2009, up 15.1% year-over-year. Capacity rose 20.9% to 46.28 billion ASKs and load factor dropped 3.6 points to 71.5%.
Embraer yesterday announced Oman Air and Air Astana as new customers. Oman Air signed a contract for five E-175s plus five purchase rights, with four of the five firm aircraft slated to fly in WY colors and the fifth to be used by the Royal Omani Police. Deal is worth $177.5 million at list prices and could double if all five purchase rights are converted. First delivery is scheduled for the 2011 first quarter, Embraer said, adding that WY will be the Gulf region's first E-Jet operator. It will configure the aircraft with 12 business class and 60 economy seats.
Horizon Air and the Assn. of Flight Attendants announced a tentative agreement on a proposed two-year labor accord covering 548 cabin staff. Union members will vote by Dec. 21.
Lufthansa is looking at "using some elements from the LCC business model," Passenger Airlines CEO Christoph Franz was quoted as saying this week in several German newspapers. "We have to create additional markets through lower fares." Last week Air France simplified its European product in an effort to lower costs and drive efficiencies, and Franz said LH is considering adding more seats to aircraft serving domestic and continental routes and reducing the amount of onboard service. It currently offers up to six different catering options, from a snack to full dinners.
Air Austral to seat 840 in new A380s Boeing strikes pay dirt in Algeria Nepal to open new markets with Airbus order Airbus calls for biofuel incentives Additional stories Dubai News from Nov. 16, Nov. 17.
Finnair was scheduled to resume "a little less than half" of its flight program today after pilots represented by the Finnish Airline Pilots' Assn. agreed to a settlement proposal submitted yesterday by a government mediator. AY was forced to cancel two full days of flying after pilots went on strike late Sunday/early Monday ( ATWOnline, Nov. 17). "In addition to structural changes, we achieved through this agreement significant short-term cost savings.
Jazeera Airways reported a KWD762,745 ($2.7 million) third-quarter profit, down 53.2% from the KWD1.6 million earned in the year-ago period, according to a filing with the Kuwait Stock Exchange cited by several press reports. Revenue rose 4% year-over-year to KWD15.9 million on a 65% lift in passenger numbers to 582,490.
EasyJet reported net income of £71.2 million ($119.2 million) for its fiscal year ended Sept. 30, down 14.4% from £83.2 million for the prior fiscal year, a performance that CEO Andy Harrison called "extremely resilient" given that the year encompassed "12 recessionary months." In a statement, the carrier added, "We have strengthened the fundamentals of the business with improvements in network quality, lower cost deals with key suppliers and enhancements to easyJet.com, giving easyJet a great platform for profitable growth."
LAN Airlines is "looking at all the possibilities around" for potential mergers or acquisitions, COO Ignacio Cueto told Bloomberg News. "We are window shopping," he said. "There is nothing concrete."
Air Berlin posted a €95.2 million ($142.4 million) profit in the third quarter, more than double the €45.1 million reported in the year-ago period, thanks in part to reduced foreign exchange losses and €20 million in proceeds from payments on a convertible bond. Revenue fell 8.2% year-over-year to €974 million "due to planned capacity reductions," AB said yesterday, but operating profit rose 33.5% to €118 million from €88.4 million in the 2008 third quarter.
News from Travel Technology Update: OAG, which has played an integral role in the history of commercial aviation, is marking its 80th anniversary this year. For decades, the Official Airline Guide, its flagship product, was essential for travel agents, tour operators, interlining carriers anyone who needed to know which airline flew where and when. The OAG brand is venerable. That's a nice word for "old."
Indian government has "assured support" and promised a INR4 billion ($86.5 million) equity infusion to Air India by January, parent National Aviation Co. of India said yesterday. "Further installments would be tied up to the milestones of savings effected on account of cost-cutting exercise[s] adopted by the national carrier at various levels," NACIL said, adding that it plans to "aggressively rationalize its fleet size and network. . .in the coming months" ( ATWOnline, Nov. 13).
US Transportation Security Administration issued a Notice of Proposed Rule Making that would "establish security requirements for maintenance and repair work conducted on aircraft and aircraft components at domestic and foreign repair stations" and make the repair stations subject to US Dept. of Homeland Security inspections that could lead to decertification.
Arik Air will launch thrice-weekly Lagos-New York JFK service on Nov. 29 aboard an A340-500. Porter Airlines will offer twice-weekly Toronto City Centre-Myrtle Beach service Feb. 28-May 30.
Senegal Airlines was launched officially at the Dubai Airshow Sunday, taking the place of defunct Air Senegal International, which suspended operations in April ( ATWOnline, June 3). The new airline will lease aircraft initially and is scheduled to begin flying "in early 2010," according to a statement. Founding capital is valued at $34 million, with private investors holding 64%, the government 16%, employees 5% and the remainder available to the public.
North American Airlines is planning to add an all-business-class, 100-seat 767-200 for charter operations. The carrier signed an LOI with MLW Air, which serves as the charter marketing agent for Pace Airlines. The cabin will feature 2-2-2 seating with lie-flat seats with 60-in. pitch.
Thai Airways reported a THB4.03 billion ($119.5 million) loss in the third quarter, reversed from a THB426.2 million profit in the year-ago period that was the product of a large foreign exchange gain. Revenue dropped 27.7% year-over-year to THB39.15 billion while expenses including finance costs and excluding foreign exchange losses fell 31.2% to THB40.27 billion owing largely to a 50.1% fall in average fuel price and capacity cuts. TG President Piyasvasti Amranand said that as a result of the downturn, the airline "adjusted its capacity to better reflect demand. .
