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.
IATA yesterday announced the signing of a multinational agreement under which the European Commission as well as the US and six other nations have agreed to consider a liberalization of the restrictions that govern bilateral air services agreements, including a promise "to consider the possibility of a multilateral agreement to waive ownership restrictions."
CSA Czech Airlines named Marek Tybl, head pilot of its ATR fleet, as VP-flight operations and CSOB executive Philippe Moreels as VP-marketing and sales.
TAM flew 2.39 billion domestic RPKs in October, up 22.3% from the year-ago month, against a 9.6% lift in capacity to 3.31 billion ASKs. Load factor rose 7.6 points to 72.3%. International traffic was up 15.7% to 1.64 billion RPKs while capacity increased 15.2% to 2.09 billion ASKs and load factor rose 0.3 point to 78.1%. Copa Airlines flew 570.2 million RPMs in October, up 16.6% year-over-year. Capacity increased 7.3% to 696.3 million ASMs, lifting load factor 6.5 points to 81.9%.
Finnair pilots represented by the Finnish Air Line Pilots' Assn. will strike for a second consecutive day today, forcing the airline to cancel its entire program of more than 200 scheduled flights. AY said leisure flights operated by management pilots will continue "with the help of leasing arrangements" and that "individual changes" to the schedule "are possible." The strike, which also affected Finnair's Sunday schedule, will cost the airline €2-€5 million per day, according to various press reports.
Yemenia adds to Airbus commitment with MOU for 10 A320s Airbus, Boeing say recovery is on the way Etihad invests $750 million in inflight product, MRO CFM strikes deals with Libyan, Tunisair, DAE worth $535 million Additional stories Dubai News from Nov. 16.
Boeing announced the completion of the side-of-body fixes on the second and third 787s. Installation on the first was finished last Wednesday ( ATWOnline, Nov. 13). The aircraft completed comprised the full-scale static test airframe and the second flight test aircraft. "Our focus now is on completing the static test later this month, which will validate the modification.
Cathay Pacific Airways will offer an economy seat with extra legroom on long-haul flights for $100 per sector beginning Dec. 1 and on flights to regional and Chinese destination for $25 from Jan. 1. Premium loyalty program members will continue to have access to the seats for free. CX said there will be 2-4 seats available on "most flights." Offer is available on Dragonair service as well.
AVIC and GE signed a framework agreement Sunday to launch an avionics joint venture targeted at the fast-growing Chinese aviation market. Lorraine Bolsinger, president and CEO of GE's Aviation Systems business, told reporters that GE and AVIC each will hold 50% of the joint venture but she declined to reveal the size of GE's investment. AVIC VP Zhang Xinguo said his company has not yet decided how much to invest and when the JV will be established formally. "Our first priority is to make a bid for the C919 for the short term," Bolsinger noted. The C919, Commercial Aircraft Corp.
United Airlines announced a partnership with ExpressJet Airlines under which the latter will operate 22 ERJ-145s under the United Express brand beginning May 1. ExpressJet will replace contract flying performed by other United Express partners whose contracts expired and were not renewed, including Mesa Air Group. United said ExpressJet offered "the most competitive bid" for the flying.
Rolls-Royce won an order for Trent 700s to power 20 A330s ordered by Air China and scheduled to begin delivery in 2011. The contract is worth $1.5 billion at list prices and includes TotalCare service support. Rolls also said its share of an order from Dubai Aerospace Enterprise for V2500s to power 20 A320s ordered by DAE's finance and leasing arm is worth $110 million. The aircraft, part of an order for 70 announced last year, are scheduled to deliver starting in 2011. Pratt & Whitney said its share is worth more than $112 million.
Airbus parent EADS suffered an €87 million ($130.2 million) third-quarter loss, reversed from a €679 million profit in the year-ago period, as unfavorable foreign exchange rates and slight decline in revenue dragged the aerospace giant back into the red following seven consecutive profitable quarters.
Oneworld is looking to increase further its footprint in Latin America, particularly in Brazil, where Gol is among the potential membership candidates with which it is in discussions, ATWOnline learned last week as the alliance welcomed Mexicana in Mexico City. "Brazil is an important market for us, and Gol is obviously a significant player. They have made great strides in the past two years and, like in India and China, we keep channels open to everyone to review continually our options and their strategy," oneworld Managing Partner John McCulloch said.
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.
