Frontier Airlines Holdings, parent of Frontier Airlines and Lynx Aviation, officially emerged from Chapter 11 bankruptcy protection yesterday and was acquired by Republic Airways Holdings as planned.
JAT Airways said yesterday that its fleet was grounded owing to a strike by JAT Tehnika mechanics that service its aircraft. The mechanics reportedly are protesting the airline's failure to make payments to JAT Tehnika in a timely manner. "We are negotiating and expect to find a solution," a spokesperson for the Serbian carrier told Reuters. "Our debt to JAT Tehnika is $1.5 million and we never disputed that. We are a month behind in paying it." JAT Tehnika has 900 employees.
AirTran Airways said it entered into agreements with its principal credit facility lender and its largest credit card processor to extend and modify both its credit facility and its credit card processing arrangement, "resulting in enhanced liquidity and improved financial flexibility." The carrier did not place a specific value on the accords but said that it expects to end the current quarter with more than $400 million in unrestricted cash and short-term investments.
Exactly two years after ATR announced the launch of its -600 series, the manufacturer officially presented its first ATR 72-600 prototype at a ceremony in Toulouse yesterday. The prototype -600 (converted from an ATR 72-500) started its flight test campaign in July 2009 after being powered on in December 2008. The aircraft is fitted with new Pratt & Whitney 127M engines.
Etihad Airways completed its first European export credit agency-guaranteed transactions covering $233 million to finance the purchase of two A340-600s. In the first deal, HSBC Bank, acting as the mandated lead arranger, lender, facility agent, security trustee and hedge provider, will furnish financing valued at $122 million to the airline over 12 years. The second $111 million agreement was signed with Landesbank Baden-Wuerttemberg, which acted as mandated lead arranger, lender, facility agent and security trustee. Debt placement for this deal was undertaken by SkyBlue Capital LLC.
Saudi Arabian Airlines took delivery of its first A320, acquired under a long-term lease agreement with ALAFCO. It will deploy the aircraft from Riyadh to routes in the region as well as to Europe and to the Indian subcontinent.
Pratt & Whitney Canada said it will cut 250 employees by year end and additional 160 workers next year in order "to align with a projected decline in customer demand and weakness in the global aerospace market with no signs of a recovery in 2010." President John Saabas described the job reductions as necessary owing to "difficult times," adding, "We need to make strategic decisions and structural changes to remain competitive and preserve our future in the face of continuing economic headwinds." P&WC said it will consolidate its activities into "three key strategic manufacturin
The worst economy in at least 40 years remains the biggest challenge for US airports and they are doing all they can to retain air service as airlines cut back on flights, says Airports Council International-North America President Greg Principato. "Airports are cutting their budgets to make it possible for airlines to serve their communities," he tells ATW's Airports Today, adding that they have been forced to furlough or lay off employees as carriers have reduced service.
Amsterdam Schiphol fees will remain stable through April 1, 2010, despite the current economic downturn. "By keeping charges at the current level, AMS aims to help airlines maintain and expand their network of destinations to and from AMS," a spokesperson explained. In doing so, Schiphol will accept a lower return on aviation activities than is permitted based on its Aviation Act. The decision not to increase charges at this moment is based on a commercial consideration, which is feasible from a financial point of view.
By year end the City of New Orleans plans to issue a request for qualifications from organizations interested in leasing its Louis Armstrong International Airport and downtown heliport. It expects to ask for bids next spring and send a final application for privatization to FAA by the fall of 2010, a spokesperson for Armstrong International tells this newsletter.
Greater Toronto Airports Authority announced that landing fees and terminal charges at Toronto Pearson will each be reduced by 10% effective Jan. 1. GTAA said landing fees have been cumulatively lowered by 13.1% since 2007 while terminal fees have been cut by 15% over the same period. "This fee reduction is welcome because it helps us control costs in this challenging economic environment," Air Canada Executive VP and COO Duncan Dee said in a statement.
Almost half the passengers at Frankfurt International Airport are there to change flights, making it the leading connecting airport in Europe, Fraport AG CEO Stefan Schulte told ATW's Airports Today. "Compared to airports like Paris CDG or London Heathrow which have a big city behind [to generate traffic], FRA has developed itself to be a transfer airport," he said.
Airports have to focus on customer service along with revenue diversification and future growth if they hope to remain competitive at a time when airlines are reducing capacity, Airports Council International DG Angela Gittens told representatives at the Airport Business and Trinity Forum in Macau in late September.
The unbundled fare is the airlines' new best friend, enabling them to boost revenues through fees for checked bags, seat assignments and other items that used to be included in the fare. And while the airlines know that the fees can be a lifeline -- the industry collected $669.6 million in baggage fees in the second quarter, according to the Bureau of Transportation Statistics -- they have difficulty pinpointing which flights are ancillary revenue generators.
Amadeus told its German subscribers it will begin partially compensating them for payments they make to Lufthansa under the carrier's Preferred Fares program on Jan. 1. Lufthansa's PFP, which went into effect in July 2008, imposes a €4.90 per-segment surcharge for Germany-originating flights booked through Amadeus. Lufthansa reached agreements for lower distribution costs with Sabre and Travelport that exempt their subscribers from the surcharge, but Amadeus, the largest GDS player in the German market, did not.
No small irony attaches to the fact that as the World Trade Organization was releasing its preliminary findings on its investigation into European state aid for Airbus, China was unveiling detailed plans for its proposed C919, the state-developed 150-seat transport with which it hopes to challenge Airbus and Boeing by the middle of the next decade.
Dubai Airports is projecting a 13.6% growth in passengers in 2010. Total passengers are expected to reach 40.5 million by the end of 2009 and top 46 million in 2010. An improving economy, strong expansion by Emirates Airline, the emergence of LCC flydubai and open skies policies are driving the growth, according to Dubai Airports CEO Paul Griffiths.
