Cabot Aviation arranged the sale of two BAe 146-300s from KLM cityhopper to Cologne-based WDL Aviation, which will operate the aircraft on ACMI and charter contracts.
Airline leaders presented the industry's proposals for reducing aviation's contribution to greenhouse gas emissions at a United Nations forum on climate change yesterday. The airline delegation, led by British Airways CEO Willie Walsh and SAS Group President and CEO Mats Jansson and including representatives from Air France KLM, Qatar Airways and IATA, was attending the UN Secretary General's Summit on Climate Change in New York.
Lufthansa Technik won a contract to provide line maintenance at Brussels Charleroi for eight Ryanair 737-800s. Deal includes an option for increased support if the LCC expands at the airport.
Japan Airlines President Haruka Nishimatsu is scheduled to meet with new Japanese Transport Minister Seiji Maehara Thursday for the first time to discuss the airline's restructuring plan, Nikkei reported. There is speculation in Japan that JAL's restructuring may be revised in the wake of the Democratic Party of Japan's recent election triumph.
Porter Airlines expects to turn a profit in 2009, President and CEO Robert Deluce told Reuters. The Toronto-based regional is privately held and does not release its financial results. Deluce also said that "there is likely to be a follow-on aircraft order of some sort" to its commitment for 20 Q400s ( ATWOnline, June 30). It will be operating 18 Q400s by next month, the news service reported.
FedEx yesterday took delivery of the first of 30 777 freighters on order. By April 2010 it plans to have four 777Fs flying between Asia and the US. It said flight time will be 1-3 hr. faster than the MD-11. Deliveries will continue through 2019.
Aer Lingus may stop operating its loss-making routes to the US, especially those from Shannon, and transfer them to a third party or codeshare partner as part of initiatives to address its long-haul deficits, according to Irish press reports. EI CEO Christoph Mueller stated that he appreciates the "national importance" of the carrier's American routes but said his airline is "not a charity," suggesting that the Shannon-New York JFK route has survived only because of pressure from the Irish government, IrishCentral reported.
United Airlines will launch twice-daily Chicago O'Hare-Duluth, ORD-Asheville, Denver-Midland/Odessa, Los Angeles-El Paso and daily DEN-Louisville service on Dec. 17 aboard SkyWest Airlines CRJ200s. Midwest Airlines will launch 19-times-weekly Milwaukee-St. Louis flights on March 1 aboard an E-135. It will operate daily MKE-Fort Lauderdale and six-times-weekly/daily Kansas City-Fort Myers flights Dec. 17-April 19 aboard E-170s.
Honeywell said Memphis International will become the first US airport to deploy its Smartpath Precision Landing System early next year following approval this week by FAA. The ground-based augmentation system initially will supplement legacy instrument landing systems and later replace ILS by augmenting GPS equipment "to provide precision approach guidance to all qualifying runways," FAA said.
US National Air Traffic Controllers Assn. elected Executive VP Paul Rinaldi as president for a three-year term beginning Oct. 17. Rinaldi works at Washington Dulles. Jazz Air promoted Senior VP-Employee Relations Colin Copp to CAO and Senior VP-Operations Support Jolene Mahody to COO.
Naverus said China Eastern Airlines, supported by CAAC, successfully completed an RNP-validation flight at Yushu Airport in the Himalayas using an A319 on Sept. 15.
Sukhoi Superjet 100 successfully completed a high-altitude test campaign in Armenia this week. Gyumri's Shirak Airport is 1,524 m. above sea level. Aircraft conducted single-engine takeoffs and missed approaches and "proved compliance with the certification requirements," Sukhoi said.
Lufthansa Flight Training last week took delivery of an A380 cockpit simulator from Thales. Training sessions at its Frankfurt center will begin in January.
Chinese regulator CAAC is planning a series of measures designed to lift domestic freight carriers out of the red, including increasing shipping rates, providing subsidies and encouraging mergers and consolidation. Foreign airlines currently hold an 85% share of the Chinese international cargo market. There are nine domestic freight carriers operating 70 aircraft as of Dec. 31, 2008.
Airports Council International-North America came out in support of limits to runway and tarmac delays, with President Greg Principato saying the organization "supports airlines working with Congress and the Dept. of Transportation to determine specific deadlines," and that "airlines should be held accountable for adhering to the predetermined deadlines." ACI-NA has filed motions with DOT supporting enhanced protections for passengers, such as increased compensation for delayed or cancelled flights and lost baggage.
American Airlines parent AMR Corp. yesterday announced concurrent offerings of 30 million shares of common stock and $250 million principal amount of its convertible senior notes due 2014. AMR said it would grant underwriters of both offerings 30-day options to purchase up to 4.5 million additional shares and $37.5 million principal amount of notes to cover any overallotments. It said it would use the net proceeds for general corporate purchases.
Lufthansa plans to cut 15% of the 1,800 employees working in central operations, such as those in the communications and financial departments, a spokesperson confirmed to ATWOnline. The company will reduce the number of positions by 5% annually in 2010-12. "During the same period, we want to reduce our nonpersonnel costs by 7% annually," the spokesperson said.
Airlines in the US collected $669.6 million in baggage fees in the second quarter, nearly four times more than the amount collected in the year-ago period and up 18.2% from the first quarter, helping boost operating margins nearly across the board, the US Dept. of Transportation reported yesterday. American Airlines led the way last quarter with $118.4 million in baggage revenue. Delta Air Lines (not including Northwest Airlines) was just $86,000 behind and US Airways took in $104.1 million. AirTran Airways, the leading LCC, came in seventh with $40.5 million.
Finnair announced the issue of a €120 million ($176.7 million) domestic hybrid bond with a coupon rate of 9% per year. The bond was oversubscribed, the company said, and will be used to "finance the investment program and to strengthen the group's capital structure." Nordea Markets was appointed sole bookrunner. A hybrid bond is subordinate to the company's other debt obligations and is treated as equity on IFRS statements, Finnair said.
International Bureau of Aviation said at last week's SpeedNews Annual Aviation Industry Suppliers Conference in Toulouse that the value of new single-aisle aircraft has dropped 8% in the past year. New 737-800s were valued at $42.2 million in the 2009 second quarter, down from $45.9 million in the 2008 quarter, while the value of a new A320 declined to $40.2 million from $43.5 million. Average lease payments also fell, to $340,000 per month from $415,000 per month for the -800 and to $320,000 from $395,000 on the A320, IBA said.
Virgin Blue is hoping to take advantage of the global downturn to order up to 50 new 737s at "bargain prices," CEO Brett Godfrey told ATWOnline. "Now is a great time to buy. We are in the market because the market is right and we don't want to miss the opportunity," he said. Blue operates 65 aircraft comprising 50 737-700s/-800s and 15 E-Jets. It now is considering the -900ER, which can seat up to 215 passengers, 26 more than its largest current aircraft.
US Air Transport Assn. said yesterday that US airlines' August passenger revenue fell 21% year-over-year, marking the 10th consecutive month of decline, while IATA said there was evidence of "an upturn" in premium passengers in July but warned that the rebound likely will be slow and excess capacity will keep yields low.
