American Airlines flew 11.17 billion system RPMs in August, down 8.1% from the year-ago month. Capacity dropped 9.4% to 13.19 billion ASMs, lifting load factor 1.2 points to 84.7%. American Eagle flew 682.2 million RPMs, down 3.1%, against a 7.2% decline in capacity to 938.2 million ASMs. Load factor rose 3 points to 72.7%. Southwest Airlines said August passenger RASM fell 5%-6% year-over-year. It flew 6.69 billion RPMs, up 1%, while capacity dropped 6.1% to 8.34 billion ASMs. Load factor increased 5.6 points to 80.2%.
Aeromexico reportedly said it will permit passengers to make calls with their mobile phones following the Mexican government's decision last week to lift the ban on inflight use in domestic airspace, although flight attendants will be allowed to suspend the privilege if necessary.
Ryanair announced an increase in its baggage fees effective Oct. 1 on the heels of a 20% drop in the average fare this year to €32 ($45.70). It also will allow passengers to check a second bag. Each of the two bags will have a 15-kg. limit. The first will cost £/€30 if checked in at the airport or £/€15 on the Internet and the second will cost £/€70 at the airport or £/€35 online. Sports equipment will cost £/€50 at the airport and £/€40 online and excess luggage will cost £/€20 per kg.
Turkish Airlines launched five-times-weekly Istanbul Ataturk-Jakarta service. AirTran Airways will launch service to Nassau Dec. 17 from Atlanta (daily), Baltimore (four-times-weekly) and Orlando International (four-times-weekly) and to Montego Bay Feb. 11 from ATL (daily), BWI (daily) and MCO (four-times-weekly). Wizz Air will launch twice-weekly Kiev Boryspil-Treviso service Oct. 27, increasing to thrice-weekly Dec. 15. Bmibaby will operate twice-weekly Manchester-Lourdes service April 30-Oct. 1, 2010.
KD avia suspended ticket sales last week and Russia's federal air transport agency Rosaviatsiya plans to revoke the Kaliningrad-based airline's operating certificate on Sept. 14. Rosaviatsiya head Gennady Kurzenkov told ITAR-Tass that KD "has been notified in advance its certificate will be revoked.
Air France announced plans to offer employees a voluntary redundancy plan that could result in as many as 1,500 departures. The airline said it informed the Comite Central d'Enterprise workers council of the decision and intends to discuss the matter this week "with a view to presenting a project voluntary redundancy plan to the CCE on Oct. 21."
Moog said it expects to sign a definitive purchase agreement "very shortly" for GE Aviation Systems' flight control actuation product line in Wolverhampton, which GE acquired in May 2007 when it bought Smiths Aerospace ( ATWOnline, May 7, 2007). The Wolverhampton line furnishes high-lift actuation systems for the 777, 787, A330, A380 and military aircraft. It had $100 million in sales last year.
US Airline Pilots Assn., which represents US Airways flight crew, filed a lawsuit in federal court seeking removal of the Pension Benefit Guaranty Corp. as trustee of US pilots' pension plan and appointment of a temporary replacement "to investigate the plan's financial affairs." PBGC assumed control of the pension plan in 2003 when US terminated it during bankruptcy.
China last week raised the domestic fuel price by CNY300 ($43.86) per ton, which is expected to result in a CNY2 billion increase in annual operating costs for the airline industry, according to China Securities Co. aviation analyst Li Lei. Fuel accounts for more than 40% of Chinese carriers' total operating expenses. According to Li's estimate, China Southern Airlines will suffer a CNY760 million profit reduction since 80% of its route network is domestic. China Eastern Airlines' bottom line will sink by CNY420 million and Air China's will drop by CNY460 million.
The World Trade Organization issued a confidential 1,000-page preliminary ruling Friday regarding the legality of subsidies received by Airbus during development of the A380, with statements and press reports indicating that it may have found at least some problems with the aid.
Etihad Airways yesterday launched thrice-weekly Abu Dhabi-Chicago O'Hare service aboard an A340-500, increasing to six-times-weekly on Oct. 31 and daily from the beginning of 2010. Alaska Airlines launched daily Portland, Ore.-San Jose-Austin service Tuesday aboard a Wi-Fi equipped 737-700. Route becomes twice-daily on March 14. Air Berlin will operate seasonal weekly service from Nuremberg to Araxos and Kalamata beginning May 4.
Singapore Airlines and Airbus reached an agreement to delay the delivery of eight A380s by 6-12 months. SIA's 12th through 19th aircraft will be affected by the new schedule, which will see the 12th delivered in October 2010 rather than April and the 19th arrive in January 2012 rather than January 2011.
Priestmangoode of London was contracted by Turkish Airlines to rebrand the carrier. Redesign will include aircraft interiors, lounges, check-in counters and consultation on a new livery. Work will begin next year with interior retrofits and installation of the new design in THY's 777s scheduled to begin delivery by the end of 2010.
The Australian Competition and Consumer Commission instituted proceedings in federal court against Garuda Indonesia, the 10th airline now accused of "alleged price-fixing in the air cargo industry," the regulatory body said. ACCC claimed that between 2001 and 2006 Garuda "entered into arrangements or understandings" with other airlines intending to collude on fuel and security surcharges. A hearing has been set for Oct. 22 in Sydney.
EasyJet yesterday announced a proposal to close its Nottingham East Midlands base and reduce flying at London Luton by 20% as it shifts capacity "to more profitable airports" in continental Europe.
International Lease Finance Corp. Chairman Steven Udvar-Hazy told ATWOnline it is "premature to comment" on reports that he is preparing to leave the company he co-founded and later sold to American International Group in order to start a new leasing venture that may bid on some of ILFC's assets. The Wall Street Journal reported this week that Udvar-Hazy was in talks to buy part of ILFC and that a consortium consisting of Greenbriar Equity Group and Onex Partners was bidding on the company.
Embraer announced the delivery of the first of six 76-seat E-170s to British Airways. Aircraft will be operated by BA CityFlyer and is part of a December 2008 order that included five E-190s plus options ( ATWOnline, Dec. 23, 2008). The E-170 obtained steep approach certification in June 2007 to operate at London City. BA's first E-190 will arrive early next year.
Lufthansa Systems signed a five-year deal with Malaysia Airlines to provide its Lido RouteManual navigation charts. MAS eventually will introduce Lido eRouteManual.
Travelport GDS signed a content agreement with Zambezi Airlines providing Travelport GDS-connected travel agents worldwide with access to the carrier's fares and inventory. Airline operates two 737-500s.
Frontier Airlines said its bankruptcy reorganization plan was approved by an "overwhelming" majority of creditors and that the deadline for filing objections has passed. A confirmation hearing is scheduled for Sept. 10. President and CEO Sean Menke said the Denver-based carrier, acquired by Republic Airways Holdings, has "been able to completely restructure our business and reduce our costs to among the lowest in the industry." Its codeshare agreement with Midwest Airlines, also bought by Republic, went into effect Wednesday.
Honeywell Aerospace was selected by Hainan Airlines to provide 131-9A APUs for 13 A320s, with deliveries scheduled for 2010-12. Contract is valued at more than $11 million and covers maintenance through 2022.
Austrian Airline Group's acquisition by Lufthansa became official yesterday at a ceremony in Vienna as the German company took control of more than 90% of AAG's shares and insisted that the struggling carrier must become profitable as soon as possible.
United Airlines flew 11.03 billion consolidated RPMs in August, down 3.3% year-over-year, against a 6.2% cut in capacity to 12.8 billion ASMs. Load factor improved 2.5 points 86.1%. US Airways Group said August mainline and regional passenger RASM fell approximately 15% year-over-year and total RASM dropped 13%. Group airlines flew 5.69 billion consolidated RPMs, down 3.9%, against a 3.9% cut in capacity to 6.69 billion ASMs. Load factor fell 0.1 point to 85%.
