BAE Systems Asset Management announced the sale of one BAe 146-100 and three ATPs to Miami-based lessor Regional One. The three ATPs are on operating lease with SATA Air Acores.
Qantas A330 flying from Hong Kong to Perth Sunday night encountered "severe turbulence" that resulted in the hospitalization of six passengers and one crewmember with "minor injuries," the airline confirmed. All were soon released. "The aircraft most likely encountered what is known as convective turbulence, which led to it rapidly gaining around 800 ft.
Virgin Atlantic Airways and AerCap yesterday announced a deal that will see 10 A330-300s join the fleet in 2011-12 as the carrier moves to fill the gap caused by the delayed introduction of its 15 787-9s, now scheduled to begin arriving in 2013.
British Airways will press ahead with the launch of its new business class-only service between London City and New York JFK, setting Sept. 29 as the date of the first flight. There will be a daily return service except Saturdays when LCY is closed, and flights will increase to twice-daily from mid-October. Tickets go on sale today. "In the harshest trading environment airlines have experienced, we believe it is more important than ever to embrace the future and innovate. That is what this historic new route is all about," CEO Willie Walsh said.
Lufthansa took significant steps toward its acquisition of both bmi and Brussels Airlines yesterday, resolving a financial dispute with the former and receiving European Commission approval for the latter. LH announced an out-of-court settlement with the UK company regarding its purchase of Chairman Michael Bishop's 50%-plus-one-share stake, a transaction placed in jeopardy last month when Bishop took LH to court over the German company's demand for a recapitalization ( ATWOnline, May 22).
Austrian Airlines Group flew 1.38 billion RPKs in May, down 18.8% year-over-year, against a 13.9% fall in capacity to 1.95 billion ASKs. Load factor slipped 4.2 points to 70.8%. Norwegian said May unit revenue fell 2% year-over-year to NOK0.46 (7.17 cents) while yield was steady at NOK0.59. It flew 909 million RPKs during the month, up 19%, against a 21% increase in ASKs to 1.18 billion. Load factor fell 2 points to 77%.
The Japanese government is preparing to extend a loan of approximately ¥100 billion ($1.04 billion) to Japan Airlines, Finance Minister Kaoru Yosano said. Speaking to reporters yesterday, Yosano said he received a request from Transport Minister Kazuyoshi Kaneko for the loan through the Development Bank of Japan. "We hope to cooperate through DBJ loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said.
European Cockpit Assn. and US Air Line Pilots Assn. warned they will "not be in a position to support" any further negotiations on a second-stage open skies agreement between the EU and US if their bargaining rights are not "rebalanced." The statement coincides with a new round of negotiations starting this week.
Air India announced the formation of a four-member committee that will examine its labor agreements and identify INR5 billion ($102 million) in annual savings. AI said employee costs currently exceed INR30 billion per year. "Besides reduction in wage cost[s], Air India is also looking at improving productivity of employees, elimination of restrictive work practices and reducing wasteful expenditure," it said. The committee will issue its report by July 15.
Airbus CEO Tom Enders and Airbus China President Laurence Barron told ATWOnline yesterday in Tianjin that the financial commitment involved in establishing the manufacturer's new final assembly line is taking a back seat to its effort "to build a Chinese identity for Airbus."
Joy Air, the joint venture launched by AVIC and China Eastern Airlines in the spring of 2008, will begin operations next month following the arrival of two MA60s Sunday. The Xi'an-based carrier signed a contract for 13 MA60s at last November's Zhuhai Air Show and plans to acquire 50 of the type, plus 50 ARJ21s, within the next eight years ( ATWOnline, April 27).
US Airways will launch daily Charlotte-Honolulu service Dec. 17 aboard a 767. Alaska Airlines will launch daily San Jose-Austin service on Sept. 2 aboard a two-class 737-800.
Iberia Maintenance signed a three-year engine MRO agreement with Russia's Yakutia Airlines covering two Rolls-Royce RB211-535-E4s and a contract with India's Blue Dart Aviation for MRO on three RB211-535-C37s powering its 757-200 freighters.
The Argentine government outlined its plans to "modernize" newly nationalized Aerolineas Argentinas and Austral Lineas Aereas in a statement released Friday and indicated its commitment to a long-haul Airbus order. The airlines were brought under state control six months ago ( ATWOnline, Dec. 22, 2008). AR recently took delivery of a new 737-700, the first new aircraft purchased for the carrier in 16 years. A second will arrive before July and nine "similar aircraft" will be added on lease this year.
University of Queensland students won Airbus's inaugural "Fly Your Ideas" challenge at last week's Paris Air Show for a project looking into the use of the castor plant to develop the first single-plant-based composite material for aircraft cabin components. Project's goal was to reduce dependency on nonrenewable sources and improve end-of-life disposal. A feasibility analysis entailing fiber production and testing was conducted that demonstrated "encouraging mechanical and environmental properties," Airbus said. The three students won a €30,000 prize.
Airbus announced aircraft MOUs with Turkish Airlines and Paramount Airways Friday, concluding a reasonably successful Paris Air Show week with firm orders for 58 aircraft worth nearly $6.4 billion and MOUs for an additional 69 planes worth $6.5 billion. THY signed its MOU for five A330-300s and two A330-200s (increased takeoff weight version) for delivery starting in August 2010. Its Airbus fleet currently comprises 46 A320 family aircraft, five A310s, seven A330s and nine A340s. It said its commitment also includes three options.
Aegean Airlines will launch daily Athens-Istanbul Ataturk on Sept. 9 aboard an A320. JetBlue Airways launched thrice-weekly Boston-Santo Domingo service aboard an A320. Flights will be daily during the winter season. Qatar Airways will start four-times-weekly flights from Doha to Amritsar (Oct. 11) and Goa (Oct. 25). Thrice-weekly service to Melbourne begins Dec. 6, becoming daily early next year. Flydubai will launch service to Aleppo, its fifth destination, on July 13, after taking delivery of a third 737-800.
Boeing is expected to start slow-speed taxi tests of its first 787 on June 25, according to factory insiders. There had been some suggestions that the first fight would be around that date but the company now may opt for the morning of June 27 or 28. The second 787, ZA002, already is in ANA livery, has started its APU and is expected to be in the air shortly after ZA001.
Lufthansa's forecast of a "distinctly positive" full-year operating profit is in jeopardy, it said Friday, and it now is focused on "avert[ing] an operating loss in the current financial year." Chairman and CEO Wolfgang Mayrhuber told ATWOnline two weeks ago that the company expected a 10% drop in passengers and a 20% fall in revenue this year ( ATWOnline, June 10). It reported a €256 million first-quarter net loss and a €44 million deficit on the operating level.
Assn. of European Airlines released winter schedule (November-March) performance data indicating a slight improvement in baggage handling to 13 missing pieces per 1,000 passengers compared to 15.5 in the 2007-08 winter. Passenger numbers fell 6% year-over-year and flights dropped 9%, AEA noted. Of the 26 members reporting baggage data, Turkish Airlines performed the best at 4.5 missing bags per 1,000 passengers, followed by Air Malta (4.6) and Virgin Atlantic Airways (4.9). Iberia fared worst at 19.2, followed by Air France (18.9) and TAP Portugal (17.3).
Qatar Airways allegedly is considering plans to cancel the entirety of its Boeing order owing to repeated 787 delays, according to Dow Jones. It has orders for 60 787s including options and 24 777s including freighters and options. "The writing is in the wall for Boeing and they don't care. They're too busy having lunches and dinners," CEO Akbar Al Baker told the news service, adding that QR's issues have "gone way beyond" compensation. "Boeing doesn't realize how much they're hurting their customers' plans.
Air France KLM last week launched a convertible bond issue for pricing on June 23 designed to raise €575-€661 million ($801.8-$921.7 million), which it will use to fund fleet expansion and extend debt maturity. AF already has an outstanding €450 million convertible bond issue that matures in 2020. Citi recently indicated in an investment research report seen by ATWOnline that Europe's three largest flag carriers may have to raise new capital over the next 1-2 years due to heavy capital expenditure commitments and poor operating cash flow in the near term.
AeroLogic, the joint venture between DHL Express and Lufthansa Cargo, officially launched operations Friday. The first of eight 777-200Fs was delivered last month and it plans to operate four of the type by year end. It said it expects 5% annual growth over the medium term on routes between Europe and Asia. Maiden commercial flight is scheduled for June 29 on a Leipzig-Bahrain-New Delhi-Singapore routing, to be followed by a Leipzig-Tashkent-Hong Kong flight.
Air France Industries KLM Engineering & Maintenance and AirAsia X signed a contract covering component support for its fleet of A330-300s. The Malaysian carrier ordered 25 of the type and has taken delivery of two. The remainder will enter service between now and 2013.
Austrian Airlines offered to reduce the size of its fleet in order to win approval from the European Commission for its acquisition by Lufthansa ( ATWOnline, June 12), state holding company OIAG CEO Peter Michaelis told Format magazine. In comments cited by Reuters, Michaelis said LH also offered to cut frequencies. "In [Austrian's] case, [the offer] is about the demand to cut AUA in size because of the state aid. In Lufthansa's case, [the offer] is about the antitrust conditions," he said.
