Chinese airlines adopted a new pricing standard that effectively will raise fares by approximately 10%. On April 20, carriers began offering discounts on the base price of the ticket only versus the previous practice of discounting on the full rate comprising the base and floating prices. The new standard has upset many travelers in China, although many discounted fares remain available on airlines' websites.
Aeroflot Cargo said it successfully migrated to a new reservation and accounting system, CargoSpot, that will give it full control over sales and revenue management by integrating all internal business processes into one system.
Boeing's 787 customers face delivery delays of up to an additional six months, according to a report issued Friday by New York-based Bernstein Research that also suggest a 10%-15% range shortfall for early delivery aircraft.
National Air Traffic Controllers Assn. President Patrick Forrey said he welcomed former FAA Administrator Jane Garvey's role in helping to oversee mediation of the union's contract talks with the regulator ( ATWOnline, May 1), calling it a "bold step. . .that will guide a positive way forward in which aviation safety professionals will be included as valued stakeholders."
EasyJet announced that Group Finance Director Jeff Carr will leave the company and Mandala Airlines CEO Warwick Brady will join the LCC as procurement director Wednesday.
Finnair's second A330-200 entered service Friday on a Helsinki-Delhi flight. Aircraft also will operate to New York JFK. Three more A330s are scheduled to arrive this year, including one this month.
American Airlines launched daily Dallas/Fort Worth-Madrid service Friday aboard a 225-seat 767-300. It also started a third daily Boston-London Heathrow frequency and restarted daily seasonal BOS-Paris Charles de Gaulle flights. Continental Airlines launched a seasonal daily Cleveland-London Heathrow service scheduled to operate through Sept. 26 aboard a 757.
AHS Aviation Handling Services is taking over Swissport's passenger ground handling activities at all German stations. Agreement excludes Swissport Cargo Services.
First-quarter 2009 global airline industry losses in aggregate have totaled $1 billion so far, in line with expected full-year losses of $4.7 billion, IATA said in a "Financial Monitor" released Friday, noting that "airfreight appears to have bottomed out but passenger travel continues to shrink, particularly premium."
Swine flu fears continue to affect the industry, with Continental Airlines cutting capacity on service to Mexico by 50% starting today, France calling for the EU to restrict flights to Mexico, United Airlines acknowledging a worker contracted the disease and Southwest Airlines admitting that bookings last week were "erratic" owing to fears that the flu could be spread in aircraft cabins ( ATWOnline, May 1).
CSA Czech Airlines reached agreements with seven of nine unions to reduce salaries to last year's levels, which will save the carrier approximately CZK250 million ($12.4 million) this year. CSA said it "initiated redundancies" targeting 28 positions held by employees represented by the Trade Union of Aviation Mechanics, with which there was no agreement on pay cuts that will bring about the necessary 5% reduction in costs. Negotiations with the CZALPA pilots union are continuing.
Innova Aviation Consulting and InterVISTAS announced their merger, creating the InterVistas Consulting Group, which will operate companies in the US, Canada and Europe.
International Aero Engines, the consortium led by Pratt & Whitney and Rolls-Royce that builds the V2500 engine for the A320 family, expects to produce nearly as many engines this year as it did in 2008, although CEO Jon Beatty said he would not be surprised if both Airbus and Boeing "have some rate rationalization" in 2010.
BAA parent Grupo Ferrovial received three bids for London Gatwick, MD Inigo Meiras told reporters last week. According to Reuters, London City owners Global Infrastructure Partners confirmed its participation.
GREAT SUCCESS STORIES IN AVIATION ARE a rarity even in good times, and noteworthy accomplishments are even less likely when an airline has had to rise from the ashes of a fallen parent. Sydney-based Regional Express, known as Rex to locals, has done all this and more and remains profitable in the worst economic downturn in at least four decades.
CFM International, the GE Aviation/Snecma joint venture, is beginning testing on its first demonstration LEAP-X engine core as it aggressively develops a powerplant for a potential next-generation narrowbody entering service by 2018 ( ATWOnline, May 15). The LEAP-X does not feature an open rotor design, but GE and Snecma nevertheless are engaged actively in testing the technology first conceived in the 1980s.
TO SAY THAT THE PAST YEAR HAS BEEN A challenge for the US regional airline industry understates the case for a group of carriers buffeted by financial losses, capacity reductions imposed by mainline partners and efforts by those partners to restructure longstanding contracts. SkyWest Inc. Executive VP and CFO Brad Rich could have been speaking for the entire industry when he said, "This is the most challenging time we've faced in the 21 years I've been at SkyWest."
United Airlines launched a carbon offset program that complements its existing efforts to reduce its impact on the environment. Its environmental initiatives include fleet enhancements, an EcoPower engine wash system and alternative-fuel ground support equipment vehicles. Last year it was the only US airline to participate in the environmental program ASPIRE, using 11 fuel-savings initiatives in a single transpacific flight to save more than 32,000 lb. of carbon emissions.
Eight months after equal measures of recklessness, stupidity, greed, market ignorance and political meddling resulted in an economic meltdown that has led to a trillion dollars in taxpayer bailouts, the highest US jobless rate in 30 years and the loss of billions of dollars of retirement savings, it's comforting to know that some politicians in Washington are firmly focused on writing new regulations to protect consumers from . . . the airline industry.
The guilty verdict and a two-year jail sentence handed down in early April to Capt. Marwoto Komar, the pilot-in-command of Garuda Flight GA200, a 737-400 that crashed at Yogyakarta, Indonesia, on March 7, 2007, killing 21, has become the case du jour in the continuing debate regarding criminal action against flight crews involved in airline accidents.
HE GLOBAL ECONOMIC DOWNTURN IS TAKING A TOLL on all sectors of the commercial aviation business and regional aircraft sales are no exception. While manufacturers of regional jets and turboprops continue to speak confidently about the long-term market prospects for their products, there is no sugarcoating the near-term pain. Both Embraer and Bombardier have announced major workforce cutbacks and are hunkering down to ride out the financial storm.
MOSCOW'S DOMODEDOVO International has been growing at a dazzling speed and last year had the honor of reporting the largest percentage increase in passengers among Europe's 40 largest airports. Throughput reached 20.4 million, up 9% over 2007, following a robust 22% hike in 2007 and a healthy 10.1% growth in 2006. This compares with an overall decrease in passengers at European airports of 0.2% in 2008 and increases of 6.5% in 2007 and 6% in 2006, according to data from Airports Council International-Europe.
The rate of decline in global passenger traffic slowed in March compared to February, according to Airports Council International. But the organization warned that the swine flu outbreak could affect trends going forward as people cancel travel plans and authorities try to contain the outbreak. Airports handled a total of 250.8 million passengers in March, down 8.3% compared to the year-ago period but an improvement over the 10.3% year-to-year decline recorded for February passenger traffic.
