British Airways and cabin staff represented by Unite sparred over the carrier's proposed cost-cutting measures last week, with the union proposing Friday a "major package of negotiated efficiencies, temporary cost savings and deferred payments worth millions over the next two years."
Canada and Japan announced an expanded air services agreement that will grant Canadian airlines unlimited access to cities outside Tokyo and offers access to Haneda "under certain conditions," Transport Canada said.
Boeing yesterday stopped short of announcing the deep production cut anticipated by some but said that monthly 777 production will decrease to five aircraft from seven beginning in June 2010 and that previous plans to increase 747-8 and 767 production have been suspended.
Asiana Airlines, Cargolux Airlines International and Nippon Cargo Airlines yesterday became the latest carriers to reach an agreement with the US Dept. of Justice to plead guilty to conspiring to fix air cargo prices and will pay criminal fines totaling $214 million. Asiana, which agreed to pay a $50 million fine, also will plead guilty to "carrying out [an] air passenger price-fixing conspiracy," according to DOJ. Cargolux will pay a $119 million fine and NCA will pay a $45 million penalty.
Swiss Aviation Training started training pilot crews from Air Dolomiti and Augsburg Airways on its E-190/195 full flight simulator at Lufthansa Flight Training's Munich facility that opened two weeks ago. The Swiss subsidiary said commissions to date ensure that the new simulator will be at least 80% utilized this year with crews from Dolomiti, Augsburg, Flybaboo and Alitalia its principal users.
TUIfly was hit by a wildcat strike yesterday at Hamburg, Hanover and Dusseldorf. Forty flights and 6,000 passengers suffered delays of up to 5 hr. as some 190 employees stopped working, although no flights were cancelled. The ver.di union called the strike and is seeking a 5% pay increase for its members. TUIfly staff has been concerned over job security since the announcement of the carrier's alliance with Air Berlin, which will begin operating 17 TUIfly 737s on scheduled routes ( ATWOnline, March 31).
Fraport Cargo Services yesterday resumed handling for Turkish Airlines at Frankfurt following a six-month gap. FCS MD Winfried Hartmann said the company was "able to restart negotiations under different conditions and could offer [THY] a new service package." The airline will operate passenger service between FRA and six Turkish cities during the summer schedule as well as a four-times-weekly A310 freighter service to Istanbul Ataturk.
Air Tahiti yesterday took delivery a 66-seat ATR 72-500. It now operates three ATR 42-500s and seven 72-500s. It also is one of the launch customers for ATR's new -600 series with an order for three 42-600s and two 72-600s scheduled to start delivery in the spring of 2011 ( ATWOnline, Oct. 3, 2007).
US Dept. of Transportation said airlines cancelled 1.2% of their scheduled domestic flights in February, down from 3.6% in the year-ago month. American Airlines and ExpressJet Airlines had the highest rate of cancellations at 2.2%, while Hawaiian Airlines (0.1%), Frontier Airlines (0.2%) and Northwest Airlines (0.6%) had the lowest. The 19 reporting carriers had an ontime rate of 82.6% in February compared to the 68.6% reported in the year-ago month.
British Airways CEO Willie Walsh told reporters that "BA and Iberia know each other very well, so I don't feel under any calendar pressure" to conclude a merger agreement, according to widespread press reports. BA said one month ago that further details about the potential combination were to be released in late March ( ATWOnline, March 6). Walsh also reiterated that BA shareholders "will not settle for less than 53% of the new group," which is in line with what IB shareholder Caja Madrid predicted in February.
Rex Regional Express announced the sale of two Saab 340As to SprintAir of Poland. Rex is phasing out its 340As as it introduces 25 340Bs. It has one 340A remaining and expects to have offloaded it by year end.
Allegiant Air said it will end Wilmington, N.C.-Tampa service on May 17 and Bellingham-Reno service on May 29 "due to lack of market demand." It will launch twice-weekly Columbia-Fort Lauderdale flights on May 27. AirTran Airways will operate seasonal service from Atlanta to Portland, Maine, and Harrisburg June 11-Sept. 8 aboard 717-200s. Jet Airways will launch daily Chennai-Dubai service and a second daily Mumbai-Dubai flight on April 23 aboard 737-800s. Both Jet and JetLite have started operating daily New Delhi-Srinagar service.
United Airlines said it will complete its transition to a cashless cabin on its North American flights, except for United Express operations, on April 20. It began accepting credit cards for onboard purchases on March 23.
An Aviastar BAe 146-300 en route to Wamena from Jayapura crashed into a mountainside on approach yesterday morning, killing all six aboard. The aircraft reportedly was ferrying food and supplies and was not transporting passengers. According to Flight Safety Foundation's Aviation Safety Network, those onboard comprised a captain, copilot, engineer, loadmaster and two flight attendants.
Owing to a strong rebound in the domestic market and the continuing decrease in domestic fuel prices, Chinese carriers are expected to report a collective first-quarter profit, according to CAAC Minister Li Jiaxiang. Li noted that "favorable policies" implemented in December were effective in combating declining domestic demand and stimulating growth. Among those initiatives were the decision to withhold approval for new entrants until 2010 and the call for airlines to cancel or delay aircraft orders, as well as fee reductions and infrastructure improvements.
Turkish Airlines yesterday said it achieved a net profit of $874 million in 2008, which would represent a nearly fourfold increase from the $224 million reported in 2007, on increasing revenue and traffic.
LAN Airlines said it "recently" operated its first commercial flight with a blended winglet-equipped 767-300. It said it is investing nearly $70 million in equipping its entire -300 fleet, numbering 37 passenger and cargo aircraft, with winglets before year end.
Former LTU owner Hans Rudolf Woehrl said he is entertaining the idea of reacquiring the Air Berlin subsidiary, which AB CEO Joachim Hunold said last month is being considered for divestment ( ATWOnline, March 16). Speaking to Handelsblatt, Woerhl said airline acquisition "is part of our business, and we were always very successful there," Reuters reported.
Europe's principal airline associations (Assn. of European Airlines, European Low Fares Airline Assn., European Regions Airline Assn. and International Air Carriers Assn.) jointly submitted a package of recommended "relief" measures to the EC, including a ban on increases in ATM and airport charges above 2008 levels for two years, withdrawal of all taxes on aviation and shifting all security charges to national governments.
Atlantic Airways reported a 2008 net profit of DKK15.3 million ($2.7 million), down 35.7% from DKK23.8 million in 2007, as passenger numbers jumped 65% to 593,113. The Faroe Islands-based carrier, which marked its 20th year in 2008, saw revenue rise 1.5% to DKK546.8 million. It projected a "reduction in activity" in 2009 owing to the economic downturn.
Air France will take delivery of its 54th 777 Friday. The aircraft is the 777th 777 produced by Boeing and will be the first AF aircraft to feature its new livery ( ATWOnline, Feb. 13).
