Bombardier Aerospace's EBIT soared 62.8% to $896 million for its fiscal year ended Jan. 31 from $563 million in the prior fiscal year on a 3.1% rise in annual revenues to $10 billion. However, the improvement was overshadowed by an announcement yesterday that the company "is revising downward all of its business and regional jet production rates" and will cut approximately 3,000 jobs by year end. Of these, 1,831 will come from the ranks of unionized workers; 725 contract workers and 444 nonunion and management employees also will be laid off.
Atlantic Southeast Airlines expected to return to service by late yesterday all 60 CRJ200s grounded for safety inspections, a spokesperson told ATWOnline. ASA, which operates as a Delta Connection carrier, voluntarily pulled the 50-seat aircraft on Tuesday after an internal audit raised questions about whether engine maintenance was in compliance with manufacturer recommendations ( ATWOnline, April 2).
Continental Airlines provided further evidence of the collapse in US air travel demand, reporting late Wednesday that March consolidated revenue per ASM plunged an estimated 19.5%-20.5% year-over-year while mainline unit revenue fell 18.5%-19.5%. In February, consolidated unit revenue was down 11.5% and mainline dropped 10%. CO flew 7.48 consolidated RPMs in March, down 9.7%, against a 6.4% fall in capacity to 9.43 billion ASMs. Load factor was down 2.9 points to 79.4% and passenger numbers declined 10.2% to 5.5 million.
First two Sukhoi Superjet 100s have been flown to the MM Gromov Flight Research Institute outside Moscow for flight certification testing ( ATWOnline, March 5). "The stability and control testing show good results," Sukhoi Civil Aircraft President Viktor Subbotin said. "The overall test program, including static tests at the Central Aerohydrodynamics Institute, eliminated redesign risks."
US Airways and Qatar Airways announced a codeshare agreement covering QR flights between Doha and London Gatwick, Madrid, Manchester, Milan Malpensa, Stockholm Arlanda, Zurich and Athens, Dubai and Kuwait City. QR will place its code on US flights from LGW, London Heathrow, Frankfurt, MAD, MAN, MXP, ARN, ZRH, Paris Charles de Gaulle, Munich, Rome Fiumicino and ATH. Deal is subject to government approvals.
Aircraft Leasing and Management arranged the sale of one BAe 146-300 to Star Peru on behalf of Flybe, which has replaced its 146 fleet with E-195s. ALM is remarketing the remainder of the Flybe 146 fleet.
US airlines may be able to return to profit this year despite the recession owning to fortuitous decisions made in the first half of last year in response to high oil prices, according to AirTran Airways CFO Arne Haak and United Airlines Senior VP-Planning Kevin Knight.
Spring Airlines expects to nearly double its net profit to CNY40 million ($5.8 million) this year and is planning a rapid fleet expansion despite shrinking domestic demand and the global economic downturn. Launched in July 2005, Spring is one of the most profitable privately run carriers in China and reported net earnings of CNY21 million last year. It maintained a load factor of 95% as it established travel agencies to attract passengers.
Air Arabia plans to launch its Casablanca-based subsidiary by late April or early May and hopes to be operating some 25 aircraft to at least 60 destinations in Europe and Africa within five years, CEO Adel Ali told reporters in comments cited by Reuters ( ATWOnline, Nov. 13, 2008). Separately, the LCC said that Airbus ranked it first on its list of airlines with the highest A320 operational reliability in 2008 at 99.8%. Air Arabia currently operates 16 A320s and plans to add two more this year.
Qatar Airways CEO Akbar Al Baker told Abu Dhabi's The National yesterday that the carrier will announce an aircraft order at the upcoming Paris Air Show. He also said QR is targeting 20% year-over-year passenger growth to 14.4 million, according to Reuters ( ATWOnline, March 13).
Industry representatives at the fourth Aviation & Environment Conference in Geneva committed to playing their role in mitigating climate change and urged ICAO "to redouble its efforts" to present a unified, global emissions reduction policy at December's UN climate summit in Copenhagen.
SR Technics Group yesterday confirmed that it intends to close its line maintenance base at Dublin ( ATWOnline, Feb. 13), which employs 1,135. Six hundred will be laid off Friday, with a further 100 made redundant later in the month. "All remaining activities are expected to be wound down or transferred to other providers" by Aug. 31, SRT said.
UAE General Civil Aviation Authority signed an air services MOU with the Iraqi Civil Aviation Authority permitting 15 weekly scheduled passenger flights and four weekly cargo frequencies between Abu Dhabi and Iraq, 21 weekly passenger and four weekly cargo flights to/from Dubai, eight passenger and four cargo flights to/from Sharjah and three passenger flights to/from Ras Al Khaimah, according to the Arab Air Carriers Org.
Transaero launched daily Moscow Domodedovo-Kazan service aboard a 737. Finnair will operate twice-weekly Helsinki-Krakow service April 2-Oct. 4 aboard an A319.
SkyTeam will introduce a centralized managing entity based in Amsterdam that will handle marketing, sales, airport synergies and transfer product, cargo, advertising and branding, alliance operations, finance, corporate communications and administration. It will be headed by MD Marie-Joseph Male, an Air France executive, and will be in place before year end. "In SkyTeam, we have always prided ourselves on our collaborative nature.
Atlantic Southeast Airlines, a SkyWest Inc. subsidiary operating as a Delta Connection partner, grounded 60 CRJ200s late Tuesday for engine safety inspections. ASA officials expected to complete the inspections early today. The grounding of the 50-seat aircraft was voluntary after an internal paperwork audit raised questions about whether maintenance was in compliance with manufacturer recommendations. The CRJ200 is powered by the GE CF34. "We are rolling through the inspections and expect them to be completed by mid-morning [Thursday]," an ASA spokesperson told ATWOnline.
Embraer launched steep approach testing at London City for the E-190. Certification is expected by year end. The E-170 received certification to operate into LCY in 2007. Last December British Airways signed an order six 170s and five 190s to be operated by its BA CityFlyer subsidiary ( ATWOnline, Dec. 23, 2008).
IATA said all 224 member airlines now are listed on the IOSA registry. "This is a great achievement and an important mark of quality for all IATA airlines. This in turn is a reassurance for travelers everywhere of aviation's serious commitment to safety," DG and CEO Giovanni Bisignani said. The IOSA registry now comprises 308 carriers. Qatar Airways was the first airline to pass its IOSA audit in September 2003. Eight airlines resigned at the end of 2008 and another was expelled on March 31 for not meeting the registration deadline.
Boeing Commercial Airplanes President and CEO Scott Carson said "progress has been too slow" in modernizing US ATC and argued that with "minimal investment" FAA could increase system efficiency in the near term.
UK Secretary of State for Transport Geoff Hoon appointed Deirdre Hutton as CAA chair. The first woman named to the post, Hutton will take up the position in August when Roy McNulty's term comes to an end after eight years. She currently chairs the Food Standards Agency and will sit for five years. Hoon also will appoint a CEO.
Calin Rovinescu's appointment as president and CEO of Air Canada, succeeding Montie Brewer, who resigned Monday, drew a rebuke from CAW President Ken Lewenza, who called Rovinescu "a disturbing choice." CAW represents more than 5,000 customer service and sales workers at the airline. Rovinescu served as executive VP-corporate development and strategy at AC between 2000 and 2004 and was a key figure in the carrier's 18-month bankruptcy reorganization as chief restructuring officer. He has been involved with Canadian commercial aviation for more than two decades.
CAE said it signed contracts for three full flight simulators in March valued at C$33 million. Customers are Avianca, Sofia Flight Training (both CAE 5000 Series A320 FFSs) and Emirates-CAE Flight Training (CAE 7000 Series A320 FFS). It also announced the termination of a 757 FFS sale to Flight Training Finance and the ensuing sale of the equipment to an unidentified customer. CAE sold 34 simulators in its fiscal year ended March 31.
BAA said it has not decided on its next step following a final ruling in March by the UK Competition Commission requiring it to sell both London Gatwick and Stansted and either Edinburgh or Glasgow International. "We are still considering the Competition Commission's Final Report and are keeping all options open," BAA spokesperson Stuart Butchers told ATW.
