With all the rhetoric about transforming ATC, equipping aircraft with ADS-B technology and reaching long-term goals (FAA says "a large percentage" of NextGen's benefits will be available in 2018 and the system should be fully in place by 2025), what sometimes gets lost is the main purpose for moving to a more modern system: Reducing day-to-day flight delays and cancellations. Some observers are worried that the agency is so focused on long-term NextGen planning that it is paying too little attention to measures it could take in the near term to improve system efficiency.
Air France KLM, British Airways, Cathay Pacific Airways, Virgin Atlantic Airways and UK airports operator BAA last month announced the formation of the Aviation Global Deal Group, which expressed its support for inclusion of CO2 emissions in a "new global climate deal" scheduled to be discussed at December's UN climate summit in Copenhagen.
The good times didn't last long. Following the comeback of 2007--a year in which the US's 10 largest airlines all were in the black after years of bankruptcies and red ink--2008 proved to be among the most humbling ever for the world's largest air transport market. Carriers were hit hard by soaring fuel costs in the first half, and then hit hard again when oil prices plummeted in the second half of the year to well below airlines' hedging positions. Heavy noncash goodwill impairment charges also weighed down bottom lines.
IN THE 1950S, UNITED AIRLINES AND MANY other carriers proudly proclaimed in major advertising campaigns that their aircraft were fitted with revolutionary weather radar that would eliminate nasty weather surprises, but last year turbulence-related injuries cost the industry $100 million. According to US FAA,turbulence is the leading cause of injuries to passengers and crew in nonfatal airline events. Between 1981 and 1997 there were 342 reports of turbulence affecting major carriers, resulting in three passenger deaths and 80 serious injuries.
Air New Zealand said its foreign exchange hedging program limited the effects of fluctuating fuel prices and the economic downturn as it remained profitable in the fiscal first half ended Dec. 31, reporting a NZ$24 million ($12.3 million) net that was 79% lower than the year-ago result.
Malaysia Airlines reported a MYR245.7 million ($67 million) profit in 2008, a 69.7% decrease from the MYR852.7 million earned in 2007 but a result that MD Idris Jala called "solid" and evidence "that if we set our minds to do the impossible, we can do it."
Shanghai Airlines is expected to receive a CNY1 billion ($146 million) capital injection through the issuance of a nonpublic stock offering to Jinjiang International Holding, its third-largest stakeholder. The move is designed to reduce SAL's debt ratio and relieve some pressure as its financial situation worsens ( ATWOnline, Feb. 6). The carrier said its debt ratio will fall 5.9 points to 85.5% as a result. Last month it warned that its 2008 loss may be double the CNY435 million reported in 2007.
US Dept. of Transportation said its proposed FY10 budget includes $800 million for the Next Generation Air Transportation System and a $55 million increase in subsidies for air service to small communities.
Alaska Airlines yesterday launched a 60-day customer trial of inflight Wi-Fi service in conjunction with Row 44, allowing passengers aboard a 737-700 to use wireless Internet service on their own laptops or other devices. Service initially will be free. "After a successful trial period, the airline will determine the schedule for rolling out the commercial availability of its wireless Internet service to its entire fleet of aircraft," it said.
US National Mediation Board terminated the Aircraft Mechanics Fraternal Assn.'s representation of former Northwest Airlines technical employees, Delta TechOps President Tony Charaf announced yesterday. TechOps will continue to integrate former NWA employees and will bring them up to DL pay scales and premiums at the next pay period. They will be eligible for profit-sharing and rewards programs this year and will shift to DL's benefits programs in January 2010.
Korean Air board has decided to order an additional six A330s. Two aircraft will be delivered next year, followed by two in 2011 and two in 2013. KE currently operates three A330-200s and 16 A330-300s.
United Airlines will begin accepting credit and debit cards for onboard purchases on all flights on March 23 and said it will move to a cashless cabin on domestic and North/Central American flights "after a brief transition period."
Estonian Air will conduct a €7.3 million ($9.4 million) rights issue, according to SAS Group, which holds a 49% stake in the company. SAS said it will participate through the conversion of €2.4 million of outstanding loans to Estonian into equity and an additional €1.2 million cash payment. The Estonian government (34%) and AS Cresco (17%) also will subscribe to their respective proportion of shares. SAS said it still plans to divest its interest in Estonian ( ATWOnline, Feb. 4).
Sabre Travel Network added United Airlines "economy plus" tickets to its MySabre and Turbo Sabre travel agency tools, allowing the purchase of such seats through its standard GDS desktop application.
Turkish Airlines defended the maintenance record of the 737-800 that crashed on approach to Amsterdam Schiphol on Feb. 25, while Dutch investigators focused on whether the aircraft's sudden drop into a field suggested possible engine trouble. THY said in a statement that the aircraft underwent a C check on Oct. 22, an A check on Feb. 19 and was taken out of service briefly on Feb. 23 when "the pilot reported a malfunction of the Master Caution Light. . .and the part was replaced."
Ryanair said Ireland's minister of finance repealed the €10 "tourist tax" at "small and peripheral airports" like Donegal and Sligo but left it in place at Dublin and Shannon. The LCC this month announced cuts in its service at both airports ( ATWOnline, Feb. 13).
Global Aero Logistics, parent of North American Airlines and World Airways, changed its name to Global Aviation Holdings. "We are focused on growing our commercial cargo and passenger business, and the new name and identity will better represent the leading role we play in the charter aviation transport industry," CEO Rob Binns said. NAA operates passenger charters aboard 757-200ER and 767-300ER aircraft while World flies both passenger and cargo charters aboard 747-400s, DC10-30s and MD-11s.
Frontier Airlines Holdings, which is operating under bankruptcy protection, said it posted a $27.9 million net loss in January and a $2.8 million operating profit. Net result would have been a $2.8 million loss excluding reorganization items and mark-to-market fuel hedge transactions. January reorganization costs reached $28.3 million. Mainline unit revenue rose 4.4% year-over-year while unit cost fell 20.1%. President and CEO Sean Menke said the company is "now focused on securing the necessary financing to facilitate our emergence from bankruptcy later this year."
A Turkish Airlines 737-800 carrying 127 passengers and seven crew en route from Istanbul Ataturk to Amsterdam Schiphol crashed into a field while on final approach a few hundred m. short of the runway threshold yesterday, killing at least nine people including the cockpit crew and a third pilot who may have been in training.
Atlas Air and Polar Air Cargo dispatchers voted unanimously to join the International Brotherhood of Teamsters, the union announced. Atlas and Polar pilots elected to join IBT in December ( ATWOnline, Dec. 23, 2008).
Australia's SkyAirWorld suspended all operations, according to a statement cited by ABC News in which CEO David Charlton said the Brisbane-based carrier is committed to restructuring in the coming weeks and still plans to launch E-190 flights from Perth to Christmas Island and Cocos-Keeling Islands in April. SkyAirWorld also operates ERJ-145s and E-170s.
Austrian Airlines flew 1.16 billion RPKs in January, down 12.2% from the year-ago month. Capacity dropped 6.5% to 1.78 billion ASKs, lowering load factor 4.3 points to 65.4%.
