AVIC last week completed the merger of its aircraft manufacturing subsidiaries and launched a new company in Xi'an that will be "mainly responsible for big [military] transport aircraft production and spare parts production for Chinese big commercial aircraft," AVIC President Lin Zuoming said ( ATWOnline, Sept. 29, 2008). The venture has registered capital of CNY12 billion ($1.75 billion), with AVIC the only shareholder. Other investors will be added next year.
A J Walter Aviation was awarded a seven-year power-by-the-hour contract to provide rotable component support for Czech Airlines' fleet of 33 Airbus aircraft from March 1. Agreement initially covers two A321s, eight A320s and seven A319s. The remaining 16 aircraft will join the program over the next seven years.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, reported 2008 net income of $63.7 million, down 51.9% from a $132.4 million profit in 2007, citing "a challenging year for global trade and airfreight," high first-half fuel prices and the "global recession" in the second half of the year.
A huge fourth-quarter loss related to the collapse of Iceland's banking and financial sector last fall dragged Icelandair Group to a ISK7.47 billion ($65.9 million) full-year deficit, reversed from a ISL257 million profit in 2007. Revenue soared 77.7% year-over-year to ISK112.74 billion owing largely to a more-than-threefold increase in aircraft and crew leasing revenue. Operating loss of ISK5.69 billion compared to a ISK2.34 billion profit in the prior year. Fuel costs nearly tripled.
Air Berlin said its executive directors and "top managers" will forego 50% of their bonus entitlements for 2008, or a combined €2 million ($2.6 million). AB will announce its full-year results on March 30 and said it expects to report an operating profit. It also announced the launch of flights from Berlin Tegel to Krakow (four-times-weekly beginning April 29) and Oslo Gardermoen (five-times-weekly on April 24).
Wizz Air opened its Timisoara base, its 10th overall, from which it is serving Rome Fiumicino, London Luton, Dortmund, Bergamo, Barcelona, Paris Beauvais, Valencia and Treviso. It also announced plans to base a second A320 in Prague from July, increasing frequencies on four current routes and launching flights to Naples, Madrid and Malmo. Air Arabia will launch thrice-weekly Sharjah-Athens service on April 21 aboard an A320. It is the LCC's first route to the EU.
Bmi said it will stop operating its four daily services between London Heathrow and Leeds Bradford and thrice-daily LHR-Durham Tees Valley flights on March 28, citing a combination of falling demand, increased costs imposed by BAA and the UK government's decision to increase the Air Passenger Duty. "The fact is that due in the main to BAA's inflation-busting increases and changes to its pricing structures have placed a considerable disadvantage on short-haul flights," bmi MD Peter Spencer said. Ryanair also has cited the APD as the reason for recent cutbacks in its UK service.
The Air New Zealand A320 that crashed into the Mediterranean Sea during a Nov. 27 test flight conducted by XL Airways pilots was in the midst of a low-speed test conducted on approach to Perpignan when the cockpit crew lost control, according to a preliminary report issued yesterday by French investigators that raised questions about the test's timing and recommended that EASA develop regulations for "acceptance" flights.
Air Astana transported 2.8 million passengers in 2008, up 8% from the prior year, on a 16% increase in capacity to 7.5 billion ASKs. Load factor was 64%. It took delivery of three A320s last year, raising its fleet to 21 (two 767s, four 757s, two A321s, seven A320s, one A319 and five F50s). It plans to operate 34 aircraft in 2014 and 63 by 2022. Air New Zealand said January yield was up 8.1% year-over-year. It flew 2.35 billion RPKs during the month, down 8.5%, against a 6.6% fall in capacity to 2.82 billion ASKs. Load factor dropped 1.7 points to 83.4%.
Iberia flew 3.83 billion RPKs in January, a 12% decline from the year-ago month. Capacity was down 8.1% to 5.17 billion ASKs and load factor dropped 3.3 points to 74%. Aer Lingus flew 1.01 billion RPKs in January, down 5.6% year-over-year. Capacity fell 6.1% to 1.56 billion ASKs and load factor rose 0.3 point to 64.3%. Norwegian estimated a 16% year-over-year increase in January yield to NOK0.64 (US9.4 cents). Norwegian.no flew 520 million RPKs, up 20%, against a 26% increase in capacity to 734 million ASKs. Load factor fell 3 points to 71%.
Finnair said the Finnish Airline Pilots Assn. rejected a settlement proposed by a state arbitrator but agreed to back off its threat to stage five one-day strikes ( ATWOnline, Jan. 27). An overtime ban will continue, allowing flights to operate "for the most part normally," the carrier said. Finnair said it would have accepted the arbitrator's settlement and that negotiations will continue.
Cyprus Airways said it will lease two A320s for six years. A spokesperson told Reuters that the deal is with an "Irish company" and that the aircraft will be delivered "by March or April." Several lessors, including AWAS, are headquartered in Ireland.
Indonesian prosecutors dropped the most serious charge against Garuda Indonesia Capt. Marwoto Komar but still are seeking a four-year prison term for negligence in the 737-400 accident at Yogyakarta that killed 21 in March 2007 ( ATWOnline, July 24, 2008). "As a senior pilot, the defendant was careless and caused an accident that led to a lot of casualties," Chief Prosecutor Mudim Aresto was quoted as saying. Komar is accused of ignoring 15 automated cockpit warnings and landing the aircraft at around 240 kt.
US Airways will return complimentary beverage service to the coach cabin on all mainline and US Airways Express flights beginning March 1. The airline has been charging for nonalcoholic beverages ($2 for soda/juice, $1 for coffee/tea) as part of its transition to a more a la carte business since last August ( ATWOnline, June 13, 2008).
Air France took delivery of its first 777F last week. AF, which placed the launch order for the new factory-built freighter in May 2005, progressively will replace its five 747-400ERFs and four 747-400BCFs with 777Fs. Based on the 777-200LR platform, the GE90-110B1L-powered 777F has an MTOW of 766,000 lb. (347,450 kg.). Range is 4,880 nm. (9,038 km.) with a full payload of 226,700 lb., according to Boeing. A total of 73 777Fs have been ordered by 12 customers.
Gulf Air signed an agreement to lease four 312-seat 777-300ERs from Jet Airways. Three aircraft will arrive next month and the fourth in May and will replace A340s. Gulf currently wet-leases two A300s from Jet.
Austrian LCC Niki was able to increase January passenger volume at its Vienna hub by 42.7% year-over-year, taking advantage of weakened Austrian Airlines Group. Against the current downturn, President Niki Lauda said Niki is targeting expansion. "We are not spending our time complaining about the crisis. . .People and companies are cutting expenses. With our low-cost tickets we are offering them just what they want, which enables us to keep growing," he said, adding that Niki is the only important airline at VIE planning a significant capacity increase.
GKN Aerospace said it completed "on schedule" production of the prototype composite spars for Airbus's A350 XWB wing box demonstrator. Under a work package announced last September, GKN has responsibility for development and supply of the composite spars and fixed trailing edge assemblies for the A350 wings.
CAAC plans to reduce every flight time by 3 min. and will control capacity increases for Chinese carriers in an effort to lift them out of their current financial difficulties. According to Vice Minister Wang Changshun, the 3-min. reduction can save airlines about CNY9 billion ($1.31 billion) annually. In addition, the regulator is committed to optimizing 36 air routes to shorten flight distance by a combined 2,800 km., which will cut costs further.
News from Travel Technology Update: Susan Black's assessment of the opportunities for travel start-ups to obtain outside investment is blunt: "It's dismal." Black, a travel industry veteran who serves as senior adviser for the industry at Chimney Rock Capital Partners, said venture capital and private equity firms that already have invested in travel start-ups are currently vetting their portfolios and "deciding who shall live and who shall die." The money hasn't completely dried up, but it most likely will go toward building on existing investments, Black said.
Royal Jordanian launched OnAir's inflight mobile service onboard A319 aircraft flying to Europe, the Middle East, North Africa and India. Technology allows passengers to use mobile phones and PDAs to make and receive calls and employ SMS and e-mail. Those with laptops fitted with GSM data cards can access the Internet.
Port Authority of New York and New Jersey approved $376.5 million for a runway project designed to help alleviate delays at New York JFK. Work is scheduled to begin in June and be completed in 2011. It will include reconstructing and widening runway 13-31 and revamped taxiways. Runway 13-31 is 14,572 ft. long and handles about one-third of JFK's annual operations, including more than half of all departures.
Virgin Blue Holdings blamed a one-off charge associated with establishment of its V Australia subsidiary and its fuel hedges for a net loss of A$101.4 million ($65.3 million) in the six months ended Dec. 31 compared to a A$113.3 million profit in the year-ago semester.
