Air Canada and Jazz Air said yesterday that they reached agreement on "new rates for controllable costs" to be paid by AC to Jazz as part of the capacity purchase accord under which the regional operates flights on behalf of the flag carrier. The rates, which were not disclosed, are retroactive to Jan. 1 and will extend to the end of 2011. Additionally, AC announced that it concluded a secured financing transaction valued at $37 million with Norddeutsche Landesbank Girozentrale that increases a previously announced facility for $78 million with Calyon New York Branch and NLG.
Austrian Airlines Group is facing massive challenges to liquidity, with COO Mepeter Malanik saying Friday, "Demand is collapsing and the outlook offers very little reason to be optimistic." He added, "We expect to see a reduction in revenue of up to 15% at the Austrian Airlines Group in 2009, equivalent to approximately €225 million ($294.4 million)." The announcement came a day after the dismissal/resignation of CEO Alfred Oetsch ( ATWOnline, Jan. 27)
Southwest Airlines announced a tentative five-year deal with the Southwest Airlines Pilot Assn. that will run through Aug. 31, 2011, if approved by the union's board and membership. SWA has been negotiating with the pilots since September 2006. According to a statement from the airline, the agreement "delivers raises and increased benefits" to its pilots. It is subject to approval by the SWAPA board after which it will be submitted to union membership for ratification. WN also announced that 2,500 mechanics represented by the Aircraft Mechanics Fraternal Assn.
Boeing resumed production on the fifth 787 flight test aircraft, ZA005, joining the fuselage and wings on Jan. 29 ( ATWOnline, Jan. 28). It is the first GEnx-powered 787. VP-787 Final Assembly and Change Incorporation Jack Jones said the join marked the company's "return to a steady production rhythm." Five of the six flight test aircraft now are in production, with first flight scheduled for the second quarter. Assemblies for 30 787s, including the sixth test aircraft, currently are in production.
EASA awarded type certification to the Tu-204-120CE, a dedicated cargo version of the aircraft powered by two RB211-535E4s. It also offers an "English-language cockpit" with operations documentation in English. The certificate is valid in the EU, Switzerland, Norway, Iceland and Liechtenstein, where the aircraft now can be registered and operated legally. It is the first EASA approval for a transport aircraft designed by an organization from Russia/CIS. EASA Executive Director Patrick Goudou said he was "confident it will serve as a model for future projects."
BAE Systems Regional Aircraft said its lease portfolio and support business remained strong in 2008 despite the increasingly difficult economic climate. "The Regional Aircraft team has performed well, winning significant new business across all sectors despite a worsening trading environment," MD Alan Fraser said. Last year 75 aircraft were placed through new leases, extensions and sales. There were 41 separate BAe 146/Avro RJ transactions in 2008. BAE ended production of its line of regional jets in November 2001 but has remarketed aircraft and support services actively since then.
A ¥12.6 billion ($140 million) loss in its third fiscal quarter ended Dec. 31, reversed from a ¥12.4 billion profit in the year-ago period, combined with "the likelihood of the situation worsening in the foreseeable future," led ANA to predict its first full-year deficit since 2002-03.
JetBlue Airways will fly to Los Angeles International beginning June 17, more than a year after it suspended plans to serve the airport as fuel prices soared ( ATWOnline, May 7, 2008). It will fly twice-daily to both New York JFK and Boston. "Fuel prices have now reduced and we continue to get overwhelming requests from our customers to serve this market," CCO Robin Hayes said. The LCC also announced the launch of a daily JFK-Montego Bay service on May 21 and the Jan.
SAS Group announced the completion of its sale of a majority share in Spanair and its entire stake in airBaltic. A consortium of Spanish investors led by Consorci de Turisme de Barcelona and Catalana d'Inciatives acquired an 80.1% stake in Spanair for €1 ($1.31), leaving SAS with the remainder ( ATWOnline, Dec. 19, 2008). SAS took a SEK712 million ($87.9 million) loss on the deal that will reflect on its fourth-quarter balance sheet.
Full-year 2008 traffic figures released by IATA confirmed that passenger demand growth is slowing considerably while cargo traffic is contracting significantly. Passenger traffic grew just 1.6% in 2008, a major slowdown compared to 7.4% growth in 2007. Capacity rose 3.5% and load factor was 75.9%, down 1.4 points from a year earlier. Passenger demand fell 4.6% year-over-year in December.
British Airways Chairman Martin Broughton indicated the airline soon will decide whether to proceed with its planned merger with Iberia "I would be very concerned if we weren't able to make a call at least in the first [fiscal] quarter" starting April 1, Broughton told The Wall Street Journal.
Airbus inked an agreement with a group of Chinese industrial partners Friday to establish a joint venture in Harbin to produce composite material parts and components for A350 XWBs and A320s ( ATWOnline, Nov. 27, 2007). The contract was signed in Madrid, where Chinese Premier Wen Jiabao and Spanish Prime Minister Jose Luis Rodriguez Zapatero were conducting talks.
Lufthansa Technik signed a 10-year Total Technical Support contract with AeroLogic to provide maintenance services on 11 777 freighters. TTS includes LHT's Technical Operations Management product and covers MRO, component logistics and planning activities. Delivery to AeroLogic is scheduled to begin in May.
Spirit Airlines management angered cabin staff and the Assn. of Flight Attendants-CWA with a series of advertisements and proposed inflight attire that the union called "demeaning." AFA International President Patricia Friend said she felt "as though I've entered a time warp," claiming the LCC's innuendo-laced advertising campaign is offensive "not just [to] the female population of this country but the male members of humanity who admire and respect women." Aprons adorned with an alcoholic beverage logo also have drawn the union's ire.
Lufthansa Cargo reached an agreement with labor representatives to reduce hours for 2,600 employees in Germany. A final deal will be signed "as soon as possible," the company said. "After scaling back our freighter capacities, flexible adjustment of staffing capacities has become inevitable in the company's present situation. We are nevertheless confident that we will be able to safeguard all jobs at Lufthansa Cargo," Chairman Carsten Spohr said. December tonnage fell 21.4% year-over-year and this year will be "challenging," he admitted.
Japan Airlines Friday conducted the latest biofuel test flight, operating a 747-300 partially powered by fuel derived primarily from the camelina plant. The 90-min. flight from Tokyo Haneda followed recent biofuel demonstration flights conducted by Air New Zealand and Continental Airlines ( ATWOnline, Jan. 8). A 50/50 blend of traditional jet fuel and camelina-based biofuel powered one of the aircraft's four Pratt & Whitney JT9Ds. It was the first biofuel test flight using Pratt engines.
Southwest Airlines Senior Director-Flight Operations Jeff Martin, Natural Resources Defense Council Senior Attorney Liz Barrett-Brown, Commercial Aviation Alternative Fuels Initiative Executive Director Richard Altman and Rolls-Royce Strategic Marketing Manager-Future Programs Jonathan Hart are among the featured presenters at the Second Annual Eco-Aviation conference organized by ATW and Leeham Co. May 26-28 in Washington, DC.
ICAO is moving ahead with plans for an international carbon emissions cap-and-trade scheme despite a growing number of rival regional schemes. Speaking in Tokyo on Jan. 15, Roberto Gonzalez, president of the ICAO Council, told delegates to the Ministerial Conference on Global Environment and Energy in Transport that EU moves to include aviation in its regional emissions trading scheme will not derail ICAO's plans to build a framework that could underpin a global scheme.
The U.S. Travel Association (formerly Travel industry Association) unveiled new "accountability standards" on business meetings, events and incentive travel for companies receiving federal bailout funds. The standards are designed to convince Congress and the Obama administration that corporate America can police itself, despite widely publicized events labeled as wasteful corporate junkets held by bailout recipients. Key points of the standards are:
UPS made a critical decision in 1987 that would forever change the delivery companyand the air cargo business. After five years of using contract cargo airlines to provide next-day delivery in the domestic US market, it decided it needed more control over its operations and began laying the groundwork to establish its own air carrier. On Feb. 1, 1988, UPS Airlines was launched with two DC-8 freighter flights from Louisville to Chicago and Milwaukee.
When Norwegian Air Shuttle decided to end life as a provider of contract lift in 2002 and reinvent itself as a low-cost carrier, most observers estimated the likelihood of its survival as low to very low. The market was in turmoil following 9/11 and Norway was dominated by flag carrier SAS, which then was in the process of digesting Norwegian's former customer, Braathens. Switching from supplier to competitor and from F50 turboprops to 737s was considered unwise if not foolhardy.
AAR named Dave Cann VP-regulatory compliance. Aerospace Industries Assn. welcomed Brian McDermott as VP-supplier management, Robert Young as asst. VP-civil aviation and Lisa Goldberg as dir.-environment, safety & health. Air Berlin selected Matthias von Randow as dir.-global traffic rights & political affairs. Airclaims appointed Tan Soon Kent as a surveyor in its Singapore office and Garrick Andrews to a similar position in its New Zealand office. A J Walter Aviation tapped Tomas Cano as sales dir.-Spain.
"Clearly the pension issue is foremost in our minds," AC President and CEO Montie Brewer recently told analysts and reporters. "Pension rules in Canada are not aligned with the US. . .The rules have to be realigned."
While today's ever-shifting procurement skyscape is certainly all about cost, it's not necessarily predicated on price. That's the strong consensus of several respected procurement professionals. "Supply chain management has evolved. In the past, it's been more transactional based and reactive," says Jim Renaud, a Certified Purchasing Manager.
Safe, reliable, trustworthy services are the fundamental building blocks upon which success in the airline industry must be constructed. But sustaining success in this always evolving and highly competitive business usually takes more:
