Volvo Aero said its low-pressure compressor for the EU's VITAL (Environmentally Friendly Aero Engine) successfully completed testing performed in partnership with the Swedish Defense Research Agency at Sjoland & Thyselius Aerodynamic Research Centre AB in Stockholm. According to Volvo, the LPC is designed to be 15% lighter than current LPCs. Increasing the performance of each stage permitted a reduction in the total number of stages, thus saving weight and length. "The testing. .
KLM cityhopper will deploy a new E-190 on one of its six daily Amsterdam-Brussels flights beginning today as part of a fleet renewal program that includes integration of 10 190s by March 2010 to replace its oldest F100s ( ATWOnline, Aug. 6, 2007). The first 190 arrived Nov. 10. The KLM subsidiary also will take over five F70s from Regional in 2009. At the start of 2010, the cityhopper fleet will consist of 10 190s, five newer F100s, 26 F70s and 12 F50s.
US Air Transport Assn. expressed satisfaction with last week's reports that Rep. Ray LaHood (R-Ill.) will be nominated by President-elect Barack Obama to be the new Secretary of Transportation ( ATWOnline, Dec. 18). ATA said LaHood "has a well-deserved reputation for his even-handed, thoughtful and deliberative approach to complex issues" and that it "look[s] forward to working closely" with LaHood if he is confirmed.
The Chinese government cut the domestic fuel price 32% to CNY5,050 ($736.49) per ton from CNY7,450, effective last Friday, marking the sixth time this year Beijing has adjusted the domestic price. Because of the way in which fuel prices are managed by the government ( ATWOnline, Oct. 7), Chinese airlines have not reaped the immediate benefit of the collapse in oil prices. Fuel expense currently accounts for 40%-50% of Chinese carriers' total operating expenses.
US National Transportation Safety Board said it is investigating an incident last month in which a Delta Air Lines 777-200ER experienced an "uncommanded engine rollback in the cruise phase of an intercontinental flight." DL Flight 18 was over Montana en route from Shanghai to Atlanta on Nov. 26 at about 12:30 p.m. MST when the incident occurred to the No. 2 engine.
Turkish Airlines said it extended the deadline of its RFP for 25 widebody and 50 single-aisle aircraft plus 10 widebody and 10 narrowbody options by one month until Jan. 19 "at the request of the manufacturing companies." The planned order was announced two months ago and the tender was scheduled for completion on Dec. 17 ( ATWOnline, Oct. 15).
FedEx reported net income of $493 million for its fiscal second quarter ended Nov. 30, up 3% compared to $479 million in the year-ago period, and announced it is initiating "broad cost reduction actions" to contend with a "decline in shipping trends" and "very difficult" economic conditions. The company implemented a hiring freeze, a 7.5%-10% salary reduction for senior executives and a 5% pay cut for salaried personnel exempt from labor contracts. Chairman, President and CEO Frederick Smith said his salary would be lowered by 20%.
ICAO reported yesterday that preliminary traffic figures show that scheduled airline traffic (RPKs) for airlines of the ICAO member states rose just 1.8% in 2008 compared to 2007, a significant slowdown following the 7.1% rise in 2007 over 2006. Passenger enplanements climbed approximately 0.8% to 2.29 billion. ICAO said that the growth "was shared unequally between IATA airline members and other types of carriers, notably Low Cost Carriers. The non-IATA market share increased significantly, reaching 33% of domestic scheduled traffic and around 20% of total scheduled traffic."
Swissport said it concluded an agreement with South African Airways to provide ground handling for SAA at Johannesburg, Cape Town, Durban, Port Elizabeth, East London and George airports. Agreements run from 2009 to 2014.
Air New Zealand issued a challenge to key New Zealand airports to follow Singapore's decision to cut landing charges by 10% to stem the drop in tourists ( ATWOnline, Dec. 15). ANZ Deputy CEO Norm Thompson said Auckland, Wellington and Christchurch should follow suit and work with airlines to help stimulate travel. "We all need to play our part in stimulating travel. Airports could assist in keeping fares lower by reducing landing fees during this economic downturn," he said.
As expected, merger talks between Qantas and British Airways ended without any agreement just two weeks after the oneworld partners formally confirmed their discussions of a tie-up via a dual-listed company structure. "Despite the potential longer-term benefits for Qantas and BA, the airlines have not been able to come to an agreement over the key terms of the merger at this time," the carriers said in a statement, adding that they will continue to work on their joint business between the UK and Australia.
Sabre Holdings acquired EB2 International, a London-based, supplier of "e-commerce enabling software products, solutions, infrastructure and services to global airlines." Price was not disclosed. Sabre said the acquisition will accelerate its technology plans for its recently launched SabreSonic Customer Sales and Service solution. EB2 and its products will become part of Sabre Airline Solutions.
Lufthansa Technik extended an agreement with the International Bureau of Aviation under which IBA provides LHT with "aircraft transitioning support services" on an as-required basis. Services covered include aircraft transition inspections, technical records audits and aircraft importations.
Chinese carriers have had mixed reactions to CAAC's recent call to "cancel or delay" 2009 aircraft orders as a part of an effort to lift the domestic airline industry out of its current difficulties. CAAC also encouraged carriers to return leased aircraft and to ground or sell older planes, in addition to capacity adjustments, in order to reduce deliveries of foreign-made aircraft ( ATWOnline, Dec. 11).
Delta Air Lines said it expects to record a one-time noncash operating expense of approximately $950 million in the current quarter, which it said is "primarily associated with the issuance of equity awards to substantially all nonmanagement employees of Delta and [Northwest Airlines] in connection with the merger." DL also entered into an agreement with Citigroup Global Markets to sell up to 18.2 million shares of common stock at $0.0001 per share. It said proceeds will be used for "general corporate purposes," including the replacement of funds used to pay merger-related taxes.
SAS Group's restructuring took a significant step forward yesterday with announcement of the sale of its airBaltic stake and a new majority investor in Spanair. AirBaltic, in which SAS holds 47.2%, will be sold to the airline's management for LAT14 million ($27.5 million) in cash by Jan. 31, SAS announced, resulting in a SEK175 million ($22.5 million) capital gain for the Scandinavian company.
Swiss International Air Lines plans to add San Francisco, Abu Dhabi and Beijing to its network as soon as the industry downturn concludes, Director-External Relations & Alliances Ignazio Strano told ATWOnline at last week's Star Alliance board meeting in Chicago. Swiss also is evaluating closer cooperation with fellow Star member Austrian Airlines Group, which will be acquired by Swiss parent Lufthansa.
United Airlines said its fourth-quarter PRASM is expected to rise 3%-4% while CASM excluding fuel will rise 1%-1.5%. CFO Kathryn Mikells told employees in a conference call that "lower fuel prices are clearly good news. . .At United, every dollar per barrel that fuel declines gives us about $60 million in fuel savings per year excluding hedging impacts." UA previously said it expects to record $232 million in cash fuel hedging losses and $138 million in noncash mark-to-market hedging losses in the fourth quarter.
President-elect Barack Obama will nominate Rep. Ray LaHood (R-Ill.) as the next US Secretary of Transportation, according to multiple news reports. LaHood, 63, is retiring from Congress at year end after serving in the House of Representatives since 1995. The appointment of the Republican lawmaker by Democrat Obama is reminiscent of Republican President George Bush's naming Democrat Norman Mineta transportation secretary following the 2000 election. If confirmed, LaHood will oversee the Dept. of Transportation, which includes FAA.
US Air Transport Assn. announced the release of Spec 2000 Chapter 16, Electronic Product and Part Regulatory Documentation, which describes the electronic exchange of FAA's Authorized Release Certificate and has been approved as the method for exchanging From 8130-3 in electronic format.
Turkish Airlines confirmed the addition of five widebodies in the coming months to support the growth of its long-haul operations. Additions comprise three 777-300ERs on wet lease from Jet Airways and two A330-200s that are part of an order placed in 2004. THY currently operates nine A340-500s and five A330-200s. The first two 777-300ERs are scheduled to join the fleet on Dec. 24 and 25 while the A330s are scheduled for February and April delivery. With the addition of the 777s, THY also will start offering first class.
European Court of First Instance annulled the European Commission's ruling in the longstanding Ryanair/Charleroi state-aid case because it is "vitiated by an error in law," thus opening the door for other secondary airports to offer incentives to prospective airline tenants.
ATR said it started ground tests of the ATR 42/72 series 600 "pre-series aircraft," beginning with the electrical systems and the "New Generation Avionics Suite" supplied by Thales Aerospace.
