CAE won orders for full-flight simulators and related CAE Simfinity training devices valued at C$63 million ($52.6 million) from American Airlines, Air New Zealand, Suzuyo and Embraer CAE Training Services. AA purchased a CAE 7000 Series 737NG FFS and CAE Simfinity 737NG Integrated Procedures Trainer. ANZ ordered a 787 FFS and a 777-300 FFS as well as a suite of CAE Simfinity training devices for each aircraft type including IPTs and virtual simulators. Suzuyo bought a CAE 7000 Series E-170 FFS and an E-170 IPT. ECTS committed to a CAE 5000 Series Phenom 100/300 FFS.
Cathay Pacific Airways CEO Tony Tyler said the current industry downturn will last longer than the one associated with SARS in 2003 but that there will be little, if any, cross-border consolidation, particularly in Asia, as a result. "It's already looking difficult and the question is how long and how deep it will be," Tyler told ATWOnline at the Australian Airports Assn. national convention in Perth. But relief will not come through consolidation, which did not occur during the 1997 Asian financial crisis or SARS, as many analysts predicted.
Fuel costs and the weakening won combined to drag Asiana Airlines to a KRW47.9 billion ($36 million) loss in the third quarter, reversed from a KRW37 billion profit in the year-ago period.
Eastern Airways will lease two additional 50-seat Saab 2000s from the manufacturer with deliveries scheduled for Dec. 3 and 15. It currently operates six of the type, along with 23 Jetstream 41s. It serves 18 destinations and will launch six-times-weekly Aberdeen-Oslo service on Jan. 12 aboard a Saab.
The world's first commercial aviation test flight powered by a sustainable second-generation biofuel will take place on Dec. 3 on an Air New Zealand 747-400 with a jatropha blend powering one of the Rolls-Royce RB211 engines.
LAN Airlines signed a contract for four 767-300s for delivery in 2012 plus two options, according to a Nov. 10 stock market filing cited by both Reuters and the Associated Press. Neither Boeing nor the carrier confirmed the order, which LAN said was worth approximately $636 million. It has 26 787s on order.
China Aviation Industry Corp. Group, the result of the merger of AVIC I and AVIC II, launched formally last week, VP Tan Ruisong told reporters, with registered capital of CNY64 billion ($9.36 billion).
Aegean Airlines reported net income for the first nine months of 2008 of €26.5 million ($34 million), down 21% from €33.4 million in the year-ago period, saying the results were "solid" given "unprecedented" oil prices earlier this year and "deteriorating economic conditions." The carrier did not provide quarterly results, but ATWOnline calculated that it posted a €21 million third-quarter profit on €205.5 million in revenue. Earnings were hurt by valuation losses on US dollar aircraft loans and fuel hedges.
Amadeus said Spanair completed migration to its Altea platform and is managing reservations, sales and inventory through its Customer Management Solution.
Air Pacific will cease twice-weekly Honolulu-Vancouver Nov. 28 owing to losses of FJD11.7 million ($6.5 million) over the past five years. It will continue to offer access to YVR via Los Angeles in partnership with Alaska Airlines. AirAsia will launch daily Kuala Lumpur-Tiruchirapalli Dec. 1 aboard A320s. KLM Cityhopper will launch thrice-daily Amsterdam-Liverpool on March 29 aboard an F70.
IBM reached a deal with TAM for technology services, including installation of IT infrastructure and associated help desk and field support. Contract is expected to improve the carrier's server as well as its check-in system and tickets and reservation software.
Air Arabia reported a AED214 million ($58.2 million) third-quarter profit, up 29.7% from the AED165 million earned in the year-ago period. The Sharjah-based LCC enjoyed a 69% year-over-year increase in revenue to AED625 million on a 34% rise in passengers to 978,794. Load factor was level at 87%. Nine-month profit of AED374 million was up 34% from AED280 million in the first three quarters of 2007. The airline celebrated its fifth anniversary two weeks ago.
Tunisair, SITA and Medsoft, a Tunisian IT company, have launched Aviation IT Services Africa, which will provide all information and computer technology services (both administrative and operational) to the airline over the next 10 years using adapted SITA solutions. The venture has launch capital of $3 million and will be held jointly by Tunisair (50%), SITA (49%) and Medsoft (1%). "This is the largest outsourcing deal SITA has ever signed with an airline," CEO Francesco Violante said at the recent Arab Air Carriers Org. meeting in Tunis.
Aer Lingus yesterday said its full-year operating loss will be "closer" to the lower end of the projected €20-€30 million ($25.7-$38.5 million) range forecast previously but that it expects another operating loss in 2009. Operating loss through the first half of 2008 was €22.3 million.
Swissport International won a seven-year license from Luxembourg-Findel International to conduct ground handling activities including passenger and ramp services.
Vought Aircraft Industries, which produces the 787's rear fuselage, yesterday said it was temporarily ceasing operations at its Charleston plant, claiming that Boeing is so far behind on the program that Vought cannot afford to keep the facility running for the remainder of 2008. In a move that highlights the cascading effect of 787 program delays and the recently concluded Boeing machinists' strike, about half the Charleston plant's 400 employees will be out of work at least through year end. Vought said it hopes to restart rear fuselage production in the 2009 first quarter.
American Airlines flew 10.51 billion system RPMs in October, an 8.8% decline from the year-ago month. Capacity fell 7% to 13.3 billion ASMs and load factor was down 1.5 points to 79%. American Eagle flew 641.7 million RPMs, down 15.5%, against a 10.8% fall in ASMs to 921.3 million, dropping load factor 3.9 points to 69.6%. US Airways Group flew 4.89 consolidated RPMs in October, a 3.5% decrease year-over-year, against a 5% fall in ASMs to 6.02 billion. Load factor increased 1.3 points to 81.3%.
Ryanair said two cabin crew and eight passengers received medical attention "as a precaution" following a 737-800 overrun at Rome Ciampino yesterday morning. The LCC said the aircraft, on its way from Frankfurt Hahn, "suffered multiple bird strikes" and the left main landing gear "suffered substantial damage on landing." Photographs showed the left engine resting on the tarmac. There were 166 passengers onboard. Italy's ANSV said the aircraft "exited beyond the threshold" of CIA's 7,220-ft. runway.
News from Travel Technology Update: Farelogix said it is building an open-source front end for its FLX platform that will better meet the needs of travel management companies and enable airlines to merchandise their products more easily. Dubbed Project Hawkeye, it can be used as an off-the-shelf agent desktop or customized and extended to fit a particular customer's business, preferences or workflow needs.The application can be used separately from FLX when it is developed against a user's own travel source connections, Jim Davidson, chief executive officer of Farelogix, said.
Belgian government announced plans to cancel introduction of an airline passenger tax ( ATWOnline, Oct. 20). Assn. of European Airlines Secretary General Ulrich Schulte-Strathaus said the decision "brings a note of sanity to the ticket tax debate."
Emirates blamed fuel prices for an 88% plunge in fiscal first-half profit to AED284 million ($77.3 million) from the AED2.36 billion earned in the six months ended Sept. 30, 2007. Chairman and CEO Ahmed bin Saeed Al-Maktoum said the semester "has been very tough for the airline industry" and that EK "has worked hard to manage the impact of high fuel prices on our unit costs while continuing to grow our business."
TAM suffered a BRL112.7 million ($52.2 million) loss in the third quarter, reversed from a BRL48.5 million profit in the year-ago period, despite a 40.5% surge in operating revenue to BRL2.9 billion. The Brazilian carrier's costs grew 36.2% to BRL2.73 billion but BRL301.5 million in financial charges, owing mainly to losses on fuel hedges, dragged its operating result into the red. Operating loss was BRL152.9 million compared to a BRL78.3 million profit last year. Passenger numbers rose 17% to 7.9 million as RPKs jumped 25.2% to 10.41 billion.
Virgin Atlantic Airways is discussing the acquisition of 12 aircraft with Airbus, Boeing and lessors to plug the gap in its fleet caused by delays to the 787, a VS spokesperson told The Independent. It has 15 787-9s on order and now is not expecting delivery until 2013. Separately, VS promoted GM-Continuing Airworthiness Steve Griffiths to director-engineering. He replaces Jeff Livings, who now is at Gulf Air.
WestJet reported third-quarter net income of C$54.7 million ($46 million), down 28.1% from C$76.1 million last year, saying it was hurt by high fuel costs and "the beginning of a more challenging environment for demand." Nevertheless, President and CEO Sean Durfy touted the Calgary-based carrier's continued capacity expansion, which included 20.1% growth in the third quarter, as "purposeful and profitable" at a time when many airlines are reducing capacity and losing money.
