Boeing and Honeywell subsidiary UOP have brought together a group of airlines and environmental organizations that will work to accelerate the development and commercialization of new sustainable aviation fuels.
Continental Airlines expects to record a $50 million hit on its third-quarter operating results owing to the impact of Hurricane Ike on its operation at its Houston Intercontinental hub. It reported the "preliminary estimate" in a filing with the US Securities and Exchange Commission yesterday. CO suspended service at IAH beginning midday Sept. 12 and recommenced Sept.15. It noted that much of Houston was without power the following week.
Hainan Airlines Chairman Zhu Yimin was promoted to VP of parent HNA Group and will be succeeded by HNA Hotel Co. executive Li Xiaoming, who also will be chairman of Grand China Air, an insider told ATWOnline yesterday. HNA Group Chairman Chen Feng relinquished the Grand China role but will remain head of the parent company.
Alitalia, described by Italian Prime Minister Silvio Berlusconi last week as being "on the edge of an abyss," yesterday gained new life when the airline's largest labor union reversed course and agreed to concessions contained in the rescue plan proposed by investment group CAI, which now may include Air France KLM.
UK CAA yesterday released its response to the Competition Commission's provisional report on airport services and BAA's decision to sell London Gatwick, saying it "strongly supports" the CC's recommendation that BAA sell three airports and that the move "can be expected to significantly increase competition between airports in the South East and Scotland, to the benefit of passengers, airlines and the wider UK economy." It said the sale of LGW is "an important first step to realizing these benefits" and that the CC should reject BAA's contention that "airports cannot compete when their
American Airlines flew 12.16 system RPMs in August, down 2.9% from the year-ago month. Capacity slipped 1.1% to 14.57 billion ASMs and load factor fell 1.5 points to 83.5%. American Eagle flew 704.2 million RPMs, down 13.6%, against a 4.5% fall in capacity to 1.01 billion ASMs. Load factor dropped 7.3 points to 69.7%. Northwest Airlines flew 7.27 billion consolidated RPMs in August, up 1.9% from the year-ago month. Capacity climbed 3.1% to 8.4 billion ASMs and load factor dropped 1 point to 86.6%.
Air New Zealand Chairman John Palmer warned shareholders at this week's annual general meeting that more network restructuring may be required as market volatility can change "on a dime." To deal with that environment, ANZ now reviews its route structure every two weeks rather than the customary six months.
Northwest Airlines and Delta Air Lines shareholders yesterday voted overwhelmingly in favor the carriers' planned merger, leaving US Dept. of Justice approval as the only remaining significant potential obstacle to the combination. The shareholder votes came on the heels of US FAA's acceptance of the airlines' merger plan earlier this week ( ATWOnline, Sept. 23).
US House of Representatives Homeland Security Appropriations Subcommittee approved language that would withhold funding for the Dept. of Homeland Security's US-Visit Exit program, which would employ a system using airline-collected biometrics to determine when foreigners leave US airports, the Air Transport Assn. said. The measure still must be approved by the Senate. ATA has argued that DHS rather than airlines should collect the data.
Air France KLM and AF Chairman and CEO Jean-Cyril Spinetta will relinquish the latter title at both the parent company and airline on Jan. 1, when Deputy CEO Pierre-Henri Gourgeon will take over. "I felt it necessary to propose an internal solution that would guarantee continuity of governance in view of the difficult economic climate facing us," Spinetta said.
Lufthansa Technik is expanding capacity in European countries with lower labor costs and plans to perform its first D check on an A321 at its new Sofia facility in November. LHT Sofia will open formally on Oct. 28, employ 258 and feature a two-bay, 6,000-sq.-m. hangar. LHT has invested €20 million in the facility along with partner Bulgarian Aviation Group. Sofia will join LHT sites in Germany, Ireland, Hungary and Malta in performing single-aisle MRO. Meanhile, LHT Malta is planning to open its new 27,000-sq.-m.
ANA announced yesterday that it reached agreement with Boeing on a revised 787 delivery schedule that will see the launch customer take its first aircraft next August, 15 months later than originally planned but sooner than might have been expected given that the aircraft has yet to make its first flight.
Qantas cited market volatility for its decision to defer the previously announced minority IPO of its Qantas Frequent Flyer business. The board said preparations would continue for a flotation in the first half of next year.
Boeing expects oil to stabilize at $70-$80 per barrel (in 2008 dollars) over the next 20 years, VP-Marketing Randy Tinseth told media in Sydney, adding that the company's forecasts have proven to be "quite accurate" this decade. The manufacturer projects that by 2027 the global passenger and freighter fleet will comprise 2,630 regional jets (7%), 23,540 single-aisle aircraft (66%), 8,290 twin-aisle aircraft (23%) and 1,340 jumbo aircraft (4%). Total value is estimated to be $3.2 trillion.
British Airways CEO Willie Walsh described London Mayor Boris Johnson's idea to replace London Heathrow with a new facility on an island in the Thames as "madness," Bloomberg News reported. Johnson has said he believes LHR is "a 1950s planning error" and vowed during his successful election campaign to review the feasibility of a new four-runway airport east of London. "It's not going to work," Walsh said at the World Low Cost Airlines Congress in London. "It's a distraction to a tough decision that has to be made in relation to Heathrow airport."
British Airways signed up for Boeing's Performance Improvement Package for its fleet of 42 777s. The package is expected to reduce fuel spending per aircraft by about $200,000 annually (assuming $100-per-barrel crude oil prices), according to Boeing estimates. Key elements include addition of a drooped aileron and a ram air system. In addition, Boeing will provide redesigned wing vortex generators. The manufacturer expects the package to be certified by US FAA next year.
US Senate and House of Representatives late Tuesday both passed the FAA Extension Act of 2008, which will fund FAA operations and programs through March 31. The agency, which saw its authorization expire on Sept. 30, 2007, has been funded over the past 12 months via a series of temporary extensions ( ATWOnline, May 7), the latest of which is set to expire Sept. 30.
Lufthansa supervisory board approved the company's strategic investment in Brussels Airlines parent SN Airholding announced last week ( ATWOnline, Sept. 16). LH will acquire a 45% stake in SN for €65 million and in 2011 will have an option to purchase the remaining 55%, at which point Brussels will be integrated fully into the group.
Clickair is launching a new Internet portal designed for companies and travel agents as it expects a 42% increase in revenue from this sector in 2009. Clickair Professional provides users with access to exclusive benefits, including discounts on certain routes, triple loyalty program points for companies, special promotions for travel agents and a unique tariff enabling cancellations and modifications to be made to reservations without charge, according to CEO Alex Cruz.
Croatia Airlines announced a partnership with Privredna banka Zagreb and PBZ Card that will allow passengers to pay for tickets at nearly 400 Privredna ATMs. Customers who make a reservation over the telephone or at an OU branch office will have the option of receiving a code allowing them to pay later at an ATM using American Express, MasterCard, Maestro, Visa or Visa Electron.
Iberia Maintenance announced deals with GE Aviation, SR Technics and Gestair. It signed an MOU with GE to become the preferred regional fulfillment center for CFM56-5A MRO in Europe, Africa and the Middle East. IB will enter into an OnPoint solution agreement with GE for material and services. Under the agreement with SRT, Iberia will repair and overhaul SRT components from various aircraft fleets in Madrid while SRT provides MRO on CFM56-5Cs powering IB's A340-300s. It is the first deal between the companies.
Singapore Airlines will commence four-times-weekly Singapore-Dubai-Riyadh on Dec. 14 aboard 777-200s. SIN-Dubai-Istanbul Ataturk will increase to six-times-weekly from four. Royal Jordanian will resume service to Brussels after five years, launching a twice-weekly flight from Amman on April 1 with an A319. Blue Air will commence twice-weekly Brussels-London Stansted on Oct. 23, becoming thrice-weekly Dec. 11.
The Italian government yesterday met with CAI executives for the third time in two days, raising speculation that the investor group might revive its bid for Alitalia. Civil aviation authority ENAC warned this week that it might revoke or suspend AZ's operating license if the carrier's administrator, Augusto Fantozzi, does not present a credible rescue plan by today ( ATWOnline, Sept. 23).
Flybe Aviation Services reached an agreement with Embraer to become an authorized service center for ERJ-145s and E-Jets. Five-year contract calls for Flybe, which operates the 145, E-195 and Q400 and is one of Europe's largest low-cost regional operators, to provide MRO from its Exeter base. It will have access to Embraer's structure-specific repair solutions and database and will be able to handle airframe and warranty issues for Embraer customers.
