Lufthansa will take over Brussels Airlines, the carriers announced yesterday, in a deal that potentially values the Belgian carrier at €250 million ($355.6 million) and could pave the way for its entry into Star Alliance.
United Airlines doubled its fee to check a second bag on North American flights to $50, blaming the increase on "volatile" fuel prices. The new charge applies to customers who purchase tickets beginning today for travel from Nov. 10. It does not apply to passengers who fly first or business class or to "premier status" frequent-flier members. Active duty military personnel traveling on orders also are exempt. UA charges a $15 fee for the first checked bag. It said the new fee schedule will generate an estimated $700 million in revenue in 2009.
American International Group, hit hard by the US credit crisis, is developing a major restructuring plan that will include selling off several of its assets, possibly including ILFC, according to the Wall Street Journal. AIG is under pressure to raise significant amounts of money quickly and ILFC, which owns more than 900 aircraft, is valued at more than $50 billion, the paper reported. While AIG and the US financial sector are struggling, ILFC posted second-quarter operating income of $352 million.
ARJ21-700 now is expected to make its first test flight in late 2008 or early 2009. Commercial Aircraft Corp. of China revealed that the regional aircraft has been transferred to the flight test facility from its Shanghai Aircraft Manufacturing Factory, which former ARJ21 Deputy Chief Engineer Zhou Jisheng noted is the last step before the inaugural flight. According to Zhou, ground testing is expected to last at least a couple of months. It has been reported that five -700 prototypes have been produced (three for flight tests, one for static tests and one for fatigue testing).
Midwest Airlines, which announced in July that it would cut 1,200 jobs, is laying off an additional 186 employees, according to Milwaukee's Capital Times. The cuts, to take effect Nov. 7, include 72 pilots, 82 flight attendants and 31 nonunion employees who work at the carrier's Milwaukee Mitchell hub.
Aeroflot cut ties to Aeroflot Nord yesterday following Sunday's fatal crash of a 737-500 operated by the regional affiliate, saying that Nord no longer will operate flights under its code nor be allowed to use its name.
News from Travel Technology Update: Frustrated by its inability to process travel agency sales through IATA's billing and settlement plans, V Australia launched its own travel agent payment and settlement system. IATA barred the carrier from using the BSPs until it acquires its own operating certificate. V Australia had sought to gain access to the system under parent carrier Virgin Blue's certificate. V Australia is slated to launch Sydney-Los Angeles service on Dec. 15. It has been selling tickets via direct channels since March.
Pratt & Whitney and Aviall Services will work together to distribute JT9D spare parts under a recent deal. The contract calls for Aviall to supply Pratt OEM spares to JT9D operators, which number more than 1,200 globally.
Aircell struck deals with Air Canada and Delta Air Lines recently to provide its Gogo Internet service, which allows passengers to use Wi-Fi enabled devices such as laptops, smartphones and PDAs throughout flights. In September, Air Canada signed an agreement with Aircell to roll out its Gogo system on select flights next spring. The carrier plans to begin installing the system on A319s flying to the US and eventually on aircraft covering its North American and international markets.
In July, Menzies Aviation signed agreements with Air France, Virgin America and six Star Alliance member carriers. MA won a four-year extension on its contract with Air France to provide ramp handling and cabin grooming services at George Bush Intercontinental. AF operates two flights daily between Paris and Houston using 777s and A330s. MA also provides passenger services and aircraft maintenance support to AF at IAH.
STS Holdings recently acquired the assets and business of Tradewinds Aircraft Services, a component supply and OEM distributor based in Pompano Beach, Fla. STS Holdings, based in Jensen Beach, Fla., owns various aviation companies and over the last decade has expanded its offerings to include engineering services and staffing, line maintenance services and, as a result of this acquisition, inventory management and component services.
Heroux-Devtek won a $27-million repayable contribution from Industry Canada for research and development of its landing gear technologies. Funds are part of a $77 million project to improve performance and reliability and reduce environmental impact. Investment will span six years with repayments taking effect one year after project completion.
Mark Logic, an XML content platform provider, said JetBlue Airways selected its information and delivery solution to power the carrier's corporate publications application, which houses a variety of cross-departmental intellectual property including regulatory compliance procedures, policies and educational materials. "The technology is very straightforward and the training burden is low," JetBlue Learning Technologies Director Murry Christensen pointed out to Airline Procurement. "We don't have to invest in fancy workflow engines or build special content repositories."
Virgin Atlantic Airways Chairman Richard Branson said Friday that he will fight the American Airlines/British Airways/Iberia transatlantic antitrust immunity application ( ATWOnline, Sept. 1) "tooth and nail," adding, "it's a bit like allowing Coke and Pepsi to merge." AA fired back, accusing Virgin of resorting "to baseless arguments and hypocritical scare tactics," adding, "Virgin is intentionally trying to mislead regulators and the general public."
An Aeroflot Nord 737-500 en route from Moscow Sheremetyevo to Perm lost radio contact at 3,600 ft. on approach and crashed yesterday, killing all 82 passengers and six crew. Russian officials cited engine failure as the most likely cause. Crash debris was scattered over 10,000 sq. m. Aeroflot, which owns a 51% stake in the regional carrier that operates domestic services, said, "Wreckage of the plane has been found within the boundaries of the city of Perm. The plane was totally destroyed and had caught fire."
The group of Italian investors including Air One that reportedly had been willing to invest up to €1 billion ($1.4 billion) in an Alitalia restart withdrew from negotiations with the carrier's labor unions Friday, leaving the troubled airline on the verge of collapse.
Alenia Aeronautica last week inaugurated a new Ground Test Centre in Turin-Caselle dedicated to testing and qualification of commercial and military aircraft.
TIMCO Aerosystems, an aircraft interior provider based in Greensboro, said it will offer its FeatherWeight Galley Refresh System for 767s. Designed to reduce weight and optimize available space, the system features customized lighting and composite countertops.
Alaska Airlines said its winter schedule starting Nov. 9 will see an 8% year-over-year capacity cut, leading to a 9%-10%, or 1,000-employee, workforce reduction. It will cancel low-demand flights on Saturdays and holidays, reduce frequencies in some markets and shift some flying from its 737s to regional subsidiary Horizon Air's Q400s or CRJ700s. Chairman and CEO Bill Ayer explained that the cuts are driven by "the one-two punch of record oil prices and a softening economy on top of increased competition."
Qantas engineers at the airline's Tamworth heavy maintenance facility are threatening strike action this week, Fairfax Digital reported. The engineers reportedly are in dispute with the airline over a failure to renegotiate a workplace agreement dating back to 2005. The Tamworth engineers, responsible for QF's fleet of 11 717s, operate under a different labor agreement than other QF engineers.
SAS Group said it "is in the process of evaluating various structural possibilities" in a statement issued Friday in response to widespread speculation in European media that Lufthansa is considering a takeover bid. SAS has been enduring heavy losses ( ATWOnline, Aug. 15) and considering its future "structure" throughout this year ( ATWOnline, April 2008).
Ryanair said that owing to delayed deliveries caused by the Boeing machinists' strike, it will defer the opening of its Reus base by five weeks to Nov. 5 and postpone the basing of its seventh aircraft at Bergamo by four weeks to Oct. 29. The LCC already had confirmed it was postponing the opening of its Edinburgh base by six weeks to Nov. 5 owing to the strike. Ryanair was scheduled to base two new 737-800s at EDI and two at REU, but these aircraft "are now indefinitely delayed due to a strike by Boeing employees," Deputy CEO Michael Cawley said.
XL Airways UK grounded all flights Friday after its parent company, XL Leisure Group, the UK's third-largest tour operator, was put into administration, leaving an estimated 85,000 passengers stranded abroad. The shutdown was caused by "volatile fuel prices, the economic downturn and [an inability] to obtain further funding," a statement of the joint administrators said on the xl.com website. The administrators added they were not able "to continue trading the business and therefore all flights. . . have been immediately cancelled and the aircraft grounded."
Panasonic Avionics reached agreement with Air France to provide its eX2 IFE 10 777-300ERs, the first of which is slated to enter service in March 2010.
