Lufthansa Technik subsidiary Lufthansa Technic AERO Alzey, which specializes in regional aircraft engines, named Mark Johnson as CEO replacing the departing Peter Kamenz. Johnson most recently was commercial manager at LH's Frankfurt hub.
Skyworks Leasing arranged the sale of a Transamerica Aviation A320 to VGS Aircraft Leasing One, a subsidiary of VGS Aircraft Holding (Ireland). Aircraft is on lease to US Airways. It also arranged the sale on behalf of Bank of America of a 767-300 to 767(2), a company affiliated with Ryan International Airlines, and of a former Skybus Airlines A319 acquired earlier this year from Air Canada to a special purpose company affiliated with VTB Leasing, Moscow. After interior modifications, that aircraft will be placed on long-term lease with Rossiya.
The steep rise in fuel prices confronting the commercial aviation industry will drive demand for new aircraft, according to Boeing, which said yesterday that it forecasts a $3.2 trillion market over the next two decades "driven by an increasing demand for airplanes to replace older, less efficient aircraft."
Vibro-Meter, a subsidiary of Meggitt Group, reached agreement with Boeing to supply the engine vibration monitoring system on the 777. The EVM will be available in a basic version with the same functionality as the previous system, plus an advanced version featuring an open architecture platform with computational power that enables engine manufacturers to integrate health monitoring algorithms. Rolls-Royce customers will receive the advanced system and Pratt & Whitney and GE customers the basic version.
US FAA issued new airworthiness directives this week requiring "repetitive inspections for cracking" of overwing frames on MD-80s and of the upper frame to side frame splice on the fuselage of 737 Classics. American Airlines is the largest operator of the MD-80 and Southwest Airlines is the largest operator of the 737 Classic series, but one or both of the types are present in the fleets of most other US major airlines.
Lufthansa Group airlines flew 13.87 billion RPKs in June, a 27.9% increase over the year-ago month. Capacity climbed 29.4% to 17.1 billion ASKs, lowering load factor 1 point to 81.1%. US Airways Group said June consolidated passenger RASM rose 2%-4% year-over-year. It flew 5.86 billion RPMs, down 0.6%, against a 0.6% increase in capacity to 6.95 billion ASMs. Load factor fell 1 point to 84.4%. Ryanair transported 5.2 million passengers in June, up 19% from the year-ago month. Load factor fell 1 point to 84%.
Northwest Airlines said yesterday that its previously announced capacity cuts, which will include the removal of more than 40 aircraft from its fleet in 2008, will result in a reduction of 2,500 frontline and management employees. NWA also unveiled a range of new fees designed to combat "record fuel costs." "Our fuel costs have more than doubled in the past year," President and CEO Doug Steenland said. "In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue."
CAE yesterday announced that the 777-300ER full-flight simulator it designed and manufactured for Delta Air Lines won Level D certification under US FAA Part 60. FAA implemented Part 60 in late May as an extension of its National Simulator Program to bolster qualification requirements for the use of flight simulation training devices. The CAE FFS, which is in operation at DL's Atlanta training center, is the first to achieve this certification.
Air Berlin yesterday announced that Stuttgart prosecutors have dropped insider trading charges against CEO Joachim Hunold, Chairman Johannes Zurnieden and three other executives "due to lack of evidence." Their offices and homes were raided 13 months ago when suspicion arose over stock purchases made prior to AB's acquisition of dba ( ATWOnline, June 20, 2007).
US Airways will remove IFE from domestic flights this fall in order to save approximately $10 million per year, VP-Sales and Marketing Travis Christ told Bloomberg News. "We simply can't afford to do it anymore," he said. Bloomberg reported that video systems aboard US's A320s will be shut down Nov. 1 and removed from aircraft during maintenance. It said passenger demand has dropped (US charges $5 for headsets) and the IFE systems can add some 500 lb. to each aircraft.
MNG Airlines, the Istanbul-based cargo carrier, purchased an A300-600F from Air Atlanta Icelandic. Aircraft will join MNG's fleet at the end of this month. It currently operates eight A300-200Fs and five F27Fs.
Chinese carriers were dealt another blow to their bottom lines this month as authorities decided to raise the jet fuel price by CNY720 ($104.83) per ton.
Airline groups around the world continued to condemn the European Parliament's decision to include both EU and non-EU carriers in an emissions trading scheme from 2012 ( ATWOnline, July 9). International Air Carrier Assn. DG Sylviane Lust said the decision "creates the worst of all worlds--even more financial pressure on airlines without any proven benefits for the environment," while European Regions Airline Assn.
Jat Airways launched twice-weekly Belgrade-Pula flights last week aboard an ATR 72, reestablishing air service to Croatia after 17 years. Service will continue to Aug. 21, and Jat said it is "prepared" to extend it if it remains popular. Separately, Jat transported 141,000 passengers in June, up 11% year-over-year, as load factor rose 4 points to a record 65%. Six-month passenger numbers climbed 9% to 578,781.
Air New Zealand will freeze senior executive salaries and has "challenged each division to identify opportunities to review nonessential activity and reduce employee numbers through attrition and nonreplacement of roles that are not operationally critical," CEO Rob Fyfe told Bloomberg News.
ExpressJet Airlines said yesterday that it will suspend its independent branded flying operation on Sept. 2, citing rising fuel costs, ending a program that never made money after its April 2007 launch ( ATWOnline, May 10, 2007).
Spirit AeroSystems Europe said it won deals with Airbus to design and produce a wing structure for the A350 XWB program and reached a $1.7 billion extension on its existing contract to supply leading and trailing edges and other wing structures on the A319, A320 and A321 assembled in the UK from 2011 to 2015. The A350 structure will comprise 50% carbon fiber and measure 32 m. in length. Work will take place at facilities in Prestwick, Kinston, N.C., and Subang outside Kuala Lumpur.
As expected, and much to the disappointment of airlines, the European Parliament yesterday adopted a compromise agreement with the European Council on including aviation in the EU Emissions Trading System beginning Jan. 1, 2012.
Air France KLM flew 18.21 billion RPKs in June, a 2.6% increase from the year-ago month. Capacity climbed 4.1% to 22.34 billion ASKs and load factor slipped 1.2 points to 81.5%. It said it expects capacity during the winter schedule and next summer to grow approximately 2%. British Airways flew 9.71 billion RPKs in June, down 3.7% year-over-year. Capacity rose 1.2% to 12.66 billion ASKs, lowering load factor 3.8 points to 76.7%.
Southwest Airlines and WestJet agreed yesterday to form a "codeshare partnership" by late 2009 that would link the networks of the two LCCs and allow passengers flying on US domestic-only SWA to connect to Calgary-based WS's network throughout Canada.
Oxford Aviation Academy announced the acquisition of Dublin-based Parc Aviation, which supplies flight crew on medium/long-term contracts to airlines. The acquisition is backed by STAR Capital, OAA's majority shareholder. Financial terms were not disclosed.
Virgin America, as expected, appealed a decision by the US Dept. of Transportation's Office of Airline Information denying its request for confidential treatment of its financial, traffic and origin and destination survey data filed with DOT's Bureau of Transportation Statistics ( ATWOnline, June 27). Republic Airlines and Shuttle America also appealed the decision denying confidential treatment.
Gol and VRG parent GOL Linhas Aereas Inteligentes said it expects to report a negative pre-tax margin of 17%-19% for the recently completed second quarter and a negative operating margin of 21%-23%. The company reported a BRL35.4 million ($22.1 million) loss in the second quarter of 2007 and a BRL3.5 million deficit in the first quarter of 2008. Second-quarter capacity is estimated to have risen 23%, down from the forecast 25%, and load factor is expected to be 64%-65%, up from the forecast 61%-63% but down from the year-ago period's 66%.
Comair, Delta Air Lines' regional subsidiary, expects to ground 14 aircraft and cut 8% of its workforce this fall, according to a notice to employees cited by the Associated Press. The staff cuts will include 300 pilot and 220 cabin staff positions. DL announced wide-ranging cuts in March ( ATWOnline, March 19).
