HISTORY WILL BE MADE ON MARCH 30 WHEN THE first commercial aviation agreement between the European Union and the US enters into force. The accord, which creates a single transatlantic Open Aviation Area in place of the existing regime of individual bilaterals between the 27 EU member states and the US, was no easy delivery. Negotiations were begun in June 2003 and required 11 rounds to achieve an agreement that was initialed in Brussels on March 2, 2007, and signed at the EU-US summit in Washington on April 30, 2007.
Merger talks between Delta Air Lines and Northwest Airlines apparently have stalled owing to a lack of progress in negotiations between the carriers' pilot groups.
Precision Air Services took delivery of its first ATR 72-500. The Tanzanian airline ordered five in 2006 and one more in 2007; the remaining five are to be delivered in 2008-10.
BAA, operator of seven UK airports including London's Heathrow, Gatwick and Stansted, announced that CEO Stephen Nelson will be replaced on April 1 by former British Airways Director-Technical Operations Colin Matthews.
VRG and Japan Airlines inked an interline agreement that will allow passengers to purchase single tickets for flights serving all destinations of both carriers. Passengers traveling under VRG's Smiles frequent-flier program will only accumulate miles on flights operated by VRG, formerly Varig.
FAA and the City of Los Angeles are partnering to install a Runway Status Lights system at Los Angeles International. The system uses a series of red lights embedded in the pavement to warn pilots if it is unsafe to cross or enter a runway. Los Angeles World Airports is funding the $6 million cost of the system, on which tests will begin at LAX early next year. FAA will be responsible for installing, testing, evaluating and maintaining the system. "This is another valuable tool we're using to reduce the risk of runway incursions," Acting Administrator Bobby Sturgell said.
IATA and Flight Safety Foundation established a partnership "to tackle the global shortage in pilots, engineers and maintenance certification staff." FSF will join the IATA Training and Qualification Initiative to "review the shortage of skilled staff and develop a roadmap and strategy," IATA said.
Aer Lingus exercised its rights under a 2003 agreement with Airbus to purchase four A320s. While the aircraft are valued at $56.7 million each, the carrier said it had "obtained certain price concessions from Airbus."
Hawaiian Airlines parent Hawaiian Holdings reported net income of $7.1 million for 2007, reversed from a net loss of $40.5 million the previous year, on 10.7% boost in revenue to $982.6 million.
Boeing said it "successfully" has completed tests on the 787's all-composite fuselage. The trials were performed on a 787 test section and are part of the manufacturer's certification efforts for the Dreamliner, which have been delayed owing to problems assembling the first aircraft. "The tests. . . couldn't have gone any better," Kevin Davis, 787 fuselage authorized representative and leader of the testing, said.
Abu Dhabi Aircraft Technologies said it began construction on a dedicated single-bay line and light maintenance hangar for Etihad Airways, part of a $500 million, five-year MRO contract signed last year. The hangar is scheduled to be completed in July.
AirBridgeCargo Airlines, the scheduled services subsidiary of Volga-Dnepr Group, took delivery of its second 747-400ERF. The aircraft is leased from GECAS. ABC took delivery of its first 747-400ERF in November and is scheduled to receive another in April. Volga-Dnepr also has firm orders for five 747-8Fs plus five options.
Bombardier officially opened its new manufacturing facility in Queretaro, Mexico, where it will build components for the Q400 and Challenger 850 business aircraft. The facility, which began manufacturing parts in the second half of 2007, currently employs 900 workers and plans to boost that to 1,200 by year end. It supplies electrical harnesses and structural aircraft components.
CAE signed contracts valued at C$52 million ($53 million) with Lufthansa Flight Training and Xiamen Airlines to design and manufacture four full-flight simulators and associated CAE Simfinity training devices. LH Flight Training ordered a CAE 5000 Series A320 FFS and a CAE 7000 Series 747-8I FFS while Xiamen Airlines ordered two CAE 7000 Series 737-800 FFSs along with a suite of Simfinity training devices.
Iberia reached a two-year extension on its handling contract with Iberworld covering services at 41 Spanish airports. ARINC announced a three-year deal with Etihad Airways to provide its ARINC X.400 Message Handling System featuring enhanced message flow, message management and visibility. Gate Aviation, a subsidiary of gategroup, acquired The Caterers UK, a catering company based at Manchester Airport. Gate Aviation, formerly known as IAS/Fernley, provides airlines with cleaning services at Manchester.
Ryanair said it will set up its 27th European and second Scottish base at Edinburgh Airport in September with two new 737-800s operating on 19 routes. Eleven of the new routes were not announced previously. They are Berlin Schoenefeld (four-times-weekly), Bilund (thrice-weekly), Bournemouth (13 weekly flights), Bratislava (four-times-weekly), Krakow (thrice-weekly), Lodz (twice-weekly), Malaga (four-times-weekly), Palma (thrice-weekly), Poznan (thrice-weekly), Stockholm (four-times-weekly) and Wroclaw (twice-weekly).
Airbus "successfully" conducted the first series of flight tests with an A320 powered for the first time by IAE's new SelectOne engine. The SelectOne is the new build standard of the V2500. Airbus expects certification of the SelectOne engine/airframe combination in time for third-quarter deliveries.
China Eastern Airlines formally rejected Air China's bid to raise its stake in the Shanghai-based airline from 12% to just over 26% yesterday and said it will continue its search for a strategic investor with a continued preference for Singapore Airlines.
US National Transportation Safety Board sent two investigators to Jackson Hole to investigate an incident in which a United Airlines A320 "veered off the side of a runway" and "came to rest on its landing gear at about a 90-degree angle to the runway in snow about three feet deep." There were no serious injuries reported.
Emirates will launch six weekly flights from Dubai to Kozhikode from July 1, marking its 10th destination in India. EK initially will operate 777-200s and A330-200s on the route, offering more than 4,000 passenger seats and close to 200 tonnes of belly cargo capacity per week. Gulf Air will launch a four-times-weekly Manama-Shanghai service aboard A340-300s from June 16, upgrading the service to daily with the start of the 2008-09 winter schedule.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, more than doubled its net income in 2007 to $132.4 million from the $59.8 million earned in the previous year.
Ryanair filed yet another complaint with the European Commission alleging illegal state aid, this time highlighting more than €400 million ($594 million) per year in the form of exemptions from environmental taxes granted by the Dutch government to transfer passengers.
IATA said international passenger traffic grew 4.3% in January compared to January 2007, sharply down from 6.7% RPK growth recorded in December and full-year 2007 growth of 7.4%. "January traffic results show that we could be at a turning point," DG and CEO Giovanni Bisignani said, arguing that "the sharp shift in demand growth patterns makes it clear that the US credit crunch is negatively impacting air travel." IATA said North American carriers' international RPKs rose 5% in January, down slightly from 6% in December, while US domestic traffic decreased 3%-4%.
Iberia tallied its 12th consecutive profitable year in 2007 with consolidated net earnings of €327.6 million ($486.5 million), a better-than-fivefold increase over the €56.9 million it earned in 2006. Last year's results were boosted by net gains on the disposal of assets and impairment losses amounting to €196.3 million, including the sale and leaseback of six A320s and the sale of an MD-87. In 2006, such items totaled just €4.2 million.
