Deccan Aviation VP-Finance Anand Ramachardran said that the Kingfisher Airlines-Air Deccan merger likely will be completed in April following a sale of shares that will raise $300 million to finance immediate expansion needs ( ATW, February 2008). "At the present moment, we are in talks to appoint a suitable merchant banker for the share sale by the end of this month," he said this week at a financial conference in Mumbai.
Curtiss-Wright Controls reached a $16 million multiyear deal with Saab Aerostructures to provide the large cargo door mechanical system for the 787. Features include flight-critical subassemblies such as the lift, pull-in, latching, locking and vent systems. Production will take place at CWC's facility in Shelby, N.C.
Emirates Trading Agency-Assoc. Construction confirmed plans to launch a regional airline in India in October under a joint venture agreement with an unidentified partner, the Arab Air Carriers Organization reported. The new airline will base in Chennai and/or Bangalore and will fly to southern destinations. ETA-AC reportedly is negotiating with Embraer, Bombardier and ATR for aircraft.
The US House of Representatives passed an extension of temporary FAA funding through June 30, including providing $2.76 billion in contract authority to restart the currently suspended Airport Improvement Program.
Air Malta signed a three-year labor agreement with the Air Line Pilots Assn.-Malta retroactive to Aug. 1, 2007. Air Malta said pay increases are weighted toward the end of the contract "in line with the airline's requirement to continue its financial recovery."
All flights to and from Greek airports will be cancelled from Tuesday midnight until Wednesday midnight due to air traffic controllers' participation in a general strike called by Greece's two largest unions, which are protesting the government's plans to reform pensions. Separately, French ATC staff are conducting strike actions this week, affecting mainly flights at Paris Orly. The CGT union is opposing plans to move ORY controllers to Roissy before regrouping them on one site near Paris in 2015, Reuters reported.
Eos Airlines will launch daily flights from London Stansted to Newark on May 5 and Dubai on July 6 aboard its 48-seat 757s. It already serves New York JFK. Eos claimed it currently carries one out of every nine business class passengers traveling between JFK and London. Virgin America yesterday launched thrice-daily San Francisco-San Diego, expanding to five-times-daily on March 9 aboard A320s. Aer Lingus will launch daily Belfast International-Paris Charles de Gaulle on March 30. It will cease operating one of its twice-daily BFS-Amsterdam flights.
Airbus is off to a strong start in 2008 with the booking of orders for 238 aircraft in January and the delivery of 37, including Singapore Airlines' second A380. Some orders were announced last year but were signed in January. Last month's most significant commitment was the 110 A320s ordered by China Aviation Supplies Import and Export Group last fall ( ATWOnline, Nov. 27, 2007).
Delta Air Lines and Northwest Airlines have briefed their pilot groups, both of which are represented by the Air Line Pilots Assn., on a proposed merger, according to multiple published reports.
Thales on Monday opened a 15,240-sq.-m. facility in Montreal to accommodate 145 employees and future growth. The inauguration marked the company's 10-year anniversary of aerospace operations.
Ryanair will establish its 26th European and fifth Spanish base at Reus, outside Tarragona. From October, the LCC will base two new 737-800s at the airport and add five new routes, bringing the number of destinations served from Reus to 12. New flights will go to Palma, Paris Beauvais, Santander, Santiago de Compostela and Seville. It will add a Birmingham service in June. It also has a base in Girona, approximately 100 km. northeast of Barcelona. REU is some 90 km. southwest of Barcelona. Ryanair expects to handle 1 million passengers at REU next year.
Air France KLM's negotiations with Alitalia received a slight boost this week when Renato Brunetta, an official with the Forza Italia party that has been an opponent of the sale, told reporters that while FI believes the government succeeding that of outgoing Prime Minister Romano Prodi should conclude the deal, if one is struck between AF KLM and AZ in the meantime FI "would respect it." FI reportedly is leading opinion polls ahead of the April elections ( ATWOnline, Feb. 7).
JetBlue Airways CEO Dave Barger confirmed that the LCC hopes to unveil its "enhanced cabin" next month. The product, designed to appeal to business travelers and passengers willing to pay higher fares, will feature seats with extra legroom in the front of its A320s, he told Bloomberg News. The carrier introduced a refundable fare option last month. Barger also told Bloomberg that JetBlue expects to increase unit revenue 11% in 2008, assuming it pays less than $2.50-$2.55 per gal. for fuel after hedges.
In a major fleet upgrade, Garuda Indonesia plans to order 10 777-200ERs at next week's Singapore Air Show. According to Bisnis Indonesia, the airline will use the aircraft to support expansion plans in Europe, the Middle East and East Asia. Garuda Operations Director Ari Sapari told media that the MOU with Boeing will be signed in Singapore.
Iberia flew 4.35 billion RPKs in January, up 1% from the year-ago month. Capacity climbed 1.4% to 5.63 billion ASKs, lowering load factor 0.3 point to 77.3%.
UK Home Secretary Jacqui Smith told reporters yesterday in Washington that the US is asking EU members to enhance security measures on westbound transatlantic flights in exchange for relaxed visa regulations. An MOU reportedly was sent to the 27 EU member states asking them to allow US air marshals on all flights operated by US carriers, The Guardian reported. Currently, seven countries allow US marshals to board flights at their point of origin.
DHL Express said it will reduce its workforce in the US by 600 employees, part of an ongoing effort by the German delivery giant to cut costs in its money-losing US business. The reduction will be achieved through layoffs, attrition and the suspension of some existing open positions. "This action is one of several measures we are taking to improve our competitive position in the US market, which is strategic to our global growth plan," DHL Express USA CEO Hans Hickler said. "These changes will help us better align our cost structure."
Jetstar Airways CEO Alan Joyce claimed Monday that Australia has evolved into "the most competitive market of any aviation market anywhere in the world." Speaking at a breakfast in Melbroune, Joyce said that despite competition from Virgin Blue and now Tiger Airways, Jetstar will generate pre-tax earnings of A$1.6 billion ($1.44 billion) in the 2007-08 financial year. In the prior fiscal year it contributed A$115 million to Qantas's profit.
Iberia won three contracts with Iberworld for aircraft maintenance and logistical support services to be conducted at its shops in Madrid. Slated to begin this month and continue to December 2009, the first contract covers inspections and maintenance as well as disassembly and assembly of 10 CFM56-5Bs powering A320s. The second calls for Iberia Maintenance to service Iberworld aircraft components. The third contract entails complete maintenance of Iberworld's Airbus aircraft including overhauls, structural and interior inspections and modifications.
US FAA will deploy 19 new air traffic control tower simulators over the next 18 months and an additional six at its Oklahoma City Academy. Simulators will be provided by Adacel Systems of Orlando. They already are in use in Chicago, Miami, Phoenix and Ontario, Calif., and are scheduled to be installed at New York JFK, Los Angeles, Oakland, Washington National, Dallas/Fort Worth, Atlanta, Denver, Philadelphia, Cincinnati, Cleveland, San Antonio, Memphis, Honolulu, Orlando, Charlotte, Minneapolis, Boston and Newport News.
S7 Airlines said it increased full-year turnover 24% in 2007 to more than RUB30 billion ($1.2 billion) as passenger numbers climbed 16% to 5.7 million. The Russian airline reported a net profit of RUB61 million in 2006, down 44.5% from the previous year, but did not divulge its net result for 2007. It did say EBITDA "reached" RUB2.8 billion but did not provide a year-ago comparison. It said the results were based on "preliminary data."
Aeroflot, which celebrated its 85th birthday on Feb. 9, said it carried more than 8 million passengers last year, which represented a 12% increase over 2006. It said it is targeting 9.5 million in 2008 and that it expects to grow domestic passengers by 35.6%. Lufthansa Group airlines flew 11.56 billion RPKs in January, up 30.3% from the year-ago month. Capacity rose 29.4% to 15.12 billion ASKs and load factor was up 0.5 point to 76.5%. The LH mainline flew 9.5 billion RPKs, up 7%, against a 5.6% increase in ASKs to 12.34 billion, lifting load factor 0.9 point to 76.9%.
Etihad Crystal Cargo introduced SMS tracking, which allows customers to send a text message to a specified phone number to get a "real-time" status update on shipments. "It is vital for our customers to know at any time exactly where in the world their shipment is located," Etihad Airways Executive VP-Cargo Des Vertannes said. He added that the tracking service, supplied by UAE-based Ontrack Systems, costs users the same price as a standard text message and is linked to the carrier's IT platform.
Big Sky Airlines parent MAIR Holdings reported a $15.2 million loss for the fiscal third quarter ended Dec. 31, widened from a $1.1 million deficit in the year-ago quarter, and confirmed Big Sky will cease operations in the western US on March 8. It ceased flying in the East last month ( ATWOnline, Dec. 21, 2007).
