British Airways yesterday gave little credence to concerns that it has fallen behind major European rivals in the rush toward consolidation, insisting it must move at its own pace. Instead it confirmed an increase in its Iberia stake to 10.1% from 10% that "ensures we continue to derive tax and accounting benefits," according to CFO Keith Williams.
Boeing Commercial Airplanes President and CEO Scott Carson insisted yesterday that the 787 program is regaining its footing and first flight by the end of the second quarter remains realistic. The supply chain "is sorting itself out in a hurry," Carson said at a New York investors conference, available via webcast. "We think we've told you the truth and that we will fly in June. I would caution that 'June' could mean the first week of July or the third week of June. Weather could have an effect."
Ethiopian Airlines this week inaugurated a new 737NG full flight simulator from Flight Safety International. It is ET's second FFS; it has been operating a 767/757 simulator for 15 years. CEO Girma Wake said the carrier will save at least $800,000 a year by training its pilots in Addis Ababa.
US Dept. of Transportation released its final Air Travel Consumer Report for 2007 and said that, according to the Bureau of Transportation Statistics, the 20 US carriers recording ontime performance reported a 73.4% ontime arrival rate, down 2 points from 2006. In addition, mishandled baggage reports increased 4.5% to 7.03 per 1,000 passengers while consumer complaints soared 58.2%. In December, airlines reported a 64.3% ontime arrival rate, down from 70.8% in the year-ago month. Cancellations of scheduled domestic departures rose to 3.5% from 3% in December 2006.
Starling Advanced Communication of Israel signed an MOA with EMS Defense & Space Systems to produce and market a satellite-based Ku-band airborne antenna system for the US commercial airline IFC market. The two-way, low-profile broadband antenna system will offer full global coverage.
SAS Group reported net income of SEK636 million ($98.6 million) for 2007, significantly lower than a SEK4.74 billion profit in 2006 that was attributable mostly to that year's sale of its 65% holding in the Rezidor Hotel Group.
Hainan Airlines will increase its 2007 net profit by more than 200% from the prior year when it earned CNY181.6 million ($25.2 million), parent HNA Group said. It credited the "rising value of [the yuan] and continuous development of [the] aviation industry" for the projected result. Hainan Airlines is set to be merged into Grand China Air ( ATWOnline, Nov. 30, 2007).
ATR and Lonrho Air signed an MOU for the purchase of two ATR 72-500s. The deal follows an initial order for eight aircraft announced last month ( ATWOnline, Jan. 14). All 10 -500s will be deployed by Fly540, a Nairobi-based airline belonging to the pan-African investing conglomerate and will be configured with 66 seats, including 12 in first class, and equipped with PW127M engines, ATR's Elegance Cabin and IFE.
UK Dept. for Transport said the number of safety checks scheduled on foreign aircraft will more than double in the year April 1, 2008-March 31, 2009, to 600 from 250 in 2007-08 and rise to 1,000 in 2009-10. CAA ramp inspections of passenger and freighter aircraft are unannounced and cover licenses and documents, flight planning, safety equipment, cargo loading and airframe/landing gear/engines.
Air France KLM will have to wait until at least Feb. 20 to conclude negotiations with Alitalia following an Italian court's decision to hold a hearing that day on Air One's challenge to the exclusive discussions ( ATWOnline, Feb. 5). AZ Chairman Maurizio Prato said AF KLM had intended to begin meeting with AZ unions starting Feb. 15, according to Reuters. Doubts about the sale's progress already had risen with the recent resignation of Prime Minister and AF KLM supporter Romano Prodi.
Armavia will be the first non-Russian carrier to take delivery of the Superjet 100, Transport Minister Igor Levitin said yesterday, according to press reports from Yerevan. Aeroflot will be the first airline to fly the new regional jet ( ATWOnline, Sept. 12, 2007). Armavia signed a $50 million contract for two aircraft and will take delivery this year, Levitin said.
United Airlines flew 8.73 billion system RPMs in January, a 5.3% decrease from the year-ago month. Capacity declined 3.4% to 11.41 billion ASMs, dropping load factor 1.5 points to 76.5%. British Airways flew 8.61 billion RPKs in January, down 1.6% from the year-ago month, as capacity fell 0.6% to 12.45 billion ASKs. Load factor dropped 0.7 point to 69.2%. Southwest Airlines flew 5.49 billion RPMs in January, up 5.9% from the year-ago month. Capacity rose 5.3% to 8.55 billion ASMs and load factor improved 0.4 point to 64.2%.
Boeing will decide in the next couple of months whether to ramp up 737NG production, Commercial Airplanes President and CEO Scott Carson said. The narrowbodies were built at a monthly rate of 27.5 in 2007. Carson, speaking yesterday at an investors conference, said he soon will review a company analysis on 737 production in recent months to assess both Boeing's own production capabilities and market demand. "It feels like there might be. .
Clickair CEO Alex Cruz declined to comment publicly on rumors that his carrier has launched merger negotiations with Vueling Airlines. Rumors of a tie-up between the two Barcelona-based LCCs are not new but gained momentum this week after Inversiones Hemisferio, Vueling's largest shareholder, claimed it was talking with various airliness including Clickair.
GKN Aerospace announced delivery of the first blended winglet for 737-300/-500 aircraft ahead of schedule. In April, GKN finalized a multiyear agreement with Aviation Partners Boeing covering the supply of 200 737-300/-500 blended winglet sets as well as the design and production of 300 sets of 11-in. winglets for the 767-300ER.
Norwegian will add a third 737 at its Warsaw base in June to support the launch of five new routes and an increase in frequencies on five existing routes. It will operate 22 routes out of Poland this summer including the following new services: Warsaw to Oslo Rygge (thrice-weekly), Trondheim (twice-weekly) and Split (weekly); twice-weekly Wroclaw-Oslo; twice-weekly Krakow-Stavanger.
Finnair reported a net profit of €101.6 million ($150.5 million) for 2007, turned around from a net loss of €13.6 million in 2006, on a 9.6% lift in revenue to €2.18 billion. President and CEO Jukka Hienonen said one-time restructuring costs were "evident" in the 2006 results but changes made to the operating model that year "laid a solid foundation" for the strong profit earned in 2007. Finnair's 2007 results also were helped by the sale of Swedish subsidiary FlyNordic.
SkyEurope Airlines' new CEO said the carrier is in a "turnaround" and hopes to stem its losses and ensure financial viability. It launched out of Bratislava in February 2002 with a single Brasilia. By last September it was operating 14 737-500s and serving 44 destinations in 10 countries. It lost €24.1 million ($35.7 million) in the fiscal year ended Sept. 30, 2007 ( ATWOnline, Dec. 3, 2007), and €57.3 million in the prior year.
Qantas's long-running dispute with its engineers has been resolved with a four-year "in principle" Enterprise Bargaining Agreement between the carrier and the Australian Licensed Aircraft Engineers Assn. The pact, which will be the subject of a formal vote, covers nearly 1,600 engineering employees. They had been lobbying for a 5% annual pay increase but the new agreement settles at 3%, a figure that all other QF unions have accepted.
US Dept. of Transportation submitted a $68 billion FY09 budget request to Congress including $14.6 billion to fund FAA, down from $14.9 billion enacted for FY08.
Iridium Satellite said Avianca Airlines selected Avionica's Iridium-based satLINK Communications Module for its 14 757s and 767s. Technology offers voice and data capabilities to complement radio cockpit communications.
Atlantic Airlines signed long-term lease agreements with BAE Systems Regional Aircraft for an additional six ATP freighters, which will bring the UK cargo carrier's fleet of the type to 11. The aircraft will be converted at by Romaero in Bucharest, with delivery of all six by the third quarter.
Aeroflot said its net profit through the first nine months of 2007 nearly doubled to $357.3 million according to International Financial Reporting Standards, from $186.3 million in the year-ago period. Consolidated revenue climbed 31.9% year-over-year to $2.8 billion against a 21.9% rise in expenses to $2.28 billion. In a statement, Deputy DG-Finance and Planning Mikhail Poluboyarinov cited "effective control of fuel costs, favorable market conditions and profitable currency exchange rates." SU now operates a fleet of 83 aircraft to 93 destinations in 47 countries.
