News from Travel Technology Update: Amadeus will provide Virgin Blue with distribution, e-ticketing and interline solutions that work alongside the carrier's existing passenger services system, Navitaire's OpenSkies, while in addition, V Australia, Virgin Blue's new long-haul airline, will adopt the Amadeus Altea Customer Management System. The standalone solutions for the company's short-haul operations will manage connectivity on behalf of Virgin Blue's interline and GDS partners.
CHAMP Cargosystems announced agreements with AeroRepublica, Air Namibia, flyLAL Lithuanian Airlines, TESIS and Uzbekistan Airlines to transition the airlines to fully automated cargo systems. Contract terms were not disclosed.
Virgin America lost $34.8 million during the third quarter, its first full quarter of operation, according to statistics released by the US Dept. of Transportation and cited by Dow Jones. Operating revenues totaled $16.2 million against $51.6 million in expenses.
In anticipation of the decision of the Alitalia board expected today on the bidder with which AZ will enter exclusive talks for sale of the government's 49.9% stake, Air France KLM and Air One each outlined their plans for the loss-making flag carrier.
Boeing said Friday that it is "set to begin full production" of 777 freighters, noting that its engineers "have completed more than 90% of the design work for the new cargo airplane." Assembly of the first 777F will start at its Everett plant "in early 2008," the manufacturer said. "Suppliers already have begun production of parts and major components for Boeing's newest freighter," it said in a statement. "The first 777 freighter will be delivered to launch customer Air France in the fourth quarter of 2008."
Singapore Airlines will launch four-times-weekly Singapore-Houston Intercontinental-Moscow Domodedovo service on March 20, creating the first direct link between Houston and the Russian capital and complementing SIA's thrice-weekly SIN-Dubai-DME flights. Houston route will be operated with a 777-300ER. Air New Zealand will launch twice-weekly Auckland-Beijing service on July 18 using 777-200ERs.
European Consumer Centre Network, an independent consumer protection body, received 2,979 complaints from air passengers in 2006, up 96% from the 1,521 it received in 2005. The complaints relate solely to cross-border problems, meaning those received represent the "tip of the iceberg," according to the organization, which presented its report on air passenger rights to the European Commission this month. Problems with baggage represent 33% of the complaints, cancellations 26%, delays 16% and denied boarding 4%.
President George Bush signed the Fair Treatment for Experienced Pilots Act into law late Thursday, hours after it was approved by the US Senate, raising the mandatory retirement age for US airline pilots to 65 from 60, which had been in place since 1959 ( ATWOnline, Dec. 14). "The determined efforts of Congress have averted a lengthy federal rulemaking process while enabling some of our nation's most experienced pilots to keep flying," FAA said in a statement.
Airbus reached a historic milestone Friday, delivering its 5000th aircraft (an A330-200 to Qantas) at a special, although low-key, ceremony in Toulouse. Its first aircraft, an A300B2, was delivered to Air France in May 1974 and nine years passed before it delivered its 1,000th. With growing acceptance of its expanding product line, the 2000th was delivered in 1999, the 3000th in 2002 and the 4000th in 2005. Since 2001, Airbus has secured at least 50% of the market for airliners over 100 seats.
New York Aviation Rulemaking Committee released its report last week outlining possible solutions to airspace congestion in the US Northeast and the US Dept. of Transportation is expected to follow up this week with a formal proposal for reducing delays at New York JFK, LaGuardia and Newark.
Republic Airways Holdings board authorized the purchase of up to $100 million of the company's common stock over the next 12 months. "Our business model is structured to provide Republic with long-term, secure and predictable earnings and cash flows regardless of whether or not the major airlines undertake consolidation," Chairman, President and CEO Bryan Bedford said. RAH is scheduled to take delivery of 31 aircraft by the end of the 2009 first quarter.
Asiana Airlines will reach "a final decision soon" on fleet expansion, a spokesperson confirmed to ATWOnline. The airline is considering 787s, 747-8s, A350 XWBs and A380s. The order could be for as many as 20 long-haul aircraft. It is unclear if it will be mixed or will focus on one type.
Austrian Airlines Group CEO Alfred Oetsch told ATWOnline at last week's Star Alliance meeting in Beijing that the carrier is scouring the global aircraft market in an attempt to add two A320s to its fleet by 2009. The aircraft, if acquired, will be outfitted with a new premium business class cabin for flights to the Middle East and Central Asia. As far as interest in any of the Q400s being sold by SAS Group (see story above), Oetsch said, "It would make sense to replace some of the smaller Dash 8-300s with Q400s, but we are not under pressure and haven't planned a fleet renewal."
AWAS Friday announced an order for 31 firm 737NGs plus 19 purchase rights, raising to 39 the number of aircraft the lessor has on order with Boeing. The order is worth $2.3 billion at list prices. President and CEO Franklin Pray called the deal "an appropriate way for AWAS to finish off what has been a very exciting and redefining year for the company . . .This time a year ago AWAS would not have been in a position to place an order of this magnitude." Based in Dublin, it currently owns and manages 315 aircraft.
Norwegian flew 459 million RPKs in November, up 45% from the year-ago month, against a 31% rise in ASKs to 604 million. Load factor rose 7 points to 76%.
Engine Alliance GP7200-powered A380 received type certification from US FAA and EASA, the GE Aviation/Pratt & Whitney joint venture announced. The GP7200 accumulated 2,855 engine flight hr. along with extensive ground testing and is scheduled to enter service next year with Emirates.
American Airlines announced the recall of 247 furloughed former TWA flight attendants for next year with a return to service scheduled for March. AA has recalled more than 900 cabin staff in 2007.
While JetBlue Airways executives continued to insist that Lufthansa's eye-opening $309.6 million investment in the New York-based LCC was nothing but a financial transaction, Lufthansa revealed Friday that it may have more strategic goals in mind. "They're a premium product supplier. They have a stronghold along the East Coast that we wouldn't find elsewhere, and they're very complementary to our routes and our alliance partners," LH CEO Wolfgang Mayrhuber was quoted as saying at a Friday news conference.
The grounding and disposal of its 27 Q400s continues to be a major issue at SAS Group, which is faced with choosing a replacement while pursuing compensation from Bombardier and deciding what to do with the employees charged with operating the turboprops, CEO Mats Jansson said during last week's Star Alliance meeting in Beijing.
Qantas yesterday said it now expects its pre-tax profit for the fiscal year ending next June 30 will increase approximately 40% year-over-year, rather than the 30% forecast last August. It posted a A$1.03 billion ($907.8 million) pre-tax profit in the 12 months ended June 30, 2007. "Since then, Qantas's operating businesses have continued to perform strongly, with the results for the first five months of 2007-08 above forecast and the forward booking profile also remaining robust," CEO Geoff Dixon said.
China Eastern Airlines said yesterday that it formally has established a "strategic cooperation partnership" with Singapore Airlines and parent Temasek ahead of next month's shareholder vote on SIA/Tamasek's 24% stake purchase, and Chairman Li Fenghua insisted the deal is final, pointing out that minority shareholder Air China would be defying the Chinese government if it voted to block the sale.
Babcock & Brown announced the acquisition of seven aircraft currently on lease with four carriers. The planes, worth a combined $250 million, will increase the lessor's portfolio to 54 aircraft, it said. The purchase comprises four A319-100s on lease to US Airways, one A320-200 on lease to Clickair, one 737-900ER on lease to SpiceJet and one 747-400 on lease to United Airlines. B&B CEO Colm Barrington said, "Market conditions remain robust, with strong demand from airlines for new aircraft and insufficient capacity from manufacturers to meet this demand."
Reluctant to pursue acquisition opportunities currently available in Europe, Lufthansa instead opted to invest approximately $300 million in a recently loss-making carrier based in one of the world's most saturated and volatile markets. The German giant yesterday announced the acquisition of 19% of the equity of JetBlue Airways, a move that Chairman and CEO Wolfgang Mayrhuber said marked "a compelling opportunity to invest in the US point-to-point carrier market as the industry continues to evolve."
United Airlines remains focused on its product and on improving the customer experience rather than investing in new aircraft because it sees its fleet as "relatively young," Chairman and CEO Glenn Tilton told ATWOnline during the Star Alliance meeting in Beijing. He said the 104-strong widebody fleet is not the first priority for replacement. He said he sees the 777-200LR as an excellent aircraft for UA and he also will have a look at the 747-800. Regarding its 767s, UA is evaluating the installation of blended winglets.
GE Commercial Aviation Services yesterday announced that it has ordered 53 737-800s and two 777-300ERs collectively valued at $4.5 billion. The massive order includes an exercise of existing options and was listed last week by Boeing as placed by an unidentified customer. "This additional order with Boeing will allow GECAS to help our customers around the world benefit from. . .leading-edge operational efficiency," President and CEO Henry Hubschman said.
