Early indications are that CAAC's decision to bar most new domestic entrants from the market until 2010 will have the desired effect, as LCCs and airlines still seeking approval are struggling to move forward in the wake of the regulator's action. Haitong Securities aviation analyst Ma Yin noted that a dozen companies that had expected to enter the market now likely will fail to secure CAAC approval because of the policy announced two weeks ago ( ATWOnline, Aug. 16).
Kang Pacific Airlines will become the United Arab Emirates' fifth airline. Established by Indian aviation tycoon Paul Kang, the new carrier will be based in Fujairah and plans to start operations in October, Gulf News reported. The LCC will fly to the Philippines, Sri Lanka, Bangladesh, the UK and India. The paper said Kang will invest $10 million of his own money in the airline, which will start with two leased DC-10s and one 747.
AZAL took delivery of its first ATR 42-500, part of a $100 million contract signed in January for two 42-500s and four 72-500s ( ATWOnline, June 19). The Baku-based carrier will take delivery of its first 72-500 later this year and the remainder in 2008.
Aeroflot said it is converting two MD-11 passenger aircraft into freighters, with Boeing to handle the modifications in conjunction with SASCO, a subsidiary of Singapore Technologies Aerospace. "By putting [the MD-11s] in the hands of the original manufacturer for conversion, we can extend the life of the aircraft and maximize their capabilities," Aeroflot-Cargo GD Andrey Goryashko said. Modification work is slated to start in November 2008. A converted MD-11 has a capacity of 205,400 lb. structural payload at a range of 3,486 nm. (6,456 km.) and is capable of 630,500 lb.
ILFC announced the following lease contracts: Bangkok Airways for one new A319-100 for six years with delivery in January 2009; Zoom Airlines for one used 757-200ER for four years and eight months with delivery in February 2008; Air Austral for two new 777-300ERs for eight years each with delivery in February and March 2009; Kenya Airways for one new 737-800 for eight years with delivery in October 2008; Eos Airlines for one used 757-200ER for five years with delivery in April 2009; Aerolineas Argentinas for one used A340-300 for six years with delivery this October; Iberia for one used
JetBlue Airways will operate daily flights from Fort Lauderdale to Charlotte, Raleigh-Durham (both from Jan. 10) and Richmond (from Nov. 1) through April 30. It also will launch daily Orlando International-Burlington service on Jan. 10. All flights will be aboard E-190s. Cargolux Airlines International will add a sixth weekly Luxembourg-Mexico City flight starting Oct. 18.
Ryanair's effort to simplify the check-in and boarding process, cut costs and increase ancillary revenue will include a new £2/€3 ($4.00-$4.07) fee charged to each person using an airport check-in desk beginning Sept. 20.
Volga-Dnepr Group, Motor Sich and Antonov Design Bureau signed an agreement at the MAKS air show outside Moscow last week to resume production of An-124-100 freighters and modernize existing aircraft of the type. VD and Motor Sich, a Ukrainian company, last winter announced the formation of a joint venture company to manage the re-launch of the An-124-100F ( ATWOnline, Feb. 8). ADB said last week it will join the venture, known as GLA Cargo Aircraft. Production timelines were not announced.
Bmi will postpone its planned services to the US from London Heathrow, which it expected to start when the EU-US open skies agreement takes effect, to at least 2009 owing to continuing operational difficulties at LHR that may be exacerbated by the reorganization scheduled to follow the March opening of the new Terminal 5, Chairman Michael Bishop told The Times. He said transfer traffic has declined at LHR as passengers look to avoid the long lines and delays plaguing the airport.
Austrian Airlines Group carriers flew 1.99 billion RPKs in July, down 19.2% on the year-ago month. Capacity fell 18.7% to 2.5 billion ASKs and load factor dropped 0.4 point to 79.5%. Jat Airways carried 186,480 passengers in July, up 11% from the year-ago month. Load factor soared 8.5 points to 77%.
Air India and Indian Airlines took the final regulatory step toward their merger last week as the Ministry of Corporate Affairs issued its final approval to the application, thus establishing the new National Aviation Co. of India Ltd. that will fly under the Air India name.
ATR and Batavia Air signed a contract for 10 ATR 72-500s plus 10 options, the manufacturer announced, marking its first order from an Indonesian carrier. Batavia will fly the 74-seat turboprops on regional routes currently operated with Airbus and Boeing narrowbodies. Deliveries will extend until 2010, ATR said, adding that the Batavia Training Academy is "considering" acquisition an ATR flight simulator.
Delta Air Lines will launch daily Salt Lake City-Paris Charles de Gaulle service starting June 2, 2008. The 767-300ER flight will be the first transatlantic operation ever from the Utah capital, Delta said. The aircraft will have capacity for up to 214 passengers and 5 tons of cargo.
Alitalia flew 3.75 billion RPKs in July, the same number as the year-ago month. Capacity fell 0.1% to 4.72 billion ASKs, lifting load factor 0.1 point to 79.5%. WestJet flew 1.05 billion RPMs in July, up 17% on the year-ago month. Capacity grew 16% to 1.27 billion ASKs and load factor rose 1.1 points to 82.6%. Air New Zealand reported a 6.7% year-over-year growth in July passenger numbers and an 11.4% rise in RPKs to 1.4 billion. Load factor was up 6.2 points to 82.2% and yield increased 0.2%.
Alaska Air Group said in a filing to the US Securities and Exchange Commission that it expects to incur a full-year operating loss from its regional operation in excess of the $13.2 million suffered in the first six months, "but not a multiple of it." Horizon Air capacity is expected to increase 15%-16% in the third quarter, with unit cost falling 6%-7% to 16.7-16.8 cents. Revenue will exceed expenses during the period, but AAG expects costs to surpass revenue in the fourth quarter.
Bombardier opened a support office at Tokyo Haneda to provide technical and customer assistance to CRJ and Q-series operators in the region. It also is scheduled to open a spare parts depot for CRJ and Q-series aircraft at Narita in the fourth quarter. Separately, the manufacturer chose Australia's Hawker Pacific as a recognized service facility for Dash 8 and Q series aircraft. C checks and other heavy maintenance will be performed at HP's Cairns shop.
Norwegian will open its seventh base at the new airport in Rygge just south of Oslo. It initially will launch operations with a 737-800 on Feb. 14, with a second aircraft entering service March 13. It will serve Alicante, Athens, Barcelona, Belgrade, Bergen, Budapest, Istanbul Sabiha Gokcen, London Stansted, Malaga, Marrakech, Palanga, Szczecin, Valencia and Warsaw from the airport. "We expect further expansion, both in the form of new routes and more planes," CEO Bjorn Kjos said, adding that RYG will be "state of the art. .
Aegean Airlines reported a €6.4 million profit for the six months ended June 30, its first reporting period as a publicly listed company, a nearly sixfold increase over the €1.1 million earned in the year-ago semester. "The recent IPO represents an important milestone for our company since the gross proceeds of €135 million, coupled with our improved positive results, give us the necessary tools to implement our growth plans with financial security," Executive VP Eftichios Vassilakis said.
A small hole in a fuel tank caused by a loose wing slat bolt was the likely cause of the Aug. 20 China Airlines 737-800 post-landing fire and explosion at Naha Airport in Okinawa, Japan's Aircraft and Railways Accidents Investigation Commission said yesterday.
Dubai Aerospace Enterprises plans to purchase at least 125 aircraft for its DAE Capital leasing segment over the next five years, CEO Robert Genise told Bloomberg News, adding that the company will "probably" need $4-$4.25 billion in debt financing for the acquisitions. DAE Capital is considering a future IPO and will focus principally on sale/leaseback arrangements with airlines, he told the news service.
Russia's Atlant-Soyuz is the customer for four 737-700s that previously had been listed as unidentified on Boeing's website, the manufacturer announced from MAKS outside Moscow. The aircraft are worth $249 million at current list prices, although the order was placed last year. One of Russia's largest charter airlines, A-S counts the Moscow city government as one of its principal customers and also offers scheduled domestic services from its Moscow Vnukovo base, Boeing said, adding that the carrier "recently" added two leased 737 Classics.
Pacific Blue, the international arm of Australia's Virgin Blue, will launch domestic services in New Zealand on Nov. 15. Initially the carrier will dedicate two 737-800s to flights between Auckland, Wellington and Christchurch. It announced promotional fares from NZ$39 ($27.17), while normal fares will be equal to or above those of Air New Zealand, according to ANZ GM-Short-Haul Airlines Norm Thompson. ANZ is expected to announce a further refinement of its domestic product at its Aug.
Vatican partnered with Mistral Air, a small charter company based at Rome Ciampino, to offer low-cost flights to pilgrims, Italian media reported. The jets will have interiors decorated with sacred inscriptions and will travel to holy sites such as Fatima and Santiago de Compostela. Mistral eventually plans to offer long-haul flights to sites in Latin America or elsewhere. First flight is scheduled for Aug. 27 to Lourdes.
