Aeromexico increased its Austin-Mexico City service to daily from four-times-weekly. Flights are operated by Aerolitoral ERJ-145s. AirTran Airways yesterday increased its Milwaukee-Las Vegas frequency to daily.
US Transportation Security Administration announced plans to begin testing advanced technology x-ray machines, including multiview and high definition x-rays, at airports "in the coming weeks." L3 Communications, Smiths Detection and Rapiscan Systems each will lease seven AT x-ray machines to TSA. Total value of the three contracts is $1.4 million, with options to purchase additional units.
US Dept. of Transportation yesterday asked for public comment on possible changes to the rules governing airline oversales, including a potential increase in the maximum compensation due to passengers bumped from oversold flights.
Air Transport Assn. said data from the first quarter reveals that US airlines' costs rose 10.6% compared to the year-ago quarter. "Costs of running an airline continue to rise. . .driven primarily by a 12.6% [first-quarter] cost surge in fuel," VP and Chief Economist John Heimlich said. "Fortunately, airlines were able to compensate with a 16.7% improvement in fuel efficiency and continued vigilance on other controllable items." The three largest cost components were labor (24.5%), fuel (23.4%) and transport-related expenses (13.9%).
Dubai International Capital said it purchased a 3.12% stake in Airbus parent EADS through its Global Strategic Equities Fund. Reuters reported that the stake is worth more than $830 million and makes the fund EADS' fifth-largest shareholder. DIC, which is wholly owned by the Dubai government, said in a statement that it is confident in the eventual success of Airbus's "comprehensive restructuring program."
Pluna placed a firm order for seven CRJ900 NextGens plus eight options, becoming the first South American customer for the type, Bombardier announced. The order is worth approximately $261 million at list prices and would increase to some $571 million if all options are exercised. Delivery schedule was not announced.
Precision Conversions received an order for a 15-pallet 757-200 freighter conversion from Cargo Aircraft Management. Work on the ex-Delta Air Lines 757 will begin in September at the Flightstar facility in Jacksonville. Aircraft will be redelivered to CAM in December.
Gate Gourmet reached an agreement to acquire deSter Holding of Amsterdam, the world's leading supplier of items such as cutlery, chinaware and amenity kits, according to Gate Gourmet, which added that deSter also owns Supplair, a provider of "alternative airline meal solutions assembled off-airport." Private equity fund group EQT has owned deSter since 1999. The company, which had sales of €235 million ($320.1 million) in 2006, has operations on three continents and more than 350 airlines as customers. Purchase price was not disclosed.
Austrian Airlines Group sees even more possibilities for its Focus East strategy of operating to secondary destinations in Eastern Europe and Central Asia ( ATWOnline, June 13). "In the next 10-15 years, there still will be many opportunities for us," CCO Josef Burger told this website, adding that all areas within range of medium-haul aircraft, or around 5 hr. flying time from its Vienna hub, are in play. It already is looking for new destinations in countries like Kyrgyzstan or Tajikistan.
Rolls-Royce announced that ILFC chose the Trent 1000 to power 40 of the 74 787s it has an order ( ATWOnline, June 20). The deal is worth $1.3 billion at list prices and supersedes a previous contract covering 10 aircraft that was announced last summer. Rolls said the order represents the largest single purchase it has received from the lessor and that it now has orders and options for more than 500 Trent 1000s from 15 customers.
Chongqing Airlines operated its inaugural flight, an A320 service to Shanghai, last weekend ( ATWOnline, June 19). It will fly the route five-times-weekly but eventually expects to increase service to daily.
There appears to be a price to be paid for popularity, as Boeing is coming under pressure from customers to offer more versions of the 787 with increased range. High on customers' wish lists is more capability for the proposed 787-10, which would necessitate a higher takeoff weight and significant structural changes. Several airlines revealed to ATWOnline at Sunday's rollout event in Seattle that they want the 787-10 to have the same range as the -9 (8,500 nm.) but to carry 50 more passengers.
Northwest Airlines flew 6.96 billion consolidated RPMs in June, down 0.7% from the year-ago month, as domestic traffic fell 2.1% and international rose 1.2%. Capacity was up 0.3% on a 2.7% domestic decline and 5.2% international lift. Load factor dropped 1 point to 88% as domestic rose 0.5 point to 87.9% and international declined 3.5 points to 89.6%. SAS Group airlines flew 3.99 billion RPKs in June, up 6.6% from the year-ago month, against a 6.7% rise in capacity to 5.22 billion ASKs. Load factor slipped 0.1 point to 76.4%.
Air Berlin yesterday said the order for 25 787s placed during the weekend's festivities in Seattle ( ATWOnline, July 9) included options and purchase rights for a further 25, making it the largest Dreamliner order from a European airline.
ACTS, the MRO provider 30% owned by Air Canada parent ACE Aviation Holdings, reached new 10-year agreements with both TACA and Mexico's Volaris for MRO work on components and related logistics in deals valued at a combined C$200 million ($190.5 million). ACTS President and CEO Chahram Bolouri said the company "anticipates strong revenue growth" in its engine and component businesses for 2007 and that its acquisition of El Salvador's Aeroman ( ATWOnline, Dec.
Touting the success of last year's €400 million ($544.6 million) IPO, Aer Lingus said it remains on track for "mid-teen operating profit growth" for full-year 2007. Operating profit in 2006 was €76 million, reduced from €81.4 million the year before.
Iberia confirmed Friday that it brought forward its next board meeting, originally planned for July 26, to this Thursday but did not confirm speculation that the board will discuss opening its books to a potential bid consortium including TPG Capital and British Airways ( ATWOnline, May 28). IB will open its books only to offers above €4 ($5.45) per share, Cinco Dias reported, citing shareholder sources. TPG's March approach valued IB at €3.4 billion, or €3.60 per share.
Gol said Friday that it will slow its growth owing to sluggish traffic in the Brazilian market, which has been beset by air traffic control problems ( ATWOnline, June 26). The carrier projects just 12% capacity growth in the domestic market for 2007 and 2008. As recently as March, its monthly domestic capacity increased 46.8%. While all Brazilian airlines have been hurt by ATC problems, the disruptions have hit the LCC, which counts on high aircraft utilization and fast turnarounds, especially hard.
Oman Air will begin serving Tehran and Damascus from Muscat in September and will launch its long-haul expansion in November with flights to London and Bangkok, the Arab Air Carriers Organization announced. AACO said Oman Air will be "operating its widebody aircraft" on the latter two routes.
London Luton said Friday that it will "focus on making the most of the existing airport site," withdrawing its October 2005 proposal for a full-length replacement runway 950 m. south of the existing runway along with adjacent tournament facilities. The airport will publish development proposals for the period up to 2015 later this year.
GA Telesis announced that Aldebaran Leasing, its joint venture with EB-Erste Bank Internationale Beteiligungen, acquired two A340-200s on long-term lease to Royal Jordanian from GIE Lizad. Transaction represents GAT's first A340 acquisition and first Middle East lessee.
US Airways said last week in a filing with the US Securities and Exchange Commission that it expects second-quarter nonfuel CASM to be higher than previously forecast, primarily due to maintenance costs related to returning eight leased aircraft throughout the year, the timing of engine MRO expenses and "additional spending to improve our operation." CASM is expected to rise in the third and fourth quarters as well due to an approximate 2% mainline and regional capacity reduction implemented through decreased utilization and "as a result of industry conditions."
