Airbus's banner week continues AirAsia to launch OnAir inflight telephony in Asia Embraer logs more orders for E-195s Volga-Dnepr signs up for new IL-76 freighters AIA chief lauds growing European cooperation Additional stories Paris News from June 18, June 19, June 20, June 21
United Airlines yesterday said the computer outage that disrupted its schedule for 2 hr. Wednesday morning was the result of employee error, according to a statement from UA executives to employees cited by the Associated Press. Nearly 300 flights were delayed or canceled when the Unimatic system shut down after "an employee made a mistake and caused the failure of both Unimatic and our backup system," COO Pete McDonald said without elaborating, according to AP.
AirTran Holdings announced that independent inspectors for Midwest Air Group confirmed that shareholders representing 65% of the company's shares elected three AirTran nominees to the Midwest board at last week's election ( ATWOnline, June 15) and that AirTran will meet with the newly constituted Midwest board on July 16 regarding its bid to buy the Milwaukee-based airline.
Delta Air Lines said it plans to install Aviation Partners Boeing blended winglets on 38 737NGs, 10 757-200s and 15 767-300ERs, with options to outfit the remainder. It said it expects to realize a combined 3.5% improvement in fuel consumption and a 5% increase in range as a result.
ICAO cited improving capacity management and airlines' flexibility in the face of higher fuel prices for the collective net profit of approximately $2.71 billion that the world's carriers enjoyed in 2006, a reversal from an estimated $4.13 billion loss in the prior year.
FedEx Corp. concluded its fiscal year ended May 31 with a net profit of $2.02 billion, up 12% from the $1.81 billion earned in the prior 12 months, a result it credited to "strong" volume growth at its FedEx Ground segment and "continued" revenue growth for FedEx Express International Priority products.
Chinese airlines posted a collective profit in May, although the exact figure has yet to be released, according to a monthly report from CAAC. The industry's operating revenue rose 10.9% from the year-ago month to CNY21.08 billion ($2.76 billion) against a 2.6% lift in expenses to CNY19.94 billion. Local industry analysts credited a drop in domestic oil prices and the "strong Chinese domestic air transport market" for the improved performance. It was reported that Chinese Oil Co. implemented a cost reduction of CNY90 per ton from April 1, which followed drops of CNY180 on Jan.
Airbus announced that EASA has certified OnAir, the onboard mobile phone and communications system it has developed in partnership with SITA. "The EASA airworthiness certification comes after successful tests were carried out by Airbus earlier this year and confirms the GSM onboard system's compatibility in the aircraft environment," the company said, adding that the OnAir service initially will be available on single-aisle aircraft operating short-haul flights in Western Europe.
KLM Engineering & Maintenance Executive VP Peter Somers told ATWOnline at the Paris Air Show that Air France Industries and KLM M&E intend to increase their collective profile among the world's largest MRO providers and narrow the gap with Lufthansa Technik through both the addition of new capabilities and acquisitions. "Several of KLM M&E's present customers and/or KLM alliance partners [such as Northwest Airlines and Kenya Airways] have ordered the Dreamliner and they have approached us to see if can support them.
Northwest Airlines confirmed to ATWOnline at the Paris Air Show that it has been in serious discussions with Bombardier for more than two years to become the launch customer for the CSeries aircraft. NWA VP-Finance and Fleet Planning Dan McDonald said the company is "looking at this formally as an evaluation program at Northwest." The airline could order up to 60 of the 110/130-seat CSeries, which would replace DC-9-30/-40/-50 aircraft. "Internally, we want to be in a position at the end of the year where we have a specific plan for a launch," McDonald said.
Boeing mulling rate increases across product line Airbus keeps orders coming Air France KLM adds to Boeing order book Sukhoi lands Western customer for Superjet ATR wins $238 million Jet Airways order Boeing: 747-8 sales strong Mitsubishi seeks to enter RJ market Additional stories Paris News from June 18, June 19, June 20
Alaska Airlines announced the promotion of Angela Ursino to MD-talent strategy and organizational development, Dean DuVall to MD-procurement for Alaska Air Group, Arnie Stapnes to MD-IT customer service and infrastructure (succeeding DuVall) and Herman Wacker to associate general counsel and MD-labor and employment law.
JetBlue Airways yesterday released second-quarter guidance that featured a lift in its estimated pre-tax margin to 4%-6% from the 3%-5% forecast when it unveiled its first-quarter results two months ago ( ATWOnline, April 25). Full-year pre-tax margin still is expected to be 1%-3%, a figure reduced from 2%-4% following a $22 million first-quarter loss. Operating margin in the current quarter is expected to be 9%-11%, with full-year coming in at 5%-7%.
AirAsiaX, which committed to the A330-300 yesterday at the Paris Air Show, is preparing for a September launch and positioning itself as the planet's lowest-cost long-haul carrier.
CSA Czech Airlines has a new fare structure that divides tickets into five categories featuring a variety of benefits and restrictions: Business Premium, Business, Economy Premium, Economy and Value Special. The new Economy Premium package offers free rebooking or cancellation, increased loyalty program benefits and the right to check in at business class counters.
Flybe is looking to differentiate itself from airlines offering only a carbon offset program with a new "ecolabel" system that grades the environmental impact of each flight based on emissions, noise level and fuel use. The ratings will be available to each passenger on every Flybe flight. The UK-based LCC said it believes customers can be swayed to travel with eco-friendly companies. Newer aircraft like the Q400 or E-195 receive marks in the A/B range while older BAe 146s, which will be replaced next year, receive a D, Flybe CCO Mike Rutter said.
Southwest Airlines CEO Gary Kelly said this week that the carrier plans to offer service on a codeshare basis to destinations in Mexico, Canada and the Caribbean from Baltimore by 2009 or 2010, according to press reports. Flights will be operated by partner ATA Airlines. "This airport is well prepared for more growth," he told businesses serving BWI, according to The Baltimore Sun. "Philadelphia is strained. . .I don't really see it as a cannibalization issue here at all." SWA also is interested in codesharing on flights to Europe.
TAM converted purchase rights for four 777-300ERs into firm orders. It announced the initial order for four firm aircraft and four purchase rights last fall ( ATWOnline, Nov. 2, 2006). TAM said its share of the international market among Brazilian carriers last month was 72.4% and it intends to grow "by increasing flights to countries where it already operates in Latin America, the US and Europe as well as launching other potential destinations to attract leisure and business passengers."
Alaska Airlines flew 1.58 billion RPMs in May, a 5.7% increase from the year-ago month. Capacity rose 6.2% to 2.05 billion ASMs and load factor fell 0.4 point to 77.1%. ATA Airlines flew 350.6 million RPMs in May, a rise of 9.6% from the year-ago month. Capacity fell 5.7% to 397.3 million ASMs, raising load factor 12.3 points to 88.2%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.57 billion RPMs in May, up 15% from the year-ago month. Capacity rose 13.5% to 1.94 billion ASMs, lifting load factor 1 point to 80.6%.
Air Berlin acknowledged yesterday that police and Federal Financial Supervisory Authority officials searched the offices and homes of six individuals accused of insider training, including CEO Joachim Hunold and Chairman Johannes Zurnieden.
United Airlines said this week in a filing to the US Securities and Exchange Commission that second-quarter nonfuel unit cost may rise as much as 0.5% year-over-year from its second-quarter 2006 nonfuel CASM of 7.70 cents. Mainline passenger RASM for the current quarter is expected to increase 2.75%-3.25% over the year-ago period's 12.03 cents. Consolidated PRASM should rise 2%-3%. UA said that "yields continue to be strong internationally, but under pressure domestically as industry capacity grows and domestic industry revenue slows."
Italian government, reportedly concerned that neither of the consortia led by Aeroflot and Air One is in position to mount a successful bid for struggling flag carrier Alitalia, invited US private equity firm MatlinPatterson Global Advisors back into the competition, according to a statement from the national treasury cited by numerous press reports from Rome.
IATA and Airlines Reporting Corp. announced a joint marketing and licensing agreement under which the organizations will provide sales, fare and ticketing data in the same format, "eliminating the need for airlines to combine different sets of market intelligence information," IATA said. Data now will be offered in the ARC Segment Detail specification.
SriLankan Airlines is trying to entice passengers to its Doha service by doubling the amount of permitted luggage on the return leg to 40 kg. per person. The carrier said the new allowance is "up to 100% more than our regional competitors."
