Continental Airlines announced the sale of $1.15 billion worth of pass-through certificates, issued in three separate series, that will be used to finance its purchase of 30 737-800s and 737-900ERs scheduled for delivery in the January 2008-March 2009 timeframe. The proceeds initially will be held in escrow by an unidentified depository institution. The escrowed funds will be used to acquire equipment notes issued by CO to finance the aircraft. The three classes have coupons of 5.983%, 6.903% and 7.339% per annum.
Aeroflot announced an agreement with Joint Aircraft Building Corp. for the 15-year lease of six new IL-96-400T freighters. The aircraft have a range of 5,700 km. and a payload of 92 tons. Two will be delivered in 2008, one the following year and three in 2010.
News from Travel Technology Update: While the management team at Eons.com, the "MySpace for the 50-plus crowd," was trying to figure out how to incorporate a travel component on the site, a group of members decided to take a trip together and organized all the details, right down to putting out a press release to attract more participants. It was a demonstration of the power of social networking online, Jeff Taylor, founder and chief executive officer of Eons, told an audience at the TravelCom/Res-Expo conference.
Air Canada flew 3.94 billion RPMs in March, up 5% on the year-ago month. Capacity rose 2% to 4.7 billion ASMs, lifting load factor 2.4 points to 83.8%. AirTran Airways flew 1.48 billion RPMs in March, up 22.2% from the year-ago month. Capacity rose 22.9% to 1.9 billion ASMs and load factor fell 0.4 point to 77.7%. Gol flew 1.48 billion RPKs in March, up 42.9% from the year-ago month. Capacity climbed 59.2% to 2.4 billion ASKs, dropping load factor 7 points to 61.8%.
European Commission approved public financing of infrastructure developments at Lodz Airport. Cost of the project is PLN34.8 million ($12.1 million), with a maximum contribution by the Polish state of 71.85 %. Lodz increased passenger throughput to 216,861 in 2006 from 35,460 the prior year. Separately, the EC will allow the Italian government to grant startup aid for new domestic and European air routes from airports in the Puglia region of southeast Italy. The measure will last three years and provides for a total of €63 million ($84.3 million) to airlines.
Assn. of European Airlines released members' punctuality and baggage-handling performance for 2006, revealing the majors' ongoing luggage-related difficulties. British Airways was the worst-performing of the 24 reporting carriers with 23 missing bags per 1,000 passengers. TAP Portugal was 23rd with 21 missing bags, Lufthansa 22nd with 18.1 and Air France 21st with 16.6. Top-ranked carrier was Air Malta with 4.4 missing bags per 1,000 passengers. Turkish Airlines (4.7) and Air One (8.1) rounded out the top three. Six carriers did not report.
ExelTech Aerospace of Montreal will perform airframe and avionics modifications and structural upgrades on 44 Atlantic Southeast Airlines CRJ200s over the next 14 months.
UK CAA announced the launch of CAA International, an independent consultancy subsidiary that will "enable the CAA's knowledge and expertise in aviation training and commercial activities to be used outside the UK." CAAI will take over the role of the body's International Services Dept.
Rockwell Collins said Air Berlin selected the MultiScan Hazard Detection System, Multi Mode Receiver and Passenger Address Unit for 85 737NGs scheduled to begin delivering in April 2008.
Sun Country Airlines completed negotiations for the lease of two winglet-equipped 737-800s. It will take delivery of its ninth and 10th aircraft in July and August. It declined to identify the lessor.
Transaero plans to sell a 10%-17% stake in an IPO next year, Russia's AK&M reported. The company reported turnover of RUB13.63 billion in 2006, up 37.8% from the prior year.
China unveiled more details of its plan to build "jumbo aircraft," which it defines as passenger jets with more than 150 seats or freighters with a takeoff weight of more than 100 tons, saying it will begin assembling the planes in 10 or more years in Shanghai and Xi'an, according to the official state Xinhua News Agency.
Xiamen Airlines is negotiating with Boeing to order 25 737-800s valued at $2.1 billion, with the aircraft to be delivered in the 2011-13 timeframe if a deal can be reached. "We will offer a favorable price to Xiamen Airlines, as its fleet is virtually all Boeing," Commercial Airplanes President Scott Carson noted during his recent trip to Xiamen. Currently the carrier operates 43 Boeing aircraft comprising four 737-300s, six 737-500s, 15 737-700s, nine 737-800s and nine 757-200s. One additional 737-800 will be delivered in August.
Despite a rough winter in the US Northeast and glitches related to last month's reservation system migration, US Airways Group still expects to report a first-quarter profit.
Republic Airways Holdings announced the sale of its $91 million pre-petition unsecured creditor claim in Delta Air Lines' bankruptcy for $44.6 million. The transaction will close April 11. Republic subsidiaries Chautauqua Airlines and Shuttle America operate as Delta Connection.
TUIfly, the merged carrier of Hapagfly and Hapag-Lloyd Express ( ATWOnline, Jan. 15), will expand its Cologne/Bonn operation with four additional 737NGs over the next three years. It currently operates eight 737s on 400 weekly flights to 39 destinations from CGN. It expects to transport 2.5 million passengers from the airport this year, a 30% increase over 2006, with ASKs rising 26% to make CGN its largest base in terms of capacity.
Bellview Airlines of Nigeria said it received UK approval to operate nonstop Lagos-London Heathrow service. It did not announce a launch date. It currently serves LHR through Sierra Leone. It flies four 737-200s, one 737-300 and two 767-200ERs. Virgin Atlantic Airways will launch twice-weekly London Gatwick-Plaisance, Mauritius, service on Oct. 29 aboard a 747-400. Norwegian will start thrice-weekly Oslo-Edinburgh flights on April 15. Spicejet launched daily Hyderabad-Ahmedabad-Jaipur service.
Silverjet announced an underwritten placing, subject to shareholder approval, designed to raise £27 million ($53.1 million) gross. Shares are being placed at £1.80 each, a discount of 3.49% from the closing market price, the startup carrier said. The money will be used for "general working capital purposes." The all-business-class airline sold 3,293 revenue seats in March, representing a 59% load factor. In addition, last month it began offering cargo services on its daily London Luton-Newark 767 flight.
Fraport announced an investment of "approximately" €50 million ($66.9 million) to take a 24.5% share of Xi'an Airport. The transaction is scheduled to be completed in the third quarter and marks the first investment by a foreign airport operator in an unlisted Chinese airport, Fraport said. It will take charge of Xi'an's "operational optimization and commercial development."
Airbus said US Airways has joined America West Airlines in using the Airman real-time maintenance tool to monitor its fleet of Airbus aircraft. US becomes the largest Airman user.
Airline consolidation in the US began last week on a smaller scale than the failed mega-merger between US Airways and Delta Air Lines and AirTran Airways' contentious pursuit of Midwest Air Group as ATA Airlines parent ATA Holdings bought out World Air Holdings, parent of World Airways and North American Airlines, for $315 million in cash or $12.50 per share.
Delta Air Lines will take over Atlantic Southeast Airlines' customer service and ground operations in Atlanta from June 1. It took over for Chautauqua Airlines, Shuttle America and Freedom Airlines last year. "Our customers expect and deserve a convenient, reliable travel experience onboard all Delta and Delta Connection flights," Executive VP-Operations Joe Kolshak said.
