Delta Air Lines signed an agreement with Bombardier for 30 firm CRJ900s plus 30 options. Firm aircraft are worth $1.1 billion at list prices and the deal's value will increase to about $2.3 billion if all options are exercised. The order was approved by the US Bankruptcy Court. "The acquisition of these aircraft will help Delta meet its network and operational needs for 2007 and 2008," VP-Delta Connection Shawn Anderson said.
Malev Hungarian Airlines will be sold to AirBridge, a Hungarian company backed by Russia's KrasAir, according to a statement from the state privatization agency cited in press reports from Budapest. No information was provided by the agency about the terms of the sale. It marks the seventh time the government has put Malev up for bid. The Russian government holds a 51% stake in KrasAir, according to the Associated Press.
JetBlue Airways said it expects net savings of $30 million over five years by removing six seats, or one row, from each of its A320s ( ATWOnline, Dec. 21, 2006). The figure includes estimated lost revenue. Inflight cabin crew will be reduced to three and aircraft weight will fall 904 lb. Modifications are expected to be completed by March, at which time the cabin will feature 36-in. pitch in rows 1-11 and 34-in.
MAIR Holdings, parent of Mesaba Aviation and Big Sky Transportation, reported a net loss of $1.1 million for the third fiscal quarter ended Dec. 31, narrowed from a loss of $4.5 million in the year-ago period. Operating revenues fell sharply to $6 million from $21.2 million and expenses dropped to $8.4 million from $28.8 million. "This quarter aptly illustrates the complexity of our industry," MAIR President and CEO Paul Foley said. Mesaba Aviation reported a net loss of $30.8 million for the quarter compared to net income of $636,000 in the year-ago quarter.
Qantas scotched rumors that it is contemplating cutting its investment in Singapore-based Jetstar Asia Airways. Qantas CFO and Jetstar Asia Chairman Peter Gregg said in a statement that "Jetstar Asia is, and will continue to be, an important part of the Qantas Group's diversification strategy." Local press reports have expressed concerns over the airline's future following a number of operational cancellations and claims regarding pilot shortages.
Nordam said it received approval from Boeing to supply its new composite window frame for the 787. According to the Tulsa-based company, the frame results in "almost a 50% weight savings" over a traditional aluminum frame while offering "superior damage tolerance." The initial shipsets have been delivered to Boeing's fuselage manufacturing partners Alenia, Kawasaki Heavy Industries, Spirit Aerosystems and Vought Aircraft Industries.
Qantas yesterday delivered relatively good news to the Airline Partners Australia consortium bidding for the flag carrier, raising its profit forecast and reporting a A$358.5 million ($278.7 million) net profit for the six months ended Dec. 31, a 1.7% increase from the A$352.6 million earned in the year-ago period.
Boeing remains on track to deliver the first 787s in the latter half of the first quarter of 2008. Speaking in Sydney, Boeing VP-Marketing Randy Baseler told ATWOnline that the program is on time for a rollout in July with first flight scheduled for August. He said the company will begin final assembly of the first 787 early in the second quarter. "The schedule for the 787 is very aggressive, 6-18 months more aggressive than any other Boeing airplane, but we are progressing right on track," he said.
A sharp improvement in earnings toward the end of the year, boosted mainly by the November sale of its 65% holding in the Rezidor Hotel Group, drove SAS Group's full-year 2006 net profit to SEK4.74 billion ($676 million), significantly widened from net income of SEK255 million the prior year.
Pakistan International Airlines posted a PKR9.19 billion ($150.7 million) loss in 2006, Chairman Tariq Kirmani said at a press conference in Karachi, according to news reports. Comparison to 2005's final result was not provided, but he did say that revenue rose 10% to PKR70 billion and passenger numbers climbed 5.1% to 5.7 million. PIA's year was soured by the July crash of an F27 that killed all 45 onboard ( ATWOnline, July 11, 2006).
Rockwell Collins said Cathay Pacific Airways will install RC's Airshow 4200D moving map and inflight information system on five A330s and 18 777s, with an option for an additional 20 line fit aircraft. Installation is scheduled for July.
Shanghai SR Aircraft Technics, a joint venture between SRT and Shanghai Foreign Aviation Service Corp., signed an agreement with Air New Zealand to provide technical support and line maintenance on its 777s at Shanghai Pudong.
US Dept. of Transportation yesterday finalized last month's tentative decision to award United Airlines the right to operate daily Washington Dulles-Beijing service ( ATWOnline, Jan. 10). UA recently launched daily service from IAD to Tokyo Narita and Kuwait City aboard 777s. Separately, UA named former Disney executive Barbara Higgins VP-customer experience.
Dutch government shelved plans for an IPO of Schiphol Group during the next parliamentary term. The long-awaited privatization was blocked last year following resistance from a minority shareholder, the City of Amsterdam ( ATWOnline, Oct. 4, 2006). "Considering the international competition with privatized airports in Europe, the Board of Management regrets that after years of consultation a longstanding wish will not be fulfilled," Schiphol Group noted in a statement.
Air Canada announced the following new services: Halifax-New York LaGuardia (daily from April 1 aboard an Air Canada Jazz CRJ), Toronto-Deer Lake (daily from May 4 aboard an A319) and seasonal Halifax-Edmonton (daily June 15-Sept. 16 aboard an A319).
Eos Airlines named former American Airlines and Royal Caribbean Cruises executive Jack Williams CEO, effective immediately. He replaces interim CEO David Pottruck, who will continue as chairman. Separately, Eos will add a third daily all-business-class New York JFK-London Stansted frequency "during peak travel days." The expansion is effective April 15.
Lamar Muse, who co-founded Southwest Airlines with Rollin King and Herb Kelleher and served as its first president and CEO, died Feb. 5 of cancer. He was 86. Muse was hired by King and Kelleher to bring their idea for a Texas intrastate airline from the napkin to the runway.
Kingfisher Airlines partnered with dishtv of India to offer live television and digital entertainment in flight. The first aircraft was equipped with the service, called Live, in December. It features 21 channels of television and video content, 10 of music and a map channel.
Volga-Dnepr Group and Motor Sich of Ukraine announced the formation of a joint venture company "to manage the relaunch of serial production of the An-124-100" Ruslan freighter with the aim of developing and producing a new version, "the An-124-100M-150," and increasing the operating life of existing An-124s. Target goals for the new version are increases in payload capacity from 120 to 150 tonnes and in operating life of the aircraft to 60,000 hr. and later to 80,000 flight hr. The flight control system also will undergo significant improvements.
AWAS announced the sale of three 767-300ERs to Hawaiian Airlines, part of a deal that includes the shortening of an additional four aircraft leases and three spare engine leases. The sold aircraft were under lease to Hawaiian. AWAS also delivered an A320 to Indonesia's Mandala Airlines on a medium-term lease. It is Mandala's second A320.
British Airways said yesterday that it reached an agreement with the trustees of its New Airways Pension Scheme to address its £2.1 billion ($4.12 billion) deficit. The accord, which was reached in principle last year but rejected by the GMB Union last month ( ATWOnline, Jan. 15), includes a one-off injection of £800 million, annual company contributions of £280 million for the next 10 years and an additional £150 million over the next three years subject to BA's financial performance.
Airbus COO-Customers John Leahy told ATWOnline yesterday that an additional 20 A380s will be sold this year to two customers. When asked if those customers are new or among the existing 15 (the 16th, FedEx, cancelled its freighter order), Leahy said that "it could be both," adding, "I'm concentrating more on existing customers. Our main problem is that we have not been able to deliver the aircraft on time." He also stated that "everybody wants compensation of different kinds" for the delays.
