SR Technics was selected by Virgin Atlantic Airways to reconfigure five 747-400s. The project includes an extension to the existing premium cabin, installation of new premium economy seats and new storage areas. Work is expected to be completed in November 2007.
Aerospace Industries Assn. cited a "surging civil aircraft market" as the primary driver behind US aerospace industry sales reaching a record $184.4 billion in 2006, up 8.4% from $170.1 billion in 2005. AIA President and CEO John Douglass said annual US industry sales will "go well beyond $200 billion by the [next US election in] 2008." In remarks this week at AIA's annual review and forecast luncheon in Washington, he noted that the record sales were achieved despite US airlines' recent financial struggles.
US airline consolidation speculation is rampant in the domestic media, among financial analysts and within the industry itself, but little focus is being directed to potential antitrust hurdles to large-scale mergers.
Allegiant Travel Co., parent of Allegiant Air, announced yesterday the closure of its IPO of 5 million shares of common stock with net proceeds of $94.8 million. Money will be used as working capital and to pay off company debt ( ATWOnline, Dec. 11).
Condor Berlin, a Condor Airlines subsidiary, was hit yesterday morning by a 4-hr. wildcat strike organized by the ver.di union. Five flights were affected. The union and Condor management have restarted talks that were suspended in February 2005. The carrier wants its 240 cabin staff to transfer to a flight-hour system from a daily work schedule.
LAN Airlines this week took delivery of its fourth 767-300 passenger aircraft this year and said it will be used on flights to and from the US, Mexico, Tahiti and the Caribbean. It also operates nine 767-300 freighters.
Midwest Airlines said it is rejecting overtures from AirTran because the offer isn't in the best interests of its employees, shareholders, customers or the communities it serves. AirTran revealed the $290 million deal Wednesday ( ATWOnline, Dec. 14), saying the two carriers are compatible and together could become a "national low-cost, high-quality airline" generating $3 billion in pro forma revenue next year.
EU-US tension over PNR data sharing is rising again less than two months after the parties concluded an agreement for the processing and transfer of PNR data by air carriers to the Dept. of Homeland Security ( ATWOnline, Oct. 17) under the terms of which the US government committed to restrict the use of data to comply with European privacy laws.
TUIfly.com could be the new name of the combined fleet of German carriers Hapagfly and LCC HLX ( ATWOnline, Oct. 2). German media quoted a TUI management source as saying that the first repainted aircraft will be presented at a hangar in Hannover. TUI is expecting the combined airline to generate €40 million in savings at the cost of up to 200 jobs. It operates 56 aircraft.
British Airways CEO Willie Walsh is in Calgary this week and plans to meet with WestJet executives today to hold preliminary talks on potential cooperation, Bloomberg News reported. "WestJet is a good airline," Walsh told the news service. "If there was an opportunity to do something, we'd certainly be pleased to look at that. Anything that provides connectivity is a plus."
Regional Airline Assn. named Roger Cohen president. He is a director at SmithBucklin, which oversees management of RAA and several other organizations. He takes office Monday, replacing Airports Council International-North America Senior VP Deborah McElroy. United Airlines parent UAL Corp. promoted Senior VP-Planning Greg Taylor to senior VP-corporate planning and strategy.
There is turbulence ahead for Qantas, with News Corp.'s influential The Australian calling on the government to open up access to all Qantas routes in the wake of the airline's Wednesday acceptance of an A$11.1 billion ($8.74 billion) takeover bid from the Airline Partners Australia consortium.
Thomas Cook AG board chose Manny Fontenla-Novoa chairman. Dubai Aerospace Enterprise appointed Munther Akram Juma as senior VP-marketing and corporate communications.
American Airlines announced plans to invest $20 million in cabin upgrades on its fleet of 767-200s, which are used primarily on transcontinental routes from and to New York. Enhancements will become available in summer 2007 and include "updated" first and business class seats, an additional first class seat in each aircraft, new on-demand personal entertainment devices and new cabin interiors. AA said it is the only US airline operating the widebody aircraft on the transcontinental route.
Austrian Airlines launched Vienna-Erbil service Monday with an A319. The flight will operate twice-weekly. Separately, OS Executive VP and General Secretary Peter Malanik was appointed chairman of the Star Alliance management board. He replaces United Airlines Executive VP and CCO Graham Atkinson.
Boeing said that Air France Industries has adopted the Boeing Airplane Health Management system, which will provide real-time maintenance information on AF's 42 777s (plus 13 to be delivered) and 21 747-400s. Separately, Boeing named former Connexion by Boeing executive Stan Deal as VP-Asia/Pacific sales for Boeing Commercial Airplanes and VP-China Sales Rob Laird as VP-Greater China sales.
Following its rejection of the initial takeover bid early yesterday, the Qantas board last night unanimously accepted a revised and higher offer from Airline Partners Australia, the consortium led by Australia's Macquarie Bank and Texas Pacific Group of the US. In a filing with the Australian Securities Exchange, Qantas Chairman Margaret Jackson said APA's A$5.60-per-share cash offer "allows Qantas shareholders to realize significant value for their shares that has not been fully recognized in the public market."
National Air Services of Saudi Arabia said it will order 75 total aircraft from Airbus, Gulfstream and Raytheon in a $2 billion purchase. NAS, which launched operations in 1999 offering ownership stakes in business jets, will buy the aircraft before 2010 as part of a plan to create a 100-strong fleet, according to Reuters. The carrier won Saudi Arabia's first private airline passenger license this month and will launch low-cost domestic services next year. It can start international flights in 2009.
IAE International Aero Engines and China Southern Airlines announced that the carrier ordered V2500s to power 50 A320 family aircraft and signed a long-term V2500Select aftermarket agreement in a deal worth more than $1.35 billion. The aftercare program also will cover China Southern's 74 existing V2500-powered aircraft. The 50 aircraft are its allocation from China's 150-aircraft order placed one year ago ( ATWOnline, July 10).
Singapore Airlines once again applied pressure on the Australian government for access to the Sydney-Los Angeles/San Francisco route after Virgin Blue announced it will not launch transpacific services until 2008 at the earliest. In a statement, SIA said, "Consumers will now be waiting at least another two full years before there's any new competition on that route.
United Airlines and Continental Airlines each declined to confirm numerous US media reports that they are discussing a potential merger. UA Chairman, President and CEO Glenn Tilton said this week that the carrier is actively exploring consolidation "options available" but did not name any potential partners ( ATWOnline, Dec. 13).
IATA estimates that the current proposal to bring aviation into the EU Emissions Trading Scheme would cost the industry €2.9 billion ($3.84 billion) in 2011, the first year in which aviation would be included, and even more in subsequent years. The figure represents a 5% increase to the cost of a gallon of fuel at today's prices.
Oneworld announced that it will welcome Dragonair next year following the Hong Kong carrier's merger with oneworld founding member Cathay Pacific Airways ( ATWOnline, Sept. 29). "All parties are committed to bring Dragonair onboard oneworld as soon as possible in 2007, immediately all necessary joining technicalities and processes have been completed," the alliance said.
American Airlines flew 10.71 billion system RPMs in November, a 1.1% drop from the year-ago month. Capacity fell 3.7% to 13.43 billion ASMs and load factor rose 2.1 points to 79.7%. Domestic traffic declined 3.2% to 7.15 billion RPMs against a 4.8% fall in ASMs to 8.75 billion, lifting load factor 1.4 points to 81.7%. International RPMs rose 3.3% to 3.56 billion, capacity was down 1.5% to 4.68 billion ASMs and load factor climbed 3.5 points to 75.9%. British Airways flew 8.76 billion RPKs in November, down 0.8% from the year-ago month.
