Boeing sold a combined three 787s, plus two options, yesterday to Arkia Israeli Airlines parent Nakash Group of America and business aviation firm PrviatAir of Switzerland. Nakash's order for two dash 9s and two options is worth $336 million at list prices and scheduled for delivery in 2012. It did not announce an engine choice for the aircraft, which will be used on routes to North America and the Far East. Arkia operates one 757-200, two 757-300s, four ATR 72-500s and five Dash 7s. PrivatAir's order had been listed on Boeing's website under an unidentified BBJ customer.
British Airways yesterday said it was "extremely disappointed" at the UK CAA's proposed price caps at BAA's London airports that will take effect in 2008. The framework for the new pricing scheme, to be implemented in April 2008 and continue for five years, also includes a recommendation that the government remove price controls at London Stansted. But it was the proposal for LHR and LGW that drew BA's ire.
Airbus maintained this week that the A380 is on track for certification this month and entry into service late next year, while insisting it will continue developing the freighter version despite the fact that it has just one customer.
Virgin Atlantic Airways will launch a daily London Heathrow-Chicago O'Hare service on April 23 and a second daily LHR-Washington Dulles flight from April 24. ORD will become Virgin's 28th destination and 10th in the US. Both new flights will be operated with 240-seat A340-300s. Royal Jordanian launched a weekly A310 freighter service to London Stansted that will supplement its weekly flight to Heathrow.
Mexico's airline industry is facing a significant overcapacity situation following the emergence of several new entrants, Aeromexico CEO Andres Conesa said last week at the ALTA Latin American Airline Leaders Forum. According to Conesa, Mexico currently has an average of eight airlines competing on city-pairs of more than 1 million annual passengers compared to four in the US. Furthermore, the top 10 busiest domestic routes have 1.8 times the number of seats required to meet demand versus 1.2 in the US.
Sabre Airline Solutions signed a $15 million deal with Air China to implement a new flight operations control center, including Sabre's AirOps and Crew Management suites. It also extended its relationship with Aeroflot to include revenue and data management products, hosting services and support.
Air Canada Technical Services entered into an agreement to acquire 80% of Aeromantenimiento SA, the MRO division of Grupo TACA, during the first quarter of 2007 for $44.7 million in cash and the right to acquire an equity stake in ACTS (expected to be less than 7%). Grupo TACA Chairman and President Roberto Kriete will join the ACTS board. "This is a key step in establishing ACTS as a leading MRO organization in the Americas," ACTS President and CEO Chahram Bolouri said. Aeroman employs about 1,000 and is a founding member of the Airbus MRO network.
Island Air, mired in the battle for regional airline supremacy in Hawaii ( ATW, December 2006), announced a restructuring that includes cutting 65 employees, reducing its fleet by two aircraft and cutting five routes from its network. Along with Hawaiian Airlines and Aloha Airlines, Island has been engaged in a struggle for market share since the arrival in June of low-cost Mesa Air Group subsidiary go!.
SkyEurope Airlines ended its first full fiscal year as a listed company deeper in the red as it doubled its net loss in the 12 months ended Sept. 30 to €57.3 million ($76.4 million) from the €28.6 million shed in the previous year. Revenues rose 41% to €158.6 million against expenses of €213.8 million, widening operating loss to €55.2 million from €33.6 million last year. Net loss in the fourth fiscal quarter totaled €7.1 million.
JetBlue Airways reduced by 32 the number of firm Embraer 190 aircraft it will take from 2007 through 2010 in order to "manage capacity growth while retaining maximum flexibility," it said yesterday. It also said it anticipates 14%-17% ASM growth in 2007 rather than its originally forecast 18%-20%. Under a revised schedule announced Monday, the LCC will take 10 E-190s per year over the next four years instead of 18 per year. However, it added options for 23 during the period, up from zero.
China Airlines will launch a twice-weekly Taipei-Stockholm cargo service on Dec. 6 aboard a 747-400F. Outbound flight will stop in Abu Dhabi and Luxembourg, return flight will stop in Abu Dhabi and Bangkok.
Pratt & Whitney and Turkish Airlines Technic signed an MOU yesterday to build a "major" aircraft engine overhaul facility at Istanbul Sabiha Gokcen, site of Technic's HABOM MRO initiative ( ATWOnline, Nov. 6). Financial terms were not disclosed. The joint venture will work on CFM56s and V2500s and expects to handle up to 200 engines annually.
Delta Air Lines announced a "comprehensive settlement agreement" with the US Pension Benefit Guaranty Corp. that will "resolve all issues" related to the termination of its pilots' defined benefit pension plan ( ATWOnline, Sept. 6). Under the terms, PBGC will be allowed a pre-petition unsecured claim against the airline of $2.2 billion and the debtors' reorganization plan will provide for the distribution of $225 million in senior unsecured notes to the agency.
Lufthansa inaugurated its thrice-weekly Frankfurt-Kolkata service Friday, making the West Bengal capital its sixth destination in India. Lufthansa Passenger Airlines Executive VP-Marketing and Sales Thierry Antinori spoke to ATWOnline at the launch event about the carrier's strategy for the subcontinent. LH generates 20% of its €2.5 billion ($3.33 billion) annual passenger turnover in the Asia/Pacific market and operates 45 weekly flights to India (38 from FRA and seven from Munich) with 20,000 total seats. "In 2003 we had 23 weekly frequencies.
The Internet, which more than 20 years ago was regarded "as an experiment in how to move data," now is the primary channel by which most major airlines communicate with their customers and ultimately could form the backbone of operational communications, experts said last week during the ATWOnline webcast, "Industrial Strength Internet: Can Mission Critical be Agile?" Shinkuro Inc. CEO Steve Cocker noted that there is "no foreseeable end or replacement" for the Internet.
Airbus plans to outsource 50% of A350 XWB development and will explore "a range of financing sources" to meet the expected €10 billion ($13.3 billion) in production costs for the program cleared by the EADS board late last week ( ATWOnline, Dec. 4).
Austrian Airlines Group said it raised €367 million through the offer of up to 51.68 million bearer shares that concluded Dec. 1 ( ATWOnline, Nov. 29) with a final offer price of €7.10 per share. "With the successful completion of our transaction, we have taken an important step in our restructuring program," CEO Alfred Oetsch said in a statement.
The Italian government on Friday confirmed its intention to reduce its controlling interest in Alitalia in an effort to lift the carrier out of the red and into an alliance.
Northwest Airlines reported a $37 million consolidated October profit on $1.03 billion in revenues. Year-ago figures were not available, but the airline did lose $346 million in the six weeks following its entry into bankruptcy on Sept. 14, 2005. NWA's October expenses came to $980 million and its operating profit was $52 million. It has forecast a "modest profit" for 2006 excluding reorganization items ( ATWOnline, Oct. 3).
Atlas Air Worldwide Holdings and DHL announced the finalization of DHL's acquisition of a 49% stake in AAWH subsidiary Polar Air Cargo and a 20-year blocked-space agreement announced in October ( ATWOnline, Oct. 17). The stock purchase agreement was executed Nov. 28.
Declaring that the "monopolistic practices among airport authorities in Latin America have to stop now," ALTA Executive Director Alex de Gunten harshly criticized rising airport charges across the region Friday, singling out airports in Argentina, Ecuador, Costa Rico and Mexico.
SN Brussels Airlines will add a fifth daily frequency on its Brussels-Berlin Tempelhof route as it anticipates increased demand owing to Germany's January ascendancy to the EU presidency. Partner Virgin Express continues its daily service to Berlin Schoenefeld. Cargolux will add a fifth weekly flight to Budapest from Dec. 14. The new service will operate Taipei-Bangkok-Budapest-Luxembourg.
