Air New Zealand converted three Q300 options on behalf of its Air Nelson regional subsidiary in a deal worth $48.6 million at list prices. The options were part of a 2004 order for 17 firm Q300s plus 10 options and 13 Q400 options. Bombardier had delivered nine of the 50-seat Q300s as of July 31.
Royal Air Maroc launched service from Casablanca to Brazzaville and Accra (each thrice-weekly) and Malabo (twice-weekly). Finnair will launch four-times-weekly service from Helsinki to Gdansk, its third Polish destination, in April aboard Embraer 170s.
Aer Lingus board on Friday strongly advised shareholders to take no action on Ryanair's hostile takeover offer of €2.80 ($3.53) per share, dismissing it as "ill-conceived, contradictory and anticompetitive." In a circular, the board told shareholders that the Ryanair offer "significantly undervalues Aer Lingus [and] ignores Aer Lingus' excellent prospects as an independent company." At its current offer price, Ryanair would be buying EI "at a significant discount," the board concluded.
Bulgaria Air will be sold to Balkan Hemus Group, the Bulgarian government announced Thursday. Hemus, which outbid Air One for the flag carrier ( ATWOnline, Oct. 19), will buy a 99.99% stake. It plans to invest €62 million ($79.1 million) over the next two years and €82.1 million in the next five, launching service to 36 new destinations.
Thai Airways yesterday took delivery of the first of six 777-200ERs it is adding to its fleet this year and in 2007. It will take delivery of three more this year and two in 2007.
Saab Aerotech will provide Romania's Carpatair with spares support for Saab 340 and Saab 2000 aircraft under a five-year contract valued at $20 million. Carpatair operates a fleet of 14 Saab aircraft and two F100s. Separately, Saab Aerotech expanded its existing component services agreement covering Air Baltic's F50s to a complete component support agreement with a value of SEK70 million ($9.6 million).
AerCap Holdings, the Netherlands-based aircraft lessor, yesterday submitted a filing to the US Securities and Exchange Commission for a proposed US initial public offering of 26.1 million ordinary shares. It said the shares will be offered at $22-$24 each. "The securities to be offered in the proposed IPO will include shares to be issued and sold by AerCap as well as shares to be sold by shareholders of AerCap," the company said in statement, adding that the shares are expected to trade on the New York Stock Exchange under the symbol AER.
In a significant departure from the LCC one-plane-fits-all strategy, Australia's Virgin Blue yesterday ordered three Embraer 170s and 11 190s plus six options. The aircraft will replace 737-800s on some thinner routes while adding frequency at off-peak times on others. The carrier said they will be used to expand domestic and regional markets. The airline, which currently operates a fleet of 53 737s, is Embraer's first customer in Australia.
Aer Lingus intends to add 26 long-haul flights per week following delivery of two new A330s in May and June that will boost its long-haul fleet to nine aircraft. "The arrival of two new long-haul aircraft next year marks the first phase of the long-haul expansion plan and gives Aer Lingus the opportunity to develop its presence in the US market," CEO Dermot Mannion said in a statement. The Irish carrier, which is the target of a hostile takeover by Ryanair, currently serves four destinations in the US and one in the Middle East.
AirCell yesterday received a US Federal Communications Commission frequency license that the company said will enable it "to provide exclusive broadband connectivity to US airlines and business aircraft beginning in early 2008." AirCell President and CEO Jack Blumenstein said, "Receiving this exclusive air-to-ground broadband license is a historic event in the airborne telecommunications industry. In just over a year, the flying public will have the ability to use their own Wi-Fi-enabled laptops and PDAs to communicate just like they do on the ground."
Delta Connection carrier Comair yesterday asked a US Bankruptcy Court to allow it to impose pay concessions if it fails to reach agreement with its 1,500 pilots on cost cuts. The bankrupt Regional is seeking $15.8 million in annual savings from pilots.
FedEx Express, the delivery giant's airline unit, yesterday signed an agreement to acquire its Indian service provider, Prakash Air Freight, for $30 million in cash. PAFEX has 384 offices in India and serves nearly 4,400 destinations. It has been FedEx's service provider there since 2002, providing domestic logistics and courier delivery support for the US express company's airline operations in India. The deal is subject to regulatory approval by India's government.
Insisting that his carrier has "a number of weapons to choose from," Southwest Airlines CEO Gary Kelly told reporters and analysts at the company's Dallas headquarters this week that a 15% increase in year-end earnings remains a goal for both 2006 and 2007.
Austrian Airlines said yesterday that it will cut its long-haul fleet from 16 to 10 aircraft, resulting in route eliminations and likely job reductions. The carrier's supervisory board on Nov. 1 approved a proposal to eliminate four A330-200s in 2007. With the sale of two remaining A340-300s slated to be completed next year, the long-haul fleet will consist of four 777-200ERs and six 767-300ERs by no later than the end of 2007.
Eos Airlines, which operates premium-class service between New York JFK and London, secured $75 million in capital investment funding that will be used to expand its fleet in 2007. Currently, Eos operates three 757-200s configured with 48 fully horizontal flat bed seats and features curbside access for "fast track" check-in for passengers. Company officials said it is maintaining load factors in excess of 65%.
TAM said late Tuesday that it placed a firm order for four 777-300ERs, the first Boeing jets it has ever purchased, and will take delivery of the aircraft in mid-2008. Additionally, Brazil's largest airline reported that it more than doubled its third-quarter net profit to BRL212.7 million ($99.2 million) from BRL93.3 million in the year-ago quarter on a 34.8% jump in revenues to BRL2.08 billion.
Turkish Airlines President and CEO Temel Kotil told ATWOnline yesterday in Istanbul that the carrier is moving forward with preparations to join the Star Alliance and expects to achieve full membership by the fourth quarter of 2008 at the latest. Tokil said Star will benefit from access to a Turkish market with 70 million people and Istanbul's proximity to Central Asia, the Middle East, the Far East and Africa. "We want to make Istanbul a strong hub for Star," he said. "From here we reach 85 capitals in three hours flying time."
Mexicana Airlines reached a cost-cutting agreement with its pilots that the carrier said will lower expenses by $50 million annually. Reuters reported that the more than 800 pilots agreed to benefit cuts, including lower overtime pay and a shortening of vacations, in exchange for pay raises in each of the next four years. The wage increases will be calculated by taking the rate of inflation and adding one percentage point.
Air Canada pilots were awarded pay raises in an arbitrator's ruling issued yesterday. The carrier said in a statement that arbitrator Douglas Stanley ruled that the 3,100 pilots, represented by the Air Canada Pilots Assn., will receive a pay increase of 2% this year retroactive to July 1 and raises of 1.75% in each of the next two years. In a separate arbitration ruling issued yesterday, Air Canada Jazz flight attendants were awarded a 1% pay increase retroactive to June 1 and raises of 1.75% in each of the next two years.
HLX and Hapagfly plan to announce a new name for their joint airline operation this month. The carriers will offer a joint summer schedule that they estimate will increase collective capacity by 25%. The new airline will operate flights to 16 countries with a fleet of 56 aircraft.
Mesaba Airlines, which has been working to avoid work stoppages as it goes through a Chapter 11 restructuring, reached a tentative agreement yesterday on a new labor contract with its mechanics, represented by the Aircraft Mechanics Fraternal Assn., one of three unions representing the Regional's employees. Members of the Assn. of Flight Attendants and Air Line Pilots Assn. reached tentative agreements late last week on new wage and benefit packages ( ATWOnline, Oct. 31).
Sun Country Airlines has been acquired by a group of investors who said they plan to expand the airline and develop markets for both business and leisure travelers. The acquisition of the St. Paul, Minn.-based carrier by Petters Group and Whitebox Advisors was concluded Oct. 31.
Delta Air Lines yesterday launched daily New York JFK-Mumbai flights aboard a 777-200ER, becoming the only carrier to offer direct service on the route. The dash 200ER has a capacity of 268 passengers including 50 business class seats. Swiss International Air Lines said it plans to add six new routes from Basel, comprising five weekly flights to Barcelona, four weekly flights each to Nice, Prague and Budapest and three weekly services each to Manchester and Warsaw. Malev will launch twice-weekly Budapest-Bangkok service from Nov. 15 aboard 767-200ERs.
IATA reported 4.7% increase in international passenger traffic for September, below the 5.9% average rate of monthly growth for the year to date, "continuing the downward trend in growth that began in May," the organization said. Passenger load factor for the month was 76.9%, slightly above last year. International airfreight traffic rose 4.9%, up from a 4.7% gain in August but below the 5.2% growth for the first nine months of 2006.
