British Airways yesterday took the first step in its long-awaited long-haul fleet renewal, issuing an RFP to Airbus and Boeing as well as Engine Alliance, General Electric, Rolls-Royce and other key component suppliers. The aircraft under consideration are the A330, A350 XWB and A380 and the 787, 777 and 747-8.
Finnair said it is preparing for an illegal strike by members of the SLSY flight attendants union scheduled to begin early Thursday morning. The airline said the resulting flight cancellations could cost it €2.5 million ($3.1 million) per day. The news came after Finnair announced it would recruit 500 cabin attendants by next fall to its Aero subsidiary under the national collective agreement. The hires are necessary to handle growing Asia-Europe traffic. "The salary level of Finnair flight attendants is about 30% higher than that of the national collective agreement.
Clickair announced 12 routes to launch next year. The no-frills startup, in which Iberia holds a 20% stake, will begin service from its base at Barcelona International Airport to Malaga (five-times-daily), Munich (daily) and Porto (daily) on Jan. 1. It will start flying to Prague (daily) and Berlin (daily) on Feb. 1 and to Amsterdam (twice-daily), Frankfurt International (twice-daily), Dublin (daily) and Basel (daily) on March 1. It also will commence flights from Seville and Valencia to London Heathrow on Feb. 1.
Blue Wings yesterday confirmed its July order for 20 A320 family aircraft ( ATWOnline, July 25), according to press reports. The order comprises 16 150-seat A320s and four 210-seat A321s. Separately, Reuters reported that Blue Wings is the customer for five A320s sold by JetBlue Airways last month. ( ATWOnline, Sept. 25). JetBlue said the aircraft will be delivered by mid-November.
Korean Air President and COO Jong Hee Lee projected the carrier's full-year 2006 net income will remain flat at about $200 million on $8 billion in revenues. Briefing reporters this week in Seoul, he said he was "disappointed" with the projected results and added that rising fuel prices are slowing growth. "Fuel has a terrible, big impact," he said, noting that the carrier will pay $500 million more in fuel expense in 2006 than it did last year.
Singapore Airlines unveiled a $360 million revamp of its long-haul product that positions it at the very top of the premium market. Originally designed for the A380, the features will be installed in the six new 777-300ERs scheduled to be in service by year end. According to SIA Senior VP-Operations and Services Bey Soo Khiang, "involvement of the airline's customers was key to the entire process." Those customers said they would be prepared to pay up to 20% more for the new features.
Comair and its 970 flight attendants represented by the International Brotherhood of Teamsters reached a tentative labor agreement last week. The carrier was granted permission to void its previous deal over the summer ( ATWOnline, July 24) and said it would impose new terms from Nov. 15. The union said the deal is for four years and includes a 7.5% pay cut, the Associated Press reported. Teamsters President Jim Hoffa said Comair cabin staff remain the best paid in the US Regional market.
General Electric said the GEnx order for Emirates' 10 747-8s ( ATWOnline, Oct. 10) covers 45 engines and is valued at more than $600 million. The carrier also signed a 10-year, $300 million OnPoint Solutions MRO agreement.
Aloha Airlines, following in the wake of Hawaiian Airlines, filed suit against Mesa Air Group in an effort to thwart go!, the inter-island startup that launched June 9. Aloha, like Hawaiian, claims Mesa used confidential information obtained when it was considering an acquisition of the airline. Both carriers recently emerged from bankruptcy. "Mesa came to Hawaii under false pretenses, making false promises," Aloha CEO and President David Banmiller contended.
Panasonic is considering taking over the Connexion by Boeing inflight Internet service when Boeing ends it at year end ( ATWOnline, Aug. 18), Korean Air President and COO Jong Hee Lee revealed. Briefing reporters in Seoul, Lee said Panasonic has told Korean, which equipped 29 aircraft with the service at a cost of $400,000 per plane, that it will take over the program if it can be assured of firm orders to equip 500 aircraft with the service.
Swiss International Air Lines said Friday that it has been forced to cancel 112 flights, or 2.7% of its operations, through Oct. 27 because of a pilot shortage. It cancelled 11 flights last weekend. Flights to Frankfurt, Munich, Dusseldorf, Birmingham, Brussels, Milan Malpensa and Warsaw will be affected over the next two weeks. Swiss said the decision was forced by an unusually high rate of pilots calling in sick. The carrier faced a two-day strike Sept. 26-27 by pilots flying for its Swiss European Air Lines subsidiary and canceled 142 flights.
Atlas Air Worldwide Holdings has reached agreement to sell a 49% equity interest and a 25% voting interest in its Polar Air Cargo subsidiary to DHL for $150 million cash, the companies announced yesterday. AAWW said the deal includes a 20-year blocked-space arrangement with potential revenues of $3.5 billion that "will ensure DHL access to aircraft capacity in key global markets while providing the AAWW companies with a valuable, long-term customer."
Middle East Airlines announced an 82% decrease in its forecast profit to $10 million due to the war in Lebanon during July and August, which usually is its most profitable season, the Arab Air Carriers Organization is reporting. MEA's losses reached $45 million during that period.
FL Group completed the sale of its 51% stake in Icelandair ( ATWOnline, Oct. 5). It will earn a €305 million ($381.5 million) profit on the €410 million transaction, it said in a statement cited by press reports. The buyers were Langflug (32%), Naust (11.1%) and Blue-Sky Transport Holding (7.4%).
SAS board yesterday appointed former Axel Johnson AB President and CEO Mats Jansson as the airline group's new president and CEO. SAS Chairman Egil Myklebust called Jansson "a respected leader who for 12 years has been president and CEO of a large number of major companies with Nordic and international operations." Jansson, 54, will take over on Jan. 1, replacing interim president and CEO Gunnar Reitan, who stepped in when Jorgen Lindegaard resigned in May ( ATWOnline, May 17).
Korean Air will place an order for 10 freighters by year end, most likely a combination of 777Fs and 747-8Fs, and also is "considering" orders for the 777-300ER and/or the 747-8 Intercontinental, according to senior executives who briefed reporters yesterday in Seoul. Korean Air Cargo President Ken Choi said the airline "definitely, for sure" will place an order for 10 freighters within the next 2.5 months. "The time is now pressing," he said. "We need them [to begin delivery] by 2010."
ACE Aviation Holdings, which was created during the bankruptcy reorganization of Air Canada, yesterday unveiled its previously announced plans for the flotation of the airline unit ( ATWOnline, Aug. 14).
Ryanair cancelled flights to and from Jerez, Granada and Seville Monday and told passengers it was unable to accept checked baggage on all flights to and from Girona, Reus, Santiago, Almeria, Murcia, Valencia, Zaragoza, Santander and Vitoria owing to a strike by Spanish baggage handlers. Passengers were permitted to carry one piece of hand luggage. The International Transport Workers' Federation warned more work actions by ground handling staff would take place, culminating in a 24-hr. strike on Oct. 23.
News from Travel Technology Update: Distribution has become "a very significant strategic issue for us," Shafiq Khan, senior vice president of e-commerce for Marriott International, said. Now that airlines have addressed their distribution costs through new deals with the GDSs and by eliminating travel agency commissions, hotels "have become the biggest payer of commissions and a big revenue source for the GDSs," Khan said. "We need to get to "more rational economics" with the GDS companies.
Twenty-five EU nations yesterday formally agreed to and signed the new interim PNR sharing agreement with the US reached on Oct. 6 ( ATWOnline, Oct. 9). The interim deal is valid until July 2007 and replaces the 2004 agreement annulled by the European Court of Justice. EU and US negotiators will seek to reach a more comprehensive and lasting agreement before year end.
Wright Amendment repeal, initiated with a June compromise struck by the cities of Dallas and Fort Worth, American Airlines and Southwest Airlines ( ATWOnline, June 16) and introduced as legislation one month later ( ATWOnline, July 17), became US law Friday when President Bush signed a bill that will eliminate the restrictions in eight years and immediately allow Dallas Love Field airlines to sell tickets to any city in the country as long a
Centavia will launch regular services from Belgrade to Podgorica and Zagreb on Oct. 25. The Serbian LCC startup said it intends to add other European destinations this fall. AirTran Airways will begin daily flights from White Plains to Fort Lauderdale, Fort Myers and Tampa from Dec. 21 aboard 717s. Dragonair will relaunch its Hong Kong-Phuket service, suspended in January 2005 following the Indian Ocean tsunami. It will operate daily A320 flights beginning Dec. 15.
Comair announced Friday that it has filed suit against the US government, FAA and airport authorities as part of an effort to ensure that compensation owed to victims' families as a result of the CRJ200 accident that killed 49 people at Lexington Blue Grass Airport in August is "shared fairly and reasonably among all parties who share responsibility," according to Comair President Don Bornhorst.
