SAS Group is selling a 67% stake in its component overhaul and support business to Singapore Technologies Engineering, parent of ST Aerospace, for €80.4 million ($96 million). SAS Group will maintain a 33% share of SAS Component. As part of the transaction, SAS will release capital from its component inventories (rotable components and spares), lifting the total value of the transaction to €260 million. SAS Group also has a put option on the remaining 33% of the shares to ST Engineering from year three of the transaction.
The European Commission took Austria, Belgium, Luxembourg and Sweden to the European Court of Justice and sent a "reasoned opinion" to Slovakia for failure to comply with legislation on air passenger rights. "We are determined to ensure that the rights of European passengers are dealt with effectively in all the member states," stated EC VP for Transport Jacques Barrot.
Australian Competition Tribunal ruled this week that the federal government will retake control of airport pricing after three years of deregulation. The decision stemmed from a dispute brought last year by Virgin Blue against Sydney Airport in which the airline said Sydney favored full-service carriers by basing fees on weight rather than passengers, a policy favored by Qantas. Price negotiations between airports and airlines now must be approved by an arbitrator.
Boeing announced yesterday that its board of directors elected Kenneth Duberstein lead director replacing the late Lew Platt. Duberstein, 61, has served on the Boeing board since 1997.
British Airways said it sacked one of three ringleaders involved in the illegal walkout by 1,000 baggage handlers, cargo loaders and bus drivers at London Heathrow in August.
Boeing selected Evergreen International Airlines to operate the fleet of three specially modified 747-400LCFs that will transport major assemblies for the 787. EIA will fly routes to and from the US and Japan and will contract with Cargolux for European flights. Sojitz Corp. will coordinate logistics and services for Japanese routes.
ANA and Japan Airlines will remove high-pressure turbine blades from 88 PW4000s powering their respective 777 fleets. JAL will spend ¥4.3 billion ($36.8 million) to replace HPTs in 46 engines while ANA will replace blades in 42 engines for ¥5.2 billion, Mainichi Daily News reported. Pratt & Whitney has been working with operators for some time to address the problem with the blades, which are subject to corrosion.
Singapore Airlines will launch thrice-weekly service to Moscow Domodedovo via Dubai from March 1 aboard a 777-200. Qatar Airways launched direct, four-times-weekly Doha-Berlin Tegel service using A319s. Cathay Pacific will increase its five-times-weekly Hong Kong-Rome service to daily beginning March 27.
Sabre said Air One of Italy slashed data communications costs 40% following conversion to a suite of SabreSonic and other systems from Sabre Airline Solutions covering passenger, revenue and fare management, planning and scheduling, movement control, dispatch management and market analysis.
CAE signed a deal with Jet Airways for a second 737-800 full-flight simulator and integrated procedures trainer for delivery in early 2007 and an upgrade for an existing simulator. It also sold a 737 Maintenance Training Simulator System to Japan Airlines and an A320 full-flight simulator and two flight training devices (A320 and 737) to an undisclosed customer. The contracts are worth a combined C$48 million ($41.7 million).
FDR data from the Southwest Airlines 737-700 overrun accident on Dec. 8 show the thrust reversers did not deploy until about 18 sec. after the aircraft touched down on Chicago Midway Runway 31C and 14 sec. before it ran through a blast fence at the end of the runway, the National Transportation Safety Board said yesterday. The aircraft continued through a perimeter fence and onto a roadway where it struck two cars, killing a six-year-old passenger in one of them.
US Dept. of Transportation, responding to a request from the Air Transport Assn., is asking for public comment on whether it should change its rules on airline price advertising. In particular, DOT wants to know "whether it should allow airlines to separate carrier-imposed charges, such as fuel surcharges, from the advertised fare in consumer advertising." ATA wants airlines to be able to list surcharges separately, which is not allowed under the current rules. DOT only permits carriers to list government-imposed taxes, fees and other charges separately.
Pelesys Learning Systems signed with LTU of Germany to provide Web-based training courseware for the next five years. It also signed to deliver its recurrent training program to Emirates.
ATA Holdings, parent of ATA airlines, took a major step toward exiting bankruptcy after the US Bankruptcy Court approved its disclosure statement, which specifies how it intends to finance its restructuring as well as its future operating plan. The reorganization plan calls for an investment of $120 million from MatlinPatterson, including $30 million in DIP financing that will be converted to equity upon emergence, up to $70 million in the form of equity and a standby commitment to purchase shares not taken up by creditors, and $20 million in exit financing ( ATWOnline, Nov.
Gol said it executed a definitive agreement related to its joint venture to create a low-fare airline in Mexico. The proposed holding company for the new airline has been incorporated in Mexico as Controladora Prosea, with Gol holding 25% of the voting capital stock and approximately 47.6% of the total capital stock. The remaining capital is subscribed by Mexican investors. The company is capitalized at $40 million, of which $19 million will come from Gol. Startup of service is expected in mid-2006. The airline will operate domestically initially, adopting Gol's business model.
Ryanair signed an agreement committing it to help develop Brussels Charleroi Airport through 2016. It will base a fourth aircraft there and launch service to Faro, Nimes, Malaga, Salzburg and Valencia from April, bringing the total number of routes it operates from Charleroi to 16. The five new routes will deliver another 250,000 passengers per year and increase Ryanair's annual traffic at CRL to 2.3 million. The airport recently announced plans to open a new terminal in 2007 able to handle 5 million passengers annually.
Korean Air selected the GEnx to power the 20 787s it ordered earlier this year. The deal is worth more than $240 million, according to GE, which will deliver the engines beginning in 2009.
BAA is implementing a range of options to avoid a shortage of fuel supplies for the airlines operating from London Heathrow following Sunday's explosion at the Buncefield oil depot, which provided LHR with one-third of its aviation fuel. BAA has increased the amount of fuel it receives from its three other suppliers. No flights have been canceled. "The airport continues to operate as normal and our contingency plans are regularly being reviewed as we learn more about the level of disruption," a BAA Heathrow spokesperson confirmed to ATWOnline.
Independence Air, also known as FlyI, continued to trim its sails by announcing the elimination of service to four more cities effective Jan. 5. Chicago, Jacksonville, Buffalo and Manchester (N.H.) will be dropped and frequencies will be reduced in "almost all of our markets," spokesperson Rick DeLisi told ATWOnline. He said approximately 50 jobs at the four locations are being eliminated
Cendant Corp., less than six weeks after it announced it was breaking itself up into its component businesses ( ATWOnline, Oct. 26), warned that fourth-quarter earnings will not meet expectations owing to "continuing challenges at its Travel Distribution Services division," which includes Orbitz and the Galileo GDS.
Air France and TAM signed an agreement this week to develop jointly Sao Paulo and Rio de Janeiro as connecting hubs to Brazilian and Latin American destinations on TAM's network. The accord covers an increase in frequencies from seven to 10 per week from Paris CDG to Sao Paulo and daily flights to Rio de Janeiro, with onward connections to 10 Brazilian destinations via Sao Paulo and seven through Rio. TAM will offer passengers departing from Brazil flights to eight French cities via AF's CDG hub.
Royal Jordanian said yesterday it expects 2005 and 2006 net earnings "similar" to the JOD17.5 million ($24.6 million) achieved last year. Revenues for 2005 are expected to be JOD389 million, increasing 20.6% to JOD469 million in 2006. Expenses are expected to climb 20.7% from JOD 377 million this year to JOD455 million.
Dallas/Ft. Worth International Airport will lose service to five US cities and one international market and see flights to several additional cities pared as American Airlines reapportions assets at its principal hub following this month's action to open Missouri to flights from Dallas Love Field. Southwest Airlines launched service to Kansas City and St. Louis yesterday and American countered with the announcement of its schedule from Love Field to the Missouri cities, San Antonio and Austin beginning March 2 ( ATWOnline, Dec. 13).
