Air France-KLM Group posted "an excellent performance" in terms of both traffic and unit revenue in September. Traffic increased 9.6% to 16.07 billion RPKs on 4.9% higher capacity of 19.35 billion ASKs and load factor gained 3.6 points to 83.1%. The number of passengers rose 7.3% to 6.2 million. Traffic on the European network, including France, increased 7.6% on a 1.3% rise in capacity and load factor was up 4.4 points to 74.4%. Cargo activity saw a slight improvement, with traffic ahead 2.3%. Capacity grew 6.6%, causing cargo load factor to slip 2.7 points to 65.2%.
SAS is set to unveil a new efficiency program next month in response to continuing losses, particularly among its Swedish and Danish Scandinavian Airlines units, Group President and CEO Jorgen Lindegaard told media Friday. The company already has reaped SEK12.8 billion ($1.7 billion) in savings out of a goal of SEK14 billion from its Turnaround 2005 program, but that is not enough, Lindegaard said. "SEK14 billion is fine, but we have to go [beyond] that. We have loss-making companies in Sweden and Denmark, which we won't allow [to make losses] next year."
Boeing selected Pfalz-Flugzeugwerke to provide metallic tubing and ducting for the 787, including the design and manufacture of tubes for the fluid supply for the hydraulic systems. PFW selected strategic partner Garner CAD Technic to assist with the design of the tubing elements.
Lufthansa Systems said Asiana Airlines decided to deploy its Sirax revenue accounting system. LHS will work closely with Asiana IDT, the carrier's IT subsidiary, to implement the solution.
Delta Air Lines said it is resuming its full flight schedule after canceling "select flights" as part of emergency fuel conservation efforts adopted "to address critical fuel shortages" in the southeastern US that were created by Hurricanes Katrina and Rita. The carrier did not provide a figure for the number of cancellations during the two weeks that the "short-term emergency fuel conservation initiative" was in effect.
Iberia, as expected, unveiled its three-year Director Plan aimed at increasing productivity and revenues while reducing costs, largely through a combination of layoffs, outsourcing and automation. The plan also calls for a three-year wage freeze, "linking payroll increases to results." A profit improvement target was not presented, but a target of €600 million ($726 million) has been reported previously ( ATWOnline, Oct. 3).
Independence Air announced the departure of CFO Richard Surrat, who "resigned in order to pursue other opportunities." His replacement is David Asai, a seven-year veteran of the company who served most recently as VP, controller and assistant secretary.
MAIR Inc., parent of Mesaba Airlines, warned Friday that it may have to file for bankruptcy protection in light of actions taken by its bankrupt partner Northwest Airlines. Northwest has defaulted on $28 million owed to the Airlink carrier and is removing nine of 35 Avro RJ85s it subleases to Mesaba by the end of this month in order to return them to the lessor. It has said it intends to repossess the remaining 26 by year end.
Guardian Technologies International received approval from the US Dept. of Commerce to export its PinPoint explosive detection technology to China and Russia. The export licenses will allow Guardian to install the technology on pre-existing x-ray scanning equipment installed at airports in Moscow and Shanghai for trial projects.
Air New Zealand delayed by one week an announcement that is expected to involve more orders for 777s and 787s. Last year it ordered eight 777-200ERs and two 787s and took price rights and options on 42 more 777/787s. Last month, retiring CEO and MD Ralph Norris told ATWOnline that ANZ had to move on the options because of "high demand" for the types.
European Union transport ministers agreed last week in Luxembourg on a common EU approach to protecting persons with reduced mobility against discrimination and ensuring they receive appropriate assistance when traveling by air.
TNT Express signed a contract with GECAS for two additional 737-300SFs, bringing the total number of 737s in its fleet to nine. The new aircraft will be converted from passenger to freighter configuration by IAI's Bedek Aviation Services and modified to comply with Chapter IV noise emission standards. TNT will introduce the aircraft to its European Air Network in August and December 2006.
United Airlines parent UAL Corp. will exit bankruptcy via a $3 billion, six-year, all-debt financing package, the company said yesterday. JP Morgan and Citigroup will be lead managers for the offering, which UAL said has "very competitive terms." The interest rate is LIBOR plus 450 basis points. Exit financing will be used to repay the debtor-in-possession facility, make other payments required to exit bankruptcy and insure a strong cash balance when the company leaves bankruptcy.
Prisma Aviation Services remarketed an ATR 42-300 together with a package of spare parts to aircraft inventory and parts specialist Dart Aviation in France. The aircraft, which had been stored at Rome Fiumicino since March 2005 following the voluntary liquidation of Air Industria in 2003, will be parted out.
US and Russia agreed yesterday to open up more polar routes for US airlines as part of a broader package of amendments to the 1994 US-Russia air agreement. According to the US Dept. of Transportation, the changes "significantly [increase] the rights of US carriers to fly over Russian airspace on flights between the US and Asia," including using polar routes for services to China. And for the first time, the agreement allows US airlines to transit Russian airspace on nonstop flights between the US and India.
Goodrich will support its components on GoJet CRJ700s under a long-term agreement with the Trans States Holdings affiliate, which operates as a United Express partner. The deal covers Goodrich products such as sensors, lighting, fuel and utility systems, seating and actuation systems.
Indonesian government banned the operation of 737-200s owing to "safety concerns" in the wake of last month's Mandala Airlines crash. At the same time, the government banned all aircraft more than 35 years old and/or with more than 70,000 cycles. The crash was the eighth involving Mandala since 1975 and there have been 74 crashes involving transport aircraft in Indonesia since 1990.
RASSA Holdings said Aeropostal Alas de Centroamerica signed an agreement to use its R@N Web-based passenger service system. The proposed startup airline is based in Costa Rica and plans to begin operations this month using DC-9s and MD-80s.
Malaysia Airlines deferred by three months a decision on the choice of aircraft to replace its 39 737-400s. The order was to have been announced by Sept. 30. Thai International announced that it will replace its four MD-11s with A340-600s. The MD-11s will leave the fleet by March.
Austrian Airlines, as previously reported ( ATWOnline, Oct. 3), ordered a 777-200ER for delivery in late 2006, Boeing confirmed. Aircraft is valued at $181 million at list prices. At the same time, Austrian canceled a previous order for a 737. Engine selection for the 777 was not announced, but Austrian's three in-service 777s are powered by GE90s.
Italian government, as expected ( ATWOnline Oct. 6), approved a financial assistance package for Italian airlines amounting to €200 million ($239 million). Deputy Transport Minister Mario Tassone stressed that the aid package is directed to the Italian airline industry as a whole to "help them overcome moments of crisis owing to the rising fuel price," La Republica reported. It added that Alitalia will receive approximately €80 million.
American Airlines Cargo raised its fuel surcharge from $0.50/kg. to $0.55/kg. for most international shipments of US origin and from $0.20/lb. to $0.22/lb. for US domestic shipments. New rates take effect Oct. 19. The fuel surcharge also will be adjusted in local currency for most shipments not of US origin unless the adjustment is not allowed for regulatory reasons.
Ray Siegfried II, who built Nordam Group into one of the largest privately owned aerospace companies in the world, died Thursday at the age of 62. He had been suffering from amyotrophic lateral sclerosis, also known as Lou Gehrig's disease. Siegfried, who stepped back from the CEO position in 2001 when he was diagnosed with ALS, served as chairman. When he took over what was then Northern Oklahoma Research, Development and Manufacturing Co. in 1969, the firm was bankrupt and had only eight employees. Today it has more than 2,300 people at locations around the globe.
Iberia financed an A340-600 on a 12-year Spanish operating lease. Equity was supplied by Madrid Leasing while the debt was underwritten by Caja Madrid and Royal Bank of Scotland.
Launch of the A350 reignited the trade conflict between the US and EU over state subsidies to Boeing and Airbus for the development of large civil aircraft. The US and EU currently are engaged in litigation at the World Trade Organization over the subject. Airbus has asked for and received approval for repayable launch aid loans amounting to a third of the €4.35 billion development cost of the program from the partner governments.
