LAN simplified its fare structure to include seven fare categories. The new structure is "based on seven different characteristics [and] is much easier to understand," according to the airline.
Cyprus Airways intends to present a restructuring plan to the European Commission by next month. The government-controlled carrier, which was affected by the costs associated with the shutdown of its financially troubled Greek subsidiary Hellas Jet in May, posted a net loss of CYP20.4 million ($44.7 million) for the first half of 2005. The EC approved an emergency loan of $64 million in May but further aid is subject to completion of an EU-approved plan to return the carrier to commercial viability.
US Airways received interim approval from the bankruptcy court to sell and lease back five A330s, nine A319s and five A320s. If given final approval, the transactions will raise more than $120 million in liquidity. The court also approved a deal reached between US Airways and the US Pension Benefit Guaranty Corp. resolving nearly $2.7 billion in claims. Under terms of the agreement, the carrier will pay PBGC $13.5 million in cash in addition to giving it a $10 million note and 70% of the common stock being allocated to unsecured creditors.
Embraer reached an agreement with Regional, a wholly owned subsidiary of Air France, covering the purchase of six GE CF34-powered 190LRs valued at $189 million with options on a further six. Deliveries begin in the first quarter of 2007. The order replaces an existing commitment from the carrier for seven ERJ-145s. The 190s will be configured for 100 seats. Regional currently operates a fleet of 50 Brasilias, ERJ-135s and ERJ-145s.
Ryanair carried 3.26 million passengers in August, up 27% on the year-ago period. Load factor fell 1 point to 91%. The LCC noted that for the first month in its history it carried more passengers on its European network than British Airways did on its worldwide network, although this likely was owing to disruption of BA operations at London Heathrow last month (see next item). For the rolling 12 months ended Aug. 31, Ryanair's earned seats amounted to 30.97 million and load factor averaged 84%.
An-26B cargo aircraft operated by Galaxie dba Kavatshi Airlines crashed on approach to Isiro in the Democratic Republic of Congo Monday, killing all 11 passengers and crew onboard. According to Aviation Safety Network, which cited AFP and Radio Okapi, the aircraft struck a tree and crashed approximately 1.5 km. from the runway.
China gave the green light for China Airlines, EVA, Mandarin Airlines and Uni Airways to transit its airspace after Taiwan agreed about a month ago that the carriers could apply for permission. Overflying China will cut the airlines' fuel consumption significantly on flights to Europe. Taiwan continues to spurn Chinese invitations to open direct flights to the mainland.
Olympic Airlines reported that revenue and passenger traffic increased in the first seven months of 2005 compared to the year-ago period. Revenue rose 14.6 % to €298.6 million ($372.4 million) on a 3.6% gain in passengers to 3.34 million. Results were achieved with four fewer aircraft as the fleet dropped to 40 from 44.
Azerbaijan Hava Yollari took delivery of the first of four CFM56-powered A319s during a ceremony in Baku last week. The order includes an A319CJ. The Azerbaijani flag carrier also leases an A320.
Boeing is moving closer to the launch of the 747-400ADV with the announced sale of four 747-400Fs to Nippon Cargo Airlines. According to insiders at the manufacturer, the next delivery slots are 747-400ADV aircraft. This year the company has sold 24 747-400s and now has a backlog of 30 net of five cancellations logged in 2005. Cargolux has announced its intention to order 10 747-ADV freighters. Other carriers identified with the program are China Airlines, Malaysia Airlines, Japan Airlines, Singapore Airlines and British Airways.
B/E Aerospace was selected by Connexion by Boeing to provide integration, certification and kit production of inflight high-speed Internet service for 777s and 767s.
AirTran Airways reached a tentative agreement on a four-year contract covering approximately 450 aircraft mechanics and inspectors represented by the International Brotherhood of Teamsters. If ratified, the accord becomes effective Oct. 1.
Phuket Airlines requested a clarification from both the UK and France as to why it is banned, according to the Bangkok Post, which quoted a letter from Senior VP Kanin Phuvasiten to the French DGAC.
China Southern Airlines ordered eight A330-300s and two A330-200s with deliveries in 2007-08, Airbus said, noting that the carrier already operates four A330-200s. China Aviation Supplies Import and Export Group also was involved in the deal, signing a GTA with Airbus. Engine selection and value of the agreement were not announced. China Southern's current A330s are powered by Rolls-Royce Trents.
Mandala Airlines 737-200 PK-RIM crashed Monday seconds after taking off from Medan in Indonesia, killing 102 of the 117 aboard plus as many as 47 people in a marketplace where it came to rest. Passengers who survived the crash all appeared to have been seated in the rear of the aircraft. The accident occurred around 9:40 a.m. local time and the 737 went down just 500 m. from the end of the runway. Mandala was formed in 1969 and is run by a military foundation. It operates a 727-200, 13 737-200s and two 737-400s on domestic routes. The accident aircraft was built in 1981.
European Commission proposed to begin aviation negotiations with Australia, Chile and India, seeking "further opening of the respective air markets and enhanced regulatory cooperation." VP in Charge of Transport Jacques Barrot said Monday, "The single aviation market in the EU with open market access and high regulatory standards has created huge benefits for the EU aviation industry and consumers. I believe that this success can be repeated in our international relations."
Aviapartner signed a three-year contract with Lufthansa to provide ramp handling services for Lufthansa Regional at Cologne/Bonn effective Sept. 1. Lufthansa Regional includes Lufthansa CityLine, Eurowings and Augsburg Airways. Aviapartner said it invested €2 million to undertake the contract, which covers a variety of fleet types.
Boeing named Jean Pritchard VP-Commercial Airplanes and commercial activities for Washington operations. Pritchard, 53, most recently served as director-commercial international programs for Asia and the Americas for five years.
CTT Systems said its Zonal Drying System will be standard equipment on the 787 while its humidifiers will be offered as an option for flightdeck and crew rest areas. The potential value including aftermarket exceeds $250 million over the life of the program.
European Commission confirmed that it decided to reduce the financial assistance granted to the new Athens International Airport because the airport violated some requirements. In total, some €12.8 million in financial aid is being removed. AIA, which started operating in March 2001, was co-financed with €250 million from the EU's Cohesion Fund. It is owned 55% by Greece and 40% by German construction group Hochtief.
Some 16,500 Boeing workers went on strike Friday after the employees, who are represented by the International Assn. of Machinists and Aerospace Workers, overwhelmingly rejected what the company termed its "best and final offer" earlier in the week. The workers are striking Boeing facilities in Washington, Kansas and Oregon including commercial transport manufacturing plants in Everett and Renton, Wash.
Air France-KLM Group said it expects its operating profit for the current fiscal year ending March 31 to exceed the €534 million ($667 million) reported under IFRS for its 2005 fiscal year ( ATWOnline, July 1) as it reported that operating profit for the fiscal first quarter ended June 30 climbed 27.3% to €223 million from €175 million last year.
SN Airholding reported an unaudited consolidated net profit of €15.2 million ($19 million) for the first half ended June 30. The figures represent, after amortization of goodwill, the six-month result of SN Brussels Airlines and the second quarter of Virgin Express and its subsidiary Virgin Catering. The Virgin companies were integrated into SN Airholding as of April 1.
Lufthansa Systems will provide its Future Airline Core Environment to Qatar Airways for reservation and passenger systems. In a statement, the companies said they viewed the selection "as the beginning of a strategic IT partnership that will expand into other areas of the airline as well," such as the development and implementation of software for Qatar's Integrated Operations Control Center. Initially, LHS will equip all 66 stations of the Doha-based carrier with its departure control system and Qatar will implement LHS's baggage reconciliation system.
