Cargolux, as expected, has emerged as one of the launch airlines for the 747ADV after its board authorized management to enter into final negotiations with Boeing for a minimum of 10 of the type for delivery beginning in 2009. President and CEO Uli Ogiermann said, "Management's recommendation to the board is the result of a very thorough analysis during which we assessed which aircraft was best suited to our fleet renewal in the next decade.
Embattled Independence Air received another blow yesterday when US FAA proposed to fine parent Atlantic Coast Airlines $1.5 million for maintenance violations including operating an aircraft for approximately 455 flights beyond a required C check in the fall of 2004. FAA also alleged that the carrier operated several aircraft on more than 7,400 flights last year without replacing expired emergency locator transmitter batteries and several more aircraft on more than 3,600 flights without performing required inspections and tests on a variety of systems and components.
Continental Airlines will begin nonstop Saturday service between Newark and Liberia, Costa Rica, on Dec. 17 using a 737-700 in a two-class configuration. The carrier currently operates daily nonstop service to Liberia from Houston.
Ryanair said it will base two new 737-800s at Pisa and launch daily routes to Dublin from Oct. 12 and Eindhoven and Alghero from Jan. 12, bringing the total number of routes from Pisa to 10. Pisa will be its 14th European base.
Raytheon was awarded a $4.6 million contract to supply turnkey installation of an airport surveillance radar for Maiquetia International Airport in Caracas. Consorcio Hardwell Computer is the prime contractor for the project.
Mba was awarded a four-year contract valued at $1.7 million by the US Export-Import Bank to perform airline and aircraft technical due diligence under the bank's Worldwide Aviation Inspection Services program.
American Airlines parent AMR Corp. overcame record fuel prices and intense competition to report net earnings of $58 million for the second quarter ended June 30 compared to income of $6 million in the year-earlier quarter.
Delta Air Lines announced yesterday that Executive VP and CFO Michael Palumbo has resigned "to pursue other opportunities" and is being replaced by Edward H. Bastian, a six-year Delta veteran who most recently was CFO at Acuity Brands Inc. Palumbo spent around 14 months at Delta, having joined the company following the resignation of Michelle Burns in April 2004. Bastian previously served at the airline as senior VP-finance and controller. Also yesterday Delta named Jim Whitehurst COO, a position that had been vacant.
Air France is negotiating with Brazilian low-cost carrier Gol as well as with TAM to conclude a cooperation agreement, Le Figaro reported. AF is keen on increasing its market share in the Europe-South America market, specifically to Brazil, and currently operates daily services between Paris CDG and Rio de Janeiro and Sao Paulo. An accord with Gol would secure connections to destinations beyond Rio while TAM could provide travel beyond Sao Paulo.
On-again off-again talks between Valuair and Qantas-operated Jetstar Asia about an alliance or merger are back on, with analysts in Singapore claiming that Qantas will put an additional S$50 million into the merged airline. ATWOnline understands that staff from an Australian financial institution flew to Singapore late last week to tie up the deal. Qantas owns 49% of Jetstar Asia and initially funded the LCC with S$50 million. Jetstar Asia is expected to start services to Kolkata on Aug. 18.
Response to Air New Zealand's new long-haul product has exceeded expectations. Group GM-Marketing, Network and Sales Norm Thompson told ATWOnline that the airline received "overwhelmingly" positive feedback from customers on the initial flights. He said ANZ has sold almost 8,000 Pacific Premium Economy sectors even before the new long-haul product officially enters service on the Melbourne-Auckland-San Francisco route Aug. 7.
Aviapartner shareholders reached agreement on the acquisition of the ground handling company by private equity fund 3i and certain Aviapartner managers. Price was not disclosed. The special-purpose company for the takeover is called Aviapartner LH3 SARL. Over the coming months, CEO Alex Verougstraete will assume the position of nonexecutive director and Theo Dilissen will become the new CEO. Completion of the transaction, which is subject to customary conditions, is expected by the end of August.
Southwest Florida International Airport has postponed the opening of its new terminal, which was scheduled for July 20. The airport said the new opening date will be announced once a certificate of occupancy has been issued. According to the airport, the terminal still needs US Transportation Security Administration certification of the baggage-handling system, installation of airline data systems and e-ticket kiosks, the life-safety and building systems, training and general cleanup.
Continental Airlines returned to profit in the second quarter ended June 30, reporting income of $100 million compared to a restated loss of $28 million in the year-ago period as revenue growth and savings from its labor restructuring agreements overcame record fuel prices. Net income for the current period included a $47 million gain related to the contribution of ExpressJet shares to its defined benefit pension plan during the quarter. Excluding this gain, net income totaled $53 million. The 2004 results were restated to reflect changes to lease accounting methods.
Air Europa finalized an agreement for the purchase of 18 737-800s announced at last month's Paris Air Show. The order is valued at approximately $1.2 billion at list prices, Boeing said. Deliveries begin in 2007 with three new airplanes to be delivered annually. SkyEurope finalized its previously announced order for four 737-700s worth $220 million at list prices. The order includes purchase rights for up to 16 additional airplanes. The carrier also will lease 12 737s from GE Commercial Aviation Services. All 16 will be equipped with winglets.
National Mediation Board yesterday declared an impasse in the contract dispute between Northwest Airlines and the Aircraft Mechanics Fraternal Assn. The two sides now have entered a 30-day cooling-off period that expires Aug. 20. At that point, NWA may impose a new wage and benefit contract and AMFA is free to strike ( ATWOnline, July 20).
Embraer was awarded type certification for the 170 and 175 from Transport Canada Civil Aviation, which will enable deliveries to begin of 15 175s ordered by Air Canada. The aircraft will be configured for 73 passengers in two classes. As of June 30, Embraer had delivered 66 170s and logged 412 firm orders for the 170/190 family, which range from 70 to 118 seats. Certification of the 190 is expected in the third quarter and of the 195 in the 2006 second quarter.
British Airways launched a review of its long-haul options primarily for the replacement of its 767 fleet and supplemental aircraft for its 777 fleet. It also is considering the 747ADV but wants to see the A380 in airline service before deciding. CEO Rod Eddington, who will retire on Sept. 30, earlier told ATWOnline that he studied the 777-300ER as an ideal 747-400 replacement. Responding to questions from the Financial Times at BA's annual shareholders meeting, Chairman Martin Broughton added that the airline also is looking at the 777-200LR.
Germanwings started a new thrice-weekly service from Cologne to Moscow Vnukovo on July 16. Centralwings plans to begin a new weekly Warsaw-Grenoble service by November.
Carinthian Spirit, a new Austrian Regional, will start daily Klagenfurt-Salzburg-Zurich service by Sept. 5 using a CRJ200. The carrier is owned by Styrian Spirit, which also operates regional brands Slovenian Spirit from Maribor and Salzburg Spirit out of Salzburg. The new brand is named after the southern Austrian province of Carinthia. Carinthian opened its base in Klagenfurt and plans to add a second CRJ, expected to be a new CRJ700, by next year to start Klagenfurt-Graz-Amsterdam service in cooperation with KLM.
Sen. John Ensign (R-Nev.) yesterday introduced a bill designed to lift flight restrictions imposed by the Wright Amendment, a 1979 federal law that limits airlines operating at Dallas Love Field to serving destinations within Texas and seven nearby states. Sen. Joseph Lieberman (D-Conn.) is a co-sponsor of the bill. Earlier this year, Texas Republican Congressmen Sam Johnson and Jeb Hensarling introduced their own legislation called the Right to Fly Act, which immediately would repeal the Wright Amendment ( ATWOnline, May 27).
Bmi will deploy Lufthansa Systems' new passenger system FACE. The UK airline, in which Lufthansa holds a stake, has been using Lufthansa Systems' previous passenger solution MultiHost for its reservations, ticketing and check-in operations since 2001. Check-in will be migrated to FACE at all bmi stations as early as 2005. In 2007, bmi will migrate all core modules of its passenger system to the FACE platform, including reservations, inventory management, ticketing and boarding and other passenger-related service processes.
Republic Airways Holdings announced a follow-on public offering of 7.75 million shares of common stock--all of which are being offered by the company--at a price of $12.60 per share. Merrill Lynch served as the sole bookrunner and Raymond James & Associates acted as co-manager. The company also granted the underwriters an option to purchase up to an additional 1,162,500 shares to cover overallotments.
Aero Vodochody is drafting proposals to set up a second airport in Prague that could help relieve some of the traffic from the fast-growing Ruzyne hub, Reuters reported. The military jet maker yesterday said it had developed a plan to convert its company airstrip north of the city into an international airport for use from 2006. A final decision on the project would be up to a new owner of the company. The government has said it aims to sell Aero by next year's election.
