Ryanair, while warning that its fuel costs will be higher than expected if oil prices stay at current levels, maintained its earnings guidance for its current financial year. The LCC is unhedged on fuel until September, but from that point it has hedging in place for 90% of its fuel needs at $47 per barrel. "If it stays at $60 through the remainder of the summer and the winter, our fuel bill will be higher than originally predicted," CEO Michael O'Leary said at a press briefing in London.
Vietnam Airlines yesterday signed a firm agreement with Boeing to purchase four 787-8s at a signing ceremony in Washington. The deal was announced in December ( ATWOnline, Jan. 4). The aircraft, valued at $500 million at list prices, are scheduled for delivery in 2009 and 2010. The agreement also includes purchase rights for 11 additional aircraft in the 2010-13 timeframe. Engine selection was not announced. The carrier plans to use the 787-8s to expand its route system and replace some existing aircraft.
Delta Air Lines and Delta Connection carrier Atlantic Southeast Airlines both will begin seasonal daily nonstop service between Salt Lake City and Steamboat Springs. ASA will operate flights on the route from Sept. 10 through Dec. 16, while Delta will operate mainline service between the cities from Dec. 17 through April 1.
United Airlines carried its 3,888,888th passenger from the US to China. It currently operates four daily services to China, flying from San Francisco and Chicago to Beijing and Shanghai.
Snecma Services signed an exclusive five-year contract with Oman Air for maintenance and repair services for the CFM56-7B engines powering its six 737s. It also signed a three-year contract with Czech Airlines to provide maintenance and repair services for the CFM56-5B engines powering its four A320 family aircraft.
US mainline system revenue per ASM for the eight largest US passenger airlines (excluding Southwest) rose 5.2% in May compared to the year-ago period on a 2.4% increase in capacity, according to JP Morgan, which cited data from the Air Transport Assn. Yield was up 0.6%--the first year-on-year increase since July 2004--and revenues climbed 7.7%. JP Morgan's Jamie Baker described the RASM rise as "stronger than expected."
AMR Corp. Chairman and CEO Gerard Arpey and leaders of the Allied Pilots Assn., Assn. of Professional Flight Attendants and Transport Workers Union will lead approximately 300 uniformed employees in a rally on Capitol Hill today to campaign in favor of pension reform legislation and to remind legislators that American "is on a different path than many airlines, fighting to maintain--not abandon--its defined benefit plans."
Iberia took delivery of its 13th A321. The new aircraft, which is configured to carry between 186 and 194 passengers, will be used on domestic and European routes. Iberia now operates 80 A320 family aircraft.
Continental Airlines yesterday said it applied to the US National Mediation Board for the immediate appointment of a federal mediator to help in its negotiations with its flight attendants. Earlier this year, the flight attendants rejected a tentative agreement, becoming the only workgroup at the carrier that did not ratify a new deal ( ATWOnline, April 1). Continental has said it needs $500 million in annual pay and benefit savings from its employees and has achieved roughly $418 million of that total.
American Eagle Airlines will launch two daily nonstop flights between Gulfport-Biloxi International and Dallas/Ft. Worth International Oct. 30 using 50-seat ERJ-145s.
Actel Corp. announced that it has provided field-programmable gate arrays and intellectual property core modules for a number of applications onboard the A380. More than 700 devices from the company's ProASIC Plus and SX-A FPGA families have been designed into the following applications: Flight computers, engine control monitoring, braking systems, safety warning systems, cabin air conditioning and pressurization and cockpit displays.
United Airlines is offering a 5% discount for residents of Washington on flights departing from any of the three D.C.-area airports purchased through the carrier's website. The offer is good for tickets booked between June 21 and Aug. 31 and the travel period for the deal is June 21 to Oct. 31.
Lufthansa Systems and Garuda Indonesia launched a joint venture called Lufthansa Indonesia specializing in software development and data center services. Applications will focus on solutions for various distribution channels, customer loyalty programs, CRM solutions and integrated onboard processes. Garuda has a long-term strategic partnership with LHS under which it will use the new LHS passenger solutions for core processes including inventory, departure control, reservations and check-in.
Standard Aero signed an exclusive contract with GoJet Airlines to service the APUs on the carrier's CRJ700s. The initial maintenance contract is worth more than $5 million over 15 years, the company said.
Gol said it will build a new 30.5 million reais ($12.8 million) aircraft maintenance center in Confins. Construction begins in July and should be completed by early 2006.
Smiths Detection has formed a strategic partnership with Paladin Capital Corp., a private equity investment firm based in Washington. Smiths said the relationship aligns it with a partner "focused on investing in homeland security technology businesses."
Sierracin/Sylmar Corp. was selected by Mid-Western Aircraft Systems as the primary source for flightdeck windows on the 787. Mid-Western, formerly the Wichita division of Boeing, is providing the nose section of the 787.
National Air Traffic Services named Marconi Chairman John Devaney as its nonexecutive chairman. He will succeed Chris Gibson-Smith, who will retire on Aug. 31. Devaney, 58, will join the board from July 1 and become chairman Sept. 1.
Hooters Air will begin nonstop service from Allentown and Myrtle Beach to Orlando on July 9. The airline also will begin new nonstop service to Chicago/Rockford from Myrtle Beach on July 14.
TAP Portugal ended negotiations to acquire a 20% stake in Varig following the Brazilian carrier's bankruptcy filing Friday. The bankruptcy filing voided the agreement, a senior Varig official told the Associated Press. The carrier will continue to operate as it seeks to reorganize under the New Bankruptcy and Restructuring Law of Brazil, which took effect June 9 and is similar to US Chapter 11. The filing became necessary, Varig said, to prevent lessors from repossessing aircraft for which payments are in default.
Continental Airlines named Mike Bonds senior VP-human resources and labor relations replacing Michael Campbell, who retired at the end of 2004. In this position, Bonds will be responsible for all of Continental's human resources and labor relations including compensation, benefits, staffing and corporate training. Bonds, who has served as VP-human resources since 2003, will continue to report to President Jeff Smisek.
