Star Alliance members are "extremely impressed" with the 787, according to Thai President Kanok Abhiradee, who told ATWOnline that Thai International is looking at the type and will make a decision on whether to place an order within four months. Another Star member, Singapore Airlines, which put off ordering the 787 last year, has issued a new RFP for 20 250-seaters. Earlier this year, SIA CEO Chew Choon Seng told this website that the 787-3 business case did not work against the A320/737 offerings of low-cost airlines in the region.
Lufthansa on Friday said 96% of the share capital of Swiss International Air Lines has been tendered to AirTrust AG, the Swiss-domiciled vehicle through which the German airline is acquiring the struggling carrier. The Swiss major shareholders accounted for 84.6% and a further 11.4% came from minority shareholders. A total of 6,098,426 shares held by the small shareholders were tendered, corresponding to 73.6% of shares held by them at the end of the offer period.
After almost entering oneworld last year, Swiss International Air Lines will become a member of the Star Alliance after the chief executive board of Star unanimously approved the carrier's application for membership at its biannual meeting in Kyoto. The move was widely expected after Lufthansa, a founding member of the alliance, agreed in March to purchase Swiss ( ATWOnline, March 23).
Boeing reached agreements with several Chinese suppliers for production of commercial aircraft parts and components, including parts for the 787, worth an estimated $600 million. The company said it finalized a deal for the 787 composite rudder, the 737 forward entry door and the 737 automatic over-wing exit door with Chengdu Aircraft Industrial Co. Ltd., a China Aviation Industry Corp.-I affiliate. Also completed were contracts for 787 wing-to-body fairing panels with Hafei Aviation Industry Co., an AVIC-II affiliated company.
US FAA issued a blistering report yesterday in which it claimed that "union-controlled scheduling practices" at the New York Terminal Radar Approach Control facility were "inefficient and wasteful" and resulted in overtime costs that are "more than double" those at any other ATC facility in the country. The report, the result of a 60-day investigation begun in March, also found that recent attempts by FAA management to curb wasteful practices "were met with resistance, followed by anonymous reports of 'operational errors.'"
Declaring that "a combination of market deregulation and new technology has now created the right scenario" for change, Star Alliance announced in Tokyo that it "has initiated a major cost-reduction effort" by seeking alternative channels to global distribution systems such as Amadeus, Cendant (Galileo), Sabre and Worldspan through so-called GDS new entrants or GNEs.
EADS for the second time postponed appointment of its top executive team, including a new Airbus CEO to succeed Noel Forgeard, owing to continuing disagreements between management and shareholders. Media reports suggested that current COO Gustav Humbert would be tapped to replace Forgeard, who has been designated to become co-CEO of EADS along with EADS Defense and Security Systems Division head Tom Enders.
LOT Polish Airlines is expected to announce an order within a few days for six new long-haul aircraft to replace its four 767-300s and two 767-200s. The order is expected to be for either 787s or A350s.
Hawaiian Airlines, as planned, emerged from bankruptcy yesterday after more than two years in Chapter 11 protection. The company said exit financing includes a $60 million bridge financing in the form of a newly issued series of its subordinated convertible notes that will be purchased by RC Aviation pursuant to an August 2004 backstop financing commitment.
Narita International Airport Corp., touting efficiencies and savings gained through last year's privatization, announced it submitted a proposal to IATA to reduce landing charges. The steepest reductions would go to operators of the quietest aircraft--those listed as Category A in the ACI Noise Rating Index. The airport operator proposed a sliding scale of charges ranging from ¥1,650 ($15) per ton for aircraft in Category A (some A340s and 777s) to ¥2,150 per ton for the noisiest Category F aircraft (747-200s/300s). The current across-the-board rate is ¥2,400 per ton.
EasyJet will add five new summer sun routes--Belfast-Faro, Gatwick-Mahon, Newcastle-Ibiza, Liverpool-Ibiza and Bristol-Mahon--bringing its total routes to 210 to 63 airports throughout Europe during the peak months from mid-July to early September. London Gatwick also will see an increase in frequencies this summer on routes to Marseille and Athens to meet increased seasonal demand.
UAL Corp., parent of United Airlines, reported a $124 million net loss for April, which included $28 million in reorganization expenses. The company previously reported it lost $127 million in April 2004, including $28 million in reorganization expenses ( ATWOnline, May 28, 2004). Operating loss for the month totaled $47 million, a $28 million improvement over the year-ago period despite $91 million in additional fuel expense.
Susumu Yamaji, former president and chairman of Japan Airlines, died in Tokyo May 27 at the age of 80. Yamaji joined JAL in July 1985 after a career in the Ministry of Transport and other government agencies. He was appointed president in December 1985 and helped to restore the airline following the August crash of a 747 in which 520 people were killed. He also oversaw the privatization of JAL in 1987. In June 1990 he was appointed vice-chairman, subsequently becoming chairman in 1991. He retired from the chairmanship in June 1998 but continued to serve as an adviser.
Air New Zealand will not reapply for regulatory approval for an equity alliance with Qantas. Speaking to ATWOnline in Kyoto at the Star Alliance AGM, ANZ CEO Ralph Norris said the airline is looking at some "cooperation with Qantas" but an equity alliance is off the agenda. The carriers fought a two-year battle with regulators for Qantas to take a 25% stake in ANZ in a far-reaching alliance. Both applications initially were rejected last year but an appeal to the Australian Competition Tribunal was successful, opening the way for a fresh bid.
Delta Air Lines said it reached agreement to amend several financial covenants included in its credit agreement with GE Capital Corp., which was finalized in December. According to a filing with the Securities and Exchange Commission, the amendment reduces the EBITDAR levels Delta must meet for certain periods, which the airline said was necessary because of high fuel prices. In addition, it increases the unrestricted funds that Delta is required to maintain to not less than $1 billion at all times.
Lufthansa is expanding its Lufthansa Private Jet to Frankfurt, citing a "thoroughly positive" customer response since the service was launched at Munich on March 29. From June 1, first and business class passengers flying LH from Frankfurt to any destination worldwide can arrange to purchase travel to Frankfurt by Lufthansa Private Jet. Likewise, passengers arriving at FRA aboard long-haul flights can connect to more than 1,000 airports throughout Europe. Private Jet flights depart from and arrive at Egelsbach Airport close to FRA.
Ethiopian Airlines boosted its firm order for 787s to 10 by exercising purchase rights for five more of the jets ( ATWOnline, Feb. 7). The order, which now has a value of $1.6 billion at list prices, also was finalized. Ethiopian is scheduled to receive its first 787 in 2008. CEO Girma Wake told ATWOnline during the IATA AGM in Tokyo that the carrier is looking for two 777-200s in order to launch a thrice-weekly service from Addis Abba to New York via Accra by October. "If no 777s are available on the market, we will lease two 747-400s.
Bombardier reported net income of $55 million for the fiscal first quarter ended April 30, a complete turnaround compared to a net loss of $174 million in the prior-year period. Consolidated revenues were up 8.6% to $3.8 billion while earnings before taxes and special items reached $48 million, a significant improvement over a loss of $136 million in the year-ago period. The company's cash position remained strong at $2.1 billion.
Gol, although it is facing "intense" price competition in the second quarter that has caused yields to decline, reaffirmed its financial outlook for 2005. The carrier said it still expects net revenues of roughly 3 billion reais ($1.32 billion) and anticipates delivering an EBITDAR margin of 38%-40% and an operating margin of 27%-29%.
The market for 30/60-seat regional jets is "reaching maturity," but 50-seat RJs will remain the backbone of the US fleet, according to Rolls-Royce Senior VP-AE Business Joe Dunne. Rolls manufactures the AE3007 engine that powers the Embraer 135/140/145 family of RJs.
Singapore Airlines and Qantas have expressed disappointment and annoyance at the six-month delay in A380 deliveries revealed just after the close of the IATA AGM in Tokyo. Airbus Chief Commercial Officer John Leahy held meetings with these carriers and Emirates at the AGM, and while airline CEOs are putting on a diplomatic front, privately they expressed serious concerns and annoyance.
Northwest Airlines will stop carrying all magazines except its own inflight magazine on all of its flights and in its airport lounges in a move it said will cut roughly $565,000 in expenses per year. In addition to the cost savings, a spokesperson said the carrier has concerns with the operational and financial viability of the vendor who provides the magazine service. American Airlines eliminated magazines after 9/11.
SAS Cargo reported an EBT of Sek12 million ($1.6 million) for 2004, its third consecutive profitable year. Turnover totaled Sek2.83 billion but yield continued to fall owing to overcapacity in the market that drove prices down, along with decreasing rates in the US.
United Airlines appears to have avoided potentially crippling strike action after reaching an agreement in principle on a new contract with 20,000 ramp agents and customer contact employees represented by the International Assn. of Machinists.
