UK and New Zealand initialed a new aviation agreement on air services that removes almost all restrictions on flights between and beyond the two countries. It also applies state aid rules to ensure a level playing field for competition and liberalizes arrangements on a wide range of other issues, including marketing arrangements, ground handling and other operational matters. The previous agreement limited flights between the countries to seven per week for each side.
Onex Corp. will go ahead with its purchase of Boeing Commercial Airplanes' operations in Wichita, Kan., and Tulsa and McAlester, Okla., despite the fact that unionized workers at the Wichita plant rejected a new contract offer. Onex earlier this year reached agreement with Boeing to purchase the three facilities for $900 million in cash ( ATWOnline, Feb. 23). However, it had said it would not go forward with the purchase if it was unable to get a new contract accepted. According to media reports, the contract includes a 10% pay cut.
European Commission is seeking comments from potential opponents or supporters of the Lufthansa-Swiss merger, Reuters reported last week. The EC will decide by June 20 whether to approve the transaction without conditions, seek changes on competition grounds or launch a longer probe.
Alitalia posted a record net loss of €812 million ($1.02 billion) in 2004 against a net loss of €519.7 million in 2003, owing primarily to €308.6 million in restructuring charges.
A US District Court judge put off a decision until June 7 on whether United Airlines' International Assn. of Machinists-represented employees have the right to strike if the US Bankruptcy Court grants the company's motion to reject the group's current contract and impose a new one. The union believes it has the right to strike, while United has said it thinks a strike would be illegal. It still is negotiating with IAM, which represents its ramp and customer contact employees, and has until May 31 to reach a new deal with the group.
MAIR Holdings, parent of Mesaba Airlines and Big Sky Airlines, reported a net loss of $1.7 million for the fiscal fourth quarter ended March 31, improved from a net loss of $3.6 million in the prior-year period. "The weather created some operational challenges during January and February, but in the face of those challenges both Mesaba and Big Sky remained focused on executing disciplined processes to achieve these operating results," MAIR President and CEO Paul Foley said.
Darwin Airline increased its capital from CHF4 million ($3.2 million) to CHF10 million earlier this month. The carrier currently operates three daily flights from its Lugano base to Geneva, as well as service to London, Berne and Rome.
PT Lion Mentari Airlines served notice that it intends to be the dominant player in the Indonesian market with an order for up to 60 737s. The order was expected to be signed yesterday in Washington during Indonesian President Susilo Bambang Yudhoyono's visit to the US. The airline earlier signed an MOU for 40 737s, which prompted a counteroffer from Airbus ( ATWOnline, March 1).
Wizz Air said that in its first year of operation it transported 1.2 million passengers. The carrier recently said it has a 40% market share of the LCC business in Poland and 25% in Hungary. Wizz Air has bases in Katowice, Warsaw, Gdansk and Budapest and is planning to open a base in Poznan. Currently it operates a fleet of A320s to 17 destinations on 32 routes.
Air Transport Assn. member airlines flew 56.01 billion RPMs in April, up 3.1% over the year-ago period. Capacity climbed 2.8% to 72.14 billion ASMs and load factor gained 0.2 point to 77.6%. For the four months ended April 30, RPMs increased 6.3% to 215.45 billion, ASMs rose 2.6% to 283.14 billion and load factor jumped 2.7 points to 76.1%.
Second 777-200LR completed its first flight Tuesday, lasting 5 hr. The aircraft, which will be on display at the Paris Air Show in June, took off and landed at Paine Field in Everett, Wash.
United Airlines' LCC Ted, in order to meet "increasing customer demand," will launch new service to destinations in the US, the Caribbean and Mexico. According to United, the flights represent the transfer of several mainline routes to Ted as well as one route that is new to United. As announced in March, nine A320s are being converted from United to Ted configuration to provide the service. Under the expansion plan, from Sept. 7 Ted will launch twice-daily service between San Francisco and Ontario, Calif.
Assn. of Asia Pacific Airlines reported a 9.9% hike in passengers on international flights to 10.6 million in March. Traffic in terms of RPKs rose 8.1% on a slightly slower capacity increase of 7.2%, resulting in a 0.6-point increase in load factor to 71.7%. International freight traffic in terms of FTKs climbed 6.5%. However, capacity was up 9% and as a result the average freight load factor fell 1.5 points to 64.9%. AAPA represents 17 airlines.
The battle over opening up Dallas Love Field heated up yesterday as Texas Republican Congressmen Sam Johnson and Jeb Hensarling introduced legislation called the Right to Fly Act, which immediately would repeal the Wright Amendment. The Wright Amendment, which became law in 1979, restricts nonstop flights from Love Field to cities in Texas and seven other states in close proximity. It was designed to protect Dallas/Ft. Worth International Airport from competition from Love Field.
Air China has been beaten out in the battle for control (65%) of Shenzhen Airlines by two "little-known private companies," according to China Daily. Shenzhen-based Huirun Investment Co. and Beijing-based Bright Oceans Corp. outbid nearest rival Air China to take control of the South China-based carrier. The hammer fell at a price of 2.72 billion yuan ($328.5 million). Air China is the second-largest stakeholder in Shenzhen with 25% but said the price was too high.
Bmi selected SAS Component's Free2Fly program for its fleet of three A330s, 10 A321s, 11 A320s and four A319s on a long-term basis, the companies announced yesterday. Under the contract, SAS Component will buy and lease back bmi's stock of A330 rotables and set up branch stores at Manchester and Heathrow. The contract follows a decision by bmi to focus on core activities and a realization that SAS Component with its volume is in an ideal position to negotiate prices with OEMs.
Boeing and Japan Aircraft Development Corp., which represents three Japanese 787 structure partners--Fuji Heavy Industries, Kawasaki Heavy Industries and Mitsubishi Heavy Industries--have signed formal contracts detailing their work for the 787.
Iberia told shareholders at its AGM that it intends to pay a "significant" extraordinary dividend out of the capital gains from the sale of its stake in Amadeus, which should bring the airline around €600 million ($750.6 million) ( ATWOnline, April 15). For 2004, Iberia will pay a dividend of 5 euro cents a share as it increased consolidated net income by nearly 51% to €220 million in 2004 from €146 million in 2003.
Continental Airlines today is expected to launch daily nonstop flights from Newark to Belfast, the second of six new transatlantic routes the carrier plans to open this summer.
Although it was affected by high fuel costs, fewer than expected aircraft in operation and the dampening of air travel following the December tsunami, multiple earthquakes off Sumatra and civil unrest in Thailand, AirAsia reported net income of 40.7 million ringgit ($10.7 million) for the fiscal third quarter ended March 31, up significantly over net income of 16.2 million ringgit in the year-ago period.
SR Technics Holdings reported that 2004 operating earnings soared to CHF34 million ($27.7 million) from CHF8 million in 2003 on a 24% rise in sales to CHF1.17 billion. The MRO services provider said that the improvement came in the face of "a difficult market environment and the impact of a weak US dollar." Net loss narrowed to CHF2 million from CHF4 million. Operating cash flow rose 18% to CHF99 million, which enabled SR Technics to partly fund the CHF218 million acquisition of FLS Aerospace while also retiring "a significant amount" of long-term debt.
Boeing and Singapore Aircraft Leasing Enterprise finalized a previously announced sale agreement for 20 CFM56-7B-powered 737s, plus purchase rights for 20 additional aircraft. The order, which was first announced in March ( ATWOnline, March 23), is valued at $1.1 billion at list prices. Deliveries are expected to begin in late 2006 and extend through 2009. Boeing said the 737-800 is the baseline model SALE has specified but the agreement provides for conversions to the 737-700 or the proposed higher-capacity 737-900X.
Piedmont Aviation Component Services entered into an agreement to sell all of its ownership interest to Limco Airepair, a wholly owned subsidiary of TAT Technologies. According to Piedmont, Limco will continue to operate the company with the same name, facilities and people.
