Swire Pacific, parent of Cathay Pacific, yesterday responded to media reports that it is nearing a deal to sell its stake in Cathay to Air China in return for a stake in the latter by saying that it plans to remain as the principal shareholder in Cathay.
Varig Engineering and Maintenance delivered a 767-200SF-ER to Tampa Cargo earlier this week, marking the first widebody conversion by VEM and the first ever in Latin America. The conversion is part of an 18-year partnership contract with Israel Aircraft Industries, which provides engineering knowhow and mod kits while VEM, as the only 767 conversion center outside Israel working for IAI, provides the structural work.
In what could be seen as a next step in its legalistic approach to get what its wants--an Open Aviation Area between the EU and US--the European Commission announced yesterday that it has decided to send letters of formal notice and reasoned opinions to 11 member states that have air service agreements with the US.
Australia's largest international airport has joined the push to establish Singapore Airlines on the lucrative corridor to the US in direct competition with Qantas. Sydney Airport head Max Moore-Wilton said that "at the appropriate time" the airport will be "strongly supportive" of SIA's plans to take up services between Sydney and Los Angeles. "Undoubtedly we support Singapore Airlines; the trend in world aviation is opening up the markets," Moore-Wilton said.
IATA DG and CEO Giovanni Bisignani lashed out at the European Commission, saying that the annual cost the EC "inflicts" on aviation is a staggering €5.9 billion ($7.91 billion). "This is the legacy of neglect left by the previous Commission and it is an enormous burden on the competitiveness of Europe's airlines," Bisignani said in a speech to the European Aviation Club in Brussels. "If we don't have urgent action to restore a balanced playing field, the European industry will be damaged, not by competition, but by inefficient European systems."
Centralwings, the new Polish low-cost airline formed by LOT that began operations Feb. 1 with flights to London Gatwick from Warsaw and Krakow, will acquire two more 737 Classics by May, bringing its total fleet to five. Two more 737s should join the carrier in 2006.
ICAO released its preliminary safety and security statistics for airlines in 2004, which show an increase in aircraft accidents on scheduled services but a decrease in fatalities from those accidents. Last year there were nine accidents involving passenger fatalities on scheduled services worldwide for aircraft with maximum takeoff weights of more than 2,250 kg. (4,960 lb.). The total number of fatalities was 203, the lowest figure since 1945. In 2003 there were 466 passenger fatalities from seven accidents.
Northwest Airlines, citing high fuel costs, fare restructuring by other airlines and general overcapacity in the domestic marketplace, trimmed its domestic capacity forecast for 2005. In January it forecast a 2%-3% increase in domestic capacity versus 2004. However, in February it said it was studying a reduction in 2005 domestic capacity and now it believes its domestic capacity will be flat year-over-year.
Thai International announced details of its new Bangkok-New York nonstop service that will begin May 1. The 17-hr. flight will operate six times a week and the A340-500 will be configured for 215 passengers. Airbus will deliver two A340-500s in March and July and two A340-600s in June and August to the carrier. The aircraft are part of a 2003 commitment for three dash 500s and five dash 600s.
Continental Airlines yesterday warned that if its unions do not ratify the new tentative agreements reached last month ( ATWOnline, March 1) by March 30, it will be forced to take a number of actions, including increasing the size of the pay and benefit reductions it is seeking, subleasing or selling some aircraft, furloughing a number of employees and canceling future aircraft orders.
Oneworld said its consumer fares and corporate sales products generated almost $600 million in revenue in 2004 for its eight partner carriers--American Airlines, British Airways, Qantas, Cathay Pacific, Iberia, LAN, Finnair and Aer Lingus--with roughly two-thirds of that total representing incremental revenue for its members that they would not have earned had it not been for the alliance. Interlining between oneworld carriers generated total revenue of more than $1.5 billion for members, including benefits from alliance fares and sales products.
Bombardier, the company that launched the first regional jet, announced yesterday a $2 billion program to build a new family of mid-size aircraft. The board of directors has given a green light to offer customers the new CSeries line of 110/130-seat aircraft that will provide a 15% operating cost advantage over types currently available.
For the second time in less than a month, US Airways received a financial boost from a Regional airline holding company, announcing late Monday that it reached an agreement for a $125 million equity investment from Republic Airways Holdings to help it emerge from bankruptcy.
Lufthansa, which is in talks to acquire Swiss International Air Lines, plans to reduce the latter's European network just a little bit to avoid overlaps between the carriers, a source close to the situation said. In addition, according to the source, more long-haul routes from Zurich can be expected.
Sterling European announced that it has been sold to Icelandic investment company Fons Eignarhaldsfelag for 400 million kroner ($71.5 million). Fons previously has been a large shareholder in Icelandair and is the current owner of low-cost carrier Iceland Express. The deal is expected to close in April.
Hawaiian Airlines moved one step closer to emerging from Chapter 11 this week after its flight attendants ratified a new three-year contract. The carrier now needs its pilots to ratify their new deal before it can submit a formal order to the court to emerge from bankruptcy, which it expects to do in early April. The pilots are expected to conduct their ratification process next week.
AAR said it has received orders for more than 25 of its cargo systems in 2005 totaling more than $8 million. The orders include systems for the A300-600 and A310-300 as well as 767s and MD-11s.
United Airlines announced that its new premium coast-to-coast service p.s. is now available on all flights between New York and California. The service, which offers customers access to an adapter-free 110-volt power outlet as well as phone, e-mail and premium onboard entertainment at every seat, was launched on flights between Los Angeles and New York in October with reconfigured three-class 757s ( ATWOnline, Dec. 15) and expanded to San Francisco in December.
SAS Scandinavian Airlines, which owns 47.2% of AirBaltic and 49% of Estonian Air, is continuing its plan to take over 100% of the two airlines. "The main reason for us not to establish Riga or Tallinn as a hub is we want to take advantage of the very low operational costs of these carriers," SAS CEO Jorgen Lindegaard told ATWOnline. SAS's strategy is to employ the two on secondary routes out of its hubs in Stockholm or Copenhagen to European destinations where operations with SAS mainline would be too expensive. But in order to do so, SAS needs 100% ownership.
Air Berlin announced that it is expecting 13.7 million passengers for 2005, up 14% over last year. Turnover should be eur1.27 billion ($1.69 billion), which would be a 20% increase versus 2004. The carrier this year will start taking delivery of the first two of 50 A320s it has on order, 10 of which are for its Austrian partner Niki.
Boullioun Aviation Services reached a medium-term lease with TAM for two new V2500-powered A320s. The first aircraft was delivered March 4 and the second is scheduled for delivery later this month. With the new aircraft, TAM's fleet will comprise 55 Airbus and 29 Fokker aircraft.
