Rockwell Collins was selected by ANA to provide its Flight Dynamics Head-up Guidance System for installation on the airline's new fleet of 45 737-700s. Delivery of the first systems is scheduled for later this year.
Lufthansa and NetJets, as expected ( ATWOnline, March 8), yesterday announced a partnership argreement to create Lufthansa Private Jet, which will permit travelers to fly by business jet from more than 1,000 airports around Europe to Lufthansa's Munich hub to board connecting flights in first or business class. The agreement was signed in Munich by Lufthansa Chairman and CEO Wolfgang Mayrhuber and NetJets Chairman and CEO Richard Santulli. LH will conduct a six-month market test of the service beginning with the start of the summer schedule from March 29.
Gol flew 553.7 million RPKs in February, up 5.8% over the year-ago period. Capacity climbed 15.1% to 782.3 million ASKs and load factor declined 6.2 points to 70.8%. The airline did not provide year-to-date results.
Cathay Pacific Airways reported its second-best year with profit to shareholders of HK$4.42 billion ($566 million) for full-year 2004, up sharply over net income of HK$1.3 billion in SARS-affected 2003. Cathay attributed the growth to the improved Hong Kong and global economies compared to 2003 and noted that 2004 would have been its best year on record had there not been a sharp rise in the price of fuel.
Delta Air Lines is eliminating pillows, dropping its food-for-purchase program and increasing the cost of alcoholic beverages on most of its flights as part of its Transformation Plan. Pillows will be eliminated on all flights within the continental US and to Bermuda, Canada and Central American and Caribbean destinations beginning in mid-March as "part of the airline's efforts to provide more room for carry-on luggage in overhead bins while reducing costs." Blankets still will be available.
Emirates closed a $239 million financing agreement with the US Export-Import Bank for 22 GE and Rolls-Royce engines. The financing was fully arranged and funded by Royal Bank of Scotland and comprises $129 million for seven spare GE90s using Exim support and $110 million for 15 Rolls engines using commercial debt.
Continental Airlines began twice-daily service between Del Rio, Tex., and Houston. The flights are operated by Continental Connection partner Colgan Air.
America West Holdings Corp., parent of America West Airlines, revised its previously reported financial results for the fourth quarter and full-year 2004 owing to an accounting change associated with the recognition of gains or losses on derivative instruments that the company uses as a means of reducing financial exposure to fluctuating fuel prices. As a result, the company's and airline's consolidated statements of operations for 2004 will reflect net losses of $89 million and $85.3 million respectively, versus the net losses of $89.9 million and $86.1 million previously reported.
Air Canada parent ACE Aviation Holdings reported a C$15 million ($12.4 million) net income for the fourth quarter ended Dec. 31, which included foreign exchange gains on long-term monetary items of C$98 million. This was a complete turnaround from a C$768 million net loss in the prior-year period, which included C$560 million in reorganization charges. The company did not release full-year results, but losses for the first nine months totaled C$895 million.
Northwest Airlines will launch one daily nonstop flight between Minneapolis/St. Paul and Idaho Falls June 9. The service will be operated by Northwest Airlink partner Pinnacle Airlines Corp. using a 50-seat CRJ.
Continental Airlines warned yesterday that matching Delta's SimpliFares fare reform in competing markets will cost it an estimated $200 million in annual revenue, or around 2% of 2004 revenues of $9.7 billion, well above an earlier forecast of a $50 million impact.
Virgin Nigeria Airlines is scheduled to begin operations later this year following a successful private placement of 51% of the share capital worth $26 million with Nigerian institutional investors, Reuters reported. It added that the institutional investors are expected to sell half of their stake in an IPO on the Nigerian Stock Exchange once the airline gets airborne. Virgin Group holds a minority share of 49% as originally planned to avoid US authorities viewing the new airline as British, which could affect traffic rights to the US negatively.
EADS posted a net profit of eur1.03 billion ($1.38 billion) in 2004, a 60% increase on 2003 owing mainly to the strong performance of Airbus and a swing into profit by space activities. But Co-Chairman Philippe Camus warned that breakeven for the A380 program now exceeds 300 units, up from original expectations of 250 units. "If we fix the euro/dollar rate at eur1.30, and based on what we have already done for the program [in terms of currency hedging], and also taking into account the higher development costs, we get a breakeven point that is well above 300 planes," Camus said.
Emirates will expand service to Accra with two nonstop weekly flights from Dubai that will begin March 27. The flights are in addition to the four weekly services Emirates operates to Accra via Lagos.
LaBarge was awarded a contract valued at $3.2 million by L-3 Communications Security and Detection Systems under which LaBarge will manufacture electronic equipment for an airline checked-baggage screening system that uses x-rays to detect the presence of explosives or other contraband.
Lufthansa Technik appointed Andreas Meisel as senior VP-aircraft overhaul and VIP Jet Services. He takes over the position from Wolfgang Gohde, who will become MD-Lufthansa Systems Group.
Boeing 777-200LR Worldliner made its first flight yesterday. The aircraft, piloted by 777-200LR Project Pilot Suzanna Darcy-Hennemann and 777 Chief Program Pilot Frank Santoni, flew for approximately 3 hr. during which it achieved an altitude of 15,000 ft. (4,572 m.) and an airspeed of 270 kt. (500 kph). US FAA and European JAA certification is expected during the fourth quarter. Two aircraft will be used in the 500-hr. flight test program.
SAS Group signed a catering contract with LSG Lufthansa Service Holding AG covering catering for Scandinavian Airlines Denmark, Scandinavian Airlines Sweden, SAS Braathens and Scandinavian Airlines International departures from Copenhagen, Stockholm Arlanda, Gothenburg, Malmo, Oslo and Bergen. It also includes the takeover of Braathens' catering department by LSG Sky Chefs. The contract is effective Aug. 1 and has a duration of three years with an option for SAS Group to extend it for a further two years. It is valued at about Sek700 million ($102.4 million) per year.
Lufthansa today is expected to reveal details of a cooperative venture with NetJets, the business aviation and fractional ownership company owned by billionaire investor Warren Buffet. According to news agency n-tv.de, the program will be marketed under the name Lufthansa Private Jet and begin this summer using aircraft and crew from NetJets. Last fall, Executive VP-Marketing and Sales Thierry Antinori told this website that in order to enhance its offerings for ultra-premium passengers, LH was evaluating cooperating with private executive jet operators.
British Airways yesterday confirmed media reports that CEO Rod Eddington will step down from the airline later this year and will be replaced by former Aer Lingus CEO Willie Walsh, who will begin work as CEO-designate on May 3 and will become CEO when Eddington retires at the end of September ( ATWOnline, March 8). "Many commentators have rightly said that Rod Eddington will be a hard act to follow but I am completely confident that in Willie we have captured the very best person for the job," BA Chairman Martin Broughton said.
