Aviation Daily

While most of Asia’s new LCCs look to regional expansion to grow, at least one new LCC—Hong Kong Express—is instead looking inward and positioning itself as a local carrier. “Why? Because we are based in the middle of the Pearl River Delta, with 100 million people, all wanting to travel,” says the airline’s Deputy Chief Executive Officer, Andrew Cowen. That’s a big local market. “There are 17 or 18 LCCs serving Hong Kong today. Without a clear, homegrown identity we could not compete.”

By Sean Broderick
The recently deepened relationship between Hawaiian Airlines and Delta Tech Ops could be a bellwether as the carrier eyes aftermarket options for its Airbus A330s and Boeing 717s amid a broader effort to streamline its vendor base. Hawaiian and Tech Ops earlier this month announced that the maintenance, repair, and overhaul (MRO) provider would add component repair to the 767 fleet support it already provides the Honolulu-based carrier.

American Airlines Group, in its first full quarter after the merger, reported record-setting first-quarter profits for both American Airlines and US Airways, but warned that the hard work lies ahead. CEO Doug Parker lauded the merged airline’s $484 million in profits and the $10.6 billion in free cash to end the quarter, but noted that the real benefits of the merger will become apparent only in the years to come.

Allegiant Travel Co. will take the first steps toward creating a loyalty program by introducing a new co-branded credit card in the second quarter, with a loyalty program to follow later this year.

By Jens Flottau
Virgin Atlantic hopes to reach profitability this year after managing to cut losses in half in 2013. “We have implemented a program of measures which put in place firm foundations for future success and our results to this point show that we are delivering against our plan,” Chief Executive Craig Kreeger said.

While United Airlines sees no structural problems with its network and thinks boosting operating efficiencies is the key to improving on a relatively weak first quarter, the airline nonetheless is restructuring its Pacific operations.

Platts
Fuel Watch: Global Jet Fuel Prices (midpoint) As of April 23, 2014, compared with previous week and previous year cts/gal prev. week prev. year

U.S. Industry Traffic Market Share March, 3 Months 2014 (000) March 2014 RPMs Share (%) 1. American* 16,616,395 24.01 2. Delta 15,156,986 21.90 3. United 15,115,925 21.85

United Airlines has begun installing new equipment into an Airbus A320 as a prototype for the next phase of the carrier’s iPad electronic flight bag (EFB) project, which will include leveraging connectivity to bring more functionality to the devices.

By Sean Broderick
An item in the April 23 Aviation Daily about United Technologies' commercial rebound misstated the name of the company's systems and components unit. It is UTC Aerospace Systems.

CIT: Transportise Transportise Definition: The financing expertise of CIT in the transportation sector.

By Adrian Schofield
An improved first-quarter performance reinforces Hawaiian Airlines’ confidence its financial results will be stronger in 2014, with its domestic

By Jay Menon
India’s aviation regulatory agency has allowed the use of personal electronic devices (PEDs), including mobile phones, in airplane mode instead of the switched-off mode, during all phases of a flight. However, the PEDs must be in the non-transmitting mode, directorate general of civil aviation (DGCA) chief Prabhat Kumar says. “The amended civil aviation regulation also directs all operators for reporting of any suspected or confirmed PED interference or smoke caused by PEDs,” he says.

Flybe has earmarked London City Airport (LCY) as an integral part of its future network under its revised business strategy, and has signed a five

ACI Airport Traffic Change By World Region, December 2013 vs. December 2012 Domestic Cargo Africa - (4.8) Asia/Pac. 6.9 3.3 Europe 5.4 3.2 L. Amer

Despite cancelling 17,000 flights and seeing its most important hub, Atlanta Hartsfield-Jackson International Airport, closed for several days, Delta Air Lines reported a record first-quarter profit.

By Jens Flottau
Brazilian domestic carrier Azul is making a giant strategy shift with plans to enter the long-haul market—including flights to the U.S.—starting next year. The airline has ordered five Airbus A350-900s and plans to lease six more Airbus A330-200s for the new services. Azul plans to launch its first international flights from Sao Paulo’s Viracopos-Campinas International Airport, which is currently its main base and where it is building a new $1.5 billion terminal.

U.S. Carriers Traffic March, 3 Months 2014 March March % 2014 2013 Change American Regionals

U.S. Carriers Fuel Cost and Consumption March 2013 - February 2014 Total Total Cost Gallons (Dollars)

By Graham Warwick
The FAA faces another legal challenge to its ban on civil use of unmanned aircraft, with a voluntary search-and-rescue (SAR) organization filing a lawsuit appealing against an agency order to stop using radio-controlled model aircraft in its searches. On Feb. 14, the FAA ordered the company flying missions for the Texas EquuSearch Mounted Search and Recovery Team to stop using the unmanned aircraft as it is “an illegal operation regardless if it is … doing volunteer SAR.”

Pratt & Whitney’s president of aftermarket, Matthew Bromberg, predicts that maintenance, repair and overhaul (MRO) shops in the future will “print” the parts they need with additive manufacturing technologies, speeding up repair tasks and reducing stored inventory. “It will work. It will be efficient. It’s the way the industry will go,” said Bromberg, speaking at Aviation Week’s MRO America conference in Phoenix on April 9.

By Bradley Perrett
China’s Shandong Airlines will expand its fleet with an order for 50 Boeing 737s due for delivery between 2016 and 2020.

By Jens Flottau
Airbus has started working with the European Aviation Safety Agency (EASA) to have its A320 recertified for a maximum load of 186 passengers, Aviation Week has learned. Airlines are currently allowed to fly the aircraft with a maximum of 180 seats, but Airbus would like to add an extra row to further increase efficiency.