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The government of India has backed privately owned Jet Airways’ decision to sell parking slots at London Heathrow Airport to Abu Dhabi-based Etihad Airways. In April, Jet Airways agreed to sell a 24% stake in the company to Etihad. The Middle Eastern carrier’s overall commitment to Jet includes an injection of $220 million to create and strengthen a wide-ranging partnership between the two airlines.
The KLM Group is continuing its fleet renewal program and will add another six Embraer E-190s between November and April 2014. The aircraft will be operated by its wholly owned regional subsidiary KLM Cityhopper on European routes from Amsterdam Schiphol Airport. KLM is leasing the new jets from BOC Aviation. The six E-190s are a first step in the replacement of its aging Fokker 70 fleet and follows the phasing-out of Fokker 100s.
The United Arab Emirates General Civil Aviation Authority (GCAA) is calling on the FAA and European regulators to install new technologies in cockpits and cargo holds on passenger and cargo aircraft to prevent onboard fires from disabling pilots and systems.
Boeing’s planned Commercial Airplanes production ramp-ups remain on schedule, following a notably productive second quarter by the unit, helping the company to push year-over-year profit up 13%, company executives report. Boeing delivered 169 commercial jets last quarter—the highest total in more than a decade—and is on track to deliver between 635 and 645 for the year, Boeing executives said yesterday during the company’s second-quarter earnings conference call.
Lufthansa is reshaping the executive board of its passenger airline division by strengthening the role of key executives. Kay Kratky, currently in charge of flight operations at Lufthansa's main hub in Frankfurt, has been named chief operating officer for the entire airline, taking over responsibility for the Munich hub from Thomas Kluehr, who was named CFO.
Neil Mills has stepped down from his post as CEO of SpiceJet, India’s only publicly listed budget carrier, sparking speculation that the airline’s owners are looking at bringing in a foreign airline as a strategic investor. Some Indian airlines are seeking foreign investors since the government allowed foreign airlines to invest in local carriers in September of last year. Mills was the fourth CEO since the SpiceJet’s launch in 2005.
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Republicans who control the U.S. House of Representatives are pushing a bill that would require the Transportation Security Administration (TSA) to publish a “strategic multiyear technology investment plan,” as well as conduct a cost-benefit analysis for purchases and create an inventory tracking system. “For too long, TSA has struggled with efficiently testing, investing in and deploying new technology,” said House Homeland Security Chairman Michael McCaul (R-Texas).
Boeing remains on track to begin assembly of the first 737 MAX in 2015, by completing firm configuration for the initial 737-8 variant on schedule earlier this month. The U.S. manufacturer says the milestone “marks completion of the major trade studies that define the capabilities of the 737 MAX family,” and clears the way for the start of detailed design. Firm configuration essentially locks down the overall design, which allows engineers to begin the process of detailing features of the aircraft for release to manufacture.
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Ryanair is willing to sell its minority stake in rival Aer Lingus, but only to an EU-based airline that gains approval from a simple majority of Aer Lingus’s shareholders. The move by Europe’s largest low-cost carrier (LCC) aims to rebuff the U.K. Competition Commission’s provisional conclusion that its 29.8% shareholding could obstruct Aer Lingus’s ability to be acquired by, merge with or purchase another airline.
Solyom Hungarian Airways has not yet applied for its air operator certificate (AOC) with Hungary’s National Transport Authority (NTA), despite its goal to have its first narrowbody in Budapest next month and operate six aircraft by year-end. The start-up had hoped to use the existing permits of a local company it acquired, but the license is for aerial work and does not allow the carriage of passengers or goods as an EU-registered commercial airline.
Fiji Airways has reported an increase in net profit for its 2012-2013 fiscal year, a welcome boost for a carrier in the middle of a widebody fleet transition. The airline—which recently changed its name from Air Pacific—achieved a net profit of F$14.1 million ($7.5 million) for the year ending March 31, up from the previous year’s profit of F$11.4 million.
Singapore-based Tiger Airways Holdings expects the sale of a majority stake in its Australian subsidiary will help move the parent company towards profitability, although associate airlines in other countries may still be a drag on earnings. Tiger reported an operating loss of S$6.2 million ($4.9 million) for the quarter ending June 30, due mainly to the Tigerair Australia subsidiary’s losses which offset operating profits from the larger Tigerair Singapore.
Cyprus Airways has submitted a restructuring plan to the European Commission (EC), hoping to secure its survival. The current plan is a first draft; a final version—with more data and answers to questions from the EC—will be provided by the end of August.
With funding support from the Bavarian state government, EADS is stepping up research into whether algae can be used on an industrial scale to produce biokerosene jet fuel. EADS, together with the Technical University of Munich, is to build an algae technical center at the Ludwig Boelkow Center in Ottobrun/Taufkirchen. The €10 million ($13 million) facility is being jointly financed by EADS and the Bavarian ministry of sciences, research and the arts.
