US Airways’ long-awaited nonstop service between its hub at Charlotte (N.C.) Douglas International Airport and Sao Paulo Guarulhos International Airport is now expected to begin in 2013. The route’s launch is hindered by the same slot allocation issue that has stopped US Airways from operating the service since it first sought approval from the U.S. Transportation Department in 2010 to reallocate rights previously granted to United Airlines.
The global airline insurance sector in 2011 achieved its first profit in five years, with premiums reaching $1.9 billion on $1.1 billion in claims. A decline in hull losses to 30 in 2011 from 46 units in 2010 produced this profit, according to data compiled by Willis Aerospace, even though premiums fell 2.4%. Aviation manufacturing insurers also produced a profit last year, with premiums reaching $657.9 million. However, the drop in premium trailed that seen by airlines, with a decline of 1.3%, Willis finds.
Embraer President and CEO Frederico Curado is “cautiously optimistic” that this year will produce enough U.S. sales to maintain the manufacturer’s backlog at reasonable levels, even as the company records charges for its exposure to American Eagle Airlines’ fleet reorganization.
A new labor agreement between AMR Corp. and the Transport Workers Union (TWU), expected to be released shortly, could mirror an accord recently agreed between the union and US Airways that would take effect should the Tempe, Ariz.-based airline acquire its rival.
SAS Group sold six airport properties to Swedavia for SEK1.7 billion ($300 million) The move is part of the company’s strategy to focus on core activities. The transaction includes hangars, maintenance and repair shops, warehouses and offices at the airports in Stockholm, Gothenburg and Malmo, Sweden. However, there will be no operational changes because SAS will lease the facilities back and will continue to use them as before.
Delta Air Lines is acquiring an oil refinery via a newly established subsidiary in a bold and potentially risky move to control the carrier’s jet fuel prices. The Delta wholly owned subsidiary, Monroe Energy, reached an agreement with Phillips 66 to acquire the Trainer refinery complex near Philadelphia for $150 million. Monroe also will spend $100 million to convert the existing infrastructure to maximize its jet fuel production.
The capacity discipline exercised by U.S. carriers in the last few years is beginning to relax, with average fares and yields on major markets dropping, according to an analysis of the top 100 domestic routes prepared for Aviation Week by Harrell Associates. The data show that business fares on the top 100 routes year-over-year are down 5%, to $414 this year from $438 last year. On some major routes, airfares decreased by double digits. Fares on the Boston-Washington route fell by 15%, Chicago-New York by 21%, and Dallas-Los Angeles by 24% year-over-year.
Other jet makers are closely following Hawker Beechcraft Corp’s financial situation, and at least a few of them are saying they would be interested in buying some or all of the company should it become available at the right terms. “We are evaluating how this thing is going to unfold,” Embraer CEO Frederico Curado told analysts during the release of the company’s first-quarter results on April 27. “Maybe some of the assets could be of interest to Embraer. We just have to see how that develops.”
The union representing Delta Air Lines pilots believes it could reach a tentative agreement with management on a new contract “within a matter of weeks,” which also would be more than six months before the collective bargaining pact even becomes amendable. “If we are able to reach a comprehensive agreement on this timeline it would be unprecedented, not only at Delta, but within the industry,” Tim O’Malley, chairman of the Delta Master Executive Council for the Air Line Pilots Association, told the union’s members in an April 27 message.
Click here to view the pdf Top Carriers - Lima, April 23-29, 2012, Ranked By Scheduled Outbound ASMs Top Carriers - Lima, April 23-29, 2012, Ranked By Scheduled Outbound ASMs Departures Airport Share ASMs (mil) Airport Share Seats/Dept.
Qatar Airways will defer delivery of the Airbus A380s it has on order while it investigates Airbus’s solution to cracks found inside the aircraft’s wing. Airbus has developed an interim fix for the cracks and is expected to unveil a permanent solution in the coming weeks that will be introduced in the final assembly line from the fourth quarter. Qatar, which has ordered 10 A380s, recently criticized Airbus about modifications for the A350-1000 and the delays in the entire program.
To list an event, send information in calendar format to Donna Thomas at [email protected] (Bold type indicates new calendar listing.) May 6-9—International Air Transport Association’s 25th Annual Ground Handling Conference, Hilton Hotel, Prague, www.iata.org May 7-9—Airports Council International-NA Airport Economics, Finance and Human Capital Conference, Nashville, Tenn., www.aci-na.org/conferences/ May 8-10—12th Annual European Business Aviation Convention & Exhibition, Geneva, Switzerland, 202-783-9000, www.nbaa.org
Comac’s ARJ21 regional jet program has been delayed again, raising new questions about the schedule of the much larger and more important C919 narrowbody.
Although Finnair managed to reduce its losses in the first quarter of the year, it is still far from reaching profitability. The airline posted a €20.2 million ($26.7 million) operating loss in the period, less than half of the €43 million net loss reported a year earlier. Sales rose by 10.9% to €592 million. That result is based on a significant improvement in operating performance. The airline increased capacity by 3.9%, but demand rose by 9.1%. Consequently, its yield was up 2.1%, and the load factor improved by 3.6 points to 76.2%.
Emirates is coming back swinging against allegations that it receives state subsidies or benefits from below-market landing fees and fuel prices. In a paper obtained by Aviation Week, the Dubai-based carrier rebuts several European airlines’ charges and levels some of its own.
