Airbus has grown its A320NEO firm orderbook to 1,289 units with AviancaTaca’s finalization of deal for 33 of the aircraft and 18 classic A320s. Deliveries of the NEOs are due to begin in 2017. An engine choice has not been made. AviancaTaca already is a large Airbus operator, with 88 A320s and eight A330s in service and 139 on order before the latest additions.
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Norwegian Air Shuttle has become the European launch customer for the Boeing 737 MAX and also signed up to take Airbus A320NEOs, becoming another buyer of both re-engined single-aisle aircraft. Norwegian announced firm orders for 100 737-8 MAXs as well as 22 737-800s in a deal valued at $11.4 billion at list prices. Norwegian also took purchase rights for 100 more 737-8s. Representing Boeing’s largest order from a European airline, the deal also makes Oslo-based Norwegian the first carrier on the continent to finalize an order for the 737 MAX.
The European Commission opened three separate investigations into public financing of regional airports in Germany and Sweden. The move could have serious ramifications for the business model of Ryanair if the EC finds that airports have been funded in contravention of the Market Economy Investor Principle (MEIP). States or communities are allowed to support companies they own, but only to the extent that a private investor would do so.
The vast majority, if not all, of Delta Air Lines’ international capacity cuts in the first quarter will target its transatlantic operation in an attempt to retain the double-digit unit revenue growth produced from the region during the fourth quarter. That fourth-quarter performance included a 10.8% year-on-year rise in transatlantic unit revenues and a 10.6% yield improvement despite the weakened economic climate across Europe. Delta attributes this strong showing to a 9.7% cut in capacity to 1.2 billion available seat miles.
Lumexis, developer of a lightweight fiber-optic based inflight entertainment (IFE) system, has unveiled plans to introduce a wireless delivery system for iPads, laptops, smartphones and other passenger electronic devices.
Alcoa is striking back at the growing use of composites in jets with a plan to expand output of patented aluminum lithium alloys that it says will allow airframers to build dramatically lighter and lower-cost aircraft.
Saudi Arabian Airlines has been identified as the buyer of eight Boeing 777-300ERs, with a list-price value of $2.4 billion, that were previously carried on Boeing’s “unidentified customer” list. The announcement came Jan. 23 as the airline accepted delivery of its first two 777-300ERs in a ceremony in Everett, Wash. The aircraft are part of a 12-unit order placed in April 2010. Saudia placed its first 777 order in June 1995, when it bought 23 777-200ERs, all of which have been delivered.
The European Commission (EC) opened an in-depth investigation into €130 million ($170 million) in restructuring aid for Air Malta. In a statement yesterday, the EC says that it has “doubts whether the restructuring plan complies” with European guidelines regarding admissible state aid.
Air New Zealand is signaling that its international review will result in capacity cuts on its London routes, while new flights will be launched in other markets. The international review, begun last year, is aimed at making the carrier’s international operation profitable. CEO Rob Fyfe tells employees in a memo that the airline is nearing the final stages of the review.
Garuda Indonesia delayed delivery of 10 Boeing 777-300ERs, scaled back its Jakarta-Amsterdam service and put on hold plans to expand its European presence. At the same time, the airline says it will grow its intra-Asia service The first of 10 777-300ERs Garuda has on order was due to arrive in 2012, but now first deliveries are expected in 2013, says the carrier’s top spokesman. He said he was unable to be more specific.
The U.S. House of Representatives yesterday was scheduled to appoint conferees to hammer out differences between the House and Senate versions of the FAA reauthorization bill, but lawmakers did not vote to do so before leaving for the week. “I hope to do that as soon as we get back,” says Rep. John Mica (R-Fla.), chairman of the House Transportation and Infrastructure Committee. The 23rd extension of the FAA’s operating authority now runs through Feb.
Air Canada is rebutting allegations by its pilots union that it is abandoning labor negotiations, although it appears the airline is just weeks away from a work action should it fail to garner a new contract from the Air Canada Pilots Association (ACPA).
AMR Corp. is overhauling the management structure at its American Airlines division in an attempt to reduce bureaucracy and broaden the responsibilities of executives and support staff who remain at the company. Few details have been released about the restructuring, which was unveiled by CEO Thomas Horton in a Jan. 24 internal memorandum, although the company says it “starts at the top and will encompass the entire management and support staff team.” Horton also confirms that “we will obviously end the process with fewer people.”
North American airports are unusual in that the largest source of non-aeronautical revenue, at 38%, comes from car parking, compared with the global average of 18%, according to data from Airports Council International-North America (ACI-NA). For airports worldwide, the largest source of non-aeronautical revenue, at 28%, derives from retail concessions, with 45% of non-aeronautical revenue at Asia-Pacific airports coming from this source. Non-aeronautical revenue is defined as revenue not directly tied to aircraft operations.
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International Lease Finance Corp. (ILFC), seeking to boost its presence in the booming Asia-Pacific region, is opening two new offices, one in Beijing and the other in Singapore. The Singapore office is already in business, and the Beijing office will open later this year. The company last year set up shop in Amsterdam to handle its Europe, Middle East and Africa customers. The two Asia offices are the first to follow the Amsterdam office.
Allegiant will station two MD-80s at a new base at Oakland International Airport and plans to begin service to seven new markets from the Bay Area. The new services, slated to begin in late April, include flights to Billings, Bozeman, Kalispell and Missoula, Mont.; Idaho Falls, Idaho; and Redmond, Ore. Oakland is Allegiant’s eighth base. Oakland Mayor Jean Quan says her administration has been focused on luring Allegiant for “many months.” The airline says it could create as many as 60 jobs at the new base.
The Turkish Airlines board of directors approved exploratory preparations for the acquisition of LOT Polish Airlines, according to a filing with the Istanbul stock exchange. An official in the Polish treasury confirmed that the government has been in touch regarding a potential sale.
