Aviation Daily

Michael Mecham
Reeling from launch customer Cargolux’s sudden demand for a renegotiation of its 747-8 agreement, Boeing learned that another of the new freighter’s customers was cancelling a quarter of its orders. Atlas Air told Boeing on Sept. 16—the day Cargolux was to take the first freighter delivery—that “lengthy delays in delivery” and “performance considerations” prompted it to cancel the first three of the 12 orders it placed in September 2006.

Platts
Fuel Watch: Global Jet Fuel Prices (midpoint), As of Sept. 21, 2011, compared with previous week and previous year cts/gal prev. week prev.

By Jens Flottau
Air Berlin will reduce its fleet by 18 aircraft next summer in an effort to achieve financial turnaround. On Wednesday, new CEO Hartmut Mehdorn presented details of the “shape and size” restructuring plan, which aims to improve results by €200 million ($274 million) annually. Mehdorn succeeded long-standing CEO Joachim Hunold in September. Hunold stepped down days earlier.

Andrew Compart
The U.S. Transportation Department, without fanfare, implemented one of the recommendations of the Future of Aviation Advisory Committee by hosting its first semi-annual Aviation Industry Workforce/Management Conference on Sept. 21. It remains to be seen what will be gained from the meeting, which lasted three hours and included representatives from the Air Line Pilots Association, National Air Traffic Controllers Association, National Mediation Board, Republic Airways, Southwest Airlines and Transportation Workers Union.

Harrell Associates
Introducing the Aero 100 Airfare Benchmark Index Designed for anyone with risk on the future level of airfares – for example Airlines, Banks/Credit Card Companies, Corporate Travel Managers, etc. The Aero 100 Airfare Benchmark Index tracks daily airfares within the domestic airline market. The Aero 100 delivers financial risk mitigation and protection against constant fluctuation of airline ticket prices by providing the price settling mechanism for Commodity Futures Contracts.

By Jay Menon
Air cargo operations supported by state-of-the-art facilities began Tuesday from Ojhar Airport near the industrial city of Nasik in India’s western state of Maharashtra. The first services are being offered by a joint venture between Halcon—a joint working group of Hindustan Aeronautics Ltd. (HAL) and Container Corp. of India—and Clarion Solutions, which is part of shipping and logistics conglomerate Transworld Group.

By Adrian Schofield
Qantas Airways is facing fresh strike headaches as two of its major unions warn of escalating industrial action that could disrupt the airline’s operations. The carrier’s baggage handlers conducted a four-hour nationwide strike on Sept. 20, causing 28 flight cancellations and about the same number of delays. Although they have not yet given official notice, union leaders have told reporters that further action is likely as early as next week.

Madhu Unnikrishnan
The Air Transport Association has doubled its forecast for capacity cuts by U.S. airlines in the fourth quarter, reflecting the continuing grim macroeconomic outlook, analysts say. Based on carriers' reported schedules, the association predicted last month that U.S. carriers' fourth-quarter capacity would be 0.5% lower than in the same 2010 period. But the group revised its forecast. Again, based on scheduled available seat miles for the fourth quarter, capacity could be 1% lower than in the same period in 2010.

Darren Shannon
Brazilian carrier GOL Linhas Aereas Inteligentes’ bid to acquire domestic operator Webjet Linhas Aereas has been approved by the National Civil Aviation Agency (ANAC). The approval is a major step in GOL’s attempt to strengthen its position against rival Grupo TAM, which continues its merger process with Chile’s LAN Airlines. However, GOL’s acquisition still requires approval from Brazil’s competition authority, the Administrative Council for Economic Defense (CADE), which also is considering TAM’s consolidation program.

Leithen Francis
Russia’s United Engine Corp. is promoting its TV7-117SM turboprop engine at the Aviation Expo/China 2011 show this week in Beijing as part of its campaign to persuade Xian Aircraft to select the engine for the MA700, China’s new 70- or 90-seat turboprop. This engine type is already used on the Ilyushin Il-114-300, a twin-engine Russian commercial turboprop aircraft developed in the 1990s. Russian company Chernyshev Moscow Machine Building Enterprise is spearheading United Engine Corp.’s sales push for the TV7-117SM at the show.

Oliver Wyman
Click here to view the pdf U.S.

Andrew Compart
The 6 a.m. hour no longer is a low-demand period at Reagan Washington National Airport, the FAA has decided, which means the limited number of takeoff and landing slots for that hour no longer will be doled out to airlines on a first-come, first-served basis.

Andrew Compart
A Texas state court judge set a trial date of June 13, 2012, in the American Airlines antitrust lawsuit against Sabre. American and Sabre recently signed an agreement to maintain their contract for including American inventory on the global distribution system until at least two weeks after the lawsuit is resolved.

Leithen Francis
The Harbin Aircraft Y12F, which has completed several test flights, is expected by the company to achieve its Chinese certification next September, according to Li Xiaodong, senior business manager for marketing of parent company Avicopter.

James Ott
Pittsburgh International Airport CEO Bradley Penrod is polishing a revised copy of the airport's Capacity and Service Enhancement (CASE) program, which suggests the airport’s location and unused capacity make Pittsburgh the top candidate to relieve congestion at major East Coast airports. He is now waiting for an airline to come forward and take him up on the idea.

By Bradley Perrett
Comac forecasts that 30,910 commercial passenger jet aircraft of all sizes will be built by 2030, of which slightly more than 10% will be single-aisle aircraft of 100-200 seats sold in China.

James Ott
Jacobs Engineering Group and Dallas/Fort Worth International Airport have modified a contract for the design of passenger Terminal A, adding $13.7 million in changes and increasing the design and design management cost to $52.4 million for the first of three one-year, optional extensions. The engineering company is providing architecture and engineering services for DFW’s $1.9 billion Terminal Renewal and Improvement Program (TRIP), which includes building a light rail station and improving the parking system. TRIP is expected to be completed in 2017.

Darren Shannon
Air Baltic is blaming the Latvian government’s lack of financial support and attempt to offload its holding in the troubled carrier for its decision to file for bankruptcy protection. The carrier, which will continue operations during its bankruptcy, says the government has “neglectfully and repeatedly delayed” decisions on a capital increase requested for the past six months and approved by Baltic Aviation Systems (BAS), a private shareholder in the airline. The Latvian state currently owns 52.6% of the airline’s stock, while a further 47.2% is held by BAS.

By Jen DiMascio
The Senate Appropriations Committee yesterday approved the fiscal 2012 transportation, housing and urban development appropriations bill that will fund the FAA in fiscal 2012 as a freshman senator issued a warning about the current strategy for passing spending bills. The bill’s aviation-related portions remained largely unchanged from Tuesday’s subcommittee markup, in which senators agreed to fully fund the Next Generation air traffic management system and provide $3.5 billion for the Airport Improvement Program.

James Ott
The Indianapolis Airport Authority has selected ET Energy Solutions to develop a solar farm consisting of 41,000 solar panels on the grounds of the Indianapolis International Airport, which will vie to become the largest solar operations in the U.S.

Oliver Wyman
Click here to view the pdf U.S.

Lee Ann Tegtmeier
Abu Dhabi Aircraft Technologies (ADAT) will take in 45 Etihad Airways aircraft for heavy maintenance checks as part of a new four-year contract that covers the UAE carrier’s entire fleet. The contract, which lasts from 2012 to 2015, covers 4C and six-year maintenance checks on Etihad’s Airbus A319, A320, A330, A340-500, A340-600 and Boeing 777 aircraft.

Darren Shannon
Chile’s antitrust court will approve LAN Airlines’ merger with Grupo TAM but only if they drop at least one of their global alliances, support cabotage in Chile’s domestic market, return some slot allocations and open their frequent flyer program to other airlines for five years.

Leithen Francis
Avic Commercial Aircraft Engine Co. (ACAE) has been speaking to German engine maker MTU and Italian engine parts manufacturer Avio about possible involvement on the Chinese company’s CJ-1000, currently in development, and designed for the Commercial Aircraft Corp. of China’s (Comac) C919.