The China market accounted for 22% of Airbus deliveries last year and is likely to account for 15-20% of the total in the next 20 years, according to Airbus China President Laurence Barron. Airbus delivered 111 aircraft to Chinese customers in 2010 and expects to deliver 115 this year. Of last year’s 111, 26 aircraft were built at Airbus Tianjin, says Barron. The plan is for the Tianjin plant to reach a production rate of three aircraft per month by year-end, increasing to four per month by the end of 2012, he says.
Chicago O’Hare International Airport has planted a 928-sq.-ft. aeroponic garden in the G Concourse of Terminal 3 to produce vegetables and herbs for use in airport restaurants. The Chicago Department of Aviation is working on the hanging garden with HMS Host, which operates four restaurants at O’Hare.
Some Emirates Airlines executives, including Andrew Parker, senior VP-public, industry, international and environmental affairs, were in Washington yesterday to meet with the Air Transport Association to explain the airline's position on export financing, a contentious issue for U.S. airlines, which believe their competitors in the Gulf states are receiving unfair subsidies. The entourage then travels north to plead again for more slots from the Canadians. Quietly consulting in the airline's corner is John Byerly, former top aviation negotiator for the U.S.
Air Baltic CEO Berthold Flick says he “would have left a long time ago if I was not the owner” of the Latvian airline. Speaking at the World Low-Cost Airlines Conference Tuesday in London, Flick told delegates he will “definitely not be Air Baltic CEO this time next year.” However, the details of his departure depend on an agreement with the Latvian government.
Los Angeles City Council’s approval of a lease between Los Angeles World Airports (LAWA) and Delta Air Lines will restart the renovation of Terminal 5 at Los Angeles International Airport. The lease restates the original 40-year term, which expires in 2025. LAWA expects revenue of $19.6 million for the first year and $283.1 million in the remaining 14 years of the term. The lease calls for Delta to complete its $228.8 million terminal renovation.
China is forecast to be the world’s second-largest market for new commercial aircraft in the next 20 years, but the rapid growth in the industry means many more pilots and maintenance engineers are required, and quickly.
Virgin Australia and Delta Air Lines are taking the first major steps to implement the transpacific joint venture that was approved by U.S. and Australian regulators in June.
European low-cost carriers will have to keep their low-fare structure, but offer a product attractive to business travelers to survive, Vueling’s CEO Alex Cruz told the delegates at the World Low-Cost Airline Conference this week in London. “We have broken all the commandments of the low-cost bible,” Cruz says, offering connecting flights, flying to major airports, using passenger loading bridges there and introducing added features for business travelers. “We are proving it can be done with a very low-cost structure,” he points out.
Pratt & Whitney Canada and Avic Engines are establishing a maintenance, repair and overhaul (MRO) firm in Zhuzhou, Hunan province, to support P&WC PT6 and PW100 turboprop engines. The new joint venture—Zhuzhou Tonghui Aero Engine Maintenance (AEMC)—will provide in-country services for civil-certified PT6A and PW100 engines.
Aer Lingus CEO Christoph Mueller believes a “full free float is the best way to go” for airlines, if no obvious strategic investor can be found. Mueller made the comment at the World Low-Cost Airlines Conference this week in London. The Irish government has announced its intention to sell its 25% stake in the airline, and co-owner Ryanair is also willing to sell. “You cannot focus on the three big carriers (Air France-KLM, International Airlines Group, Lufthansa) as potential buyers,” Mueller says.
Copa Airlines will operate twice-weekly service between its hub at Tocumen International Airport, Panama, and Sangster International Airport in Montego Bay, Jamaica, effective Dec. 11. The service adds to the twice-weekly flights already operated by Copa from Tocumen to Norman Manley International Airport in Kingston. Copa operates Embraer 190s on its Jamaican services.
Aviation appears to be escaping the brunt of Washington’s deficit reduction push—at least in fiscal 2012 appropriations. The Senate Appropriations subcommittee on transportation and housing on Tuesday approved a bill that, if enacted, would provide 19% less funding than similar legislation proposed two years earlier. Still, it fully funds the FAA’s Next Generation air traffic modernization system and increases funding for the FAA’s operations. By contrast, high-speed rail projects were gutted.
Airports Authority of India (AAI) has asked for government approval to spend 200 billion rupees ($4.12 billion) in the next five years to modernize and stimulate traffic at airports across the country.
Lufthansa issued a profit warning on Tuesday saying it no longer expects to exceed last year’s €876 million ($1.2 billion) operating profit. It told the German stock exchange the revision reflects surprisingly weak August travel and forward bookings. It also confirmed it will scale back winter capacity growth plans, but did not go into detail. The airline initially planned to grow by 12%, but cut back to 6% earlier in the year. Its shares dropped by 4% following the announcement.
The U.S. Transportation Department (DOT) is considering forcing airlines to make their websites and self-service kiosks accessible to most disabled travelers.
Allegiant Air says it is closely watching the decisions that Southwest Airlines and its newly acquired AirTran Airways are making about route cuts, anticipating that some will provide more new opportunities. AirTran announced in August that it would be ceasing operations at four airports early next year, and Allegiant is jumping into two of them in November—Newport News, Va., and Asheville, N.C.—to Orlando. Allegiant focuses on low-frequency service from small communities to major destinations.
Boeing, General Electric and Cargolux are in the midst of renegotiating the impact of a 2.7% fuel burn performance shortfall that unexpectedly prompted the cargo airline late Friday to suspend first delivery celebrations for the 747-8 Freighter planned for yesterday.
Boeing is doubling production of its aircraft composite parts factory in Tianjin, China, and also has been making investments to support China’s fast-growing airline industry. The plan is to progressively expand production until it doubles, says Boeing China’s newly appointed president, Bertrand-Marc Allen.
