Republic Airways says it has finalized most of the restructuring cost savings it sought for its Frontier Airline subsidiary and soon will start the process that could spin off the low-cost carrier from the parent company.
A three-years-and-counting ban on U.S. FAA certification of foreign repair stations is stifling U.S. jobs and international expansion, the Aeronautical Repair Station Association (ARSA) says.
Japan Airlines expects to return to profitability just eight months after emerging from bankruptcy protection, and is on track to surpass its financial goals for its full fiscal year despite the slump in demand linked to the March earthquake.
Industry officials involved in aviation safety and a senior European Union official tell Aviation Week that the FAA has singled out the civil aviation authorities of Germany and Italy for having too few operational safety inspectors. There is no threat of the FAA downgrading these two to Category 2 in its International Aviation Safety Assessments program, but the U.S. agency expects Europe to fix the problem promptly, says the official. Germany has already responded by going on a recruitment drive for more inspectors, adds the politician.
The phaseout of DB Schenker’s dedicated air cargo network is prompting Air Transport Services Group (ATSG), an Ohio-based leasing and cargo aircraft provider, to sell most of its DC-8 and Boeing 727 aircraft and undertake a fleet renewal program focused on additional 767s and 757s.
Global distribution systems (GDSs) are an “important part of the whole value chain” for the airline industry, but GDS providers need to invest more in technology that will enable the airlines to tailor their offerings and de-commoditize their product, the leader of the International Air Transport Association says. In a Nov. 8 interview with Aviation Week on a wide range of issues, Tony Tyler—in his 131st day as IATA’s director general and CEO—said more flexible systems could help airlines improve their profit margins.
Qantas subsidiary Jetstar has begun the fleetwide rollout of pre-loaded Apple iPads as an alternative to seat-back inflight entertainment (IFE), which the carrier claims is an industry first.
Airbus is on track to set a new order record this year after booking 193 orders last month without any cancellations. The company’s gross order intake for the year has reached 1,372 aircraft. Through the first 10 months of 2011, Airbus delivered 418 aircraft, pulling ahead of deliveries for the same period last year, when the aircraft maker handed over 417 units.
The U.S. Travel Association is transferring the ownership of DiscoverAmerica.com, the travel-promotion site created in partnership with the Commerce Department, to Brand USA, Inc., the public-private corporation set up by the Travel Promotion Act. The transfer of ownership is an in-kind contribution. Brand USA formerly was known as the Corporation for Travel Promotion. The site is available in English, Spanish, French, German and Japanese. Content comes from the departments of State and Homeland Security, as well as from several state and local tourism bureaus.
Click here to view the pdf Aircraft Operating Costs and Statistics, 12 Months Ended March 2011, Regional Jet Aircraft (Pages 1 and 2 of 4) ERJ 135 Manufacturer: Embraer
All Nippon Airlines has reported the first operational glitch in its young Boeing 787 fleet, a balky main landing gear that prompted a go-around so pilots could deploy the gear manually for an uneventful landing. The incident occurred Sunday as the first of the two 787s in ANA’s fleet was landing at Okayama in central Japan.
Air Berlin is taking over the outstanding shares in its Austrian subsidiary Niki. The carrier currently holds a 49.9% stake in the low-fare airline and announced yesterday that it will acquire the remainder. The deal is a non-cash transaction. In 2010, Air Berlin had granted a €40 million ($55 million) loan to a foundation controlled by Niki majority owner Niki Lauda. According to the terms of the loan, it could be paid back or converted into shares, which is what has been decided now. Niki Lauda will become a non-executive director on the Air Berlin board.
A Mexican bankruptcy judge appears to be the only potential savior for Mexicana de Aviacion as another week begins with no evidence of the $250 million deposit deemed necessary to revive at least part of the troubled carrier’s operation. Last week the most recent rescue package, which was proposed by a consortium called Med Atlantica, was expected to deposit the funds after apparently being hindered by paperwork the week before. But by week’s end, the only thing delivered was another promise of money, this time on Nov. 7.
Despite a plan to park 80 aircraft during the winter season, Ryanair expects full-year profit guidance for stockholders to increase to €400-450 million. In announcing half-year results, airline CEO Michael O’Leary says, “Based on current [third-quarter] bookings and very limited visibility into Q4, we now expect [second-half] yields will rise by up to 14%, slightly better than the 12% previously predicted, leading to the profit guidance improvement.
Air Canada’s management still is committed to launching a low-cost subsidiary despite union opposition to the pay rates and pension revisions the company believes are necessary to ensure the success of the venture. President and CEO Calin Rovinescu during a conference call to discuss the airline’s declining profitability despite continued cost-cutting initiatives and improved sales, maintained that the carrier must diversify its operations to access high-volume sectors beyond the premium market on which it currently focuses.
Royal Brunei Airlines, which is scaling back its long-haul operation, does not need all the long-haul aircraft it has in its fleet and is in talks with lessor Singapore Airlines (SIA) about returning some of the aircraft early. Royal Brunei last year took six Boeing 777-200ERs from SIA, but in June announced a massive restructuring that involved dramatically scaling back its long-haul operation. The money-losing carrier intends to focus more on short-haul flights connecting Brunei to nearby Asian countries using Airbus A320-family aircraft.
In spite of industrial actions and the grounding of Tiger Airways, Australian airport operator MAp’s Sydney Airport skimmed through the third quarter with a modest 0.5% growth in earnings to A$201.1 million ($208.7 million), compared with the like period last year. Over nine months ending Sept. 30, MAp’s performance shows improvement, a 2.8% increase in earnings to $583 million. Traffic increased only 1.1%, but retail revenue climbed 5.7%, largely due to expanded offerings in the International Terminal.
Southwest Airlines and AirTran Airways pilots approved an agreement for integrating their work group seniority, avoiding a potential fight over the usually contentious issue. The integration of the lists determines the order in which the pilots are placed on a unified list. A pilot’s position on the list can determine career aspects, such as earnings, city base and days worked.
Airlines appear to be warming up to the idea of using the global distribution systems to broaden their sales of preferred seats, priority boarding, meals, Wi-Fi and other revenue-generating options. More carriers are signing up for Sabre Travel Network’s merchandising product, and a growing number are providing their fee data to the Airline Tariff Publishing Company.
Air cargo at European airports is stuck in a downward trend, but passenger traffic continues to grow, according to September statistics released by Airports Council International–Europe (ACI Europe).
The Department of Homeland Security has been slow to realize the benefits of the Next Generation air traffic control system, lawmakers say, and they are blunt about wanting to change it.
