Sydney Airport posted A$200.6 million (US$206.3 million) earnings in the third quarter, described as a challenging period that included major travel disruptions. Revenue climbed 2.7% to A$246.8 million from the previous third quarter despite the grounding of Tiger Airways and several industrial actions. Operating costs increased 11.9% to A$44 million.
The leader of the largest U.S. airline trade association says he supports legislation in Congress that would prohibit the carriers from participating in the European Union’s emissions trading system (EU ETS). “Maybe that’ll help break through to the European Commission and underscore how wrong their position is in terms of exercising jurisdiction over international skies,” Nick Calio, president of the Air Transport Association, said after a speech to the Aero Club of Washington on Oct. 18.
Oneworld’s American Airlines and Abu Dhabi-based Etihad Airways have extended their 2009 code-share agreement to allow the redemption of frequent flyer miles. The latest update comes some five months after the two carriers first allowed miles to be accumulated on their code-share flights.
India may soon allow foreign carriers to take an equity stake in domestic airlines to help the sagging aviation industry in the country. The Department of Industrial Policy & Promotion (DIPP), the nodal agency on Foreign Direct Investment policy, has presented a proposal to the government to let foreign airlines invest in the country.
Cathay Pacific Airways has tapped the capital market for $85 million in financing rather than going to a bank, a sign that airlines may be concerned about a credit gap. The Oneworld carrier says its wholly owned Cathay Pacific MTN Financing Ltd. has “priced HK$658 million ($85 million) of notes bearing a coupon of 3.9% due in 2018 under its $2 billion, medium-term note program.” The coupon percentage rate refers to the annual interest rate. The airline did not give details about how the money will be used.
The International Air Transport Association’s Simplified Interline Settlement (SIS) initiative, which went live early this month, could save airlines $450-700 million in annual costs when the program is fully implemented in April 2013.
Countries opposing European Union plans to include aviation in its emissions trading system (ETS) will go before the International Civil Aviation Organization’s (ICAO) council to state their objections. The Indian government recently signed up 21 countries—all members of the ICAO council—to express their misgivings about the ETS. Given that the 36-member council acts by majority rule, any measure put forward is likely to pass.
India’s GVK Airport Holdings Pvt. Ltd., a unit of GVK Power & Infrastructure Ltd., has acquired 108 million shares in Mumbai International Airport Pvt. Ltd. from Bid Services Division (Mauritius) Ltd. The shares, amounting to a 13.50% stake in the airport, were acquired for $231 million, the company said on Oct. 18. With the purchase, GVK now holds 50.50% in Mumbai International Airport.
Cornwall Council, the unitary authority of Cornwall, U.K., is looking for a partner to operate the Newquay Cornwall Airport, which recently lost service from Air Southwest and has had to rely on government subsidies.
India seeks flexible ways to expand its aviation industry, which is soon expected to be among the top five in the world. “Innovative and flexible business modules may be evolved, enabling greater connectivity between countries to promote people-to-people contacts, as well as trade and business,” India’s president, Pratibha Patil, says.
All Nippon Airways believes passenger demand remains on track to recover fully by the end of its fiscal year in March, as traffic continues to strengthen following its post-earthquake slump. Demand is “definitely recovering,” although it has been a slow process for non-Japanese inbound traffic and domestic leisure market, an airline spokeswoman tells Aviation Week. In comparison, business travel—both international and domestic—rebounded far more quickly.
Vero Beach, Fla.-based Piper Aircraft is conducting a review to determine whether to move forward with its new Altaire single-engine jet program and has reorganized its leadership, naming Simon Caldecott interim president and CEO, effective immediately. Caldecott, a longtime business aviation executive who joined Piper in 2009, replaces Geoff Berger, who was named interim CEO in mid-2010. Also leaving the company is Executive VP Randy Groom, who formerly served with Caldecott at Hawker Beechcraft and its predecessor companies.
FAA Administrator Randy Babbitt participated in the groundbreaking Tuesday of a new FAA control tower and Tracon at Cleveland Hopkins International Airport. The $69 million project will replace a radar facility and tower that dates to the 1980s. Babbitt says the 324-ft. tower will improve the line of sight for controllers who will be using next-generation air traffic control equipment.
British Airways, worried about a potential trade war, is urging the European Union to find a way out of the current conflict over the scheduled Jan. 1 inclusion of airlines in the emissions trading system (ETS). “We are concerned about retaliatory action,” British Airways CEO Keith Williams tells the Royal Aeronautical Society. The airline is worried that if countries opposed to the ETS make good on retaliatory threats, airlines will bear the brunt of those actions. Williams renewed BA’s call for a global system without competitive distortions.
The airline industry’s hope that biojet fuel will help curtail its carbon dioxide footprint could be at risk because of high cost and demand from other sectors. Demand for biodiesel for road transport is rising so quickly it is unclear where the supply will come from, and that is before factoring in the demand for biojet for aviation, John Cooper, director of transport policy at petroleum producer BP tells a Royal Aeronautical Society conference. Availability of feedstock is “a major concern.”
JetBlue Airways, Delta Air Lines and US Airways each will get one of the three arrival-and-departure slot pairs currently used by Allegiant Airlines at Southern California’s Long Beach Airport, which provides 41 slot pairs for use by non-commuter carriers.
An industrial action campaign by Qantas engineers has contributed to the loss of a third-party maintenance contract, and has prompted Jetstar to outsource some aircraft work overseas, the Qantas Group says.
Lufthansa CEO Christoph Franz asked Frankfurt Airport not to open its new fourth runway at the end of this week in order to avoid a ban on night flights. Franz told Der Spiegel magazine that the curfew, which was imposed on airlines by a local court last week, was more than Lufthansa could accept. The airport, the airport association and the state government stressed that the runway will become operational as planned.
Fly Leasing has sealed a $1.4 billion contract to almost double its fleet to 109 aircraft two-and-a-half months after first disclosing its expansion plan. It also appears that the Dublin-based company may not have finished restructuring. Upon finalizing the deal, CEO Colm Barrington said the company “will continue to explore options to prudently and strategically grow.” The asset purchase from Australia-based Global Aviation Asset Management adds 49 Airbus and Boeing narrowbodies and widebodies.
The revamped Air France-KLM management team faces an uphill struggle as it tries to revive the financial fortunes of the network carrier. In an unusual move for the carrier, the Air France-KLM board met Monday to restructure the leadership, ousting Pierre-Henri Gourgeon, CEO of Air France and of Air France-KLM. Jean-Cyril Spinetta, chairman of the Air France-KLM group board, has been named chairman and CEO of the group, and Leo Van Wijk has been appointed deputy CEO of the group.
“Intense hatred” for a handful of U.S. airlines accounted for most of the negative public posts made about U.S. airlines on popular social media sites over the past 12 months, according to a new report by a social media analytics company that tracks public comments made on Facebook, Twitter and its own website.
