In one $1.4 billion swoop, Dublin-based Fly Leasing has almost doubled its fleet to 109 aircraft by adding 49 Airbus and Boeing narrowbodies and widebodies in a deal with Sydney-based Global Aviation Asset Management. The deal is another sign that recovering airline demand—coupled with shortages in near-term production slots for new aircraft at Airbus and Boeing—is improving the fortunes for lessors.
U.S. Transportation Department has issued fines against Air Canada and United Airlines worth a combined $70,000. The Canadian carrier’s offense, according to DOT, was a failure to prominently disclose taxes and fees on its website, resulting in a $50,000 penalty. United’s $20,000 in fines, meanwhile, relates to delays in updating information on damages available to passengers with lost, damaged or delayed baggage on international flights.
The International Brotherhood of Teamsters is asking a court to nullify a cost-cutting agreement between Republic Airways and the former bargaining unit for Frontier’s pilots that Republic considers critical for the survival of its low-cost subsidiary. Nonetheless, Republic says it is forging ahead with restructuring plans, including its proposal to use debt offerings or other financing methods to raise $70 million for Frontier. "Expected completion is within the next month," a spokesman for Republic and Frontier says.
India's ailing flag carrier Air India got a breather Aug. 3 as the federal government approved a 17.32 billion rupee ($38.8 million) package to meet its immediate financial requirements.
Boeing has completed the FAA's flight test certification program for the 747-8 Freighter. It must still clear final approval from the FAA (Aviation Daily, Aug. 3).
The Latin American Civil Aviation Commission, the latest group to oppose the EU's emissions trading system, is calling on ICAO to develop a global system of market-based measures to combat aviation's share of greenhouse gas emissions while also urging the EU not to apply the ETS to international carriers.
Mexicana de Aviacion’s demise has been granted a further reprieve after a judge extended a final deadline beyond the Aug. 9 date initially set by a bankruptcy court. The extension, which was requested by the carrier’s unions, was permitted because of the apparent success of negotiations with three proposed bidders: Altus Prot, Avanza Capital and Ivan Barona.
American Airlines this year hopes to extend a streaming video inflight entertainment system beyond an initial retrofit program for its Boeing 767-200 fleet.
Copa Holdings could be a potential customer for Boeing’s re-engined 737 and expects to meet with the U.S. manufacturer in the next few weeks to discuss the program. The Panama-based company’s current fleet plan extends to 2018 (if certain options and purchase rights are exercised), including a net growth of 10 737s both this year and next, but after that there are no firm orders. However, now that Boeing seems committed to re-engining its narrowbody family, Copa is interested in the airframer’s plans and may even contribute to the new 737’s development.
SkyWest eked out a small profit in the second quarter but only thanks to a $3.3 million tax benefit, and the leader of the largest regional airline in the U.S. acknowledged it still has a lot of work to do to return to “meaningful and sustained profitability.” President Brad Rich says he expects that to happen in 2013.
Southwest Airlines is scrapping its previous plan to grow capacity by about 4% next year and instead is likely to keep capacity flat or cut it, with executives at the low-cost carrier citing high jet fuel prices, a fragile economy and fare increases that seem to be running their course. The capacity figures are for Southwest and AirTran Airways, which Southwest acquired last May. Southwest disclosed its change in plans while reporting its second-quarter earnings on Aug. 4.
International Lease Finance Corp. will acquire AerCap’s AeroTurbine business in a $228 million deal. The agreement for ILFC to take over the business that leases aircraft components and engines still needs regulatory approval and is expected to close “in the coming months,” AerCap says in announcing the deal.
Business aviation advocates were relieved that this week’s votes on the debt ceiling excluded user fees and changes to corporate aircraft depreciation schedules, but warn that such tax changes still may lie ahead.
Airline profits are showing the first year-on-year declines for eight quarters in the March-June period, according to IATA's latest Airlines Financial Monitor. The group cautions, however, that the estimate represents only a small sample of airlines that have already reported their results for the period. An initial analysis shows that Asian carriers suffered most, while European airlines improved. However, last year’s second-quarter results were hurt by the shutdown of European airspace following the outbreak of Icelandic volcano Eyjafjallajokull.
Allegiant Air’s parent company reported its 34th consecutive profitable quarter and 11th consecutive double-digit operating margin, using capacity reductions as its hedge against higher fuel prices. Increases in fuel costs and other expenses, however, still reduced Allegiant Travel Co.’s profit by 32% year-over-year and cut its operating margin by 6.4 percentage points to 10.3%.
Alitalia is moving forward financially but remains in the red, even if Chairman Roberto Colaninno calls the second-quarter financial performance an “extraordinary result.” Compared with the first half of 2010, Alitalia results show a marked improvement. The operating loss is down to €69 million ($98.8 million), against €129 million, on revenues of €1.5 billion, up 7%. The net result is still a loss of €94 million, but this compares with a €164 million loss a year ago.
The Wayne County Airport Authority (WCAA) has named Turkia Awada Mullin, the county’s chief development officer, as the authority’s CEO, overseeing Detroit Metropolitan Airport and Willow Run Airport. Mullin replaces Lester Robinson, whose contract was not renewed last May. She was one of 61 candidates interviewed and was chosen from among six finalists, two from Michigan and four others from other states including the District of Columbia. Her starting date and compensation package are being negotiated, officials say.
With a landing by two flight test aircraft at Paine Field in Everett, Wash., Tuesday afternoon, Boeing completed the FAA’s flight test certification program for the 747-8 Freighter, clearing the way for delivery of the first airplane to launch customer Cargolux in September. Flight test airplane RC522 completed testing of the jet’s flight management computer while RC523 finished function and reliability testing.
