Delta TechOps has signed an exclusive five-year agreement with Air Canada for repair and overhaul services on the airline’s fleet of Pratt & Whitney PW4060 engines that power nine Boeing 767 aircraft.
While Southwest Airlines has flown more than 5,800 required navigation performance (RNP) approaches since January, the carrier says RNP is not yet yielding the expected benefits.
Kingfisher Airlines, India’s second-largest airline by passengers carried, will close its low-cost operation, Kingfisher Red, Chairman Vijay Mallya says. “We are doing away with Kingfisher Red because we don’t intend to compete in the low-cost segment. We believe there are more than enough guests who prefer to travel full-service, and that shows in our own performance, where the load factors in [full-service] Kingfisher Class are more than in Kingfisher Red,” Mallya says.
Thai Airways International is upping its stake in Nok Air, but may fall short of gaining control. A Thai spokeswoman says, “Thai’s executive management board has agreed to buy Krung Thai Bank’s 10% stake [in Nok] at approximately 33 baht ($1.06) per share. However, this still has to be approved by the board of directors,” she adds.
SkyTeam, accepting Taiwan’s China Airlines as its 15th member, is focused on improving integration of ground services, rather than a rapid expansion of the alliance. The group still affirms, however, that new members from Brazil and India would be most valuable to the alliance. “I will be extremely selective” in negotiating with potential new members, says SkyTeam Managing Director Michael Wisbrun. “I would prefer to consolidate on the network side,” while putting more effort into raising service levels.
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.
Brazil’s GOL Linhas Aereas Inteligentes and Aerolineas Argentinas have unveiled a plan to code-share and may offer reciprocal frequent mileage benefits, including mileage redemption, should their memorandum of understanding be approved by regulators. While GOL has code-share accords with numerous airlines, the non-affiliated airline has strengthened its relationship with SkyTeam members, notably Delta Air Lines, the same alliance Aerolineas intends to join next year.
The new Indonesian owner of defunct local carrier Mandala Airlines says he hopes to have the carrier flying again within three months, but makes clear he wants to cash out at some point.
Emirates early next year will increase its U.S. network to six gateways with the addition of nonstop service to Dallas/Fort Worth International and Seattle-Tacoma International airports from Dubai. The UAE carrier will launch its second Texas service Feb. 2 and the Seattle nonstop March 1. Both will be served with Boeing 777s. These routes bolster a U.S. network that already includes Houston, Los Angeles, New York and San Francisco.
Papua New Guinea’s airline industry is undergoing a shake-up as the country’s two largest carriers prepare to merge. The cabinet has given in-principle approval for a merger between Airlines PNG and national carrier Air Niugini, according to local news reports quoting Prime Minister Peter O’Neill.
Avianca’s deal to acquire four A330-200 Freighters has returned the Airbus order book, which had decreased after the aircraft maker suffered cancellations, for the type to more than 60 aircraft. But even with the deal, the order intake for the year remains in negative territory, with seven additions and 12 cancellations.
Ethiopian Airlines will formally join Star Alliance by year-end, just 15 months after the carrier was accepted as a future member at a ceremony in Addis Ababa. Ethiopian will be the third African carrier to become a member of Star, joining Egyptair and South African Airways; it had been in talks with these two airlines to create partnerships across the continent before the civil uprising in Egypt earlier this year.
Air New Zealand has raised its stake in partner carrier Virgin Australia to just under 20%, although it stresses that it has no interest in making a takeover bid for the Australian airline. Air New Zealand already had a stake of almost 15%, which it acquired in January. At the time, it received regulatory approval to increase its holding to 19.99%. Rob Fyfe, CEO of Air New Zealand, says he phoned his Virgin Australia counterpart John Borghetti to assure him that there is no takeover attempt.
It is considered conventional wisdom in the maintenance, repair and overhaul (MRO) industry that an employee shortage looms, although there is disagreement over when it will hit and what steps may be available to mitigate it. “We have a shortage coming,” warns Hank Schaeffer, manager for maintenance training at Boeing, noting that it is unclear when that will be the case.
Having secured a long-term agreement with Southwest Airlines for support of its full-authority digital engine control, BAE Systems is looking to secure other long-term arrangements with airlines to support its airliner electronics.
American Airlines expects to raise at least $726.7 million from a corporate bond issue scheduled next month. The pass-through certificates will be secured by 43 aircraft consisting of Boeing 737s, 757s and 777s valued at about $1.6 billion, although all but four of the airframes are encumbered. A second issue could boost the total to almost $1 billion.
Responding to reports about missing shoulder-fired missiles, or Manpads, in Libya, a California senator is asking the government to start a program in fiscal 2013 that would protect commercial aircraft from potential attacks. The program would follow a Homeland Security initiative started in 2003 in which BAE Systems and Northrop Grumman created systems that completed more than “16,000 flight hours aboard cargo and passenger aircraft,” according to a letter sent Tuesday by Sen.
Republic Airways could get several more months to raise a contractually required $70 million in financing for low-cost carrier subsidiary Frontier Airlines under a temporary waiver it is discussing with FAPAInvest (Aviation Daily, Sept. 27).
The FAA is pledging to contribute $466.5 million to Philadelphia International Airport’s planned $6.4 billion capacity enhancement program, the agency let airport officials know on Tuesday. The airport intends to fund the remainder of the program with airport revenue bonds, user fees and additional grant funding. Philadelphia is planning to build a new runway, extend two existing runways and configure the runway system for simultaneous, independent aircraft operations in poor weather conditions.
United Airlines’ Air Line Pilots Association chapter is calling for a U.S. court to halt the group’s integration with Continental Airlines’ pilots, arguing that the parent company is ill prepared to enforce new operating procedures and is sacrificing safety to meet “unrealistic deadlines.” These new procedures, according to Wendy Morse, chairman of the United Master Executive Council, use many of those currently employed by Continental, and that some 80% of United’s current manual is affected, while only 20% of Continental’s has been adapted.
