American Airlines could add up to 55 narrowbodies to its fleet annually in the first five years of an unprecedented upgrade program that should introduce at least 460 new aircraft to its operation between 2013 and 2022. The carrier’s deals with Airbus and Boeing, unveiled last week to great fanfare (Aviation Daily, July 20), include a first phase that adds current model airframes to American’s fleet between 2013 and 2017, and re-engined versions thereafter.
JetBlue Airways has reached an agreement in principle to sell 11 of the 12 Embraer 190 aircraft it was scheduled to receive in 2013 and 2014 to a “third party” that the carrier would not identify. JetBlue executives disclosed the agreement in a conference call July 26 on its second-quarter earnings. The New York-based low-cost carrier did not provide any other details about the deal.
Munich International Airport has received regulatory approval by a key regional authority to build a third runway. A district government stated in its decision that Germany’s second-largest airport has proven the need for additional infrastructure given its recent growth rates.
Calls to lift the FAA’s partial shutdown are being heard on Capitol Hill, but that doesn’t mean the stalemate will end any time soon. Senators remain divided over the same sticking points that halted action last Friday on an extension to the FAA reauthorization bill. And the debate in Washington over reducing the deficit is drowning out the fact that across the U.S., the FAA has furloughed 4,000 workers and continues to issue more stop-work orders for airport construction projects.
The San Bernadino International Airport Authority, overseer of the development of the former Norton AFB in California, is preparing a response to a scathing grand jury report of its management practices.
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Airbus has made a major move on the air traffic management front with its acquisition of Metron Aviation, a company that is heavily involved in the U.S. NextGen air traffic modernization effort. While a definitive agreement has been reached, the transaction is subject to regulatory approvals. The deal is expected to be completed this year. The financial terms are not being revealed.
A steep increase in fuel costs has led Vueling to post a sharp decline in operating earnings for the second quarter. Although the airline managed to remain marginally profitable for the period, it remains in the red for the half year. The airline reports a €19.6 million ($28.3 million) loss for the first six months, following a €7.1 million profit for the same period last year. That comes on a 17% increase in revenue, but a 34% jump in fuel costs, an expense line that was prevented from shooting up even more by the airline's hedging policy.
Air France-KLM plans to help restart financially struggling Air Ivoire and could even take a minority stake in the airline. The national carrier of the Ivory Coast has been grounded for several months as a result of its poor financial condition. It served mainly regional destinations and operated one long-haul flight to Paris.
Leaders of the Society of Professional Engineering Employees in Aerospace (Speea) Local 2001 are recommending that members at Spirit AeroSystems in Wichita, Kan., reject a 9.5-year contract offer that includes a variable pay formula that may change with market conditions. Members are scheduled to vote on the contract on Thursday, which applies to the 2,300 members of the Wichita Technical and Professional Unit (WTPU) that Speea represents, not the Wichita Engineers Unit (WEU), which operates under a separate contract.
As some U.S. airlines raise fares to reap extra revenue benefits from the FAA shutdown, which essentially allows them to keep the amount usually given to the government for taxes, the American Association of Airport Executives is lobbying for Congress to persuade airlines to put that money into an escrow account that would eventually flow into the Airport and Airway Trust Fund. Sens.
Taiwanese carrier EVA Air is poised to place an order for turboprop aircraft for its subsidiary Uni Air and is also in negotiations to buy jet aircraft. EVA Air’s spokesman says the carrier plans to order 10 turboprops and have first deliveries begin next year, so that Uni Air can start phasing out its Bombardier Dash 8-300s. He says that the competition is between the ATR 72 and the Bombardier Q400 and that no final decision has been made.
The drumbeat of opposition to the European emissions trading system (ETS) grows louder as the Latin American and Caribbean Air Transport Association (ALTA) is throwing its support behind the U.S. Congress’s plan to prohibit U.S. airlines from participating in the cap-and-trade system. At the same time, European carriers, worried about getting in the middle, are urging European Commission officials to address the growing controversy with U.S. authorities.
Iberia has opted for General Electric CF6-801E engines to power its new fleet of Airbus A330-300s, which are due to arrive about two months later than initially planned. In March the airline committed to buying eight of the widebodies, with options for eight more, but held off on the engine selection. Iberia parent International Airline Group says the engine deal includes a 15-year support package for the powerplants. The list price for the engines is $200 million.
Business aviation advocates received a setback in their efforts to preserve the Block Aircraft Registration Request (BARR) program last week after the U.S. Court of Appeals for the District of Columbia Circuit denied their motion to stop the U.S. Transportation Department from severely limiting participation in BARR. The advocates say they are pushing expeditiously for a full hearing on the matter.
JetBlue Airways pilots, who currently are not represented by any union, began voting July 26 on whether they want to be represented by the Air Line Pilots Association. The voting will continue until Aug. 16, which is when the ballots will be counted, JetBlue CEO Dave Barger says. A vote by JetBlue pilots on forming an independent union failed in early 2009, with only about a third voting for representation at the New York-based low-cost carrier (Aviation Daily, Feb. 10, 2009).
Alaska Airlines has more work to do to reduce its vulnerability to competition from low-cost carriers and “reconstituted legacy airlines,” but is generally pleased with its progress after reporting record second-quarter income when excluding special items, the carrier’s president says.
India’s largest airline by market share, Jet Airways, plans to merge its two low-fare subsidiaries into one full-service yet low-cost brand. Jet Airways currently operates JetLite, which it bought from Sahara Air, and Jet Konnect, both as separate businesses.
Next month will see Senegal Airlines undergo its first fleet expansion effort after the carrier started service in January. The airline—born of a public/private partnership—was established after the demise of Air Senegal and aims to initially focus on domestic and regional operations before pushing into long-haul operations. The airline will add an ATR 72-500 and an Airbus A320 to its fleet, with the 46-seat turboprop to join Aug. 8, followed by the narrowbody (the third in its fleet) on Aug. 15.
South Florida-based low-cost carrier Spirit Airlines says it is developing an option in which customers could pay a fee to hold a reservation for “a limited period” prior to final purchase, but that plan could be scuttled by a new U.S. Transportation Department rule that requires U.S. airlines to provide a 24-hour hold or refund option on any booking made more than a week before the flight. Spirit and Allegiant Air are challenging the 24-hour rule in court.
Passenger revenue growth slowed for the largest U.S. carriers in June, but the Latin American and Caribbean market remained a standout performer with continuing double-digit gains in revenue and yield, the Air Transportation Association says. According to ATA figures released July 20, passenger revenue increased 22% and yield by 18% year-over-year for Latin American and Caribbean routes. That compares with a 7% increase in both revenue and yield for all domestic, transatlantic, transpacific and Latin American/Caribbean routes.
