Airbus is expanding the sourcing of airliner components from China. The aircraft maker says it is boosting production of rudders at its Hafei Airbus Composite Manufacturing Center joint venture with Avic Hafei and other Chinese entities. The deal will see rudder output rise to cover 50% of A320 production needs. At that point, the joint venture will build 21 shipsets per month, up from the three now produced by the business.
A new survey by the U.S. Travel Association (U.S. Travel) finds that 45% of all travelers would pay up to $150 to enroll in a trusted traveler program.
While Democrats, including President Barack Obama during a speech to the nation yesterday, are pledging to close a “tax loophole” for the owners of corporate jets, a top Republican indicates he may be willing to consider a proposal for deficit reduction that targets the owners of corporate jets.
JetBlue Airways expects to decide which engine will power its fleet of Airbus A320NEOs (new engine option) by the end of the year and is considering both CFM International’s Leap X1A powerplant and Pratt & Whitney’s PW1100G geared turbofan. The airline, which last week unveiled an order for 40 NEOs, expects to add Airbus’ upgraded narrowbody to its fleet between 2017 and 2021. JetBlue’s current fleet of A320s is fitted with engines developed by International Aero Engines, a joint venture that includes Pratt & Whitney.
The Chinese government’s central aircraft buying entity has committed to buying 88 more Airbus A320s, of which the Industrial and Commercial Bank of China (ICBC) is to receive 42 to bolster its leasing business. The aircraft bought under the deal, valued at $7.5 billion at list price, are to be delivered in 2012-2015 and further erode the available production slots for the A320 product type during that period.
Air Canada and United Continental Holdings are vehemently denying claims by a Canadian regulator that their joint venture is anticompetitive and an attempt to circumvent ownership restrictions, but have nonetheless suspended their transborder agreement while it is considered by Canada’s monopolies tribunal. Canada’s Competition Bureau claims a joint venture including the two companies and several other members of the Star Alliance that has been approved by several regulators including the U.S.
Passengers can sue European airlines for inadequate compensation granted under the European Union’s passenger rights rules, a senior EU legal official argues.
The International Brotherhood of Teamsters won an election to represent all the pilots employed by Indianapolis-based Republic Airways Holdings, which owns regional carriers Republic Airlines, Chautauqua Airlines and Shuttle America and low-cost carrier Frontier Airlines. But now comes the complicated and potentially difficult part, for numerous reasons that include Frontier pilot discontent with the vote and Republic’s desire to turn Frontier into a separate corporate entity.
Jetstar Pacific Airlines, the Vietnamese wing of Qantas’ low-cost affiliate, has contracted Pratt & Whitney to provide engine overhaul services for two years on the airline’s CFM International CFM56-3 engines, which power its Boeing 737-400 aircraft. With this accord Jetstar Pacific becomes the first non-Chinese operator to sign an exclusive agreement with Pratt & Whitney Global Service Partners to maintain CFM56 engines, which are manufactured by a joint venture between General Electric and Safran’s Snecma division.
Filipino carrier Seair, which reached a tentative deal in February to allow Singapore’s Tiger Airways to take a 32.5% stake, is about to undergo a further ownership change as it works to reposition itself as a low-cost carrier operating Airbus A320-family aircraft.
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.
The Transportation Security Administration is considering a modified pat-down after weeks of heavy criticism on how officers pat down children at airport checkpoints, which has been highlighted on YouTube videos.
Delta Air Lines expects to report an operating margin of 6.5-7% in a “solidly profitable” second quarter, owing to higher revenue that "largely offset" $1 billion in additional costs attributable to higher fuel prices, the airline said in an investor update June 27. The guidance for stockholders excludes the cost of special items, such as charges related to fuel hedging and its voluntary workforce reduction program. Delta’s operating margin in the second quarter last year topped 11%—its best in a decade.
After six years of wooing, Brownsville, Texas, South Padre Island International Airport will offer seasonal service to Monterrey, Mexico, on Aeromexico starting July 15, using Embraer ERJ-145s.
General Electric and its joint venture companies CFM International and Engine Alliance captured $27 billion in engine orders and support agreements at the Paris air show last week.
Boeing is taking over development and initial production of the composite horizontal stabilizer for the 787-9, shifting Alenia Aeronautica’s Foggia, Italy, factory into a secondary role for the stretched version of the twin-engine widebody jet. The shift takes effect in 2013, when the 787-9 is to enter production. Alenia officials say they are guaranteed a 50% production share for the new airplane and a 100% share for the 787-10X, a further stretch of the jet that Boeing is expected to launch.
Qantas engineers are launching targeted strikes in response to an impasse in contract negotiations, although the engineers’ union is encouraging off-duty members to offer to work overtime during the strikes. Two-hour rolling work stoppages will begin in Melbourne on July 4, during school holidays in Australia. The Australian Licensed Aircraft Engineers Association (ALAEA) has told its members to expect more such strikes over the next few weeks if talks with the airline do not progress. Contract negotiations are due to continue this week.
The Wayne County, Mich., Airport Authority (WCAA) is partnering with Michigan State University’s Extension Office to grow, harvest and process bioenergy crops on three acres of land at Detroit Metro (DTW) and Willow Run (YIP) airports. The initiative is part of an effort by WCAA to commit to sustainable aviation through the promotion and development of aviation biofuels.
China’s opposition to the European Union’s (EU) inclusion of non-European airlines in its emissions trading system (ETS) is taking on greater force. The Chinese government has blocked progress on Airbus’s sale of 10 A380s to Hong Kong Airlines because of the government’s opposition to the EU policy, industry officials say. EU representatives, however, shrug off the situation, and note there are no plans to exempt any airlines from the ETS in January.
