Aviation Daily

Darren Shannon
AirTran Airways could be fined $250,000 for operating a Boeing 737 with inadequate repairs to its angle-of-attack sensor after it was struck by lightning. The 737, according to the FAA’s proposed fine, was struck on March 20, 2009, but AirTran continued to use the aircraft on four subsequent passenger flights before repairing or testing the sensor. FAA also claims AirTran committed another infraction as it “misused” the minimum equipment list (MEL) when it deferred the repair. The MEL details legal operating minimums for aircraft.

James Ott
A minority of Transportation Security Administration (TSA) officers have selected the American Federation of Government Employees (AFGE) to represent the 43,000-member workforce in a close runoff election. AFGE garnered 8,903 votes, only 456 votes more than the National Treasury Employees Union (NTEU), bringing the total to 17,350 ballots. NTEU President Colleen Kelley said it was unlikely that the union will file an objection, allowing for prompt certification of the AFL-CIO rival by the Federal Labor Relations Authority (FLRA).

Robert Wall
AirAsia’s purchase of 200 A320NEOs (new engine option) is the largest number of Airbus aircraft ever sold. The deal is valued at $18.5 billion and tops yesterday’s deal for 150 A320NEOs and 30 standard A320s placed by Indigo (Aviation Daily, June 23). By value, it is Airbus’s third largest deal.

By Joe Anselmo
Embraer faces two important decisions in the coming months: how to proceed with its regional jet product evolution and whether to boost output for its existing family of RJs. The aircraft maker for some time has been exploring what should come after its E-Jet family. One option under review is a stretch of the Embraer 195.

Oliver Wyman
Fuel Watch: Global Jet Fuel Prices (midpoint) As of June 22, 2011, compared with previous week and previous year cts/gal prev. week prev.

Robert Wall
Airbus’s order surge at the Paris air show has driven the Airbus A320NEO (new engine option) backlog to 1,029 orders and commitments. The company so far this week has secured 730 orders at the Paris air show valued at $72 billion, says John Leahy, Airbus COO for customers. That does not include the 180 sold to Indigo, which had been previously announced.

Oliver Wyman
Click here to view the pdf Domestic Passenger Yield Trend At Top U.S.

Frank Jackman
The U.S. Treasury Department Thursday imposed sanctions against Iran Air after designating the carrier a proliferator of weapons of mass destruction for providing material support and services to Iran’s Islamic Revolutionary Guard Corps (IRGC) and the Ministry of Defense and Armed Forces Logistics (MODAFL). Iran Air Cargo and Iran Air Tours, both of which are units of Iran Air, also were designated for sanctions.

Robert Wall
IndiGo has firmed up its deal for 180 Airbus A320s, including 150 A320NEO (new engine option) aircraft. IndiGo was the first airline to sign a NEO deal, which is valued at $16.2 billion. “It is the largest airplane transaction ever done,” says John Leahy, Airbus chief operating officer for customers. The NEOs will be powered by Pratt & Whitney PW1100Gs. Aditya Gosh, president of IndiGo, says there is plenty of capacity for more aircraft. “We have many years to come before we reach maturation point,” he adds. Traffic is still outpacing capacity growth.

Elyse Moody
Superjet International inked an order to sell 12 Sukhoi Superjet 100s to Italy’s Blue Panorama Airlines. The order is worth $370 million at list prices. Superjet plans to start delivering the SSJ100/95B aircraft to Blue Panorama at the end of 2012.

Andrew Compart
British Airways cabin crew voted June 22 to ratify a new contract, bringing an end to a labor dispute with about 10,000 employees that began in October 2009 and included 22 days of strikes last year. But Virgin Atlantic now is bracing for a labor action that could come in July after Virgin Atlantic pilots voted overwhelmingly June 21 to authorize a strike.

Darren Shannon
Continental Airlines intends to resume nonstop service between Guam and Sendai in northern Japan that was close to the epicenter of March’s catastrophic earthquake (Aviation Daily, March 15). The twice weekly Boeing 737 service, which is scheduled to resume Oct. 2, marks the first return of regular service by a foreign airline since the facility reopened April 13.

Oliver Wyman
Click here to view the pdf

Leithen Francis
A further liberalization of air services between China and Taiwan appears to be the impetus behind some Taiwanese carriers’ fleet expansion plans.

Robert Wall
Kuwaiti lessor Alafco signed a memorandum of understanding with Airbus for 30 A320NEOs on June 22, and also added six A350s to its order total for the twin-widebody. The company now has 18 A350-900 versions on order, going back to a deal first signed in 2007. At the time, the company placed an order for -800s, but like others, Alafco has switched to the -900. Alafco has taken delivery of 25 A320s from an original order of 26.

Kristin Majcher
Emirates has signed a letter of intent with General Electric to open a $120 million engine overhaul shop in Dubai by 2014. The facility will accommodate 300 repairs per year for the General Electric GE90 and Alliance GP7000 engine types used to power Emirates’ fleet of Boeing 777 and Airbus A380 aircraft.

Frank Jackman
The Obama administration yesterday again strongly objected to the inclusion of U.S. airlines in the European Union’s Emissions Trading System (ETS) on policy and legal grounds.

Oliver Wyman
Click here to view the pdf ERA-European Regions Airlines Association Traffic, January-December 2010 Passengers % RPKs % ASKs % Load (000) Change

Leithen Francis
Royal Brunei Airlines has dramatically scaled back its medium-haul operations, which means it may need to return some of the six Boeing 777-200s it is leasing from Singapore Airlines (SIA).

Darren Shannon
A 14% rise in sales and 9% improvement in operating income at FedEx Express in fiscal 2011 contributed to a solid year for the logistics firm. Revenue at Express, the company’s largest division by sales, rose to $24.6 billion in the 12 months to May 31 and 13% in the fourth quarter to $5.9 billion, while operating income for the year grew 9% to $1.2 billion and 4% to $429 million in the last three months. The company says the improved income is due to higher yields, particularly in U.S.

Elyse Moody, Andrew Compart
The first confirmed order for Airbus A319NEOs (new engine option) has been placed by Indianapolis, Ind.-based Republic Airways as part of a deal for 40 A319NEOs and 40 A320NEOs. CFM International’s LEAP engine will power all 80 of the aircraft, and Airbus’ sharklet wingtip modifications will equip them for extra efficiency. Republic subsidiary Frontier Airlines will operate the narrowbodies. Republic disclosed plans earlier this year to retire Frontier’s older A318s by September while it waits for the Bombardier CSeries and now A320NEO family aircraft.

Staff
Click here to view the pdf

James Ott
Former Postmaster General John E. Potter will walk a political minefield as he takes office July 18 as president and CEO of the Metropolitan Washington Airports Authority. He faces a bundle of challenges over access to Washington Dulles International Airport—improvements to the toll road, putting a Metro station underground and a looming need to replace the Midfield Terminal. A search committee worked for more than a year before choosing Potter, 55, who garnered support of management and the Washington Airports Task Force.

By Rupa Haria
LAN Airlines of Chile has placed a firm order for 20 Airbus A320NEO aircraft, making it the first airline in Latin America to fully commit to Airbus’s new engine option, bringing LAN’s total orders of Airbus aircraft to 170. LAN CEO Ignacio Cueto said that adding the A320NEO to the fleet “is a huge step in ensuring LAN’s leadership in the region.” An engine selection is still to be announced.

Leithen Francis
Malaysia Airlines (MAS) has placed an order for 10 more Boeing 737-800s. It secured the aircraft by converting options for 10 737-800s to firm orders, says MAS, adding that the options date from the 2008 sales contract it had when it first ordered 737-800s from Boeing. MAS mainline operates 737-800s on domestic and short-haul international routes, as does its low-cost subsidiary Firefly.