Downward pressure on U.K. research and technology (R&T) funding for aerospace is persisting, with concerns mounting within the industry over an ability to reverse the trend. Although research and development spending was largely flat in 2010 compared with 2009 levels, total R&T spending was down 1%. “The R&T slide has got to be reversed,” says Graham Chisnall, managing director for aerospace and operations at ADS, the British aerospace, defense and security trade association.
Republic Airways signed a cost-cutting deal with pilots of its Frontier Airlines subsidiary in which Republic would give the pilots an equity stake in the carrier and attempt to scale back its own investment to a minority holding.
German air traffic control provider DFS says about 100 of the 1,400 daily flights at Frankfurt will be canceled this week. DFS is opening a new tower for the airport on June 14. With controllers having to get used to the new systems, spacing between aircraft departing and arriving will be increased. Airline officials say they have some understanding for the decision, but would be concerned if the measure would last for more than a few days. Lufthansa is most affected with about 40 daily flights.
Aeromexico on July 4 plans to launch daily Embraer 190 service between Chicago O’Hare International Airport and General Mariano Escobedo International Airport in Monterrey via Del Bajio Guanajuato International Airport in Leon. The announcement comes as Volaris, an Airbus narrowbody operator, applies to the U.S. Transportation Department for permission to operate nonstop between Chicago Midway Airport and General Francisco Mujica International Airport in Morelia, central Mexico, as soon as approval is granted.
Volcanic ash clouds have once again been causing headaches for airlines in the past few days, but this time the culprit is an eruption in Chile and the carriers affected most are those in Australia and New Zealand.
An agreement to further liberalize travel between Chinese and Taiwanese airlines will result in a 50% increase in air services and five more cities getting direct cross-strait links. Unveiling a new traffic driver, China says it will allow trips to Taiwan by individual tourists—as distinct from business travelers and group tourists, who are already allowed.
Great Lakes Aviation has worked out a deal that gives it an additional two months to make a balloon payment of more than $30 million to Raytheon Aircraft Credit Corp., which is the principal creditor and largest single shareholder in the Cheyenne, Wyo.-based regional carrier.
The travel industry applauded U.S. President Barak Obama’s Jobs and Competitive Council’s recommendations to streamline visa procedures as a way to boost employment in the travel and tourism industries.
Thai Airways plans to obtain 37 new Boeing and Airbus aircraft for 118.6 billion Thai baht ($3.89 billion) by 2017, Reuters reported Monday. The airline would purchase 15 aircraft for 49.5 billion baht and lease 22 aircraft for about 69 billion baht. Thai Airways plans to buy six Boeing 777-300ERs for delivery in 2014 and 2015, four Airbus A350-900s for delivery in 2016-2017 and five A320-200s to arrive in 2014 and 2015.
The Norwegian parliament authorized the country’s government to sell its stake in SAS Group, clearing a major hurdle on the way to eventual full privatization of the Scandinavian airline. Norway stated, however, that like the airline’s other two government shareholders, it will not exit unilaterally.
Air services across the southern part of South America continued to be disrupted last week as winds pushed a volcanic ash cloud originating in Chile around the region. Flights were expected to be affected until at least June 12, according to itineraries released by some of the region’s carriers.
Air Canada may still avoid a strike by its customer service and sales staff if it can reach a deal with the Canadian Auto Workers-TCA union by 11:59 p.m. June 13. However, the carrier also has contingencies in place and claims that operations will not be affected if the union proceeds with its proposed strike. CAW’s Air Canada members last week demonstrated against what they say is the airline’s attempt to “slash the pension plan for existing and future workers and create a two-tier workforce.”
You can now register online for Aviation Week events. Go to www.aviationweek.com/conferences or contact: Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) Sept. 12—A&D Finance Europe, London Sept. 14-15—MRO for Aircraft & Engine Leasing, Dublin Sept. 26—Aircraft Composite Repair Management Forum, Zurich Sept. 27-29—MRO Europe 2011, Madrid Sept. 28—MRO Military Europe, Madrid Oct. 20-21—MRO IT, Chicago Oct. 24-26—A&D Programs, Phoenix
The U.S. Transportation Department granted final approval June 10 for Delta Air Lines and the Virgin Australia Carriers to form an immunized alliance. The department earlier gave its tentative approval and issued the final one without modification, noting in response to one objection that the carriers must seek prior approval from the DOT if they intend to deviate from the terms of their commitment to maintain their capacity in the transpacific market for at least two years.
This week, the House and Senate both return to work in Washington, where the fate of the FAA’s reauthorization bill still remains up in the air. One of the outstanding issues between the House and Senate versions of the bill has been the number of long flights that can take off from Reagan Washington National Airport in Arlington, Va.
HNA Group unit Tianjin Airlines aims to massively increase its fleet over the coming two years to 140 aircraft, almost half of them Airbus A330s and A320s, from the 57 regional jets it now operates. By 2013 the carrier, based in its namesake city in northern China, will operate 500 routes to 100 cities and carry 15 million passengers annually, compared with about 4 million currently, Chairman Li Weijian says.
A shrinking pool of Airlines Reporting Corp.-accredited travel agents is selling more air tickets than when it had beefier ranks. For the first five months of this year, total U.S.-based agent sales were up nearly 8% from the same time last year to $36.7 billion in consolidated ticket dollar value. At the end of May, 14,500 retail locations, plus 686 satellite-ticket printer outlets and 1,319 verified traveler consultants, were in business. This compares with more than 26,000 locations after the first five months of 2002, when sales totaled $27.9 billion.
A ceremonial opening of Boeing’s 787 final assembly building in North Charleston, S.C., on June 10 heralded the expectation that manufacturing will begin there on July 12. The 642,720-sq.-ft. facility will begin operations building the standard-sized 787-8 using a U-shaped assembly process that is likely to be more efficient than Boeing’s main line in Everett, Wash. The North Charleston factory is wider than Everett’s and allows easier access for suppliers.
India will soon begin designing and developing a national civil aircraft for providing connections between the country's smaller cities and major metropolitan areas. The National Aeronautics Laboratory (NAL) has been entrusted with the project, says Ashwani Kumar, federal junior minister for science and technology.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) June 14—University of Westminster Aviation Seminars: “Air Transport Marketing: Practical Techniques and Strategies,” London, +44 (207) 911-5000 ext 3220, fax +44 (207) 911-5171, www.westminster.ac.uk/aviation June 14-18—University of Kansas Aerospace Short Course Program: “Helicopter Performance, Stability and Control,” 877-404-5823, www.continuinged.ku.edu/aero
The U.S. Transportation Department fined Frontier Airlines $40,000 for failing to disclose flight-specific on-time performance on its website—the latest in a string of penalties the DOT has assessed on various carriers in recent weeks. Frontier must pay $20,000 immediately and the rest if it repeats the violation within the next 12 months.
Delta Air Lines is moving jobs out of Minneapolis/St. Paul and cutting service in Memphis as it continues to adjust its operations for higher fuel prices. The carrier also is offering an early-out to employees as it reduces its work force in conjunction with capacity reductions later this year.
Another chapter in the drama surrounding Mexicana de Aviacion’s revival could open early this week when the person running the reorganization is expected to pass a preferred bid to the Mexican government for due diligence. Four bids are currently proposed, although the offer by TG Group (which was reinstated just a few weeks ago after a public campaign by the group) is now in doubt after allegations that key documents have been forged. Each bid must prove it has access to $250 million in fresh capital for the bankrupt airline.
