Click here to view the pdf Top Nonstop Airport Pairs: Europe-U.S., 12 Months Ending September 2010, Ranked By ASMs Onboard ASMs % Chg. Seats Per Load Market (Met
Brazil’s TAM Linhas Aereas is strengthening its relationship with Star Alliance through a new code-share agreement with Spanair. Starting May 12, TAM will place its ‘JJ’ designator code on the Spanish carrier’s services from Barcelona and Madrid to Bilbao, Malaga, Tenerife-Norte and Santiago de Compostela. Spanair at the same time places its ‘JK’ code on TAM’s daily flight between Madrid and the carrier's Sao Paulo hub. This expands a relationship from May 2010 that allows for certain reciprocal frequent flyer rights.
Brazil’s GOL Linhas Aereas Inteligentes entered its second decade in operation with an improved first-quarter profit, although its leadership continues to advocate cautious growth plans as growing fuel costs coincide with a boom in domestic demand. Excluding a BRL120 million ($74 million) non-cash charge to adopt a new revenue accounting and ticketing system, net income for the quarter totaled BRL110.5 million a near six-fold increase on the BRL23.9 million recorded in the first three months of 2010.
April produced a mixed bag of traffic results for the four largest U.S. legacy carriers, although a general oversupply across the Atlantic was a common thread throughout the month. The four carriers—American, Delta, United Continental and US Airways—also recorded dips in their domestic load factors despite attempts at the three largest to trim mainline capacity at home. Latin America provided some solid growth, especially for United Continental, although supply generally outpaced demand.
The U.S. Transportation Department (DOT) reversed course May 10 and tentatively approved antitrust immunity for Delta Air Lines and Virgin Australia Group affiliates for U.S.-Australia services.
Air Transport Services Group posted a $2.9 million net income in the first quarter, a 61.4% year-on-year decline attributed mostly to a $6.8 million non-cash charge associated with a recent debt refinancing deal (Aviation Daily, May 5). Revenues rose 8.8% to $175.1 million, while operating expenses grew 10.1% to $159.7 million on higher fuel and maintenance costs. ATSG says cargo earnings more than doubled, although this was depressed by an operating loss at its wet-lease division.
The parent of a defunct Chinese airline is suing the Civil Aviation Administration of China (CAAC) for allegedly grounding the carrier without proper reason, resulting in its bankruptcy and takeover by Air China. Travel agency East Star Group has told a court in Guangzhou that its East Star Airlines should not have been grounded, because it had passed a relevant safety inspection.
Delta TechOps has completed 108 modifications to make way for a new “Economy Comfort” class on its Boeing and Airbus aircraft, which will start flying on June 1.
In a renewed bid to restructure France’s aerospace and defense market, Safran and Thales have begun talks about an asset swap. It is not the first such effort, although competing industrial and political interests caused prior discussions to fail. But Safran says it “believes there are obviously opportunities and means to optimize French defense industrial and technological capabilities.”
US Airways’ pilots union has condemned the carrier’s safety culture and is calling for the board of directors to fire VP-Safety and Regulatory Compliance Paul Morell. The union, in a strongly worded release, says Morell “is derelict in his duties” and that the VP and other senior managers refuse to address pilots’ concerns.
Chinese logistics group Shenzhen International has agreed to buy a quarter of the stock of Shenzhen Airlines through a subsidiary, giving it a 49% share that cements state control of the carrier. Air China, with which Shenzhen Airlines’ operations are partly integrated, bought 51% of the carrier’s shares last year. Shenzhen International is itself 49% owned by the government of Shenzhen, a large and economically strong city near Hong Kong, while Air China is majority owned by the central government.
A government-issued credential for transportation workers created to enhance port security can be obtained with fake identification, according to the Government Accountability Office. In testimony to the Senate Commerce, Science and Transportation Committee, a GAO official said that 27% of Transportation Worker Identification Credentials (TWIC) issued went to applicants with a criminal record.
EasyJet’s pre-tax loss in the first half of its financial year widened to £153 million ($250 million), as the airline was hit by rising fuel costs and additional air service taxes. Revenues grew by 8.1% to £1.26 billion, with passenger numbers increasing by 11.6% to 23.9 million.
LIAT Chairman Jean Holder has confirmed the Antigua-based turboprop operator is in talks with ATR, Bombardier and Embraer “as the airline seeks viable options to replace its current fleet with more efficient models.” The comments follow a demonstration by Embraer of a 190 twinjet destined for JetBlue Airways, although the 100-seater is only one option being considered a replacement for LIAT’s Bombardier Dash 8s.
Debt watcher Fitch Ratings has upgraded its outlook on Bombardier Aerospace to stable after the manufacturer showed it was able to manage its leverage and liquidity. Bombardier was also lauded for addressing continued weakness in parts of its aerospace markets and investing in new aircraft programs.
Implementing RNP landing approaches at 46 mid-sized U.S. airports would save airlines at least $65.6 million a year, according to a GE Aviation study released Tuesday at Aviation Week’s NextGen Ahead air traffic management conference. The study, Highways in the Sky, also says that near-term deployment of Required Navigation Performance (RNP) approaches at the 46 airports annually would save 12.9 million gal. of jet fuel, 274.6 million lb. of carbon dioxide, and 747 days of flight time.
It is likely that the FAA reauthorization bill will support efforts to set up a fund for NextGen equipage using private capital, according to a senior Senate staffer.
Ontario is proposing to supply up to 1.3 million tons of timber a year to Rentech for biofuel production in a boost to commercialize the large-scale production of renewable jet fuels.
Emirates will not launch an initial public offering (IPO) this year or next, according to Chairman Sheikh Ahmad bin Saeed Al-Makhtoum. “There is no need to do it today and nothing will happen this year and next,” he said at the Emirates annual news conference in Dubai on Tuesday. The carrier also deferred its plans for a bond offering “because we don’t need the money and the price did not suit us.” Emirates has cash reserves of $4.4 billion.
