High fuel costs are hindering plans by Ace Aviation Holdings to sell its Air Canada unit although this will not affect the parent company’s plan to dissolve. ACE Aviation has already sold most of its interests in its other units, which include frequent flyer program Aeroplan, MRO provider Air Canada Technical Services, and Jazz Air. However, a weak share price and now high fuel costs have stalled the sale of ACE Aviation’s largest asset, flag carrier Air Canada.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing.) MAY 13 — European Aviation Club luncheon featuring John R. Byerly, Deputy Assistant Secretary for Transportation Affairs, Department of State, Hotel Bristol Stephanie, Brussels, e-mail: [email protected] MAY 19–20 — Airport Board Members and Commissioners Annual Conference, Hyatt Regency Scottsdale Resort & Spa, Gainey Ranch, Scottsdale, Ariz., 480-444-1234, http://www.aci-na.org
Star Alliance carrier Thai Airways on May 15 will begin code sharing on Royal Brunei Airlines’ daily service between Bangkok and the Sultanate’s capital Bandar Seri Begawan. “The code-share agreement between Thai and Royal Brunei Airlines signifies the beginning of network cooperation between the two carriers,” said Thai Executive VP for Commercial Pandit Chanapai. Royal Brunei, which is not affiliated with any airline alliance, operates Airbus narrowbodies and Boeing 767s on the code-share city-pair.
Boeing and the International Association of Machinists and Aerospace Workers union on May 7 opened a new round of labor contract negotiations. The talks, which will cover more than 26,000 employees based largely in Washington, Oregon, and Kansas, are expected to result in a new contract by September 4, said Boeing in a statement. The manufacturer is also set to negotiate a contract with its second-largest union, the Society of Professional Engineering Employees in Aerospace, later this year.
Canadian manufacturer CAE has unveiled the first five full flight simulator (FFS) sales of its new financial year, which started April 1. Under the new deals, Lufthansa Flight Training (LFT) has ordered a Boeing 777-200 long range freighter FFS, leasing company Flight Training Finance (FTF) a Boeing 757 simulator which will be used by Icelandair, and Swiss Aviation Training an Embraer 190 FFS. Zhuhai Flight Training Center, a joint venture between CAE and China Southern Airlines, has also ordered two Airbus A320 simulators.
Despite the poor service experienced by passengers at London Heathrow’s Terminal 5 during its opening days, the facility is back on track, said BAA Chief Executive Colin Marshall.
A former Qantas executive could be the first person jailed for participating in a cargo price-fixing conspiracy that has already seen giants like British Airways, Japan Airlines and Korean Air pay millions of dollars in fines.
Boeing confirmed a follow-on order by Asiana Airlines for two 777-200ERs (DAILY, May 6). The Korean carrier’s order, which has a list value of US$438 million, lets the airline substitute the -200ERs for the larger 777-300ER. Boeing’s latest order update also shows new orders for four 777s from El Al and an order for six 737s by Oman Air. Boeing also added 20 new 737 orders under its unidentified owner listing, and has moved 30 737s recently ordered by the Iraqi government from the same list to a confirmed booking. As of May 6, Boeing had 378 orders for 2008.
One in three consumers booking a plane ticket online is being ripped off or misled and confused, the European Union’s consumer commissioner said May 8 in Brussels, and this is “unacceptable.”
Increased demand and a more profitable product line was cited yesterday (Wednesday May 7) by Embraer as the chief drivers for a more than three-fold increase in its first quarter net income, which rose to US$85 million from the US$26.2 million net profit reported in the first three months of 2007.
The development of Bombardier’s 100-seat CRJ1000 regional jet is progressing toward a design freeze in June and the first flight of a prototype in July. Crucial design reviews have already been completed for the aircraft’s rolling stock and brake control, command-by-wire rudder, spoilers, avionics, pitch trim and horizontal stabilizer systems, and the program’s joint definition phase is scheduled for completion by the end of this month, the Canadian manufacturer also says in it latest edition of its Regional Update magazine.
Some 28.4% of flights operated by U.S. airlines in March were delayed, show figures released by the U.S. Transportation Dept. this week. The 19 reporting carriers logged a 71.6% on-time arrival rate in March, up from the 68.6% rate recorded in February but down from the 73.3% rate reported for March 2007. Late arriving aircraft were behind 8.87% of all delays, and Bureau of Transportation Statistics figures for March show nearly one of every four flights at the country’s top airports departed late.
Embraer believes the 50-seat regional jet will always have a role to play in the U.S. air transport market, despite higher fuel costs that are racheting up the operating cost of the aircraft. The airframer forecasts the 275 30- to 60-seat aircraft will be delivered through 2017. Executive VP-Airline Market Mauro Kern noted the forecast will likely be revised downward but that there will still be a role for aircraft of that size.
JetBlue launched a new branding campaign this week under the theme “Happy Jetting,” which it said was created in partnership with JWT New York to “rename and refocus on the airline’s strategy of delivering a ‘true value’ experience for every customer.” The campaign replaces the word “flying” with “jetting” to differentiate the JetBlue experience, noting JetBlue features, such as leather seats, beyond-industry-standard leg room, and free live television, XM Satellite Radio and unlimited snacks.
An overall improved financial picture and the addition of new service at San Francisco International Airport has caused debt watcher Fitch Ratings to assign an A rating and positive outlook on $426.7 million in bonds issued by the city’s airport commission. Fitch lauded airport management on efforts to improve profitability and the facility’s cost per enplanement, which has fallen from a high of $19.62 in 2003 to $13.60 in 2008.
Southwest May 7 announced more new additions to its Denver service starting this summer, just two weeks after its previously announced expansion. On Aug. 4, the airline will begin twice-daily service to Sacramento and daily service to New Orleans and Fort Lauderdale/Hollywood. It also will add a seventh daily nonstop to Phoenix.
Xiamen Airport in southeastern China is building a dedicated budget terminal while seeking more business from low-cost carriers. The airport, which is already unusually popular with such carriers, has begun to convert facilities at its cargo terminal to a budget passenger terminal, with completion due this year. The operating company, Xiamen International Airport Co., says it is encouraging budget airlines from Indonesia, Philippines and Australia to fly there. The Indonesian and Australian targets are presumably Lion Air and the Qantas group’s Jetstar.
The financial benefits of Air Canada’s costing program and buoyant sales growth were undermined in the first quarter by a volatile oil market and a C$125 million (US$123 million) one-time provision for fines expected to arise from an international cargo price-fixing probe, new quarterly results show.
Auckland International Airport Ltd.’s (AIAL) potentially weaker financial profile for 2008-2009 and uncertainty on longer-term risk appetite and capital structure — including having a cornerstone investor — has caused debt watcher Standard & Poor’s to revise its outlook to negative.
AirTran’s expansion in Milwaukee is taking off this month, as the carrier begins its previously announced service additions. The flight expansion began May 3 with daily service to Washington National. On May 6 it started three-times-daily service to New York LaGuardia and seasonal summer service to Los Angeles (twice daily), Seattle (daily) and San Francisco (daily). On May 21 it will add daily service to Las Vegas and seasonal daily service to San Diego and seasonal twice-daily service to Boston.
Japan’s two major airlines report that traffic totals for the traditional “golden week” holiday period were down compared with last year, due partly to the fragmented nature of the holiday period.
United on May 8 unveiled a senior management structure that creates a new position to govern corporate policy, labor relations, human resources, technology, safety and security and customer satisfaction. The management reshuffle sees current Chief Operating Officer Peter MacDonald, who has worked at United for 39 years, assume the newly created role of chief administrative officer. In turn, United’s chief revenue officer, John Tague, is named COO; his former position is now eliminated.
