China Eastern Airlines, in its latest attempt to avoid falling under the control of Air China, is trying to call a second shareholder meeting to consider a proposed tie-up with Singapore Airlines and that Southeast Asian company’s major shareholder, Temasek Holdings. The first meeting, on Jan. 8, rejected the Singaporean offer, whose value had been overtaken by the market price of the shares and a higher bid from Air China’s parent, China National Aviation Corp.
Delta is opposing United’s bid to win the remaining designation for the Los Angeles-San Jose del Cabo (Mexico) route and urging the U.S. Transportation Dept. to examine its forthcoming application against United’s in a comparative selection proceeding. Only three designations are available for the highly desirable route — the Mexican locale is a favorite destination among Southern Californians. American, Alaska and Frontier currently hold the designations, but United says Frontier didn’t load schedules for the route beyond April 13.
AirAsiaX, a new long-haul budget offshoot of Malaysian no-frills carrier AirAsia Bhd., is assessing Melbourne and Newcastle as its next Australian destinations, following its start of Airbus A330-300 flights between Gold Coast and Kuala Lumpur in November. Traffic is almost evenly split on the Gold Coast route, with 48% of passengers from Australia and 52% from Southeast Asia. December and January loads averaged 80%, says AirAsiaX. The airline plans to introduce one Australian destination a year over five years, including Gold Coast.
China projects to build a large commercial aircraft with more than 150 seats that will cost CNY50 billion to CNY60 billion (US$6.9 billion-US$8.3 billion) to develop. The company that will handle the project, to be set up by March, will stand apart from China’s current two main aircraft groups, Avic I and Avic II, the latest financial details show.
JetBlue yesterday announced two new routes from Boston, to Chicago O’Hare and New Orleans. Daily nonstops will begin May 1. This will give the airline 30 destinations from Boston. JetBlue also said it will add another Puerto Rico flight from May 1, introducing a second daily flight on its Orlando-Aguadilla route.
Airports operator BAA has about one year of liquidity left, and with little ability to defer capital spending, it is imperative that the company secures additional funding in the near future, says a JP Morgan report. As a result, analyst Olek Keenan has given BAA an underweight rating. He noted that BAA parent Ferrovial wants to refinance the airports operator to take out the bridge facilities and secure long-term, low-cost funding.
Romano Prodi’s departing Center-left government claims it has enough leeway to finish off the privatization of Alitalia and conclude talks with Air France-KLM, but premature elections could ruin the process. If the Prodi administration stays in place as a caretaker authority, “the privatization process and talks with Air France-KLM can continue,” said exiting Transport Minister Alesandro Bianchi. “In fact, it would be difficult and unreasonable to stop them,” he added.
Air France’s subsidiary Servair bought a 25% stake in Nanland Catering, China Southern’s catering unit. The two sides did not disclose financial details. Air France will manage Nanland on behalf of China Southern. The Chinese carrier retains a 55% stake in the unit, with Sharpland Investments controlling the rest. Air France said that the two carriers are continuing talks about a possible cargo joint venture. China Southern joined the Air France-led SkyTeam alliance in late 2007.
The House Transportation and Infrastructure Committee this week reinforced its opposition to airline consolidation. Aviation subcommittee Chair Rep. Jerry Costello, D-Ill. said at a news conference that airline consolidation will be on the Transportation Committee’s radar screen this year. He noted the subcommittee will “examine and investigate” any mergers that “develop beyond rumor and discussion.”
Boeing is continuing to count the financial cost of the delays in the 787 program, but the manufacturer doesn’t believe it will be damaged by the looming U.S. economic slowdown. Despite seeing impressive profit growth for the fourth quarter and full-year 2007, Boeing executives yesterday admitted the 787 delays will hurt financially this year. The company dropped its revenue guidance for 2008 to $67 billion-$68 billion, down about $500 million from earlier estimates.
Boeing officially began assembly work yesterday on the first 777 freighter, the sixth major model in the twinjet family, with the start of fabrication of one of the main wing spars now ‘loaded’ onto a production tool.
The European Commission mid-year is expected to name a system architect to help it implement the SESAR future air traffic management system for Europe. Bids are due next month, says Airbus Senior VP Eric Stefanello.
Mexicana has started four weekly non-stop flights from Mexico City to Calgary, the fourth destination it serves in Canada besides Vancouver, Toronto and Montreal. Airbus A319 aircraft configured for 12 in business and 108 in economy class are being used. Mexicana’s Isaac Volin stressed the airline’s impressive growth in Canada, source and destination of major business and leisure flows for Mexico. Calgary Airport President Garth Atkinson, meanwhile, said this new link would contribute substantially to more trade and travel between the two countries.
Air Canada Jazz this week took delivery of a second Bombardier Dash 8-300 aircraft for its charter operation. The aircraft will enter service in March 2008.
German low-fare and leisure carriers Germanwings and TUIfly are likely to merge in the coming months, forming a second large low-fare conglomerate in Germany. Parent companies Lufthansa and TUI this week signed a Memorandum of Understanding. The deal is subject to regulatory approval and due diligence.
The European Regions Airline Association and Airports Council International-EUROPE are working together to persuade Eurocontrol to endorse the policy of using continuous descent approaches (CDAs) at as many airports as possible because of the practice’s beneficial effects on the environment and flight safety.
Mesa has given the U.S. Transportation Dept. end dates for several of Air Midwest’s Essential Air Service markets, a sign Mesa is forging ahead with plans to sell the airline (DAILY, Jan. 18). Air Midwest on April 20 will terminate service in Grand Island and McCook, Neb.; Columbia/Jefferson City, Joplin and Kirksville, Mo.; El Dorado, Jonesboro, Harrison and Hot Springs, Ark.; and in Manhattan/Fort Riley and Salina, Kan.
LiveTV scored a major coup Jan. 29 when it signed up Continental, which is the company’s largest customer yet for its seat-back live television product. Continental plans to introduce the service beginning January 2009, on its New Generation Boeing 737s and its 757-300s. Through DIRECTV, Continental will offer 36 live channels including several big-name channels. The airline will offer the service free to first class passengers, and will allow access to economy class for a $6 access fee.
SAS is introducing biometrics on its domestic network in Sweden to facilitate baggage security checks (DAILY, Dec. 7). Passengers will be offered the opportunity to give their fingerprints at check-in and again upon boarding the aircraft. “The aim of the biometric solution is to ensure that the person checking in the baggage is also the one boarding the aircraft, but in a smoother manner than today,” said SAS Sweden. The information concerning the fingerprint will be erased at the end of the flight, the company stressed.
Era Corp. — a major player in the automatic dependent-surveillance broadcast (ADS-B) industry — is continuing to add big names from the ATC community to its board and management.
