U.S. efforts to keep shoulder-fired missiles from being used against international aviation will be led by a veteran national security official, Lincoln Bloomfield Jr. More than 24,000 of the missiles, known as man portable air defense systems, have been destroyed since 2003 through the efforts of the U.S. State Dept. working with 22 countries from Afghanistan to Nicaragua. Bloomfield will head an interagency task force that includes the State, Defense and Homeland Security departments.
Air France is introducing a new cabin, as it takes delivery of its new Airbus A320 family aircraft. The cabin features new color schemes, larger bins and remodeled ceiling and lighting. The cabin, which Air France says offers passengers more space, will initially be fitted to six aircraft to be delivered this year.
Southwest Airlines has been downgraded to ‘A-’ and given a negative outlook by debt-watcher Fitch Ratings after the carrier’s board authorized a $500 million stock buyback. The buyback reflects the expectation that an increasingly fragile U.S. airline industry operating environment over the next few quarters will likely contribute to a modest weakening of Southwest’s credit profile this year, said Fitch in a report.
A consultation on the framework and options for price regulation of London Stansted Airport has been released by the U.K.’s Civil Aviation Authority (CAA) following a decision by the Dept. for Transport to keep price caps in place at the facility. The CAA’s review will lead to new price caps at London Stansted, effective April 1, 2009. The agency is considering five options: augmented building block; legacy price cap; terminal development tendering; market-led price cap; and precautionary price cap.
Airbus’ CFO Hans-Peter Ring plans to resign and focus on his position as CFO at Airbus parent EADS. Ring is expected to be replaced by Harald Wilhelm, the company’s chief controlling officer. Ring became CFO at Airbus in late 2006, when Louis Gallois started to serve as joint CEO of Airbus and EADS. Gallois has dropped his Airbus role to focus on the parent, while Thomas Enders is currently leading the group’s biggest subsidiary. Airbus did not comment initially on why Ring took the step. The decision has to be approved by the EADS board before being implemented.
Some 4.1 million international visitors traveled to the U.S. in October 2007, up 15% from October 2006, reported the U.S. Commerce Dept. Those visitors spent $11.1 billion during the month, 21% more than was spent in October 2006. Spending for the first 10 months of 2007, meanwhile, was up 13% to $100.4 billion. Arrivals through October 2007 jumped 10% from October 2006.
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An investment fund with a 6.25% share of common stock in ExpressJet said it believes the branded flying is behind the decline in the company’s stock, and in a letter to ExpressJet CEO Jim Ream pressed for a return to the “bread and butter” of fixed price and pro-rate flying for other carriers. The letter to Ream from Hayman Capital Master Fund’s adviser, J. Kyle Bass, was dated for Jan. 22. The letter is also on file with the Securities and Exchange Commission.
Emirates Airlines senior management is against an initial public offering of the fast-growing airline, saying, “We are frightened about anything that might interfere with the smooth way in which we are able to do business.” There are not many good reasons for going for an IPO, President Tim Clark said. “We certainly don’t need the cash.” Chairman Sheikh Ahmad bin Said al-Makhtoum said last week that the sale of a 30% stake in the airline is under consideration.
Hong Kong Airlines, a rapidly expanding affiliate of Hainan Airlines, has chosen Rolls-Royce Trent 700s to power 20 Airbus A330s it has on order, extending the engine company’s stranglehold on the Chinese market for that Airbus type. Rolls-Royce values the order at $1.2 billion. Deliveries will begin in 2010. All 125 A330s in service or on order for Chinese mainland and Hong Kong carriers have selected the Trent 700, says the engine maker, which also claims a 50% market share on the A330, whose strong recent sales have surprised even Airbus.
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The European Commission proposes broad changes to the emissions trading scheme, including instituting a single European Union-wide cap, rather than the current system based on individual member states’ National Allocation Plans. The change would create an EU-wide cap on greenhouse gas emissions, EC President Jose Manuel Barroso announced this week. This cap would then decrease along a linear scale with the aim of reaching a 20% reduction in GHG emissions by 2020. NAPs are to be phased out by the end of the second trading period, or by 2012.
US Airways executives say all indicators are pointing to a financially tough 2008, when its fuel expenses are likely to cost $800 million more than they did last year.
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American this week asked the D.C. Circuit Court of Appeals to review U.S. Transportation Dept. orders that put seven of the carrier’s U.S.-Colombia frequencies in issue for reallocation in the 2007/2008 U.S.-Colombia Frequency Allocation Proceeding. American in December asked DOT to review its decision to include the frequencies in the proceeding (DAILY, Dec. 10) but the department ultimately denied the petition for review (DAILY, Jan. 4).
US Airways is taking a $99 million, one-time financial hit from expenses related to the recent change in the mandatory retirement age for pilots from 60 to 65. US Airways’ “East” pilots’ contract specifies that the airline must pay long-term disability until its pilots are 65. United, meanwhile, noted in its release of fourth-quarter results that the retirement age change is “a wash” financially because the cost to train new pilots and bring them up through the ranks is equal to the higher salaries that will now be paid for an extra five years.
Aviacsa signed a multi-year distribution contract to provide full content to Sabre. By engaging Sabre, an established GDS in the Latin American market, Aviacsa hopes to supplement its direct distribution efforts and tap into the corporate market, said Daniel Martinez, chief commercial officer. More than 380 airlines have full-content marketing agreements with Sabre, the GDS says.
Carnival week, one the busiest air travel periods in Brazil, falls this year from Jan. 30 to Feb. 6, and government regulators are doubling efforts to avoid congested airports and stranded passengers.
American this week said it achieved its goal of generating at least $150 million in extra value through its Kansas City MRO base last year, putting the plant on course to contribute a stand-alone profit to the company. The base generated $152.5 million through productivity improvements, cost reductions and new revenue. The goal was set in February 2006 by a joint team representing American management and the Transport Workers Union. The second part of the goal is to turn the base from a “cost center” to a “profit center.”
Aerolineas Argentinas (AR), its unions and the Argentine Ministry of Labor this week began talks aimed at establishing a permanent, government-supervised negotiating panel at the airline that would settle problems before workers resort to force (DAILY, Jan. 24.)
U.K. Air Accidents Investigation Branch inspectors are examining the fuel system of the British Airways Boeing 777-200ER which crash-landed at London Heathrow Airport last week after updating its preliminary findings to say that both engines did briefly produce some thrust during the approach.
