Aviation Daily

By Bradley Perrett
Japan Airlines, starting Dec. 20, will put its code on twice-weekly China Eastern flights between Tokyo and Nanjing, a city of more than 6 million people that serves as the capital of China’s Jiangsu province. The two carriers have code shared since 2002.

Jennifer Michels
JetBlue this week became the first U.S. domestic carrier to offer free inflight email and instant messaging service through a wireless network. Through a partnership with Yahoo!, Research In Motion and LiveTV, it is offering the service initially on one Airbus A320 that has been dubbed BetaBlue. The aircraft, outfitted as a trial aircraft for LiveTV products, took off Monday from New York Kennedy for San Francisco; that particular aircraft will move about the system, most likely on trans-continental flights, a JetBlue spokesman said.

Staff
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By Jens Flottau
SAS Group plans to sell its Spanair subsidiary in the first quarter of 2008, CEO Mats Jansson said at the Star Alliance Chief Executive Board meeting yesterday in Beijing. SAS is talking to “a lot of potential buyers.” In Jansson’s view, Spanair is “fundamentally a very good company” in a market with above average growth rates. Jansson does not see strategic questions coming up for Spanair, even if Star Alliance partner Lufthansa is successful in buying rival Iberia in the medium term.

Kazuki Shiibashi
Japan Airlines is expanding a program of engine washing that is saving fuel and carbon dioxide emissions. The airline is now washing the engines of 135 aircraft twice a year to improve fuel efficiency, which it says rises 1% after each wash and then degrades until the next one. It began the program in 2005 and last year washed the engines of 38 aircraft. Engines were previously washed only occasionally, and not specifically to improve their efficiency. The procedure is done with converted de-icing vehicles and takes up to five hours.

Luis Zalamea
Argentina President Nestor Kirchner, in one of his last formal acts before leaving office, kept his campaign promise and signed a new contract with concessionary Aeropuertos Argentina 2000 (AA2000), which develops and manages 32 airports throughout the country.

The White House is expected to issue its plan for solving delay and congestion problems at New York’s three airports next week, probably Tuesday. U.S. Transportation Dept. Secretary Mary Peters is mulling the recommendations of an Aviation Rulemaking Committee. DOT favors a system of operational caps and slot auctions.

Madhu Unnikrishnan
The House late Tuesday night voted unanimously to approve a bill to raise the pilot retirement age from 60 to 65, and the Senate was expected to vote on the measure last night as The DAILY went to press or today. The House voted 390-0 to approve H.R. 4343, “the Fair Treatment for Experience Pilots Act,” sponsored by House Transportation Committee Chair James Oberstar (D-Minn.) and co-sponsored by Ranking Member John Mica (R-Fla.).

Robert Wall
Lufthansa is growing its China network with the addition of Nanjing and Shenyang to its current destinations there (Beijing, Shanghai, and Guangzhou). Nanjing will receive service from Frankfurt, starting March 31, while Shenyang flights will depart Munich, starting June 8. Lufthansa will use three-class, 221-seat Airbus A340-300s on the routes being added in the summer. The decision brings to 58 the number of Lufthansa weekly flights to China.

By Joe Anselmo
Morgan Stanley research analyst Heidi Wood lowered her rating on Boeing’s stock to “equal-weight” — the equivalent of neutral — one day after a yearend briefing on the 787 aircraft’s development status.

Madhu Unnikrishnan
Reacting to a Government Accountability Office Report issued last week, Sen. Ted Stevens (R-Alaska), vice chair of the Senate Commerce Committee, yesterday urged FAA to update the National Runway Safety Plan. “It is crucial that the FAA seriously consider and act upon the recommendations of the GAO report,” Stevens said. The GAO report faulted FAA’s approaches to reducing runway incursions and increasing ramp safety (DAILY, Dec. 6).

By Jens Flottau
The Star Alliance Chief Executives Board will decide whether to add its 20th member tomorrow when the board votes on inviting a carrier from India.

By Adrian Schofield
IATA yesterday cut its 2008 industry profit outlook for the second time in three months mainly because of wider economic uncertainty, and the airline association now believes profits will drop slightly year over year to $5 billion.

Jennifer Michels
Regional jets may be in high demand these days, but the market for turboprops is still strong, according to Forecast International. The firm projects that 3,800 regional aircraft will be produced by 2016, including 2,539 regional jets and 1,261 turboprops. The study estimates that the market value for the aircraft will total $99.7 billion.

Martial Tardy
The European parliament voted in favor of the creation of a European public-private Joint Technology Initiative (JTI) for research into environmentally friendly technologies for civil air transport, yesterday in Strasbourg. The European Union intends to contribute EUR 800 million to the undertaking, dubbed "Clean Sky", which is embedded into the EU's 2007-2013 research framework program (DAILY, June 18). The JTI, which is scheduled to be operational next year, should be headquartered in Brussels, said the Parliament.

Benet Wilson
The timing and direction of moves toward industry consolidation will likely remain the issue of greatest interest to creditors during 2008, said debt watcher Fitch Ratings. "Despite recent public pressure exercised by shareholders to accelerate merger discussions among some legacy carriers -- notably United, Delta and/or Northwest -- airline management teams will likely remain circumspect in evaluating the financial implications of various airline combinations," said Fitch in a report.

Jennifer Michels
United's decision to distribute $250 million to its shareholders has its pilots union declaring war, and calling the move "ludicrous." United said recently in statements to investors that it will be doing everything possible to maximize shareholder value, and then on Friday it announced it had approved a special distribution of $2.15 per share (DAILY, Dec. 10).

Staff
Delta and Air France notified the U.S. Transportation Dept. Monday of plans to develop further operations under their blanket code-share authority. Starting about June 3, Delta will display Air France's code on service between Atlanta and Stockholm, Sweden, a route opened up for Air France by provisions of the new U.S.-European Union open skies agreement, which takes effect next March. At about the same time, Delta and its regional affiliates Comair and Atlantic Southeast will begin code-share service between Air France's U.S. gateways and Spokane, Wash.

Michael Mecham
While it works on details needed to get its first 787 into the air and the flight test program completed, Boeing's suppliers have begun producing ship sets for aircraft No. 7 - the first to be delivered to launch customer All Nippon Airways late next year.

Robert Wall
As part of a state visit by Libyan President Col. Muammar al-Gaddafi, two of the country's carriers have increased orders for Airbus aircraft. Libyan Airlines signed a first contract for four A350-800s, four A330-200s, and seven A320s. The deal was previously announced, but only hits the order books now. The A350s are to be handed over in 2017.

Oliver Wyman

John M. Doyle
The House of Representatives yesterday passed legislation that would require the Transportation Security Administration (TSA) to begin a pilot program for testing the feasibility of screening airport workers with access to secure areas. The measure, introduced by Rep. Nita Lowey (D-N.Y.), will set up pilot tests at seven airports yet to be named. A similar bill is pending in the Senate, and TSA is moving forward with industry groups to develop ways to screen workers (DAILY, Dec. 11). [email protected]

Luis Zalamea
Mexico's civil aviation regulator (DGAC) CEO Gilberto Lopez Meyer, speaking at last week's International Civil Aviation Day, said domestic passenger traffic will grow by 30% in the near future -- from 22%-23% in previous years -- due mainly to consolidation of low-cost, low-fare carriers now competing in the market. Loretta Martin, ICAO's director for the region, said traffic growth forecasts for Mexico significantly exceed worldwide estimates of 4.6% per year through 2025.

By Adrian Schofield
CIT Aerospace this week announced a deal under which the leasing company will buy 15 737-800s from Ryanair. Deliveries of the aircraft will begin in 2008 and end in 2009. All the aircraft are committed to future leases, and CIT said they will help it "continue to meet customer demand" for -800s.