BMI plans to order new aircraft for its expanding long-haul operation and to start transatlantic services from London Heathrow Airport. "When we decide what we are going to do and the timing of it, then inevitably more aircraft will follow," CEO Nigel Turner said yesterday. BMI plans to start the new transatlantic routes in March 2008, when the new open-skies regime between the U.S. and the European Union becomes effective.
Although the first aircraft has yet to be delivered, Dassault Aviation management is already planning to expand production of its new very-long-range 7X corporate jet.
Three aerial attacks in the past month -- the latest on April 26 -- by Tamil Tiger rebels on Sri Lanka's Air Force base near the capital Colombo, have led Emirates and Cathay Pacific Airlines to suspend flights to Sri Lanka.
Continental yesterday reported that April's consolidated unit revenue was essentially flat compared with the same month last year, while load factor sank slightly. Mainline unit revenue was up by 0.5%-1.5%, which the airline said was in line with its expectations. Continental believes the demand outlook is strong, with second-quarter load factors keeping pace with last year's record levels.
Senate lawmakers are this week expected to release FAA reauthorization legislation including a new -- but no less controversial -- twist on user fees, and also containing new passenger rights protections. The draft bill proposes a flat fee or "surcharge" of $25 per flight for all aviation system users except piston-engine aircraft or any aircraft operating under visual flight rules. The fee would presumably cover corporate aviation -- which had been excluded from the Administration's earlier user-fee proposal.
A 24-hour cabin staff stoppage will force Alitalia to cancel 356 frequencies out of 711 scheduled today and will cause "serious economic damage to the company," said the ailing Italian airline. Alitalia said the strike, which was called by seven unions, will affect 30,000 passengers and will "seriously endanger" the positive trend in passenger traffic observed since the beginning of the year.
AirUnion, the airline to be created by the merger of five Russian carriers, will be at least 45% state-owned, according to a decree published by Russian President Vladimir Putin. The company is planned to be incorporated in six months and will comprise Kras Air, Sibaviatrans, Domodedovo Airlines, Omskavia and Samara Airlines. It will have a combined fleet of about 80 aircraft.
Worldwide airport traffic rose 7% while freight dropped 0.2% year over year in March, according to statistics released by Airports Council International (ACI). The growth was fueled by an 11% hike in international traffic, followed by a 4% rise in domestic traffic. "Passenger growth is booming in the Middle East, reflecting the impact of airlines that have increased fleets, new airlines operating in the region and the adoption of a new open-skies policy by Kuwait," said ACI in a statement.
Pemco World Air Services yesterday signed a deal to convert three more Boeing 737-300s from passenger to cargo versions for leasing giant International Lease Finance Corp (ILFC). The conversions are covered by options that were part of a modified agreement reached by the two companies in September. Two of the 737s are already owned by ILFC, and the other is managed by the company.
As major U.S. avionics companies, such as Rockwell Collins and Honeywell, enjoy the current uptick in orders and deliveries due to the surge in new aircraft deliveries, the after market is also kicking into high gear. Honeywell Chairman and CEO David Cote told financial analysts last month that "we blew the doors off this quarter." Commercial sales to aircraft manufacturers rose 10%, but the after market was also up 9% as Honeywell's aerospace sector profits rose 14% from the same quarter last year. Honeywell's earnings per share were up 27%.
The Flight Safety Foundation is offering its monthly publication, AeroSafety World, free of charge in a digital format to non-members. Anyone who would like to receive the publication, which offers analysis on safety issues facing the industry, can fill out a subscription form at www.magnetmail.net/actions/ subscriptions_form_FSFWeb.cfm.
Hawaiian Airlines parent company Hawaiian Holdings says it intends to withdraw its common stock from the New York Stock Exchange Arca Inc., formerly the Pacific Exchange, but will continue to list it on the American Stock Exchange.
In the past two months, Grupo TACA, based in El Salvador, launched in Lima its Counterhub program, the most ambitious it has ever undertaken in South America.
Canada and Ireland liberalized air service with an open-skies agreement that takes effect immediately. The open-skies accord, which replaces a 1947 bilateral agreement, allows airlines to provide service between any city in either country. Furthermore, the agreement allows Canadian and Irish carriers to serve third countries from Canada or Ireland, Transport Canada said in a statement. The deal provides "more choices for Canadian passengers, shippers, air carriers and airports," said Lawrence Cannon, Canada's transport minister.
The importance of the foreign control issue could be diminished in the second stage of U.S.-European Union open-skies talks if airlines on both sides of the Atlantic take advantage of greater code sharing, marketing and franchising possibilities created by the accord signed this week, top European officials said.
Jakarta-based Merpati Nusantara Airlines has filed a civil suit against U.S.-based Thirdstone Aircraft Leasing Group (TALG) for alleged breach of contract concerning delivery of two Boeing 737-400s leased by the carrier. According to the airline's corporate secretary, Irvan Harijanto, the suit was filed in a District of Columbia court on April 20. Both parties had been given 30 days to seek an out-of-court settlement.
Thai Airways International plans to increase its five flights a week to Los Angeles and New York to daily services. "Thai expects to gain a great benefit in the future from maintaining the base of passengers in the two routes, given that they are the premium customers," it said in a statement. Meanwhile, starting with the summer 2007 schedule, Thai and Pakistan International Airlines will code share on all flights operated between Pakistan and Thailand.
The U.S. Transportation Dept. on April 27 approved Air China's plan to transfer the authority and exemptions used in its all-cargo operations to Air China Cargo (DAILY, July 18, 2006). Air China Cargo will assume Air China's cargo operations on routes from Beijing, Guangzhou and Shanghai to Chicago, Dallas, Honolulu, Los Angeles, San Francisco, Portland and New York, while Air China will carry only cargo and mail on its combination flights to the U.S. [OST-2006-25383].
