Aviation Daily

DoveBid Aviation Equipment

Staff
Virgin Atlantic next year plans to conduct a biofuel demonstration on one of its Boeing 747-400s in cooperation with Boeing and General Electric. Virgin says it will release more details later this year, but adds that the demonstration is aimed at developing "sustainable fuel sources suitable for commercial jet engines and the aviation industry."

The Wings Club

Seabury Airline Planning Group

Jennifer Michels
Amadeus, the Madrid-based GDS, has improved its e-Travel Management solution allowing travel managers to communicate better with employees, using handheld wireless devices and improving the efficiency of the booking process. Amadeus released version 10.1 of the system that allows travel approvers to sanction a trip from a handheld device while away from their desks. The new version improves several travel processes, such as automatic prompts to find out of the employee is following travel management policies.

Staff
Mesaba yesterday officially emerged from bankruptcy and, as expected, was acquired by Northwest as a wholly owned subsidiary. The deal has been in the works since early January, when Northwest reached a tentative deal with Mesaba management and creditors. Mesaba filed for Chapter 11 bankruptcy protection on Oct. 13, 2005.

Lori Ranson
JetBlue is considering making some changes to its cabin offerings, including the possibility of buy-on-board products and letting passengers buy middle seats to block other customers from using them at a reduced price.

Benet Wilson
Aeroports de Paris (ADP) subsidiary ADPi has won the deal to design a new terminal at Kazakhstan's Almaty International Airport. It will take two years to build the new terminal, created after the airport authority revised its master plan in 2006. The glass and wood design will bear the shape of three yurts, traditional tents used by nomadic people in central Asia. The design will allow the addition of new yurts as the airport grows.

Robert Wall
Finnair's stake in Norwegian Air Shuttle could grow to 10% under a deal that also transfers ownership of FlyNordic to Norwegian. Norwegian is to take 100% ownership of FlyNordic. In turn, Finnair receives stocks and options. FlyNordic, which carried 1.2 million passengers last year, is Finnair's Swedish subsidiary and a smaller rival to Norwegian Air Shuttle with its 5.1 million travelers.

William Dennis
Airbus is rejecting rumors that Malaysia Airlines wants to cancel its 2004 order for six A380-800s, and Chief Operating Officer-Customer John Leahy told The DAILY his company and the Malaysian flag carrier are working our the new delivery schedule for the six aircraft. Leahy, however, could not say when the first aircraft would be delivered to the airline. "The delivery dates have to be agreeable to both Airbus and MAS. I am certain MAS has no plans to cancel the order," Leahy said.

Staff
German engine manufacturer MTU Aero Engines said yesterday its first quarter sales rose 12% to EUR640 million (US$873 million). CEO Udo Stark said in a conference call with reporters the increase was mainly due to strong market demand for its MRO offerings. Net profit rose slightly to EUR26.1 million (US$36 million). The company expects its full year profit to rise 15%. Stark, who will step down by yearend, said he will not become a member of MTU's supervisory board.

Adrian Schofield and Jens Flottau
Boeing's 787 program gained enormous ground yesterday with Air Canada deciding to place 23 additional orders and Virgin Atlantic dealing a blow to Airbus by revealing itself as a new 787 customer. Air Canada is still negotiating final terms with Boeing, but the carrier said it will increase its 787 orders from 14 to 37. The 15 Virgin orders had already been listed on the Boeing backlog but were attributed to an unidentified customer.

Lori Ranson
Bombardier continues to build momentum in its large Q400 turboprop orderbook, with North American launch customer Horizon Airlines ordering 15 aircraft, and taking options for 20 more. Recently, Bombardier executives pointed to a strong pipeline of potential orders both in the U.S. an abroad (DAILY, April 2).

Seabury Airline Planning Group

By Adrian Schofield
FAA Administrator Marion Blakey says a new cooperation agreement with the U.S. will help India's aviation industry deal with rapid growth, and she believes a separate safety deal currently being discussed will be an important next step.

Benet Wilson
Of the four remaining communities receiving federal air service grants in fiscal year 2003 polled by The DAILY, one has no service, while the results for the other three were mixed, but positive overall. New Mexico's Taos Consortium received a $1.4 million grant to help address air service issues in a comprehensive manner, according to its original application. The money was spent to attract and subsidize a commuter airline, said Taos Regional Airport Director Mark Fratrick.

Luis Zalamea
Brazil's Chamber of Representatives is weighing a draft bill that seeks to proscribe overbooking by airlines. The legislation comes at a time when institutions and practices, such as air traffic control and bilateral air agreements, are under fire by government regulators and airlines (DAILY, April 23).

By Adrian Schofield
Leasing company Aviation Capital Group yesterday announced it will order 40 new aircraft, comprising mainly narrow bodies and split evenly between Airbus and Boeing. The Boeing portion of the orders includes 15 737s and five 787. These orders were previously attributed to an unidentified customer on Boeing's Web site. The 787s will be the first of this type in the ACG portfolio, while the 737 family has proven to be "an excellent leasing asset," said ACG CEO Stephen Hannahs.

House

Luis Zalamea
Lloyd Aereo Boliviano workers, still struggling for the survival of the airline, (DAILY, April 17), were further distressed by rumors over the weekend that airline President Antonio Chiquie was ready to mortgage their beloved Boeing 767 "Paititi," LAB's flagship and flying symbol.

Neelam Mathews
Aeroflot is expected to use its newly enlarged fleet to expand its presence in India with new flights planned for Kolkata, Bangalore, Amritsar and Ahmedabad from Moscow.

Luis Zalamea
Mexican domestic carrier Aerolitoral, an affiliate of Aeromexico, on May 7 will begin an expansion on Mexico's southern border from the gateway cities in Chiapas to the rest of the country.

Staff
Air France and Qantas are expanding their code-sharing agreement, starting next month. So far, code sharing has been done on service to five Australian cities, with connections through Singapore. Now, the agreement is being extended to cover service to Sydney, Melbourne and Brisbane via Hong Kong. Air France is boosting its Hong Kong service in June, bringing total code-share frequencies between France and Australia to 48, 17 of them through Hong Kong.