Air Wisconsin opted to send all the GE CF34B-3B1 engines powering its 70 CRJ-200s to MTU Maintenance Berlin-Brandenburg after striking a 10-year, $300 million deal with MTU. Profits at MTU Aero Engines for the first half of the year reported earlier this week were EUR55 million (US$69 million), up from EUR17.5 million (US$22 million) for the same time period in 2005.
The U.S. Transportation Dept. dismissed a complaint against American filed by a self-described medical marijuana user who claimed the airline discriminated against his disability by conditioning travel on documentation from his doctors supporting the medicinal use of the drug.
Mesa's earnings fell about 36% to $10.9 million in the fiscal third quarter as the airline faced challenges in its United operation in the Eastern U.S. and transition costs to move 59 regional jets from US Airways to Delta and United.
Standard & Poor's yesterday cut its ratings on JetBlue, including lowering the long-term corporate credit rating to "B" from "B+" and the unsecured debt rating to "CCC+" from "B-," due to the company's "weakened financial profile."
B/E Aerospace's second quarter profits grew $10.3 million to $18.7 million, coinciding with the close of the company's acquisition of Draeger Aerospace, a builder of chemical and gaseous oxygen systems for commercial and military aircraft. Second quarter earnings at B/E increased more than twofold over the $8.4 million the company earned during the same timeframe in 2005. The company's operating revenue grew 46% to $35 million, while operating margin rose to 13%.
Grand Circle Corp., a travel concern composed of Grand Circle Travel and Overseas Adventure Travel, was fined $90,000 by the U.S. Transportation Dept. for failing to spell out the full fares of its air travel packages.
The European Commission has "serious doubts" about the legality of the restrictions imposed by Italy on routes to the Island of Sardinia and plans to launch a formal investigation into the issue. The Italian authorities now have two months to respond to the EC's allegations.
Seven European OEMs signed a letter of intent to endorse the European Commission's "Clean Sky" initiative to develop methods to cut noise and carbon dioxide and nitrous oxide emissions to meet requirements of the Advisory Council for Aeronautics and Research in Europe (ACARE).
Colombian all-cargo carrier Tampa plans to launch a new flight that will operate twice weekly to Los Angeles. A Tampa Boeing 767 freighter will fly from Bogota to Mexico City and Los Angeles and back again. It will carry manufactured goods and general cargo from Bogota to Mexico City and add flowers for the Bogota-Los Angeles segment. On the return trip, it will carry general cargo, Tampa says.
Chalk's Ocean Airways, with the help of Big Sky, will resume scheduled service on Aug. 7, eight months after a December 2005 accident virtually grounded the airline. The Florida-based commuter would resume flights from Fort Lauderdale to Nassau and Bimini through wet-lease operations with Big Sky.
Alaska Air Group yesterday became the latest U.S. carrier to surprise Wall St. with better-than-expected second-quarter earnings, when it reported profit that more than tripled to $55.5 million, excluding special items. Merrill Lynch analyst Michael Linenberg said the quarterly profit was comfortably ahead of the market consensus estimates. The airline saw the same strong revenue gains that other network carriers have experienced, and in addition its cost performance was better than expected, Linenberg said.
Emery Air won its first regional jet heavy maintenance deal after Comair signed a three-year agreement with the MRO covering the carrier's 27 CRJ-700s.
American recently told its pilots union that it wants to exchange early openers to begin the negotiating process for a new contract. Under the current agreement, either side could serve notice after May 1 that it wants to begin negotiations. After the airline exercised that right, American and the Allied Pilots Association now have 60 days to present their early opening positions.
Ryanair complained yesterday that a main baggage belt at London Stansted Airport broke down for seven hours, delaying 37 flights and causing about 1,500 bags to miss flights. The carrier highlighted it was the third day in a row, as well as the fourth consecutive summer that the airport's baggage-handling system has crashed. Ryanair demanded that Stansted operator BAA compensate its passengers for flight delays and missing baggage. The airline also asked that BAA "urgently" fix the baggage belt system at the airport. -LR
Dallas/Fort Worth Airport is taking advantage of the Apple Ipod craze by creating a series of four audio and video Podcasts for passengers on topics including parking and dining options. The Podcasts, in English and Spanish, are free and can be downloaded from the DFW web site or Apple's iTunes music store. They range from 30 seconds to 3.5 minutes.
Honda Motor Co. plans to form a business alliance with Piper Aircraft, Inc. and pursue FAA certification of the HondaJet very light personal and business jet. Satoshi Toshida, senior managing director of Honda, says the company will establish a new organization based in the U.S. to achieve certification in three to four years. He said the twin-engine jet will be built in the U.S., but a location has not been decided.
Atlantic Southeast Airlines applied for authority to carry KLM's code on its Delta Connection services within the U.S. and to Canada, Mexico and Caribbean destinations. ASA would initially carry the KL code on its New York Kennedy-Atlanta flights and also on flights out of Atlanta [OST-2004-19214]. Connection carrier Comair filed for similar authority last month (DAILY, June 22). -ARS
Low-cost carriers (LCC) have strengthened the credit profiles of U.S. airports by spurring passenger growth, which in turn has helped facilities reduce costs, increase revenues and improve the bottom line, according to a new report by Moody's.
House aviation subcommittee Chair John Mica (R-Fla.) this week is expected to introduce a bill that would prohibit federal funds from being used to upgrade airports to accommodate the Airbus A380. Mica believes foreign airlines should pay for airport A380 improvements, since no U.S. carriers have yet ordered the passenger version of the aircraft. He also linked this effort to European subsidies for Airbus aircraft programs (DAILY, July 20).
