USA 3000 won a U.S. Transportation Dept. exemption to operate service in the St. Louis-Puerto Vallarta market (DAILY, June 27). The carrier plans to launch the flights on Dec. 16, operating an Airbus A320 Saturday-only service year round [OST-2006-25177].
American yesterday asked the U.S. Transportation Dept. for permission to launch a Dallas/Fort Worth-Beijing route next year, but the airline will face strong competition for the China frequency.
The European Commission yesterday approved a Paris-based joint venture combining caterers Gate Gourmet and LSG Sky Chefs France. The proposed joint venture and Air France's subsidiary Servair are the only two major caterers in the Paris airport system, the EC said, but "recent new entrants exert competitive pressure on the two market leaders," said the European Union's competition watchdog. The new competitors also "seem to indicate low barriers to market entry" in the catering business at Paris airports, added the EC.
WestJet plans to lease four Boeing 737s from Singapore Aircraft Leasing Enterprise (SALE) starting in November 2007 with the delivery of a single -700. One -800 and two additional -700s will follow when the airline takes deliveries of the planes in the first and second quarter of 2008. Terms of the deal also give WestJet the flexibility to take three additional -700s and one -800 in 2009, and convert -700s into -800s. WestJet's current fleet comprises 57 planes, and the Airclaims database shows the airline has 15 planes on firm order with Boeing.
Love Terminal Partners LLC and Virginia Aerospace, which own the vacant Legend Airlines terminal at Dallas Love Field, have filed suit against the parties that negotiated the recent deal to phase out the Wright Amendment.
The European Commission yesterday cleared a EUR67 million British state aid package to finance a Rolls-Royce-led research and development project aimed at developing cleaner, lighter and quieter aircraft engines. "I am pleased to approve aid which promotes research, especially if it helps to improve the environmental performance of aircraft engines," said EU Competition Commissioner Neelie Kroes. The project seeks "to develop technologies that would enable meeting stricter environmental standards and reduce ownership costs," the EC said.
Warbelow's will continue to operate essential air service at Minto and Manley Hot Springs, Alaska, after Sept. 1, as it was the only carrier to submit a proposal for the flying to the U.S. Transportation Dept. Warbelow's will receive $65,808 in annual subsidies from Sept. 1 through Aug. 31, 2008, to connect the communities to Fairbanks with three-seat Cessna 206s or 207s [OST-2004-17563].
Continental yesterday reported a $198 million second quarter profit -- nearly double its 2005 earnings -- with the industry-wide trend of revenue improvement offsetting costs that were slightly higher than forecast.
Goldcare, Boeing's lifecycle maintenance program for the 787, signed its first supplier and maintenance partners, but it may not see a first buyer from among the 29 customers that have placed 407 orders and commitments for another six to 12 months. Hamilton Sundstrand and Smiths Aerospace are the first 787 suppliers to agree to be after-market service providers. SR Technics will be the first maintenance, repair and overhaul (MRO) center.
JetBlue scored a significant short-term victory yesterday in its battle to fend off a large union attempting to organize at the carrier when the National Mediation Board dismissed a petition filed by the International Association of Machinists and Aerospace Workers.
House aviation subcommittee Chair John Mica (R-Fla.) wants to prohibit airports from using federal money to upgrade their facilities to accommodate the Airbus A380 unless and until a U.S. passenger carrier buys the super jumbo.
Northwest yesterday agreed on a tentative contract with its flight simulator technicians, the last group negotiating with management; the technicians are represented by the International Association of Machinists and Aerospace Workers.
United this week became the ninth Star Alliance member airline to let passengers redeem miles or points from their United accounts for one-class upgrades on scheduled flights operated by other participating Star member carriers.
Requirements that U.S. airports, and carriers flying between the U.S. and Haiti, must advise passengers bound for the Caribbean nation about security risks at Port-au-Prince Airport are no longer in effect, the Dept. of Homeland Security announced this week.
Northwest yesterday asked the U.S. Bankruptcy Court to approve a new deal that would let the carrier refinance more than $1 billion of its existing bank obligations and give it access to new liquidity.
Airbus marked the third day of the Farnborough Air Show with four orders totaling 61 aircraft, making up for a relatively slow start to the show in terms of new order announcements. The largest contract was signed by AirAsia, which ordered 40 A320s with options for a further 30. This brings AirAsia's total A320 order to 100, in addition to the seven of this type the carrier already operates. All of the A320s will be fitted with 180 seats, and will eventually replace the carrier's Boeing 737-300 fleet.
Virgin Blue picked SR Technics to maintain components for its Boeing 737-700s/800s under a three-year deal the MRO values at more than 40 million. SR Technics plans to manage about 600 component part numbers for the airline.
Finmeccanica's involvement in Sukhoi's SuperJet regional jet program could result not only in a cash injection, but also the rollout of a new SuperJet modification.
UPS has selected the GP7200 engine to power its fleet of 10 Airbus A380 freighters, the General Electric-Pratt & Whitney Engine Alliance announced this week. UPS expects to begin taking delivery of its A380s in 2009. The express giant holds options on 10 additional A380s.
Ukrainian company Antonov Design Bureau plans to introduce a ramp cargo version of the Antonov An-148 regional jet. The first cargo modification, designated An-148T, should be delivered within two to three years. It is designed to carry up to 20 tons of cargo and will be able to accommodate a sea container, Antonov says.
After more than doubling its quarterly net income to $333 million, Southwest is tapping the used aircraft market for Boeing 737-700s to fulfill what CEO Gary Kelly described as "tremendous opportunities in the near term to grow revenue."
Lloyd Aereo Boliviano (LAB) got another last-minute reprieve last week as workers managed to pay a $75,000 installment to insurance company Bisa International, but another debt stands to jeopardize worker efforts to keep the airline together. "We did it through the company's inner human resources; we didn't ask for help from anyone; we didn't sell any assets. It was done by supporting the airline through sheer hard work," labor leader Jimmy Issa said. Had the installment gone unpaid, LAB would have faced grounding over lack of insurance coverage.
Sydney Airport parent Southern Cross Airports Corp. Holdings today posted a 6.1% hike in earnings of $A525.6 million (US$393.3 million) for the fiscal year ended June 30, 2006. Total revenue grew ahead of passenger growth at 6.5% from the previous year, based on improved yields from all commercial businesses. A rise in operating expenses of 7.6% over the year was blamed on a significant increase in security costs.
