By Steve Lott Eclat Analyst Aaron Taylor While anticipation is growing for U.S. and European low-cost carriers to start transatlantic operations, it's actually traditional U.S. network carriers that are grabbing the role of international LCCs thanks to dramatic cost reductions, a new analysis shows.
China Southern will take of 150 Airbus A320s ordered by China Aviation Import Export Supplies Corp. last December (DAILY, Dec. 6). The order was to be spread among several Chinese carriers. China Southern will take delivery of the aircraft from January 2009 through to November 2010. Twenty-four A320s, meanwhile, will be delivered to Chinese flag carrier Air China from March through to December 2010.
The European Commission on July 19 is expected to unveil draft legislation aimed at forcing airlines to advertise full-ticket prices, instead of an attractive base fare plus a string of supplements.
While top Airbus and EADS management are holding firm, for now, to their latest estimate that A380 delays will mean delivery of only nine aircraft in 2007, an Airbus "Recovery Task Force" working through the summer could make changes that would lead to further slippages.
United confirmed that it has selected downtown Chicago as the new site of its corporate headquarters. The carrier said it will next year move 350 management employees to the new headquarters at 77 Wacker Drive. United also said it will consolidate several of its suburban Chicago facilities, and will create an operations center at its Elk Grove site. Airline sources earlier told The DAILY that United was leaning toward the downtown Chicago move (DAILY, July 17).
With no new aircraft programs to launch at the Farnborough Air Show, Boeing yesterday announced some large orders for its major aircraft families, and more announcements are expected today. Qatar has reportedly ordered 20 777s, previously listed by Boeing as unidentified orders. The Qatar order comprises a mix of -300ERs and -200LRs, with deliveries to begin next year. Qatar was also considering Airbus A340s and A330s in this competition.
US Airways will launch its new service between Washington National Airport and Sarasota/Bradenton Airport (DAILY, June 13) on Aug. 15 but will likely have to tinker with some of its other flights to make its planned schedule work.
Qantas subsidiary Jetstar applied for authority to carry the parent carrier's code on Jetstar's proposed flights to Honolulu from Sydney and Melbourne (DAILY, June 23). Jetstar, which is awaiting approval from the U.S. Transportation Dept. for the services, asked that the code-share authority be awarded "promptly upon the issuance" of the Australia-Hawaii exemption [OST-2006-25396].
Bedeviled by its high-profile troubles on the A380, Airbus points proudly to at least one silver lining -- the company believes it's winning the war for low-cost carrier market share. Airbus Executive VP-Programs Tom Williams says that by his count, the A320 has snared 64% of the 710 single-aisle aircraft on firm order for LCCs in 2004 and 2005, or 455 aircraft, noting that Airbus has picked up 16 new LCC customers versus only three for Boeing.
American says it will install its new "Next Generation Business Class" in its Boeing 767-300 fleet by early 2007, and next year will also install it in the 777 fleet.
Airbus is scrapping its original plans for the new A350 and plans to relaunch the program as a completely new range of aircraft that moves further into Boeing 777's market territory. The company's new President and CEO Christian Streiff stopped short of an outright industrial launch yesterday at the Farnborough Air Show, but he said the launch was scheduled to take place in the first days of October, with development work continuing at the same speed until then.
Tom Enders, co-CEO of Airbus parent EADS, offered during the weekend to welcome a British representative to EADS' board, something the U.K. government wants to see if British Aerospace goes ahead with plans to sell off its 20% stake in Airbus. "We certainly envisage" British representation, he says, but that person can't be linked to BAe.
Embraer won type certification from European aviation authorities for its -195 jet, paving the way for deliveries to FlyBe next month; the nod by the European Aviation Safety Agency (EASA) follows approval from Brazilian authorities on June 30.
Air China is moving to transfer its exemptions and other authority for all-cargo service to Air China as part of China's restructuring of the aviation industry. The move will limit Air China's cargo carriage to combination services only. Air China Cargo submitted to the U.S. Transportation Dept. applications for a foreign air carrier permit and exemption authority for U.S.-China cargo services. Air China, meanwhile, would like its permit and exemption authority amended to reflect the fact that it would only carry cargo and mail on combination flights.
Alaska Airlines last week appointed Tom Kemp its new system chief pilot. Kemp is responsible for the operation of Alaska flights, including leading the airline's 1,500 line pilots and ensuring that flight operations comply with Federal Air Regulations and company policies. He also works with other airline divisions to coordinate policies and procedures that affect aircraft operations.
Northwest last week signed a five-year content distribution deal with Galileo, giving the airline new agreements with all the major global distribution system companies except Amadeus.
Goodrich won new business from EgyptAir through a 10-year aftermarket deal for 17 of the airline's Airbus A320s that the OEM claims could generate $40 million revenue for the company. Terms of the fixed-cost, flight-hour-based deal include Goodrich maintaining the nacelle and thrust reversers on the aircraft, supply EgyptAir extended product warranties and offer on-site support. Maintenance of the components will be completed at Goodrich's service center in Prestwick, Scotland.
Malaysia in a surprise move removed the floor price for domestic routes with immediate effect, giving flag carrier Malaysia Airlines a free hand to determine its fares. With the floor price removed, MAS will be able to compete with low-fare carrier Air Asia on the 22 routes. The move also will let MAS operate three additional routes -- Kuala Lumpur-Tawau, KL-Sandakan and Johor Baru-Kuching -- under new aviation policy that will take effect Aug. 1.
The new negotiating committee formed after Northwest flight attendants opted to switch their union representation to the Association of Flight Attendants-CWA reached a tentative deal with management and avoided having an agreement they previously rejected imposed on union members at the airline.
