Aviation Daily

By Adrian Schofield
Finnair yesterday signed a contract with Airbus for nine A350-900 orders, to be delivered beginning in 2012, and also took options for four more A350s. The A350 order was first announced by Finnair late last year (DAILY, Dec. 8). The aircraft will be powered by Rolls-Royce Trent 1700 engines and will seat 314 passengers in a two-class configuration. This brings the A350's firm order and commitment total to 182 aircraft from 14 customers, including 100 firm orders.

Lori Ranson
The National Transportation Safety Board late yesterday issued four urgent recommendations targeted to Bombardier CRJ-200s after seven fires were reported onboard the planes. Six of the fires occurred during the past six months. The fires stem from surface material on switching devices for electrical power pushed from electrical generators mounted on the aircraft's engines. Four fires resulted in the temporary loss of all Electronic Flight Information System (EFIS) displays, increasing pilot workload during an emergency situation, NTSB said.

Lori Ranson
Bombardier reversed steep losses for its fiscal year, but the company couldn't prevent a drop in revenues after a slide in regional aircraft deliveries and slower business in the U.K and Germany caused revenues to slide. Profits for the fiscal year ending in January 2006 reached $249 million, compared with a loss of $85 million the previous year. Bombardier made $86 million in the fourth quarter, up from $56 million a year earlier.

Eclat Consulting

By Adrian Schofield
North American Airlines this week took delivery of its fourth Boeing 767-300ER, which it plans to use for scheduled service between the U.S. and West Africa. The aircraft was acquired under a five-year lease from ILFC, and another 767 is scheduled for delivery in December. North American, a subsidiary of World Air Holdings, now has a fleet of nine aircraft. The company says it is the only airline offering nonstop service between the U.S. and West Africa. North American also has extensive charter operations for military and commercial customers. -AS

Benet Wilson
Comments from British Airways and Lufthansa moved the Wayne County Airport Authority to spend an extra $2.5 million for a larger customs and immigration area in Detroit Metro's new international North terminal. "BA and Lufthansa pointed out that they'd have flights arriving within 20 minutes of each other, which could generate long lines," said airport spokesman Michael Conway. "We want passengers at the McNamara and North terminals to be equal, so this made sense."

Eclat Consulting

By Adrian Schofield
Two leading government agencies this week reported that the U.S. aviation trust fund is rebounding nicely, and a new study by an aviation consultant claims that the trust fund is in healthier shape than advertised.

Benet Wilson
Oklahoma City Will Rogers World Airport has launched a campaign to get direct service to Baltimore/Washington, Los Angeles, Seattle and San Francisco. The airport developed a multi-tiered marketing incentive program with Alexandria, Va.-based consultant Campbell-Hill Aviation Group to persuade airlines to serve these cities directly.

Steven Lott
Ethiopian Airlines has posted profits in nine out of the past 10 years and CEO Girma Wake predicts that trend will continue as the carrier reveals plans to boost U.S. service and acquire at least five Boeing long-haul aircraft.

Staff
Northwest pilots will start voting on their $358 million tentative concession agreement April 6 and will finish May 3, reports the Air Line Pilots Association unit. The flight attendants' union and management are finalizing details of their tentative deal with management but have scheduled road shows around the country. They have not scheduled a start date for a vote.

Steven Lott
Three of the world's largest aircraft leasing companies issued a stern warning this week to U.S. legacy airlines that they shouldn't expect any more discounts, deals or bailouts in the future as the leasing giants have lost confidence in the U.S. carriers and would rather deal with customers in other parts of the world.

Annette Santiago
AirTran's application for two within-perimeter slots now available for Washington National Airport (DAILY, Feb. 28) isn't up to snuff, but the carrier has found a way around that -- it would have U.S. Transportation Dept. take two slots from either of the rival bidders (US Airways or Comair) in exchange for the within-perimeter slots. DOT would then be free to award the two slots to AirTran, which would use them to launch service from DCA to Indianapolis or Chicago Midway (DAILY, March 22).

By Jens Flottau
Airport operator BAA this week said it has decided to close London Heathrow's Terminal 2 once all airlines have relocated to other terminals in 2009. The company calculated that only 1.5 million passengers would be handled in the facility annually once all current relocation plans are implemented, "giving rise to questions around the economic and operational viability."

Staff
Boeing yesterday announced a new order for 30 Boeing 737s by GE Commercial Aviation Services, including the first order for the 737-900ER by a leasing company; GECAS also placed 30 options. The aircraft will be delivered between 2008 and 2010. The latest order means GECAS has ordered 68 737s in the past two years.

Lori Ranson
Cendant won a new client for its new airRes system from startup Virgin America, the second airline to opt for the system after WestJet became the launch customer last fall (DAILY, Sept. 19).

Steven Lott
Dragonair this summer plans to boost its frequencies to 10 mainland China destinations and three non-mainland cities.

Seabury Airline Planning Group

Steven Lott
Hawaii's Island Air last week unveiled its new look and services as the independent carrier leaps into the inter-island competition.

By Jens Flottau
Virgin Atlantic Airways plans to carry 10% more passengers in its business-class cabin next year, one goal of a three-year strategy aimed at boosting profit margins. The airline said this week that it hopes to reach the goal by focusing on high-demand business routes, such as London-New York and London-Dubai, and on additional product upgrades. The airline's Heathrow clubhouse now features a jacuzzi and spa treatments, among other things.

Annette Santiago
United and Air Canada won approval for blind-sector code sharing that will enable the Canadian carrier to offer service to Mexico (DAILY, March 3). The AC code will appear on United's flights from Denver to Cancun, Mexico City, Puerto Vallarta, San Jose del Cabo and Ixtapa/ Zihuatenejo, Los Angeles to Ixtapa/Zihuatenejo and San Francisco to Puerto Vallarta and Los Cabos [OST-2006-24079]. Air Canada does not have authority for the U.S.-Mexico points. -ARS

By Jens Flottau
Lufthansa Technik, Europe's biggest maintenance, repair and overhaul provider, saw operating profits rise 26% to EUR258 million (US$311 million) last year, as the company's third-party business continued to grow. Sales were up 2% at EUR3.12 billion (US$3.8 billion). CFO Peter Jansen said that the unit's internal business actually declined, with Lufthansa Cargo having phased out maintenance-prone Boeing 747-200s. Fifty-eight percent of sales are now with outside customers.