In what is the largest civil aircraft order of the year, Air Berlin yesterday bought up to 110 Airbus A320s to aggressively build its fleet and in turn stabilize the company's position as Europe's third-largest, low-fare airline.
NASA's Ames Research Center has awarded Raytheon a one-year follow-on contract to expand the Airspace Concepts Evaluation System (ACES), with an option for two more years. The one-year contract and the two options are each worth $3 million.
The Civil Aviation Navigation Services Organization (CANSO) has added three European air navigation service providers (ANSPs) as full members. The addition of Poland's PATA, Bulgaria's ATSA, and Georgia's Sakaeronavigatsia brings the total CANSO membership to 70. CANSO has 39 full ANSP members and 31 associate members including industry suppliers, airlines, consultants and academic institutions. The addition of PATA means 22 of the 25 ANSPs from EU member states are members of CANSO.
Screening all-cargo aircraft and doubling the cargo on commercial aircraft that is checked for explosives are among the disparities House and Senate conferees have yet to resolve in the aviation portions of H.R.10, the House version of an intelligence reform bill, and the Senate's version, S.2845.
Lisa Piccione, one of Delta's top Washington lobbyists, plans to resign from the airline to become senior VP-government affairs at the National Business Aviation Association. Piccione also worked as the congressional lobbyist for the Airports Council International-North America and served as a top aide to several members of Congress, including Rep. Peter DeFazio (D-Ore.), ranking member on the House Transportation aviation subcommittee.
ATA Holdings Corp. will be delisted from the Nasdaq stock market tomorrow because of its Chapter 11 bankruptcy filing. Nasdaq added the letter Q to the company's ATAH stock symbol on Oct. 29 to indicate its filing status.
Alaska Airlines ordered 25 sets of blended winglets built by Aviation Partners for installation on its Next Generation Boeing 737-800s, set for delivery in 2005. The deal also includes retrofitting the carrier's 737-700s. Alaska said winglet-equipped planes would cut takeoff noise by 6.5% and reduce engine emissions. Using its average annual 737 aircraft utilization rate of 4,000 hours, Alaska said the winglets would reduce fuel burn by 120,000 gallons or 3.5% a year. -LR
American Eagle plans to start daily service from Dallas to San Luis Potosi, Mexico, on Jan. 5, using 44-seat Embraer ERJ-140s. The single daily flight expands Eagle's Mexican flights to six destinations. The carrier already flies to Aguascalientes, Leon, Guadalajara, Monterrey and Torreon.
The U.S. Transportation Dept. (DOT) fined Alaska and its sister carrier Horizon $30,000 for an each-way fare advertisement that did not adequately display a restriction that the fares are valid only for roundtrip purchases. In Alaska and Horizon ads that ran April 15-21 in The Tri-City Herald in Eastern Washington and other newspapers, the airlines failed to disclose "prominently and proximately to the fare," the roundtrip condition of the "Daylight Savings" promotion, DOT's Enforcement Office said.
Lockheed Martin said the Transportation Security Administration (TSA) chose the Bethesda, Md.-based company to lead a $5.3 million research project to improve the technology of explosives detection systems (EDS). Funded by a cooperative agreement grant from TSA under its Phoenix Project, Lockheed Martin will focus on designing and developing technology "to increase machine throughput, improving efficiency and enhancing current EDS threat detection capabilities," the company said.
High jet fuel prices blamed for ransacking airline profits may soon begin chipping away at airport revenues, Fitch Ratings said yesterday. Since October 2003, oil prices have increased from $30 a barrel to the current $50 per barrel. Jet fuel prices, however, have surged about 90% in the same period, Fitch said.
Tuesday's elections will usher in a change in aviation leadership across the board in both the House and Senate, throwing the future of pending legislation into uncertainty.
Indonesian private carrier PT Star Air on Nov. 8 will introduce daily flights between Jakarta and Kuala Lumpur, using MD-83 aircraft. The carrier hopes to tap the growing Indonesian labor traffic on the route.
The U.S. ratified the Cape Town Convention last week, becoming the fifth country to approve the international legal framework to facilitate financing and leasing of large commercial aircraft and engines.
Orbitz, which will be acquired by Cendant Corp. in the coming weeks, reported a 30% jump in third-quarter profits to $5.1 million thanks to strong growth in hotel bookings. Revenue in the quarter grew 20% to $77.5 million. The profit includes $1.4 million of non-cash compensation charges relating to an April 2002 restructuring of outstanding stock options and $4.2 million in expenses related to the Cendant acquisition. Excluding these items, adjusted pre-tax net profit would have been $9.7 million, up from $3.9 million last year.
Delta reported that its proposed public debt exchange had been oversubscribed for one class of short-term bonds but that the response has so far has been much lower for the other two classes of bonds. Delta said the value of bonds in the two other closes "is substantially below" the minimum tender conditions. If the short-term bonds are the only ones exchanged, the airline may be able to defer the $235 million in debt due next year by issuing the same amount of new notes due in 2008. The exchange offer will end on Nov. 18, unless it is extended. -SL
Several major U.S. airlines are participating in a simulated slot lottery this week to see if this could be an effective way to allocate valuable landing times at congested airports. The simulation is being organized by FAA and a research coalition led by George Mason University. Another test of demand management procedures will be held in February.
Independence Air expects to resume proving runs soon for its Airbus A319, originally scheduled to debut on Florida routes yesterday, and disputes any claims that it has failed those runs.
Hoping to quell the fears of industry and tourism leaders, the CEO of DGAC, Peru's civil aviation department, said domestic traffic carried by the now-grounded Nuevo Continente (DAILY, Nov. 1) could be comfortably handled by other airlines, currently operating at an average 65% load factor. To bolster his argument, DGAC CEO Roberto Rodriguez-Galloso added that Magenta Air, Tans, Aerocondor and Star Up are acquiring new aircraft to meet expected traffic. So far, the new lineup has increased airfares only nominally.
