ACE Aviation Holdings, parent of Air Canada, reported a C$77 million ($60.5 million) net loss for the first quarter ended March 31, improved over a net loss of C$304 million in the year-ago period, which included C$132 million in special items related to the company's recent bankruptcy reorganization. Operating loss before one-time items for the quarter also improved year-over-year, moving from C$145 million to C$10 million.
Boeing announced that beginning this summer it will add four channels of television to its Connexion by Boeing inflight Internet service that will be accessible through passenger laptops connected to the service. Initially, the TV service will be available on Singapore Airlines flights; it will be expanded later this year to include other airlines that are offering Connexion. The company also said it is working with its airline customers and inflight entertainment service providers to deliver television content to the seatback. Separately, Boeing selected Astronautics Corp.
Virgin Blue abandoned negotiations over a planned low-cost joint venture based in Macau, switching its focus to prospects for an international operation linking Australia with the US. The airline confirmed that it has pulled out of long-running talks with gaming magnate Stanley Ho's Shun Tak Holdings and Air Macau concerning establishment of an airline to service the rapidly growing South China Delta region. While Shun Tak continues to hold discussions with Air Macau, Virgin Blue said it now is exploring options for a transpacific operation.
Menzies Aviation introduced Right Bags On-Board, its new secure baggage reconciliation system. RBOB uses handheld scanners equipped with wireless technology to provide ground workers with information about each bag they scan, including passenger name, flight number and destination. Following a three-month trial of the system, Cathay Pacific will be the launch customer.
US National Transportation Safety Board yesterday determined that the probable cause of the Dec. 18, 2003, crash of a FedEx MD-10F while landing at Memphis International Airport "was the first officer's failure to properly apply crosswind landing techniques to align the airplane with the runway centerline and to properly arrest the airplane's descent rate" before touchdown.
Sichuan Airlines ordered six A320s and two A319s for delivery from late 2005 to 2008. The Chengdu-based carrier first ordered A320s in 1995 and has a fleet of eight A320s, four A321s and two A319s.
Bombardier President-Regional Aircraft Steve Ridolfi said yesterday at the Regional Airline Assn. annual meeting in Cincinnati that "the 50-seat market has matured" and the focus is switching to RJs in the 70/90-seat range. "The larger RJs are a new weapon in the arsenal," he said. "The relaxation of scope clauses is accelerating this trend." Even so, 50-seat aircraft will not be replaced fully by larger RJs: "They're not dead yet. There's a decent 50-seat market out there." While the US airline industry is dominated by RJs, turboprops remain a popular choice elsewhere.
Iberia is preparing a follow-up program to its Director Plan 2003-05 that will target savings of €550-€600 million ($695.2-$758.3 million) in 2006-08 through a series of cost-cutting and productivity-boosting measures that may include creation or acquisition of an LCC to cater to the low-cost air travel segment. "There are markets where we can't compete anymore in current conditions. We either create a second brand or we convince trade unions of the need for a second salary scale for new employees," CEO Angel Mullor told Expansion.
AirTran Airways completed an aircraft pre-delivery deposit financing with BNP Paribas S.A. and separately entered into a new line of credit facility with Bank of America N.A. Under the pre-delivery deposit financing agreement, BNP Paribas provided $19.6 million for six 737-700s to be delivered in 2005 and 2006. SkyWorks Capital LLC advised the carrier on the transaction.
Baltimore/Washington International Airport and Southwest Airlines are preparing to move the airline's operations to the new Terminal A/B in a phased transition beginning tonight and running for approximately two weeks. Terminal A/B is a 510,000-sq.-ft. facility providing new food and retail concessions and 11 gates that are connected with 15 SWA gates on Concourse B to create a 26-gate concourse for the carrier, the airport's largest tenant. The all-in cost for the complex was $264 million. Supporting roadway and airfield improvements totaled approximately $95 million.
United Airlines late Monday announced that it has reached a new tentative agreement outside of bankruptcy court with its mechanics, represented by the Aircraft Mechanics Fraternal Assn. Terms of the five-year deal were not released, but it reportedly includes a 3.9% pay cut as well as reductions in sick time and holiday benefits and will save the carrier $96 million a year. United previously had sought $101 million from the group.
Rockwell Collins will provide service and support for Collins avionics on GoJet Airlines' CRJs. Under the 16-year Dispatch Plus agreement, Collins Aviation Services will supply spares ownership, MRO and technical support on a fixed-price-per-flight-hour basis. GoJet, a wholly owned subsidiary of Trans States Holdings, is expected to take delivery of the first of 10 CRJ700s in June.
Although deliveries were up year-over-year, Embraer reported a 6.6% decline in net income to $96.5 million for the first quarter ended March 31 from net income of $103.3 million in the year-ago period. Net sales rose 21.9% to $763.3 million but operating expenses climbed sharply on a steep increase in research and development costs. As a result, income from operations totaled $124.5 million, an 18.6% decline from $153 million in the 2004 quarter.
Alitalia Maintenance Systems received approvals from Italian and European aviation authorities ENAC and EASA to perform overhauls on CFM56-5B engines. AMS already services CF6-50s and CF6-80s. Rome Fiumicino-based AMS is a joint venture of Alitalia and Lufthansa Technik, which acquired a 40% share in September 2003.
Discover the World Marketing was selected by Copa Airlines to expand its sales and marketing representation in Canada beginning this month. Discover has been handling the carrier's sales and marketing in Australia and France since March 2004.
Etihad Airways expanded its cargo operations with the May 12 launch of twice-weekly A310-300F flights from Abu Dhabi to Milan Malpensa. The airline said additional new routes to Khartoum, Almaty, Addis Ababa, Bangalore and Chennai are expected to begin in the coming months.
US airlines flew 40.31 billion domestic RPMs in February, up 3.2% over the year-ago period, according to the US Dept. of Transportation. Domestic capacity climbed 0.9% to 56.32 billion ASMs and load factor gained 2.9 points to 71.6%. Southwest Airlines carried 6.1 million domestic passengers during the month, the most of any carrier. Delta Air Lines at 6 million and American Airlines at 5.4 million ranked second and third respectively.
EU finance ministers reached an agreement in principle to impose a small levy on air travel to fund development aid that would be voluntary or obligatory depending on the country. However, the controversial proposals for a tax on airline fuel were dropped at the weekend meeting in Luxembourg.
Messier Services Asia implemented a new supply chain management program with Boeing to support Singapore Airlines and other Boeing customers in Asia. Under the new program, Boeing will provide MS Asia with enhanced technical support/certification in servicing Boeing-designed and -manufactured landing gear systems, as well as greater access to available inventory. This in turn will allow MS Asia to reduce repair and overhaul turnaround times for its airline customers.
TAP Portugal and Varig confirmed Monday that they have signed an MOU to hold exclusive talks aimed at a recapitalization of Brazil's failing flag carrier. "TAP may be able to become a shareholder of. . .up to 20% of Varig's capital, which is the maximum permitted by the Brazilian legislation," the Portuguese carrier said in a statement. TAP CEO Fernando Pinto, who served as CEO of Varig prior to joining TAP, stressed that a merger is "out of the question" and that both companies will "remain independent."
Menzies Aviation will take over as the exclusive ramp handler at Las Americas International Airport in Santo Domingo effective July 1 after signing a 10-year contract with airport operator Aeropuertos Dominicanos Siglo XXI SA.
Thomas Cook Airlines UK plans to create two new engineering hubs at Glasgow and Birmingham. The company already maintains its own aircraft at Manchester, Stansted, Gatwick and Newcastle. "Our departures from Glasgow and Birmingham have grown considerably over the past few years and we felt it was the right time to take control of maintenance rather than subcontract this work," said Engineering Director Chris Hubbard. Thomas Cook Airlines UK currently has three aircraft based at Glasgow and two at Birmingham.
CAE was awarded a contract to provide an A320 full flight simulator to Lufthansa Flight Training Berlin, representing the 25th simulator Lufthansa Group has ordered from CAE since 1980. According to CAE, the simulator, which is scheduled for installation at the facility in spring 2006, has a list price of C$14 million ($11 million).
Air Mauritius plans to acquire three new A340-300s valued at $540 million, with the first two scheduled for delivery in October 2006 and the third in October 2007. The carrier also holds options to buy two more. At present, the carrier's fleet consists of five A340-300s, two 767-200ERs, two A319-100s, one ATR 72-500 and two ATR 42-500s.
