B/E Aerospace was selected by Air France to provide business class seating for two of the carrier's widebody fleets in programs valued at up to $40 million. Under the agreements, B/E will manufacture and deliver versions of its MiniPod lie-flat business class seats for AF's A380s and part of its 777 fleet.
Malaysia Airlines Engineering Division was named as an authorized mod center for Aviation Partners Boeing Blended Winglet retrofits for 737NGs, 757-200s and 737 Classics.
Patrick Corp. has reinforced its move to control Virgin Blue by lifting its holding to more than 62% despite the continuing refusal of founder Richard Branson and CEO Brett Godfrey to sell their shares. Following the close of Patrick's A$1.90 ($1.48) a share bid last Friday, the diversified transport group said it has garnered acceptances from most of the independent shareholders in Virgin Blue. However, Branson's Virgin Group and Godfrey, with 25.6% and 2.7% respectively, have held tight to their stakes. Patrick Corp.
United Airlines reached agreements with SkyWest and GoJet, a new subsidiary of Trans States Holdings, to replace some of the services currently provided by Air Wisconsin in its United Express codeshare operation. The two carriers will operate a total of 30 70-seat CRJ700s under yesterday's accord. Subsequent to the announcement, SkyWest ordered 20 additional CRJ700s in a deal valued at $637 million. Air Wisconsin currently flies 70 aircraft in the United Express network, but last fall United issued an RFP to replace that service ( ATWOnline , Nov. 12).
SriLankan Airlines launched an Internet booking engine on its website that allows customers to make reservations online. In addition, it introduced e-ticketing on flights to 10 destinations.
Aloha Airgroup and subsidiary Aloha Airlines finalized a $65 million debtor-in-possession financing facility with Ableco Finance, an affiliate of Cerberus Capital Management, and Goldman Sachs Credit Partners. Aloha said it used some of the funds to pay off the last portion of its Air Transportation Stabilization Board federal loan guarantee and certain local bank term loans.
Austrian Airlines Group is deemphasizing previously discussed plans to invest in airlines in the Balkans and Eastern Europe as part of its broader strategy to build its network in the region, CEO Vagn Soerensen told ATWOnline . As these states join or move closer to membership in the EU, "it make less sense for us to invest in [them], because one of the advantages--to get better traffic rights--is gone," he said.
The world's airlines will lose $5.5 billion in 2005 if oil prices average $43 per barrel for the full year, IATA DG and CEO Giovanni Bisignani stated yesterday in New York (on April 1, the price of the May crude-oil contract hit a record $57.70 a barrel on the NY Mercantile Exchange, the Wall Street Journal reported).
Virgin Group chief Richard Branson has floated plans to establish a second Australian flag carrier in partnership with local investors that will focus on routes to China, Japan and the US by the end of 2005. In a move that is sure to antagonize Singapore Airlines, Branson said the Australian government should give precedence to the proposed new venture in allocating rights to service the US West Coast. SIA, a 49% shareholder in Virgin Atlantic, is seeking to gain rights to begin Sydney-Los Angeles flights in the middle of next year.
US Dept. of Transportation gave final clearance to several passenger and cargo airlines that tentatively were granted rights in February to launch services to China ( ATWOnline , Feb. 23). As a result, American Airlines officially can start marketing its new Chicago-Shanghai flights that will begin next year. In addition, Federal Express, Northwest Airlines, Polar Air Cargo and UPS will be able to boost their cargo service to China in 2006 by adding three weekly flights each.
Gulf Air and Lufthansa Technik tomorrow are scheduled to reveal at the Aircraft Interiors 2005 conference in Hamburg the details of what LHT terms a "far-reaching" MRO contract to be signed by Gulf Air President and CEO James Hogan and Lufthansa Technik Executive Board Chairman August Henningsen.
ACE Aviation Holdings , parent of Air Canada, entered into agreements with a group of underwriters to sell an aggregate of roughly 11.4 million Class A and B shares at a price of C$37 ($30) per share for proceeds of C$420 million. ACE also will sell C$300 million of 4.25% convertible senior notes due 2035. The notes will be convertible into shares at an initial conversion price of C$48 per share. ACE said both offerings were increased following strong investor demand.
Aiming to reduce the risk of fire spreading aboard an aircraft, FAA Friday proposed a new rule that will require airlines to replace or modify certain insulation blankets on more than 800 US-registered Boeing aircraft over the next six years.
Swissport International will expand its presence in Africa through two new collaborations. In Algeria, the company is establishing a joint venture with Arcofina Group with a goal of obtaining an airport ground handling license this summer. In Sudan, the company has completed a franchise agreement with MASS Aviation Support that should allow it to begin ground handling activities there in May.
PACE Aerospace Engineering and Information Technology announced that Seattle-based International Aero has purchased its standard cabin interior configuration software Pacelab.
In what it described as a further step in its "commitment to intra-European travel," easyJet announced that it will establish a new base at EuroAirport Basel-Mulhouse-Freiburg this summer and launch five new routes from the airport.
Lufthansa marked the 50th anniversary of its 1955 rebirth with a festive ceremony March 31 in a hangar at its Hamburg base and a commemorative flight the next day in an A310 painted in nostalgic old-time LH livery that was prepared by Lufthansa Technik for the occasion. The flight was from Hamburg to Munich via Duesseldorf and Frankfurt along a route taken by an LH Convair 340 on April 1, 1955, in a 4-hr. flight that marked the beginning of a new era in German aviation. Lufthansa's history actually dates to the founding in 1926 of what was called Deutsche Luft Hansa.
ATA Holdings Corp., which has been operating under Chapter 11 since October 2004, reported a massive $816.9 million net loss available to shareholders for 2004 in its annual report filed with the US Securities and Exchange Commission last week. The figure included $638.5 million in reorganization expenses and a noncash charge of $27.3 million related to the company's bond exchange in the first quarter. This compares to a net income of $15.8 million in 2003, which was bolstered by $37.2 million in security rebates from the US government.
UT Air signed a contract to purchase two ATR 42-300s to develop its regional market. The first is expected to be delivered by Continental Airlines in June. UT Air also is negotiating with ATR for a training and global maintenance agreement for comprehensive airframe maintenance, equipment repair and standard exchange services
Hit hard by $129.5 million in reorganization expenses as well as rising fuel prices and increased competition, bankrupt Hawaiian Airlines posted a $75.4 million net loss for 2004 compared to a net loss of $49.5 million in 2003. The airline said the reorganization expenses primarily consisted of $110.6 million in one-time noncash claims to settle leases with Boeing Capital Corp. for three 767-300s and 11 717-200s, and with Ansett for a 767-300 rejected by Hawaiian in 2003. Results also included an income tax provision of $16.8 million.
