GE announced that its CF34-10E engine has been awarded FAA type certification, paving the way for aircraft certification and introduction into revenue service with JetBlue Airways on the Embraer 190 in the third quarter.
Paul Boghosian , head of Hawaiian Investment Partners Group, which has proposed a bankruptcy reorganization plan for Hawaiian Airlines, was arrested after he allegedly agreed to pay a $500,000 bribe to an FBI agent posing as a hedge fund manager in exchange for a $2.5 million loan, the Associated Press reported. In addition, Boghosian made a number of misrepresentations to the bankruptcy court, among others regarding HIP's ability to provide approximately $300 million in new equity funding and financing in order to carry out the reorganization plan, it was charged.
Lufthansa Systems said Hapag-Lloyd Flug opted for the Lido Route Manual, a new electronically generated navigation chart system. The contract covers more than 40 Hapag-Lloyd and Hapag Lloyd Express aircraft and has an initial term of five years.
Goodrich Corp. was selected by LAN Airlines to provide overhaul services for its fleet of CF6-80C2-powered 767s. Under terms of the contract, Goodrich will restore as many as 55 thrust reversers on a schedule predicated on the operational needs of LAN.
Cathay Pacific Airways flew 4.78 billion RPKs in February, up 18.6% over the year-ago period. Capacity climbed 11.4% to 6.18 billion ASKs and load factor rose 4.7 points to 77.4%. For the two months ended Feb. 28, RPKs jumped 15.6% to 10.19 billion, ASKs increased 12% to 12.97 billion and load factor gained 2.4 points to 78.5%.
Continental Airlines will begin twice-daily nonstop service between Bangor and Newark June 9. Continental Express will operate the service using ERJ-145s.
Lufthansa and NetJets , as expected ( ATWOnline , March 8), yesterday announced a partnership argreement to create Lufthansa Private Jet, which will permit travelers to fly by business jet from more than 1,000 airports around Europe to Lufthansa's Munich hub to board connecting flights in first or business class. The agreement was signed in Munich by Lufthansa Chairman and CEO Wolfgang Mayrhuber and NetJets Chairman and CEO Richard Santulli. LH will conduct a six-month market test of the service beginning with the start of the summer schedule from March 29.
Emirates closed a $239 million financing agreement with the US Export-Import Bank for 22 GE and Rolls-Royce engines. The financing was fully arranged and funded by Royal Bank of Scotland and comprises $129 million for seven spare GE90s using Exim support and $110 million for 15 Rolls engines using commercial debt.
EADS posted a net profit of eur1.03 billion ($1.38 billion) in 2004, a 60% increase on 2003 owing mainly to the strong performance of Airbus and a swing into profit by space activities. But Co-Chairman Philippe Camus warned that breakeven for the A380 program now exceeds 300 units, up from original expectations of 250 units. "If we fix the euro/dollar rate at eur1.30, and based on what we have already done for the program [in terms of currency hedging], and also taking into account the higher development costs, we get a breakeven point that is well above 300 planes," Camus said.
Virgin Nigeria Airlines is scheduled to begin operations later this year following a successful private placement of 51% of the share capital worth $26 million with Nigerian institutional investors, Reuters reported. It added that the institutional investors are expected to sell half of their stake in an IPO on the Nigerian Stock Exchange once the airline gets airborne. Virgin Group holds a minority share of 49% as originally planned to avoid US authorities viewing the new airline as British, which could affect traffic rights to the US negatively.
Continental Airlines began twice-daily service between Del Rio, Tex., and Houston. The flights are operated by Continental Connection partner Colgan Air.
Cathay Pacific Airways reported its second-best year with profit to shareholders of HK$4.42 billion ($566 million) for full-year 2004, up sharply over net income of HK$1.3 billion in SARS-affected 2003. Cathay attributed the growth to the improved Hong Kong and global economies compared to 2003 and noted that 2004 would have been its best year on record had there not been a sharp rise in the price of fuel.
Gol flew 553.7 million RPKs in February, up 5.8% over the year-ago period. Capacity climbed 15.1% to 782.3 million ASKs and load factor declined 6.2 points to 70.8%. The airline did not provide year-to-date results.
Continental Airlines warned yesterday that matching Delta's SimpliFares fare reform in competing markets will cost it an estimated $200 million in annual revenue, or around 2% of 2004 revenues of $9.7 billion, well above an earlier forecast of a $50 million impact.
Air Canada parent ACE Aviation Holdings reported a C$15 million ($12.4 million) net income for the fourth quarter ended Dec. 31, which included foreign exchange gains on long-term monetary items of C$98 million. This was a complete turnaround from a C$768 million net loss in the prior-year period, which included C$560 million in reorganization charges. The company did not release full-year results, but losses for the first nine months totaled C$895 million.
Northwest Airlines will launch one daily nonstop flight between Minneapolis/St. Paul and Idaho Falls June 9. The service will be operated by Northwest Airlink partner Pinnacle Airlines Corp. using a 50-seat CRJ.
Rockwell Collins was selected by ANA to provide its Flight Dynamics Head-up Guidance System for installation on the airline's new fleet of 45 737-700s. Delivery of the first systems is scheduled for later this year.
America West Holdings Corp. , parent of America West Airlines, revised its previously reported financial results for the fourth quarter and full-year 2004 owing to an accounting change associated with the recognition of gains or losses on derivative instruments that the company uses as a means of reducing financial exposure to fluctuating fuel prices. As a result, the company's and airline's consolidated statements of operations for 2004 will reflect net losses of $89 million and $85.3 million respectively, versus the net losses of $89.9 million and $86.1 million previously reported.
Delta Air Lines is eliminating pillows, dropping its food-for-purchase program and increasing the cost of alcoholic beverages on most of its flights as part of its Transformation Plan. Pillows will be eliminated on all flights within the continental US and to Bermuda, Canada and Central American and Caribbean destinations beginning in mid-March as "part of the airline's efforts to provide more room for carry-on luggage in overhead bins while reducing costs." Blankets still will be available.
Alitalia's investment bankers Goldman Sachs and Mediobanca finalized the underwriting syndicate for the airline's eur1.2 billion ($1.6 billion) capital increase, Finanza & Mercati reported. Alitalia's restructuring plan and recap currently is being investigated by the European Commission.
In what was a period of significant growth, Gol reported net income of 123.9 million reais ($46.7 million) for the fourth quarter ended Dec. 31, up 93.3% over net income of R$64.1 million in the year-ago period. "We continued our investment in our virtuous cycle of profitable growth through the addition of four new aircraft to the fleet, 51 flights and seven new market destinations," CEO Constantino de Oliveira said.
