Facing fierce competition, state-owned RAK Airways of Ras Al Khaimah suspended operations on January 1 and the chance for a successful revival seems remote. RAK Airways management says it is re-evaluating the “best options” for its future, but that future looks daunting due to the intense competition of other United Arab Emirates (UAE) airlines, including full-service carriers Emirates and Etihad and low-cost carriers rivals flydubai and Air Arabia.
Norwegian Air Shuttle has signed a letter of intent for two Boeing 787-9 aircraft with delivery in early 2016, but its long-haul low-cost model—with labor contracted in Asia and an air operator certificate (AOC) from Ireland—is facing increasing opposition from full-service competitor SAS, and from ALPA, the U.S. Air Line Pilots’ Association. ALPA accuses the Norwegian low-cost carrier (LCC) of attempting to “dodge laws and regulations.”
LAM Mozambique is pressing for further information after preliminary investigations revealed its Embraer crash on Nov. 29 could have been deliberately caused by the aircraft’s captain. Namibia, which is leading the investigation, had already said there was a tremendous impact and no evidence of mechanical failure.
After months of discussions, Germany’s Intro Aviation has finally put in a firm offer for Air France’s Irish regional airline CityJet, and the deal is expected to close in early 2014. CityJet was put up for sale last summer. Germany’s Intro Group emerged as a likely buyer and was expected to conclude talks in July, but exclusive negotiations ended in September without a deal.
An Ethiopian Airlines Boeing 787 has made its first flight since suffering structural damage in a fire at London’s Heathrow Airport in July. Boeing test pilots took ET-AOP on a test flight from Heathrow on Dec. 21, flying racetrack patterns over the North Sea at 39,000 ft. The aircraft was due to land at Manston Airport in Kent, U.K., in the afternoon and then return to Heathrow later in the day. It is not clear whether more flights will be required, but Boeing is hopeful of returning the aircraft to passenger operations in the coming weeks.
Aviation Technical Services (ATS) and the Kansas City Aviation Department (KCAD) have reached an agreement that will see ATS lease the remaining space in the airport’s KCI Maintenance, Repair and Overhaul Base, filling a facility that was slowly abandoned in the years after American Airlines absorbed TWA. The deal gives ATS both its first location outside of its home state of Washington and a geographically strategic location in the central U.S. Notably, the maintenance provider’s largest customer, Southwest Airlines, also is the airport’s top airline.
LONDON — Eurocopter is requesting operators of all EC135 twin-engine light helicopters to carry out checks on the type’s fuel supply tanks and fuel monitoring systems. The move follows the recent short-term grounding of the U.K.-based fleet of EC135s operated by Bond Air Services after a series of what have been described as “supply-tank fuel-gauging errors on some aircraft.”
Fresh from a sizable win for its airline supply chain business, AAR is eyeing an international acquisition that would further boost the segment, CEO David Storch says. Speaking to analysts during a Dec. 19 earnings call, Storch confirmed that Wood Dale, Ill.-based AAR is “looking at a fairly sizable deal that would expand our presence” outside the U.S. The deal would likely be an all-cash transaction, he adds, offering few additional details.
Following Boeing Commercial Airplane’s recent decision to open engineering design centers away from its traditional Seattle base, parent company Boeing has announced plans to restructure its entire Research & Technology organization by establishing research centers in Alabama, California, Missouri, South Carolina and Washington.
Following Boeing Commercial Airplane’s recent decision to open engineering design centers away from its traditional Seattle base, parent company Boeing has announced plans to restructure its entire Research & Technology organization by establishing research centers in Alabama, California, Missouri, South Carolina and Washington.
FRANKFURT — Following American Airlines’ decision to drop an order for Airbus A350-800s in favor of the larger -900 version, Airbus is facing further negotiations with a small, but partially resisting and diverse group of airlines before it can finally drop the smallest of the A350 variants.
MOSCOW — Russia’s United Aircraft Corporation (UAC) is expected to find new funds to support its major commercial project — the Sukhoi Superjet 100 program — as it plans to sell its stake in Ilyushin Finance Co., the country’s largest aircraft lessor, to the government-owned Vnesheconombank. The deal was discussed by the bank’s supervisory board on Dec. 19.
A proposed FAA directive would give the world’s two Boeing 767-400 operators, Delta Air Lines and United Airlines, 36 months to replace costly hydraulic pump turbine gearboxes with improved designs better able to contain turbine wheel failures.
Alaska Airlines, underscoring its intention to counterpunch advances by code-share partner Delta Air Lines into its Seattle hub, is strategically adding service out of Delta’s Western U.S. backyard, Salt Lake City. Alaska this June will launch service between Salt Lake City International Airport (SLC) and seven cities, including three – Las Vegas, Los Angeles, and San Jose, Calif. – with at least half a dozen Delta or Delta regional partner frequencies daily. Other new routes will connect SLC with Boise, Idaho; Portland, Ore.; San Diego and San Francisco.
The U.S. Department of Transportation (DOT) inspector general (IG) is keeping his rhetorical heat on the FAA, particularly its troubled rollout of the NextGen air traffic control system, according to a 2014 look-ahead list of “top management challenges.”
After shortlisting 25 proposals from 24 states, the FAA has selected six test sites across the U.S. to conduct civil unmanned aircraft system (UAS) research. Geographic and climatic diversity were key requirements for the selection. The six selected operators are: the University of Alaska, the state of Nevada, New York’s Griffiss International Airport, North Dakota Department of Commerce, Texas A&M University, and Virginia Polytechnic Institute and State University.
Emirates is planning to refine and upgrade its Airbus A380 interiors and is still considering a move to an 11-abreast layout in economy class. Speaking following the airline’s latest A380 order announcement at the Dubai air show, Emirates Airline President Tim Clark outlined his plans for the type.
The FAA, siding with airlines opposing a mandated fix, has ordered CFM56-3 and -7 operators to inspect accessory gearboxes (AGB) for oil leaks, but stopped short of matching a European directive requiring installing new parts that minimize leak risks.
The 2014 outlook for Australia’s airline industry will be shaped by actions Qantas takes in its latest campaign to boost its flagging financial performance. The airline has indicated some significant changes are being considered, including structural changes. The government’s response to the carrier’s plight will also be important, with Qantas pushing for regulatory relief that could raise foreign investment caps.
ROLLS PROBED: The U.K. Serious Fraud Office (SFO) has begun an investigation into Rolls-Royce’s activities in foreign markets. The company announced last week that a “formal investigation” had been launched by the SFO relating to “bribery and corruption in overseas markets.” The move follows a Dec. 6, 2012, announcement when the aero-engine manufacturer revealed it had passed details of an internal review to the SFO about allegations of misconduct in Indonesia and China. Several reports in the U.K.
After shortlisting 25 proposals from 24 states, the FAA has selected six test sites across the U.S. to conduct civil unmanned aircraft system (UAS) research. Geographic and climatic diversity were key requirements for the selection. The six selected operators are: the University of Alaska, the state of Nevada, New York’s Griffiss International Airport, North Dakota Department of Commerce, Texas A&M University, and Virginia Polytechnic Institute and State University.
The Asia-Pacific region is so vast and diverse that it often defies definition as an airline industry bloc. However, some broad trends are noticeable in many markets. One example: the low-cost carrier sector is still in the rapid development phase, meaning high growth and increasing pressure for legacy carriers. At the same time, some of the major carriers are struggling with increased competition and sliding demand in their home markets.
Africa •Engine MRO expenditures are projected to be more than $800 million. •The continent's total fleet will decrease by six aircraft. Asia-Pacific •The region—excluding China and India—will generate $1 billion of spending on modifications, about one-fourth of the global modification market. •Excluding China and India, the region's fleet will increase 13%. China •Chinese operators will spend $1 billion on component MRO.
