Airlines & Lessors

Slovenia-based Adria Airways (JP) plans to announce a fleet restructuring program by fall and has denied media reports of a possible merger.

Qatar Airways (QR) is interested in launching a start-up carrier registered in Saudi Arabia, although such a move would depend on a “fundamental rethink” of the Kingdom’s aviation policy.

Boeing is forecasting worldwide demand for 34,000 new aircraft over the next 20 years, doubling the world fleet, in its latest market forecast.

Qantas Group’s (QF) new low-cost subsidiary (LCC) Jetstar Japan (GK) has launched operations, joining four other Jetstar-branded airlines in Singapore, Vietnam, Australia and New Zealand.

Iberia (IB) is adding frequency to the Canary Islands for the summer season, increasing capacity to Gran Canaria by 32% and Tenerife by 19%.

ACE Aviation, former parent company to Air Canada (AC), has appointed Ernst & Young as liquidator and announced the resignation of all its directors and officers.

Founder and former CEO of Swiss regional airline Baboo Julian Cook is planning to launch a new airline called FlyA in summer 2013.

International passenger traffic/February 2012 RANK AIRPORT CODE PASSENGERS

Airline Pass.(000) % Chg. RPKs (000)

$/gallon Price for Price for June 22, 2012

Spot Cash Markets

May 2012 Boeing Deliveries

Memphis-based FedEx Express, a subsidiary of FedEx Corp., announced it will purchase an additional 19 Boeing 767-300 aircraft as part of its plan to improve the efficiency and technology of its fleet.

Brazilian domestic traffic measured by RPKs grew 5.7% year-over-year in May, against a 5% growth in ASKs, according the National Civil Aviation Agency (ANCA). Industry load factor grew 0.7 percentage point to 67.6%.

Dubai-based Emirates Airline (EK) said its expansion plan will be readjusted after it lost nearly $100 million from necessary modifications to repair wing rib cracks on its in-service Airbus A380s.

UK-based Virgin Group, parent company of Virgin Atlantic Airways (VS), has sold its 10% stake in Malaysia’s AirAsia X (D7), the long-haul, low-cost carrier (LCC).

Lebanon’s’ Middle East Airlines (ME) joined SkyTeam Alliance Thursday, becoming SkyTeam's 17th member and second Middle Eastern carrier following Saudia.

Irish regional carrier Aer Arann (RE) is understood to be finalizing an ATR 72 deal, which could be announced at the Farnborough Airshow.

Russia’s UTair (UT) reported a 2011 net profit of RUB261.2 million ($8 million), up 21% from 2010.

Canada’s WestJet (WS) has signed a conditional order for 20 Bombardier Q400 turboprops following last month’s letter of intent to purchase the aircraft for its new regional affiliate.

Czech Airlines (OK) recorded an increased pre-tax loss in 2011, tripling its deficit to CZK241.3 million ($11.6 million) from CZK76.1 million in 2010.

A section of the Air India (AI) pilots, who have been on strike for the past 52 days, said the medical condition of one of them who has been on a hunger strike for the past four days is rapidly deteriorating.

Brazil’s GOL said it will lay off an estimated 2,500 employees through the end of the year, stepping up cost-cutting efforts.

The board of directors of the Allied Pilots Assn. (APA) union representing American Airlines’ (AA) pilots voted 9-7 on Wednesday to accept management’s latest labor contract proposal as a tentative agreement, pushing the potential pact to the carrier’s 10,000 flight deck crew for a ratification vote.

Kenya Airways (KQ) has announced financing for the purchase nine new Boeing 787-800s, one 777-300ER and 10 Embraer E-190 aircraft, from the African Export-Import Bank (Afreximbank).