Pinnacle Airlines Corp., the Memphis-based parent of regionals Pinnacle Airlines, Colgan Air and Mesaba Aviation, said Thursday it has serious financial issues it must address and will initiate a "comprehensive program to reduce short- and long-term costs and enhance liquidity."
Air Seychelles (HM) will slash all its remaining European routes as demand weakens and competition increases. According to CEO Bram Steller, the European economic crisis—coupled with tough competition from the Middle East—has led HM to shut down its long-haul operations. HM will stop flights from Mahe to Rome Fiumicino, Milan Malpensa as well London Heathrow from Jan 8. Services to Paris Charles de Gaulle will be reduced from 5X to 3X weekly from January and will stop completely by March 25. HM stopped flights to Singapore Nov. 24.
Austrian Airlines (OS) may have to extend its cost-cutting program as the economic outlook weakens demand ( ATW Daily News, Sept. 28). OS will save up to €100 million ($134 million) this year but this may not be enough.
Delta Air Lines (DL) signed a binding agreement to invest $100 million in GOL to gain preferred shares in the Brazilian airline and a seat on the GOL board of directors.
Southwest Airlines (SWA) announced it will deploy the Flightcom wireless aviation ground support communications system at each of its gates at all 73 of its destinations across the US. It expects deployment to be complete in the first quarter of 2012. “We are the first major airline to widely deploy this type of wireless system, and we expect it will strengthen our team communications and operational efficiency,” SWA senior manager-safety, standards and regulatory compliance, ground ops Marc Stank said.
Shanghai-based Spring Airlines, the most successful Chinese low-cost carrier, is preparing to launch a carrier in Japan to gain a deeper foothold in the Japanese market.
Taiwan-based China Airlines (CI) wants to increase its share of transfer business at Taiwan Taoyuan International (TPE) as part of its strategy for international growth and profitability.
Aeroflot (SU) launched Sukhoi Superjet 100 (SSJ100) international services Dec. 4 when the aircraft (RA 89002) flew between Moscow (SVO) and Oslo (OSL) ( ATW Daily News, Nov. 14). By the end of the year, the aircraft is expected to fly from SVO to Budapest (BUD).
Russia`s second-largest carrier Transaero (UN) has confirmed an order for eight Airbus A320neos following an MOU signed in August ( ATW Daily News, Aug. 17). The first delivery is scheduled for 2017. The carrier has not yet announced an engine selection between CFM International's Leap-X and Pratt & Whitney's PW1100G.
Air France (AF) will open bases in Toulouse (TLS), Nice (NCE) and Bordeaux (BOD) in 2012, as it tries to regain the market share from low-cost carriers (LCC).
LAN Airlines and Amadeus have signed a full-content distribution agreement. The multi-year agreement guarantees Amadeus travel agents worldwide access to the entire range of fares, schedules and inventory relating to the more than 18 million seats sold annually by the LAN Group Airlines (LAN Airlines, LAN Ecuador, LAN Perú, LAN Argentina, Aires and LAN Express). Amadeus has content agreements with key airlines in Latin America including AviancaTaca, Copa Airlines and TAM.
Ryanair (FR) said it will cut 42 frequencies from its network to/from Riga airport (RIX), citing the new €6.50 ($8.75) security tax imposed by the Latvian government that becomes effective Jan. 1. Beginning Jan. 12, FR will close routes to/from Bristol and Bremen and reduce frequencies on another eight routes, including London Stansted, Bergamo and Rome Ciampino. It serves 16 destinations to/from RIX. The LCC predicts the capacity reduction will result in the loss of more than 300,000 passengers, 300 jobs and over €30 million in tourism revenue.
The Chinese government has raised domestic jet fuel prices to CNY7,655 ($1,206) per ton, up 5.17% from CNY7,279 per ton in November, citing rising international fuel prices triggered by political instability in the Middle East. This is the first fuel price increase since September ( ATW Daily News, Nov. 14).
The Latvian government has acquired the 47.2% stake in airBaltic (BT) previously held by Baltijas Aviacijas Sistemas (BAS), the company controlled by former BT president and CEO Bertolt Flick.
Thai Airways International (TG) acquired an additional 10% in Nok Air, lifting its stake in the low-cost carrier to 49%, it said in a statement to Thailand’s stock exchange. With a 49% share, TG has five directors out of nine on Nok Air's board, compared to four previously, giving it greater control over Nok’s strategy.
United Airlines' (UA) and Continental Airlines' (CO) professional engineers and related employees rejected representation sought by the International Federation of Professional and Technical Engineers (IFPTE). The IFPTE filed a representation application with the National Mediation Board June 30. There were 346 engineers and related employees eligible to participate in the election.
Singapore Airlines’ new long-haul, low-cost subsidiary, Scoot, has chosen Sydney (SYD) as its first international destination ( ATW Daily News, Nov. 1). Scoot will fly daily between SYD to Singapore (SIN) from mid-2012 on a Boeing 777-200ER. More destinations are expected to be announced shortly. Scoot will commence operations with four 777-200ERs with fares up to 40% below legacy carriers. It will operate from SIN Terminal 2, not the low-cost terminal.
American Airlines (AA), which will launch its first biofuels flight next summer, has signed a purchase agreement for renewable diesel and an MOU with two suppliers for alternative jet fuels, it was announced Wednesday at the Commercial Aviation Alternative Fuels Initiative (CAAFI) Expo in Washington. AA MD-corporate environmental Jim Walsh said that AA’s approach is for “collaborative, industry-wide plans,” which spreads the financial risk for both airlines and potential suppliers, and identifies various sources while remaining feedstock neutral.
Transaero Airlines (UN) has accused Rosaviatsia—Russia’s Dept. of Aviation/Ministry of Transport—of restricting competition and supporting a monopoly after it said the regulator withdrew permission for the carrier to operate charter flights from Moscow to Rome, Milan and Venice in the winter season.
The Australian Competition and Consumer Commission (ACCC) has approved the comprehensive integrated network alliance between Virgin Australia (VA) and Singapore Airlines (SIA).
