Airlines & Lessors

Boeing and Air China Monday finalized a previously announced commitment for four 777-300ERs, valued at $1.1 billion ( ATW Daily News, Sept. 13). "This is a great day in the history of our long and enduring partnership with Air China," said Boeing Commercial VP & Marketing Marlin Dailey.

US Dept. of Justice announced Monday that China Airlines Ltd. agreed to pay $40 million in criminal fines for its role in a conspiracy to fix prices in the air cargo industry on flights to and from the US between 2000 and 2006. The plea agreement is subject to court approval.

Air Nostrum CEO Carlos Bertomeu said he is confident the carrier will post a profit this year although yields, particularly on the Spanish domestic routes, remain depressed.

News from Travel Technology Update: Southwest Airlines has narrowed its choice of a new reservations platform to “two players,” chief executive officer Gary Kelly said.

Southwest Airlines has narrowed its choice of a new reservations platform to “two players,” chief executive officer Gary Kelly said.

US Dept. of Justice announced Monday that China Airlines Ltd. agreed to pay $40 million in criminal fines for its role in a conspiracy to fix prices in the air cargo industry on flights to and from the US between 2000 and 2006. The plea agreement is subject to court approval.

Tianjin Airlines will launch its first international route with services to Tianjin–Hohhot–Ulan Bator on Oct. 19. The Hainan Airlines subsidiary was originally launched in June 2007 under the name of Grand China Express Airlines ( ATW Daily News, June 15, 2009).

ATR won an order from Caribbean Airlines for nine 72-600 aircraft, with deliveries starting in late 2011. The order is valued at $200 million. The aircraft will be configured with 68 seats, featuring ATR’s new Armonia cabin.

Southwest Airlines on Monday morning announced an agreement to acquire Orlando-based AirTran Airways for $1.4 billion in cash and Southwest common stock in a deal that brings together the world's largest LCC with the third largest LCC in North America.

Southwest Airlines' acquisition of AirTran Airways for approximately $1.4 billion in cash and SWA stock (see item below) is expected to yield net annual synergies of more than $400 million by 2013, SWA said on Monday. One-time costs related to the acquisition and integration of AirTran are expected to be in the range of $300-$500 million.

Southwest Airlines on Monday morning announced an agreement to acquire Orlando-based AirTran Airways for $1.4 billion in cash and Southwest common stock in a deal that brings together the world's largest LCC with the third largest LCC in North America.

Afriqiyah Airways and Libyan Airlines expect to receive government approval to merge by Oct. 15, the Arab Air Carrier Organization reported.

LOT Polish Airlines subsidiary EuroLOT is in talks with ATR and Bombardier regarding an order for 14 ATR72-600s or Q400s, respectively, and a further six options to renew its ATR fleet, EuroLOT President and CEO Leszek Sieluk told ATW on the sidelines of the European Regions Airline Association AGM in Barcelona late last week.

Norwegian Air Shuttle announced Friday it plans to order wide-body aircraft as it gears up to begin its first long-haul flights in 2011. CEO Bjoern Kjos told Bloomberg that the carrier held talks with Airbus and Boeing and will choose between ordering the A350 or 787. Because there are delivery backlogs for both aircraft, Kjos said Norwegian may agree to take older models such as the A330 or 767. According to Bloomberg, the carrier is planning its first routes from Oslo Gardermoen and Stockholm Arlanda to New York JFK and Bangkok respecitvely in the second half of 2011.

Etihad Airways Head of Network Planning Imed Ben Abdallah said the carrier is pursuing a growth strategy "distinct" from Gulf rivals Emirates and Qatar Airways by focusing on developing point-to-point traffic to/from its Abu Dhabi base rather than pursuing broad based East-West transit traffic.

Ukraine International Airlines said it operated 2,157 flights and carried 228,000 passengers in August, up 10% compared to August 2009. Kenya Airways and Travelport jointly announced a global, full-content 5-yr. agreement for Galileo and Worldspan-connected users worldwide that will enable full access to KQ’s flights and fares.

The US National Transportation Safety Board said it is investigating a "near midair collision" near Minneapolis-St. Paul International on Sept. 16 between a US Airways A320 and a Bemidji Aviation Services Beech 99 freighter. The incident occurred shortly after the A320 took off from MSP en route to La Crosse under a 900 ft. ceiling and 10 mi. of visibility.

Air France said Thursday that it canceled 50% of its domestic and European flights to/from Paris Charles de Gaulle and Paris Orly as many of the country's air traffic controllers joined in a nationwide workers' strike to protest the French government's plan to raise the pension-benefit retirement age from 60 to 62. The airline said it operated its entire long-haul schedule. Multiple reports from France indicated that about 50% scheduled air traffic in the country was disrupted Thursday.

JetBlue Airways and ViaSat on Thursday signed an MOU to equip the carrier's fleet of more than 160 Embraer 190s and A320s with an inflight broadband product they called "the first of its kind" in commercial aviation. The two parties intend to sign a definitive agreement by the end of the year.

Oneworld announced Thursday that Russia's S7 Airlines will officially become a full member of the alliance on Nov. 15. The carrier, which began the process of joining oneworld last year with British Airways as its sponsor (ATW Daily News, May 27, 2009), will become the alliance's 11th member.

The planned merger between British Airways and Iberia under holding company International Airlines Group is nearing its final stage following Iberia’s approval Wednesday of BA’s £3.7 billion ($5.8 billion) pension deficit funding plan.

Flydubai announced it reached eight year sale/leaseback agreements worth more than $750 million with GECAS and Babcock and Brown Aircraft Management, covering nine yet-to-be-delivered 737s. The agreements will secure the carrier's financing requirements until June 2011. The agreement with GECAS covers six aircraft, while the one with BBAM is for three. GECAS has previously financed four aircraft for Flydubai and BBAM three.

Lufthansa Group announced Wednesday that, as expected, Christoph Franz will succeed Wolfgang Mayrhuber as chairman and CEO of the Lufthansa Group. Carsten Spohr will succeed Franz as CEO of Lufthansa German Airlines and has been appointed to the group’s Executive Board and Karl Ulrich Garnadt was named chairman and CEO of Lufthansa Cargo AG.

Air New Zealand warned that the Australian Competition and Consumer Commission rejection of its alliance with Virgin Blue could threaten the airline's future (ATW Daily News Sept. 13).