SAS Group announced it reached a final agreement that will result in SAS divesting its 49% stake in Tallinn-based Estonian Air to the Estonian government ( ATW Daily News, June 7).Under a deal announced Friday, the Estonian government will provide approximately SEK200 million ($28.3 million) in a new rights issue and SAS will convert approximately SEK20 million in loans into equity.
Ethiopian Airlines named COO Tewolde Mariam CEO-designate, saying he will officially replace retiring CEO Girma Wake on Jan.1, 2011. Mariam has been with the airline in various capacities for 25 years. Wake has been CEO since February 2004 and has successfully led one of the most ambitious growth periods in the company's history ( ATW Daily News, Jan. 21).
United Airlines and Continental Airlines said Friday that each carrier's stockholders overwhelming voted to approve the companies' merger, and stated that the way is cleared for the all-stock transaction to close by Oct. 1.
Cathay Pacific Airways has firmed up its previously announced commitment for 30 A350s ( ATW Daily News, Aug. 5). The purchase was finalized in Hong Kong Thursday by CX CEO Tony Tyler and Airbus COO-Customers John Leahy. Cathay will use the A350s on routes to Europe as it replaces its A340 fleet and grows its 777-300ER fleet, which is dedicated to longer-range US routes.
SAS's board of directors named Rickard Gustafson the airline's new president and CEO. Gustafson, 46, will replace Mats Jansson, who will step down Oct.1. "Rickard Gustafson is an experienced leader, with extensive international experience, who has demonstrated that he can generate good results....The entire board agrees that Gustafson is the right person to take on the challenges in SAS, to continue the implementation of the Core SAS strategy and ensure profitable growth," said SAS Chairman Fritz Schur.
ICAO's 37th General Assembly, which meets Sept. 28-Oct. 8 in Montreal, will attempt to achieve a unified position on aviation and emissions ahead of the upcoming UNFCCC COP16 meeting in Cancun in late November. But the organization will be challenged, given the differing negotiating positions held by key stakeholders as outlined by Air Transport Action Group Executive Director Paul Steele Thursday at the Air Transport Action Group 5th Aviation & Environment Summit in Geneva.
Vueling Airlines flew 1.21 billion RPKs in August, an 8.6% increase year-over-year. Capacity jumped 12.1% to 1.47 billion ASKs and load factor fell 2.6 points to 82.1%. WestJet operated 1.44 billion RPMs in August, up 8.2% on the year-ago month. Capacity climbed 11.3% to 1.75 billion ASMs and load factor fell 2.3 points to 82.2%.
Air France announced it has completed retrofitting 31 of its 37 A320 family aircraft with new seats that were jointly designed by AF and Recaro to offer an additional 2 to 3 in. of legroom (pitch remains at 32-in. depending on the aircraft) and a 15-degree recline. The seat is 40% lighter compared to the older seat, representing an average of 750 kg. per aircraft, which the airline said enables it to reduce fuel consumption by 1,700 tonnes per year and CO2 emissions by 5,200 tonnes annually.
Germanwings, a subsidiary of Lufthansa, announced it is considering changes to several routes as a result of the country’s new “ecological tax” on air travelers, a GWI spokesman told ATW (ATW Daily News, Sept. 2).
Canadian regional Jazz Air announced Tuesday that its 43 crew schedulers represented by CAW ratified the tentative labor agreement that was reached Sept. 9 ( ATW Daily News, Sept. 10). The agreement covers a 3-yr. period expiring June 30, 2012. Jazz President and CEO Joseph Randell said, "The conclusion of this agreement marks the end of the negotiation process with all our labor groups."
Allegiant Travel Company, parent of Las Vegas-based leisure carrier Allegiant Air, said it will increase the capacity of its 57 MD-80s from 150 seats to 166 seats. It said it will invest $50 million in the retrofit. The carrier's three 130-seat MD-87s will not be reconfigured.
Continental Airlines and United Airlines reached an agreement with the Ohio attorney general that stipulates a post-merger CO/UA will "maintain specified levels of air service" at Cleveland International, the airlines said in a joint statement.
Aer Lingus CEO Christoph Mueller confirmed that EI has shelved its low-cost model and will not revert to offering uneconomically low fares to stimulate demand.
China Airlines on Tuesday signed an "adherence agreement" with SkyTeam in Taipei, signaling the start of a joining process that will likely lead to it gaining full membership in the alliance by mid-2011 (ATW Daily News, Sept. 13).
LCC Viva Macau declared bankruptcy following a meeting with over 160 of the airline's creditors, the Macau Daily Times reported Monday. The carrier already had grounded its operations earlier this year after its aircraft were reposed by lessors and its AOC was revoked, and the bankruptcy filing likely marks its final death knell. The Times reported that the airline's debt is estimated at MOP304 million ($38 million) with no assets. It is uncertain whether creditors will be able to collect.
Hong Kong Airlines has postponed opening new routes to Istanbul and Paris Charles de Gaulle from Hong Kong this year and instead will focus on launching services to Tokyo Haneda on Oct. 31 and Taipei in November. HKA Chairman Yang Jianhong said the decision was owing to fleet expansion and he reiterated the carrier’s commitment to long-haul market expansion remained unchanged ( ATW Daily News, June 16).
Japan Airlines said Monday it reached a stock transfer agreement with Hamakyorex, which owns and manages cargo distribution centers, to sell the company its 72% stake in JAL Logistics. The move is part of JAL's continuing effort "to achieve a swift and fundamental reform" via its ongoing bankruptcy reorganization process. Selling off subsidiaries is a key plank of its aggressive restructuring plan ( ATW Daily News, Sept. 1).
Virgin Group Chairman Richard Branson hinted on Australian radio Sunday that Virgin Blue might terminate all flights to New Zealand following the Australian Competition and Consumer Commission’s draft ruling rejecting the planned Virgin Blue-Air New Zealand alliance.
Continental Airlines announced it reached a tentative agreement on a new labor contract with IBT, which represents 3,700 aircraft maintenance technicians and related employees. In a statement Friday, CO said the agreement will be voted on for ratification in the coming weeks. "This is a good agreement that recognizes the hard work of our technicians," said Senior VP-Human Resources and Labor Relations Mike Bonds.
Air India plans to shut down its European hub in Frankfurt by Oct. 31. COO Gustav Baldauf told ATW AI's hub at FRA, which was established last year, is inefficient. Five of its 777-300ERs land at the airport around the same time and there are not enough available gate positions. "For the quality we get, FRA is too expensive," he said.
Virgin America reported a second-quarter net loss of $15.5 million, improved 1.6% from a $15.8 million deficit in the year-ago period, on a 35.7% rise in revenue to $184.4 million. Pointing to the carrier's $430,000 operating loss for the period, significantly narrowed from a $5.3 million operating loss last year, President and CEO David Cush said that "top line progress continues to exceed our expectations as a young and growing airline." He added that the San Francisco-based company is "on track" to achieve "a full year operating profit in 2010."
In a filing with the Shanghai Stock Exchange Friday, Air China said it had agreed to buy four 777-300ERs valued at $1.15 billion to expand its fleet's capacity.
