British Airways on Friday made a new offer to the Unite union in what it called "a fresh attempt to end the current dispute" with its flight attendants that has led to 22 days of strikes this year. The offer was handed over to the UK's Advisory, Conciliation and Arbitration Service, which previously stated that it had been unable to broker a deal between the sides ( ATW Daily News, June 18).
Air China said Friday it has reached agreement with Boeing on an order for 20 737-800s to be delivered 2013-15. The Beijing-based carrier revealed the order in a statement to the Shanghai Stock Exchange. It said the order is worth about $1.4 billion at list prices, but noted that it received "a significant price concession" from the manufacturer. CA said the order would increase its capacity by 5%.
United Airlines and Continental Airlines pilots on Friday criticized management at the airlines for "unwillingness to compromise" on issues "that have little financial impact" related to the impending merger of the carriers.
Southwest Airlines Executive VP and COO Mike Van de Ven yesterday called on aircraft manufacturers to develop a new narrowbody aircraft, saying that today's 737NG and A320s are unable to deliver the "step change" in efficiency that the airline industry needs.
Virgin America reported a first-quarter net loss of $35.5 million, narrowed from a year-ago deficit of $40.3 million, but said it remains on track for a full-year operating profit. "With a revenue increase of nearly 50% year-over-year and a unique service that is continuing to hit the mark with consumers, we're pleased with our results," President and CEO David Cush said. The carrier generated $146.8 million in revenue during the quarter, up 45.7% year-over-year.
Lufthansa Technik and Volvo Aero signed a cooperation agreement aimed at jointly developing "new repair methods for mainly structural parts of large commercial aircraft engines," LHT said. Both companies will cooperate in the certification processes, the repair services and the marketing and sales activities for the partnership. Repairs will be made at Volvo Aero's facilities in Trollhattan and at LHT's facilities in Hamburg.
Virgin Atlantic Airways Flight VS001's 300 passengers sat stranded on the tarmac for almost 5 hr. Tuesday night at Bradley International in Hartford, Conn., to which the London-Newark flight was diverted owing to bad weather. The aircraft landed at BDL at 8:20 p.m. and did not deplane until around 1 a.m. Passengers allegedly were without food, water or air conditioning for much of the time, according to multiple media reports. The Associated Press reported that at least three people were taken away by ambulance. Passengers were bused to Newark yesterday morning.
Ryanair intends to increase its already strong presence in the Spanish market further with the opening of a base at Valencia in November with two 737-800s and 10 new routes, enlarging its network from the airport to 31 destinations. The LCC confirmed that it agreed to reestablish a base at VLC after Spanish "Minster for Tourism Belen Juste committed to a joint promotion and advertising program which will help reverse Valencia Airport's collapsing traffic, which fell by 18% or almost 1 million passengers, in 2009."
US airline passenger revenue soared 21% in May compared to May 2009 based on data provided by a sample of its member carriers, the Air Transport Assn. reported. It marked the fifth consecutive month of year-over-year improvement and the strongest gain in 2010. May passenger numbers rose 2% year-over-year while average yield jumped 17%. International passenger revenue grew 36%, led by a 51% gain in transpacific markets.
British Airways announced that it reached agreement with the trustees of its two main pension plans, New Airways Pension Scheme and Airways Pension Scheme, concerning a recovery plan to address the plans' combined deficit that stood at £2.7 billion ($4 billion) as of March 31, down from £3.7 billion one year earlier.
SkyTeam member airline CEOs meeting in New York this week to mark the alliance's 10th anniversary formally signed an agreement with China Eastern Airlines to begin its process for becoming a full member and upgraded the status of Air Europa and Kenya Airways from associate to full membership.
Malaysia Airlines said yesterday that it has made clear to Airbus its disappointment in the delayed delivery of its A380s and is seriously considering canceling its order. MAS has six A380s on order and originally was supposed to receive its first in May 2008. CEO Azmil Zahruddin told reporters yesterday following the carrier's AGM that the first A380 now is scheduled to be delivered in the 2012 second quarter, its fourth delivery date. "MAS hopes to make a decision this year on whether we'll cancel the A380 orders," he said. "We are not happy."
Qatar Airways announced that its expansion is continuing "with vigor" and it will launch five new routes from its base in Doha to Europe and Asia over a four-month period starting in October.
Australia's Virgin Blue is planning to change its name, introduce a business class and operate domestic routes with larger aircraft in a bid to become a more potent, direct competitor to Qantas, according to sources at the Brisbane-based carrier.
Swiss International Air Lines took delivery of its seventh A330-300 last week. The carrier expects its last two A330-300s on order for delivery to arrive in August and December respectively. The aircraft are replacing Swiss's A330-200s.
United Airlines launched its first-ever service to Africa over the weekend with a 767 flying from Washington Dulles to Accra. The service between the US and Ghanian capitals will be daily. "With the addition of service to Accra, United now offers customers nonstop service to points on six continents," Senior VP-Worldwide Sales and Marketing Jeff Foland said.
Calgary-based WestJet announced Friday that it cut its full-price fares by an average of 25% across its entire 68-city North American and Caribbean network. The successful LCC, which has an estimated 35%-40% share of the Canadian domestic market, said the introduction of "everyday value fares" will result in lower fares across its entire schedule up to 330 days ahead of departure.
China's airlines reported collective net income of CNY1.23 billion ($180 million) for the month of May owing to continuing domestic economic growth, according to CAAC.
Japan Airlines and American Airlines applied Friday to the Japanese Transport Ministry for antitrust immunity to operate as if they are one airline for commercial purposes on flights between North America and Asia, while ANA, United Airlines and Continental Airlines filed a similar application for ATI with the ministry.
Aer Lingus is "encouraged" by its financial performance in the first five months of the year but remains "cautious" about its full-year performanceowing to concerns about the broader economic environment, Chairman Colm Barrington told shareholders Friday at the airline's AGM.
Ryanair made further changes to its baggage policy, offering passengers the choice of buying a larger (up to 20 kg.) checked bag allowance for £25/€25 as an alternative to its standard 15 kg. allowance that costs £15/€15. In the July-August peak season, the charges will be £30/€30 and £20/€20 for a first bag respectively. A second checked bag of up to 15 kg. can be purchased for £35/€35 off-season or £40/€40 in summer.
