Delta Air Lines revealed yesterday that it has made a comprehensive offer to Japan Airlines to switch from oneworld to SkyTeam that includes financial assistance and guarantees totaling $1 billion, saying it wants JAL to be "the face of Asia" for DL.
Aer Lingus yesterday threatened to "proceed to implement an alternative means" of delivering the required €97 million ($144.7 million) in cost savings if it cannot reach an agreement with unions by Nov. 30 ( ATWOnline, Nov. 10). It said it accepted an invitation from Ireland's National Implementation Body to mediate negotiations.
AirTran Airways said it will outfit its entire 138-aircraft fleet with 2.5-by-9-in. seatback advertisements over the next two weeks. Ads will be "easily changeable" and the first advertising partner is Mother Nature Network. Atlanta-based OnBoard Media Group provides the FAA-approved, patent-pending system, AirTran said, adding that it will be the first US airline to use it.
Embraer, GE, Azul Linhas Aereas Brasileiras and Amyris, a US/Brazilian biotechnology company, signed an MOU to evaluate the technical and sustainability aspects of Amyris's renewable jet fuel developed from existing sugar cane feedstock. The group is targeting a demonstration flight by early 2012 aboard an Azul E-190. The fuel already has been tested by the US Air Force Research Laboratory, Southwest Research Institute, GE Aviation and others, the companies said. The Brazilian government contributes funding to Amyris's renewable jet fuel production.
Adria Airways posted an €800,000 ($1.2 million) profit in the third quarter, its first surplus in 2009, but expects a full year in the red despite another profit in the current quarter, the Slovenian Press Agency reported yesterday. Adria also confirmed in a statement that it will become a full member of Star Alliance in January. The group announced elimination of the regional member designation (Blue1 and Croatia Airlines are the others) in June ( ATWOnline, June 9).
ARINC announced that its vMUSE passenger system qualified as a CUPPS Certified Platform. ARINC installed vMUSE technology as a CUPPS platform at Las Vegas McCarran in "a live operational environment" in cooperation with WestJet on Jan. 15. It now has checked in "more than 70,000 passengers" for WS and Continental Airlines and handled as many as 20 flights per day, ARINC said.
Claiming that the downturn "has led to behavioral changes among our customers which are likely to persist beyond the recovery," Air France KLM yesterday proposed an enlarged voluntary redundancy program affecting 1,700 jobs next year as it announced a €147 million ($219.3 million) loss in its fiscal second quarter ended Sept. 30, reversed from a €27 million surplus last year.
United Airlines announced the issue of $810 million in enhanced equipment trust certificates comprising two classes due in 2016 and 2017 respectively that it said will generate $290 million in new liquidity. It will use remaining proceeds to repay at par $493 million in equipment notes related to its 2000-02 trust certificates. It said principal payment obligations will be reduced by some $225 million next year and by $175 million in 2011.
Gulfstream International Airlines reported a $3.5 million third-quarter loss, a 13.5% improvement from the $4.1 million deficit posted in the year-ago quarter. The Fort Lauderdale-based regional suffered a 7.3% year-over-year decline in revenue to $19.5 million but its operating loss narrowed to $2.9 million from $4.4 million last year. Nine-month loss of $567,000 compared to an $8.9 million deficit in the year-ago period.
Bombardier's CSeries program took another step forward this week when construction began on a wing manufacturing facility in Belfast. The 600,000-sq.-ft. factory will be built in two phases, incorporating an existing structure. First test wing is expected in 2011. The first test fuselage barrel arrived at Bombardier's Saint-Laurent facility in August ( ATWOnline, Aug.
SAS Group Airlines flew 2.32 billion RPKs in October, down 13.5% from the year-ago month. Capacity fell 18.6% to 3.11 billion ASKs, lifting load factor 4.3 points to 74.3%. SAS Scandinavian Airlines flew 2.13 billion RPKs, down 14.6%, while capacity was cut 20.1% to 2.83 billion ASKs. Load factor rose 4.8 points to 75.4%. Turkish Airlines flew 33.08 billion RPKs through the first 10 months of 2009, up 15.1% year-over-year. Capacity rose 20.9% to 46.28 billion ASKs and load factor dropped 3.6 points to 71.5%.
Embraer yesterday announced Oman Air and Air Astana as new customers. Oman Air signed a contract for five E-175s plus five purchase rights, with four of the five firm aircraft slated to fly in WY colors and the fifth to be used by the Royal Omani Police. Deal is worth $177.5 million at list prices and could double if all five purchase rights are converted. First delivery is scheduled for the 2011 first quarter, Embraer said, adding that WY will be the Gulf region's first E-Jet operator. It will configure the aircraft with 12 business class and 60 economy seats.
Finnair was scheduled to resume "a little less than half" of its flight program today after pilots represented by the Finnish Airline Pilots' Assn. agreed to a settlement proposal submitted yesterday by a government mediator. AY was forced to cancel two full days of flying after pilots went on strike late Sunday/early Monday ( ATWOnline, Nov. 17). "In addition to structural changes, we achieved through this agreement significant short-term cost savings.
Jazeera Airways reported a KWD762,745 ($2.7 million) third-quarter profit, down 53.2% from the KWD1.6 million earned in the year-ago period, according to a filing with the Kuwait Stock Exchange cited by several press reports. Revenue rose 4% year-over-year to KWD15.9 million on a 65% lift in passenger numbers to 582,490.
EasyJet reported net income of £71.2 million ($119.2 million) for its fiscal year ended Sept. 30, down 14.4% from £83.2 million for the prior fiscal year, a performance that CEO Andy Harrison called "extremely resilient" given that the year encompassed "12 recessionary months." In a statement, the carrier added, "We have strengthened the fundamentals of the business with improvements in network quality, lower cost deals with key suppliers and enhancements to easyJet.com, giving easyJet a great platform for profitable growth."
LAN Airlines is "looking at all the possibilities around" for potential mergers or acquisitions, COO Ignacio Cueto told Bloomberg News. "We are window shopping," he said. "There is nothing concrete."
Air Berlin posted a €95.2 million ($142.4 million) profit in the third quarter, more than double the €45.1 million reported in the year-ago period, thanks in part to reduced foreign exchange losses and €20 million in proceeds from payments on a convertible bond. Revenue fell 8.2% year-over-year to €974 million "due to planned capacity reductions," AB said yesterday, but operating profit rose 33.5% to €118 million from €88.4 million in the 2008 third quarter.
Indian government has "assured support" and promised a INR4 billion ($86.5 million) equity infusion to Air India by January, parent National Aviation Co. of India said yesterday. "Further installments would be tied up to the milestones of savings effected on account of cost-cutting exercise[s] adopted by the national carrier at various levels," NACIL said, adding that it plans to "aggressively rationalize its fleet size and network. . .in the coming months" ( ATWOnline, Nov. 13).
US Transportation Security Administration issued a Notice of Proposed Rule Making that would "establish security requirements for maintenance and repair work conducted on aircraft and aircraft components at domestic and foreign repair stations" and make the repair stations subject to US Dept. of Homeland Security inspections that could lead to decertification.
CSA Czech Airlines named Marek Tybl, head pilot of its ATR fleet, as VP-flight operations and CSOB executive Philippe Moreels as VP-marketing and sales.
TAM flew 2.39 billion domestic RPKs in October, up 22.3% from the year-ago month, against a 9.6% lift in capacity to 3.31 billion ASKs. Load factor rose 7.6 points to 72.3%. International traffic was up 15.7% to 1.64 billion RPKs while capacity increased 15.2% to 2.09 billion ASKs and load factor rose 0.3 point to 78.1%. Copa Airlines flew 570.2 million RPMs in October, up 16.6% year-over-year. Capacity increased 7.3% to 696.3 million ASMs, lifting load factor 6.5 points to 81.9%.
United Airlines announced a partnership with ExpressJet Airlines under which the latter will operate 22 ERJ-145s under the United Express brand beginning May 1. ExpressJet will replace contract flying performed by other United Express partners whose contracts expired and were not renewed, including Mesa Air Group. United said ExpressJet offered "the most competitive bid" for the flying.
Airbus parent EADS suffered an €87 million ($130.2 million) third-quarter loss, reversed from a €679 million profit in the year-ago period, as unfavorable foreign exchange rates and slight decline in revenue dragged the aerospace giant back into the red following seven consecutive profitable quarters.
Oneworld is looking to increase further its footprint in Latin America, particularly in Brazil, where Gol is among the potential membership candidates with which it is in discussions, ATWOnline learned last week as the alliance welcomed Mexicana in Mexico City. "Brazil is an important market for us, and Gol is obviously a significant player. They have made great strides in the past two years and, like in India and China, we keep channels open to everyone to review continually our options and their strategy," oneworld Managing Partner John McCulloch said.
Senegal Airlines was launched officially at the Dubai Airshow Sunday, taking the place of defunct Air Senegal International, which suspended operations in April ( ATWOnline, June 3). The new airline will lease aircraft initially and is scheduled to begin flying "in early 2010," according to a statement. Founding capital is valued at $34 million, with private investors holding 64%, the government 16%, employees 5% and the remainder available to the public.
