Japan Airlines likely won't reach an accord with a potential foreign investor until after it and the Japanese government settle on a firm restructuring plan for the carrier, according to multiple media reports.
Alitalia took delivery of another three new A320s, bringing the number in its fleet to 35. A further five will be delivered by year end. The three newest A320s replace three MD-80s. AZ's fleet renewal plan calls for arrival of a further 55 A320s and 12 A330s. The carrier's new A320s feature leather seats equipped with individual LCD screens. Separately, AZ opened its first business-class lounge at Rome Fiumicino's Terminal C.
Air Niugini, the Papua New Guinea flag carrier, placed a firm order for two Q400 NextGen turboprops valued at $92 million plus one option. "The Q400 NextGen aircraft follows in the footsteps of a long line of robust and reliable de Havilland and Bombardier turboprops that have served our airline very well over the years," CEO Wasantha Kumarasiri said. Bombardier now has taken firm orders for 363 Q400s with 257 delivered as of July 31.
Etihad Airways moved its thrice-daily London Heathrow-Abu Dhabi service from LHR's Terminal 3 to the new Terminal 4. The carrier is investing £200 million ($124.2 million) in its space at the new terminal, building a lounge, spa and shower facilities and installing Wi-Fi capability.
Air Berlin and subsidiary LTU reached a tentative agreement with the Vereinigung Cockpit pilots union on a new labor contract retroactive to Jan. 1, 2009. It includes a guarantee of no pilot layoffs through Dec. 31, 2010, when the contract will expire. The VC membership will vote on ratification at a Nov. 13 meeting.
Continental Airlines revealed last week that its September mainline RASM plunged an estimated 20%-21% year-over-year, larger than its August mainline year-over-year RASM drop of 17.9%, raising concern across the US industry that carriers could be in for a difficult autumn. The RASM numbers were particularly alarming given that its mainline load factor for the month was 82.2%, up 4.8 points compared to September 2008.
Malaysia Airlines' new MD and CEO Azmil Zahruddin told reporters Friday in Kuala Lumpur that the carrier will accelerate its "business transformation plan" with a focus on lowering costs while raising service standards.
TAP Maintenance and Engineering Brazil delivered two ERJ-145s formerly operated by Thai carrier PB Air to GECAS after performing a C check. The aircraft immediately went into operation with Passaredo Linhas Aereas.
SAS agreed to sell its 20% stake in bmi to Lufthansa-related UK holding company LHBD Holding, effectively giving LH full control over bmi when the transaction takes effect on Nov 1.
Frontier Airlines Holdings, parent of Frontier Airlines and Lynx Aviation, officially emerged from Chapter 11 bankruptcy protection yesterday and was acquired by Republic Airways Holdings as planned.
AirTran Airways said it entered into agreements with its principal credit facility lender and its largest credit card processor to extend and modify both its credit facility and its credit card processing arrangement, "resulting in enhanced liquidity and improved financial flexibility." The carrier did not place a specific value on the accords but said that it expects to end the current quarter with more than $400 million in unrestricted cash and short-term investments.
Etihad Airways completed its first European export credit agency-guaranteed transactions covering $233 million to finance the purchase of two A340-600s. In the first deal, HSBC Bank, acting as the mandated lead arranger, lender, facility agent, security trustee and hedge provider, will furnish financing valued at $122 million to the airline over 12 years. The second $111 million agreement was signed with Landesbank Baden-Wuerttemberg, which acted as mandated lead arranger, lender, facility agent and security trustee. Debt placement for this deal was undertaken by SkyBlue Capital LLC.
Saudi Arabian Airlines took delivery of its first A320, acquired under a long-term lease agreement with ALAFCO. It will deploy the aircraft from Riyadh to routes in the region as well as to Europe and to the Indian subcontinent.
Pratt & Whitney Canada said it will cut 250 employees by year end and additional 160 workers next year in order "to align with a projected decline in customer demand and weakness in the global aerospace market with no signs of a recovery in 2010." President John Saabas described the job reductions as necessary owing to "difficult times," adding, "We need to make strategic decisions and structural changes to remain competitive and preserve our future in the face of continuing economic headwinds." P&WC said it will consolidate its activities into "three key strategic manufacturin
Hanoi's Noi Ban International will get two new runways and other new facilities and its existing space will be renovated to handle 25 million annual passengers and 260,000 tons of cargo by 2020, the Vietnamese government said. The airport will be upgraded to A380 standards. Tan Son Nhut International in Ho Chi Min City will be expanded and improved to handle 23.5 million passengers and 600,000 tons of cargo a year by 2015. Improvements also will be made to the airports serving Cam Rahn, Chu Lai, Cat Bi, Danang and Phu Bai.
United Airlines Chairman and CEO Glenn Tilton told reporters in Washington yesterday that the company "expects to get further information for manufacturers by the end of the year" regarding its request for proposals to Airbus and Boeing covering a large order for widebody aircraft ( ATWOnline, June 5). Separately, UA announced yesterday that it plans to offer 19 million shares of its common stock in an underwritten registered public offering.
Air India pilots ended their four-day wildcat strike yesterday after the government overruled management's plan for massive wage cuts. Prime Minister Manmohan Singh and Civil Aviation Minister Praful Patel reportedly told AI that the pay cuts would have to be withdrawn and "productivity-linked incentives" should be paid to 7,000 of its highest-paid workers on Oct. 7, the Economic Times reported. The pilot dispute revolved around the airline's decision to ax those incentive payments, which account for 50% of the pay of pilots and other management, to cut costs.
China Southern Airlines decided to sell its 50% stake in MTU Maintainance Zhuhai to its parent China Southern Air Holding Co. for CNY1.61 billion ($235.5 million) in an effort to concentrate on its mainline business and reduce its debt. The deal requires approval from CZ's minority shareholders and relevant government organs. MTU Maintainance Zhuhai was launched in 2001 with registered capital of $63.1 million. CZ holds 50% while MTU Aero Engines GmbH owns the other half.
Austrian Airlines Group said it will present its "Austrian Airlines Next Generation" plan on Oct. 6 in Vienna. "We'll announce the concept and strategy for how the company will be integrated into Lufthansa, where help is needed from LH and so on," a spokesperson told ATWOnline.
Air New Zealand 777-300ER was deployed to ferry supplies to Samoa to help with tsunami recovery efforts. GM-Airline Operations David Morgan said the aircraft left for Samoa yesterday stocked with several hundred blankets, more than 1,000 t-shirts and basic amenity packs with items such as toothbrushes and toothpaste.
United Airlines Chairman and CEO Glenn Tilton, in his role as chairman of the Air Transport Assn., yesterday called for large-scale government loans, loan guarantees and grants to jumpstart development and mass production of alternative fuels, including biofuels for the airline industry.
Japanese Transport Minister Seiji Maehara moved to calm nerves over the fate of Japan Airlines, saying at a news conference that he believes JAL can revive itself on its own but that "the government is ready to step in" and offer its support for the loss-making carrier. He told reporters he wanted to quell "excessive anxiety" about the airline, which is restructuring under government supervision after receiving a state-backed loan ( ATWOnline, Sept. 29).
British Airways CEO Willie Walsh described the carrier's new all-business-class A318 New York JFK-London City service, launched Tuesday, as a "vote of confidence in the future." He told ATWOnline, "It's a bold step. We are putting down a marker that we are confident about the future." He said the service will be profitable if it achieves a 70% load factor.
Air India cancelled at least 30 flights yesterday and took the unusual step of suspending bookings for the next 15 days as a standoff between pilots and management extended to its fourth day. About 400 pilots have engaged in a wildcat work action since Friday to protest not being allowed to form a union. "We have deployed additional staff at airports across the country and will ensure that passengers are shifted to flights operated by other airlines," an AI official told India's Economic Times.
