Airlines & Lessors

Ryanair announced an increase in its baggage fees effective Oct. 1 on the heels of a 20% drop in the average fare this year to €32 ($45.70). It also will allow passengers to check a second bag. Each of the two bags will have a 15-kg. limit. The first will cost £/€30 if checked in at the airport or £/€15 on the Internet and the second will cost £/€70 at the airport or £/€35 online. Sports equipment will cost £/€50 at the airport and £/€40 online and excess luggage will cost £/€20 per kg.

KD avia suspended ticket sales last week and Russia's federal air transport agency Rosaviatsiya plans to revoke the Kaliningrad-based airline's operating certificate on Sept. 14. Rosaviatsiya head Gennady Kurzenkov told ITAR-Tass that KD "has been notified in advance its certificate will be revoked.

Brian Straus
Air France announced plans to offer employees a voluntary redundancy plan that could result in as many as 1,500 departures. The airline said it informed the Comite Central d'Enterprise workers council of the decision and intends to discuss the matter this week "with a view to presenting a project voluntary redundancy plan to the CCE on Oct. 21."
Safety, Ops & Regulation

Moog said it expects to sign a definitive purchase agreement "very shortly" for GE Aviation Systems' flight control actuation product line in Wolverhampton, which GE acquired in May 2007 when it bought Smiths Aerospace ( ATWOnline, May 7, 2007). The Wolverhampton line furnishes high-lift actuation systems for the 777, 787, A330, A380 and military aircraft. It had $100 million in sales last year.
Safety, Ops & Regulation

China last week raised the domestic fuel price by CNY300 ($43.86) per ton, which is expected to result in a CNY2 billion increase in annual operating costs for the airline industry, according to China Securities Co. aviation analyst Li Lei. Fuel accounts for more than 40% of Chinese carriers' total operating expenses. According to Li's estimate, China Southern Airlines will suffer a CNY760 million profit reduction since 80% of its route network is domestic. China Eastern Airlines' bottom line will sink by CNY420 million and Air China's will drop by CNY460 million.
Safety, Ops & Regulation

Geoffrey Thomas
Singapore Airlines and Airbus reached an agreement to delay the delivery of eight A380s by 6-12 months. SIA's 12th through 19th aircraft will be affected by the new schedule, which will see the 12th delivered in October 2010 rather than April and the 19th arrive in January 2012 rather than January 2011.
Aircraft & Propulsion

Brian Straus
EasyJet yesterday announced a proposal to close its Nottingham East Midlands base and reduce flying at London Luton by 20% as it shifts capacity "to more profitable airports" in continental Europe.
Airports & Networks

Perry Flint
International Lease Finance Corp. Chairman Steven Udvar-Hazy told ATWOnline it is "premature to comment" on reports that he is preparing to leave the company he co-founded and later sold to American International Group in order to start a new leasing venture that may bid on some of ILFC's assets. The Wall Street Journal reported this week that Udvar-Hazy was in talks to buy part of ILFC and that a consortium consisting of Greenbriar Equity Group and Onex Partners was bidding on the company.
Aircraft & Propulsion

Embraer announced the delivery of the first of six 76-seat E-170s to British Airways. Aircraft will be operated by BA CityFlyer and is part of a December 2008 order that included five E-190s plus options ( ATWOnline, Dec. 23, 2008). The E-170 obtained steep approach certification in June 2007 to operate at London City. BA's first E-190 will arrive early next year.
Aircraft & Propulsion

Frontier Airlines said its bankruptcy reorganization plan was approved by an "overwhelming" majority of creditors and that the deadline for filing objections has passed. A confirmation hearing is scheduled for Sept. 10. President and CEO Sean Menke said the Denver-based carrier, acquired by Republic Airways Holdings, has "been able to completely restructure our business and reduce our costs to among the lowest in the industry." Its codeshare agreement with Midwest Airlines, also bought by Republic, went into effect Wednesday.
Safety, Ops & Regulation

Kurt Hofmann
Austrian Airline Group's acquisition by Lufthansa became official yesterday at a ceremony in Vienna as the German company took control of more than 90% of AAG's shares and insisted that the struggling carrier must become profitable as soon as possible.

United Airlines flew 11.03 billion consolidated RPMs in August, down 3.3% year-over-year, against a 6.2% cut in capacity to 12.8 billion ASMs. Load factor improved 2.5 points 86.1%. US Airways Group said August mainline and regional passenger RASM fell approximately 15% year-over-year and total RASM dropped 13%. Group airlines flew 5.69 billion consolidated RPMs, down 3.9%, against a 3.9% cut in capacity to 6.69 billion ASMs. Load factor fell 0.1 point to 85%.
Safety, Ops & Regulation

Continental Airlines said August estimated consolidated unit revenue fell 16.5%-17.5% from the year-ago month while mainline RASM dropped 17%-18%. CO flew 8.78 billion consolidated RPMs last month, a 3.9% drop, while capacity fell 6% to 10.23 billion ASMs. Load factor rose 1.9 points to 85.8%. AirTran Airways flew 1.85 billion RPMs in August, down 6.1% year-over-year, against a 3.4% cut in capacity to 2.18 billion ASMs. Load factor slipped 2.4 points to 84.9%.
Safety, Ops & Regulation

FAA will give US airlines until early January to replace the Thales speed probes on A330s and A340s with Goodrich probes, according to Bloomberg News, which cited a Federal Register notice it said is scheduled for publication today. EASA already has mandated the replacements be made on A330s/A340s operated by European airlines ( ATWOnline, Aug. 3) in the wake of June's Air France A330-200 accident ( ATWOnline, Sept. 1).
Safety, Ops & Regulation

Midwest Airlines will lay off an additional 59 flight crew employees as it replaces its 717s with Republic Airlines E-190s, according to a filing with the Wisconsin Dept. of Workforce Development cited by the Milwaukee Journal Sentinel. The new reductions will take effect Oct. 1, with all of the 717s scheduled to be replaced by Republic-staffed aircraft by December. Midwest cut about 100 positions last month ( ATWOnline, Aug.
Safety, Ops & Regulation

Oxford Aviation Academy signed an agreement to work in partnership with the newly formed Gulf Aviation Academy to create a new airline pilot training capability in Bahrain. As part of the agreement, a group of 20 students accepted into GAA's Cadet Pilot Training Program will commence ab initio training at Oxford this month, followed by flight training at OAA centers in Melbourne or Phoenix. Up to 100 students will enter training during the first year.
Safety, Ops & Regulation

Brian Straus
Cebu Pacific Air earned a PHP1.82 billion ($37.1 million) profit in the first half of 2009, putting it on course to improve upon the PHP15.7 million loss suffered in 2008, the Philippine carrier said. Half-year revenue rose 21.3% year-over-year to PHP11.39 billion as the airline took delivery of A320s and ATR 72-500s and added routes, frequencies and capacity.

Kurt Hofmann
SkyEurope Airlines, which suspended operations Monday, released a statement saying the trustee appointed by a Slovak court to oversee the LCC's restructuring "assessed that the company did not have sufficient funds for sustaining operations" and opted to file for bankruptcy.

Southwest Airlines yesterday unveiled EarlyBird Check-in, which allows passengers to board the aircraft prior to general check-in, but after Business Select customers and premium loyalty program members, for an extra $10 each way. SWA is known for its unreserved seating and for boarding passengers in groups. The EarlyBird service will be available up to 25 hr. prior to scheduled departure.
Safety, Ops & Regulation

Air Arabia received its IOSA registration.
Safety, Ops & Regulation

Gulf Air launched its five-times-weekly Bahrain-Baghdad service Monday and said it plans to launch flights to both Najaf and Erbil on Sept. 15. Routes to Basra and Solamnia will follow. It said it aims to be the "market leader" in Iraq.
Airports & Networks

Christine Boynton
Turkmenistan Airlines placed an order for three 737-700s worth approximately $192 million at list prices, Boeing announced yesterday. Delivery dates were not announced. The Ashgabat-based carrier, established in 1991, currently operates 717s, 737 Classics and NGs, 757s and one 767, according to the manufacturer. In March 2008 it ordered two 737-900ERs and one 737-700, and it signed up for one 777 two months earlier.
Aircraft & Propulsion

Hawaiian Airlines will start charging $10 for the first checked bag on inter-island flights beginning Sept. 14. "Our costs continue to rise and fares have simply not kept pace. We've held the line on this fee as long as possible, but have to remain competitive," Senior VP-Marketing and Sales Glenn Taniguchi said. Premium loyalty program members, business class passengers and those traveling on international tickets including points in Hawaii are exempt.
Safety, Ops & Regulation

CIT Aerospace said it delivered 14 new and used aircraft to airline customers in the second quarter.
Safety, Ops & Regulation

Finavia, Finland's state-owned air navigation services provider and airports operator, said its board approved discounts on airport, air navigation and security charges for commercial air traffic. The discounts, effective Sept. 1 for the remainder of 2009, will be "approximately 10%." Discounts for 2010 and 2011 will be decided upon later. According to a statement, "the purpose of the discount policy is to improve the operating preconditions of air traffic, especially domestic traffic, which is currently facing challenging times."
Safety, Ops & Regulation