British Airways CEO Willie Walsh said he remains committed to the A380 and "could make a case to take this capacity earlier than scheduled." BA placed an order for 12 A380s in September 2007 as part of its long-term fleet modernization, with deliveries beginning in 2012. "There is a big cost reduction compared to the 747s [we currently operate]," he said yesterday. "With fuel prices over $70 and maybe heading to $100 a barrel the difference in unit cost becomes even more distinct," he told ATWOnline during a press conference at the SITA Air Transport IT Summit in Cannes.
Shanghai Airlines hopes to maintain its membership in Star Alliance even after its merger with China Eastern Airlines, which most likely will join SkyTeam, Chairman Zhou Chi said. He noted that Shanghai needs to discuss the matter with Star airlines. "Also, whether we can maintain it or not will be up to which global airline alliance CEA joins," he said. CEA Chairman Liu Shaoyong has said internally that the carrier prefers SkyTeam, which already includes China Southern Airlines.
ANA raised its firm 787 commitment to 55 aircraft from 50, according to a document released yesterday detailing the company's plan to issue 575 million new shares worth an estimated ¥182.62 billion ($1.9 billion) that will be used largely to finance new aircraft.
United Airlines told a group of congressmen and senators that it would delay by up to 60 days the implementation of a policy that denies certain agencies the right to use the carrier's credit card merchant accounts to process credit card sales for United tickets.
American Airlines parent AMR Corp. said it plans to issue $520.1 million in 20-year notes to finance the acquisition of 16 737-800s scheduled for delivery by the end of 2010 and to refinance four 777s. Separately, AA said it is closing down its Windsor, Conn., reservations center, according to reports.
Boeing said it completed the joining of the center wing box to the fuselage on the first 747-8 freighter in Everett and the assembly is being prepared to be connected to the forward and aft fuselage sections. "The airplane is coming together well and will be ready to fly later this year as planned," 747 Program VP and GM Mo Yahyavi said. The aircraft has garnered 78 orders.
East Star Airlines continues to expect to be acquired as a majority of its debtors prefer a takeover to bankruptcy, a spokesperson said at a Beijing news conference yesterday. "We have talked with almost all our debtors and 75% of them prefer takeover to bankruptcy, because a takeover offer can best safeguard their interests," the spokesperson said.
Austrian Minister of Finance Josef Proell said this week that "the situation facing Austrian Airlines Group is too serious to delay a decision from the EU regarding the takeover by Lufthansa," Der Standard reported as speculation increased that the EU may postpone its ruling.
News from Travel Technology Update: United Airlines told some travel agencies that they would "no longer have continued access to United's credit card merchant agreements," effective July 20. United said agents who received the notice but continued to process transactions using United's merchant facilities would receive $75 debit memos.
Kuwait Airways should be fully privatized by year end, Kuwaiti Minister of Communications Mohammed Al Busairi said, according to the Arab Air Carriers Org. The government will keep 20% while 35% will be made available to a single investor, 5% to airline staff and 40% to the public.
Continental Airlines and United Airlines told ATWOnline yesterday that they remain "confident" their application for antitrust immunity will be approved despite the vehement objections raised recently by the US Dept. of Justice.
Bombardier Aerospace announced the conversion of two options for Q400 NextGen turboprops held by Porter Airlines into firm orders, raising to 20 the number of commitments made by the Toronto-based carrier. The two firm orders are worth approximately $45 million, according to the manufacturer.
AWAS delivered a 737-700 to Aerovias de Integracion Regionales, the first of two winglet-equipped 737-700s that Colombia-based AIRES will take from AWAS this year.
Iberia will not be required to launch a full bid for Vueling Airlines following its merger with Clickair, Spanish stock market regulator CNMV ruled. Iberia will own 45.9% of the merged entity, exceeding the 30% threshold that normally triggers the obligation to make a full bid under domestic regulations. Completion of the two competitors' merger is expected in mid-July ( ATWOnline, June 29).
American Society for Testing and Materials approved a new specification that "details the properties and criteria necessary to control the manufacture and quality of alternative fuels for safe use in aviation," US FAA said. The effort was supported by the FAA/industry-sponsored Commercial Aviation Alternative Fuels Initiative. FAA Acting Assistant Administrator for Policy, Planning and the Environment Nancy LoBue said the step could lead to approval of a number of alternative fuels in the next few years.
Fokker Services said a change in the F100 flight manual now allows for just two cabin attendants in aircraft seating 100 passengers or fewer. Previously, three were required unless an operator received specific permission from local aviation authorities. Fokker said the adjustment could result in €150,000 €200,000 ($210,790-$281,050) in annual savings per aircraft.
London Heathrow Terminal 5's baggage system was operational again yesterday following a mechanical glitch that resulted in a shutdown lasting several hours Sunday. British Airways was forced to close check-in desks at midday and then reopen them about an hour later for passengers with carry-on bags. Flights continued to depart without passengers, with some 5,000 stranded, according to reports ( ATWOnline, May 4).
Air India will pay about half of its employees their June wages on July 3 rather than July 15, Aviation Industry Employees' Guild General Secretary George Abraham told Mint. AI had planned to defer payment owing to a cash shortage but relented after negotiations and a strike threat ( ATWOnline, May 4). A meeting regarding payments to remaining employees is scheduled for July 4.
OzJet Airlines of Australia announced its acquisition by Strategic Airlines, a charter and ACMI operator. Strategic said it will introduce an A320 on OzJet's Perth-Derby service by the end of September, replacing a chartered F100. Strategic ED Michael James said it will "retain some of the existing [OzJet] employee base for future company operations." In May, Strategic placed an A320-200 into service with Solomon Airlines on a Brisbane-Honiara flight. It reached agreement to lease an A330-200 from Swiss International Air Lines in April and will begin operating the aircraft in October.
Republic Airways Holdings airlines flew 851 million RPMs in May, down 5.2% from the year-ago month. Capacity dropped 4% to 1.12 billion ASMs and load factor slipped 1 point to 75.8%. Pinnacle Airlines flew 380.3 million RPMs in May, down 7.9% year-over-year, against a 4.4% fall in capacity to 509.9 million ASMs. Load factor dropped 2.8 points to 74.6%.
Royal Jordanian President and CEO Samer Majali will leave the airline Aug. 1, the company announced, saying only that he resigned "upon his request," while he told ATWOnline that "after 30 years at the airline and eight years as chief executive, I decided it was time for me to move on." He declined to comment on his future, which he said is "still under discussion." An announcement should come "soon, maybe in the next two weeks," he told this website.
Elbit Systems announced a $76 million deal with the Israeli Ministry of Transportation to supply its C-MUSIC system, an infrared countermeasure technology designed to protect commercial aircraft from missiles.
East Star Airlines remains committed to attracting new investors despite a Wuhan court's rejection of takeover offers from Shanghai YuField and China National Aviation Fuel Co.
The Clickair/Vueling merger is expected to be completed by mid-July, when the combined entity will start flying under a unified designator code and a single name (Vueling) and all Clickair assets will be transferred to the listed Vueling Airlines company.
