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.
Austrian Airlines Group may have to extend its cost-cutting program aimed at reducing spending by €225 million ($314 million) and will look for additional savings by lowering capacity and expanding work-hr. reductions among other actions, Executive Board member Peter Malanik told ATWOnline. The original cost-saving plan will not be enough owing to the severity and duration of the economic downturn, he explained. "We cannot say if, and maybe when, we [will] have to lay off people," he said. "We are in talks with the unions about possible solutions."
Air France Industries and KLM Engineering & Maintenance are confident they will be able to maintain a positive operating result this year despite the downturn in the airline industry and consequent contraction of MRO contracts. "It will be a challenge, and results could be affected by the currency exchange rates, but we believe we are well positioned to sustain our operational performance," AFI President Alain Bassil told ATWOnline at the Paris Air Show earlier this month.
Qantas Friday became the latest customer to cancel and/or postpone orders for the Dreamliner, reaching an agreement with Boeing to drop orders for 15 787-9s scheduled for delivery in 2014-15, reducing its order book for the aircraft to 50, and also deferring 15 787-8s by four years.
Pratt & Whitney cut 200 salaried positions across its US-based operations (including approximately 170 in Connecticut) this week as part of a restructuring initiative announced in March by parent United Technologies ( ATWOnline, March 30). "It is clear that this is not a short-term economic downturn. Engine orders as well as maintenance, repair and overhaul activities are lower, requiring us to make difficult decisions," the company said.
Goodrich Corp. opened a 50,000-sq.-ft. facility at Tianjin Airport Industrial Park to support nacelle and thrust reverser original equipment as well as MRO activities. In addition, it will support "engine buildup and podding work" for the new A320 family final assembly line in Tianjin. The facility will serve as an interim location until Goodrich opens a permanent 170,000-sq.-ft. complex directly across from the FAL.
British Airways said that 6,940 employees, about 17% of its total workforce, have agreed to either unpaid leave, part-time work or unpaid work in a move that will save the airline up to £10 million. CEO Willie Walsh called it "a fantastic first response." Unpaid leave/work was available for 1-4 weeks, with the pay deduction spread over 3-6 months.
Air China launched its Hubei branch company yesterday, officially abandoning its pursuit of East Star Airlines and opening service from Wuhan to Guangzhou, Hangzhou and Shenzhen. CA is basing six aircraft at Wuhan and plans to introduce another half-dozen by year end, by which time it will have launched service to Xi'an, Urumqi, Nanjing, Shenyang, Macau (July) and Taipei (August).
Air France said yesterday that the body of Flight 447's captain and that of a flight attendant have been recovered by search crews. So far, 50 bodies have been found from among the 228 passengers and crew aboard the A330-200 that crashed some 360 mi. off Brazil's northeast coast on May 31 ( ATWOnline, June 18).
Royal Air Maroc will pull its own low-cost brand Atlas Blue and launch a regional airline as part of its strategy to fend off competition from no-frills carriers that has increased since the 2006 signing of the open skies agreement between Morocco and the EU.
Aeroflot investor Alexander Lebedev told RIA Novosti that the Russian flag carrier faces significant challenges as a result of the financial crisis and has launched insolvency proceedings for Aeroflot Cargo and is evaluating elimination of Aeroflot Don and Aeroflot Nord. "After the order of six MD-11Fs and three 737 freighters, SU Cargo made a loss of $140 million," Lebedev said, adding that SU plans to dissolve the cargo subsidiary and reintegrate it into the mainline. Freight fell 35.1% in the first quarter.
Cameroon Transport Minister Gounoukou Haounaye told the National Assembly that the government plans to spend CFA100 billion ($210.5 million) for the "purchase of three planes from Boeing," Reuters reported. Aircraft were not identified and will be placed with the new Cameroon Airlines Corp., established to replace defunct Cameroon Airlines. "I cannot give you a precise date when the company will begin flights, but I can assure you that it will be very soon," Haounaye said, adding that a strategic partner will own 51% of the new carrier.
Delta Air Lines' credit facility rating was downgraded yesterday by Fitch Ratings, which cited "the continued erosion of the airline's near-term cash flow generation" and the expectation that it will "report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand."
Lufthansa said its Passenger Airlines segment will present details of "a new profit saving program" on July 30, when the company releases its first-half results. "The financial crisis and its repercussions pose major challenges for airlines worldwide. Lufthansa is also impacted by the persistently weak demand development in both the passenger and freight businesses, structural changes in passengers' travel behavior and rising fuel prices," it said. At an investors day yesterday, LH said it has cut capacity by 2.6% this year and removed 23 aircraft from its fleet.
Ambassador John Bruton, head of the European Commission Delegation to the US, is raising concerns about a proposal in Congress to charge foreign visitors at least $10 each to fund a new quasi-governmental corporation that will help promote travel to the US. Congress currently is considering the Travel Promotion Act of 2009 (S 1023), "which would establish a nonprofit corporation to better communicate US entry policies to international travelers and promote leisure, business and scholarly travel," according to a statement from Bruton.
US FAA announced this week that its New York/New Jersey/Philadelphia Metropolitan Area Airspace Redesign "cleared a key legal barrier" after a three judge panel from the US Court of Appeals for the District of Columbia struck down a series of legal challenges. Decision means the agency can move ahead with the delay reduction plan, which had been opposed by the State of Connecticut as well as towns and counties in New York, New Jersey, Pennsylvania, Delaware and Connecticut and a citizens group.
Nippon Cargo Airlines said this week that it will abandon expansion plans until 2012 at the earliest, deciding to forego adding 16 747 freighters by 2013 as previously planned.
Emirates will fly the A380 to Paris Charles de Gaulle beginning Feb. 1. EK President Tim Clark said the daily service "is a result of such encouraging sales" and that "our plans to introduce this exceptional aircraft have been accelerated by almost a year which, in the current economic climate, is a major achievement." The carrier currently operates 777s to CDG twice-daily and its five A380s to Sydney, Auckland, Bangkok, Toronto and London Heathrow.
Republic Airways Holdings continued its shopping spree by acquiring Midwest Airlines in a deal announced late Tuesday, the same day it said it would buy Frontier Airlines. The Midwest transaction, subject to appropriate regulatory approvals, is expected to close within 4-6 weeks. Republic's offer for Frontier is valued at $108.8 million ( ATWOnline, June 24).
East Star Airlines may avoid bankruptcy thanks to a takeover offer from Shanghai YuField Industrial Co., which submitted its application along with airline stakeholder East Star Tourist Agency to the Wuhan court.
Lufthansa Systems completed implementation of its GroundSolutions/Mobile check-in solution at Austrian Airlines, enabling passengers to check in via mobile phone.
Virgin America CEO David Cush told Bloomberg News that "certainly one or more" American investors "will come to fruition before year end. . .These expressions are a lot firmer than they have been in the past. There is more capital available than there was six months ago.
ANA said yesterday that it is "disappointed" with the latest 787 program delay (see story above) and is seeking a new delivery schedule from Boeing "as quickly as possible."
