Airlines & Lessors

Aaron Karp
Bankrupt Northwest Airlines said in a court filing yesterday that it has agreed to sell seven DC-10-30s to ATA Airlines, a transaction NWA said would bring "relief" that will help it to reorganize and eventually emerge from Chapter 11 protection. The carrier plans to retire all its DC-10s by the end of next month and said it marketed the seven planes to "70 potential purchasers." ATA's offer, which was not revealed, "represents the best available transaction for the sale of the aircraft," it said in the filing.
Aircraft & Propulsion

Aaron Karp
Lufthansa's board yesterday approved orders for 20 747-8 Intercontinentals--the first of the variant to be sold by Boeing--plus 20 options and seven A340-600s, a total investment in long-haul planes valued at nearly $7 billion.
Aircraft & Propulsion

CAE signed contracts for three full flight simulators: A 777-300ER and an A330/A340 for Jet Airways and a 777-300ER for Air Canada. Both contracts include a suite of Simfinity training devices. The AC contract includes an option to provide a second 777 simulator. CAE valued the orders at list prices, including some buyer-furnished equipment, at C$51 million ($45 million).
Safety, Ops & Regulation

Nordam Group is expanding its Singapore Changi MRO facility, which it plans to triple in size to 185,000 sq. ft., "in response to a strong Asian repair market, increased workloads and development of new generation nacelle repairs."
Safety, Ops & Regulation

Aaron Karp
US Airways Chairman and CEO Doug Parker yesterday reiterated his company's commitment to its proposed $8 billion takeover of bankrupt Delta Air Lines, calling on DL's board and creditors' committee to begin due diligence on the merger offer. Parker's statement came a day after he told USA Today that the merger is "not going to happen" unless Delta management, which repeatedly has opposed the US plan, endorses the offer and works "together" with US to implement the merger. He said DL executives need to be convinced "that this plan makes sense."

Sandra Arnoult
BMED said it is getting a better-than-expected response from passengers for new A320/A321 services from London Heathrow to the West African cities of Dakar, Senegal and Freetown launched in late October. "We do research on route development and Senegal and Freetown came up as a good opportunity for our airline," BMED CEO David Richardson told ATWOnline this week at the British Embassy in Washington. He said Heathrow-West Africa bookings for December and January are "more than we thought.
Safety, Ops & Regulation

Anne Paylor
Ryanair extended the deadline for its offer for Aer Lingus shares once again, this time to the afternoon of Dec. 22, lending credence to EI CEO Dermot Mannion's acknowledgement at last week's Future of Air Transport conference in London that the LCC is "not going anywhere anytime soon." Ryanair issued the extension yesterday despite the fact that valid acceptances have been received for just 4.96 million shares, representing 0.93% of the issued share capital of the recently privatized flag carrier.

Continental Airlines converted 12 737NG orders to orders for the 737-900ER, raising its firm commitment for the new variant to 24. It has 60 737s on order with an option to convert more to the dash 900ER, which can fly up to 3,200 nm., or 500 nm. farther than the dash 900. It made the initial 12-aircraft conversion four months ago, becoming the first US carrier to order the type ( ATWOnline , Aug. 4) .
Aircraft & Propulsion

Geoffrey Thomas
It appears that those behind the proposed A$10 billion ($7.88 billion) bid to take Qantas private have restructured their offer to avoid oversight by Australia's Foreign Investment Review Board.

Boeing sold a combined three 787s, plus two options, yesterday to Arkia Israeli Airlines parent Nakash Group of America and business aviation firm PrviatAir of Switzerland. Nakash's order for two dash 9s and two options is worth $336 million at list prices and scheduled for delivery in 2012. It did not announce an engine choice for the aircraft, which will be used on routes to North America and the Far East. Arkia operates one 757-200, two 757-300s, four ATR 72-500s and five Dash 7s. PrivatAir's order had been listed on Boeing's website under an unidentified BBJ customer.
Aircraft & Propulsion

Mexico's airline industry is facing a significant overcapacity situation following the emergence of several new entrants, Aeromexico CEO Andres Conesa said last week at the ALTA Latin American Airline Leaders Forum. According to Conesa, Mexico currently has an average of eight airlines competing on city-pairs of more than 1 million annual passengers compared to four in the US. Furthermore, the top 10 busiest domestic routes have 1.8 times the number of seats required to meet demand versus 1.2 in the US.
Safety, Ops & Regulation

Sandra Arnoult
Island Air, mired in the battle for regional airline supremacy in Hawaii ( ATW , December 2006), announced a restructuring that includes cutting 65 employees, reducing its fleet by two aircraft and cutting five routes from its network. Along with Hawaiian Airlines and Aloha Airlines, Island has been engaged in a struggle for market share since the arrival in June of low-cost Mesa Air Group subsidiary go!.

Brian Straus
SkyEurope Airlines ended its first full fiscal year as a listed company deeper in the red as it doubled its net loss in the 12 months ended Sept. 30 to €57.3 million ($76.4 million) from the €28.6 million shed in the previous year. Revenues rose 41% to €158.6 million against expenses of €213.8 million, widening operating loss to €55.2 million from €33.6 million last year. Net loss in the fourth fiscal quarter totaled €7.1 million.

Brian Straus
JetBlue Airways reduced by 32 the number of firm Embraer 190 aircraft it will take from 2007 through 2010 in order to "manage capacity growth while retaining maximum flexibility," it said yesterday. It also said it anticipates 14%-17% ASM growth in 2007 rather than its originally forecast 18%-20%. Under a revised schedule announced Monday, the LCC will take 10 E-190s per year over the next four years instead of 18 per year. However, it added options for 23 during the period, up from zero.
Aircraft & Propulsion

Pratt & Whitney and Turkish Airlines Technic signed an MOU yesterday to build a "major" aircraft engine overhaul facility at Istanbul Sabiha Gokcen, site of Technic's HABOM MRO initiative ( ATWOnline , Nov. 6) . Financial terms were not disclosed. The joint venture will work on CFM56s and V2500s and expects to handle up to 200 engines annually.
Safety, Ops & Regulation

Delta Air Lines announced a "comprehensive settlement agreement" with the US Pension Benefit Guaranty Corp. that will "resolve all issues" related to the termination of its pilots' defined benefit pension plan ( ATWOnline , Sept. 6) . Under the terms, PBGC will be allowed a pre-petition unsecured claim against the airline of $2.2 billion and the debtors' reorganization plan will provide for the distribution of $225 million in senior unsecured notes to the agency.
Safety, Ops & Regulation

United Airlines named MD Sales-US West Region Dave Myrick as VP Sales-Americas.
Safety, Ops & Regulation

Austrian Airlines Group said it raised €367 million through the offer of up to 51.68 million bearer shares that concluded Dec. 1 ( ATWOnline , Nov. 29) with a final offer price of €7.10 per share. "With the successful completion of our transaction, we have taken an important step in our restructuring program," CEO Alfred Oetsch said in a statement.

Aer Lingus presented its unions with a 12-point cost-cutting plan Friday as part of its continuing effort to thwart Ryanair's floundering takeover bid and succeed as an independent carrier. According to press reports, EI has promised not to cut jobs without workers' consent. It also intends to simplify pay grades, enact standard work rules, renegotiate airport and ground handling contracts, introduce a fuel efficiency plan and look into the establishment of overseas bases, according to The Irish Times .
Safety, Ops & Regulation

Perry Flint
TAM Director of Institutional Relations Paulo Castello Branco has thrown cold water on recent reports that TAM is set to join one of the three major airline alliances.

South African Airways said it will lay off 1,000 employees, or approximately 9% of its workforce, next year in a cost-cutting measure, according to widespread South African press reports citing a statement from CEO Khaya Ngqula, who said the airline is enjoying increased traffic and revenue but cannot hold down its expenses. SAA's profit for the fiscal year ended March 31 plunged 90% year-over-year ( ATWOnline , July 7) . Separately, SAA announced that it will start serving Chicago in May.
Safety, Ops & Regulation

Cathy Buyck
The Italian government on Friday confirmed its intention to reduce its controlling interest in Alitalia in an effort to lift the carrier out of the red and into an alliance.

Northwest Airlines reported a $37 million consolidated October profit on $1.03 billion in revenues. Year-ago figures were not available, but the airline did lose $346 million in the six weeks following its entry into bankruptcy on Sept. 14, 2005. NWA's October expenses came to $980 million and its operating profit was $52 million. It has forecast a "modest profit" for 2006 excluding reorganization items ( ATWOnline , Oct. 3) .

Atlas Air Worldwide Holdings and DHL announced the finalization of DHL's acquisition of a 49% stake in AAWH subsidiary Polar Air Cargo and a 20-year blocked-space agreement announced in October ( ATWOnline , Oct. 17) . The stock purchase agreement was executed Nov. 28.
Safety, Ops & Regulation

SN Brussels Airlines will add a fifth daily frequency on its Brussels-Berlin Tempelhof route as it anticipates increased demand owing to Germany's January ascendancy to the EU presidency. Partner Virgin Express continues its daily service to Berlin Schoenefeld. Cargolux will add a fifth weekly flight to Budapest from Dec. 14. The new service will operate Taipei-Bangkok-Budapest-Luxembourg.
Safety, Ops & Regulation