B/E Aerospace received an FAA STC for installation of its Overhead Flight Crew Rest on British Airways' 777-200ERs, replacing the B/E Aerospace Overhead Attendants Rest. The OFCR order is valued at $15 million.
FedEx said that it will cancel 15 firm orders for 777Fs if a proposed US House of Representatives bill that calls for the delivery giant to be governed by the National Labor Relations Act rather than the Railway Labor Act becomes law.
Shanghai Airlines reported a 2008 net loss of CNY1.25 billion ($182.8 million), nearly tripling a net deficit of CNY435.12 million in 2007, on an 8.6% lift in revenue to CNY13.37 billion.
Frontier Airlines Holdings, which is operating under bankruptcy protection, posted a $3.2 million net loss and a $1.5 million operating profit in February, numbers it said bode well for its effort to secure financing to exit Chapter 11.
US Regional airlines enjoyed robust growth and financial returns over the past several years when mainline partners reduced capacity and outsourced flying, but those days may be coming to an end, Delta Connection Senior VP Don Bornhorst told ATWOnline. "In the old days, capacity pulldowns meant more flying for the regionals," he said, but prospects for regional airline growth are limited this year as capacity cutbacks by mainline carriers likely will be "mirrored" by their regional partners.
UK Secretary for Transport Geoff Hoon said the government would be "completely at ease" if the merged British Airways and Iberia chose to locate their headquarters in Spain, The Times reported ( ATWOnline, Feb. 3).
Eurocontrol said the number of flights in Europe this year will decrease 8.1%-1.4% from 2008, with a "most likely case" of 4.9%, and demand is not expected to recover this year. It said drops will occur across all sectors of the industry, including low-cost airlines, which operated 5% fewer flights last month than in February 2008.
Air China parent CNAC intends to move forward with its acquisition of a stake in East Star Airlines despite the Wuhan-based carrier's "strong opposition" to its "forceful purchase."
Alaska Airlines flew 1.27 billion RPMs in February, down 10.2% year-over-year. Capacity dropped 10.5% to 1.73 billion ASMs, lifting load factor 0.2 point to 73.5%. Allegiant Air flew 351.2 million RPMs in February, a 6.3% increase over the year-ago month. Capacity rose 1.9% to 401.6 million ASMs and load factor climbed 3.5 points to 87.4%. Copa Airlines flew 485.6 million RPMs in February, up 9.9% from the year-ago month. Capacity rose 15.7% to 627.2 million ASMs and load factor fell 4.1 points to 77.4%.
SR Technics and Air India announced that their existing maintenance contract covering Air India Express's CFM56-7B engines will expand to include CFM56-5Bs on AI's fleet of 27 A320 family aircraft (planned to increase to 43 by 2010). Extended contract will expire in May 2010 and contains an extension clause for an additional two years. Services will be performed at SR Technics' engine services center in Zurich.
US Airways expects to generate $400-$500 million this year in ancillary revenue, according to President Scott Kirby. Speaking yesterday at the airline's media day in Phoenix, Kirby said that after initial negative reaction, there has been "very little consumer pushback" to the new fees. Ancillary revenue contributed $165 million to US last year, with $116.5 million coming from the first-bag fee, $37.6 million from the second-bag fee, $5.3 million from the Choice Seats program and $5.7 million from increased beverage fees.
Greek government signed an agreement to sell Olympic Airlines' flight, maintenance and ground handling divisions to Marfin Investment Group, which should take over the carrier in October if the deal is approved by the country's parliament ( ATWOnline, March 11). It is worth a reported €177.2 million ($241.5 million). The new OA will employ some 4,000 workers, about half the current total.
Delta Air Lines and V Australia signed an interline agreement covering each carrier's transpacific flights and remaining networks. DL's Los Angeles-Sydney service begins July 1. V Australia signed an interline agreement with Northwest Airlines, now a DL subsidiary, last year ( ATWOnline, April 1, 2008).
A FedEx MD-11 en route from Guangzhou to Tokyo Narita crashed yesterday on landing in high winds, cartwheeling on the runway and catching fire, killing the two pilots. Video of the crash shows the aircraft landing hard, lifting back into the air briefly and then bouncing on its front and then rear ends. The left wing hit the runway, starting a fire as the MD-11 rolled. The crash occurred at 6:50 a.m. and closed the longer of NRT's two runways, forcing Japan Airlines and ANA to cancel at least 40 flights combined.
GE Aviation said it completed its acquisition of Airfoil Technologies International-Singapore with the purchase of Teleflex's 51% stake for $300 million. ATI-Singapore employs some 535 and repairs more than 2 million compressor airfoils per year, GE said.
Lufthansa Flight Training opened a simulator center in Munich yesterday. Swiss Aviation Training will operate its own E-190/195 simulator initially, with an LFT A320 simulator scheduled to enter operation in the coming weeks. An A330/A340 simulator will be running by year end.
Gol and Varig parent Gol Linhas Aereas Inteligentes swung to a BRL1.39 billion ($606.7 million) loss in 2008 from a BRL272.3 million profit the prior year, but said it "continues to evaluate expansion opportunities" while approving a BRL203.5 million capital increase.
LAN Airlines flew 2.46 billion RPKs in February, an 8.2% increase from the year-ago month. Capacity climbed 9.7% to 3.08 billion ASKs and load factor dipped 1.2 points to 80%. Aer Lingus flew 992 million RPKs in February, down 7.5% year-over-year. Capacity dropped 14.4% to 1.38 billion ASKs, lifting load factor 5.3 points to 72%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.2 billion RPMs in February, a 9.2% drop year-over-year. Capacity fell 9% to 1.61 billion ASMs and load factor slipped 0.1 point to 74.9%.
SkyTeam partners Air France KLM and Aeroflot were among the four groups filing official yet nonbinding expressions of interest in fellow alliance member CSA Czech Airlines, the Czech Finance Ministry announced. The Czech government is selling its 91.5% stake in the airline ( ATWOnline, March 4). Other interested parties are charter carrier Travel Service/Unimex Group and Odien, a private investor.
Republic Airways Holdings took control of 50% of Mokulele Airlines through a $3 million cash injection and the conversion of $3 million of its $8 million loan to the Hawaiian carrier ( ATWOnline, March 19). Mokulele CEO Bill Boyer was replaced by Republic VP-Strategic Alliances Scott Durgin. In response, Mesa Air Group announced yesterday that it will terminate the two-year-old codeshare agreement between its go! subsidiary and Mokulele.
Continental Airlines Chairman and CEO Larry Kellner told the Houston Chronicle that "if the government wanted to re-regulate the business, I wouldn't be opposed to it" and that "what we've got today doesn't work. It isn't creating a stable industry." He told the paper that managing labor costs was key and "the structure of the [Railway Labor Act] creates a very cumbersome process." Separately, CO received tentative approval from the US Dept.
Ethiopian Airlines reported a ETB515 million ($45.8 million) profit in its fiscal first half ended Dec. 31, up 9% from the year-ago semester, on a 54.8% surge in operating revenue to ETB6.7 billion. CEO Girma Wake said the carrier "remains optimistic that its performance will be sustained going forward, considering the strategic cost reduction efforts and improved operating procedures we have put in place."
United Airlines expects first-quarter consolidated passenger RASM to fall 11%-12% year-over-year, with mainline PRASM dropping 12.3%-13.3%, along with an $80 million cash loss on settled fuel hedge contracts.
Virgin America will begin charging passengers $15 for their first piece of checked luggage on travel booked from May 5. The second through 10th checked bags also will cost $15 each, replacing VX's old policy of $25 for the second bag and $50 each for subsequent pieces. First class passengers will be permitted to check two bags for free, and those purchasing VX's Main Cabin Select product will get one free bag. "Because we fly to primary airports, we mainly compete with the large network carriers, all of whom already charge this fee," VP-Planning and Sales Diana Walke explained.
