China Eastern Airlines is expected to hold 65% of its new Kunming-based joint venture with the Yunnan provincial government, with which it signed an agreement Sunday. The government will hold the remainder and is investing both real estate and cash. The new carrier will not fly with CEA's logo or code but will use the green logo of Yunnan Airlines, the predecessor of CEA's local branch company that merged with the larger airline in 2002. It will adopt its own name and flight code.
China Southern Airlines received government approval for a private placement of 721.2 million A shares worth more than CNY2.28 billion ($333.4 million), SinoCast reported. Proceeds will be used to pay off loans and are part of a capital increase that also will include 721.2 million H shares. Both reportedly will be subscribed to by an overseas subsidiary of CZ parent China Southern Air Holding Co.
Air Malta is enjoying a reasonably stable ride through the current industry crisis thanks to decisions made several years ago, but it remains weighed down by excess staff, CEO Joe Cappello told ATWOnline recently. "Thanks to increased efficiency and productivity, today our cost base is significantly lower than what it was six years ago. Had these changes not been implemented, KM would not have had a fighting chance to survive in the turbulent aviation business, especially in these last couple of years," he said.
SkyTeam said the first level of its first co-branded alliance lounge, located in London Heathrow's Terminal 4, will open Thursday. Facility eventually will consist of two floors covering more than 1,600 sq. m. Second level is scheduled to open in November. Eligible passengers on Delta Air Lines, KLM, Continental Airlines and Kenya Airways will have access immediately, with more coming as additional SkyTeam carriers shift operations to T4.
Flydubai's inaugural flight departed from Dubai International's Terminal 2 yesterday morning on its way to Beirut, marking "an opening of the skies for low-cost travel to and from the Emirate," the startup said. The 737-800, operating as FZ157, carried 189 passengers and arrived in Lebanon a little more than 3.5 hr. later.
AAR was selected by IAI's Bedek Aviation Group to provide the cargo system for its 767-300 conversion program. AAR and IAI developed a GMF system for the 767-200 conversion in 2002.
Search aircraft scoured wide swaths of the South Atlantic yesterday in search of any trace of the Air France A330-200 that lost contact with Brazilian ATC after possibly encountering a severe thunderstorm Sunday night. AF Flight 447 departed Rio de Janeiro Galeao at 7:30 p.m. local time May 31 carrying 216 passengers and 12 crew. Contact with the aircraft was lost approximately 3.5 hr. later, shortly after the pilots reported encountering heavy turbulence some 360 mi. off Brazil's northeast coast, according to press reports.
AIR NOSTRUM CHIEF EXECUTIVE CARLOS BERTOMEU TAKES A deep, long draw from his Montecristo cigar before responding to the inevitable question about the kind of year the airline is having: "2009 will be point of inflection in our history of steady growth and profitability," he says with noticeable regret in his voice.
United Airlines told some travel agencies that they would " no longer have continued access to United's credit card merchant agreements," effective July 20. The carrier told the agencies that if customers wish to pay by credit card, the agencies should process the transactions under their own merchant agreements and settle in cash with United through the Airlines Reporting Corp. United said agents who received the notice but continued to process transactions using United's merchant facilities would receive $75 debit memos.
TO BE OR NOT TO BE: THAT'S THE QUESTION facing China's smaller privately run carriers. Clearly, Chengdu-based United Eagle Airlines and Wuhan-based East Star Airlines chose no as the answer. United Eagle had to sell a controlling stake to Sichuan Airlines in exchange for a capital injection of CNY200 million ($29.2 million). East Star was forced by CAAC to suspend operations and has gone through bankruptcy owing to its heavy debt burden.
PHOTO CREDIT: Werner Kruger, Lufthansa Lufthansa Cargo AG launched an "information offensive" to retain nighttime cargo flights at Frankfurt Airport after local officials said they were considering a ban against them.
US airlines say they made exactly the right moves in the first half of last year to prepare for the global financial downturn--even though they had no idea it was coming. The industry scrambled to counter ballooning fuel costs amid predictions that per-barrel crude oil prices, already at $150, would hit $200 or
Virgin Blue, the Australian low-cost carrier, will migrate to Navitaire's New Skies platform later this year. Virgin Blue has been using Navitaire's Open Skies system since its launch.
Air New Zealand will cut capacity an additional 3% in the fiscal year ending June 30, 2010, and said it has "entered into discussions with unions on how to minimize any potential job losses. . .A review of crewing requirements to meet existing customer demand has identified a potential surplus of up to 40 cabin crew and pilots in regional airline and domestic jet operations."
WestJet intends to cut C$25 million ($22.3 million) from its cost base over the next six months, President and CEO Sean Durfy said Friday at the carrier's investor day, available via webcast. "We have to really look at the cost because, as I said, revenues are coming down and our cost structure is staying relatively flat, so we are getting a margin squeeze," he explained.
Atlantic Airways earned a pre-tax profit of DKK14 million ($2.6 million) in the first quarter, reversed from a DKK2.5 million loss in the year-ago period. The Faroese flag carrier reported a 9.8% year-over-year fall in revenue to DKK101 million but cut its costs by 11.8%. Scheduled passenger numbers have dropped 8% in the year's first four months, it said. Atlantic currently operates BAe 146s and plans to acquire A319s beginning in 2011.
China Eastern Airlines has partnered with the Yunnan provincial government to launch a joint venture based on CEA's Yunnan branch subsidiary that will endeavor to build Kunming into a regional hub, a source close to the matter told ATWOnline. CEA is expected to sell a stake in the branch company to the government, although it is widely speculated that the airline will remain the controlling shareholder.
Southwest Airlines raised certain baggage charges and will begin allowing pets onboard for a fee as it looks for new revenue streams. SWA said last week that it will raise existing charges for passengers checking a third or overweight bag (51-70 lb.) to $50 from $25 and will add a $25 fee each way for those traveling as unaccompanied minors.
Star Alliance CEO Jaan Albrecht said he sees a "renewed and more aggressive" interest in the alliance from member airlines as well as from nonallied carriers owing to the recession and industry downturn.
"Robust" growth in passenger numbers and ancillary revenue helped boost AirAsia to a MYR203.2 million ($58 million) first-quarter profit, up 26% from the MYR161.3 million reported in the year-ago period.
VLM Airlines will be rebranded as CityJet although it will continue to operate under its own operating certificate, the carriers announced. Both regionals are wholly owned subsidiaries of Air France KLM. Antwerp-based VLM is the largest operator at London City. It will adopt the group's Flying Blue loyalty program and abandon its own VLM Encore program in September ( ATWOnline, Dec. 12, 2008).
Airlines are not sitting idly waiting for major new ATM programs such as US FAA's NextGen and are investing in and employing new technology to reduce fuel burn and emissions, industry leaders Air New Zealand and Southwest Airlines said this week. ANZ GM-Operations and Chief Pilot David Morgan offered a report at the Eco-Aviation conference sponsored by ATW and Leeham Co.
Flybe said it was "surprised" that British Airways decided to impair the value of the carrier, in which it holds 15% following the 2006 sale of its BA Connect regional operation.
