Airbus yesterday presented details of its Power8 Plus restructuring program to labor unions representing its employees, telling workers that the cuts envisioned in the original Power8 restructuring program no longer are sufficient.
Alaska Airlines said its entire fleet will be equipped by the end of this month with Honeywell's Runway Awareness and Advisory System, which provides audible alerts in cockpits when aircraft approach and enter taxiways and runways. RAAS aims to prevent pilots from using the wrong runway. Alaska said it began installing the system on its 737s in July.
Air France KLM will launch a nonbinding bid for the Austrian government's share in Austrian Airlines, Deputy CEO Pierre-Henri Gourgeon told ATWOnline yesterday. Speaking during a ceremony marking the opening of AF's new 2G Terminal at Paris Charles de Gaulle, Gourgeon also reiterated that the group is interested in taking a minority stake, "which could be anywhere between zero and 49%," in a possible restart of Alitalia. "We have to be present in all consolidation discussions in Europe," he said.
Malev Hungarian Airlines, which has come under massive pressure as a result of the increasing debt facing its controlling shareholder, KrasAir affiliate AirBridge, announced it was granted access to €30 million ($42.8 million) in capital as a result of an agreement between AirBridge and Vnyeseconombank. KrasAir leads the AiRUnion alliance that has required a bailout and rescue by the Russian government ( ATWOnline, Sept. 9).
Emirates has replaced its A380 with a 777-300ER until Sept. 12, citing training and engineering issues. EK had planned to use the A380 for training in between its Dubai-New York JFK services but engineering work has taken more time than expected. At the same time, its plan to operate daily A380 flights to JFK beginning Oct. 1 has slipped several weeks because of a delay in the delivery of its second aircraft. Sources in Hamburg told ATWOnline that aircraft will not be delivered until the third week of October due to delays in interior outfitting.
Shandong Airlines posted a net profit of CNY58.6 million ($8.6 million) in the first six months of 2008, a reversal from a CNY90 million deficit in the year-ago semester. Operating revenue rose 22.6% year-over-year to CNY2.25 billion against a 13.8% increase in expenses to CNY1.99 billion. The Jinan-based carrier credited "effective cost-savings" and "rationalization of the fleet structure" as the main contributors to the improved result. Passenger boardings jumped 27.2% to 3.1 million while cargo traffic climbed 38% to 37,800 tonnes.
Palma, Mallorca-based Futura International Airways suspended flights yesterday for 24 hr. as it sought bankruptcy protection, the Spanish Infrastructure Ministry confirmed, but the carrier intended to restart operations today. The ministry said it asked Futura to present information on its financial situation, a plan for reorganization and guarantees on the security of its flight operations by Friday in order to determine whether it could retain its operating license.
Cathay Pacific Airways yesterday held a groundbreaking ceremony for its cargo terminal at Hong Kong International. It is investing HK$4.8 billion ($614.8 million) in the facility, which is slated to be completed by the second half of 2011. The terminal will have an annual capacity of 2.6 million tonnes and, while owned and operated by Cathay, will be a common-use facility open to all airlines.
New Alitalia will be organized by Nov. 1, according to Italian Minister of Productive Activities Claudio Scajola, who told media that the country "need[s] an airline which can be competitive as soon as possible," according to Bloomberg News. It will not be an easy road, however, as at least five unions yesterday rejected the layoffs and new contracts necessary to the government's rescue plan.
Flybe reported pre-tax profit of £12.2 million ($21.5 million) for the fiscal first quarter ended June 30, a 14% rise from the £10.7 million earned in the year-ago period, as revenue increased 13.7% from £136 million to £155 million on an 18% growth in passengers to 2 million. For the financial year ended March 31, the UK's largest regional carrier, which acquired BA Connect from British Airways in March 2007, reported a net profit of £39.6 million, reversing a loss of £19.9 million in the prior year.
CSA Czech Airlines lost CZK178 million ($10.2 million) in the first half of this year, a result it said was "on last year's level." However, the company reported a CZK201 million operating profit that represented a turnaround from a CZK449 million loss in the year-ago semester. President Radomir Lasak said it "managed to nearly entirely offset increased fuel costs and the impact of the strong crown by operational improvements." He said CSA expects to report a full-year profit.
Shanghai-based LCC Spring Airlines plans to establish its second base at Zhengzhou, which opened a budget terminal in March. Spring originally had targed Sanya, a popular tourist destination in Hainan Province, for the base but opted out "as it is short of a budget terminal," Chairman Wang Zhenghua told ATWOnline. It has chosen the capital of Henan Province instead. The city boasts a population of more than 7 million at the prefectural level.
Continental Airlines followed other US majors and announced Friday that it will begin charging $15 for the first checked bag for economy passengers paying less than full fare flying within North America. Fees will be applied beginning Oct. 7. CO also said that from Jan. 1 it no longer will credit frequent fliers 500 mi. for flights shorter than 500 mi., instead crediting them with the actual mileage flown.
ExpressJet Holdings filed a definitive proxy statement with the US Securities and Exchange Commission requesting shareholder approval for a 1:10 reverse stock split for its common shares. The regional operator said the split is part of its "continuing efforts toward improving liquidity for its stockholders." It will ballot shareholders at an Oct. 1 meeting. If approved, the split will leave ExpressJet with 21.7 million shares outstanding and approximately $68.5 million in debt outstanding.
United Airlines flew 10.29 billion system RPMs in August, down 5.1% from the year-ago month. Capacity fell 3.1% to 12.18 billion ASMs and load factor declined 1.8 points to 84.5%. Southwest Airlines flew 6.63 billion RPMs in August, down 5.2% year-over-year, against a 1.5% lift in capacity to 8.88 billion ASMs. Load factor fell 5.4 points to 74.6%. AirTran Airways flew 1.97 billion RPMs in August, up 12.7% year-over-year. Capacity rose 8.8% to 2.25 billion ASMs and load factor was up 3 points to 87.3%.
Russian alliance AiRUnion, which is run jointly by the government, CEO Boris Abramovich and President Alexander Abramovich, is facing significant financial troubles and requires an immediate restructuring, COO Gustav Baldauf told ATWOnline.
Austrian Airlines Group ordered four Q400 NextGens plus two options, Bombardier announced. Firm orders are worth $118 million at list prices and are due for delivery in 2010. They will be operated by Tyrolean Airways under the Austrian Arrows brand. Arrows currently operates 12 Q300s, 10 Q400s and 12 CRJ200LRs. AAG also purchased four Q400s from SAS Group and will phase out its last two Dash 8-300s and two CRJ200s.
CIT Aerospace exercised options for eight A320s and two A319s, lifting its firm Airbus commitment to 199 aircraft (162 A320 family, 30 A330s, seven A350s), of which 100 already have been delivered. Delivery of the newly ordered aircraft, worth approximately $756 million at list prices, is scheduled to begin in 2012.
Boeing workers delivered an overwhelming rebuke late Wednesday with 87% of the 28,600 members of the International Assn. of Machinists and Aerospace Workers voting to strike over a new three-year contract. Armed with that resounding endorsement of its recommendation to reject the company's final offer, IAM agreed to hold off the walkout for 48 hr., giving management time to respond. That decision reportedly was met with significant protest by attendees, forcing IAM leaders Mark Blondin and Tom Wroblewski to leave the meeting.
Lufthansa Flight Training will open a multimillion-dollar center at Munich in October housing three cockpit simulators and training devices for service and emergency training. An E-190 simulator owned by Swiss Aviation Training will go into operation in March 2009 and A320 and A330/A340 simulators owned by LFT will follow. E-190 simulator training will be conducted by SAT.
Bombardier Aerospace enjoyed a 79% year-over-year surge in fiscal second-quarter operating profit to $238 million thanks to an increase in aircraft deliveries. Revenue for the three months ended July 31 was up 13.6% to $2.5 billion and the order backlog was worth $26.1 billion, up 15% from Jan. 31. The manufacturer received orders during the quarter for 175 aircraft comprising 162 business aircraft, 11 commercial jets and two amphibians, down from 187 in the year-ago quarter. Deliveries rose 14% to 89.
Turkish Airlines CEO Temel Kotil told ATWOnline this week that the growing carrier is "ready for tough competition" and that its phase of organic growth is over, saying, "We need to acquire other carriers." Falling demand and high fuel prices have helped contribute to a more competitive landscape, but Kotil said THY has "learned to cut every cost" while improving quality. It reported a 219% year-over-year increase in first-half profit to $208 million ( ATWOnline, Sept. 1).
