Irish Airlines Superannuation Scheme, the pension fund for Aer Lingus and Dublin Airport Authority employees, is likely to suffer a €628 million ($830.8 million) shortfall, according to a SIPTU report cited by The Independent. The union called the shortfall "an extremely challenging vista that must the addressed" and called on EI and DAA to set aside funds from cash reserves to "secure the viability" of the scheme. EI's and DAA's combined net cash balance is nearly €1.4 billion, SIPTU said.
PASSUR Aerospace announced that JetBlue Airways contracted for its ATC Portal, a "next-generation traffic flow management solution that helps improve hub reliability through advanced 'health of the airport' analysis, trend predictions, and alerts capabilities," according to the company.
Vietnam Airlines received government permission to move forward with the purchase of 10 A321-200s for delivery in the 2011-14 period and to join the SkyTeam alliance, according to press reports from Vietnam.
United Airlines reintroduced onboard Economy Plus Upsell following the launch of its new handheld credit card scanners, according to a communication from the Assn. of Flight Attendants-CWA to its members. Up to three "upsells" enticing economy passengers to pay extra to sit in the roomier economy plus section are permitted on narrowbody aircraft and up to 10 on widebodies. AFA told members that upselling should occur only after takeoff.
FedEx revealed in a regulatory filing this week that it will "permanently remove" 10 A310-200Fs and four MD-10Fs from service by May 31. "This decision reflects management's ongoing efforts to optimize the company's express network in light of continued excess aircraft capacity due to weak economic conditions and the expected delivery of newer, more fuel-efficient aircraft in fiscal year [2009-10]," it informed the US Securities and Exchange Commission.
China Southern Airlines yesterday reported its first full-year loss in three years, a CNY4.82 billion ($704.1 million) deficit that represented a reversal from the CNY1.84 billion profit reported in 2007
Turkish Airlines flew 7.5 billion RPKs in the first quarter, up 8.8% year-over-year, against a 14.9% rise in capacity to 11.4 billion ASKs. Load factor fell 3.7 points to 66.1% while passenger numbers rose 8.4% to 4.9 million. Gol flew 1.78 billion RPKs in March, down 16.1% from the year-ago month. Capacity fell 12.8% to 3.25 billion ASKs and load factor slipped 2.2 points to 54.95. Copa Airlines flew 485.6 million RPMs in March, a 9.9% increase year-over-year, against a 15.7% rise in capacity to 627.2 million ASMs. Load factor dropped 4.1 points to 77.4%.
Southern Air, a Connecticut-based cargo carrier operating 17 747-200 freighters and specializing in long-haul heavy lift services, was ordered by the US Occupational Safety and Health Administration to withdraw a lawsuit it filed against nine former employees and pay them more than $7.9 million in wages, damages and legal fees. OSHA concluded that a defamation suit filed by Southern against the former flight crew members, whom the agency said "raised air carrier safety concerns" with the airline, OSHA and FAA, violated whistleblower protections in US law governing FAA and airlines.
KD avia is set to receive a RUB4 billion ($119 million) capital injection from the Russian government, Kaliningrad Region Governor Georgy Boos told Prime-Tass. Kaliningrad holds 9.5% of the carrier. The amount matches that which KD Director-Business Development Mikhail Baskov revealed to ATWOnline four months ago ( ATWOnline, Dec. 15, 2008). KD is more than RUB10 billion in debt, according to the news agency.
United Airlines' 16,000 flight attendants represented by the Assn. of Flight Attendants-CWA will seek "to substantially increase our pay" during negotiations launched last week on a new contract, according to the union, while UA management will seek to eliminate "uncompetitive" restrictions on scheduling and cooperation with other airlines that it claims exist in the current contract amenable Jan. 7, 2010.
American Airlines yesterday took delivery of two 160-seat 737-800s, its first new -800s since December 2001 and the first of 76 that are scheduled to arrive through the first quarter of 2011.
JetBlue Airways named United Airlines MD-Revenue Management Operations Dennis Corrigan VP-revenue management. He succeeds Richard Zeni, who now is JetBlue's VP-change management-passenger service system.
AerCap Holdings said it purchased eight new A320s, two used 767s, three CFM-56 engines and one PW4060 during the quarter and delivered 13 planes and eight engines under lease agreements. CEO Klaus Heinemann said that despite "one of the worst economic environments for the aviation industry, most airlines have shown a remarkable resilience to these conditions." Eight of nine aircraft repossessed last year are now with new operators. "Towards the end of the first quarter, we noticed a significant renewal of airline interest in contracting new capacity for 2010 and beyond.
The relationship between Qantas and Malaysia Airlines appears to have fizzled following the expiration of a December 2007 MOU designed to establish the framework for a joint maintenance organization in Kuala Lumpur.
Turkish Airlines plans to increase its share capital to TRY875 million ($557 million) from TRY175 million, according to a filing with the Istanbul Stock Exchange cited by Reuters. It also will pay its first dividend (TRY99 million) since its 1990 IPO. THY reported an $874 million profit in 2008, up nearly fourfold from the prior year ( ATWOnline, April 9).
Qantas yesterday announced its intention to ground and sell 10 aircraft, eliminate 1,750 more jobs (including 500 management positions) and defer at least 16 orders as it battles the economic downturn, which it warned will result in a pre-tax profit for the fiscal year ending June 30 of A$100-A$200 million ($72.5-$144.9 million) rather than the A$500 million forecast in November.
El Al is negotiating with the Montenegrin government for the purchase of 30% of Montenegro Airlines, which operates one E-195 and five F100s and needs cash for fleet renewal. El Al President Haim Romano told reporters in Podgorica that talks will continue, while YM Chairman Zoran Djurisic said discussions also were taking place with Adria Airways and that the sale is expected to be finalized before year end, Reuters reported.
Qantas and the Australian Transport Safety Bureau said they will consult with and assist Dutch crash investigators after a QF 737-800 last week suffered a radio altimeter malfunction similar to the one that is suspected of causing the loss of a Turkish Airlines -800 on approach to Amsterdam on Feb. 25.
AirTran Airways pilots voted Friday to end their independence and join the Air Line Pilots Assn. The carrier's nearly 1,700 pilots have been represented for 12 years by the independent National Pilots Assn., but 87% voted to merge with ALPA. NPA Interim President Linden Hillman said, "We had a choice to cling to the past, keep complaining about our failures and refuse to accept reality or make a bold decision for our future.
Embraer delivered an E-170 to Australia's Airnorth, which will operate the 76-seat, single-class aircraft under lease with Jescape. The Darwin-based carrier plans to fly up to four E-170s by 2010.
Jat Airways and MAT Macedonian Airlines signed a cooperation agreement last week designed to "find the best possible business solution" for the two carriers, including technical and commercial cooperation and potential "changes in the ownership structure" of MAT. No further details were provided, although several press reports indicated that Jat has been discussing acquisition of a stake in MAT since March and Jat Acting DG Sasa Vlaisavljevic told Serbian media last week that the carrier hopes to turn €10 million ($13.2 million) in debt owed by MAT into shares in the company.
Lufthansa Group airlines flew 11.75 billion RPKs in March, down 5% from the year-ago month. Capacity rose 0.6% to 15.65 billion ASKs, lowering load factor 4.4 points to 75%. Aer Lingus flew 1.23 billion RPKs in March, down 13.1% year-over-year, against a 13.5% fall in capacity to 1.63 billion ASKs. Load factor rose 0.3 point to 75.6%. Finnair said its first-quarter unit revenue fell more than 13% year-over-year. In March it flew 1.85 billion RPKs, down 8%, against a 3.7% fall in capacity to 2.54 billion ASKs. Load factor dropped 3.4 points to 72.9%.
Vitaly Savelyev took over as Aeroflot DG and CEO Friday, succeeding Valery Okulov ( ATWOnline, April 6). The airline said Savelyev and management will be working on a five-year business plan designed "to ensure Aeroflot's continuous competitiveness and growth," including unidentified cost-efficiency programs. SU recently said it was targeting $161 million in cost savings this year and more than $400 million by the end of 2010.
