Virgin Atlantic Airways on Sunday operated a 747 demonstration flight from London Heathrow to Amsterdam partially powered by biofuel. Boeing, GE Aviation and Imperium Renewables partnered on the test, which came three weeks after Airbus conducted an A380 flight test using a liquid fuel processed from gas ( ATWOnline, Feb. 4). The Virgin test used biofuel composed of babassu oil and coconut oil. "These oils are environmentally and socially sustainable," the airline said.
Allied Pilots Assn., which represents American Airlines pilots, said it met with airline CEO Gerard Arpey and CFO Tom Horton along with the Assn. of Professional Flight Attendants and the Transport Workers Union "to discuss the airline industry's current drive toward consolidation." APA said management "spoke in general terms" about consolidation and the union "clearly communicated our concern about the effect that mergers have on employees."
Austrian Arrows Q400 operating as Flight OS142 from Nurnberg to Vienna with 67 passengers made an emergency landing yesterday in the capital after the pilot noticed a problem with the main display indicating landing gear position. The aircraft climbed and entered a holding pattern, and with the main and alternative displays functioning properly touched down approximately 2.5 hr. after takeoff. All onboard were safe. Austrian Airlines Group said the aircraft will undergo a thorough technical examination in Innsbruck and results are expected within two days.
GE Aviation announced a $30 million project to expand GEASO, its engine repair facility in Singapore, to 76,200 sq. m. The expansion is projected to more than double last year's $250 million revenue by 2013. Construction will begin in April and is slated for completion next year.
BOC Aviation, formerly SALE, place an order for five A330-200Fs on the last trade day of the Singapore Airshow. It is BOCA's first freighter order placed directly with a manufacturer. CEO Robert Martin said the commitment "reflects our confidence in strong future demand for widebody production freighter aircraft." No delivery dates or engine choice were announced. Airbus said the -200F can carry up to 64 tonnes more than 7,400 km. in its standard configuration, or 69 tonnes up to 5,930 km. in an optional configuration.
Singapore Aero Engine Services signed a $20 million deal with Abu Dhabi Aircraft Technologies covering MRO module services on four Trent 700s from a Middle East operator's fleet. SAESL also will handle engine MRO on 12 aircraft covered by a Rolls-Royce TotalCare agreement.
The prospect of a link-up between AirAsia and Australia's Virgin Blue appears to be gathering momentum, with the world's lowest-cost operator flagging the launch of a joint venture with Blue to establish an "ultra-low-cost" carrier in Australia. Blue has been searching for ways to counter low-cost entrants Jetstar Airways and Tiger Airways as it focuses more on the corporate market. Speaking to News Ltd. in Australia, Toll Holdings, which owns 62% of Virgin Blue, said it has received expressions of interest for its majority stake.
Airways New Zealand, Airservices Australia and US FAA signed a trilateral agreement to accelerate development of air traffic control procedures among the three countries that will reduce aviation's environmental footprint. Dubbed ASPIRE--Asia and South Pacific Initiative to Reduce Emissions--the accord aims to provide a regional platform for a host of technologies pioneered by the trio.
China Southern Airlines announced sale and leaseback deals covering 10 A330s ordered in December 2005. Eight aircraft now will be owned by and leased from Shenzhen Financial Leasing, with the remaining two owned by HSBC. CZ said the deals were "for the purpose of reducing the tremendous need of capital and relieving the pressure on the manufacture and operation of the company caused by the high asset/liability ratio."
China Southern Airlines flew 6.78 billion RPKs in January, up 22.1% over the year-ago month. Capacity rose 11.6% to 9.2 billion ASKs and load factor lifted 6.3 points to 73.7%.
Air China intends to make Air China Cargo its wholly owned subsidiary and is negotiating with Beijing Capital Airport to purchase the latter's 24% stake in the country's largest cargo carrier. "We did talk with Beijing Capital Airport about the purchase of their shares in the Air China Cargo carrier, but so far no substantial progress has been made," CA Board Secretary Huang Bin revealed.
Pinnacle Airlines reported a dramatic drop in full-year net income to $34.6 million, 55.5% lower than the $77.8 million reported in 2006. It cited changes in its air service agreement with Northwest Airlines along with costs related to training new pilots and introducing CRJ900s as causes. Revenue fell 4.5% to $787.4 million, expenses were up 5.5% to $735.3 million and operating income plunged 59.2 % to $52.1 million from $127.5 million. In addition to NWA, Pinnacle and its Colgan Air subsidiary operate in partnership with Continental Airlines, United Airlines and US Airways.
Austrian Airlines Group's negotiations with Saudi investor Mohamed bin Iassa Al-Jaber regarding his interest in investing €150 million ($220.5 million) in the flag carrier continue ( ATWOnline, Feb. 1), with several press reports out of Austria indicating that his investment could rise to €200 million and his stake in AAG to 30% from 20%. Many AAG shareholders and Austrian politicians (state holding group OIAG remains a 42.75% owner of AAG) have been positive about the potential investment.
Copa Airlines and AeroRepublica parent Copa Holdings reported full-year net income of $160.4 million for 2007, up 19.9% from $133.8 million earned in 2006. Operating revenue climbed 20.7% to $1.03 billion and operating income, adjusted to include special charges related to the early termination of leases on five AeroRepublica MD-80s, rose 18.5% to $196.8 million from $166.6 million. The two airlines flew a combined 5.86 billion RPMs last year, up 16.8% over 2006, against a 15.3% increase in capacity to 7.92 billion ASMs.
Continental Airlines announced yesterday that it placed firm orders for 19 737NGs and eight 777s, increasing its commitment for Boeing aircraft to 111 for delivery over the next six years.
The impact of a softening global economy and high fuel prices apparently has yet to reach Australia, where Qantas yesterday reported a profit of A$618.1 million ($566.4 million) in the fiscal semester ended Dec. 31, more than double the A$307.3 million earned in the year-ago period. QF is targeting a 40% year-over-year increase in full-year pre-tax earnings. "While we have benefited from a strong revenue environment, our focus has also remained on costs, efficiencies, customer service and product improvement. Our results reflect these efforts," Chairman Leigh Clifford said.
Aegean Airlines weathered increased competition in Western Europe and soaring fuel prices to post a profit of €35.8 million ($52.6 million) in 2007, up 39% from the €25.7 million earned the prior year, as rising load factors and "distribution efficiencies" resulting from higher Internet bookings boosted its bottom line.
Virgin Blue reported an 8.8% decline in profit for the fiscal semester ended Dec. 31 to A$113.3 million fuel ($104.1 million) from A$124.3 million in the year-ago period as competition and heavy investment in future expansion took their toll.
Adria Airways earned a €420,000 ($617,400) profit in 2007 on revenue of nearly €182 million, a result that CEO Tadej Tufek said "has overtaken that of 2006 and is an improvement on what we projected and very much in line with the company's long-term plans and strategy." It reported a €70,102 profit in 2006 and a loss in 2005. Adria carried 1.1 million passengers last year, up 12% from the prior year and 8% higher than forecast. It said load factor "improved" to 67.1%. December passengers rose 25% year-over-year to 72,551.
EasyJet transported 2.8 million passengers in January, up 7.3% from the year-ago month. Load factor slipped 2.9 points to 72%. Allegiant Air flew 304.3 million RPMs in January, a 47.1% increase over the year-ago month. Capacity rose 40.3% to 383.7 million ASMs and load factor was up 3.6 points to 79.3%.
United Airlines promoted United Express and Ted VP-Operational Services Alexandria Marren to VP-onboard service. She will be succeeded by VP-Airport Operations-O'Hare Cynthia Szadokierski. AirTran Airways Senior VP and CFO Stan Gadek will leave the airline on April 30, the carrier announced. A search for his successor is underway.
Aeroflot Cargo, which recently announced the resignation of DG Andrey Goryashko, said it transported 121,879 tons in 2007, with 44,971 tons onboard freighters and the remainder as belly cargo on SU passenger flights. It also said it posted a RUB6.8 million ($277,000) net profit in October and a RUB12.8 million net profit in November. It operated six MD-11 freighters and two 737Fs in 2007 and plans to take delivery of six leased Il-96-400Ts beginning this year.
Emirates said it raised $253 million for the financing of a 777-200LR and a 777-300ER delivered in January. Twelve-year finance leases were underwritten by HSH Nordbank, Mashreqbank.psc and Mizuho Corporate Bank. EK has 53 more 777s on order comprising six -200LRs, eight -200LR freighters and 39 -300ERs.
