AWAS, the Dublin-based lessor, gave Airbus a strong start to the year with an order for 75 A320s plus 25 options. The firm aircraft will bring its Airbus portfolio to 145 units, the manufacturer said. The deal is valued at $6.9 billion at list prices.
Etihad Airways is targeting 6 million passengers in 2008 compared to the 5 million it served last year. The Arab Air Carriers Organization reported that the airline will relocate to the new passenger terminal at Abu Dhabi, where 10 aircraft parking stands will be available and a dedicated runway for Etihad will be ready in April. The carrier is preparing to launch flights to Beijing and Moscow in March.
AerVenture Ltd., a joint venture among AerCap Holdings, LoadAir and Al Fawares, will lease six new A320-200s to TAP Portugal under eight-year lease agreements. Aircraft will be delivered in 2009 and are part of a 2005 order from Airbus.
JetBlue Airways will increase 2008 capacity 6%-9% year-over-year, CEO Dave Barger said. "Given an uncertain economic environment and record high fuel prices, we plan to grow more conservatively in 2008," he said. "Assuming market conditions remain favorable, we expect to take advantage of continued strength in the worldwide aircraft market to manage our fleet growth." JetBlue's December passenger RASM rose 5% from the year-ago month while traffic increased 6.4% to 2.16 billion RPMs. Capacity climbed 10% to 2.81 billion ASMs, dropping load factor 2.6 points to 76.8%.
Southwest Airlines CEO Gary Kelly told Bloomberg News that the airline will cut its 2008 capacity increase to 4%-5%, compared to 7.5% last year, and that it must realize $1 billion in new annual revenue before it increases its growth rate. The airline has, however, identified several possibilities for new revenue growth, such as marketing seats on ATA Airlines flights to Mexico and selling vacation packages on Southwest's website, Kelly told Bloomberg. "There is a $1 billion-plus potential there.
IATA blasted the Brazilian government's proposal to raise per-hr. aircraft parking fees at Sao Paulo Guarulhos significantly, asserting that the hike could cost international airlines operating there as much as $90 million per year and likely violates bilateral aviation accords. It is not uncommon for aircraft operated by international carriers to land at GRU early in the day and remain parked before departing again that night.
Air India will launch daily Delhi-New York JFK service Feb. 8 aboard a 777-200LR. It took delivery of its fourth aircraft of the type on Jan. 2. It is equipped with eight seats in first class, 35 in business and 195 in economy. AI already serves JFK from Mumbai. It will take a sixth -200LR next month and the remaining three it has on order in mid-2009.
Austrian Airlines Group appointed Walter Reimann to the position of VP-international and aeropolitical affairs and alliances. He succeeds new COO Peter Malanik.
Pinnacle Airlines filed suit in US District Court against the Air Line Pilots Assn. charging the union that represents the carrier's pilots with "bad faith bargaining" in contract talks that date back to 2005. Pinnacle operates as a Northwest Airlink and Delta Connection carrier. An ALPA spokesperson told ATWOnline that the suit was "unprecedented," adding, "The lawyer who will handle the case can't remember when we were sued for failing to bargain in good faith."
Clickair carried 4.5 million passengers in 2007, in line with its business plan, but full-year revenue came in lower than forecast, CEO Alex Cruz told ATWOnline while also confirming the LCC will scale down its planned fleet expansion this year.
Encomium Media, founded recently by former OAG VP Duncan Alexander, launched services for Athens International. Company offers consulting, public relations, marketing and research expertise.
China Eastern Airlines Chairman Li Fenghua insisted yesterday that the carrier's plan to sell a 25% stake to Singapore Airlines and its parent Temasek was not dead even after more than 77% of CEA's minority shareholders voted against the deal, effectively killing it.
EasyJet yesterday launched thrice-weekly Liverpool-Innsbruck service. The LCC transported 2.9 million passengers last month, up 9.9% from December 2006. Load factor fell 2.2 points to 78.9%.
Frontier Airlines will report a pre-tax loss for the third fiscal quarter ended Dec. 31, 2007, President and CEO Sean Menke said. A $0.78-$0.88 per share loss excluding special items, larger than forecast, was caused by "higher-than-expected operating expenses" related to winter weather in Denver and the Midwest late last month and "weaker-than-expected performance in some sun destination markets," he said. December yield rose 1.5% year-over-year to 11.55 cents and passenger RASM climbed 8.1% to 8.39 cents.
Standard Aero announced completion of a $1.6 million transformation project at its PT6A MRO facility in Winnipeg. Enhancements are expected to boost overhaul capacity and accelerate turn times.
British Airways flew 9.08 billion RPKs in December, up 1% from the year-ago month, against a 2% rise in ASKs to 12.35 billion. Load factor slipped 0.7 point to 73.5%. Northwest Airlines flew 6.27 billion consolidated RPMs in December, a 1.7% drop from the year-ago month. Capacity declined 2.2% to 7.72 billion ASMs, lifting load factor 0.5 point to 81.2%.
China National Aviation Holding Co. and Air China announced yesterday that CNAC will make its own bid for China Eastern Airlines in two weeks if the latter's stake sale to Singapore Airlines is vetoed by shareholders at a meeting scheduled for today.
Finnair shut down Estonian subsidiary Aero Airlines Sunday as part of its strategy to concentrate on its mainline business and development of its Asian route network. The closure also ends its propeller aircraft era, as the ATR 72s owned by Finnair Aircraft Finance and operated by Aero have been sold ( ATWOnline, Jan. 7). Finnair took control of Aero in 2001, hoping to develop a cost-effective model for a regional operator while increasing its market share in the Baltic.
UPS is launching a "simplified global portfolio for shipping airfreight" that appears to leverage the company's position as both a cargo airline and a freight forwarder. In recent years, UPS has built up its express delivery airline operation and its supply chain management business significantly, attempting to become a wide-ranging service provider for all forms of time-sensitive cargo transport.
US Aerospace Industries Assn. elected Rockwell Collins Chairman, President and CEO Clayton Jones as its 2008 chairman, succeeding Raytheon Chairman, President and CEO William Swanson, who held the post last year.
Pinnacle Airlines announced the purchase of its Class A Preferred Share from Northwest Airlines for $20 million ( ATWOnline, Dec. 3, 2007). "This is the last step in the process of becoming independent that began with our IPO in 2003, and well positions us to take advantage of future opportunities," President and CEO Phil Trenary said. "We remain firmly committed to Northwest Airlines, our largest customer."
Virgin Atlantic Airways and the Unite union reached agreement yesterday on a two-year pay deal for cabin crew, averting the first flight attendant strike in the carrier's history. Unite planned 48-hr. strikes on Jan. 9-10 and Jan.16-17 ( ATWOnline, Jan. 7). "The outcome is a triumph of common sense," Virgin's Richard Branson said. Agreement includes a 4.8% pay increase in the first year and a guarantee of RPI in the second.
Emirates will quit its management contract with SriLankan Airlines following a public spat after the Sri Lankan government withdrew the work permit of Peter Hill, Emirates' secondee and CEO of the Colombo-based carrier. The trouble started when SriLankan refused to offload 35 passengers on a London Heathrow-Colombo flight in order to accommodate President Mahinda Rajapaksa and his entourage. The government owns 51% of the airline while Emirates holds 43.6%, and negotiations have been underway for 18 months to renew an eight-year-old management contract.
