Pratt & Whitney concluded the Farnborough Airshow by announcing that Uzbekistan Airways selected PW4000s to power four firm 767s it has on order in a deal valued at more than $130 million. Deliveries are slated to begin in 2013. It also said that AWAS Aviation Trading Ltd. selected IAE V2500s to power 30 A320s to be delivered in 2011-15 in a deal valued at $166 million. AWAS currently owns a fleet of 29 A320-family aircraft powered by V2500s.
Serbian government plans to reduce the minimum price it will accept for the sale of flag carrier Jat Airways to compensate for rising fuel prices, Deputy Prime Minister Mladjan Dinkic said last week ( ATWOnline, June 16). According to Reuters, the government initially priced the airline at €150 million and said it would sell a 51% stake in a tender expected to be called by the end of this month. Dinkic said there is a "reserve plan" if the government is unsatisfied with the tender's outcome.
Delta Air Lines reached an accord with Pinnacle Airlines and agreed to abandon plans to terminate its 10-year contract with its regional partner, with terms of the reaffirmed deal allowing Pinnacle to continue operating as a Delta Connection carrier until 2017.
China Southern Airlines plans to reduce the pay of all executives, including Chairman Liu Shaoyong, by 10% in an effort to cut its operating expenses by CNY1.3 billion ($190.3 million) by year end. The domestic fuel price has risen to CNY8,720 per ton, nearly four times greater than in 2005. The increase has hit CZ the hardest, as it operates the greatest number of domestic routes.
Qantas on Friday said it will cut 1,500 jobs by Dec. 31 and cancel a planned 8% boost in capacity for its 2009 fiscal year starting July 1 "in response to the sustained high oil prices and changing economic conditions." The carrier did, however, reach an accord "in principle" Friday with its mechanics on a new four-year labor contract, likely ending a dispute that had led to rolling work stoppages that disrupted QF's flight schedule in recent weeks.
Swiss International Air Lines announced the acquisition of Servair Private Charter, which it said will operate as a wholly owned, Zurich-based subsidiary called Swiss Private Aviation and "should establish the Swiss Group in the business aviation sector and provide a platform for operating the Lufthansa Private Jet fleet." SPA will concentrate on offering aircraft management services to private clients and companies and operating commercial charters. From spring 2009, the LH Private Jet fleet will be operated under SPA's AOC. Separately, LX will enhance its winter schedule Oct.
Virgin Blue will remove two 737s from its domestic network by October, reducing capacity by an additional 3%, introduce new baggage fees and adjust certain fares in an effort to combat rising fuel costs. There will be no layoffs associated with the new initiatives. The airline unveiled a A$50 million ($48.8 million) cost-savings package in June that included a 6% capacity cut ( ATWOnline, June 16).
Italian Prime Minister Silvio Berlusconi said Alitalia has attracted significant investor interest and the government "will have to say no because the offer is over twice what is necessary," according to Thomson Financial. "We are working on the issue and I am personally convinced that we will be able to present a new Alitalia with a business plan for a profitable flagship carrier fairly soon."
Aviapartner Cargo signed a contract with Turkish Airlines to provide cargo handling services covering 14 airports, including online and offline stations across France, as well as trucking distribution. Effective July 21, contract includes warehousing, ULD buildup and breakdown, inventory management, documentation, customs clearance, tracing and dangerous goods control.
One day after announcing a service cut at Dublin, Ryanair yesterday unveiled a series of winter schedule reductions and temporary base closures that it used as a platform to attack airport monopolies and increasing charges.
Trans States Airlines, which provides regional lift as AmericanConnection, US Airways Express and United Express, will furlough 58 additional pilots by the end of next month and reduce its fleet to 43 aircraft from 50, a spokesperson told the St. Louis Post-Dispatch. It let 45 pilots go in June and will employ 422 this fall. Trans States serves 46 destinations and is based it St. Louis.
Babcock & Brown leased and delivered two former ATA Airlines 757-200s to Ethiopian Airlines. Lease agreements are five years each. B&B said it is "in discussions with several parties" regarding two additional former ATA aircraft.
Continental Airlines escaped the second quarter in far better financial shape than rivals American Airlines and Delta Air Lines, reporting a $3 million net loss that compared to a $228 million profit in the year-ago period.
Cathay Pacific Airways and Dragonair flew 7.76 billion RPKs in June, up 16.4% year-over-year, against a 16% increase in capacity to 9.54 billion ASKs. Load factor rose 0.3 point to 81.3%. Air Canada and Jazz Air flew 4.58 billion RPMs in June, a 1.9% increase year-over-year, while ASMs climbed 2.7% to 5.57 billion. Load factor dipped 0.6 point to 82.2%.
South African Airways reported a ZAR1.09 billion ($142.5 million) loss in the fiscal year ended March 31, widened from ZAR833 million the previous year, Bloomberg News reported. The result reportedly was driven by costs related to a restructuring program that included the grounding of its 747-400 fleet and nearly 2,000 layoffs ( ATWOnline, May 26). Excluding the restructuring costs, it was ZAR123 million in the black.
iSeatz launched its standalone booking engine developed for Delta Air Lines and featured on DL's website. Technology offers advanced travel purchasing options and ancillary service connections.
Expansion and fuel costs weighed heavy on Norwegian's bottom line in the second quarter as the LCC reported a NOK62.2 million ($12.3 million) loss that represented a reversal from a NOK44.7 million profit in the year-ago period.
Spanair yesterday unveiled a "feasibility plan" designed to negotiate the "economic crisis" and rising fuel prices that will generate an estimated €90 million ($143.4 million). It will ground 15 aircraft in September and October, lay off 900 fulltime employees and permanently cancel service from Madrid to Vienna, Munich, Girona, San Sebastian, Granada and Oviedo as well as Barcelona-Zurich, Bilbao-Malaga and Bilbao-Jerez. It still will operate more than 80% of its network, equal to 260 daily flights to 48 destinations.
Such is the state of the US airline industry that Delta Air Lines CEO Richard Anderson found a silver lining to the $1.04 billion second-quarter loss announced yesterday, which represented a reversal from the $164 million earned in the year-ago quarter.
TAP Portugal will reduce capacity by approximately 40 flights per week during the coming winter season, CEO Fernando Pinto confirmed to ATWOnline last week. Reductions will be a mix of intercontinental and European frequencies and no destinations or aircraft are expected to be cut.
Finnair is investigating importing jet fuel to Finland as prices are increasing and competition among fuel providers is limited. It expects this year's fuel bill to top €600 million ($956.3 million).
In conjunction with its effort to enhance its "Beijing hub" strategy and boost domestic and international frequencies from the capital, Air China plans to order 15 777s and 30 737s. According to a CA statement released yesterday by the Shanghai Stock Exchange, the airline negotiated a deal less than the $6.3 billion list price for the 45 aircraft, which will be delivered between 2011 and 2015 and will boost its capacity by 35%. The order still requires approval from CA shareholders and the Chinese government.
ILFC announced the following lease agreements: One used 737-800 to Miami Air International for four years; four new A321-200s and two used A330-200s to Vietnam Airlines for 10 and eight years each respectively; three used A330-200s to Gulf Air for eight years each; one new A321-200 to Air France for six years; one used 737-800 to Caribbean Airlines for three years; two new A321-200s to Aegean Airlines for six years each; one new 737-800 to Oman Air for 10 years; two used 737-800s to Orenburg Airlines for five years each; two used A320-200s and three used 767-300ERs to Rossiya for five a
Ryanair will cut its winter schedule at Dublin, reducing based aircraft to 18 from 22 and the number of weekly flights to 1,190 from 1,352. It estimated a passenger decline of around 500,000 from winter 2007-08. It said DUB is the second most expensive of its base airports and that a written request to the airport to have fees reduced was "dismissed by the DAA monopoly." It said the airport charges up to €15 ($23.84) per departing passenger.
Sama, the year-old Dammam-based carrier, said shareholders have agreed to contribute an additional SAR200 million ($53.3 million) in financing. SAR300 million was invested at startup and the company said its revenue rose more than 250% in the first half of 2008. It serves 12 Saudi and 10 Middle Eastern destinations.
