TACA placed a firm order for 12 A320s and three A319s, Airbus announced yesterday. No engine choice or delivery date were announced for the aircraft, which will be configured in a two-class layout. TACA currently operates nine A319s, 23 A320s and four A321s.
US Airways posted 2007 net income of $427 million, up 40.6% over $304 million earned in 2006, but endured a fourth-quarter loss of $79 million and warned that 2008 could be a difficult year owing to rising fuel costs and a weakening US economy.
CAE won orders for two full-flight simulators, a suite of CAE Simfinity training devices and update contracts valued at C$46 million ($44.7 million) from Qantas, Hainan Airlines, Airbus, Atlas Air, Singapore Airlines and Virgin Blue. Qantas ordered a CAE 5000 Series 737NG simulator and a CAE Simfinity 737NG IPT. Hainan purchased a CAE 7000 Series E-190 simulator and a set of CAE Simfinity training devices. Hainan also will receive a CAE Simfinity IPT and VSIMs. Airbus requested the CAE Tropos-6000 visual system for an A350 engineering development simulator.
Kaman Aerospace said its Aerostructures Division signed a seven-year follow-on contract with Boeing for wing fixed trailing edge assemblies on 777 and 767 aircraft. Contract covers components for 777 and 767 configurations at Boeing annual production rates. Work will take place at Kaman's Jacksonville facility.
Royal Jordanian and CIT Aerospace International signed 12-year lease contracts for two 787s, with delivery in September 2012 and January 2013. Aircraft will operate to North America and East Asia. The airline plans to operate 12 787s, four of which will be purchased directly from Boeing for delivery in 2013 and 2014 ( ATWOnline, Nov. 13, 2007). It will take two 787s from ILFC in 2010-11 and said it plans to sign a contract with LCAL for an additional three of the type. It did not account for the 12th aircraft.
Delta Air Lines, the focus of rampant merger speculation, posted net income of $1.61 billion for 2007, reversed from a loss of $6.2 billion in 2006, with both figures skewed by the carrier's bankruptcy restructuring.
Iberia Maintenance reached a five-year deal with Italian carriers Eurofly and Meridiana for maintenance of 20 CFM-56-5B engines powering eight A320s and two A319s. Work will be conducted at Iberia Maintenance facilities in Madrid.
While attempting to hold off Air China's drive to replace Singapore Airlines as a strategic partner and purchase its own sizeable stake, China Eastern Airlines found a domestic ally in China Southern Airlines, with whom it signed a cooperation agreement yesterday in Shanghai.
Air Austral will become a new player in the Europe-Australia market. The Reunion-based carrier will launch Paris Charles de Gaulle-Saint Denis-Sydney service in addition to flights to Noumea and New Caledonia in its 2009 summer schedule. It will lease two 777-300ERs from ILFC for eight years with delivery in February and March 2009. It currently operates three 777-200ERs and three 737 Classics.
ATW Industry Forecast Webinar yesterday examined airlines' financial prospects in an increasingly uncertain global economic environment, reviewing last year's performance and looking ahead to 2008, during which worldwide profits are expected to drop more than 10% to $5 billion as carriers contend with declining global GDP, rising fuel costs and the possibility of a US recession.
The more things change at Southwest Airlines, the more they stay the same. Facing record fuel prices, sagging demand and leaner competition, the carrier slowed its once-inexorable growth and worked on revenue initiatives like its Business Select product that might conflict with its populist image.
Shanghai Airlines formed a logistics enterprises alliance last weekend to meet increasing competition in the cargo market. The group comprises SAL and five other logistics companies: China United Airlines, SAL Cargo International, SAL International Cargo Services, Shanghai Crane Transportation and Dahang International Transportation. Shanghai Airlines has a controlling stake. SAL Board Secretary Xu Junmin said the alliance is designed to achieve synergies that would be impossible if each firm was operating separately.
Airstream International Group arranged the sale of a former Jet Magic and Citelynx ERJ-135ER to bmi on behalf of LCY Flight Ltd. Airstream said it was the 28th RJ it has sold in the past 24 months.
Iberia's largest shareholder, Caja Madrid, said British Airways will have to bring something "significant" to the carrier or it might leave oneworld and look to join another alliance, Reuters reported. "Iberia does not need to change partners. It does not need capital," Caja Madrid Chairman Miguel Blesa said. "Iberia needs a good alliance--a stable alliance with a big operator.
Lufthansa and JetBlue Airways yesterday announced the completion of their stock purchase agreement under which the German carrier took a 19% stake in the New York JFK-based LCC ( ATWOnline, Dec. 17, 2007). "With the conclusion of the financial transaction, Lufthansa and JetBlue will begin exploring innovative commercial arrangements designed to benefit both airlines and their customers," the carriers said in a joint statement.
Skyways Aviation arranged the sale of two ATR 72s to Swedish shipping and aviation group Erik Thun. Aircraft currently are operating with Aer Arann and Airlinair and were sold with long-term leases attached.
Air China parent China National Aviation Holding Co. submitted its formal bid to China Eastern Airlines last Friday, it announced yesterday, saying it intends to purchase 2.9 billion H shares in CEA for at least HK$5 per share and raise its stake to 26.14% from the current 12.07%.
News from Travel Technology Update: Lufthansa rocked the German travel market last week, saying it will increase fares booked through GDSs for flights departing German and Austria beginning July 1. The fares will increase by €15 for one-way flights and €30 for roundtrips. Lufthansa will continue to offer its pre-hike fares, which it has dubbed "Lufthansa Preferred Rates," after July 1 for direct sales through its Web site, call center, ticket counter and its dedicated travel agent Web site, lufthansa-agent.com.
Shanghai Airlines expects to post a loss in 2007 after reporting an CNY8.2 million ($1.1 million) profit in 2006, according to a company statement cited by Reuters. The airline said high fuel prices, slow development of new international routes and the establishment of a cargo subsidiary were the principal causes. It posted a narrowed CNY134.5 million loss in the first six months of 2007 ( ATWOnline, Sept. 3, 2007).
United Airlines parent UAL Corp. reported 2007 net income of $403 million, a result the company touted as its first full-year profit since 2000, but it did post a $53 million net loss in the fourth quarter owing to "the sharp rise in the price of fuel." UAL's 2007 result is not comparable to $22.88 billion in net income reported in 2006 thanks to extraordinary gains upon emergence from bankruptcy. Its pre-tax income for 2007 was $695 million, reversed from a pre-tax loss of $45 million in 2006 that excludes reorganization charges and benefits.
British Airways pilots will vote on strike action in a dispute over their status in the airline's new OpenSkies subsidiary, British Air Line Pilots Assn. confirmed. BALPA represents nearly all BA's 3,200 pilots and said the decision to ballot was taken after weeks of "abortive" negotiations with the airline. "This is not about money and it is not about safety," General Secretary Jim McAuslan said.
Copenhagen Airports supervisory board said it plans to invest DKK1 billion ($196.1 million) in 2008 to improve check-in facilities, gates, aircraft stands, baggage facilities and security, among others. The airports operator will add 150 employees this year.
Air India Chairman and MD Vasudevan Thulasidas said Friday that "Boeing is willing to give us the compensation" it is seeking for delayed 787 deliveries, the first concrete indication that the manufacturer will have to make penalty payments.
