Lufthansa flew 10.37 billion RPKs in May, up 6.2% on the year-ago month. Capacity climbed 4.4% to 13.64 billion ASKs and load factor rose 1.3 points to 76.1%.
Shannon-based Genesis Lease Ltd. signed a definitive agreement with InterGlobe Aviation Ltd. (IndiGo) for the sale and leaseback of two new A320-200s. Aircraft are scheduled to be delivered to IndiGo in July and September.
Centre for Asia Pacific Aviation warned that commercial aviation's growth in India may depend on whether or not the government is willing to "redouble their commitment to reform." CAPA said it conducted an industry survey in India and found that "investor uncertainty related to issues of transparency, evenhanded application of regulations and policies governing inter-airport competition and this was limiting potential new investment in the country, especially in its critical airport sector." Executive Chairman Peter Harbison said the Indian government "must institute a clear policy road
Alteon Training signed an agreement yesterday with Northwest Airlines to provide simulator training for carriers on seven aircraft types at NWA's training center in Eagan, Minn. NWA and Alteon will place a 787 full flight simulator and other 787 training equipment in the center by April 2008. Alteon will have exclusive rights to market excess simulator time to all 787 operators and will provide training at the facility to airlines throughout the world on the 747-400, 747-200, 757, DC-9, A320 and A330.
Finnair President and CEO Jukka Hienonen has concluded that the airline's Asian strategy has "paid off." He told ATWOnline at last week's IATA AGM in Vancouver that 2007 Asian traffic has grown 30% year-over-year and is expected to maintain that rate through year end. Last month, 70% of passengers inbound from Asia connected on Finnair's European network, he added. He said the airline is considering opening a fifth Chinese destination and is targeting South Korean service as well.
EADS named Marwan Lahoud, currently CEO of missile manufacturing subsidiary MBDA, chief strategy and marketing officer replacing Jean-Paul Gut, COO-marketing, strategy and global development, who will leave the company Oct. 1. ATR named Stephane Mayer CEO replacing Filippo Bagnato, who is now chairman of the turboprop manufacturer's board. Mayer, whose appointment is effective immediately, has been chairman and CEO of EADS Socata since 2003.
American Airlines flew 11.89 billion system RPMs in May, down 2.9% from the year-ago month. Domestic traffic fell 2.5% and international was down 3.7%. Capacity dropped 4% to 14.55 billion ASMs on a 4.0% domestic decline and a 4.1% international decrease. Load factor rose 1 point to 81.7%--domestic was up 1.2 points to 84.2% and international 0.3 point to 77.2%.
Continental Airlines said yesterday in an investor update that second-quarter mainline unit cost is expected to rise just 1.2%-1.6% year-over-year to 10.84-10.89 cents on a 6.1% lift in capacity. Mainline CASM excluding fuel and related taxes is expected to be 7.74-7.79 cents. Full-year unit cost will stay nearly in line as well, from 10.56 cents in 2006 to 10.66-10.71 cents in 2007, an increase of 0.9%-1.4%. Growth rate is less than half of last year's 3.3%.
Despite the fact that its initial order lapsed last November and it signed on for 22 A350 XWBs in the interim, Aeroflot opted to join the rush to order the 787 with a commitment to Boeing for a reported 22 aircraft.
AirTran Holdings once again extended its tender offer to Midwest Air Group shareholders, this time through Aug. 10. When the third extension expired on June 8 ( ATWOnline, May 18), Midwest shareholders had agreed to tender 59.5% of outstanding shares, or 64.1% of the outstanding shares not held by members of Midwest's board or management. AirTran's current offer values Midwest at $389 million.
Air France KLM is seeking full control of Amsterdam-based Martinair and has begun lobbying the European Commission to obtain clearance for a 100% holding, according to widespread reports from the Netherlands. Martinair is owned jointly by KLM and Danish shipping group Moeller-Maersk. KLM initially launched a bid in 1998 but was rebuffed by the EC, which also imposed a fine equal to €40,000 ($53,474) on the Dutch flag carrier for supplying incorrect and misleading information regarding transavia.com, the LCC that operates as an independent subsidiary of AF KLM.
China's traditionally isolationist flag carriers are taking the initiative to ally with foreign counterparts in order to take advantage of increasing liberalization and maintain their competitive position.
Brussels Airlines plans to make a fleet renewal decision next year, CEO Philippe Vander Putten recently told ATWOnline. "The choice to buy Airbus or Boeing is easy. The difficulty is to define what our future fleet requirements will be," he said. "What will our business model be? A lot will depend on how successful our new positioning [from a yield-oriented to a more volume-oriented carrier], will be.
Transat, parent of Canadian leisure charter specialist Air Transat, reported net income of C$56.1 million ($53 million) for the six months ended April 30, a 16.8% increase over C$48 million earned in the year-ago period, on an 18.2% lift in revenue to C$1.62 billion.
Ultra Electronics Airport Systems will supply and install a range of its latest airport information systems at Minneapolis-St. Paul, including UltraCuse, UltraSeats, UltraSelfService, UltraFIDS, UltraResource (resource allocation) and UltraDB (airport operational database). ARINC certified the compact IER 918 CUSS check-in kiosk for operation with ARINC's enhanced SelfServ CUSS kiosk platform.
Correction: ATWOnline reported that Airbus was set to announce the adoption of an all-composite fuselage barrel for the A350 XWB at next week's Paris Air Show. This report was based on very recent conversations with multiple sources, whose accuracy and insights heretofore we have had no reason to question. However, based on subsequent information received from Airbus, we accept that this report was inaccurate and that Airbus does not intend to adopt an all-composite barrel for the A350. ATWOnline regrets the error.
Despite the delay, China Eastern Airlines remains committed to selling a stake to Singapore Airlines and plans to issue additional shares tailored for SIA when the deal finally is concluded, CEA President Li Fenghua confirmed at last week's IATA AGM in Vancouver.
Continental Airlines estimated that May consolidated RASM fell 0.5%-1.5% year-over-year, although mainline unit revenue is estimated to have risen up to 1%. CO flew 8.14 billion consolidated RPMs during the month, up 6.4% from the year-ago month, as domestic traffic rose 8.9% and international grew 7.3%. Capacity climbed 5.8% to 9.98 billion ASMs on a 8.2% domestic rise and a 6.2% international increase. Consolidated load factor was up 0.5 point to 81.5%.
Domodedovo Airlines reported a RUB495.6 million ($19.2 million) net loss in 2006, nearly double its deficit in the prior year, Russia's AK&M reported. Revenues rose 27.4% to RUB7.6 billion. Domodedovo operates 15 IL-62s and five IL-96-300s.
Ryanair's plans to launch inflight mobile phones in cooperation with OnAir ( ATWOnline, Aug. 31, 2006) have been delayed by four months as regulatory approval has taken longer than expected, the Irish Independent confirmed. The system has approval from relevant Irish authorties, but a handful of other countries, mainly in Scandinavia, have yet to agree. CEO Michael O'Leary last week conceded that the new system will not be running until November at the earliest.
Air India is in a "wait-and-see" position regarding its interest in taking a stake in Serbian flag carrier Jat Airways, which also has caught the eye of Aeroflot. "We were talking with the [Serbian] government, but we haven't taken any clear decision" on whether to invest in Jat, AI Chairman and MD V. Thulasidas told ATWOnline.
Frontier Airlines will retrofit its A318/A319 fleet with lighter seats in an effort to cut annual fuel costs by $5.4 million. The 18-month project is expected to begin later this year and is projected to reduce weight by up to 1,588 lb. on the A319 and up to 1,372 lb. on the A318. Each of the three-seat sets supplied by B/E Aerospace weighs about 36 lb. less than existing seats.
Turkish Airlines CEO Temel Kotil said the carrier is investing heavily in growth as it prepares to join Star Alliance next year. "We are adding about 20 new aircraft this year and will reach a fleet size of 100 by the end of 2007," he told ATWOnline. New aircraft and onboard product upgrades are part of THY's effort to upgrade its image. It also will increase its advertising spend considerably. Kotil said it has budgeted $50 million for advertising this year and $70 million in 2008.
Former Swissair executives were acquitted yesterday of all charges in the mismanagement and fraud case stemming from the airline's October 2001 collapse. Prosecutors brought charges against 19 former executives ( ATWOnline, Jan.
Ryanair is launching an effort to generate revenue through inflight advertising on seatbacks and overhead luggage bins. It signed a contract with Inviseo Media to sell seatback advertising on five aircraft and a deal with Fourth Edition to sell ads on overhead bins. "Passengers will benefit. . .because these revenues will help keep our fares the lowest in Europe," COO and Deputy CEO Michael Cawley said.
