Airlines & Lessors

An-12 freighter belonging to Congolese carrier Galaxy crashed Friday at Goma, killing all eight aboard. The airline is among those blacklisted by the EU. According to the Flight Safety Foundation's Aviation Safety Network, the aircraft was en route from Kisangani and was carrying palm oil. It crash-landed on its scheduled stopover at GOM, sliding into a petrified lava flow and catching fire.

Emirates President Tim Clark is promising a spectacular interior for its A380s but is tight-lipped on details, although he was happy to confirm that EK wants to double its commitment to the type. Speaking to ATWOnline at the unveiling of the airline's newest ultra-long-range product aboard a 777-300ER over the stunning skyline of Dubai, he would only say, "You haven't seen anything yet" compared to the 777 interior. He said the A380 interior will be revealed in the second quarter of 2008.

American Airlines flew 12.53 billion system RPMs in August, a 0.4% increase from the year-ago month, as domestic traffic rose 1.5% and international fell 1.6%. Capacity was down 3.1% to 14.74 billion ASMs on a 3.4% domestic drop and a 2.6% international decline. System load factor rose 3 points to 85%. Domestic was up 4.2 points to 86.7% and international up 0.9 point to 82.1%. Northwest Airlines flew 7.14 billion consolidated RPMs in August, up 1.3% on the year-ago month, on a 3.2% domestic decline and a 6.9% international increase.

Ryanair will establish its 23rd base at George Best Belfast City Airport, placing a new 737-800 there from Oct. 30 and launching four routes, including a four-times-daily service to London Stansted. In July, the LCC announced it would launch daily flights to Nottingham East Midlands, Glasgow Prestwick and Liverpool from BHD. The latter was doubled to twice-daily at yesterday's announcement. Air Berlin announced last week it would abandon its BHD-STN service.

US Airways named former Northwest Airlines executive Robert Isom to the newly created position of executive VP and COO, effective immediately. Isom, 43, will be in charge of flight operations, inflight services, maintenance and engineering, airport customer service, reservations, cargo and the carrier's Express operation and will report directly to President Scott Kirby. Isom comes to US from GMAC, where he last served as chief restructuring officer.

American Airlines will conduct a test Sept. 10-30 on flights from San Francisco during which it will accept only credit or debit cards for onboard transactions. AA began accepting cards for purchases last year and said it is investigating whether passengers prefer that payment method. Separately, AA this week launched thrice-daily flights between New York LaGuardia and Minneapolis-St. Paul aboard MD-80s, added a third daily New York JFK-Chicago O'Hare service and launched daily JFK-Las Vegas flights aboard a 757.

Caribbean Airlines appointed Star Alliance VP-Commercial Philip Saunders as its new CEO effective Oct. 1. He will replace Peter Davies, who will remain a strategic adviser to the board. Saunders previously held management positions at British Airways, SN Brussels Airlines and Deutsche BA.

Indian Civil Aviation Minister Praful Patel yesterday informed the Lok Sabha (lower house of parliament) that the merged Air India's board voted to join Star Alliance, according to the United News of India news service and The Economic Times.

China Eastern Airlines this week confirmed its plan to launch a new regional carrier in partnership with AVIC I, continuing a recent trend that has seen several companies invest in China's long-neglected regional market.

Air New Zealand said it will shut down its Freedom Air low-cost unit next March 30, replacing many of its services with ANZ mainline flights, which the company said have similar fares to Freedom flights but offer better service. GM-Short Haul Airlines Norm Thompson, who soon will move to the newly created post of ANZ deputy CEO, said a review of short-haul Freedom services across the Tasman Sea to Australia revealed that passengers' "overwhelming preference was for us to focus on upgrading and enhancing our services."

Air Transat parent Transat AT reported a C$16.7 million ($15.9 million) profit in the third fiscal quarter ended June 30, nearly four times greater than the C$4.2 million posted in the year-ago quarter. it credited increasing revenue as well as the adoption of new accounting standards related to hedge accounting and foreign exchange gains, which combined to produce a nonmonetary gain of C$5.7 million. Third-quarter revenue rose 21.4% year-over-year to C$741.8 million. Nine-month earnings were up 22.9% to C$72.8 million.

GMF AeroAsia and MTU Maintenance Zhuhai entered into a three-year, $100 million partnership focusing on CFM56-3 MRO. Garuda Indonesia said that more than 200 units are in operation by Indonesian carriers. MTUMZ is a joint venture between MTU Aero Engines and China Southern Airlines.

Republic Airways Holdings will purchase 2 million shares of its common stock from WexAir, its former majority shareholder, for $38.4 million or $19.20 per share. Transaction is expected to close Friday. RAH last week announced a year-long, $100 million repurchase program.

TAM decelerated its A320 family fleet plan for 2008-11 based on lower "demand growth expectations in the domestic market" resulting from Brazil's ongoing ATC challenges. Its 2008 fleet will contain 98 Airbus narrow bodies, down from 103 originally planned. A320 family aircraft in TAM's fleet will total 101 in 2009, down from 106; 107 in 2010, down from 112, and 110 in 2011, down from 115.

US FAA issued a final decision on the redesign of the airspace over the US Northeast that it said will "reduce delays, fuel consumption, aircraft emissions and noise." The redesign involves a 31,000-sq.-mi. area over Connecticut, New York, New Jersey, Pennsylvania and Delaware. Delays are expected to fall 20% by 2011, when the redesign is slated to be completed.

Bmi will launch service to 14 international destinations on Oct. 28, increase service to two others formerly served by BMED and start flying daily to Cairo on Nov. 4 in what CEO Nigel Turner called "the single largest expansion of the bmi brand in the history of the airline."

United Airlines flew 10.84 billion RPMs in August, 2.3% more than in the year-ago month, against a 1% decline in capacity to 12.57 billion ASMs. Load factor increased 2.8 points to 86.3%. British Airways flew 10.33 billion RPKs in August, up 5.3% on the year-ago month. Capacity climbed 2.8% to 12.91 billion ASKs, lifting load factor 1.8 points to 80%. Southwest Airlines flew 7 billion RPMs in August, a 12.1% lift from the year-ago month. Capacity was up 8.1% to 8.75 billion ASMs and load factor rose 2.9 points to 80%.

South African Airways said it will realize "significant cost savings" following renegotiation of several service contracts and grounding of two of its six 747-400s, with the remainder to follow in the coming months. "In just over three months since the approval of our business plan, we are beginning to realize some of its objectives which will place us on the road towards financial sustainability," GM-Operations Chris Smyth said ( ATWOnline, July 4).

Ethiopian Airlines signed a six-year lease for one 757-200ER from GECAS.

Lufthansa Cargo and German mail and logistics group Deutsche Post plan to create a cargo airline, according to widespread domestic press reports. The companies have applied to set up a 50/50 joint venture. A source close to the deal told ATWOnline that an announcement concerning the cooperation will be made this month. Operations could start in 2009 with a base at Leipzig/Halle.

Air Malta is wet-leasing two A320s to Etihad Airways and providing operational support on a third for the winter schedule from Sept. 1.

Aeroflot yesterday said it finalized an order for 22 787-8s valued at $3.6 billion following shareholder approval of the transaction. "The 787 will open new market opportunities as we further modernize our fleet and expand our international reach," GD Valery Okulov said. The airline announced neither an engine selection nor a delivery schedule. Previous reports pegged deliveries as starting in 2014 ( ATWOnline, June 12). Boeing has logged orders for 706 787s from 48 customers, including 258 orders this year.

Frontier Airlines Holdings said its Lynx Aviation regional subsidiary will not receive US FAA certification in time to fly by the originally scheduled launch date of Oct. 1 ( ATWOnline, July 4). The company assured Frontier Airlines customers flying to Lynx destinations that they would not be affected by the delay. It also said it expects pre-operating expenses attributable to Lynx will total around $8 million in the third fiscal quarter ending Dec. 31.

Aviation Capital Group placed an order for 15 additional 737NGs valued at $934 million, bringing its total firm commitments for the type to 59. The lessor also has firm orders for five 787s. Boeing said the order previously was posted on its Orders and Deliveries website as unidentified.

Estonian Air will add two 33-seat Saab 340s to its current fleet of six 737s. The regional aircraft will operate three new routes: Daily Tallinn-Helsinki and six-times-weekly Tallinn-Vilnius beginning Sept. 24 and twice-weekly Tallinn-Kuressaare-Stockholm Arlanda from Sept. 27. The airline also is planning to launch service to St. Petersburg and Minsk when it secures the traffic rights. The 340s will be operated by Estonian Air Regional, a wholly owned subsidiary.