Volvo Aero is expanding its Newington, Conn., Aero-Craft facility by 67.5% to 67,000 sq. ft. and almost doubling the number of employees in a $15.3 million project that will see Volvo produce fan cases for the GE90, GEnx, Trent 900 and Trent 1000.
Precision Conversions will provide seven full 757-200PCF conversions that will be leased by VarigLog. SkyWorks Capital of Connecticut is managing the deal. The first aircraft will be delivered in January.
Qantas introduced online check-in for same-day-return domestic flights. Separately, Qantas Freight launched a four-times-weekly Melbourne-Auckland overnight service aboard a 767-300F.
Northwest Airlines last week sought permission from a US Bankruptcy Court to hire Evercore Group as an adviser on "strategic alternatives." The move was seen widely as preparation to respond to a potential US Airways/Delta Air Lines merger. United Airlines already has retained Goldman Sachs to provide merger advice. Bankrupt NWA will pay Evercore $275,000 to launch the relationship and then $75,000 monthly. The bankruptcy court must approve the deal.
Silverjet, a UK startup that will offer all-business-class flights between London Luton and Newark beginning next month, said it reached agreement with Luton Airport to build a separate terminal that will be modeled after a private jet facility and enable it to check in and board passengers in just 30 min. The airline said there will be "no check-in desks" in the new terminal.
Lufthansa and Turkish Airlines yesterday inked a bilateral cooperation agreement that will include codesharing and similar flight schedules. The accord was signed in Istanbul by Lufthansa Chairman and CEO Wolfgang Mayrhuber and Turkish Chairman Candan Karlitekin. THY officially became the newest member of the Star Alliance over the weekend ( ATWOnline, Dec. 11). Beginning March 25, LH and THY will operate selected flights between the two countries on a codeshare basis and "harmonize" schedules.
American Airlines last week asked the US Dept. of Transportation to approve a "modification" to its application to win route authority to China, saying it now wants to operate service to Beijing from Chicago-O'Hare rather than Dallas/Fort Worth to comply with flight distance provisions in its labor agreement with pilots. The AA aircraft going to China would originate at DFW but would fly first to O'Hare and then go to Beijing as a "through flight." The return from Beijing would operate directly to DFW.
Mesa Air Group flew 561.6 million RPMs in November, up 3.1% over the same period a year ago, while ASMs were up slightly more than 1% to 766.4 million. Load factor improved 3.9 points to 75.5%. The carrier also reported that its Hawaiian inter-island subsidiary go!, which started service in June, carried 57,383 passengers in November, resulting in a load factor of 63.7%.
Oman Air management presented a five-year business plan that includes expansion into long-haul services to its board and the country's Ministry of National Economy, according to CEO Ziad Karim Al-Haremi. "We're looking to develop a network spanning 42 destinations, of which 11 [would be] long-haul," he told ATWOnline in Kuwait recently, adding that the carrier is aiming to commence its first long-haul flights in fall 2008.
Austrian Airlines Group CEO Alfred Oetsch confirmed to ATWOnline during the Star Alliance meeting last week in Istanbul that none of the carrier's long-haul routes are profitable. "But with the restructuring of our long-haul network, it should become profitable soon," he insisted. The carrier has simplified its fleet and plans to operate only 777-200s and 767-300ERs on long-haul routes. It is taking delivery this month of its fourth 777-200. Along with its six 767-300ERs, Oetsch said the long-haul fleet is the right one for the airline going forward.
Varig was conspicuously absent from last weekend's Star Alliance meeting and ceremony in Istanbul, prompting speculation about whether or not the struggling Brazilian carrier remains a viable component of Star.
Star Alliance CEO Jaan Albrecht called Turkish Airlines a "rising star" but a more appropriate metaphor might be a bridge--one that connects Europe to the Middle East and Asia and offers access to a vibrant tourist destination and a growing economy in which a scant 5% of 70 million people fly commercially.
Allegiant Travel Co., parent of Allegiant Air, raised $90 million in gross proceeds late last week through an IPO of 5 million shares of common stock priced at $18 per share. Allegiant granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover any overallotments. The stock will trade on the Nasdaq under the symbol ALGT. Allegiant Air has operated primarily in leisure markets, linking smaller cities with major tourist destinations such as Las Vegas, Orlando and Tampa/St.
Midwest Airlines signed an agreement Friday to acquire two MD-80s that will be used to expand long-haul flying from its Milwaukee hub. "The acquisition of these aircraft provides new opportunities for Midwest and its customers," said Senior VP and CMO Scott Dickson. The aircraft will be placed into service in the first half of 2007, with routes and schedules to be announced at a later date. Midwest currently operates a fleet of 11 MD-80s and 25 717s. With its wholly owned subsidiary Midwest Connect, it provides service to 47 cities.
Singapore Airlines CEO Chew Choon Seng told ATWOnline in Istanbul that the recently announced bid for Qantas might be a wakeup call for Australian officials who favor protecting the flag carrier to the detriment of SIA's wish to operate a transpacific service from Australia.
Star Alliance Corporate Plus will bring in €2.2 billion ($2.9 billion) in sales in 2006, alliance officials said Saturday in Istanbul. The program, which targets corporate travel buyers by offering the entire Star network through an individual carrier's sales team, now boasts more than 80 clients and is enjoying 20% year-over-year revenue growth.
Emirates Executive Vice Chairman Maurice Flanagan remains imperturbably upbeat despite the challenges facing the global air transport industry. Bucking all recent trends, including fuel price increases that have pushed the fuel element of total airline costs from 13% five years ago to 30% today, the Dubai-based carrier continues its seemingly inexorable progress on the path to growth and increased profits.
Delta Air Lines reached aircraft purchase and sale agreements with Boeing and two aircraft lessors yesterday as part of an effort to right-size its fleet to emerge from bankruptcy as a standalone carrier with a heavy emphasis on international services.
AirTran Airways would be interested in acquiring assets from Delta Air Lines or US Airways if those carriers need to make sales to alleviate anticompetitive concerns in order to facilitate a potential merger, President and COO Bob Fornaro said yesterday.
Air Canada said new aircraft entering its fleet will continue to drive operating costs down. Costs were down across the board in the first nine months of 2006, Executive VP and CFO Joshua Koshy said yesterday in New York at the Calyon Securities Airline Conference, which was available via webcast.
Boeing confirmed this week that UK tour operator First Choice Airways ordered an additional two 787-8s for delivery in 2011. First Choice, the European launch customer for the 787, placed its first order for six in July 2004. It now has eight on firm order, with the first set to enter service in 2009. "This follow-on order from our European launch customer...speaks volumes about their belief in the exceptional benefits the 787 will bring to their passengers," Commercial Airplanes VP-Sales-Europe, Russia and Central Asia Marlin Dailey said.
Kenya Airways said it will lease three E-170s from GE Commercial Aviation Services to help expand its domestic and regional routes. The first two will be delivered in May and June 2007 and the third in June 2008, replacing Saab 340B turboprops. By the end of this month, Kenya Airways also will have taken delivery of three 737-800s it is leasing from Singapore Aircraft Leasing Enterprise.
Philippine Airlines yesterday placed firm orders for two 777-300ERs plus two options and signed a letter of intent with GE Commercial Aviation Services to lease two more dash 300ERs. PAL said deliveries of the purchased and leased dash 300ERs will begin in the 2009 third quarter and continue through 2010. The aircraft on option will be delivered in 2011 and 2012. The airline said it will operate the aircraft in a two-class configuration seating up to 368 passengers.
ANA Aviation Services was named UK cargo sales agent for Florida West International Airways. ANA partner NAS Network Airline Services will represent FWIA as its cargo sales agent in France.
