Pratt & Whitney Canada said yesterday it will open a new parts distribution center in Amsterdam to provide "rapid parts deliveries" for its engine customers in Europe, the Middle East and Africa. The facility will carry "a large inventory of new parts, accessories and line-replaceable units for all P&WC engine models" and will assume responsibility for parts orders previously processed by its Southampton facility.
Avianca Chairman German Efromovich said the company is in the final stages of negotiating a "big" fleet purchase expected to be completed before the end of January. Speaking at ALTA's third annual Latin American Airlines Leaders Forum in Cancun, Efromovich, who also is CEO of Brazil's Synergy Group, said the value of the order excluding options is in the area of $2.5 billion and comprises single- and twin-aisle aircraft. They will be divided between Avianca and OceanAir of Brazil, which both are under the Synergy Aerospace umbrella. He said he was talking to Airbus and Boeing.
Kingfisher Airlines posted a INR1.07 billion ($23.9 million) loss for the first six months of its fiscal year ended Sept. 30, The Economic Times reported. CEO Vijay Mallya said Indian LCCs are undercutting the market by offering low fares from which even the LCCs cannot earn profits. He has complained formally to India's Directorate General of Civil Aviation, writing in a letter to the agency that the fares are "not sustainable" and that "cash losses will only keep mounting."
AirAsia reported MYR5.7 million ($1.6 million) in net income for its fiscal first quarter ended Sept. 30, reduced from an MYR8.7 million profit in the year-ago quarter, a 34.5% drop the airline attributed to more than MYR5 million in deferred taxation that negatively impacted otherwise strong results.
Ethiopian Airlines signed an agreement with ILFC to lease a 220-seat, two-class 767-300ER for five years effective Dec. 8. The carrier recently extended its network from Addis Ababa and now offers twice-daily services to Dubai, 11 weekly flights to Lagos, eight weekly flights to Accra, a daily service to Khartoum and Johannesburg, six-times-weekly flights to Dakar, five to N'djamena and four to Lome.
Airlines of Latin America and the Caribbean region are enjoying strong traffic demand and face a bright future, Merrill Lynch airline analyst Michael Linenberg told attendees at the third annual Latin American Airlines Leaders Forum sponsored by ALTA (Asociacion Latinoamericana de Transporte Aereo) yesterday in Cancun.
TAM has changed its approach to ticketing, launching a new "fare profiles" system yesterday that will allow passengers to purchase tickets based on specific needs. For flights to Brazilian destinations, passengers "will be able to choose promotional prices or other benefits pertaining to a given profile," the carrier said in a statement. Each of the five profiles (Promo, Light, Flex, Max and Top) presents "clear characteristics and rules" from which customers can choose.
Qantas said late yesterday in a stock exchange filing that it expects its pre-tax profit for the fiscal year ending June 30, 2007, to be 25%-30% higher than the A$480 million ($377.3 million) earned in the 12 months ended June 30, 2006. The increase comes "as a result of strong trading conditions and subject to fuel prices remaining around current levels," the carrier said.
Iberia appears to be more eager to participate in European airline consolidation than oneworld partner and shareholder British Airways, although the Spanish carrier dismissed reports that it is dissatisfied with its UK partner.
US Airways presented its case for a takeover of Delta Air Lines yesterday to DL management and representatives of its creditors' committee ( ATWOnline, Nov. 29). US Airways Chairman and CEO Doug Parker said, "We reviewed our offer and had a chance to engage in discussions on the many facets of this proposal. While we recognize the steps that Delta management has taken, we are confident that our proposal for a 'New' Delta will create more value than a standalone plan."
Switzerland officially joined EASA yesterday, becoming the fourth non-EU country to adopt EU aviation safety legislation. Norway, Iceland and Liechtenstein are the others.
Hawaiian Airlines signed a letter of intent to purchase three of seven 767-300ERs currently leased from an affiliate of AWAS Aviation Services. The carrier also amended the leases for the remaining four AWAS aircraft. The purchases are expected to be finalized next month, subject to financing. One of the changes to the AWAS agreement was to remove a provision that would have allowed the lessor to exercise early termination options by the first of the year.
KLM UK Engineering opened an expanded maintenance hangar at Norwich International Airport. KLM invested £1 million in the facility that now will be able to perform work on larger aircraft like 737NGs, and will add approximately 50 new jobs.
Ryanair increased its stake in Aer Lingus to 25.2% from 19.2%, which brings the LCC's holding in the recently privatized national carrier on a par with the 25.4% held by the Irish government.
Singapore Airlines took delivery of the first two of 19 777-300ERs and has not ruled out orders for the 777-200LR and possibly the 747-8. The airline accepted the aircraft, which feature a radical cabin upgrade, yesterday in Seattle and will take delivery of another four by Dec. 31.
British Airways said yesterday that three 767s used on short-haul routes have been removed from service indefinitely after the UK government informed the carrier Tuesday night that the aircraft were to be examined as part of the investigation into the highly publicized poisoning death of former Russian spy Alexander Litvinenko. BA said initial forensic testing confirmed that low traces of a "radioactive substance" were discovered aboard two of the aircraft.
Wizz Air completed a sale/leaseback transaction with GECAS for four new A320s, which will be delivered in the first half of 2008. They will be leased on an 11-year term. Wizz has 32 A320s on order plus 12 options and expects to operate 53 by 2012.
Middle East Airlines is finalizing an agreement to acquire four A330-200s and four A319s. According to the Arab Air Carriers Organization, two aircraft would arrive in 2008 and the other six in 2009. MEA would use the additional aircraft to increase frequencies on popular routes and is considering new destinations in Qatar, Iraq and Russia.
Finnair confirmed four E-190 options yesterday, signing an order for the 100-seat aircraft worth more than €100 million ($131.4 million). The jets will be delivered in 2008-09. The carrier currently operates 10 76-seat E-170s and now has 10 E-190s on order, the first of which will be delivered next month.
Boeing named Commercial Airplanes VP-Business Strategy and Marketing Nicole Piasecki as the new VP-Boeing International and president of Boeing Japan effective in March.
Grupo Aeroportuario del Centro Norte, the Mexican airports operator known as OMA, raised $375.8 million this week in an IPO in which Mexico's government divested its remaining 48% stake in the company, completing the privatization that began in 2000 ( ATWOnline, Nov. 16). The funds raised were higher than expected as the government sold its shares for $18 each. Shares will be listed on Nasdaq under OMAB. OMA operates airports in Monterrey, Acapulco, Mazatlan and Zihuatanejo plus nine other regional facilities.
El Al posted a third-quarter profit of $1.8 million, a plunge of 96.6% from a $52.2 million profit in the year-ago quarter, Reuters reported. Revenues declined 7.9% to $447 million.
World Airways extended its leases with ILFC on six MD-11s (three passenger and three freighter) through March 2013-May 2014. Leases originally were set to expire in 2008 and 2009. North American Airlines, a subsidiary of World Airways parent World Air Holdings, extended leases for two 757-200ERs (one with ILFC and one with GECAS) until May 2013 and May 2014. Leases were scheduled to expire in 2007 and 2008.
Delta Air Lines said it has received permission from its unsecured creditors to allow an additional estimated $719 million in unsecured, pre-petition claims for nonqualified pension benefits for retired pilots, lifting the total of allowed claims to $800 million. "As a result of this effort, our retired pilots will recover through the claim process a significant portion of their unpaid nonqualified benefits," CFO Edward Bastian said.
