IAE International Aero Engines and China Southern Airlines announced that the carrier ordered V2500s to power 50 A320 family aircraft and signed a long-term V2500Select aftermarket agreement in a deal worth more than $1.35 billion. The aftercare program also will cover China Southern's 74 existing V2500-powered aircraft. The 50 aircraft are its allocation from China's 150-aircraft order placed one year ago ( ATWOnline, July 10).
Singapore Airlines once again applied pressure on the Australian government for access to the Sydney-Los Angeles/San Francisco route after Virgin Blue announced it will not launch transpacific services until 2008 at the earliest. In a statement, SIA said, "Consumers will now be waiting at least another two full years before there's any new competition on that route.
United Airlines and Continental Airlines each declined to confirm numerous US media reports that they are discussing a potential merger. UA Chairman, President and CEO Glenn Tilton said this week that the carrier is actively exploring consolidation "options available" but did not name any potential partners ( ATWOnline, Dec. 13).
Oneworld announced that it will welcome Dragonair next year following the Hong Kong carrier's merger with oneworld founding member Cathay Pacific Airways ( ATWOnline, Sept. 29). "All parties are committed to bring Dragonair onboard oneworld as soon as possible in 2007, immediately all necessary joining technicalities and processes have been completed," the alliance said.
American Airlines flew 10.71 billion system RPMs in November, a 1.1% drop from the year-ago month. Capacity fell 3.7% to 13.43 billion ASMs and load factor rose 2.1 points to 79.7%. Domestic traffic declined 3.2% to 7.15 billion RPMs against a 4.8% fall in ASMs to 8.75 billion, lifting load factor 1.4 points to 81.7%. International RPMs rose 3.3% to 3.56 billion, capacity was down 1.5% to 4.68 billion ASMs and load factor climbed 3.5 points to 75.9%. British Airways flew 8.76 billion RPKs in November, down 0.8% from the year-ago month.
AirTran Airways revealed yesterday that it continues to be willing to wager approximately $290 million on the notion that opposites do indeed attract, as the prototypical low-cost carrier said it intends to forge ahead in its bid to acquire Midwest Airlines despite the Milwaukee-based full-service carrier's rejection of its initial overture.
United Airlines Chairman, President and CEO Glenn Tilton said yesterday that the carrier is actively exploring consolidation options as it closely follows the proposed US Airways takeover of Delta Air Lines.
ANA issued a statement last week indicating that it is in the "final steps" of selling hotels and real estate worth approximately $952 million, according to Reuters. ANA owns 13 Japanese hotels that produced revenues of about $571 million in the fiscal year ended March 31.
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.
