Lufthansa Flight Training opened a new simulator center in Vienna that initially will accommodate one CAE A320 FFS. A second simulator--either another A320, a 737 or a 767--will be introduced by next summer depending on demand, LFT said. Eventually, four simulators will be housed at Lufthansa Flight Training Vienna, which will be used mainly by Austrian Airlines pilots. Austrian is LFT's biggest customer after LH. Crews from Germanwings, Niki, S7 Airlines and others also are using the new facility.
Northwest Airlines yesterday announced the completion of restructured agreements with Boeing and Rolls-Royce that will allow the bankrupt carrier to begin taking delivery of its 787s in August 2008. NWA placed an order for 18 Trent 1000-powered 787s, with purchase rights for an additional 50, last year ( ATWOnline, May 6, 2005).
Air Line Pilots Assn. elected a new president, signaling that its members are "prepared to move into a new period of strong, concerted action to rebuild their profession," according to the union. John Prater, a 767 captain with Continental Airlines, narrowly defeated two-term, eight-year incumbent Duane Woerth. "After five years of concessionary bargaining, lost pensions and battered work rules, our pilots are primed to take offensive action," Prater said.
AeroRepublica signed a lease agreement with GECAS for an Embraer 190 to be delivered in the fourth quarter of 2007. The Colombian carrier will take eight 190s through 2007, three from GECAS and five from the manufacturer.
Qantas is set for a showdown with Australian unions after it announced it will outsource its IT applications support and maintenance to Indian global service providers Satyam Computer Services and Tata Consulting Services starting next month. CEO Geoff Dixon said in a statement that it would cost Qantas A$100 million ($75.4 million) to develop its own "in-house capability in this area to industry best practice standard--an investment it could not support given the extensive capital expenditure program already underway." The shift will take 15 months and cost 340 jobs.
Southwest Airlines yesterday cited a $40 million revenue reduction related to the August terrorist threat, special charges and "an overall softening in demand for air travel" as reasons for a 77.1% plunge in third-quarter profit to $48 million from net income of $210 million in the year-ago quarter.
Dramatic capacity increases and a "softening yield environment" resulted in another difficult quarter for India's Jet Airways, which reported a loss after tax of INR551 million ($12.1 million) in the second fiscal period ended Sept. 30 compared to a INR686 million profit in the year-ago quarter. Revenues rose 38% to INR18.2 billion, a figure boosted by the sale and leaseback of three 737s during the quarter that generated INR1.62 billion. EBITDAR plunged 90% to INR334 million.
Finnair and Finnish flight attendants' union SLSY failed to reach an agreement yesterday in their dispute over the recruitment of new cabin staff, resulting in a strike that began at 4 a.m. local time ( ATWOnline, Oct. 19).
Etihad Airways will commence thrice-weekly Abu Dhabi-Tehran flights on Dec. 2 aboard a 777-300ER. LTU German Airlines added two flights each weekday between Dusseldorf and Munich. JAT Airways will launch operations next month from its secondary hub Nis, the third-largest city in Serbia, to Zurich, Vienna, Frankfurt, Basel and Dusseldorf.
China Southern Airlines signed a purchase agreement for six 777Fs, Boeing said yesterday, in a deal Chinese media said was worth $1.84 billion. Deliveries will begin in the fourth quarter of 2008. China Southern subsidiary Xiamen Airlines signed for six 737-800s to be delivered in 2010, according to press reports. The latter deal reportedly includes the cancellation of an order for three 787s.
Dragonair flew 583.2 million RPKs in September, an increase of 8.4% over the year-ago month. Capacity climbed 3.9% to 884.1 million ASKs and the number of passengers rose 9.4% to 455,585.
Ryanair's bid for Aer Lingus continues to create controversy in Ireland, with the latter's SIPTU workers demonstrating yesterday morning outside the lower house of the Irish parliament to emphasize their opposition to Ryanair's plans and call on the government to buy back EI shares in order to block the takeover.
JetBlue Airways received approval to operate four daily flights at Chicago O'Hare, according to press reports ( ATWOnline, Oct. 13). The airline has yet to make an announcement or to negotiate a lease for terminal space at ORD, the Chicago Tribune reported.
Air One yesterday confirmed it offered to pay BGN5.3 million ($3.4 million) to purchase 99.99% of Bulgaria Air. Italy's second-largest airline also committed to invest €11.6 million ($14.5 million) in the Bulgarian carrier over a five-year period in addition to a €500 million fleet renewal if it wins the tender launched in June and approved in February ( ATWOnline, Feb. 6).
American Airlines parent AMR Corp. kicked off the fall financial reporting season yesterday with its announcement that it earned a net profit of $15 million in the third quarter, a reversal from a $153 million loss in the year-ago quarter but a figure reduced substantially by a $99 million noncash charge that reduced the book value of specific outstanding fuel hedge contracts.
Air Slovakia has been sold to Indian businessman Harjinder Singh Sidhu for an undisclosed price estimated to be around $30 million. Sidhu is the principal financier behind Golden City Aviation, a new company based in Vienna. Austrian media reported Golden City already has operated its first flight, a Vienna-Cologne service aboard an MD-83 belonging to Austrian charter company MAP.
Boeing said that Guggenheim Aviation Partners ordered four 747-8Fs, with an option for two more, on behalf of one of its investment funds. Deliveries will start in 2009.
Adria Airways said it achieved a "small profit" in the nine-month period ended Sept. 30 as passenger numbers climbed 15% over the year-ago period to 811,132. LOT Polish Airlines should be set for an IPO by the end of 2007 or early 2008. The Polish government said last week that more details will be released when year-end 2006 financial figures become available, Polish news agency PAP reported.
Southwest Airlines is ready to "bring the Dallas/Fort Worth area into the 21st century of low-fare air travel" following President George Bush's signing of a law last week that will weaken and ultimately repeal the Wright Amendment ( ATWOnline, Oct. 17).
Pilots and other union employees at Mesaba Airlines were prepared to walk off the job just after midnight last night if the airline rejected its current negotiated agreements and imposed another round of pay cuts. A strike could put the bankrupt carrier out of business. Mesaba was in court late yesterday seeking an injunction against the work action. "We don't believe the unions have the right to strike," spokesperson Elizabeth Costello told ATWOnline. She said the company has continued trying to reach a consensual agreement.
Tiger Airways ordered eight more A320s, which will build its fleet to 20 by 2010. The $500 million deal was signed yesterday and the first four aircraft will be delivered in 2008 with the balance in the following two years. Tiger has seven A320s in service with two more arriving this year and three in 2007. CEO Tony Davis told reporters that passenger numbers increased by more than 70% in the first six months of the current fiscal year. The LCC serves 15 cities in seven countries.
British Airways yesterday took the first step in its long-awaited long-haul fleet renewal, issuing an RFP to Airbus and Boeing as well as Engine Alliance, General Electric, Rolls-Royce and other key component suppliers. The aircraft under consideration are the A330, A350 XWB and A380 and the 787, 777 and 747-8.
Korean Air President and COO Jong Hee Lee projected the carrier's full-year 2006 net income will remain flat at about $200 million on $8 billion in revenues. Briefing reporters this week in Seoul, he said he was "disappointed" with the projected results and added that rising fuel prices are slowing growth. "Fuel has a terrible, big impact," he said, noting that the carrier will pay $500 million more in fuel expense in 2006 than it did last year.
Singapore Airlines unveiled a $360 million revamp of its long-haul product that positions it at the very top of the premium market. Originally designed for the A380, the features will be installed in the six new 777-300ERs scheduled to be in service by year end. According to SIA Senior VP-Operations and Services Bey Soo Khiang, "involvement of the airline's customers was key to the entire process." Those customers said they would be prepared to pay up to 20% more for the new features.
