Air Line Pilots Assn. officials representing pilots at Atlantic Southeast Airlines, a Delta Connection carrier, voted unanimously to express no confidence in the airline's management team. "Following more than three years of collective bargaining talks, with little to show for our effort, management has continued to stall this process to avoid reaching an agreement with our pilots," said Bob Arnold, chairman of the ASA Master Executive Council. The unresolved contract issues center around wages, benefits and "financially related matters," according to ALPA.
Kuwait Airways recorded an operating profit of KWD3 million ($10.2 million) for the half-year ended Sept 30, according to Reuters. Chairman Sheikh Talal Mubarak al Sabah said the figure would have risen to KWD12.2 million if not for the jump in fuel costs.
Volare Airlines' proposed sale has attracted offers from about 10 groups, including Alitalia, AirOne, Meridiana, Eurofly and easyJet, La Stampa reported. Deadline for submission of takeover bids for the Italian carrier was Sunday at noon. Alitalia Chairman and CEO Giancarlo Cimoli said last week that his carrier might buy Volare "if the price is fair" ( ATWOnline, Nov. 17). The LCC, which offers domestic and European low-fare flights under the volareweb.com brand, collapsed last year along with Air Europe, its carrier for intercontinental scheduled and charter flights.
Northwest Airlines discontinued absorbing passenger facility charges as of yesterday. The carrier said it traditionally absorbed the charges by marking down base fares, thereby staying price competitive with service through connecting hubs that do not charge PFCs. It said the practice cost it $80 million in 2004 alone. The resulting fare hike on US routes will amount to $1.50-$4.50 each way depending on itinerary. GDS improvements will allow NWA to raise prices on individual tickets depending on the PFC at a particular airport in order to maintain fare consistency.
Heico Corp.'s Flight Support Group, through its Heico Aerospace Holdings subsidiary, acquired a 51% interest in New York-based Seal Dynamics for cash. SDI is a designer and distributor of approved hydraulic, pneumatic, mechanical and electromechanical components. Heico AH is owned 20% by Lufthansa Technik.
SN Brussels Airlines signed a cooperation agreement with Air Senegal International. From Dec. 1, the Senegalese airline will add its code and sell seats on the six weekly flights operated by SN between Brussels and Dakar with A330-300s.
International Lease Finance Corp. confirmed its order for 20 787s and four options, worth approximately $2.7 billion, at the Dubai Air Show. ILFC President and CEO John Plueger told ATWOnline that the leasing giant is "in discussions with three 787 customers" to take the new aircraft, which will include both dash 8s and dash 9s. Deliveries will commence in January 2010.
Ryanair CEO Michael O'Leary said he will step down in 2008. The LCC's outspoken chief executive told the Irish Independent it would be time to go once the "outstanding issues" of a new terminal in Dublin and a new runway at London Stansted are resolved.
Airbus firmed up a June order from Alafco, the Kuwait-based international aircraft leasing company, for 12 A350-800s with options on six more ( ATWOnline, June 15). It is the first leasing company to select the type. Deliveries are due to begin in the third quarter of 2012. Alafco Chairman and CEO Ahmed Alzabin sang the aircraft's praises at the Dubai Air Show, saying, "We believe in investing for the future, and the Airbus A350 is a great way to do that."
Low-Cost Aircraft Leasing finally has announced its order for six 787s. The order was placed in May and listed on Boeing's website, but no customer was identified. The deal is valued at approximately $780 million and deliveries will begin in September 2009, according to the manufacturer. The first leasing company to commit to the 787, LCAL is planning to order another nine and will base its portfolio around the type. They will be powered by Rolls-Royce Trent 1000s, although the company also is discussing the GEnx with General Electric.
Boeing's big weekend in Dubai was boosted by reports that the Chinese government will buy 70 737s as part of an effort to mitigate its expected $200 billion trade surplus with the US. The $4 billion deal reportedly is the largest in Chinese aviation history. No formal announcement was made, but US National Security Council Senior Director-Asian Affairs Mike Green confirmed the order to reporters traveling in China with President George Bush, saying, "It's a very important thing and I think it's a testament to how our approach to China is yielding real results."
TAP Portugal will acquire 10 A350s and seven A330-200s to modernize and reinforce its long-haul fleet, Airbus announced at the Dubai Air Show, noting the decision brings the number of sales for the A350 to 143 from 10 customers. TAP, an all-Airbus operator, will add the new A330-200s starting from 2007 in response to increased demand for its destinations in South America, Africa and North America. A350 deliveries will begin in 2013. Both types will be fitted with a two-class layout and the A330-200s will accommodate 268 passengers. "This order. .
Watermark Ltd. announced a deal with AeroBox Composite Structures to become the exclusive sales agent for its products in the Middle East and parts of Asia. Watermark negotiated a five-year supply agreement for AeroBox composite containers worth more than $6 million.
Embraer is forecasting a continued decline in demand for jets in the 30/60-seat range with demand for 60/120-seaters continuing to grow. "There is an increased market demand for 61-to-120-seat aircraft as a result of Regional airlines' natural growth, replacement of aging aircraft, right-sizing requirements from network airlines and low-cost carriers' expansion to mid-sized markets," the airframer's market outlook, released Friday, stated. Embraer estimates that 3,350 aircraft will be delivered between 2006 and 2015 and another 4,600 between 2016 and 2025.
Macair Cargo was named the exclusive cargo general sales agent for Ghana International Airlines' daily Accra-London Gatwick service. GIA flies 757s on the route but intends to increase freight capacity with the introduction of a 767.
Continental Airlines and its flight attendants, represented by the International Assn. of Machinists, edged closer to a possible strike early next year after the two sides adjourned mediated talks in Washington last week without a new contract. In a statement, the airline said that "the issues have been narrowed to a few remaining items," and another bargaining session has been scheduled for Dec. 7-8 in the offices of the National Mediation Board.
American Airlines parent AMR Corp., taking advantage of the strong run-up in its stock price since mid-September, announced Friday the pricing of a public offering of 13 million newly issued shares of common stock at $17.25 per share. The offering, set to take place Nov. 23, will raise gross proceeds of $224 million if all shares are taken up, ATWOnline calculated. It includes an overallotment option of 1.95 million shares. UBS Investment Bank is acting as the sole underwriter for the offering.
Southwest Airlines board of directors declared a regular quarterly dividend of $.0045 per share to shareholders of record at the close of business Dec. 8, payable Jan. 5. It is the carrier's 117th consecutive quarterly dividend.
Indian Civil Aviation Minister Praful Patel said the government will invite private investment in state-owned Air-India and Indian Airlines but does not intend to privatize more than a 20% ownership. India's state-owned carriers have been starved for investment for many years, subjected to bureaucratic meddling, and face increasing competition from a wave of new entrants. "The two airlines need more financial muscle and more equity.
Kingfisher Airlines appears set to place a $2 billion Airbus order at this week's Dubai Air Show. The six-month-old carrier is likely to order 30 A320s and 20 ATR turboprops, according to media reports and at least two company executives, who confirmed the order to reporters. The startup placed a $3 billion order consisting of five A380s, five A350-800s and five A330-200s at the Paris Air Show last summer ( ATWOnline, June 16).
Southwest Airlines named Mike Van de Ven as its new executive VP-aircraft operations to replace Jim Wimberly, who will retire at year end. Van de Ven is a 12-year veteran of the airline and a member of its Executive Planning Committee.
Lufthansa Flight Training will provide a comprehensive training package for Martinair with the introduction of the 747-400 Freighter to the latter's fleet. Through 2007, 42 Martinair pilots will earn their type ratings from LFT for the 747-400F. Value of the deal is more than €2 million ($2.3 million). Separately, LFT announced that from Dec. 1, Florian Hamm will become chairman of its management board succeeding Dieter Harms, who is retiring after more than four decades at Lufthansa Group.
Delta Shuttle is introducing nine 142-seat MD-88s on its East Coast Shuttle between New York LaGuardia, Boston Logan and Reagan Washington National, replacing 120-seat 737s. The aircraft, which currently are flying in a two-class configuration, will be refitted to carry 134 in a roomier single-class arrangement. At the same time, Delta Connection carrier Comair announced it now is offering bi-hourly service between New York JFK and Logan and will begin "frequent" service between Boston and Baltimore-Washington International Dec. 1.
