LOT Polish Airlines' supervisory board dismissed Marek Grabarek, president of the carrier's management board, as well as board members Piotr Dubno and Wladyslaw Metelski. The sackings took place at a supervisory board meeting Monday. No reason was given for the action. LOT also announced that supervisory board President Piotr Czyzewski and member SBawomir Lachowski resigned. Supervisory board member Tomasz Kopoczynski will replace Grabarek on an interim basis pending a formal selection process that will commence following a Dec. 29 supervisory board meeting.
United Airlines and its United Services maintenance division signed a three-year, $180 million deal with Pratt & Whitney for MRO on more than 200 F117 engines powering US Air Force C-17s. Work will take place at United's facilities in San Francisco and Charleston.
Lufthansa wants to reduce pilot costs further to help boost profitability and meet increasing competition in the global airline market, Chief Executive Wolfgang Mayrhuber said. In an interview with Reuters, Mayrhuber questioned how long LH can continue to pay its pilots "significantly above the market rate" and said market conditions should apply to new pilots joining the company. "We have to convince the unions that lower pay is advantageous for them, as only profitable jobs are secure jobs," he said. "We have to negotiate with the unions. It is not easy.
AirAsia confirmed to ATWOnline that it has submitted a proposal to the Malaysian government to operate all but three of Malaysia Airlines' domestic routes. The plan is part of the government's review of a domestic airline system that has been a continual loss-maker for MAS. Earlier this month, AirAsia took delivery of the first of 100 A320s and announced an additional eight destinations in Indonesia from Kuala Lumpur.
Australian High Court let stand a lower court ruling ordering Air Nauru to return a 737-400 to a trustee for the Export-Import Bank of the US. Air Nauru stopped making payments on the aircraft in 2002.
PACE Aerospace Engineering and Information Technology said UK aerospace design consultancy Engaero has chosen Pacelab Cabin, a cabin configuration tool, to develop interior concepts for aircraft cabin refurbishment. Also, Bombardier signed PACE to help develop the computerized flight manual for the CRJ705.
Air New Zealand said it will proceed with plans to outsource heavy maintenance of widebody engines but has deferred until February a decision on the future of its widebody airframe MRO activity amid signs it may be able to reach accommodation with its engineering union to keep the work in-house. Sending the engine work offshore next year will result in elimination of around 110 jobs. Outsiders already perform engine MRO on ANZ's narrowbody jets and turboprops.
Rolls-Royce and American Eagle extended their agreement for on-site engineering services for the carrier's 206 AE3007-powered ERJs. The new Engineering Care program provides the airline with an RR-certified engineer and enhanced engineering service team assistance.
AirNet Systems announced it was unable to reach a merger agreement with the private investment firm with which it had signed a letter of intent on Oct. 26. The aviation services company, which operates 113 cargo and 14 passenger aircraft, said it will continue as an independent company and will consider offers from "a qualified potential acquirer."
United Airlines' pilots union joined the chorus of dissent against a management plan to set aside 18.75 million shares of stock representing 15% of equity in the reorganized carrier for its salaried and management employees. "The so-called Management Equity Incentive Plan reeks of immorality," Air Line Pilots Assn.
World Air Holdings, parent of World Airways and North American Airlines, signed a letter of intent to lease for three years a 767-300ER for delivery to North American in December 2006. It also signed a two-year extension on a leased 757-200ER, now set to expire in May 2008.
Volito Aviation of Sweden purchased two 737s from Tombo Aviation. The six-year-old aircraft will remain on lease to Copa Airlines until April and June 2009.
Cintra SA said its shareholders unanimously approved the sale of Mexicana and low-cost airline Click to Grupo Posadas, the country's largest hotel chain that agreed last month to purchase the carriers for $165 million, the assumption of $294 million in debt and $997 million in aircraft lease obligations ( ATWOnline, Dec. 1). Posadas also will take a 50% stake in other airline units including ground services and cargo, the Associated Press reported. Cintra declined to sell AeroMexico after bids from Posadas and pharmaceutical company Grupo Xtra were considered insufficient.
Singapore Changi Airport will open its dedicated low-cost carrier terminal on March 26, offering passenger charges that are nearly 40% below those at Terminals 1 and 2, the Civil Aviation Authority of Singapore said. The total per-passenger charge will be S$13 ($7.77) versus $21 for the full-service terminals. The fee covers two components comprising a S$7 passenger service charge and a S$6 passenger security charge.
Alitalia secured an eight-year, $445 million loan from GE Corporate Banking last week, bringing the beleaguered carrier one step closer to stability following the €1 billion ($1.2 billion) rights issue that concluded earlier this month ( ATWOnline, Nov. 14). The deal with GECB will be guaranteed by mortgages on 28 Alitalia aircraft, according to media reports. Separately, Alitalia was fined €30,000 ($35,600) by Italy's antitrust agency for displaying "misleading" advertising on the carrier's website.
Austrian Airlines Group announced Friday that it is in close talks with Italian airport operator SAVE about selling its catering unit Airest. AAG put Airest up for sale earlier this year. Negotiations will run until Jan. 31.
World airline passenger traffic (RPKs) grew about 7.5% in 2005 compared to 2004, with international RPKs up around 8.5%, ICAO said based on preliminary figures. Capacity, measured in ASKs, increased at a slightly slower pace, resulting in an average passenger load factor of almost 75%, up 2 points over last year. Load factor on international services also was 75% compared to 74% in 2004.
Aloha Airlines received permission last week to cancel its employee pension plans from a US District Court judge, who ruled against the US Pension Benefit Guaranty Corp. in finding that the airline would be unable to survive its exit from bankruptcy or attract investors while still owing $155 million to its defined-benefit pension plans. Aloha's departure from Chapter 11 nearly was finalized when it reached a labor deal with its pilots earlier in the week ( ATWOnline, Dec.
Southwest Airlines will expand its codeshare agreement with ATA Airlines to include the latter's thrice-daily service between Dallas/Ft. Worth and Chicago Midway. The codeshare flights will begin Jan. 11. Southwest operates 196 flights per day from MDW, its second-busiest market. Although American Airlines said last week it will launch service to Kansas City and St. Louis from Dallas Love Field ( ATWOnline, Dec. 14), Southwest CEO Gary Kelly said his carrier has "no interest in splitting our operation between Dallas Love Field and DFW Airport. .
FlyBE Chairman Jim French said the group expects to post an operating profit of about £10 million ($17.7 million), its first in five years, for the year ended March 2005 compared to an operating loss of £9.8 million in the previous year. Pre-tax profit should come in at £8 million, up from £2.9 million. The airline appointed Dresdner Kleinwort Wasserstein as financial adviser to lead a possible IPO late next year or in 2007, the Financial Times reported.
Aviaimport of Cuba agreed to a 10-year, $94 million loan with a syndicate of Russian banks for the purchase of two Il 96-300s to be delivered Christmas Day and Jan. 20.
UK Air Accidents Investigation Branch sharply rebuked British Airways' maintenance operation over a September 2003 incident involving one of BA's 757s. During the first flight after the aircraft returned to service from a 26-day maintenance check, the crew noticed that a hot oil smell that had been present in the cockpit on startup had returned shortly after takeoff from London Heathrow. The cockpit crew donned oxygen masks and diverted the aircraft to Gatwick.
