China's airline industry will absorb 2,600 new airplanes worth $213 billion over the next 20 years, according to Boeing's "Current Market Outlook," making the PRC the largest market for aircraft outside the US. China's fleet will nearly quadruple to more than 3,200 aircraft by the end of the forecast period, according to Boeing. Single-aisle aircraft will account for 1,678 deliveries while "intermediate twin aisles" such as the 787 and 777 will comprise 568 airplanes. Boeing sees a market for just 73 units of 747 size and larger. Regional jets will total 293 units.
Focus Aviation, on behalf of Continental Airlines, arranged the sale of a third MD-82 to Khors Aircompany of Ukraine. Like the first two aircraft, this one will be put through a maintenance check by MNG in Turkey prior to delivery.
Boeing named Ahmed Jazzar to the new position of president of Boeing-Saudi Arabia. Jazzar joins Boeing after having spent 30 years with Saudi Arabian Airlines, where he retired as VP of its Technical Services Division.
US Airways Group, which is set to exit from Chapter 11 and merge with America West Airlines Holdings as early as next Tuesday ( ATWOnline, Sept. 19), cautioned yesterday in a filing with the US Securities and Exchange Commission that it expects "significant" operating losses "to continue through 2006." On a pro forma basis, the carriers had a combined operating loss of $101 million and a net loss of $272 million on revenue of $5.14 billion for the first half of 2005.
MAXjet Airways, a proposed transatlantic premium airline, intends to commence service Nov. 1 operating six flights per week between New York JFK and London Stansted using a 767-200ER configured for just 102 passengers with 60-in. pitch. The Washington Dulles-based carrier, which began life as Skylink Airways in 2003, said it will offer "a high-quality, low-fare business class product" with everyday fares starting at $779 each way.
SN Brussels Airlines is preparing for a major management shakeup following the resignation, with immediate effect, of Management Committee Chairman Rob Kuijpers.
Sweden plans to impose a tax on airline tickets of SEK50-SEK100 ($6.50-$13) from May next year as part of efforts to help the environment, the government said Tuesday. According Reuters, airlines have protested the tax but the government said it is a necessary step as part of tax increases worth SEK3.6 billion to encourage more environmentally friendly energy use. "It is appropriate to introduce a system of taxing air traffic without unnecessary delay," it added.
A new form of airline operations is taking shape in Russia with five carriers putting their operating plans under the control of a single management company, AiRUnion, that may end up in a merger--but may not as well. Initially a December 2004 joining of KrasAir, Domodedovo Air Enterprise, Omskavia and regional carrier Sibaviatrans, the grouping later induced Samara Airlines to enlist. The name AiRUnion was announced in August at the Moscow Aerospace Show MAKS-2005, Deputy Commercial Director Alexey Marchukov told ATWOnline.
Turkish Airlines said it decided to buy five A340s it currently is leasing for a total $175 million. The carrier said in a statement that it will finance the purchases from its own resources. The lease periods are scheduled to expire between April 2006 and April 2011.
Garuda Indonesia and Boeing are in talks about an order for 10 787-8s and 18 737-800s potentially worth $2 billion. The order, if finalized, will replace a 1996 order for 777-200ERs. The 787-8s will be delivered between 2011 and 2013. The 737-800s will start the replacement of the airline's 737 Classic fleet. Garuda operates three 747-400s, an A330-300, 26 737-400s, 17 737-300s and five 737-500s.
In a move aimed at "strengthening its competitiveness" in European point-to-point markets that do not involve its hubs at Frankfurt, Munich and Zurich (Swiss International), Lufthansa is creating a new organizational unit with responsibility for "strategic and infrastructure development as well as ground processes, procurement of airport services and business processes" at the 11 German stations.
Austrian Airlines Group raised its fuel surcharge for long-haul flights from €37 ($45) to €52 per leg and its surcharge for short-haul flights from €9 to €12 per leg. The new charges take effect from Sept. 26.
Aer Lingus, KfW IPEX-Bank and Calyon Corporate and Investment Bank closed structured debt financings for two A320s, jointly arranged with Babcock & Brown.
Royal Jordanian said its earnings for the first half of 2005 totaled JOD5.7 million ($8.2 million). Income for the year-ago period was not provided but the airline said current-period results represented a big increase compared to 2004. Revenue for the January-June period rose 15% to JOD187 million. Royal Jordanian carried 800,000 passengers, a 4% increase. For the full year, it expects earnings to match 2004 results of around JOD17 million. Fuel costs are expected to total $128 million this year, up from $96.5 million in 2004.
Bryan T. LaBrecque was named president and COO of Atlantic Southeast Airlines, a wholly owned subsidiary of SkyWest Inc. LaBrecque most recently served as senior VP-operations for ASA, which was purchased by SkyWest from Delta Air Lines and continues to operate as a Delta Connection carrier. US Transportation Security Administration named Robert Jamison deputy administrator. He has been deputy administrator of the Federal Transit Administration for the past three years.
Olympic Airlines will appeal to the European Court of Justice to overturn the European Commission's recent ruling that the carrier must repay to the Greek government up to €700 million ($859 million) in illegal state aid, Transport Minister Mihalis Liapis confirmed. Liapis also said negotiations to sell Olympic are in a "delicate but ongoing phase."
SriLankan Airlines Group said it had an after-tax profit of 1.37 billion rupees ($13.57 million) for the fiscal year to last March 31, down 75.6% compared to income of LKR5.64 billion in the prior fiscal year but a strong showing in light of last December's tsunami and soaring fuel prices.
Forecast International added its voice to the chorus of those who see demand for regional jets migrating to larger versions. "Demand for 50-seat jets is cooling," according to its recent study, "The World Market for Regional Transport Aircraft." The firm predicted that relaxation of scope clauses, competition and continuing financial pressures will increase demand for RJs with more than 50 seats.
American Airlines filed a motion with the US Dept. of Transportation asking the department to suspend consideration of the joint application for antitrust immunity by Northwest Airlines and Delta Air Lines and four SkyTeam partners--Alitalia, KLM, Air France and Czech Airlines--in light of the bankruptcy filings by both Delta and Northwest last week. AA believes DOT should postpone deliberation "for at least 12 months," arguing, "The simultaneous bankruptcies of two of the largest US carriers are unparalleled in US aviation history.
India's aggressive airport infrastructure program suffered a setback with Singapore Changi pulling out of a joint venture for Delhi Airport reconstruction because of what insiders term a severe performance penalty of up to $80 million. Changi was part of the Baharti-DLF Universal consortium for the project, and Baharti announced last week that it will not be able to proceed without Changi. It also stated that it had been confident of "building a world class airport and meeting all the terms of the tender."
Jet Airways is betting heavily on international growth and much of its anticipated $3 billion in new investment will go toward the acquisition of a new long-haul fleet, CEO Wolfgang Prock-Schauer told ATWOnline in Mumbai last week.
US Airways' reorganization plan received bankruptcy court approval Friday, clearing the way for the carrier to emerge from Chapter 11 and merge with America West as early as Sept. 27, US Airways said. The airline filed for its second reorganization on Sept. 12, 2004, having emerged from its first go-around on March 31, 2003.
Icelandair owner FL Group said last week that it is in talks with Sterling owner Fons Eignarhaldsfelag on an investment in or purchase of Sterling and Maersk Air. Fons received regulatory clearance to move forward with the purchase of the air assets of Maersk from A.P. Moeller last week ( ATWOnline, Sept. 15). FL also owns 13.01% of easyJet.
Japan Airlines announced a number of new codeshare agreements. It will expand its agreement with Cathay Pacific between Japan and Hong Kong to include a daily roundtrip between HK and Fukuoka beginning Oct. 3 that will be operated by Cathay. The flight is routed via Taipei but JAL passengers can travel only between Fukuoka and Hong Kong. Also, JAL and Korean Air will expand their codeshare to include KAL's twice-daily flights between Fukuoka and Seoul. The deal becomes effective Oct. 3, subject to government approval.
Delta Air Lines and Northwest Airlines, both of which filed for Chapter 11 protection last Wednesday, have begun shrinking their operations. Northwest told its pilots union it intends to cut flying hours by 13% over the next eight months, which will result in furloughs for 400 of the 5,200 pilots currently flying, according to the Air Line Pilots Assn.
