EU and US yesterday jointly declared that "urgent measures" related to aviation security should be "considered" at a high-level meeting planned for Luxemburg in April, though the two sides continue to differ on specifics.
Delta Air Lines private jet service subsidiary Delta AirElite acquired Segrave Aviation, a North Carolina company specializing in wholesale charter aviation services, private aircraft management, aircraft maintenance and fixed-base operations. DL said the transaction was "all cash" but declined to state a figure. It said the acquisition will "double the size of the Delta AirElite fleet."
United Eagle Airlines will re-launch as a state-owned carrier Friday and will be renamed Chengdu Air. In October, Commercial Aircraft Corp. of China, manufacturer of the ARJ21 and C919, purchased a 48% stake in loss-making UAE from Sichuan Airlines for CNY1 billion ($146.3 million) ( ATWOnline, Oct. 19, 2009). Sichuan's stake was reduced to 41% and Sichuan Communication Investment Group holds the remaining 11%. Sichuan Airlines is controlled by the provincial government and China Southern Airlines.
The UK revealed a further set of measures to enhance aviation security, including introduction of a "no-fly" list, suspension of Yemenia Yemen Airways' direct flights "pending enhanced security" and its intention to "promote enhancements to the international aviation security regime, including stronger security arrangements in airports and greater sharing of information" with ICAO, the EU and G8 nations.
Gulfstream International Airlines parent Gulfstream International Group will convert $1.5 million of subordinated debt to convertible preferred stock under an agreement with Gulfstream Funding II, a lender that issued the loan in October.
US Air Transport Assn. said members' December passenger revenue fell 4% year-over-year, the 14th consecutive monthly decline, and 2009 full-year revenue plunged a record 18%. December passenger traffic was down 3% and the average price to fly 1 mi. dropped more than 2%. Full-year passenger volume was down 6% from 2008, with a 13% fall in the average price to fly 1 mi.. The largest previous full-year revenue decline was the 14% slip from 2000 to 2001.
LOT Polish Airlines has three bidders interested in participating in the carrier's privatization, according to reports from Warsaw. A Polish treasury spokesperson said a major airline and a financial investor are among the suitors. Air France KLM denied reports that it is participating, and Aeroflot denied interest when asked by Bloomberg News. The treasury spokesperson said the sale is unlikely to happen this year. The treasury holds 68% of the carrier.
Fokker Services announced a €130 million ($186.5 million), 10-year FLYFokker Take Care service agreement with Austrian Airlines covering nine F70s and 15 F100s.
OnAir will go live with its Internet and VPN connectivity service next month but sees a profitable future for its phone and PDA inflight connectivity service, with CEO Benoit Debains telling ATWOnline yesterday, "We are, and we remain, a phone company." The Airbus/SITA joint venture provided no further details concerning Internet OnAir's launch but Debains insisted that the company's Mobile OnAir service and Internet are complementary. "Contrary to what people believe," he said, "it's not phone versus Internet."
British Airways cabin crew represented by Unite pledged not to strike over the April 2-5 Easter holiday. The union plans to hold a new strike ballot Jan. 25-Feb. 22 and has said a work stoppage could begin soon thereafter ( ATWOnline, Jan. 12). "We are making this announcement now so families can plan their travel arrangements in confidence," Unite Assistant General Secretary Len McCluskey said.
Air France announced the introduction of a new seat on A320 family aircraft operating domestic flights. The Recaro seat will be phased in from Jan. 30 and will be 40% lighter (weighing 9.1 kg.) than its predecessor and feature 2-3 in. in additional legroom and a 15-deg. recline, AF said. Separately, AF denied reports that it is planning to introduce the compulsory purchase of an additional economy class seat for overweight passengers, saying it "has no intention of making corpulent passengers pay for a second seat." From Feb.
CAE announced the sale of A320 and A330 CAE 7000 series full flight simulators to China Eastern Airlines subsidiary Shanghai Eastern Flight Training. Simulators are valued at C$30 million ($29.2 million) at list prices and will be delivered in 2011. SEFT currently operates six CAE FFSs: Four A320s, one A330/A340 and one 737. CAE said it also has received the cancellation of an unidentified simulator order placed last year.
Air China parent CNAC is expected to receive a CNY1.5 billion ($219.4 million) cash injection from the Chinese government to pay back the loans it used to finalize last year's acquisition of its Air China Cargo subsidiary, according to CA Board Secretary Huang Bin.
Bmi will cease offering business class on flights from London Heathrow to destinations in the UK and Ireland from Jan. 27. In addition, passengers purchasing higher Flexible Economy fares will be able to change tickets without a fee and will have access to lounges, reserved seats at the front of the aircraft and free food and beverages onboard. It also announced the launch of twice-daily London Heathrow-Vienna service on March 28 using an A320. Star Alliance partner and fellow Lufthansa subsidiary Austrian Airlines will codeshare.
News from Travel Technology Update: When you think about groundbreaking technology in the travel industry, your thoughts probably don't turn to a 125-year-old company. But NCR Corp., founded to market the first mechanical cash register, has over the last century been a leader in areas as diverse as automated credit systems (1914) and digital computers for aviation (1952).
Amadeus will provide Emirates, Finnair and TACA with its Marketing Information Data Tapes, which contain information about airline bookings made by travel agencies connected to the Amadeus GDS.
SIA Engineering Co. broke ground for a non-OEM provider of MRO services by purchasing a stake in Pratt & Whitney's PW1000G engine "risk-revenue sharing program" in exchange for a key role in Pratt's MRO network. SIAEC, a member of Singapore Airlines Group, will hold a 3% stake in the engine RRSP for the Bombardier CSeries and a 1% stake in the Mitsubishi Regional Jet engine RRSP.
Boeing, Etihad Airways, Honeywell's UOP subsidiary and the Masdar Institute of Science and Technology (an Abu Dhabi-based research and graduate program partnered with the Massachusetts Institute of Technology) announced an agreement to establish a major initiative dedicated to developing "sustainable energy solutions." The Sustainable Bioenergy Research Project will use integrated saltwater agricultural systems to support the development and commercialization of biofuel sources for aviation and co-products.
Continental Airlines will record $77 million in fourth-quarter special charges and $145 million for the full year, as well as a noncash income tax benefit, it said. The fourth-quarter items comprise $36 million in aircraft-related charges, $29 million in pension plan settlement charges and $12 million in route impairment charges. Full-year totals are $89 million, $29 million and $22 million respectively in addition to $5 million in severance payments.
American Airlines will increase its charge for the first checked bag on domestic flights to $25 and the second bag to $35 effective Feb. 1, matching the raises announced by Continental Airlines, Delta Air Lines, United Airlines and US Airways ( ATWOnline, Jan. 14). Premium passengers and loyalty program members are exempt.
MAS Aerospace and Engineering signed a three-year deal with SpiceJet covering C and D checks on the Indian carrier's 19 current and 12 incoming 737NGs. MAS will service aircraft at its Hyderabad facility, a joint venture with GMR Aerospace Engineering, when it enters operation in the 2011 first quarter.
Bombardier Commercial Aircraft President Gary Scott yesterday said the manufacturer is in "advanced discussions with some customers" for CSeries orders and that he would "be surprised if we don't announce another order in the first half of next [fiscal] year," beginning Feb. 1. Scott was speaking to reporters in Dublin. Lufthansa and Lease Corp. International are the only customers so far and have ordered a combined 50 firm aircraft and 50 options.
Aer Lingus announced the departure of Deputy CEO and COO Niall Walsh, effective immediately. EI CEO Christoph Mueller will assume Walsh's duties temporarily with assistance from Chief Engineer Fergus Wilson, the airline said. A search for a new COO is underway.
Iberia's merger with British Airways could be concluded next month, according to Caja Madrid Chairman Miguel Blesa. The head of IB's largest shareholder (23%) told reporters, "We're on the right track. I think February will be decisive for the deal. There's not much left that needs agreeing to, if anything at all. I don't know if it will be [signed] in February but it won't go past March," according to Reuters. The merger MOU was signed in November ( ATWOnline, Nov. 13).
Irish air traffic controllers at Dublin, Cork and Shannon represented by Impact plan to strike for 4 hr. this afternoon. The Irish Aviation Authority said controllers are demanding a 6% pay increase and that it already has suspended 12 who "stopped doing work on a number of ongoing projects." IAA said the 6% increase would cost the authority €6 million ($8.6 million) per year and would be passed on to airlines.
