Lufthansa's roller-coaster relationship with its pilots hit another snag Friday when the Vereinigung Cockpit union, dissatisfied with the lack of a settlement in long-running talks regarding pay and working conditions covering 4,500 pilots, opened a strike ballot. VC staged a strike in summer 2008 and has a longstanding demand for a 6.4% pay raise for crew flying mainline, Lufthansa Cargo and Germanwings aircraft ( ATWOnline, July 24, 2009). The ballot will close Feb.
Airbus announced the promotion of Executive VP-Customer Services Charles Champion to head of engineering, effective April 1. He will succeed the retiring Patrick Gavin. Turkish Airlines promoted Head of Marketing and Sales Faruk Cizmecioglu to VP-sales & marketing.
AeroLogic, the joint cargo venture between Lufthansa and DHL Express, added two 777-200Fs in December, doubling its fleet to four of the type. It will launch weekend service from Frankfurt to both Atlanta and Chicago O'Hare during the current winter schedule, as well as daily Leipzig-Hong Kong service (nonstop four-times-weekly). It plans to take delivery of additional 777Fs in June, July, September and December. "Demand for Europe to Asia and Europe to US remains stable, despite the weakened world economy, and is expected to increase in the mid-term," AeroLogic said.
US Air Transport Assn. reported that its third-quarter airline cost index fell 36% year-over-year to 185.3, a decline that compares to the 1.6% fall in the US Consumer Price Index. The average price paid for fuel slid to $1.94 per gal. from $3.51 in the third quarter of 2008, although the average cost of a fulltime-equivalent worker climbed 7.6%. Fuel and labor accounted for nearly 50% of airline operating expenses, ATA said.
US Dept. of Transportation fined United Airlines $30,000 for failing to include the 7.5% federal excise tax in fares published on its website during a 60-hr. period. UA was fined $75,000 last August for failing to provide proper notice of taxes and fees at the first point of publication and for publishing one-way fares without making it clear that those fares were valid only on a roundtrip ticket. DOT suspended half of the August fine and stipulated that it would have to be paid only if UA committed another violation in the ensuing year.
Jamaican government said last week that Air Jamaica's acquisition by Caribbean Airlines was "expected to be consummated" over the weekend. The deal was expected to include an equity infusion but will require the government to pay JMD27 billion ($298.8 million) toward JM's 2010 capital expense budget, debts and costs required to cover "the redundancy of hundreds of employees." The government appointed a new five-member board chaired by insurance executive Denis Lalor to oversee JM's divestment and transition to Caribbean along with President and CEO Bruce Nobles.
Pinnacle Airlines announced the closure of a $10 million credit facility with Independent Bank of Memphis. The funds will provide Pinnacle with working capital until it receives a federal income tax refund estimated to be worth $38 million. The company said it also modified a $25 million spare parts loan "to reduce certain liquidity requirements."
Lufthansa Group airlines flew 13.42 billion RPKs in December, up 19.1% from the year-ago month, against an 18% lift in capacity to 17.53 billion ASKs. Load factor rose 0.8 point to 76.6%. Lufthansa Passenger Airlines flew 9.39 billion RPKs, up 4.2%, while ASKs increased 2.7% to 12.22 billion and load factor climbed 1.1 points to 76.8%. Swiss International Air Lines flew 2.31 billion RPKs in December, a 2.4% increase year-over-year. Capacity fell 3.5% to 2.85 billion ASKs, lifting load factor 4.7 points to 81%.
The US Commodities Futures Trading Commission last week proposed to set position limits for futures and option contracts in the major energy markets in a move hailed by the Air Transport Assn. According to CFTC, the Notice of Proposed Rulemaking is intended "to prevent excessive concentration in these markets, consistent with CFTC's statutory framework to prevent or diminish excessive speculation that may be a burden on interstate commerce."
Aer Lingus pilots represented by the Irish Airline Pilots Assn. accepted annual pay cuts of €30 million ($43.5 million) that were recommended by an Irish Labor Relations Commission arbitrator. The reductions are part of EI's continuing effort to implement a €97 million savings program, which the airline has said is being held up by pilots' reluctance to agree to cuts ( ATWOnline, Dec. 3, 2009).
While IATA welcomed the results of the Copenhagen summit, key airline leaders separately expressed concerns that the lack of consensus from political leaders at the conference means that the airline industry is entering a period of confusion, inefficiency and risk mitigation.
US Air Transport Assn. American Airlines, Continental Airlines and United Airlines initiated a legal challenge in the UK High Court of Justice against aviation's inclusion in the EU's Emissions Trading Scheme, arguing that it violated the Chicago Convention, the Kyoto Protocol, the US-EU open skies agreement and is "contrary to the customary international law principle that each state has complete and exclusive sovereignty over the airspace above its territory."
Airports Council International DG Angela Gittens called for renewed engagement across the aviation sector for managing environmental commitment. "During the COP/15 meeting, we have heard scientific, economic and political views--some in agreement and some holding divergent opinions--on the 'why, what, and how' of tackling climate change. All, however, seem to agree on one point: Now is the time to act. Finding the best long-term solutions will remain an evolving process that picks up steam over the next several months and even years," she said.
IATA welcomed the Copenhagen Accord reached at the UN COP/15 climate summit in December as "an important step in the right direction" and said the fact that aviation emissions were not addressed specifically was "a reflection of the proactive measures the industry has taken to set challenging targets for itself, together with an aggressive strategy to achieve them." The aviation industry is the only industry that presented a sectorwide, united agenda with clear targets and proposals to reduce carbon emissions that included carbon-neutral growth from 2020.
BioJet Corp. and Great Plains Oil & Exploration announced a teaming agreement with the goal of producing renewable jet fuels based on camelina. The landmark agreement will see the development of integrated camelina cultivation and associated refinery projects in the US, Europe, South America and Asia. The two companies told media that they expect within five years to be producing 200 million gal. per year of renewable jet fuel, 65 million gal. per year of co-products and 2.3 million tons per year of camelina meal for use as a high-quality animal feed.
US Aerospace Industries Assn. named former FAA Chief of Staff David Mandell VP-membership and business development. United Airlines parent UAL Corp. named Global Hyatt Corp. CMO and CIO Thomas O'Toole senior VP and CMO. Cirrus Airlines promoted Director-Sales and Marketing Ingrid Jung to MD.
Arlington-Va.-based ARC reported this week that December sales through participating US travel agencies totaled $4.41 billion, representing an 8.6% increase year-over-year and the "strongest final month of the year since 2005." Total fares rose 9.2% to $3.74 billion and the number of transactions increased 6.9% to 8.9 million. Domestic fares climbed 5.1% to $1.96 billion on a 6.7% lift in transactions, while international fares surged 14.2% to $1.78 billion on a 7.5% lift in transaction. ARC had 188 participating airlines in December, up three from the prior month.
TAM announced plans to refurbish the passenger cabins across its entire fleet, both new aircraft and retrofit, including the redesign of all seats, galleys, stowage areas, lavatories and "cabin architecture, where possible." It contracted Priestmangoode of London for the three-year project, which also will feature a uniform redesign. Separately, TAM signed a long-term, full-content distribution agreement with Sabre Travel Network.
Singapore Airlines confirmed the March 28 launch of a daily A380 service to Zurich, which will replace its 12-times-weekly 777-300ER service. ZRH will be SIA's third European A380 gateway after Paris Charles de Gaulle and London Heathrow. ZRH will conduct final infrastructure tests required to attain A380 certification on Jan. 20-21.
The Enterprise Turnaround Initiative Corp. of Japan yesterday officially confirmed that it will guide Japan Airlines' restructuring plan, pledging in a statement to "ensure all of its business operations on and off the ground [will] be performed smoothly without any interruption as usual with sufficient amount of capital" during the "revitalization" process.
Hawaiian Airlines pilots represented by the Air Line Pilots Assn. ratified the tentative contract with the airline reached last week ( ATWOnline, Nov. 12, 2009). According to ALPA, 90% of pilots eligible to vote cast ballots, with 83% voting in favor of the agreement.
American Airlines will accept only credit and debit cards for onboard purchases on all mainline flights beginning Feb. 1. It implemented a cashless cabin in the US and Canada last June. American Eagle and AmericanConnection will continue to accept only cash.
Harbin Hafei Airbus Composite Manufacturing Centre, a joint venture between Airbus and Chinese investors, will supply A350 elevators to Aernnova Aerospace of Spain in a deal announced yesterday. Production in China is expected to start in 2012 after initial industrialization in Europe, Airbus said. The Harbin facility also will produce the A350's rudder and S19 maintenance door. AAR signed a five-year deal with Allegiant Air to provide maintenance and modification work on the LCC's 46 MD-80s.
European Low Fares Airline Assn. called on new European Commissioner-designate for Transport Siim Kallas of Estonia to revive the "pro-competition course" on which the EU embarked when it liberalized market access for air transport but which, according to ELFAA, has stagnated in recent years with the Commission "engaging in re-regulation of aviation--often in response to protectionist calls from legacy incumbent airlines." ELFAA Secretary General John Hanlon said the organization "urges the Commissioner to stamp out, once and for all, the practice of state aid for ailing national carrie
OAG reported that January global seat capacity has increased 3% year-over-year to 294.6 million seats. It is the fifth consecutive month of growth. Frequencies will rise 2% to 2.4 million flights, boosted by a 10% lift among LCCs. North American airlines cut intra-regional flights 2.7% and seats 2.8% but grew to/from the region by 3% and 1% respectively.
