Horizon Air and the Assn. of Flight Attendants announced a tentative agreement on a proposed two-year labor accord covering 548 cabin staff. Union members will vote by Dec. 21.
Lufthansa is looking at "using some elements from the LCC business model," Passenger Airlines CEO Christoph Franz was quoted as saying this week in several German newspapers. "We have to create additional markets through lower fares." Last week Air France simplified its European product in an effort to lower costs and drive efficiencies, and Franz said LH is considering adding more seats to aircraft serving domestic and continental routes and reducing the amount of onboard service. It currently offers up to six different catering options, from a snack to full dinners.
Finnair was scheduled to resume "a little less than half" of its flight program today after pilots represented by the Finnish Airline Pilots' Assn. agreed to a settlement proposal submitted yesterday by a government mediator. AY was forced to cancel two full days of flying after pilots went on strike late Sunday/early Monday ( ATWOnline, Nov. 17). "In addition to structural changes, we achieved through this agreement significant short-term cost savings.
Jazeera Airways reported a KWD762,745 ($2.7 million) third-quarter profit, down 53.2% from the KWD1.6 million earned in the year-ago period, according to a filing with the Kuwait Stock Exchange cited by several press reports. Revenue rose 4% year-over-year to KWD15.9 million on a 65% lift in passenger numbers to 582,490.
LAN Airlines is "looking at all the possibilities around" for potential mergers or acquisitions, COO Ignacio Cueto told Bloomberg News. "We are window shopping," he said. "There is nothing concrete."
News from Travel Technology Update: OAG, which has played an integral role in the history of commercial aviation, is marking its 80th anniversary this year. For decades, the Official Airline Guide, its flagship product, was essential for travel agents, tour operators, interlining carriers anyone who needed to know which airline flew where and when. The OAG brand is venerable. That's a nice word for "old."
Indian government has "assured support" and promised a INR4 billion ($86.5 million) equity infusion to Air India by January, parent National Aviation Co. of India said yesterday. "Further installments would be tied up to the milestones of savings effected on account of cost-cutting exercise[s] adopted by the national carrier at various levels," NACIL said, adding that it plans to "aggressively rationalize its fleet size and network. . .in the coming months" ( ATWOnline, Nov. 13).
US Transportation Security Administration issued a Notice of Proposed Rule Making that would "establish security requirements for maintenance and repair work conducted on aircraft and aircraft components at domestic and foreign repair stations" and make the repair stations subject to US Dept. of Homeland Security inspections that could lead to decertification.
“Despite the global economic climate, this year has been a very good year for Alsalam,” Mohammed Fallatah, President and CEO of Riyadh's Alsalam Aircraft Company, told Arabian Aerospace at the Dubai Air Show.
IATA yesterday announced the signing of a multinational agreement under which the European Commission as well as the US and six other nations have agreed to consider a liberalization of the restrictions that govern bilateral air services agreements, including a promise "to consider the possibility of a multilateral agreement to waive ownership restrictions."
CSA Czech Airlines named Marek Tybl, head pilot of its ATR fleet, as VP-flight operations and CSOB executive Philippe Moreels as VP-marketing and sales.
TAM flew 2.39 billion domestic RPKs in October, up 22.3% from the year-ago month, against a 9.6% lift in capacity to 3.31 billion ASKs. Load factor rose 7.6 points to 72.3%. International traffic was up 15.7% to 1.64 billion RPKs while capacity increased 15.2% to 2.09 billion ASKs and load factor rose 0.3 point to 78.1%. Copa Airlines flew 570.2 million RPMs in October, up 16.6% year-over-year. Capacity increased 7.3% to 696.3 million ASMs, lifting load factor 6.5 points to 81.9%.
Finnair pilots represented by the Finnish Air Line Pilots' Assn. will strike for a second consecutive day today, forcing the airline to cancel its entire program of more than 200 scheduled flights. AY said leisure flights operated by management pilots will continue "with the help of leasing arrangements" and that "individual changes" to the schedule "are possible." The strike, which also affected Finnair's Sunday schedule, will cost the airline €2-€5 million per day, according to various press reports.
Boeing announced the completion of the side-of-body fixes on the second and third 787s. Installation on the first was finished last Wednesday ( ATWOnline, Nov. 13). The aircraft completed comprised the full-scale static test airframe and the second flight test aircraft. "Our focus now is on completing the static test later this month, which will validate the modification.
Cathay Pacific Airways will offer an economy seat with extra legroom on long-haul flights for $100 per sector beginning Dec. 1 and on flights to regional and Chinese destination for $25 from Jan. 1. Premium loyalty program members will continue to have access to the seats for free. CX said there will be 2-4 seats available on "most flights." Offer is available on Dragonair service as well.
United Airlines announced a partnership with ExpressJet Airlines under which the latter will operate 22 ERJ-145s under the United Express brand beginning May 1. ExpressJet will replace contract flying performed by other United Express partners whose contracts expired and were not renewed, including Mesa Air Group. United said ExpressJet offered "the most competitive bid" for the flying.
Airbus parent EADS suffered an €87 million ($130.2 million) third-quarter loss, reversed from a €679 million profit in the year-ago period, as unfavorable foreign exchange rates and slight decline in revenue dragged the aerospace giant back into the red following seven consecutive profitable quarters.
Senegal Airlines was launched officially at the Dubai Airshow Sunday, taking the place of defunct Air Senegal International, which suspended operations in April ( ATWOnline, June 3). The new airline will lease aircraft initially and is scheduled to begin flying "in early 2010," according to a statement. Founding capital is valued at $34 million, with private investors holding 64%, the government 16%, employees 5% and the remainder available to the public.
North American Airlines is planning to add an all-business-class, 100-seat 767-200 for charter operations. The carrier signed an LOI with MLW Air, which serves as the charter marketing agent for Pace Airlines. The cabin will feature 2-2-2 seating with lie-flat seats with 60-in. pitch.
Mexicana is pursuing plans to renew its long-haul fleet and is continuing talks with both Airbus and Boeing for six A350s or 787s, Grupo Mexicana CEO Manuel Bora told ATWOnline last week in Mexico City, although he does not expect the carrier to turn a profit this year.
Jazz Air parent Jazz Air Income Fund reported third-quarter net income of C$25.3 million ($24.1 million), down 20.2% from C$31.7 million in the year-ago period, on a 13.2% drop in revenue to C$379.7 million. The Canadian regional said expenses lowered 12% to C$344.9 million.
Air France last week announced a simplification to its European medium-haul product that from April 1 will feature just two classes of service, Premium business class and Voyageur economy. Stressing that its service "will not be that of a low-cost carrier," AF is cutting both fares and costs in the back of the aircraft. Economy passengers will pay to check a second bag and will have seat choice at check-in. For €10 ($14.95), they can reserve a booking and fare for "several days" before confirming, AF said.
ILFC reported a third-quarter profit of $245.8 million, up 9.4% year-over-year, on a 3.7% lift in revenue to $1.35 billion. Nine-month profit climbed 16.6% to $685.7 million. As of Sept. 30 the lessor owned 991 aircraft, with 11 more classified as finance and sales-type leases, while providing fleet management services on another 99. It has 125 new aircraft scheduled for delivery through 2019 including five in the 2009 fourth quarter.
BAA announced Friday the injection of £500 million ($828.4 million) into London Heathrow and Stansted. Money will comprise £200 million of new equity from shareholders and £300 million from BAA Airports Ltd. and FGP Topco Ltd., the holding company owned by the airport operator's three controlling shareholders. "Funding will be used to pay down debt, strengthen the group's medium-term financial ratios and facilitate its access to the capital markets," BAA said.
