Airline leaders presented the industry's proposals for reducing aviation's contribution to greenhouse gas emissions at a United Nations forum on climate change yesterday. The airline delegation, led by British Airways CEO Willie Walsh and SAS Group President and CEO Mats Jansson and including representatives from Air France KLM, Qatar Airways and IATA, was attending the UN Secretary General's Summit on Climate Change in New York.
Lufthansa Technik won a contract to provide line maintenance at Brussels Charleroi for eight Ryanair 737-800s. Deal includes an option for increased support if the LCC expands at the airport.
Japan Airlines President Haruka Nishimatsu is scheduled to meet with new Japanese Transport Minister Seiji Maehara Thursday for the first time to discuss the airline's restructuring plan, Nikkei reported. There is speculation in Japan that JAL's restructuring may be revised in the wake of the Democratic Party of Japan's recent election triumph.
US National Air Traffic Controllers Assn. elected Executive VP Paul Rinaldi as president for a three-year term beginning Oct. 17. Rinaldi works at Washington Dulles. Jazz Air promoted Senior VP-Employee Relations Colin Copp to CAO and Senior VP-Operations Support Jolene Mahody to COO.
Naverus said China Eastern Airlines, supported by CAAC, successfully completed an RNP-validation flight at Yushu Airport in the Himalayas using an A319 on Sept. 15.
Lufthansa Flight Training last week took delivery of an A380 cockpit simulator from Thales. Training sessions at its Frankfurt center will begin in January.
Chinese regulator CAAC is planning a series of measures designed to lift domestic freight carriers out of the red, including increasing shipping rates, providing subsidies and encouraging mergers and consolidation. Foreign airlines currently hold an 85% share of the Chinese international cargo market. There are nine domestic freight carriers operating 70 aircraft as of Dec. 31, 2008.
Airports Council International-North America came out in support of limits to runway and tarmac delays, with President Greg Principato saying the organization "supports airlines working with Congress and the Dept. of Transportation to determine specific deadlines," and that "airlines should be held accountable for adhering to the predetermined deadlines." ACI-NA has filed motions with DOT supporting enhanced protections for passengers, such as increased compensation for delayed or cancelled flights and lost baggage.
Lufthansa plans to cut 15% of the 1,800 employees working in central operations, such as those in the communications and financial departments, a spokesperson confirmed to ATWOnline. The company will reduce the number of positions by 5% annually in 2010-12. "During the same period, we want to reduce our nonpersonnel costs by 7% annually," the spokesperson said.
Airlines in the US collected $669.6 million in baggage fees in the second quarter, nearly four times more than the amount collected in the year-ago period and up 18.2% from the first quarter, helping boost operating margins nearly across the board, the US Dept. of Transportation reported yesterday. American Airlines led the way last quarter with $118.4 million in baggage revenue. Delta Air Lines (not including Northwest Airlines) was just $86,000 behind and US Airways took in $104.1 million. AirTran Airways, the leading LCC, came in seventh with $40.5 million.
Finnair announced the issue of a €120 million ($176.7 million) domestic hybrid bond with a coupon rate of 9% per year. The bond was oversubscribed, the company said, and will be used to "finance the investment program and to strengthen the group's capital structure." Nordea Markets was appointed sole bookrunner. A hybrid bond is subordinate to the company's other debt obligations and is treated as equity on IFRS statements, Finnair said.
International Bureau of Aviation said at last week's SpeedNews Annual Aviation Industry Suppliers Conference in Toulouse that the value of new single-aisle aircraft has dropped 8% in the past year. New 737-800s were valued at $42.2 million in the 2009 second quarter, down from $45.9 million in the 2008 quarter, while the value of a new A320 declined to $40.2 million from $43.5 million. Average lease payments also fell, to $340,000 per month from $415,000 per month for the -800 and to $320,000 from $395,000 on the A320, IBA said.
US Air Transport Assn. said yesterday that US airlines' August passenger revenue fell 21% year-over-year, marking the 10th consecutive month of decline, while IATA said there was evidence of "an upturn" in premium passengers in July but warned that the rebound likely will be slow and excess capacity will keep yields low.
Nigerian Eagle Airlines is the new name of the former Virgin Nigeria, CEO Dapo Olumide announced in Lagos last week. He said the new name and logo, a multicolored eagle in flight, "represent the rich culture and heritage of Africans" and that the rebranded carrier will "fill the gaps in the aviation sector." It is 51% owned by local investors and 49% by Virgin Atlantic Airways. Plans for a private placement to raise operational capital "are underway," it said ( ATWOnline, Aug. 26).
US Airways said it will begin installing its new Envoy Suite business class product on its A330-200s in November. Suite includes a lie-flat bad, direct aisle access, 12.1-inch touchscreen from Panasonic Avionics Corp., power outlet, satellite telephone and USB port. The 20-suite cabin will feature a 1-2-1 "reverse herringbone" configuration. First aircraft will be completed in December, with the remaining 14 finished by summer 2011. The design for the A330-300 cabin is "under development," US said, with installation expected by summer 2012.
Continental Airlines said mainline domestic advanced booked seat factor for the next six weeks is running 1-2 points higher than the year-ago period, with transatlantic bookings 6-7 points higher. It now expects third-quarter consolidated and mainline load factors to be up approximately 3 points year-over-year to 84%-85% and 85%-86% respectively, it said in an investor update.
Ryanair yesterday began offering passengers smokeless cigarettes that "deliver a small amount of nicotine through inhalation" without being lit. Packs of 10 will be available to adult passengers for €6 ($8.82).
Jet Airways lost approximately $80 million in revenue during the six-day work action by its pilots that ended early last week, Executive Director Saroj Datta told CNBC ( ATWOnline, Sept. 15).
Amsterdam Airport Schiphol said it will not raise its airport charges on April 1, 2010, "in view of the current economic situation." It set its charges as of April 1, 2009, in late 2008 and said those were reduced by an average 10% from the prior year.
Airbus last week said it expects operators to take delivery of approximately 25,000 new passenger and freighter aircraft valued at $3.1 trillion over the next two decades, compared to Boeing's recent target of 29,000.
Amadeus IT Group is considering an IPO and has retained Rothschild & Sons to evaluate the possibility, sources close to the deal told Bloomberg News. No decision has been taken, but an IPO would allow current shareholders to sell their shares. Amadeus has been majority owned since 2005 by WAM Acquisition, whose shareholders are private equity firms BC Partners and Cinven. WAM owns nearly 53%, Air France holds 23% and Iberia and Lufthansa each have about 12%. All shareholders declined comment, Bloomberg said.
