United Airlines Chairman and CEO Glenn Tilton visited with the chairman of China Eastern Airlines this month to try to persuade the Shanghai-based carrier to join Star Alliance. CEA, which is unaligned, is acquiring current Star partner Shanghai Airlines ( ATWOnline, Aug. 31). "As the financial capital of China, Shanghai is an important destination for us," Tilton explained in an employee communication.
Southwest Airlines Pilots' Assn. board voted unanimously yesterday to endorse a new tentative labor contract with the airline and send it to membership for ratification. SWAPA members rejected a previous TA in June ( ATWOnline, Sept. 11).
United Airlines decided to return a leased 757 at the expiration of the current lease in October because it was unable to reach satisfactory renewal terms, it told employees in an internal communication. The aircraft is used on domestic routes and its departure will not affect UA's schedule or available spares.
Olympic Air, the new name of the privatized and restructured Olympic Airlines, officially will begin flying on Oct. 1 with 21 aircraft, increasing shortly to 32 (16 A319s/A320s, 10 Q400s, five Dash 8-100s and one ATR 42), according to press reports. Marfin Investment Group bought the carrier last spring ( ATWOnline, March 25), and executives said yesterday that Olympic has signed a codeshare agreement with Delta Air Lines with a view toward joining SkyTeam eventually, according to Reuters.
US FAA yesterday announced measures to improve its response to safety issues and whistleblower contributions and said it is "renewing efforts to ensure consistent interpretation of agency regulations and policies" in the wake of questions regarding its relationship with the airlines it is charged with regulating ( ATWOnline, March 3) and waves of flight cancellations related to carriers' lack of compliance with airworthiness directives ( ATWOnline
Air France is working to form a committee of 5-6 members that "will have a look into the internal practices and the decision-making processes having an impact on the security of our flights," a spokesperson told ATWOnline yesterday. The airline is assessing its internal safety practices in the wake of the May 31 A330-200 accident and subsequent complaints from its pilots. The Wall Street Journal reported yesterday that AF's SkyTeam partner Delta Air Lines may be represented on the committee.
StandardAero yesterday broke ground on a 27,000-sq.-ft. expansion to the Winnipeg facility where it currently performs CF34 engine MRO, growth that will enable it to begin working on CFM56-7Bs next year. The company this year inked a 12-year agreement with WestJet valued at more than $850 million to perform maintenance on CFM56-7Bs powering the LCC's 81 737NGs. It also reached an agreement with GE Aviation that made the Winnipeg facility, which currently stands at 135,000 sq. ft., a "designated fulfillment center" for CFM56-7B engines.
Spirit Airlines yesterday was assessed a record $375,000 civil penalty by the US Dept. of Transportation "for failing to comply with rules governing denied boarding compensation, fare advertising, baggage liability and other consumer protection requirements," the agency said.
Macquarie Airports will sell its 35.5% stake in Bristol Airport to the Ontario Teachers' Pension Plan for £128 million ($211.7 million). MAp also will purchase an additional 3.9% share in Copenhagen Airports from OTPP for DKK570 million ($111.9 million), raising its stake to 30.8%. MAp said the transactions, subject to EU clearance, will result in net cash inflow of some A$120 million ($103.3 million) and should be concluded before year end.
Cathay Pacific Airways yesterday announced two transactions designed to increase its liquidity: The divestment of a stake in Hong Kong Aircraft Engineering Co. and a sale-and-leaseback deal with BOC Aviation. CX will sell its 20.7 million shares in HAECO, or 12.5% of its holding, for approximately HK$1.9 billion ($245.3 million), or HK$91.83 per share, to Swire Pacific. The deal is subject to approval of CX's independent shareholders and would reduce its stake in the MRO provider to 15%. Swire's would increase to 46%.
SAS Group airlines flew 2.24 billion RPKs in August, down 17.1% from the year-ago month. Capacity dropped 20.5% to 2.94 billion ASMs and load factor rose 3.1 points to 76.1%. SAS Scandinavian Airlines flew 2.05 billion RPKs, down 18.1%, against a 21.9% cut in capacity to 2.66 billion ASMs. Load factor rose 3.5 points to 77.1% and yield was down 3.2%. Air Berlin said August unit revenue rose 12% year-over-year to 6.21 euro cents (9.08 cents). It transported 2.7 million passengers, down 3.7%, and load factor rose 1.1 points to 84%.
Lufthansa Technik announced a 10-year extension to its Total Component Support contract with Wizz Air, which will include wheel and brake support. Wizz plans to grow its fleet from the current 26 A320s to 132 in 2017.
Finnair and the Finnish Flight Attendants Assn. reached a labor stabilization agreement valid from Oct. 1 through Dec. 31, 2010, covering the €12.3 million in cost cuts targeted by the airline. Among the terms are a 5% salary cut during the period and cancellation of incentive bonuses. The deal also includes a "pay-back" stipulation depending on Finnair's 2010 and 2011 results. The carrier said the terms "are not easy, but they are necessary. . .We reached an outcome by which redundancies will be avoided."
KLM will equip its entire intercontinental fleet with a new "comfort zone" in economy cabins, offering passengers up to 10 cm./4 in. more legroom and back supports that can recline twice as far as standard seats. The carrier's 777-200ERs and 747s offer 31-in. pitch in economy and its A330s 32 in. The comfort zone will be located at the front of the cabin and will be available starting in December. Each widebody will be fitted with 35-40 of the new seats, a spokesperson told ATWOnline. The service in economy comfort will be identical to standard economy.
British Airways said 140 flight attendants have applied for voluntary redundancy as part of its plan to cut some 2,000 positions. "We have a small surplus in the number of our senior-grade cabin crew and, combined with our reduced flying program, we have been able to accept applications for voluntary redundancy from the equivalent of 140 cabin crew," a BA spokesperson told reporters. In addition, 125 cabin staff on temporary contracts will be released.
Lufthansa Systems will provide its Lido OC flight planning solution to airBaltic under a five-year deal. Implementation will be completed in the 2010 first quarter.
AirBaltic is launching its own frequent-flyer program called BalticMiles, which is set to go into effect on Oct. 1. The airline left SAS Group in January ( ATWOnline, Dec. 19).
AirAsia raised MYR505.4 million ($144 million) through the sale of 380 million new shares representing 16% of its existing share capital, Reuters reported.
ARINC said Air China, Air Macau, Asiana Airlines, Cathay Pacific Airways, China Southern Airlines, Dragonair and Korean Air signed up to use its AviNet Airport wide-area network service, which is available to carriers using its Muse common-use passenger systems.
Amerijet International and pilots represented by the International Brotherhood of Teamsters announced a four-year contract yesterday, ending five years of negotiations and a strike that began Aug. 27 ( ATWOnline, Sept. 3). The union said "a revised sick-leave policy and the addition of onboard toilet facilities" were part of the deal, along with improved wages and benefits. Amerijet operates 727 and 767 freighters out of Miami.
SESAR Joint Undertaking signed contracts with several airlines and airline associations to engage their technical experts in developing Europe's new and long-overdue Air Traffic Management system. "It is essential or even vital for the success of SESAR that the expertise of the airlines is integrated as from day one of the development phase," Executive Director Patrick Ky said.
American Airlines yesterday rolled out the US Transportation Security Administration's Secure Flight program, which requires passengers to provide their full legal name, birth date and gender when purchasing tickets. TSA said it "determined that mandating the provision of the additional data elements. . .would greatly reduce the number of passengers misidentified as a match to the watch list." Other airlines will be required to phase in the program over time.
Cathay Pacific Airways and Dragonair flew 7.89 billion RPKs in August, a 1.9% rise from the year-ago month. Capacity fell 5% to 9.39 billion ASKs, lifting load factor 5.7 points to 84.1%. Iberia flew 4.56 billion RPKs in August, down 6.5% year-over-year, against a 4.4% cut in capacity to 5.53 billion ASKs. Load factor fell 1.8 points to 82.4%. LAN Airlines flew 2.51 billion RPKs in August, a 4.4% increase year-over-year. Capacity rose 7.4% to 3.28 billion ASKs and load factor slipped 2.2 points to 76.5%.
Bombardier Aerospace yesterday broke ground on the first CSeries building at Mirabel, the Complete Integrated Aircraft Systems Test Area that will house a virtual test aircraft. The CIASTA will test systems for reliability and functionality one year before the prototype's first flight, the company said. The entire CSeries complex eventually will span 860,000 sq. ft.
Jet Airways' pilots ended a five-day sickout over the weekend after the airline agreed to reinstate pilots it had fired. About half of the carrier's 760 pilots called in sick Sept. 8-12, forcing the cancellation of more than 1,000 flights ( ATWOnline, Sept. 11). The airline said in a statement that an agreement reached with the National Aviators Guild union after two days of talks was "amicable."
