AVIC subsidiary Commercial Engine Co. plans to obtain secure airworthiness certification for a domestically produced engine in 2016 so it is ready to power the large commercial jet planned to enter the market by 2020. CEC GM Zhang Jian said the company, along with CFM and Pratt & Whitney, is a candidate to furnish a powerplant for the trunk liner ( ATWOnline, March 12). "As far as I know, we will become one of the providers but won't be the only one," he said.
American Airlines flew 11.17 billion system RPMs in August, down 8.1% from the year-ago month. Capacity dropped 9.4% to 13.19 billion ASMs, lifting load factor 1.2 points to 84.7%. American Eagle flew 682.2 million RPMs, down 3.1%, against a 7.2% decline in capacity to 938.2 million ASMs. Load factor rose 3 points to 72.7%. Southwest Airlines said August passenger RASM fell 5%-6% year-over-year. It flew 6.69 billion RPMs, up 1%, while capacity dropped 6.1% to 8.34 billion ASMs. Load factor increased 5.6 points to 80.2%.
Aeromexico reportedly said it will permit passengers to make calls with their mobile phones following the Mexican government's decision last week to lift the ban on inflight use in domestic airspace, although flight attendants will be allowed to suspend the privilege if necessary.
Air France announced plans to offer employees a voluntary redundancy plan that could result in as many as 1,500 departures. The airline said it informed the Comite Central d'Enterprise workers council of the decision and intends to discuss the matter this week "with a view to presenting a project voluntary redundancy plan to the CCE on Oct. 21."
Moog said it expects to sign a definitive purchase agreement "very shortly" for GE Aviation Systems' flight control actuation product line in Wolverhampton, which GE acquired in May 2007 when it bought Smiths Aerospace ( ATWOnline, May 7, 2007). The Wolverhampton line furnishes high-lift actuation systems for the 777, 787, A330, A380 and military aircraft. It had $100 million in sales last year.
US Airline Pilots Assn., which represents US Airways flight crew, filed a lawsuit in federal court seeking removal of the Pension Benefit Guaranty Corp. as trustee of US pilots' pension plan and appointment of a temporary replacement "to investigate the plan's financial affairs." PBGC assumed control of the pension plan in 2003 when US terminated it during bankruptcy.
China last week raised the domestic fuel price by CNY300 ($43.86) per ton, which is expected to result in a CNY2 billion increase in annual operating costs for the airline industry, according to China Securities Co. aviation analyst Li Lei. Fuel accounts for more than 40% of Chinese carriers' total operating expenses. According to Li's estimate, China Southern Airlines will suffer a CNY760 million profit reduction since 80% of its route network is domestic. China Eastern Airlines' bottom line will sink by CNY420 million and Air China's will drop by CNY460 million.
The World Trade Organization issued a confidential 1,000-page preliminary ruling Friday regarding the legality of subsidies received by Airbus during development of the A380, with statements and press reports indicating that it may have found at least some problems with the aid.
Priestmangoode of London was contracted by Turkish Airlines to rebrand the carrier. Redesign will include aircraft interiors, lounges, check-in counters and consultation on a new livery. Work will begin next year with interior retrofits and installation of the new design in THY's 777s scheduled to begin delivery by the end of 2010.
Travelport GDS signed a content agreement with Zambezi Airlines providing Travelport GDS-connected travel agents worldwide with access to the carrier's fares and inventory. Airline operates two 737-500s.
Frontier Airlines said its bankruptcy reorganization plan was approved by an "overwhelming" majority of creditors and that the deadline for filing objections has passed. A confirmation hearing is scheduled for Sept. 10. President and CEO Sean Menke said the Denver-based carrier, acquired by Republic Airways Holdings, has "been able to completely restructure our business and reduce our costs to among the lowest in the industry." Its codeshare agreement with Midwest Airlines, also bought by Republic, went into effect Wednesday.
United Airlines flew 11.03 billion consolidated RPMs in August, down 3.3% year-over-year, against a 6.2% cut in capacity to 12.8 billion ASMs. Load factor improved 2.5 points 86.1%. US Airways Group said August mainline and regional passenger RASM fell approximately 15% year-over-year and total RASM dropped 13%. Group airlines flew 5.69 billion consolidated RPMs, down 3.9%, against a 3.9% cut in capacity to 6.69 billion ASMs. Load factor fell 0.1 point to 85%.
Continental Airlines said August estimated consolidated unit revenue fell 16.5%-17.5% from the year-ago month while mainline RASM dropped 17%-18%. CO flew 8.78 billion consolidated RPMs last month, a 3.9% drop, while capacity fell 6% to 10.23 billion ASMs. Load factor rose 1.9 points to 85.8%. AirTran Airways flew 1.85 billion RPMs in August, down 6.1% year-over-year, against a 3.4% cut in capacity to 2.18 billion ASMs. Load factor slipped 2.4 points to 84.9%.
Amerijet International, a Miami-based cargo carrier operating 727-200Fs and 767-200Fs, yesterday said it maintained its "commitment, continued focus and strength in providing scheduled cargo services to the Caribbean, Mexico, Central and South America" despite a strike by 62 pilots and flight engineers represented by the International Brotherhood of Teamsters that started Aug. 27 following a breakdown in negotiations. The strike is being honored by unions at several other US carriers, according to the IBT, which claimed Amerijet now is attempting to outsource work to foreign airlines.
FAA will give US airlines until early January to replace the Thales speed probes on A330s and A340s with Goodrich probes, according to Bloomberg News, which cited a Federal Register notice it said is scheduled for publication today. EASA already has mandated the replacements be made on A330s/A340s operated by European airlines ( ATWOnline, Aug. 3) in the wake of June's Air France A330-200 accident ( ATWOnline, Sept. 1).
Air New Zealand said flight attendants represented by the Engineering, Printing and Manufacturing Union working on A320s operated by ANZ's Zeal320 transtasman subsidiary have ratified a new labor agreement ( ATWOnline, April 27).
Midwest Airlines will lay off an additional 59 flight crew employees as it replaces its 717s with Republic Airlines E-190s, according to a filing with the Wisconsin Dept. of Workforce Development cited by the Milwaukee Journal Sentinel. The new reductions will take effect Oct. 1, with all of the 717s scheduled to be replaced by Republic-staffed aircraft by December. Midwest cut about 100 positions last month ( ATWOnline, Aug.
Bombardier Aerospace reported a 36.6% dip in fiscal second-quarter operating profit to $154 million from the $243 million posted in the year-ago period. Revenue fell 4% to $2.4 billion in the three months ended July 31 as the company delivered 80 aircraft comprising 51 business jets, 28 commercial aircraft and one amphibian. It delivered 89 in the year-ago period. Its order book for the quarter declined by a net of 38 units as it secured commitments for 15 commercial and 27 business aircraft but suffered 80 business cancellations. It booked 175 orders last year.
Oxford Aviation Academy signed an agreement to work in partnership with the newly formed Gulf Aviation Academy to create a new airline pilot training capability in Bahrain. As part of the agreement, a group of 20 students accepted into GAA's Cadet Pilot Training Program will commence ab initio training at Oxford this month, followed by flight training at OAA centers in Melbourne or Phoenix. Up to 100 students will enter training during the first year.
Jazz Air announced tentative labor agreements with approximately 1,000 customer service agents and some 900 maintenance and engineering employees represented by the Canadian Auto Workers.
Southwest Airlines yesterday unveiled EarlyBird Check-in, which allows passengers to board the aircraft prior to general check-in, but after Business Select customers and premium loyalty program members, for an extra $10 each way. SWA is known for its unreserved seating and for boarding passengers in groups. The EarlyBird service will be available up to 25 hr. prior to scheduled departure.
Hawaiian Airlines will start charging $10 for the first checked bag on inter-island flights beginning Sept. 14. "Our costs continue to rise and fares have simply not kept pace. We've held the line on this fee as long as possible, but have to remain competitive," Senior VP-Marketing and Sales Glenn Taniguchi said. Premium loyalty program members, business class passengers and those traveling on international tickets including points in Hawaii are exempt.
