Air Berlin will keep its order for 25 787s, a spokesperson told ATWOnline, and now expects the first aircraft in 2013. Its long-haul plans remain in flux. AB management is talking with employees at its LTU subsidiary about a possible integration of its long-haul operation into AB and the spokesperson said the future of both carriers' long-haul operations "depends on the results of these talks." Discussions with the Vereinigung Cockpit union are scheduled later this month.
Aeroflot board "decided to continue the study on the rationale of acquiring" Alexander Lebedev's 49% stake in Blue Wings, according to a statement cited by Reuters ( ATWOnline, May 6).
EU and Canada Wednesday signed a far-reaching open skies agreement under which airlines from each side may operate freely without any restrictions on the number of carriers or flights between any airport in the EU and any in Canada. Agreement contains provisions for a phased easing of restrictions on control and ownership of carriers, leading to the right to set up airlines in the territory of the other party in the third phase and the right to own and control 100% of a foreign carrier in the fourth phase. "This will generate major benefits for consumers and airlines. .
The European Parliament accepted the European Commission's proposal to suspend the "use it or lose it" slot rule at EU airports during the current summer schedule.
IATA said France has adopted one-stop security protocols allowing passengers screened at a European airport to bypass a second screening when connecting in France. One-stop security will begin at Lyon and selected Paris Charles de Gaulle terminals, then expand. IATA estimated it will save $30 million a year.
Jet Airways announced the launch of a new economy service called Jet Airways Konnect that will be available on select domestic routes starting today. "Designed to meet the needs of the low-fare segment," JAK will feature reduced fares and buy-on-board meals and will be available on two 737s and six ATR 72-500s to start.
Southwest Airlines said that current revenue and booking trends "continue to be adversely impacted by the weak economic environment" and continuing swine flu concerns, leading the LCC to predict that second-quarter unit revenue will fall more than the 2.8% decrease reported in the first quarter. April RASM is expected "to be in line" with the year-ago month. SWA flew 6.52 billion RPMs last month, up 4.1% year-over-year, against a 1.9% decline in capacity to 8.46 billion ASMs. Load factor rose 4.4 points to 77%.
Finnair and its Helsinki Vantaa-based Northport Oy ground handling subsidiary reached a cost-savings agreement worth some €3.5 million that will include the layoff of 15 employees, the two-week furlough of 87 more and the shift of 183 full-time positions to part-time status. Northport employs 858. Separately, Finnair will launch a seasonal twice-weekly Helsinki-Pisa flight on May 8.
Sabre and Lufthansa signed a four-year global agreement effective July 1 providing Sabre Travel Network-affiliated agencies and corporations continued access to LH's full content.
China Airlines reported TWD23.08 billion ($698.1 million) in first-quarter sales revenue, down 25.6% from the year-ago quarter. March revenue fell 30% year-over-year to TWD7.62 billion.
China Eastern Airlines signed a five-year, CNY590 million ($86.3 million) sale and leaseback contract with Bank of Communications Finance Lease Co. for two A340s. The aircraft, delivered in 1996, will be leased back for CNY17 million per quarter. "We can not only improve our cash flow and reduce debt ratio by a sale and leaseback of these two A340s but we also can optimize our fleet makeup," CEA Board Secretary Luo Zhuping explained. He said CEA's high debt ratio remains its biggest problem.
Emirates Chairman and CEO Ahmed bin Saeed Al Maktoum told reporters in Dubai that the carrier will report a profit for the fiscal year ended March 31 and that it has no plans to defer any aircraft deliveries scheduled through 2011.
Air Canada is seeking to lessen the burden of its C$3.2 billion ($2.7 billion) pension solvency deficit in order to gain "financial certainty" and is asking unions "for a moratorium" on funding its defined benefit plans.
Southwest Airlines announced a tentative four-year agreement with customer support and services and airport customer service employees represented by the International Assn. of Machinists and Aerospace Workers. Contract is subject to union ratification.
Allegiant Air parent Allegiant Travel Co. announced that PAR Investment Partners, its second-largest shareholder, is offering 2.25 million shares for sale, leaving it with more than 1.9 million following the transaction. Chairman, President and CEO Maurice Gallagher is the largest shareholder.
UK Secretary of State for Transport Geoff Hoon yesterday urged President Barack Obama's administration to commit to completing a Stage 2 open skies agreement by June 2010 "with the headline objective of liberalizing all foreign ownership in airlines to give European and American carriers a bigger home market and the ability to operate like any other competitive international company."
Air France reached a sale and leaseback deal with BOC Aviation for two 777-300ERs and two 777-200LR freighters. The latter closed last week and the former is expected to close next month. Financial terms were not disclosed.
Singapore Airlines reached an agreement with Air Line Pilots Assn.-Singapore for a one-day furlough this month. Deal was reached with mediation by the Ministry of Manpower and constitutes "an interim measure to provide both parties more time for discussions on the number of compulsory no-pay leave days required to match head count to operational requirements," SIA said. Unions representing ground staff, cabin crew and administrative personnel already have agreed to short-time work ( ATWOnline, April 3).
Air Fiji shut down last week, according to widespread press reports from the island nation. The carrier no longer is accepting bookings on its website. The Fiji Times reported that the airline's fourth-quarter revenue plunged 75% to FJD450,000 ($204,844). It launched operations in 1967 and served 13 destinations with eight 15-seat aircraft and one six-seat aircraft.
Air India parent National Aviation Co. of India named Karnataka state government Infrastructure Development Dept. Principal Secretary Arvind Jadhav as its chairman and MD replacing Raghu Menon. Ministry of Civil Aviation Joint Secretary and Financial Adviser Bharat Bhushan had held the post on an interim basis ( ATWOnline, April 28).
Aer Arann said it will reduce employee salaries by an overall average 7%, with executive and management pay cut by an average 17%. "More jobs have been saved" as a result, the Irish carrier said, as the initially planned 100 redundancies have been reduced to about 60.
GE Aviation signed a 10-year OnPoint solution agreement with Gulf Air covering the CFM56-5Bs the airline ordered to power 15 A320s scheduled for delivery between 2009 and 2013 ( ATWOnline, April 28). Contract is valued at more than $100 million.
