Hainan Airlines is expected to receive a CNY3 billion ($439 million) capital injection from the Hainan provincial government and its parent Hainan Airlines Group to facilitate fleet expansion and improve its debt ratio. The provincial government and HAG each will provide CNY1.5 billion to HNA. The money is intended to reduce the Haikou-based carrier's debt ratio to 81%. HNA plans to introduce 90 new aircraft in 2009-13. They will cost around CNY24.3 billion; the capital injection is aimed at broadening aircraft financing channels available to HNA, Guotai Junan Securities noted.
Cathay Pacific and Dragonair reported an 8.8% rise to 2.2 million passengers enplaned in April. Traffic increased 5.3% to 7.88 billion RPKs on a 1.1% lift in capacity to 9.54 billion ASKs, resulting in load factor heightening 3.2 points to 82.6%. The increase was mainly owing to the Easter holiday falling in April this year and fare stimulation, the airline group said. "The slump in demand for premium traffic continued unabated across the network and. .
Lufthansa Technik Sofia, the 80-20 joint venture between Lufthansa Technik and Bulgarian Aviation Group launched last year, recently opened a second maintenance line for Boeing and Airbus narrowbodies. First user of the facility was a Ural Airlines A320. Beginning in July the JV will add 737 maintenance to its portfolio.
Czech Airlines signed a seven-year global maintenance agreement with ATR valued at $14 million covering repair of LRUs on the 12 ATR aircraft in CSA's fleet. The accord marks the launch of ATR's new Door-2-Door service program in which the manufacturer is responsible for the entire supply chain management process.
Southwest Airlines announced the closure of the second tranche of its sale and leaseback deal with BOC Aviation, selling three 737-700s for $104 million ( ATWOnline, April 7). BOC immediately leased the aircraft back to SWA for 16 years.
Alaska Airlines flew 1.48 billion RPMs in April, down 5.9% year-over-year. Capacity dropped 8.3% to 1.87 billion ASMs, lifting load factor 2 points to 78.9%. AirTran Airways flew 1.51 billion RPMs in April, up 0.3% year-over-year, against a 7.9% fall in capacity to 1.88 billion ASMs. Load factor rose 6.5 points to 80.4%. WestJet flew 1.19 billion RPMs in April, a 5.5% increase from the year-ago month. Capacity rose 7.2% to 1.47 billion ASMs and load factor dropped 1.3 points to 81.2%.
Boeing Chairman, President and CEO Jim McNerney said that with the 787 on the "eve" of first flight, "we're turning to profitability" and working on developing an efficient production process that will allow the manufacturer to benefit from the troubled program as quickly as possible.
US FAA and the National Air Traffic Controllers Assn. began mediated negotiations this week, guided by a three-member panel comprising former FAA Administrator Jane Garvey, Richard Bloch and George Cohen ( ATWOnline, May 4). Agreement provides for binding resolutions of unresolved issues, "guaranteeing a new collective bargaining agreement," FAA said. Process is expected to last through early June.
Embraer announced the delivery of the first of two 50-seat ERJ-145s to Passaredo Linhas Aereas through its ECC Leasing subsidiary ( ATWOnline, March 20). The aircraft operated its first flight for the Ribeirao Preto-based airline Monday. The second plane is being prepared for delivery at Embraer Aircraft Maintenance Services in Nashville. Passaredo also operates six Brasilias.
Boeing Corporate President and CFO James Bell said Boeing Capital Corp. will provide about $1 billion in financing for new aircraft deliveries in 2009 but expressed confidence that there also are "adequate sources of financing" in traditional credit markets. He added that it's too early to make an assessment for 2010 but said the company does not plan to be a primary financing source going forward. "There is not the need [for Boeing] to finance aircraft [on a large scale]," he insisted.
Seabury Solutions announced that Southwest Airlines implemented its Airline Performance Analysis System, a decision-support tool that measures the operational and financial performance of individual flights.
US FAA yesterday said it proposed a $1.3 million civil penalty against Gulfstream International Airlines, alleging "improper scheduling of flight crew duty time" and installing unapproved air conditioner compressors on its fleet of 27 1900D turboprops.
In a closed-door session at the Regional Airline Assn. annual conference in Salt Lake City that extended late into Tuesday evening, CEOs of a number of US regionals focused primarily on safety issues raised after the Feb. 12 Colgan Air Q400 crash that killed 50 people outside Buffalo, while the US Senate promised to conduct its own examination of regional safety.
Alaska Airlines pilots represented by the Air Line Pilots Assn. ratified a four-year labor agreement that includes pay increases, retirement options for current employees and "work rules that provide increased flexibility for pilots and improved productivity for the airline," the parties announced. Deal covers 1,455 pilots and is effective as of April 1, 2009. The company's defined benefit pension plan will be closed to pilots hired following ratification; those pilots will participate in a 401(k) program. Negotiations began in January 2007 and the contract was finalized one month ago.
Virgin America said it has completed installation of the Gogo inflight Internet service on its fleet and as of yesterday is offering the service on each of its 100 daily flights ( ATWOnline, Dec. 3, 2008). Cost is $12.95 for daytime flights longer than 3 hr., $9.95 for shorter daytime flights, $5.95 on redeye flights and $7.95 for handheld devices.
US National Transportation Safety Board wrote to American Airlines this week recommending that the carrier evaluate its maintenance program's Continuing Analysis and Surveillance System "to determine why it failed," contributing to a September 2007 MD-82 inflight engine fire during a departure climb from St. Louis ( ATWOnline, April 8). "Then, make necessary modifications to the program to correct these shortcomings," NTSB told AA.
ICAO yesterday said it "intensified efforts" to assist member states in developing effective and harmonized national contingency plans in the event of a global H1N1 influenza (swine flu) pandemic.
The US Air Transport Assn. said yesterday that US airlines' passenger revenue dropped 18% year-over-year in April, the sixth consecutive month of declining passenger revenue. The number of passengers traveling on US airlines fell 6.3% for the month while the average per-mile price to fly declined 12.6%. "Revenue declines extended beyond the mainland United States to the transatlantic, transpacific and Latin markets," ATA said, noting that April results partially reflect the shift in the Easter holiday from April last year to March this year.
Qantas withdrew first class from sale for flight departures between July 6 and Oct. 31 on three routes due to the downturn in premium traffic. The flights are Sydney-San Francisco, Sydney-Buenos Aires and Melbourne-Hong Kong-London Heathrow.
Swiss WorldCargo plans to implement short-time work starting June 1 for around 100 employees. In the first four months of this year, cargo load factor dropped 18.4 points-year-over-year to 66.8%. In April it fell 20.6 points. Separately, Swiss International Air Lines named Holger Hatty to the management board as CCO effective July 1. He previously served on the executive board of Lufthansa Passenger Airline and was in charge of strategy, alliances and holdings, network management, IT and purchasing.
Singapore Airlines reported an 18.2% year-over-year plunge in passenger numbers last month to 1.2 million. Traffic fell 17.7% to 6.27 billion RPKs against just a 12.9% cut in capacity to 8.68 billion ASKs, lowering load factor 4.2 points to 72.2%. On the cargo front, FTKs were down 21.6% and load factor fell 3.7 points to 58%. SIA has cut flights to Los Angeles, Osaka Kansai, Vancouver and Amristar and grounded 17 aircraft.
News from Travel Technology Update: Imagine a business traveler whose flight has been delayed for the third time. She's going to be late to an important meeting, where she is scheduled to give a presentation. The look on her face says it all: She's frustrated and stressed.
Hainan Airlines Group plans to relaunch its Grand China Express Airlines subsidiary as Tianjin Airlines on June 8 after reaching a deal with the local government. Originally started in June 2007, Grand China operated 10 E-190s, 12 ERJ-145s and 29 Do 328-300s in April on more than 80 domestic routes. In December, the Tianjin government agreed to inject CNY200 million ($29.3 million) into Grand China, giving it a 15.4% stake in the reconstituted carrier, which has been approved by CAAC.
Aeroflot declined Alexander Lebedev's offer to purchase his 49% stake in Blue Wings for €1 ($1.35) ( ATWOnline, May 8), Blue Wings Chairman Jorn Hellwig told Der Spiegel. Lebedev now is considering negotiating with S7 Airlines and Rosavia, as well as Arabian investors, in his search for more capital. Discussions with Air Berlin or the German government also may occur, Hellwig said.
