EasyJet announced that Group Finance Director Jeff Carr will leave the company and Mandala Airlines CEO Warwick Brady will join the LCC as procurement director Wednesday.
First-quarter 2009 global airline industry losses in aggregate have totaled $1 billion so far, in line with expected full-year losses of $4.7 billion, IATA said in a "Financial Monitor" released Friday, noting that "airfreight appears to have bottomed out but passenger travel continues to shrink, particularly premium."
Swine flu fears continue to affect the industry, with Continental Airlines cutting capacity on service to Mexico by 50% starting today, France calling for the EU to restrict flights to Mexico, United Airlines acknowledging a worker contracted the disease and Southwest Airlines admitting that bookings last week were "erratic" owing to fears that the flu could be spread in aircraft cabins ( ATWOnline, May 1).
CSA Czech Airlines reached agreements with seven of nine unions to reduce salaries to last year's levels, which will save the carrier approximately CZK250 million ($12.4 million) this year. CSA said it "initiated redundancies" targeting 28 positions held by employees represented by the Trade Union of Aviation Mechanics, with which there was no agreement on pay cuts that will bring about the necessary 5% reduction in costs. Negotiations with the CZALPA pilots union are continuing.
Innova Aviation Consulting and InterVISTAS announced their merger, creating the InterVistas Consulting Group, which will operate companies in the US, Canada and Europe.
GREAT SUCCESS STORIES IN AVIATION ARE a rarity even in good times, and noteworthy accomplishments are even less likely when an airline has had to rise from the ashes of a fallen parent. Sydney-based Regional Express, known as Rex to locals, has done all this and more and remains profitable in the worst economic downturn in at least four decades.
TO SAY THAT THE PAST YEAR HAS BEEN A challenge for the US regional airline industry understates the case for a group of carriers buffeted by financial losses, capacity reductions imposed by mainline partners and efforts by those partners to restructure longstanding contracts. SkyWest Inc. Executive VP and CFO Brad Rich could have been speaking for the entire industry when he said, "This is the most challenging time we've faced in the 21 years I've been at SkyWest."
United Airlines launched a carbon offset program that complements its existing efforts to reduce its impact on the environment. Its environmental initiatives include fleet enhancements, an EcoPower engine wash system and alternative-fuel ground support equipment vehicles. Last year it was the only US airline to participate in the environmental program ASPIRE, using 11 fuel-savings initiatives in a single transpacific flight to save more than 32,000 lb. of carbon emissions.
HE GLOBAL ECONOMIC DOWNTURN IS TAKING A TOLL on all sectors of the commercial aviation business and regional aircraft sales are no exception. While manufacturers of regional jets and turboprops continue to speak confidently about the long-term market prospects for their products, there is no sugarcoating the near-term pain. Both Embraer and Bombardier have announced major workforce cutbacks and are hunkering down to ride out the financial storm.
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. But the next time she needs to speak with someone in the airline's call center, the agent is likely to see only her name, membership number and status.
Sustainable biofuels for the airline industry are just around the corner, say two suppliers that already have conducted successful inflight demonstrations.
WHILE GLOBAL COMMERCIAL aviation is an intensely competitive business, it is notable among the world's for-profit enterprises for its high level of interconnectedness and reliance on cooperation among competitors. Technology platforms used by one airline often are applicable to another, even fierce rivals. Many of the worldwide aviation business's inefficiencies, in fact, arise from a lack of common standards and systems.
Continental chief Larry Kellner hinted that the carrier may migrate to the Star Alliance Common IT Platform at some point after it joins the alliance in October.
Sapphire Energy, which has conducted flight demonstrations with Continental and Japan Air Lines, likewise is excited about the potential of algae-derived biojet. It claims that by 2011 it will be producing 1 million gal. of diesel and jet fuel per year, double its initial estimates. By 2018 the number will be 100 million gal. annually and by 2025 it will be up to 1 billion gal. of fuel per year. In context, that is 3% of the US's 36-billion-gal. renewable fuel standard.
Finnair and Qatar Airways have joined the Aviation Global Deal Group that was launched in February to take leadership of the climate change debate and develop a global policy for tackling aviation emissions. Air France KLM, British Airways, Cathay Pacific Airways, Virgin Atlantic Airways, airport operator BAA and international nongovernmental organization The Climate Group formed the organization to present a united front to fast-track an industry response and last month presented their ideas during a UNFCCC session in Bonn. Attendees at the ATW-Leeham Co.
CFM International last month launched its CFM56-7B Evolution engine enhancement program for EIS in mid-2011. The new engine, in combination with aerodynamic refinements to the 737NG, will burn 2% less fuel. Key to the improvement is the use of advanced computer codes and 3-D design techniques to improve airfoils in the high- and low-pressure turbines to lift engine performance. Also, CFM is improving engine cooling techniques and reducing parts count to achieve lower maintenance costs.
Airbus announced the finalists in its global "Fly Your Ideas" challenge to develop creative ideas that could help shape the future of aviation and deliver further reductions in the industry's impact on the environment. The aerospace giant received entries from 2,350 students representing 225 teams from 82 countries that entered the competition launched in October, from which 86 teams were selected for the second round. The five finalists are:
British consumers believe more airlines are taking the threat of climate change seriously, but a majority thinks carriers need to do more, reports a recent UK survey conducted by Good Business for Times Online. According to the survey, 60% of consumers do not think the industry takes the environmental impact of flying seriously and 37% believe that airlines are responsible for addressing the environmental impact of flying, ahead of government at 20% and aircraft makers at 19%.
To truly transform our economy, protect our security and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution . . ."
The airline industry and President Barack Obama's administration scrambled yesterday to allay public fears raised by Vice President Joe Biden's comments about a link between swine flu and commercial air travel on NBC's Today show.
Embraer posted a first-quarter net loss of $23.4 million, reversed from an $85 million profit in the year-ago period, as commercial aircraft deliveries dropped 15.8% to 32. Commercial aircraft sales slid 6.4% to $870.4 million and the Brazilian manufacturer conceded that it had incurred an undisclosed number of "deferrals of deliveries scheduled for the commercial aviation segment." It revised down its delivery guidance for all aircraft in 2009 to 242 from 270 previously, with 115 commercial aircraft to be delivered.
Australian Competition and Consumer Commission announced it has instituted proceedings in federal court against Cathay Pacific Airways "for alleged price-fixing of air freight." CX is the eighth airline targeted by Australian authorities ( ATWOnline, Feb.
LIAT said Brian Challenger will serve as interim CEO, succeeding the departing Mark Darby, while a permanent replacement is sought. Challenger joined the board in 2006.
