Rolls-Royce signed a long-term TotalCare engine service agreement worth more than $350 million with Mexicana Group, covering 25 BR715-powered 717-200s operated by its low-cost subsidiary MexicanaClick.
Following the dramatic slowdown in demand during the second half of 2008, the Chinese airline industry experienced double-digit domestic growth in January and February that is being credited to Beijing's economic stimulation policies. Chinese carriers transported 34.5 million domestic passengers in the first two months of 2009, up 15.3% over the year-ago period. Boardings on domestic routes climbed 21.3% to 16.3 million in January and 17% to 16 million in February, according to CAAC.
AirAsia plans to borrow MYR3 billion ($832 million) in 2010 to buy 24 aircraft, Investor Relations Head Mohshin Aziz told Bloomberg News last week. He added that the financing is in addition to the MYR2 billion it lined up to finance 14 A320 deliveries in 2009 and 2010. Separately, CEO Tony Fernandes said Chengdu and Xi'an will be added to AirAsia's network later this year, bringing the number of routes it operates to China to 10.
Lufthansa increased the number of deactivated aircraft from 20 to 24 last month in response to falling demand, a source close to management told ATWOnline. LH Chairman and CEO Wolfgang Mayrhuber previously had said that parked aircraft will vary in size between the CRJ200 and the A300-600, with those two types being the most common. LH Cargo has removed four MD-11Fs from service ( ATWOnline, March 12). The 24 parked aircraft represent approximately 10% of Lufthansa's capacity.
Emirates will allow its flight attendants to take "purely voluntary" unpaid leave of 1-6 months beginning in May. "In anticipation of our growing fleet, Emirates' recruitment efforts over the past 12 months have been highly successful in meeting our operational requirements," an EK spokesperson was quoted as saying. "Combined with a sharp drop in cabin crew attrition, we now find ourselves in a position to be more flexible as an employer."
Singapore Airlines said it signed "in principle agreements" with unions representing ground staff, cabin crew and administrative employees to shorten the work month by one day and "cannot rule out further measures to contain costs if the downturn worsens" ( ATWOnline, Feb. 18). SIA still is discussing the measure with pilots and hopes to implement the scheme across the company on May 1.
Qantas unveiled a streamlined ownership structure for Singapore-based Jetstar Asia and Valuair designed to provide a growth platform in line with its pan-Asian strategy. Under the structure, Qantas Group and Singapore-based Westbrook Investments acquired all shares in Orangestar Investment Holdings, the previous ownership holding structure, via a new holding company, Newstar Investment Holdings. Financial terms were not disclosed. Westbrook, wholly owned by Choo Teck Wong, will hold 51% of Newstar, Choo is a longtime partner of QF and will be Newstar's chairman.
Air China yesterday revealed in a filing with the Hong Kong Stock Exchange that it has purchased Beijing Capital Airport Holding Co.'s 24% stake in Air China Cargo for CNY718 million ($105 million), completing a process started last year that has seen its share of its cargo unit rise from 51% to 100% ( ATWOnline, Feb. 11).
SkyTeam expects to announce at least one and perhaps several new members this year and is talking with Malaysia Airlines and Vietnam Airlines, with China Eastern Airlines and China Airlines also in the picture, Chairman Leo van Wijk told Luchtvaartnieuws. The alliance currently has 11 full members and three associate members, one of which, Copa Airlines, "informally" has indicated its intention to leave. Former partner Continental Airlines is trading SkyTeam for Star Alliance in October and Copa likely will follow suit.
SAS Scandinavian Airlines, Wideroe and Blue1 signed a 10-year agreement to adopt the full Amadeus Altea Customer Management platform to manage global sales and reservations, inventory and departure control processes. Amadeus will implement the new technology platform "through a phased migration process" starting next year. Altea is the heart of the common IT platform adopted by Star Alliance a few years ago.
Air Jamaica expects to complete its privatization by the end of June. The Jamaican government appointed a privatization committee and has asked International Finance Corp., a private-sector arm of World Bank Group, to serve as adviser ( ATWOnline, May 7,2008). A mid-April meeting is scheduled with an "international airline group" that has indicated it plans to bid on the state-owned airline, which has been losing an estimated $150 million annually.
Qatar Airways will install Mobile OnAir's inflight Internet and SMS services on its 22 A320 family aircraft as well as "several" yet-to-be delivered planes under an agreement announced yesterday. QR does not intend to offer telephone calls.
Bombardier Aerospace's EBIT soared 62.8% to $896 million for its fiscal year ended Jan. 31 from $563 million in the prior fiscal year on a 3.1% rise in annual revenues to $10 billion. However, the improvement was overshadowed by an announcement yesterday that the company "is revising downward all of its business and regional jet production rates" and will cut approximately 3,000 jobs by year end. Of these, 1,831 will come from the ranks of unionized workers; 725 contract workers and 444 nonunion and management employees also will be laid off.
US airlines may be able to return to profit this year despite the recession owning to fortuitous decisions made in the first half of last year in response to high oil prices, according to AirTran Airways CFO Arne Haak and United Airlines Senior VP-Planning Kevin Knight.
Industry representatives at the fourth Aviation & Environment Conference in Geneva committed to playing their role in mitigating climate change and urged ICAO "to redouble its efforts" to present a unified, global emissions reduction policy at December's UN climate summit in Copenhagen.
SR Technics Group yesterday confirmed that it intends to close its line maintenance base at Dublin ( ATWOnline, Feb. 13), which employs 1,135. Six hundred will be laid off Friday, with a further 100 made redundant later in the month. "All remaining activities are expected to be wound down or transferred to other providers" by Aug. 31, SRT said.
SkyTeam will introduce a centralized managing entity based in Amsterdam that will handle marketing, sales, airport synergies and transfer product, cargo, advertising and branding, alliance operations, finance, corporate communications and administration. It will be headed by MD Marie-Joseph Male, an Air France executive, and will be in place before year end. "In SkyTeam, we have always prided ourselves on our collaborative nature.
Embraer launched steep approach testing at London City for the E-190. Certification is expected by year end. The E-170 received certification to operate into LCY in 2007. Last December British Airways signed an order six 170s and five 190s to be operated by its BA CityFlyer subsidiary ( ATWOnline, Dec. 23, 2008).
IATA said all 224 member airlines now are listed on the IOSA registry. "This is a great achievement and an important mark of quality for all IATA airlines. This in turn is a reassurance for travelers everywhere of aviation's serious commitment to safety," DG and CEO Giovanni Bisignani said. The IOSA registry now comprises 308 carriers. Qatar Airways was the first airline to pass its IOSA audit in September 2003. Eight airlines resigned at the end of 2008 and another was expelled on March 31 for not meeting the registration deadline.
UK Secretary of State for Transport Geoff Hoon appointed Deirdre Hutton as CAA chair. The first woman named to the post, Hutton will take up the position in August when Roy McNulty's term comes to an end after eight years. She currently chairs the Food Standards Agency and will sit for five years. Hoon also will appoint a CEO.
Calin Rovinescu's appointment as president and CEO of Air Canada, succeeding Montie Brewer, who resigned Monday, drew a rebuke from CAW President Ken Lewenza, who called Rovinescu "a disturbing choice." CAW represents more than 5,000 customer service and sales workers at the airline. Rovinescu served as executive VP-corporate development and strategy at AC between 2000 and 2004 and was a key figure in the carrier's 18-month bankruptcy reorganization as chief restructuring officer. He has been involved with Canadian commercial aviation for more than two decades.
CAE said it signed contracts for three full flight simulators in March valued at C$33 million. Customers are Avianca, Sofia Flight Training (both CAE 5000 Series A320 FFSs) and Emirates-CAE Flight Training (CAE 7000 Series A320 FFS). It also announced the termination of a 757 FFS sale to Flight Training Finance and the ensuing sale of the equipment to an unidentified customer. CAE sold 34 simulators in its fiscal year ended March 31.
WHEN SKYWEST INC. VP AND CFO BRAD RICH SET ABOUT to prepare remarks for a recent investors' conference in New York City, he sought some advice on what to say: "Just ask for patience and forgiveness," suggested his learned adviser. And that's how he opened his presentation at the Raymond James Growth Airline Conference in February. "Some days are just more challenging than we can handle," Rich said.
Airports Council International Europe, the Civil Air Navigation Services Organization, Eurocontrol and IATA unveiled a joint action plan to implement continuous descent approach procedures at up to 100 airports across Europe by the end of 2013, saving more than half a million tonnes of CO2 emissions annually.
