LCAL, the Dubai-based lessor established in 2004 to buy and lease 787s, cut its Dreamliner order from 21 aircraft to five, dealing another blow to Boeing's troubled next-generation aircraft program. The 16 cancellations announced by the manufacturer yesterday, valued at $2.8 billion, marked the second big 787 order cut revealed in the last two weeks. Russia's S7 confirmed last week that it had cancelled its order for 15 ( ATWOnline, Jan. 30).
US House of Representatives Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) this week introduced legislation that would require the US Dept. of Transportation to renew airline alliances' antitrust immunity every three years.
Southwest Airlines flew 5.14 billion RPMs in January, down 6.4% year-over-year. Capacity fell 4.4% to 8.17 billion ASMs and load factor dropped 1.4 points to 62.8%. Ryanair transported 4.1 million passengers in January, up 11% from the year-ago month. Load factor held steady at 69%.
A J Walter Aviation said it selected DHL Express to manage its inbound and outbound delivery requirements. Valued at £1.2 million ($1.7 million) per year, the contract guarantees next-day delivery to the US and allows for discounted rate options.
US federal appeals court ruled yesterday that the US Transportation Security Administration overcharges airlines on screening fees and should reduce the amount of money it collects from carriers annually. While the court said TSA is correct in charging airlines to help cover costs of screening passengers, the agency has misinterpreted laws passed post-9/11 by also charging carriers for costs associated with screening nonpassengers. Twenty-two US airlines jointly filed suit alleging that they overpay TSA by about $100 million per year.
Saab Aircraft Leasing completed 17 aircraft transactions in 2008, allocating its entire portfolio to customers. Company officials said business was limited only by the number of aircraft available. At year end, SAL's portfolio comprised 125 aircraft leased to 17 clients in 11 countries.
United Airlines pilots represented by the Air Line Pilots Assn. and Aer Lingus pilots represented by the Irish Air Line Pilots Assn. announced a protocol agreement designed to "protect the interests" of pilots from both carriers ahead of the transatlantic partnership scheduled to take effect in March 2010 ( ATWOnline, Jan. 23). Pilots said the initial Washington Dulles-Madrid route will be operated under EI's certificate but will not be flown by either UA or EI crew. "This partnership. .
United Airlines flew 8.58 billion consolidated RPMs in January, a 10.9% decrease from the year-ago month. Capacity dropped 10.5% to 11.41 billion ASMs and load factor was down 0.3 point to 75.2%. US Airways said January consolidated passenger RASM fell 2%-4% year-over-year. Traffic was down 6.2% to 4.5 billion RPMs against a 6.8% decline in capacity to 6 billion ASMs. Load factor rose 0.5 point to 75%.
Oneworld member carriers will adopt an alliance livery on a portion of their fleets "as a symbol of their renewed commitment to the alliance," Governing Board Chairman and American Airlines Chairman and CEO Gerard Arpey announced this week at the alliance's 10th anniversary event in Madrid. Star Alliance runs a similar program ( ATW, February 2008). Around 40 aircraft will bear the new livery, which features the oneworld name and logo on the fuselage against a white or a polished metal background.
JetBlue Airways pilots failed to form a union this week, with only 33.4% of the approximately 1,937 pilots voting in favor of empowering the JetBlue Pilots Assn. A majority vote was required.
US Depts. of Energy and Agriculture will release up to $25 million in funding for research and development of biofuels, including aviation biofuels, the Air Transport Assn. announced.
Oneworld has no plans to change its strategy and remains interested in adding new members only in Brazil, Russia, India and mainland China, Governing Board Chairman and American Airlines Chairman and CEO Gerard Arpey said yesterday at a Madrid marking the alliance's 10th anniversary.
Fraport announced the sale of its 65% stake in Frankfurt-Hahn to the State of Rhineland-Palatinate for €1 ($1.28). The state now holds 82.5% of HHN, with eastern neighbor Hesse holding the remainder. Fraport said its divestment largely was related to Ryanair's threat to reduce its operation at HHN if the operator successfully imposed a per-passenger "airport development fee." It said the fee "was an essential prerequisite. . .to make Hahn profitable."
Travelport GDS reached content distribution agreements with Xiamen Airlines, China Southern Airlines and China Eastern Airlines to provide Galileo, Apollo and Worldspan subscribers with access to international fares and inventory via its GDS technology.
Oneworld Governing Board Chairman and American Airlines Chairman and CEO Gerard Arpey dismissed suggestions that the alliance might fall apart if the application for antitrust immunity for AA, British Airways, Finnair, Iberia and Royal Jordanian or the proposed merger between BA and IB fails. "We are not contemplating anything else than getting immunity, which will enable us to compete on more equal terms with the other alliances," Arpey told ATWOnline at the group's 10th anniversary event in Madrid.
Finnair CEO Jukka Hienonen told ATWOnline at this week's oneworld meeting in Madrid that the airline does not have the flexibility to remain stable during the current market downturn. Finnair was €2.1 million ($2.7 million) in the black through the first nine months of 2008, but it does not expect a positive full-year result.
Continental Airlines said January consolidated RASM fell 5%-6% year-over-year. Traffic dropped 11% to 6.43 billion RPMs against a 6.5% decline in capacity to 8.79 billion ASMs. Load factor was down 3.6 points to 73.2%.
Aeroflot said "preliminary analysis" of its 2008 financial performance indicated a 26.2% year-over-year growth in revenue based on Russian accounting standards. "This gives ground for us to expect a positive financial result for 2008, close to the 2007 level," SU said. It reported a $313.4 million profit under IFRS in 2007. It transported 9.3 million passengers in 2008, up approximately 13.4%, but load factor fell 0.3 point to 70.9%. Separately, the airline launched twice-weekly Moscow Sheremetyevo-Eilat Ovda flights aboard an A320.
Pratt & Whitney reached a four-year deal with Evergreen International Airlines to provide line maintenance services for PW4000, JT9D and CF6 engines. Agreement includes engine changes and is renewable up to 20 additional years.
Airbus signed a cooperation agreement with Xian Aircraft Industry Co. stipulating that wings for A320 family aircraft assembled at the Tianjin FAL will be fully completed and tested in Tianjin. XAC will build an equipping and testing facility near the FAL, with operations expected to start by year end. First delivery of fully equipped wings is scheduled for the 2010 first quarter. Production rates by the end of 2010 are projected at two units per month and by the close of the following year at four units per month.
The Air Line Pilots Assn. asked for US FAA to develop more stringent flight- and duty-time rules to prevent pilot fatigue and called on Congress to pass legislation protecting pilots who report safety concerns. The world's largest pilots' union, comprising 53,000 members in North America, outlined its 2009 agenda at a Washington briefing yesterday, claiming that the US regulatory and legal framework regarding pilots is weak and open to disparate interpretations. It also warned that freighter aircraft are vulnerable to hijackings.
Malaysian government's position on AirAsia's ambitious standalone airport project, which was floated last month ( ATWOnline, Jan. 12), now is the subject of some confusion. AirAsia CEO Tony Fernandes made a presentation to Deputy Prime Minister Najib Razak and senior officials from the Finance Ministry and airports authority late last week.
