Last year was one of the safest years on record for air travel, according to Ascend, with 539 reported passenger and crew fatalities, down from 730 in 2007 and the second-best year on record. The UK-based consultancy and information services provider said that only 2004 had fewer fatalities at 434. On the down side, 2008 saw an increase in the number of fatal accidents to 28 from 24 in 2007. Ascend said the fatal accident rate for 2008 was 1 per 1.3 million flights compared to 1 per 1.2 million for the nine years since 2000.
US Airways confirmed yesterday that it will report a full-year loss, which was expected after it ended the third quarter $1.67 billion in the red. Its fourth-quarter result will be impacted by a $0.77-per-gal. loss on its fuel hedging contracts, which accounted for 60% of its mainline consumption. However, it expects to report a full-year gain of $0.12 per gal. In December the group flew 4.82 consolidated RPMs, down 0.9% from the year-ago month, against a 6.2% fall in capacity to 6.06 billion ASMs. Load factor rose 4.3 points to 79.6%.
Thai Airways will seek a delay in the delivery of six A330s scheduled to arrive between April and year end, having already received permission from Airbus to push back payments ( ATWOnline, Jan. 7). "We want to negotiate for more time before the delivery. The more months we can delay, the easier it is for us to manage our expenses," acting Chairman Surachai Thansitpong told Bloomberg News. Thai will continue to use aircraft that were scheduled to be replaced by the new A330s.
Goodrich and Rolls-Royce completed formation of their 50/50 engine controls joint venture. Aero Engine Controls will supply controls for Rolls aircraft engines. Goodrich said it will retain the aftermarket products and services business associated with the JV's products and that as part of the transaction it received $100 million in cash, which was used to make a voluntary incremental contribution to its pension plan.
Austrian Airlines has found places in its network for two 767-300ERs made available through a reduction in service to Mumbai and Chicago O'Hare. One will operate on OS's daily Vienna-Tel Aviv service beginning this spring while the other will fly on its six-times-weekly VIE-Dubai service beginning March 1, increasing capacity on the route by 20%. Five additional flights to DXB are operated with A320s or 737-800s.
Wizz Air said it transported 5.9 million passengers in 2008, a 41% increase over 2007. It currently operates 20 A320s and plans to take delivery of seven this year. It is targeting more than 8 million passengers in 2009. Air Canada and Jazz flew 3.28 billion RPMs in December, down 6.6% from the year-ago month. Capacity fell 9.9% to 4.56 billion ASMs, lifting load factor 2.9 points to 81.7%. EasyJet transported 3.1 million passengers in December, up 7.3% from the year-ago month. Load factor rose 3.3 points to 82.3%.
AerCap Holdings announced a facility agreement with Calyon SA and "other banks and financial institutions" outlining terms under which European export credit agencies Coface (France), ECGD (UK) and Euler-Hermes (Germany) may guarantee up to $1.4 billion in financing. AerCap said the figure "represents a significant portion" of the financing required for an A330 order scheduled for delivery in 2009-12. According to AerCap, the loans are to be provided by a syndicate of banks led by Calyon acting as Global Arranger "and are subject to customary ECA requirements."
United Airlines flew 8.2 billion RPMs in December, down 11.5% year-over-year. Capacity fell 12.7% to 10.26 billion ASMs and load factor rose 1.1 points to 79.9%. British Airways flew 9.18 billion RPKs in December, down 3.4% from the year-ago month. Capacity fell 3% to 11.98 billion ASKs, lowering load factor 0.2% to 76.7%. Ryanair transported 4.4 million passengers in December,11% more than in the year-ago month. Load factor was level at 79%.
Southwest Airlines said it has completed the private placement of $400 million in senior secured notes due to mature on Dec. 15, 2011. They will bear interest at 10.5% per year and are secured by an interest in 17 737-700s.
Thai Airways received permission from Airbus to delay the initial payment on six A330s scheduled to be delivered this year, acting President Narongsak Sangapong told Reuters. Payment will be postponed to April from this month, with subsequent payments also pushed back three months. The first of eight ordered A330s is due to arrive in April.
El Al completed the cabin upgrade on the first of four 747-400s scheduled to receive new first, business and economy class seats. Enhancements include a new digital IFE system, in-seat laptop power and a refreshed interior. Remaining aircraft will be completed in April.
DAE Capital signed a sale and leaseback contract with Air New Zealand covering two 777-300ERs. Lease terms are for 12 years and aircraft are due to be delivered in January and March 2011.
Emirates has saved about 10 million liters of fuel and 772 hr. of flight time in the five years since it started working with Airservices Australia to pioneer Flex Tracks. The program involves the use of sophisticated ground and cockpit technology to track live weather and helps pilots chase tailwinds and favorable conditions. It was developed by ASA in December 2003 ( ATW, April 2006).
Frontier Airlines pilots represented by the Frontier Airline Pilots Assn. ratified a labor agreement Monday that will extend wage and benefit concessions through Dec. 11, 2011 ( ATWOnline, May 23, 2008). "This agreement is important because now 100% of our workers have made wage and benefit concessions, a factor that will prove critical in attracting exit financing for our emergence from bankruptcy," Frontier President and CEO Sean Menke said.
The European Commission extended the deadline of its review of Lufthansa's bid to acquire Brussels Airlines parent SN Airholding to Jan. 26 from Jan. 12. The parties notified the EC of the intended transaction in late November ( ATWOnline, Sept. 16, 2008). In a first stage, LH would take 45% of the Belgian carrier through a capital increase of €65 million ($89.4 million) following regulatory clearance. It holds an option to buy the rest from 2011.
Seven US airlines late last month filed suit in the US Court of Appeals seeking to reverse a new FAA rule requiring pilots to take additional rest following nonstop flights longer than 16 hr. The carriers--American Airlines, Continental Airlines, United Airlines, US Airways, JetBlue Airways, Atlas Air Worldwide Holdings and Evergreen International Airlines--claimed that FAA "bypassed the rulemaking process" and "deprived stakeholders with expertise on the underlying safety issues the opportunity to participate in a public comment process," according to press reports.
Air Canada boosted its liquidity with a series of financial agreements in late December. It arranged a five-year, $78 million loan from Calyon New York Branch and Norddeutsche Landesbank Girozentrale and secured a revolving credit facility with the Canadian Imperial Bank of Commerce, which agreed to provide AC with up to C$100 million ($82.9 million) of revolving credit for one year. AC said it drew C$50 million from the facility upon closing. The carrier also concluded a series of agreements for secured financings with General Electric Capital Corp.
Republic Airways flew 783.4 million RPMs in December, up 6.2% from the year-ago month. Capacity rose 4.1% to 1.12 billion ASMs, lifting load factor 1.4 points to 79.75.
Ryanair called a recent amendment to Aer Lingus CEO Dermot Mannion's employee contract awarding him €2.8 million ($3.9 million) if he resigns following a takeover as "indefensible and unprecedented." Irish media revealed the clause over the weekend. In a letter to EI Chairman Colm Barrington, Ryanair CEO Michael O'Leary argued that the contract proves that management has no faith in Aer Lingus's future as an independent airline.
GKN Aerospace yesterday said it will assume ownership and operational control of Airbus's former UK-based wing component and assemblies manufacturing plant at Filton. The move follows European regulatory approval and is projected to double GKN's order book for large civil aircraft structures. The Filton site has 1,500 employees and brings GKN's global workforce to 10,000.
Singapore Airlines is negotiating leave without pay with its cargo pilots, VP-Public Relations Stephen Forshaw told Agence France Presse. Unpaid leave periods could reach 30 months. "The outlook for the freight industry is weak. . .shipping companies are parking vessels and all-cargo airlines are being severely affected," Forshaw told the news agency. He said SIA Cargo "will work cooperatively with its staff and unions" on the matter and that layoffs "will only be considered as a matter of last resort." There are no discussions for unpaid leave with passenger pilots, he noted.
