As expected, merger talks between Qantas and British Airways ended without any agreement just two weeks after the oneworld partners formally confirmed their discussions of a tie-up via a dual-listed company structure. "Despite the potential longer-term benefits for Qantas and BA, the airlines have not been able to come to an agreement over the key terms of the merger at this time," the carriers said in a statement, adding that they will continue to work on their joint business between the UK and Australia.
Sabre Holdings acquired EB2 International, a London-based, supplier of "e-commerce enabling software products, solutions, infrastructure and services to global airlines." Price was not disclosed. Sabre said the acquisition will accelerate its technology plans for its recently launched SabreSonic Customer Sales and Service solution. EB2 and its products will become part of Sabre Airline Solutions.
Lufthansa Technik extended an agreement with the International Bureau of Aviation under which IBA provides LHT with "aircraft transitioning support services" on an as-required basis. Services covered include aircraft transition inspections, technical records audits and aircraft importations.
Chinese carriers have had mixed reactions to CAAC's recent call to "cancel or delay" 2009 aircraft orders as a part of an effort to lift the domestic airline industry out of its current difficulties. CAAC also encouraged carriers to return leased aircraft and to ground or sell older planes, in addition to capacity adjustments, in order to reduce deliveries of foreign-made aircraft ( ATWOnline, Dec. 11).
Delta Air Lines said it expects to record a one-time noncash operating expense of approximately $950 million in the current quarter, which it said is "primarily associated with the issuance of equity awards to substantially all nonmanagement employees of Delta and [Northwest Airlines] in connection with the merger." DL also entered into an agreement with Citigroup Global Markets to sell up to 18.2 million shares of common stock at $0.0001 per share. It said proceeds will be used for "general corporate purposes," including the replacement of funds used to pay merger-related taxes.
Swiss International Air Lines plans to add San Francisco, Abu Dhabi and Beijing to its network as soon as the industry downturn concludes, Director-External Relations & Alliances Ignazio Strano told ATWOnline at last week's Star Alliance board meeting in Chicago. Swiss also is evaluating closer cooperation with fellow Star member Austrian Airlines Group, which will be acquired by Swiss parent Lufthansa.
United Airlines said its fourth-quarter PRASM is expected to rise 3%-4% while CASM excluding fuel will rise 1%-1.5%. CFO Kathryn Mikells told employees in a conference call that "lower fuel prices are clearly good news. . .At United, every dollar per barrel that fuel declines gives us about $60 million in fuel savings per year excluding hedging impacts." UA previously said it expects to record $232 million in cash fuel hedging losses and $138 million in noncash mark-to-market hedging losses in the fourth quarter.
President-elect Barack Obama will nominate Rep. Ray LaHood (R-Ill.) as the next US Secretary of Transportation, according to multiple news reports. LaHood, 63, is retiring from Congress at year end after serving in the House of Representatives since 1995. The appointment of the Republican lawmaker by Democrat Obama is reminiscent of Republican President George Bush's naming Democrat Norman Mineta transportation secretary following the 2000 election. If confirmed, LaHood will oversee the Dept. of Transportation, which includes FAA.
US Air Transport Assn. announced the release of Spec 2000 Chapter 16, Electronic Product and Part Regulatory Documentation, which describes the electronic exchange of FAA's Authorized Release Certificate and has been approved as the method for exchanging From 8130-3 in electronic format.
Turkish Airlines confirmed the addition of five widebodies in the coming months to support the growth of its long-haul operations. Additions comprise three 777-300ERs on wet lease from Jet Airways and two A330-200s that are part of an order placed in 2004. THY currently operates nine A340-500s and five A330-200s. The first two 777-300ERs are scheduled to join the fleet on Dec. 24 and 25 while the A330s are scheduled for February and April delivery. With the addition of the 777s, THY also will start offering first class.
The UK Competition Commission yesterday "confirmed" that it will require BAA to sell both London Gatwick and Stansted, setting the stage for a breakup of the airport operator's control of London's airports for which UK airlines long have pushed.
Australia's Civil Aviation Safety Authority named Cathay Pacific Airways Senior Training Capt. John McCormick as director-aviation safety and CEO effective March 1. He formerly was with Qantas and the Royal Australian Air Force.
Vietnamese LCC Jetstar Pacific parent State Capital Investment Corp., which holds 75.8%, was granted permission by Prime Minister Nguyen Tan Dung to raise money by issuing additional shares to existing holders and to reduce its holding to 51% by selling its right to buy additional shares to other domestic stakeholders, the state Vietnam News Agency reported. Qantas holds 18% of the carrier and is allowed to take up to 30% ( ATWOnline, May 26).
Airbus has no plans to provide loans to customers, contrary to published reports, a spokesperson told Dow Jones. "Backstop financing is standard industry practice and is agreed at the time of contract. This happens years in advance of aircraft deliveries and is not the same thing as providing customers with billions in loans, which Airbus does not go into," the spokesperson said.
Six major US network carriers (American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines and US Airways) reported an aggregate third-quarter operating margin of -5.8%, the fourth consecutive quarterly loss and a reversal from the 8.8% achieved in the year-ago period, the US Dept. of Transportation said. Delta reported a positive operating margin of 2.2% while the rest were in the red.
Southwest Airlines yesterday added a link to WestJet's booking portal to southwest.com, which SWA called "an important first step forward in the relationship" between the LCCs that will include the announcement of codeshare flight schedules by late next year ( ATWOnline, July 9).
Russia's Ministry of Transport is working out a mechanism for distributing over the next two years RUB7.5 billion ($270.1 million) in subsidies to airlines serving the country's far east. "Our goal is to introduce a uniform system of subsidizing economy-class fares on long-haul routes to and from these regions," Transport Minister Igor Levitin explained. At present, the state provides subsidies only to particular categories of passengers, such as those in the military, pensioners or students.
US Air Transport Assn. said American carriers will transport 9% fewer passengers during the Dec. 18-Jan. 7 holiday period than in the prior year, although a 9% year-over-year decline in seats will mean "full or near-full flights throughout the holiday." ATA is forecasting some 2 million passengers per day during the period and 90% loads on the busiest days (Dec. 19 and Dec. 27).
Aer Arann said that up to 30 positions, "primarily" flight and cabin crew, that were scheduled to be cut now will be retained with the creation of an Isle of Man base. RE will launch a twice-weekly London City-IOM service on Jan. 19. The carrier still plans to eliminate 70 jobs ( ATWOnline, Oct. 21). The IOM base, which will include one ATR 72-500, will focus on RE's contract lease business. It also announced the Jan.
Amadeus and Etihad Airways unveiled Amadeus Gulf, a joint venture designed to provide a GDS to travel companies and agents in UAE, Bahrain and Oman. Etihad will hold 51% of the company, which CEO James Hogan said "signals Etihad's growing ambitions in the travel industry."
Japan Airlines said yesterday that it will operate a 747-300 test flight from Tokyo Haneda on Jan. 30 in conjunction with Boeing, Pratt & Whitney and Honeywell. It will use biofuel primarily derived from camelina plants. A blend of 50% biofuel and 50% traditional jet fuel will be tested in one of the aircraft's four JT9D engines. The biofuel will be a mixture of three second-generation feedstocks: Camelina (84%), jatropha (under 16%) and algae (under 1%). The flight will be the first using fuel derived from camelina and the first to use a combination of three feedstocks.
Delta Air Lines said it will offer in January a voluntary severance program in line with its recent decision to cut capacity 6%-8% next year ( ATWOnline, Dec. 3) "These capacity reductions will reduce the number of people needed to operate the airline," CEO Richard Anderson and President Ed Bastian told employees in a memo.
AeroTech Services said Brussels Airlines purchased its US FAA-verified modification aimed at reducing fuel costs and greenhouse gas emissions on 737s. Technology increases an aircraft's lift-to-drag ratio by expanding the wing area and camber and lengthening the chord.
