Alitalia must pay back the €300 million emergency loan from the Italian government, which the European Commission yesterday called "unlawful aid and incompatible with the common market."
World travel is projected to grow an average of 5% per from 2009 through 2028, with China leading at 7.5%, according to Embraer's 20-year market forecast for commercial aircraft. Emerging markets in Latin America and Russia/CIS will grow a projected 6% annually, Asia/Pacific and Africa will grow about 5% and Europe and North American 4%. Some 6,750 jets in the 30/120-seat range will be required, generating sales of $220 billion over the next two decades.
Air France KLM flew 18.41 billion RPKs in October, up 9% from the year-ago month, against an 8% increase in ASKs to 22.65 billion. Load factor rose 0.7 point to 81.3%. United Airlines flew 8.68 billion system RPMs in October, a 9.7% year-over-year decrease. Capacity dropped 9.9% to 10.68 billion ASMs and load factor rose 0.2 point to 81.3%. Alaska Airlines flew 1.42 billion RPMs in October, down 1% year-over-year. Capacity fell 3.7% to 1.92 billion ASMs, lifting load factor 2 points to 73.6%.
United Airlines will operate the second ASPIRE (Asia and South Pacific Initiative to Reduce Emissions) flight on Nov. 14 from Sydney to San Francisco, following in the footsteps of Air New Zealand, which flew "ASPIRE 1" with a 777-200ER two months ago ( ATWOnline, Sept. 15).
AirTran Airways will begin charging $15 for the first checked bag on flights from Dec. 5. It will continue charging $25 for the second checked bag and $50 for each additional bag. Business class and premium loyalty program members will be exempt. AirTran also said it now will allow passengers to upgrade to business class for $49-$99 one way when checking in online 24 hr. prior to departure and onboard the aircraft either before takeoff or at cruising altitude.
FedEx said yesterday that it intends to reduce carbon dioxide emissions from its aircraft fleet by 20% by 2020. It said it already has reduced CO2 emissions by 3.7% per ATM since 2005. Key to the increased efficiency will be the replacement of its 90 727Fs with at least 87 757-200 converted freighters by 2016. The 757s will reduce "fuel consumption up to 36% while providing 20% more payload capacity," it said.
CAE won orders for full-flight simulators and related CAE Simfinity training devices valued at C$63 million ($52.6 million) from American Airlines, Air New Zealand, Suzuyo and Embraer CAE Training Services. AA purchased a CAE 7000 Series 737NG FFS and CAE Simfinity 737NG Integrated Procedures Trainer. ANZ ordered a 787 FFS and a 777-300 FFS as well as a suite of CAE Simfinity training devices for each aircraft type including IPTs and virtual simulators. Suzuyo bought a CAE 7000 Series E-170 FFS and an E-170 IPT. ECTS committed to a CAE 5000 Series Phenom 100/300 FFS.
Cathay Pacific Airways CEO Tony Tyler said the current industry downturn will last longer than the one associated with SARS in 2003 but that there will be little, if any, cross-border consolidation, particularly in Asia, as a result. "It's already looking difficult and the question is how long and how deep it will be," Tyler told ATWOnline at the Australian Airports Assn. national convention in Perth. But relief will not come through consolidation, which did not occur during the 1997 Asian financial crisis or SARS, as many analysts predicted.
Amadeus said Spanair completed migration to its Altea platform and is managing reservations, sales and inventory through its Customer Management Solution.
IBM reached a deal with TAM for technology services, including installation of IT infrastructure and associated help desk and field support. Contract is expected to improve the carrier's server as well as its check-in system and tickets and reservation software.
Tunisair, SITA and Medsoft, a Tunisian IT company, have launched Aviation IT Services Africa, which will provide all information and computer technology services (both administrative and operational) to the airline over the next 10 years using adapted SITA solutions. The venture has launch capital of $3 million and will be held jointly by Tunisair (50%), SITA (49%) and Medsoft (1%). "This is the largest outsourcing deal SITA has ever signed with an airline," CEO Francesco Violante said at the recent Arab Air Carriers Org. meeting in Tunis.
Aer Lingus yesterday said its full-year operating loss will be "closer" to the lower end of the projected €20-€30 million ($25.7-$38.5 million) range forecast previously but that it expects another operating loss in 2009. Operating loss through the first half of 2008 was €22.3 million.
Vought Aircraft Industries, which produces the 787's rear fuselage, yesterday said it was temporarily ceasing operations at its Charleston plant, claiming that Boeing is so far behind on the program that Vought cannot afford to keep the facility running for the remainder of 2008. In a move that highlights the cascading effect of 787 program delays and the recently concluded Boeing machinists' strike, about half the Charleston plant's 400 employees will be out of work at least through year end. Vought said it hopes to restart rear fuselage production in the 2009 first quarter.
American Airlines flew 10.51 billion system RPMs in October, an 8.8% decline from the year-ago month. Capacity fell 7% to 13.3 billion ASMs and load factor was down 1.5 points to 79%. American Eagle flew 641.7 million RPMs, down 15.5%, against a 10.8% fall in ASMs to 921.3 million, dropping load factor 3.9 points to 69.6%. US Airways Group flew 4.89 consolidated RPMs in October, a 3.5% decrease year-over-year, against a 5% fall in ASMs to 6.02 billion. Load factor increased 1.3 points to 81.3%.
News from Travel Technology Update: Farelogix said it is building an open-source front end for its FLX platform that will better meet the needs of travel management companies and enable airlines to merchandise their products more easily. Dubbed Project Hawkeye, it can be used as an off-the-shelf agent desktop or customized and extended to fit a particular customer's business, preferences or workflow needs.The application can be used separately from FLX when it is developed against a user's own travel source connections, Jim Davidson, chief executive officer of Farelogix, said.
Belgian government announced plans to cancel introduction of an airline passenger tax ( ATWOnline, Oct. 20). Assn. of European Airlines Secretary General Ulrich Schulte-Strathaus said the decision "brings a note of sanity to the ticket tax debate."
DHL yesterday pulled the plug on its five-year push to become the "third alternative" to UPS and FedEx in the US express shipping market, announcing that all domestic US services will cease early next year as it focuses exclusively on international operations to/from 15-20 US metropolitan areas. "The basic reason is that the US is a highly concentrated duopoly market and the reality is. . .UPS and FedEx's scale, market reach and brand awareness have made it impossible for us to make it economically viable," DHL Express CEO John Mullen told reporters in a conference call.
Austrian Airlines Group will run out of cash by mid-2009 at the latest if it is unable to find a new owner or secure funding from the Austrian government, which was asked by Lufthansa to take responsibility for a significant portion of AAG's debt in exchange for a German takeover ( ATWOnline, Oct. 28). Analysts from Austrian banks now predict a 20% chance of bankruptcy.
Aer Lingus employees at Dublin, Cork and Shannon represented by SIPTU voted "overwhelmingly" to take industrial action before Dec. 1 in response to EI's proposal to cut 1,245 full-time-equivalent positions ( ATWOnline, Oct. 7). Ireland Minister for Transport Noel Dempsey called on the two sides to restart talks, according to Irish media.
Air France is charging €50 ($63.58) to passengers wishing to reserve economy seats with more legroom on certain transatlantic flights. Seat Plus will be available during online check-in from 30 hr. before departure on service between Paris Charles de Gaulle and Boston, Houston, Los Angeles, Miami, New York JFK, Seattle, San Francisco, Washington Dulles, Montreal and Toronto. AF said it will be extended across its long-haul network during the winter.
Qatar Airways secured $500 million in financing for the purchase of three 777-300ERs. Twelve-year arrangement is with Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Deutsche Bank, Standard Chartered Bank (facility agent and security trustee) and Sumitomo Mitsui Banking Corp. Europe.
ANA announced 787 spare parts support deals with Hamilton Sundstrand and Rockwell Collins under which part and repair equipment ownerships will remain with the manufacturers and ANA will pay only for time in the air. It said it was the "first program of its kind" for the 787. Separately, RC said ANA selected its dispatch program to provide avionics support for 787s under a 10-year, fixed-price-per-flight-hr. deal.
