Denmark's Cimber Air acquired bankrupt Sterling Airlines' operating certificate, slots and brand, among other assets, and plans to relaunch the carrier and extend its European presence. Purchase does not include aircraft, leases of which will be negotiated with present owners. Cimber plans to put two 737s back into service in January and 6-8 in the long term. It will operate the airline under the Sterling name and said it hopes to rehire a portion of Sterling's former workforce.
GE Capital estimates a pre-tax exposure of $300-$550 million for megalessor GECAS owing to the anticipated traffic downturn in 2009. In an investor presentation this week, GE Capital estimated that a 1%-2% decline in global airline traffic would result in the smaller exposure, while the "downside case" assumes a 3% decline in RPKs and the liquidation of two airlines, resulting in the higher figure. GECAS represents 7% of GE Capital's assets. Its aircraft portfolio is worth $47 billion and it has earned $6 billion since 2001, according to the parent.
Jet Airways said that all employees earning a gross salary of more than INR75,000 ($1,473.15) per month will take a "graduated wage cut" over the next 12 months as part of an effort "to cover the challenges faced. . .due to the current economic slowdown worldwide." Pilot givebacks will comprise a wage cut and allowance rationalization. "Top management" has taken a voluntary 25% pay cut effective this month ( ATWOnline Oct. 20).
Tianjin-based Okay Airways will shut down for one month owing to conflicts between airline management and controlling stakeholder Juneyao Group, which sent a letter to CAAC claiming it no longer is able to guarantee Okay's operational safety. The carrier will suspend operations from Dec. 15 to Jan. 15, as instructed by CAAC, which will send staff to audit Okay's safety standards. It has delayed taking delivery of its second MA60 ( ATWOnline, Oct. 21).
US Air Transport Assn. named Delta Air Lines GM-Security Technology, Compliance and Facilitation Eric Thacker as director-security operations responsible for daily coordination with the Transportation Security Administration, effective immediately. It also appointed DL Director-Government Affairs Sametta Barnett as MD-security effective next month.
ATWOnline webinar "How IT can help airlines meet the environmental regulatory burden" featured experts discussing how carriers will need to upgrade information technology systems to meet rigorous monitoring, reporting and verification requirements related to new environmental regulations, particularly the EU emissions trading scheme set to include airlines from 2012.
Assn. of European Airlines Secretary General Ulrich Schulte-Strathaus is forecasting that AEA's 35 members collectively will post a meager net profit of €300 million ($379.5 million) for 2008, down from €3.7 billion in 2007 and the €1.1-€1.8 billion forecast earlier this year, and a heavy loss in 2009.
British Airways flew 8.71 billion RPKs in November, down 5.9% from the year-ago month. Capacity fell 3.1% to 11.72 billion ASKs and load factor dropped 2.2 points to 74.4%. American Airlines flew 9.53 billion system RPMs in November, down 14.5% year-over-year, against a 9.3% drop in capacity to 12.45 billion ASMs. Load factor was down 4.6 points to 76.6%. American Eagle flew 568.1 million RPMs, down 21.5%, while capacity fell 15.9% to 844.2 million ASMs. Load factor dropped 4.8 points to 67.3%.
Aircell announced that its Gogo inflight Internet service is available to passengers with Wi-Fi enabled devices on select Virgin America flights. Service launched as a beta test on a single aircraft Nov. 22 ( ATWOnline, Nov. 26) and was offered free over the Thanksgiving holiday. With the official commercial launch, pricing will be set at $12.95 for flights over 3 hr. and $9.95 for flights of 3 hr. or less.
Boeing engineering and technical employees represented by the Society of Professional Engineering Employees in Aerospace voted to ratify two four-year collective bargaining agreements covering nearly 21,000 employees in Washington, Oregon, California and Utah, the manufacturer announced. The deal was reached last month ( ATWOnline, Nov. 17). Both SPEEA and the machinists represented by the International Assn.
Travelport GDS concluded a full-content, multiyear agreement with TAP Portugal providing all Galileo- and Worldspan-connected travel agents with access to TAP's published fares and inventory, including Web-only fares. Travelport and TAP also agreed on a joint sales program to strengthen both parties in key markets across Africa as well as in France, Italy and Brazil.
Mesa Air Group finalized a deal with Fokker Services for the sale, management and repair of its Dash 8-200 spare parts inventories. Fokker will pay Mesa approximately $3 million for the parts and provide inventory management and repair services for 16 Dash 8-200s, while Mesa will receive about $1.6 million in deferred monthly fee payments.
Nordic Aviation Capital and KIRK Kapital announced a sale and leaseback deal with AMR Leasing Corp. covering 39 ATR 72s operated by San Juan-based Executive Airlines, which flies as American Eagle. NAC and KIRK, both based in Denmark, established a joint venture called NK Aviation Ltd., Ireland that will lease the aircraft back to Executive. AMR said the deal was worth approximately $200 million, according to press reports.
Aeroports de Paris and Schiphol Group obtained all approvals and authorizations required to complete the 8% cross-shareholding announced in October ( ATWOnline, Oct. 22). Schiphol acquired an 8% stake in ADP from the French government for €530 million ($671 million), or €67 per share. ADP spent €370 million an 8% stake in Schiphol through its subscription to a reserved capital increase. The airport operators' initial cooperation agreement will last for 12 years.
TAM's Technological Center in Sao Carlos received EASA 145 certification for MRO services including C and D checks on A321s and A330s. The center also has been approved for A319s, A320s and F100s.
Qantas and Virgin Blue welcomed the Australian government's draft National Aviation Policy Statement or "Green Paper" as "forward-looking and balanced." The new policy allows a single overseas interest to take up to a 49% stake in Qantas, up from 25%. The government also said it will relaunch its effort to select a site for a new Sydney airport well away from the so-called "Sydney basin."
Alitalia's relaunch under the ownership of the Compagnia Aerea Italia investor group will be delayed until "after Christmas vacations to avoid the most congested holiday period," Italian Minister of Productive Activities Claudio Scajola told reporters in Rome, according to Reuters. "I don't see any major problems if it becomes operational after 10-15 days. With all the problems we've had, this is definitely the least of them," he said. CAI originally was supposed to take control of AZ on Nov. 30 but now will assume ownership on Dec.
Airbus donated $6 million to the Smithsonian National Air and Space Museum to help cover Phase 2 construction of the Udvar-Hazy Center near Washington Dulles. The new buildings will be dedicated to behind-the-scenes care and storage of the Smithsonian's collection of historic aircraft, spacecraft, related artifacts and archival materials.
Air New Zealand is allowing economy passengers to purchase an otherwise empty seat for NZ$75 ($41.12) per sector. Called a "comfort seat," it has been available for the past month at check-in for flights from Auckland to Los Angeles and San Francisco and was added to Vancouver service last week. GM-International Airline Ed Sims said response has been enthusiastic despite the fact that ANZ has "not marketed the product as yet." Inbound availability is expected soon, with the entire long-haul network to follow.
China Southern Airlines last week received notice that China's Ministry of Finance agreed to inject CNY3 billion ($438.9 million) in the carrier's holding company, it said in a filing with the Stock Exchange of Hong Kong. China's beleaguered national carriers have been appealing to the government for aid ( ATWOnline, Oct. 31). Trading in CZ shares was suspended Nov. 26-27.
Saudi Arabian LCC Sama named Bruce Ashby CEO, replacing Andrew Cowen. Ashby formerly was president and CEO of IndiGo and US Airways executive VP-marketing and planning.
Mesa Air Group announced a settlement with the former controlling shareholder of Aloha Airlines, Yucaipa Cos., ending the latter's lawsuit against the go!
Tiger Airways and Tiger Airways Australia parent Tiger Aviation posted a S$9.9 million ($6.5 million) profit in the fiscal year ended March 31, the Centre for Asia Pacific Aviation reported. Result compares to a S$24.7 million loss the previous year. The Singapore-based mainline reported a S$37.8 million profit ( ATWOnline, Aug. 11), while the new Australian subsidiary posted a A$12.2 million ($8 million) operating loss.
WestJet yesterday began offering passengers a "blanket and pillow kit" for C$7 ($5.64). Passengers may keep the pillow and fleece blanket or continue to use WestJet's reusable blankets for free during flights.
Volvo Aero Services Corp. reached a five-year preferred supplier agreement with Ethiopian Airlines to position more than $20 million in engine material to support MRO activities. In exchange, ET will provide VAS with MRO support on select engines and material.
