US Airways will remove IFE from domestic flights this fall in order to save approximately $10 million per year, VP-Sales and Marketing Travis Christ told Bloomberg News. "We simply can't afford to do it anymore," he said. Bloomberg reported that video systems aboard US's A320s will be shut down Nov. 1 and removed from aircraft during maintenance. It said passenger demand has dropped (US charges $5 for headsets) and the IFE systems can add some 500 lb. to each aircraft.
Chinese carriers were dealt another blow to their bottom lines this month as authorities decided to raise the jet fuel price by CNY720 ($104.83) per ton.
Airline groups around the world continued to condemn the European Parliament's decision to include both EU and non-EU carriers in an emissions trading scheme from 2012 ( ATWOnline, July 9). International Air Carrier Assn. DG Sylviane Lust said the decision "creates the worst of all worlds--even more financial pressure on airlines without any proven benefits for the environment," while European Regions Airline Assn.
Jat Airways launched twice-weekly Belgrade-Pula flights last week aboard an ATR 72, reestablishing air service to Croatia after 17 years. Service will continue to Aug. 21, and Jat said it is "prepared" to extend it if it remains popular. Separately, Jat transported 141,000 passengers in June, up 11% year-over-year, as load factor rose 4 points to a record 65%. Six-month passenger numbers climbed 9% to 578,781.
Air New Zealand will freeze senior executive salaries and has "challenged each division to identify opportunities to review nonessential activity and reduce employee numbers through attrition and nonreplacement of roles that are not operationally critical," CEO Rob Fyfe told Bloomberg News.
Spirit AeroSystems Europe said it won deals with Airbus to design and produce a wing structure for the A350 XWB program and reached a $1.7 billion extension on its existing contract to supply leading and trailing edges and other wing structures on the A319, A320 and A321 assembled in the UK from 2011 to 2015. The A350 structure will comprise 50% carbon fiber and measure 32 m. in length. Work will take place at facilities in Prestwick, Kinston, N.C., and Subang outside Kuala Lumpur.
As expected, and much to the disappointment of airlines, the European Parliament yesterday adopted a compromise agreement with the European Council on including aviation in the EU Emissions Trading System beginning Jan. 1, 2012.
Air France KLM flew 18.21 billion RPKs in June, a 2.6% increase from the year-ago month. Capacity climbed 4.1% to 22.34 billion ASKs and load factor slipped 1.2 points to 81.5%. It said it expects capacity during the winter schedule and next summer to grow approximately 2%. British Airways flew 9.71 billion RPKs in June, down 3.7% year-over-year. Capacity rose 1.2% to 12.66 billion ASKs, lowering load factor 3.8 points to 76.7%.
Southwest Airlines and WestJet agreed yesterday to form a "codeshare partnership" by late 2009 that would link the networks of the two LCCs and allow passengers flying on US domestic-only SWA to connect to Calgary-based WS's network throughout Canada.
Oxford Aviation Academy announced the acquisition of Dublin-based Parc Aviation, which supplies flight crew on medium/long-term contracts to airlines. The acquisition is backed by STAR Capital, OAA's majority shareholder. Financial terms were not disclosed.
Virgin America, as expected, appealed a decision by the US Dept. of Transportation's Office of Airline Information denying its request for confidential treatment of its financial, traffic and origin and destination survey data filed with DOT's Bureau of Transportation Statistics ( ATWOnline, June 27). Republic Airlines and Shuttle America also appealed the decision denying confidential treatment.
Gol and VRG parent GOL Linhas Aereas Inteligentes said it expects to report a negative pre-tax margin of 17%-19% for the recently completed second quarter and a negative operating margin of 21%-23%. The company reported a BRL35.4 million ($22.1 million) loss in the second quarter of 2007 and a BRL3.5 million deficit in the first quarter of 2008. Second-quarter capacity is estimated to have risen 23%, down from the forecast 25%, and load factor is expected to be 64%-65%, up from the forecast 61%-63% but down from the year-ago period's 66%.
Comair, Delta Air Lines' regional subsidiary, expects to ground 14 aircraft and cut 8% of its workforce this fall, according to a notice to employees cited by the Associated Press. The staff cuts will include 300 pilot and 220 cabin staff positions. DL announced wide-ranging cuts in March ( ATWOnline, March 19).
Lufthansa Systems signed a contract with EgyptAir for implementation of its SchedConnect codeshare management solution. Scheduled to be introduced in a few weeks, the technology is expected to help fulfill Star Alliance membership requirements ( ATWOnline, April 4). Features include schedule synchronization and codeshare integration.
Austrian Airlines yesterday reached agreement with AeroLogic, the Lufthansa/DHL cargo joint venture, to train its pilots for type ratings for the 777-200F.
Ethiopian Airlines and privately held Togolese startup ASKY signed an MOU to form a strategic partnership covering marketing, operations, maintenance, training, financing and management contracts, ET announced. It will hold a 20% stake in the startup, which is expected to launch services in December with eight aircraft likely to be leased from ET. "Ethiopian has been engaged in the process of identifying a hub in West Africa in order to serve the region better and connecting it to the rest of the world," CEO Girma Wake said.
LAN Cargo was approved by the Colombian government to launch an affiliate cargo airline there with plans to initiate services in the first quarter of 2009. Noting that Colombia is "the largest air cargo market in Latin America in terms of exports to the US," LAN earlier this year applied for the right to launch a new airline ( ATWOnline, May 13). It said yesterday that the carrier will provide airfreight services between Colombia and the US using an undisclosed number of 767-300 freighters.
Lufthansa cancelled 641 flights scheduled to be operated yesterday by its CityLine and Eurowings subsidiaries, an LH spokesperson told ATWOnline, as a result of a 24-hr. pilot strike that started late Sunday. The work action followed a breakdown in talks between the Vereinigung Cockpit union and the airline. Approximately 1,000 pilots took part in the strike, which affected passengers throughout Germany, including those at LH's main hubs of Frankfurt and Munich. The airline said further delays are possible this morning as it works to bring its schedule back to normal.
Alaska Airlines announced a partnership with Frontier Alaska under which customers of the commuter airline will have access to AS's loyalty program and the option to book through travel to certain markets from this fall.
News from Travel Technology Update: Skyrocketing fuel costs and the increasing popularity of the green movement are intersecting to create new interest in an old form of transportation: rail. In the U.S., ridership on Amtrak is breaking records. The House of Representatives has passed and sent H.R. 6003, a bill that authorizes $14.9 billion over 2009 to 2013 for rail programs administered by Amtrak, the states and the Department of Transportation, to the Senate.
JetBlue Airways flew 2.3 billion RPMs in June, up 2.3% year-over-year, against a 3.2% increase in capacity to 2.77 billion ASMs. Load factor fell 0.7 point to 83.1%. Gol and VRG flew a combined 2.23 billion RPKs in June, an 18.4% increase over the year-ago month. Capacity rose 19.6% to 3.42 billion ASKs and load factor dropped 0.6 point to 65.4%. EasyJet transported 4.1 million passengers in June, up 19.5% year-over-year, while load factor rose 0.1 point to 86.9%.
Aeroflot Cargo was granted a license last week from the Chinese government allowing it to transport dangerous goods into the nation. It currently operates both freighter and passenger flights to Beijing and Shanghai. It also is allowed to transport dangerous goods to the UK, Germany, France, Finland, Japan, South Korea and Hong Kong.
Wataniya Airways, a Kuwaiti startup, announced receipt of its AOC from the national Directorate General of Aviation. The premium carrier expects to launch service in January with two 122-seat A320s ( ATWOnline, May 28).
Sensis Corp. announced that its Aerobahn Service is now operational with Continental Airlines at Houston Intercontinental. Sensis said the Web-based service provides CO with "real-time situational awareness into their hub operation at IAH by integrating flight schedule and operational data with Sensis' Multistatic Dependent Surveillance ground surveillance." CO already uses Aerobahn at Newark.
