US Airways yesterday unveiled a range of initiatives designed to negotiate what Chairman and CEO Doug Parker called "this new and challenging environment," including introduction of a $15 charge for the first piece of checked baggage, aircraft returns and up to 1,700 job cuts. Similar to its domestic rivals, US is facing a fiscal crunch as a result of soaring fuel costs. It said its 2008 fuel expense will increase by $1.9 billion from the previous year to 39% of the mainline and regional total. It lost $236 million in the first quarter.
ATA Airlines, which shut down early last month ( ATWOnline, April 4), is suing FedEx Corp., saying its decision to cancel a contract for military charter operations forced ATA into bankruptcy, the Associated Press reported. The charter operation was a key component of ATA's business and generated some $400 million in annual revenue.
The European Commission this week confirmed the launch of an in-depth investigation into the Italian government's €300 million ($465 million) emergency bridge loan to Alitalia, granted in April under a specific decree-law. A second decree-law on May 27 allowed AZ to incorporate that sum into its equity capital, enabling it to avoid bankruptcy proceedings and permit its possible privatization ( ATWOnline, June 3).
American Airlines flew 11.76 billion system RPMs in May, down 1.1% from the year-ago month. Capacity fell at the same rate to 14.39 billion ASMs and load factor was level at 81.7%. American Eagle flew 726.6 million RPMs, down 9.5%, against a 6.5% decline in capacity to 994.1 million ASMs. Load factor dropped 2.4 points to 73.1%. Continental Airlines said May consolidated unit revenue rose an estimated 6.5%-7.5% year-over-year. It flew 8.28 billion consolidated RPMs, up 1.8%, against a 2.2% increase in capacity to 10.2 billion ASMs. Load factor slid 0.3 point to 81.2%.
United Airlines yesterday joined American Airlines and US Airways (see story above) in announcing that it will charge $15 to check a first bag on North American flights. The fee will apply for trips from Aug. 18 for tickets purchased from today for flights within the US and to/from Canada, Puerto Rico and the US Virgin Islands. First and business class passengers will be exempt as will UA and Star Alliance "premier status" members. The carrier estimated that the fee and $25 it is charging for a second checked bag will generate $275 million in revenue annually.
Peru's Ministry of Transport and Communications suspended all scheduled services operated by domestic carrier Aerocondor using its fleet of four 737-200s owing to safety concerns. It noted that earlier this week one of the -200s "had a serious problem with a turbine" that prevented takeoff and that this was just the latest in a string of incidents involving the carrier's -200s. The airline issued a statement saying that the "rise in the price of the fuel" led it to ground its 737-200 fleet on a "temporary" basis.
Transaero announced that Alexander Pleshakov was reelected chairman and Olga Pleshakova was reelected GD. AirTran Airways parent AirTran Holdings promoted VP-Finance and Treasurer Arne Haak to senior VP-finance, treasurer and CFO. Haak joined AirTran in 1999 and has held his current job since January 2006. He succeeds Stan Gadek, who left to take over as CEO of Sun Country Airlines ( ATWOnline, March 6)..
United Airlines and the Assn. of Flight Attendants announced an agreement offering voluntary severance to up to 600 cabin staff. The "one-time opportunity" will be available to flight attendants aged at least 45 who have a minimum 15 years of service with the company as of Aug. 1.
The death toll from Tuesday's Sudan Airways A310 runway excursion accident in Khartoum stands at 30, many fewer than originally feared, with most passengers able to escape the aircraft before it was consumed by fire.
Japan Airlines will use the introduction of its 777-300ER on routes to the US to unveil its latest first and business class seats. It will launch the JAL Suite in first class and the JAL Shell Flat Neo Seat in business starting with its Tokyo-New York JFK route thrice-weekly from Aug. 1 and daily from Aug. 11. San Francisco will come online Sept. 13 and Chicago O'Hare and Los Angeles from April 1. The -300ER will replace 747-400s, cutting fuel burn by 20%.
Boeing yesterday said it finalized a deal to acquire Vought Aircraft Industries' interest in Global Aeronautica, a 787 fuselage subassembly facility in South Carolina. Contract makes GA a 50/50 joint venture between Boeing and Alenia North America. Financial terms were not disclosed.
Brussels Cargo, the cargo division of Brussels Airlines, launched a new daylight courier service to and from Brussels that will be marketed by Globe Air Cargo. It initially is serving Athens, Barcelona, Lisbon, Nice, Madrid and Warsaw carrying pieces of up to 32 kg. each.
While stressing it supports "the principle" of the inclusion of aviation in the EU emissions trading scheme, Air France lambasted proposals by a European Parliament committee as unfair, discriminatory and potentially damaging to the financial health of European carriers.
Dublin Airport Authority awarded Siemens a €40 million ($63 million) contract to design and build a baggage handling system for Dublin Airport's new passenger terminal T2. The project is scheduled to open in spring 2010. DUB's €395 million T2 will be capable of handling up to 15 million passengers per year.
US National Transportation Safety Board said a regional jet operated by Pinnacle Airlines overran a runway at Cherry Capital Airport in Traverse City, Mich., in April 2007 because the pilots chose to land on a "contaminated" (snowy) runway without performing the required landing distance calculations. No injuries resulted from the overrun.
US FAA signed a memorandum of agreement yesterday with VLJ operator DayJet Corp. to begin a five-year "phased implementation of proven NextGen technologies throughout Florida" in collaboration with the Florida Dept. of Transportation Aviation Office and Embry-Riddle Aeronautical University. The agreement creates a partnership to develop procedures and collect data for flight operations to be applied to commercial aviation when the US transitions to a satellite-based ATC system, FAA said.
Aviareps will provide Delta Air Lines with ticketing services and sales for Malaga-New York JFK service. DL began the new route on June 4 and will operate it four-times-weekly.
Indian airlines have been late in making payments for jet fuel, reported India's Economic Times, citing a top executive with Indian Oil Corp. Kingfisher Airlines and Jet Airways are among several carriers "delaying payments in spite of seeking a very comfortable line of credit and huge discounts," the IOC executive told the paper. Kingfisher reportedly built up "arrears" on a line of credit earlier this year and was forced to switch to a "cash and carry" model of payment in which it pays immediately for fuel it needs.
JetBlue Airways subsidiary LiveTV yesterday reached an agreement to purchase Verizon's Airfone network, a move that the company said will "anchor [its] inflight e-mail and messaging platform." Financial terms of the purchase were not disclosed. LiveTV plans to enhance and expand Airfone's Kiteline service, an inflight e-mail and messaging service targeted at the commercial aviation market. JetBlue already offers inflight e-mail on a single A320 on a trial basis via the Airfone network.
AirBridgeCargo Airlines was awarded an Air Operator's Certificate by Transport Canada. The airline said this is the "first step toward any airline gaining permission to operate to and from Canada."
Amadeus said it reached an agreement with Singapore Airlines to replace the carrier's existing passenger service systems with its Altea Customer Management Solution. Technology is expected to enhance sales and reservations as well as global inventory management and departure control operations. Decision follows a comprehensive review of Amadeus's experience in migrating from legacy applications and platforms to newer technologies.
CAE said it acquired Sabena Flight Academy for an undisclosed amount of cash with the aim of expanding its pilot training capability. It will gain control of Sabena's training center in Brussels equipped with FFSs for A320s, A330s, A340s, 737 Classics and 737NGs. It also will take over Sabena's pilot training school in Mesa, Ariz., equipped with 40 aircraft.
Air New Zealand said its fuel savings initiative is on track to see the airline reduce its CO2 emissions by more than 100,000 tonnes. GM-Airline Operations David Morgan told media in Auckland that "so far our flight operations program has delivered 91,000 tonnes in reduced carbon emissions in just over three years.
