More than 80 people gathered in Queretaro on May 16 to celebrate the opening of a new MRO facility for CFM56-5As, -5Bs and -7Bs, a joint venture between Snecma Services of SAFRAN Group and Turborreactores SA de CV, aka ITR, of ITP Group. SAFRAN CEO Jean-Paul Herteman and ITR Chairman Jose-Manuel Manzanedo Diaz were among the executives who spoke about partnerships, engines and México.
EXORBITANT FUEL PRICES, a decline in consumer and business spending, a reduction in new finished goods manufacturing, an increase in performance-based service contracts and product commoditization have placed enormous pressures on A&D companies to continue growing profit margins while at the same time maintaining increased service demands and expectations.
Severely affected by soaring fuel costs, US airlines staggered out of the starting gate in 2008, with the nation's 10 largest carriers posting a cumulative net loss of $11.76 billion. The US industry's recovery--perhaps the story in global air transport circles last year--rather abruptly has become a thing of the past.
The IT revolution, which swept through ticketing and distribution in a decade, is making steady progress on a much tougher challenge: Tying together maintenance planners, techs and their suppliers. Air Canada Maintenance will replace 12 legacy maintenance systems with six modules of Mxi software by early 2010, according to ACM Project Director Steve Bogie. The carrier chose Mxi for several reasons: Solving current challenges while preparing for a more automated future and because Web-based Mxi can be deployed to Air Canada stations around the world.
Boeing will manage a segment of SAS Technical Services' expendable spare parts inventory including gaskets, nuts and bolts under an IMM maintenance agreement announced yesterday. Boeing will handle invoicing and leverage pricing through buying power. Deal is expected to advance parts availability, reduce operating costs and enhance service.
ARINC said it reached agreements with three Latin American carriers and a ground handling company from that region to provide its AviNet Mail message service offering Type B, e-mail, ICAO and fax capabilities.
Austrian government, which holds 38% of Austrian Airlines Group via state holding company OEIAG, demanded that the carrier determine whether it will continue as a standalone enterprise or look to align with a strategic partner such as Lufthansa or Air France KLM ( ATWOnline, May 16). A survival plan should be presented this summer, or by autumn at the latest. AAG, which has debts of close to €1 billion, has been hit by high fuel prices, a relatively old fleet (average 9.2 years) and high employee costs.
Air One will outsource its international cargo business to Cargo Counts, a subsidiary of Lufthansa Cargo, as part of a three-year Total Cargo Management agreement encompassing sales, marketing, freight handling, accounting, IT and controlling as well as flight data, yield and capacity management. Collaboration begins June 14 with the launch of AP's five-times-weekly Milan Malpensa-Boston service and subsequent six-times-weekly MXP-Chicago O'Hare flights aboard A330-200s.
Mesa Air Group will file for bankruptcy by July 20 if Delta Air Lines is allowed to terminate its service agreement with the Phoenix-based regional, according to a report by the Associated Press. "We are prepared to file for bankruptcy," Mesa President and COO Michael Lotz reportedly told a US district judge at an Atlanta hearing Tuesday.
Former EADS co-CEO Noel Forgeard was detained by French police yesterday in relation to the ongoing probe into insider trading allegations regarding the June 2006 A380 delay announcement.
Delta Air Lines flight attendants rejected representation by the Assn. of Flight Attendants, with more than 60% of eligible cabin staff in favor of continuing their "direct relationship" with the carrier, Delta announced.
Dnata Cargo, Kanoo and SDV International Logistics yesterday entered into a JV to bolster logistics services in the UAE. Kanoo and Dnata will split 51% of the venture and 49% will be owned by SDV.
Iberia Maintenance signed a long-term agreement with DHL to overhaul more than 80 RB211-535C37 engines powering 34 aircraft operated by DHL Air and European Air Transport.
Italian administrative court ordered that a new tender be organized for Volare within 15 days, confirming that Alitalia's 2006 acquisition of the LCC violated procedure, Reuters reported. AZ rival Air One also wanted Volare and brought the case to court ( ATWOnline, June 6, 2006).
Wataniya Airways is the name of a new short-haul premium carrier based in Kuwait that will launch service next January and offer point-to-point flights to Persian Gulf and Middle East destinations. It initially will operate two A320s with 122 seats and what it claimed will be the "lowest seat density of an A320 of any scheduled airline in the world."
Regional Express (Rex) of Australia reported an A$8.2 million ($7.9 million) pre-tax profit in the fiscal third quarter ended March 31, up 7.9% from the A$7.6 million earned in the year-ago period. Executive Chairman Lim Kim Hai said Australian regional aviation "encountered a veritable tsunami in the past few months" with rising oil prices, economic difficulties and a pilot shortage ( ATWOnline, May 8). Lim said Rex "performed beyond our expectations" in part because it remains debt free.
SAS Scandinavian Airlines said it requested a 10% price reduction on goods and services it receives from its suppliers as part of its Profit 2008 program ( ATWOnline, April 30).
European Parliament's Environment Committee voted on draft amendments designed to toughen the current proposals to include aviation in the EU's emissions trading scheme.
Air Berlin will reduce its Dusseldorf-Shanghai service to thrice-weekly from five-times-weekly from the end of June owing to a "drop in demand for the Chinese market and the high fuel costs," CEO Joachim Hunold said. Separately, AB announced the sale of its Dusseldorf-based "LTU plus" service center to former LTU partners Jurgen Marbach (55%) and Rudolf Worhl (45%) for an undisclosed sum. The center employs 65 and provides services to AB under a two-year deal.
Republic Airways flew 874.4 million RPMs in April, a 28.1% increase over the year-ago month. Capacity climbed 28.5% to 1.15 billion ASMs and load factor slipped 0.3 point to 75.9%.
News from Travel Technology Update: Of all the actions taken by the airlines to defend against high fuel costs, none has brought the gravity of the fuel crisis home to consumers quite like American Airlines' plan to charge most coach passengers $15 each way for the first checked bag. The high fuel costs are "the biggest threat to the world's airlines ever," Henry Harteveldt, vice president and principal analyst at Forrester Research, said. Even in the dark days following 9/11, "we knew demand would return."
SITA reached agreement with Bogota's El Dorado International to provide its AirportConnect Open technology for agent and self-service passenger check-in. CUTE system allows passengers to check in at any kiosk or desk. Investment is part of a $650 million expansion program at BOG.
