AerCap Holdings, the Dutch lessor, will lease 10 new A330-200s to Aeroflot for 9-10-year periods with deliveries beginning in November and extending to April 2010. AerCap has an additional 20 A330s on order with Airbus but has not yet announced placement.
Continental Airlines, in partnership with Boeing and GE Aviation, will conduct a biofuels demonstration flight in the first half of 2009 using one of its 737NGs. It will be the first such flight in North America and the third overall. Virgin Atlantic Airways carried out a demonstration flight last month on a 747-400 with one engine partially powered by a blend of babassu oil and coconut oil ( ATWOnline, Feb. 26) and Air New Zealand will conduct one later this year with an undisclosed fuel mix.
Southwest Airlines yesterday returned to service 34 of 38 737 Classics it temporarily grounded Wednesday for inspection and operated a normal schedule, saying the other four aircraft will need "surface repairs" expected to be completed by this weekend.
Air New Zealand is staying true to the philosophy that earned it Air Transport World's 2008 Passenger Service Award and embracing more product upgrades designed to snare premium customers, rather than cost cuts, to combat soaring fuel prices. Speaking to ATWOnline in Auckland, CEO Rob Fyfe reasoned, "In a cross-country race, the best time to pass the guy ahead is on the hill. And we are fighting fit and in great shape and we should look at this time to pass our competitors."
TAM suffered precipitous drops in full-year unit revenue and yield in 2007, according to select operating indictors released this week. Yield declined 13.6% year-over-year to BRL25.3 cents and RASK fell 17.1% to BRL17.08 cents, according to US GAAP. Load factor dropped 3.5 points to 70.4% while unit cost improved 7.6% to BRL16.22 cents, or 5.8% to BRL10.89 cents excluding fuel. On domestic services, yield fell 19.4% to BRL23.42 cents and unit revenue declined 22% to BRL15.51 cents. Internationally, yield was down 17% to BRL17.66 cents and RASK plunged 23.3% to BRL12.44 cents.
IATA this week condemned UK CAA's decision to allow significant charge increases at London Heathrow and Gatwick ( ATWOnline, March 12), saying that "failure is the only word to describe the CAA's decision." IATA claimed that BAA generated an operating profit of 35% at LHR, producing a net return on invested capital of 15.3% that was twice the level of the cost of capital set by CAA.
Flight Safety Foundation announced a partnership with Eurocontrol aimed at strengthening cooperation between the two organizations in order to reduce safety risks.
US Airways and International Assn. of Machinists announced a tentative labor agreement that will move all US MRO and related employees under one labor contract. Pre-merger America West Airlines staff will move to the higher pay scales of pre-merger US employees and the contract also "modifies the existing East [US] agreement in ways that are mutually beneficial to IAM mechanic-and-related employees and the company," US said. Contract covers approximately 800 West and 2,500 East employees and, if ratified by IAM membership, will become amendable on Dec. 31, 2011.
EasyJet launched easyJet Plus, a "membership card" that offers passengers free access to its so-called Speedy Boarding or priority boarding without a reservation. At selected airports, the card also will allow access to priority check-in service. EasyJet is expanding its "Speedy Boarding Plus" offering, a combination of priority boarding with a dedicated check-in desk, throughout its network. It currently is available at some 30 airports. EasyJet Plus costs £75 ($150.63) for one year if purchased before April 30 and £100 thereafter.
JP Morgan projected a collective full-year loss of $4 billion-$9 billion for US airlines yesterday. In a research note, analyst Jamie Baker forecast continuing high oil prices and declining demand and warned, "We don't believe the industry can move quickly enough to put much of dent in forecasted losses." He projected a decline in demand of 6%-7% owing to a weak US economy that JP Morgan believes is already in a recession. "Even a best-ever recessionary demand scenario results in a $4 billion industry loss," Baker wrote.
Air France confirmed that its offices were raided this week by the European Commission as part of its investigation into alleged price-fixing practices on passenger flights between Europe and Japan ( ATWOnline, March 12). Lufthansa and KLM revealed Tuesday that they had been targeted. "Air France confirms that in similar fashion to other airlines, it is being questioned by the European Commission about links between the EU Union and Japan.
The European Commission yesterday conducted so-called unannounced inspections at the premises of a number of international passenger airlines operating long-haul flights to Japan, suspecting them of price-fixing. "The Commission has reason to believe that the companies concerned may have violated EC rules on restrictive business practices," it said in a statement that followed the release of a regulatory filing by Lufthansa admitting its offices were raided.
SITA and Rwanda Civil Aviation Authority announced forthcoming installation of air traffic information system Digital-ATIS and an air-ground data link service at Kigali. The technology, which is in keeping with ICAO's Comprehensive Regional Implementation Plan for Aviation Safety in Africa, will reduce reliance on voice communications and is expected to be in place by year end.
European Parliament yesterday adopted a new regulation that lays down common rules and standards for aviation security throughout the EU. The vote follows the agreement reached two months ago in conciliation between European Parliament and Council representatives ( ATWOnline, Jan. 15). The regulation will enter into force on the 20th day after publication in the Official Journal and will be applied not later than 24 months later.
Austrian Airlines Group's principal shareholder, state holding company OIAG, reached a deal with Saudi-Austrian investor Mohamed bin Iassa Al-Jaber to take a stake in the carrier through a capital increase ( ATWOnline, Feb. 22). The investment of approximately €150 million ($230.1 million) will enable Austrian Airlines to purchase three A320s for operations to the Middle East, Austrian media reported.
Indonesia's dismal safety record is in the headlines again, and Adam Air faces a potential grounding after one of its 737-400s skidded off the runway at Batam Island's Hang Nadim Airport Monday, injuring five of the 176 passengers and crew onboard. The right wing, hydraulic system and main landing gear were damaged. The incident, Adam's third in 18 months, prompted Indonesian Transport Minister Jusman Syafii Djamal to warn that he may ground the airline. "We are giving them a chance to improve.
Barco said UK NATS selected its OSYRIS arrival management software for London Heathrow, Gatwick, Luton, Stansted and City airports. Contract includes software integration with the existing ATC system.
US Transportation Secretary Mary Peters vowed to take action "swiftly" if "serious allegations" that FAA safety inspectors were negligent in their oversight of Southwest Airlines are true.
British Airways said it intends to seek a High Court injunction to prevent its pilots from taking strike action after conciliated talks broke down Friday night ( ATWOnline, Feb. 25). "If strike dates are issued, we will act to protect our customers by applying for an injunction," BA said. The parties are in dispute over the new OpenSkies subsidiary, which is scheduled to commence Paris-New York JFK service in June using non-BALPA pilots.
US Transportation Secretary Mary Peters announced that airlines serving Newark International have agreed formally to cap flights temporarily 83 per hr. beginning in early May. DOT, which imposed a cap at New York JFK of 83 flights per hr. beginning this month, announced in December that it would impose a similar cap at EWR and pegged the airport's capacity at 83 flights per hr. ( ATWOnline, Dec.
Shannon Aerospace, the Ireland-based narrowbody airframe and MRO subsidiary of Lufthansa Technik, is targeting a 30% increase in productivity and a 30% reduction in ground times using "lean" initiatives. The company recently welcomed Ken Kreafle, a GM of Toyota Motor Manufacturing Co. USA and an authority on the Toyota Production System, to its Shannon facility.
Air France KLM board met yesterday and authorized the company to submit an offer for Alitalia Friday subject to certain pre-conditions, "including notably the commitment of the trade unions." Meanwhile, AF KLM dismissed a Le Figaro report that Chairman and CEO Jean-Cyril Spinetta will resign as CEO in October when he reaches age 65. He would remain chairman, the newspaper said, adding without citing sources that President and COO Pierre-Henri Gourgeon would succeed him.
US FAA projected a "near term. . .definite pause in growth" for the domestic airline market in its annual aerospace forecast released yesterday but emphasized that growth will be "vibrant down the road." Speaking at the FAA Aviation Forecast Conference in Washington, Acting Administrator Bobby Sturgell said, "We're talking flat growth in operations and slow growth in passengers." He cited a "series of cascading events" that led to the slowdown, including "$100 oil, an economic picture that's in flux, potential consolidations, and credit market woes."
