AirAsia X will sell 10% stakes to private equity funds in Japan (Orix Group) and Bahrain (Perigon Capital) for a combined $75 million, an official told Agence France Press, in order to raise money for the purchase of 25 A330-300s. Virgin Group acquired a 20% stake in the startup last summer ( ATWOnline, Aug. 13, 2007). The AirAsia X official was quoted by AFP but declined to be named.
Ryanair will take its Internet and call center booking system offline from 10 p.m. Feb. 22 until 11 p.m. Feb. 25. The LCC said the move is necessary to "change over to a new flight booking system," which it is doing in order to comply with a UK Office of Fair Trading mandate that requires all taxes and fees to be included in an advertised ticket price. The carrier reportedly missed a Jan. 31 deadline and received an extension to the end of February.
Curtiss-Wright Controls reached a $16 million multiyear deal with Saab Aerostructures to provide the large cargo door mechanical system for the 787. Features include flight-critical subassemblies such as the lift, pull-in, latching, locking and vent systems. Production will take place at CWC's facility in Shelby, N.C.
Emirates Trading Agency-Assoc. Construction confirmed plans to launch a regional airline in India in October under a joint venture agreement with an unidentified partner, the Arab Air Carriers Organization reported. The new airline will base in Chennai and/or Bangalore and will fly to southern destinations. ETA-AC reportedly is negotiating with Embraer, Bombardier and ATR for aircraft.
The US House of Representatives passed an extension of temporary FAA funding through June 30, including providing $2.76 billion in contract authority to restart the currently suspended Airport Improvement Program.
Air France KLM's negotiations with Alitalia received a slight boost this week when Renato Brunetta, an official with the Forza Italia party that has been an opponent of the sale, told reporters that while FI believes the government succeeding that of outgoing Prime Minister Romano Prodi should conclude the deal, if one is struck between AF KLM and AZ in the meantime FI "would respect it." FI reportedly is leading opinion polls ahead of the April elections ( ATWOnline, Feb. 7).
Iberia flew 4.35 billion RPKs in January, up 1% from the year-ago month. Capacity climbed 1.4% to 5.63 billion ASKs, lowering load factor 0.3 point to 77.3%.
UK Home Secretary Jacqui Smith told reporters yesterday in Washington that the US is asking EU members to enhance security measures on westbound transatlantic flights in exchange for relaxed visa regulations. An MOU reportedly was sent to the 27 EU member states asking them to allow US air marshals on all flights operated by US carriers, The Guardian reported. Currently, seven countries allow US marshals to board flights at their point of origin.
DHL Express said it will reduce its workforce in the US by 600 employees, part of an ongoing effort by the German delivery giant to cut costs in its money-losing US business. The reduction will be achieved through layoffs, attrition and the suspension of some existing open positions. "This action is one of several measures we are taking to improve our competitive position in the US market, which is strategic to our global growth plan," DHL Express USA CEO Hans Hickler said. "These changes will help us better align our cost structure."
Iberia won three contracts with Iberworld for aircraft maintenance and logistical support services to be conducted at its shops in Madrid. Slated to begin this month and continue to December 2009, the first contract covers inspections and maintenance as well as disassembly and assembly of 10 CFM56-5Bs powering A320s. The second calls for Iberia Maintenance to service Iberworld aircraft components. The third contract entails complete maintenance of Iberworld's Airbus aircraft including overhauls, structural and interior inspections and modifications.
Air Malta signed a three-year labor agreement with the Air Line Pilots Assn.-Malta retroactive to Aug. 1, 2007. Air Malta said pay increases are weighted toward the end of the contract "in line with the airline's requirement to continue its financial recovery."
S7 Airlines said it increased full-year turnover 24% in 2007 to more than RUB30 billion ($1.2 billion) as passenger numbers climbed 16% to 5.7 million. The Russian airline reported a net profit of RUB61 million in 2006, down 44.5% from the previous year, but did not divulge its net result for 2007. It did say EBITDA "reached" RUB2.8 billion but did not provide a year-ago comparison. It said the results were based on "preliminary data."
Aeroflot, which celebrated its 85th birthday on Feb. 9, said it carried more than 8 million passengers last year, which represented a 12% increase over 2006. It said it is targeting 9.5 million in 2008 and that it expects to grow domestic passengers by 35.6%. Lufthansa Group airlines flew 11.56 billion RPKs in January, up 30.3% from the year-ago month. Capacity rose 29.4% to 15.12 billion ASKs and load factor was up 0.5 point to 76.5%. The LH mainline flew 9.5 billion RPKs, up 7%, against a 5.6% increase in ASKs to 12.34 billion, lifting load factor 0.9 point to 76.9%.
Etihad Crystal Cargo introduced SMS tracking, which allows customers to send a text message to a specified phone number to get a "real-time" status update on shipments. "It is vital for our customers to know at any time exactly where in the world their shipment is located," Etihad Airways Executive VP-Cargo Des Vertannes said. He added that the tracking service, supplied by UAE-based Ontrack Systems, costs users the same price as a standard text message and is linked to the carrier's IT platform.
Continental Airlines said it will distribute $158 million in profit-sharing payments to employees on Feb. 14. It paid $111 million to employees last year. It said its profit-sharing plan shares 30% of the first $250 million in pre-tax income, 25% of the next $250 million and 20% of amounts over $500 million. It claimed its 2007 profit-sharing payout was tied for the highest among the six US legacy carriers.
Astar Air Cargo and the Air Line Pilots Assn. reached a tentative agreement on a new four-year labor contract. The parties have been negotiating since January 2005. Astar pilots' pay will increase more than 20% over the course of the contract. "In addition, the pilots will receive furlough protections and a commitment by the company to secure new aircraft," ALPA said, adding that an undisclosed amount of "retro compensation" will be paid out to pilots. The contract is subject to ratification by the pilots.
SAS Group nomination committee will propose Fritz Schur as chairman at the company's annual general meeting scheduled for April 9. Egil Myklebust plans to step down, SAS said. Schur has sat on the SAS board since 2001.
British Airline Pilots' Assn. yesterday reiterated that it will not accept any kind of outsourcing at British Airways and stressed its readiness to strike if the carrier goes ahead with its plans to recruit non BA-crew for its new OpenSkies subsidiary, which will operate flights between mainland Europe and the US.
The US House of Representatives is expected to vote today on another temporary extension to fund FAA, while thousands of agency employees have been warned that they may be out of a job at the end of the month.
STAR Capital Partners combined its flight training organizations under the Oxford Aviation Academy name. Oxford predecessor companies are GCAT Flight Academy (formed through the combination of GE Commercial Aviation Training and SAS Flight Academy), Oxford Aviation Academy and BAE Systems Training. Oxford operates 10 training centers in Europe, Asia and North America ( ATWOnline, June 25, 2007).
Lufthansa is filing a lawsuit over restrictions to night operations linked to the future expansion of Frankfurt International. The move follows similar lawsuits by Condor Airlines and TUIfly. As a condition for the expansion approval, the Hesse State Economy Ministry said it would restrict frequencies between 11 p.m. and 5 a.m. to an average of 17, down from 41. LH is asking for the limit to be raised back to the original threshold, Reuters reported.
The Clean Sky research program, a Joint Technology Initiative aimed at reducing the environmental impact of air transport, was launched officially in Brussels last week.
VEM was contracted by Aerolineas Sudamericanas to provide corrosion prevention and control program services for 727s. TAT on the first 727 was under eight days.
American Airlines flew 10.92 billion system RPMs in January, a 0.2% increase from the year-ago month. Capacity dipped 1.5% to 14.26 billion ASMs and load factor rose 1.3 points to 76.6%. American Eagle flew 635.4 million RPMs, a 4% decrease, while capacity fell 5.3% to 972.9 million ASMs. Load factor was up 0.9 point to 65.3%. Delta Air Lines flew 9.08 billion system RPMs in January, 2.5% more than in the year-ago month. Capacity rose just 0.2% to 12.04 billion ASMs and load factor climbed 1.7 points to 75.4%.
