Lufthansa Systems signed an eight-year contract with Rossiya for the implementation and use of the ProfitLine/Yield revenue management solution and ProfitLine/Price pricing solution.
Iberia said online sales revenue rose 12% in 2008 to €500 million ($730.2 million) and that around 12,500 passengers per day now download and print their own boarding passes.
US Senate Commerce and Transportation Committee, which has been criticized for not moving quickly on FAA Acting Administrator Bobby Sturgell's nomination to serve a five-year term as agency head ( ATWOnline, Jan. 23), scheduled a confirmation hearing for Feb. 7.
CAE won orders for two full-flight simulators, a suite of CAE Simfinity training devices and update contracts valued at C$46 million ($44.7 million) from Qantas, Hainan Airlines, Airbus, Atlas Air, Singapore Airlines and Virgin Blue. Qantas ordered a CAE 5000 Series 737NG simulator and a CAE Simfinity 737NG IPT. Hainan purchased a CAE 7000 Series E-190 simulator and a set of CAE Simfinity training devices. Hainan also will receive a CAE Simfinity IPT and VSIMs. Airbus requested the CAE Tropos-6000 visual system for an A350 engineering development simulator.
Kaman Aerospace said its Aerostructures Division signed a seven-year follow-on contract with Boeing for wing fixed trailing edge assemblies on 777 and 767 aircraft. Contract covers components for 777 and 767 configurations at Boeing annual production rates. Work will take place at Kaman's Jacksonville facility.
Royal Jordanian and CIT Aerospace International signed 12-year lease contracts for two 787s, with delivery in September 2012 and January 2013. Aircraft will operate to North America and East Asia. The airline plans to operate 12 787s, four of which will be purchased directly from Boeing for delivery in 2013 and 2014 ( ATWOnline, Nov. 13, 2007). It will take two 787s from ILFC in 2010-11 and said it plans to sign a contract with LCAL for an additional three of the type. It did not account for the 12th aircraft.
Iberia Maintenance reached a five-year deal with Italian carriers Eurofly and Meridiana for maintenance of 20 CFM-56-5B engines powering eight A320s and two A319s. Work will be conducted at Iberia Maintenance facilities in Madrid.
Air Austral will become a new player in the Europe-Australia market. The Reunion-based carrier will launch Paris Charles de Gaulle-Saint Denis-Sydney service in addition to flights to Noumea and New Caledonia in its 2009 summer schedule. It will lease two 777-300ERs from ILFC for eight years with delivery in February and March 2009. It currently operates three 777-200ERs and three 737 Classics.
ATW Industry Forecast Webinar yesterday examined airlines' financial prospects in an increasingly uncertain global economic environment, reviewing last year's performance and looking ahead to 2008, during which worldwide profits are expected to drop more than 10% to $5 billion as carriers contend with declining global GDP, rising fuel costs and the possibility of a US recession.
Ryanair is increasing checked baggage and airport check-in fees with immediate effect for all new bookings as part of what it claims is "its continued drive to encourage passengers to travel without checked-in bags and avail of Ryanair's free-of-charge online check-in." Fee per checked bag increases to £6 ($11.69) from £5 and the check-in fee rises to £3 from £2.
Airstream International Group arranged the sale of a former Jet Magic and Citelynx ERJ-135ER to bmi on behalf of LCY Flight Ltd. Airstream said it was the 28th RJ it has sold in the past 24 months.
Iberia's largest shareholder, Caja Madrid, said British Airways will have to bring something "significant" to the carrier or it might leave oneworld and look to join another alliance, Reuters reported. "Iberia does not need to change partners. It does not need capital," Caja Madrid Chairman Miguel Blesa said. "Iberia needs a good alliance--a stable alliance with a big operator.
US Transportation Secretary Mary Peters accused Congress of "playing politics with aviation safety and aviation congestion" and urged fast action by lawmakers on FAA reauthorization legislation and the confirmation of Acting Administrator Bobby Sturgell, both of which have languished for months. Speaking at an Aero Club of Washington luncheon yesterday, Peters said, "I'm a little tired of all the noise I'm hearing on Capitol Hill about [flight] delays. . .while Congress sits on the sidelines."
Senior airline pilots in the US are challenging new legislation that allows them to continue flying until age 65, calling the law "unconstitutional and unenforceable." The Fair Treatment for Experienced Pilots Act, which President George W. Bush signed last month ( ATWOnline, Dec. 17, 2007), is not retroactive and does not include any provisions for pilots who turned 60 prior to passage.
Lufthansa and JetBlue Airways yesterday announced the completion of their stock purchase agreement under which the German carrier took a 19% stake in the New York JFK-based LCC ( ATWOnline, Dec. 17, 2007). "With the conclusion of the financial transaction, Lufthansa and JetBlue will begin exploring innovative commercial arrangements designed to benefit both airlines and their customers," the carriers said in a joint statement.
Skyways Aviation arranged the sale of two ATR 72s to Swedish shipping and aviation group Erik Thun. Aircraft currently are operating with Aer Arann and Airlinair and were sold with long-term leases attached.
News from Travel Technology Update: Lufthansa rocked the German travel market last week, saying it will increase fares booked through GDSs for flights departing German and Austria beginning July 1. The fares will increase by €15 for one-way flights and €30 for roundtrips. Lufthansa will continue to offer its pre-hike fares, which it has dubbed "Lufthansa Preferred Rates," after July 1 for direct sales through its Web site, call center, ticket counter and its dedicated travel agent Web site, lufthansa-agent.com.
Shanghai Airlines expects to post a loss in 2007 after reporting an CNY8.2 million ($1.1 million) profit in 2006, according to a company statement cited by Reuters. The airline said high fuel prices, slow development of new international routes and the establishment of a cargo subsidiary were the principal causes. It posted a narrowed CNY134.5 million loss in the first six months of 2007 ( ATWOnline, Sept. 3, 2007).
British Airways pilots will vote on strike action in a dispute over their status in the airline's new OpenSkies subsidiary, British Air Line Pilots Assn. confirmed. BALPA represents nearly all BA's 3,200 pilots and said the decision to ballot was taken after weeks of "abortive" negotiations with the airline. "This is not about money and it is not about safety," General Secretary Jim McAuslan said.
Copenhagen Airports supervisory board said it plans to invest DKK1 billion ($196.1 million) in 2008 to improve check-in facilities, gates, aircraft stands, baggage facilities and security, among others. The airports operator will add 150 employees this year.
Intersky, an Austrian LCC, will add a fourth Dash 8-Q300 to its fleet and launch service from Friedrichshafen to Paris Charles to Gaulle (four-times-weekly) and Munster Osnabruck (five-times-weekly) on March 29. Intersky enjoyed an 11% increase in 2007 revenue to €23 million ($33.7 million) as passenger numbers climbed 9.1% to 180,000. It expects to carry 235,000 in 2008.
Finnair flew 1.78 billion RPKs in December, up 18.1% from the year-ago month. Capacity rose 18.3% to 2.36 billion ASKs, lowering load factor 0.6 point to 58.4%. Copa Airlines flew 450.5 million RPMs in December, up 13.1% from the year-ago month. Capacity rose 15.1% to 577.9 million ASMs and load factor dropped 1.4 points to 78%. Republic Airways flew 737.6 million RPMs in December, a 32.1% rise from the year-ago month, against a 32.9% increase in ASMs to 1.06 billion. Load factor slipped 0.4 point to 69.3%.
Southwest Airlines board authorized a new share repurchase program to acquire up to $500 million of SWA common stock, equal to roughly 41 million shares. It is the sixth repurchase program authorized since January 2006, resulting in the repurchase of 116 million shares of common stock worth $1.8 billion, CEO Gary Kelly said. The company has around 735 million shares outstanding.
