Austrian Airlines Technik and Lufthansa Technik firmed an April MOU and signed a 10-year contract to increase a strategic cooperation, highlighted by the establishment of a 777 MRO center in Vienna that will service LHT clients and third-party customers.
Fraport AG increased its stake in the company operating Lima's Jorge Chavez International Airport to 100% from 42.75%. The German company said it will sell off 40% of the airport to Peruvian investors and the World Bank investment fund. Fraport purchased the outstanding stake from a consortium led by US construction firm Bechtel. LIM reported revenue of around €80 million ($109.4 million) and processed approximately 6 million passengers last year, up from the 4 million it handled when Fraport entered the market in 2001.
Garuda Indonesia swung to a half-year profit of IDR148 billion ($15.9 million) from a IDR361 billion loss in the first six months of 2006, according to press reports from Jakarta. Revenue rose 12% to IDR5.8 trillion. CEO Emirsyah Satar was quoted saying that passenger numbers increased 7.1% to 4.4 million and that the improved result was due in part to higher fares (yield rose 8%) and a better utilization rate. Load factor climbed 6 points to 76% as the fleet decreased to 49 aircraft from 56, The Jakarta Post reported.
GE Aviation Materials launched its Singapore Distribution Center, the GE-Snecma joint venture's first in Asia. DHL Exel Supply Chain will operate and manage the center. The 31,300-sq.-ft. facility will hold about $30 million in new and used engine parts and complete spares.
Vueling Airlines reported a net loss of €33.7 million ($46.1 million) in the first six months of 2007, widened from a deficit of €6.5 million in the year-ago period, according to press reports from Madrid. Revenue climbed 57.3% to €149.7 million but costs soared 79% as competitive pressures hammered yields. Reuters reported that Vueling's average fare during the second quarter plunged 23.4% to €39.71.
EasyJet and Wizz Air last week announced that they will start charging for each piece of checked baggage. The UK-based LCC said that in order to "reduce the number of passengers who travel with checked-in bags," it will be charging £2 ($4.06) per piece of hold baggage per sector from Oct. 1. Previously, easyJet did not charge for the first bag but levied £5 for each additional piece. Maximum weight per passenger remains at 20 kg.
US Airways Group flew 6.15 billion consolidated RPMs in July, up 1.2% on the year-ago month. Capacity fell 1.4% to 7.17 billion ASMs, lifting load factor 2.2 points to 85.8%. The company said July passenger RASM rose 4% year-over-year. Ryanair transported 4.8 million passengers in July, up 21% from the year-ago month. Load factor was steady at 90%.
Flight Explorer, a global flight tracking and IT solutions provider, entered into a teaming agreement with Metron Aviation "to integrate Metron's Enhanced Substitution Module product into Flight Explorer's FE Professional Aircraft Situation Display." Flight Explorer also will serve as "a value-added-reseller" of Metron's ESM product.
ExpressJet Holdings will have its 2007 block-hour rates under its capacity purchase agreement with Continental Airlines reduced by $14.2 million, an arbitration panel decided. The dispute went to arbitration June 25. ExpressJet said the reduction "represents changing staffing levels and overhead expenses allocated to the CPA as well as expenses associated with ExpressJet's nonflying businesses."
Despite the fact that one Chinese airline after another has forecast a first-half profit, significant operational challenges still face the industry as it continues to grow.
Continental Airlines reported an estimated 3%-4% increase in July consolidated RASM as it flew 9.06 billion system RPMs, up 3.6% from the year-ago month, against a 2.4% rise in ASMs to 10.48 billion. Load factor improved 1 point to 86.4%. Domestic RPMs climbed 4.5% to 4.25 billion, ASMs were up 3.7% to 4.83 billion and load rose 0.7 point to 88%. International traffic increased 6.3% to 3.93 billion RPMs, capacity was ahead 4.6% to 4.57 billion ASMs and load factor lifted 1.3 points to 86%. Southwest Airlines flew 7.05 billion RPMs in July, up 11.4% from the year-ago month.
Northwest Airlines, which has been beset for the past two months by high levels of flight cancellations that it has attributed to weather and "pilot absenteeism," reached a tentative agreement with the Air Line Pilots Assn. on "a variety of contract issues and pilot work rules," according to the carrier.
Dubai Aerospace Enterprise completed acquisition of Standard Aero and Landmark Aviation from Carlyle Group in a transaction valued at $1.9 billion. The companies will be merged "as a business enterprise" within its DAE Engineering subsidiary. DAE named Standard Aero President and COO Paul Soubry Jr. president and CEO of the combined companies. According to DAE, the acquisition and merger create "a global aviation services network of 12 primary facilities in the US, Canada, Europe, Singapore and Australia with an additional 14 regionally located service and support locations."
CAE and Air Canada signed contracts valued at C$60 million ($56.4 million) over 15 years giving CAE responsibility for "operation services" at AC's Toronto and Vancouver training centers. CAE also will market excess training capacity to third parties. AC will continue to conduct its own pilot training, including curriculum and instructors. Separately, CAE said it won a contract for an A330/A340 FFS from US FAA for delivery in the summer of 2008. Virgin Blue ordered a 737NG FFS. Air France ordered an A320 FFS and Japan Airlines ordered a suite of 787 maintenance training devices.
US Air Transport Assn. pushed Congress yesterday to develop a new FAA funding system based in part on a per-passenger tax related to number of departures and distance flown, which airlines insist would be far more reliable than the current ticket price-based fee system.
Southwest Airlines promoted Senior Director-Airport Performance Improvement Matt Hafner to VP-ground operations. Alaska Air Group promoted Director-Government Affairs Megan Lawrence to MD-government and community relations.
Iberia launched a new service on its website to allow passengers to supply Advance Passenger Information when traveling to countries that require it such as the US, Cuba, and Mexico. Initially the service is available only when the reservation has been made through Amadeus. Next year it will be available regardless of the distribution system, IB said.
American Airlines signed an MOU with AirCell to become the first US carrier to test that company's high-speed broadband capability for passengers traveling within the continental US. The test will be conducted next year on AA's 767-200s "that primarily fly transcontinental routes," according to the airline. The solution will provide passengers the ability to use Wi-Fi-enabled laptops and PDAs "coast-to-coast, border-to-border," surf the Internet and send and receive e-mail, according to AirCell.
SENIOR AIRBUS EXECUTIVES gathered at the manufacturer's headquarters here earlier this year for a high-level meeting on the revamped A350 XWB. As they discussed how the aircraft would be constructed at sites across Europe, a chart was displayed. EADS CEO and then-Airbus CEO Louis Gallois quickly noticed it contained images of flags denoting France, Germany, Spain and the UK.
American Airlines took Google to court over the sale of its keywords to other companies for use in Google searches. In its complaint, filed in U.S. District Court in Fort Worth, Texas, American took issue with Google's practice of allowing other companies to bid on "American Airlines" as a search term, which allows the companies' ads to appear in the paid search field to the right of "organic" search results.
The two companies filed with the European Commission for antitrust approval to create the new entity. European Union law requires such a filing. Regulatory approval in the U.S. is not required. In a statement, the companies said that "the intent of the joint venture is to establish an industry standard solution to improve and better meet the requirements of the travel industry with payment efficiencies, increased automation, and improved interoperability." "There's no industry standard now for payments not covered by the Airlines Reporting Corp. or BSPs," a Sabre spokeswoman said.
United Airlines parent UAL Corp. named Rohit Philip as VP-financial planning and analysis, Todd Arkenberg as VP-employee experience and Robert Sahadevan as VP-Mileage Plus.
Sensis Corp. announced that its Airport Surface Detection Equipment Model X system at Louisville International Airport is operational. According to Sensis, ASDE-X uses a combination of surface movement radar, transponder multilateration and ADS-B sensors "to provide controllers with an accurate picture of the location and identity of aircraft and vehicles on the airport surface." The system also features conflict detection and alerting technology.
A380 received EASA and US FAA approval to operate on runways with a width of 45 m. or more, which is the standard at most airports around the world, Airbus said. The aircraft already has visited 45 airports and the manufacturer claimed that more than 70 will be ready for the A380 by 2011.
