3m FKI Logistex won a contract from Australian air Express for two cross-belt sortation systems. The two S-3000CB sorters will be installed in June 2008 in AaE's purpose-built domestic freight processing centers in Melbourne and Sydney.
China Eastern Airlines may post a net profit as high as CNY40 million ($5.3 million) for the first half of 2007, a source told ATWOnline. The carrier expects to release its financial results next month and, as a listed company, was unable to confirm the figure. China Eastern Group President Li Fenghua said this month that CEA is targeting the black following a net loss of CNY2.78 billion last year ( ATWOnline, July 4).
Aerolineas Argentinas, a founding member of ALTA, has returned to the organization. The move follows AR/Austral's readmission to IATA last month. AR currently operates three 747-400s, two 747-200s, four A340-200s, two A310-200s, 22 MD-80s, 13 737-500s and five 737-200s.
Astar Air Cargo yesterday extended the deadline for a response from ABX Air to its "indication of interest" to acquire its fellow DHL subservice carrier for more than $450 million in cash to July 27, noting it has been assured that ABX's board will meet with legal and financial advisers on June 20 to consider the proposal and formulate a response ( ATWOnline, July 2).
Unisys Corp. was selected by the US Cargo Sales Joint Venture to provide "a broad range of IT outsourcing support services" for the organization. USJV is an alliance of Delta Air Lines, Air France and Korean Air offering cargo-related services in the US. Under the terms of the contract, Unisys will provide USJV with outsourced data center, security, network and desktop management services over a three-year period.
Southwest Airlines is offering voluntary buyouts to approximately 9,000 employees, or 27% of its workers, according to press reports citing statements from the LCC. The buyout comprises a $25,000 payment, medical and dental benefits. Among those eligible are flight attendants, ramp workers, customer service employees and those in reservations, operations and freight who have reached a specific pay scale. SWA offered a similar buyout in 2004.
Air China and British Airways introduced interline e-ticketing this month. CA said it has similar agreements with 13 other carriers including United Airlines, Singapore Airlines, Northwest Airlines and Cathay Pacific Airways. It aims to have approximately 30 partners by year end including Japan Airlines, Continental Airlines and its future Star Alliance partners.
Sun Country Airlines yesterday launched a new loyalty program, Ufly Rewards, based on a points system awarding 10 points per return coach flight and a free trip with 100 points with "no blackout dates or restrictions."
Russia's S7 Airlines said it has been negotiating a potential oneworld membership with British Airways. "Members of oneworld alliance are interested in having a reliable partner in the Russian aviation market, which today is one of the most promising and rapid-growing markets," S7 said. "S7 can become such a partner, as it possesses a unique and the most developed route network in Russia." Aeroflot is a member of SkyTeam and AiRUnion, which said it intends to join an alliance by 2015 ( ATWOnline, Feb.
Australian domestic market is heading for intense price competition as Singapore-based Tiger Airways announced more domestic routes and fares for its Australian launch in late November ( ATWOnline, June 29). Tiger's latest route announcement is Melbourne-Launceston with fares starting at A$39.99 ($34.87). Its Australian operation will be based in Melbourne and destinations include Perth, Mackay, Rockhampton, Alice Springs and Darwin.
Four US legacy carriers that announced Monday their intention to compete for the right to operate new routes to China ( ATWOnline, July 17) have been joined by American Airlines, United Airlines and a surprise entrant--all-business-class carrier MAXjet Airways. AA proposed to add a daily Chicago O'Hare-Beijing flight to its daily ORD-Shanghai service beginning March 25, 2009.
Air Canada and Air Canada Jazz flew a combined 4.5 billion RPMs in June, up 2% on the year-ago month. Capacity climbed 1.8% to 5.43 billion ASMs and load factor rose 0.2 point to 82.8%. Singapore Airlines flew 7.51 billion RPKs in June, up 1.7% from the year-ago month, against a 1.4% decline in capacity to 9.11 billion ASKs. Load factor climbed 2.5 points to 82.4%.
Magellan Group and Mercury Aviation Partners signed an MOU to create M&M Services, a 50/50 joint venture LLC that will build an operating lease portfolio of "mature aircraft subject to lease with part-out being the long-term goal for each aircraft." M&M said it plans to acquire up to $100 million worth of aircraft such as 737 Classics, 757s, 767s, A320s, ATR 42/72s, Dash 8s and Brasilias.
Chinese carriers posted a collective profit of CNY900 million ($118.7 million) in the first four months of 2007, reversed from a net loss of CNY4 billion in the year-ago period, according to CAAC statistics. CAAC cited an "effective cost-saving" policy as the main reason for the improved performance.
United Airlines yesterday said it will accept applications for approximately 100 new pilot positions expected to be filled this year--the first such additions since 2001. "We're investing in our business, and our expansion in international markets enables us to add to our team," VP-Flight Operations Hank Krakowski said. New hires will begin training at UA's Denver training center as early as October and are scheduled to be flying by year end, the airline said.
Virgin Blue announced the A$61 million ($53.1 million) purchase of a "campus-style" development in Brisbane to serve as its new national headquarters. The development is scheduled to be completed next March.
News from Travel Technology Update: Seven European rail companies and their high-speed subsidiaries plan to link their reservations system and create a new "seamless" network that will compete with air and road travel over international borders.
Astar Air Cargo Chairman. President and CEO John Dasburg yesterday said that ABX Air has not yet responded to Astar's "indication of interest" in acquiring its fellow DHL subservice carrier for $450 million in cash and set a deadline of the close of business July 18 for a response.
Etihad Airways and Abu Dhabi Commercial Bank signed a $180 million sale and leaseback facility that will finance the acquisition of two A330-200s, the Arab Air Carriers Organization reported. The facility is structured as a lease with repayment spread over 12 years and a terminal balloon payment of 30% upon final maturity. Ethiopian Airlines leased two 235-seat 767-300ERs from Deutsche Structured Finance. Lease agreement is for six years effective May 31. The aircraft joined the fleet on June 1 and July 7.
Alaska Airlines flew 1.72 billion RPMs in June, a 4.9% increase from the year-ago month. Capacity was up 5.2% to 2.12 billion ASMs and load factor down 0.2 point to 81.3%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.63 billion RPMs in June, up 14.5% on the year-ago month, against a 15.9% climb in ASMs to 1.99 billion. Load factor slipped 1 point to 81.7%.
Pakistan International Airlines reported a PKR3.95 billion ($65.4 million) loss in the first quarter, widened from a PKR3.08 billion loss in the first three months of 2006. Revenue climbed 5% to PKR17.68 billion against a 6.5% increase in costs to PKR20.18 billion.
SITA signed an agreement with the Saudi Arabian General Authority of Civil Aviation to automate passenger and baggage processing for foreign airlines' departing passengers at Jeddah, Riyadh, Dammam and Medina airports. SITA valued the five-year program, including installation of departure control, passenger check-in and baggage management systems, at $16.8 million.
