EADS co-CEO and Airbus CEO Louis Gallois is scheduled to meet today with German Finance Minister Michael Glos to discuss the Power8 restructuring plan, details of which are expected to be revealed to Airbus employees on Feb. 20. Glos warned yesterday that job cuts and facility closures must be "evenly spread between Germany and France."
Spirit Airlines is charging $10 for a second piece of checked luggage as part of a policy instituted Saturday. Additional bags will be allowed and will cost a minimum of $100 each, with fees rising to as much as $150 per bag depending on size and/or weight. In addition, initial pieces of checked luggage that weigh 51-70 lb. will cost $25, or $100 if they weigh 71-99 lb. Spirit has bases in Fort Lauderdale and Detroit.
Sabena technics and Taneja Aerospace and Aviation intend to establish a joint venture to respond to "the demands of the growing Indian aviation market." The MRO activity will take place at TAAL's private airfield in Tamil Nadu some 50 km. southeast of Bangalore. Initially the MRO provider will target regional turboprop aircraft such as ATR 42s/72s and eventually will ramp up to narrowbodies.
EU Friday made its first written submission in the US government's WTO challenge to EU government support for Airbus. While declining to make the actual submission public, the EU said it was a "robust response" to US allegations that Airbus received illegal subsidies. The first WTO panel will meet March 20-21. This will be followed by another round of submissions and hearings with a final decision due on Oct. 31. The EU noted that this could slip into 2008.
United Airlines flew 9.22 billion RPMs in January, up 2% from the year-ago month. Capacity climbed 1.6% to 11.82 billion ASMs and load factor rose 0.3 point to 78%. Delta Air Lines flew 8.86 billion systemwide RPMs in January, a 3.3% increase over the year-ago month, against a 2.9% climb in ASMs to 12.02 billion. Load factor rose 0.3 point to 73.7%. Domestic traffic fell 5.2% to 6.09 billion RPMs, capacity dropped 5.1% to 8.32 billion ASMs and load factor was down 0.1 point to 73.2%.
JetBlue Airways said it expects net savings of $30 million over five years by removing six seats, or one row, from each of its A320s ( ATWOnline, Dec. 21, 2006). The figure includes estimated lost revenue. Inflight cabin crew will be reduced to three and aircraft weight will fall 904 lb. Modifications are expected to be completed by March, at which time the cabin will feature 36-in. pitch in rows 1-11 and 34-in.
Qantas scotched rumors that it is contemplating cutting its investment in Singapore-based Jetstar Asia Airways. Qantas CFO and Jetstar Asia Chairman Peter Gregg said in a statement that "Jetstar Asia is, and will continue to be, an important part of the Qantas Group's diversification strategy." Local press reports have expressed concerns over the airline's future following a number of operational cancellations and claims regarding pilot shortages.
Pakistan International Airlines posted a PKR9.19 billion ($150.7 million) loss in 2006, Chairman Tariq Kirmani said at a press conference in Karachi, according to news reports. Comparison to 2005's final result was not provided, but he did say that revenue rose 10% to PKR70 billion and passenger numbers climbed 5.1% to 5.7 million. PIA's year was soured by the July crash of an F27 that killed all 45 onboard ( ATWOnline, July 11, 2006).
Shanghai SR Aircraft Technics, a joint venture between SRT and Shanghai Foreign Aviation Service Corp., signed an agreement with Air New Zealand to provide technical support and line maintenance on its 777s at Shanghai Pudong.
Lamar Muse, who co-founded Southwest Airlines with Rollin King and Herb Kelleher and served as its first president and CEO, died Feb. 5 of cancer. He was 86. Muse was hired by King and Kelleher to bring their idea for a Texas intrastate airline from the napkin to the runway.
Kingfisher Airlines partnered with dishtv of India to offer live television and digital entertainment in flight. The first aircraft was equipped with the service, called Live, in December. It features 21 channels of television and video content, 10 of music and a map channel.
British Airways said yesterday that it reached an agreement with the trustees of its New Airways Pension Scheme to address its £2.1 billion ($4.12 billion) deficit. The accord, which was reached in principle last year but rejected by the GMB Union last month ( ATWOnline, Jan. 15), includes a one-off injection of £800 million, annual company contributions of £280 million for the next 10 years and an additional £150 million over the next three years subject to BA's financial performance.
Flybe said the UK Office of Fair Trading approved its acquisition of British Airways regional subsidiary BA Connect ( ATWOnline, Nov. 6, 2006). OFT asked Flybe to grant access to one of the 13 parking stands it currently uses at Southampton Airport.
Air France KLM flew 16.12 billion RPKs in January, up 2.3% from the year-ago month. Capacity rose 2.4% to 20. 4 billion ASKs and load factor was level at 79%.
European Travel Agents and Tour Operators Assns., which comprise associations from 29 countries, once again is calling for a system that will protect passengers from airline failure or default and suggested that it be funded through a €1 ($1.29) contribution per ticket paid by all carriers, including ones from outside the EU, flying to/from an EU airport. ECTAA's effort to establish the passenger protection fund is not new, but recent bankruptcies highlight the need, President Jan Van Steen said.
Air Berlin said the dba brand will disappear from the market by April 1 once the subsidiary is fully integrated. AB acquired dba last summer ( ATWOnline, Aug. 18, 2006). Dba's network, check-in facilities and administration already have been combined with AB's. The airlines flew a combined 1.2 million passengers in January, up 8.7% from the first month of 2006. Load factor rose 1.9 points to 64.9%.
Slovak Airlines said yesterday that it will enter bankruptcy following majority owner Austrian Airlines Group's decision to take possession of two of its three aircraft ( ATWOnline, Jan. 31). The remaining aircraft, a 737-200, reportedly is not available to fly. An AAG spokesperson told this website that Austrian is expecting a double-digit-million euro loss on its Slovak Airlines investment.
Lockheed Martin will supply United Airlines with flight planning technologies through Flugwerkzuege Aviation Software. UA will use Flugwerkzuege's Flight-planning System and the OPUS Notices to Airmen system.
Continental Airlines' consolidated RASM lifted 4.1% in December and an estimated 2%-3% in January, the airline said. It flew 7.02 billion consolidated RPMs last month, a 5.9% increase over the year-ago month. Capacity climbed 5.5% to 9.2 billion ASMs, boosting load factor 0.4 point to 76.3%. Domestic traffic grew 4.8% to 3.36 billion RPMs, capacity increased 5.1% to 4.3 billion ASMs and load factor fell 0.2 point to 78.1%.
President Bush's new $2.9 trillion budget "provides a framework for reforming the aviation system by tying what users pay to the costs of providing air traffic control and other services," the US Dept. of Transportation confirmed yesterday, pleasing airlines that have advocated a user-based funding mechanism ( ATWOnline, March 9, 2006). The US Airport and Airways Trust Fund is due for reauthorization in the current fiscal year ending Sept. 30.
United Airlines made a $972 million cash payment toward its $3 billion bankruptcy exit facility and refinanced the remainder, it announced yesterday. The new facility consists of a $1.8 billion term loan and a $255 million revolving credit line. Refinancing was "significantly oversubscribed," the airline said, enabling it to reduce finance costs by 175-200 basis points over LIBOR.
Delta Air Lines creditors' committee will pick all 10 board members of the reorganized carrier as part of the deal under which the committee approved DL's plan to emerge from bankruptcy at the expense of US Airways' bid ( ATWOnline, Feb. 1), CEO Gerald Grinstein told The New York Times. At least three members of the existing board will stay on. In addition, the committee will limit management's ownership stake to 4%, a total that Grinstein said would be "spread across. . .1,000 people."
