Leave it to Singapore Airlines CEO Chew Choon Seng to make perhaps what is the most astute observation about the pending takeover of Qantas by a private investment group led by Allco Equity Partners and Texas Pacific Group. Speaking to ATWOnline News Editor Brian Straus recently, Chew pointed out that if, as appears likely, the sale is completed, "the beneficiaries of protectionism are not going to be the traveling public nor the greater Australian interests but financial investors."
Virgin America said it was given US FAA approval for "proving run" test flights, which it claimed moved it a step closer to DOT certification. But the startup, which has leased 34 A320s, still faces citizenship challenges from US competitors who say Richard Branson's Virgin Group, not US investors, control the carrier. It is unclear when it will be able to get its certificate. FAA did not release a statement.
Delta Air Lines should "consider methodically, proactively and fairly strategic alternatives to its standalone Chapter 11 plan," a group of "unofficial" unsecured creditors said last week in a statement. The group of 17 creditors unaligned with the official creditors committee said it "appreciates" the DL standalone plan ( ATWOnline, Dec.
AAR was selected by Southwest Airlines to perform heavy maintenance services and winglet installations for the airline's 737s, with the work to be done at AAR's Indianapolis facility. Under terms of a three-year agreement, AAR will operate one line of nose-to-tail heavy maintenance checks starting in January. Winglet installation will include two nose-to-tail lines, each operating for 16-18 months, also starting next month.
Etihad Airways appointed Iain Burns as its new VP-corporate communications. Burns was head of corporate communications at British Airways for five years before resigning in October ( ATWOnline, Oct. 10). Grupo Aeroportuario del Sureste, the Mexican airport operator known as ASUR, said CEO Kjeld Binger resigned effective Dec. 31. Chairman Fernando Chico Pardo said current management will assume Binger's responsibilities until a new CEO is appointed, which could come as soon as Jan. 19.
American Airlines said it expects fourth-quarter mainline RASM to increase 3.8%-4.8% year over year, with consolidated unit revenues rising 3.6%-4.6%. It is anticipating fourth-quarter mainline unit costs of 10.98 cents and full-year CASM of 10.92 cents. Excluding fuel, the numbers will be 7.80 and 7.58 cents, respectively. Alaska Air Group told the US Securities and Exchange Commission Friday that the company expects breakeven results in the fourth quarter, which will compare favorably to a $33 million deficit in the final quarter of 2005.
Singapore Airlines flew 7.43 billion RPKs in November, up 10.1% from the year-ago month. Capacity rose 2.8% to 9.28 billion ASKs, lifting load factor 5.3 points to 80.2%. Cathay Pacific Airways flew 5.84 billion RPKs in November, a 7.7% increase from the year-ago month. Capacity grew 4.4% to 7.42 billion ASKs and load factor was up 2.4 points to 78.7%. EasyJet transported 2.6 million passengers in November, 11.2% more than in the year-ago month. Load factor was up 0.4 point to 80.5%.
Hawaiian Airlines finalized an agreement with AWAS Aviation Services that includes the purchase of three leased 767-300ERs ( ATWOnline, Dec. 1). Separately, HA flew 609.3 million RPMs in November, up 7.8% from the year-ago month. Capacity rose 13.4% to 716.8 million ASMs and load factor fell 4.4 points to 85%.
CSA Czech Airlines revealed that it expects to turn a 2007 profit of CZK42 million ($2 million), a reversal from the CZK493 million it expects to lose this year. Its 2007 business plan projects a 5.6% increase in passenger volume to 5.7 million and includes the sale and leaseback of five 737-500s.
US Airways reached agreement with the Transport Workers Union on a single contract for flight dispatchers, bringing dispatchers from America West Airlines and the former US Airways under one labor deal. US said the accord is another step toward receiving one FAA operating certificate next year that formally would merge the two carriers.
Lufthansa Technik signed a five-year Total Technical Support contract with French startup Elysair for its 757-200. Elysair will operate all-business-class flights from Paris Orly to Newark starting this month.
Heico Aerospace Holdings Corp. announced the acquisition of an 80.1% stake in Prime Air Inc. and its Prime Air Parts affiliate. Terms of the deal were not disclosed. Based in Chicago and Miami, Prime offers niche accessory component exchange services as an alternative to OEMs' spares services.
CFM International said its CFM56-5B Tech Insertion Package was certified by both US FAA and EASA. Aircraft certification is expected to occur early next year.
CSA Czech Airlines said employee reductions and a more efficient organizational structure will produce CZK100 million ($4.7 million) in savings next year even though costs will rise as a result of existing labor agreements. It intends to shed approximately 200 of its 5,300 employees during the first quarter.
European Commission yesterday decided to partially exclude Bulgaria, which is set to become a full EU member in January, from the internal aviation market. Bulgarian airlines will not be considered as "community carriers" and will continue to operate as "third-country operators" to and from member states in accordance with existing bilateral agreements. The decision follows EASA inspections in the past two years that revealed problems with the Bulgarian CAA's ability to exercise adequate oversight of aircraft personnel and maintenance organizations.
Austrian Airlines Group established a new subsidiary to promote third-party MRO. Austrian Airlines Technik Marketing GmbH will employ 10 and look to generate business for AUA's maintenance division, which employs 1,100 workers and staff and produces €230 million ($302.1 million) in maintenance work annually.
Commercial Jet of Miami will convert three 737-200 passenger aircraft to freighters for Northern Air Cargo. CJI will use Aeronautical Engineers' STC and also will perform C checks and upgrade avionics.
The European Commission yesterday detailed its anxiously awaited proposal to bring commercial aviation into the EU Emissions Trading Scheme. Subject to adoption by member states and the European Parliament, the policy will see emissions limits imposed from 2011 on all domestic and international flights between EU airports and from 2012 on flights originating outside the bloc.
Australian travel agents filed an $80 million class action suit against Qantas, Air New Zealand, British Airways, Cathay Pacific Airways, Singapore Airlines and Malaysia Airlines claiming the carriers withheld commissions by citing fuel surcharges as a tax rather than a component of the airfare, the Sydney Morning Herald reported. Travel agents sold 85% of the $16.9 billion in international tickets purchased in Australia from 2004 to 2006, the paper said. The airlines did not comment.
Alaska Airlines flew 1.4 billion RPMs in November, a 2.5% increase over the year-ago month. Capacity climbed 3.5% to 1.88 billion ASMs, dropping load factor 0.7 point to 74.5%. Air Berlin and its dba subsidiary transported 1.4 million passengers in November, up 8.5% on the year-ago month. Load factor rose 1.1 points to 68.7%. AirTran Airways flew 1.13 billion RPMs in November, up 15.4% from the year-ago month. Capacity climbed 19.1% to 1.63 billion ASMs and load factor fell 2.2 points to 69.2%.
AirTran Airways employees threw their support behind the proposed merger with Midwest Airlines. AirTran said a letter addressed to Chairman and CEO Joe Leonard and signed by three unions and two internal employee organizations cited "the common cultures and entrepreneurial spirit" at both carriers and offered "to meet with our counterparts at Midwest" and "to stand together to help make this merger a reality."
US Dept. of Transportation yesterday issued a tentative ruling allowing Swiss International Air Lines, LOT Polish Airlines and TAP Portugal to receive the same antitrust immunity already enjoyed by European Star Alliance members Lufthansa, SAS and Austrian Airlines. DOT also expanded the immunity between United Airlines and Air Canada to cover cooperation on all of the two carriers' international operations.
China's civil aviation industry is expected to post bigger profits in 2006 despite a CNY640 million ($81.7 million) loss during the first half due to high fuel prices, China Daily reported. Chinese airlines recorded a CNY5.5 billion profit in the third quarter and enjoyed a 22.2% rise in revenue to CNY65.4 billion on double-digit passenger and cargo growth.
