Boeing's Commercial Aviation Services unit yesterday reached agreement with Messier Services-Asia, SR Technics and Guangzhou Aircraft Maintenance Engineering Co. Ltd. for provision of repair and overhaul services on 777 and 737NG landing gear in the Asia/Pacific region. Messier will perform 777 and 737NG landing gear work while Guangzhou and SR Technics will support just 737NG landing gear.
Los Angeles Board of Airport Commissioners voted unanimously to increase cumulative rents and fees at Terminals 1 and 3 at Los Angeles International to $292.8 million over five years from $76 million, according to press reports. The two terminals serve primarily low-cost carriers, with Southwest Airlines operating the most routes. In addition, maintenance fees will double, the Los Angeles Times reported. The increases will go into effect Feb. 1 and will equal a $4.19 increase in cost per boarded passenger to $9.89 in T1 and a $5.45 increase to $11.60 in T3.
"They are on their own" was the stark warning to Qantas's potential new owners from Australian Treasurer Peter Costello, who told ABC Radio yesterday that the government will not bail out the carrier if it fails as Ansett Australia did in 2001.
Air France KLM flew 15.54 billion RPKs in November, a 4.1% increase over the year-ago month. Capacity rose 4.2% to 19.8 billion ASKs and load factor dropped 0.1 point to 78.5%. Continental Airlines flew 7.03 billion RPMs in November, up 9.8% from the year-ago month. Capacity grew 7.1% to 8.71 billion ASMs and load factor increased 2 points to 80.7%. Domestic RPMs rose 8.1% to 3.53 billion against a 4.2% increase in capacity to 4.19 billion ASMs, raising load factor 3 points to 84.2%.
Two environmental advocacy groups yesterday claimed airlines could earn up to €3.5-€4 billion ($4.6-$5.2 billion) annually by being included in the European Emissions Trading Scheme, a conclusion that directly contradicts IATA's contention that carriers would lose €2.9 billion in the first year ( ATWOnline, Dec. 14).
AirTran Airways said it intends to bring new jobs and flights to Milwaukee if its $290 million bid for Midwest Airlines is successful ( ATWOnline, Dec. 15). It said its recent growth--it has added 2,800 jobs in the past five years--compares favorably to Midwest's, which AirTran said has cut 500 jobs during the same period, citing SEC filings. It also has 60 737s on order and said it is preparing to add 3,000 positions in the next five years. Midwest has two MD-80s on order, AirTran said.
EasyJet will add a fourth A319 at its Edinburgh base and launch new services to Milan Malpensa, Madrid and Palma, bringing to 12 the number of destinations served from the Scottish airport. The LCC said the expansion represents a capacity increase of 10%. The Palma route will commence as a weekly service May 5 and become twice-weekly from June 10. Daily services to Madrid and Milan will launch Feb. 25 and May 21 respectively.
FedEx yesterday acquired ANC Holdings, a UK express delivery operator, in a £120 million ($234 million) move the global air cargo power said will enable it "to directly serve the entire UK domestic market." ANC has annual revenues of more than £145 million. "The addition of ANC significantly expands our service portfolio in the important UK market and underscores our continuing commitment to grow the FedEx international business," FedEx Express President-International Michael Ducker said. ANC management will remain in place and report to FedEx executives.
American Airlines signed a four-year, $30 million deal with Allegiant Air for the provision in Tulsa of heavy MRO, including C checks, on Allegiant's 24 MD-80s. The deal leaves room for additional aircraft if Allegiant grows its fleet. Separately, AA will launch daily Seattle-Austin service on April 10 aboard a 136-seat MD-80.
Delta Air Lines flew 8.91 billion system RPMs in November, down 1.8% from the year-ago month. Capacity fell 6.5% to 11.51 billion ASMs and load factor rose 3.7 points to 77.5%. Domestic RPMs dropped 8.4% to 6.47 billion, ASMs declined 13.8% to 8.29 billion and load factor rose 4.6 points to 78.1%. International traffic climbed 21.2% to 2.44 billion RPMs against a 19.7% rise in ASMs to 3.22 billion, lifting load factor 1 point to 75.9%. Northwest Airlines flew 6.13 billion system RPMs in November, up 3.2% from the year-ago month.
Thales said it will supply the "majority" of critical avionics on up to 90 new A320s ordered by Air One. Deal includes Thales' Topflight Line of avionics and an LCD head-up display. Aircraft deliveries are scheduled through 2008. Thales also signed a 16-year deal with GoJet Airlines of St. Louis to provide spare and component services and MRO on avionics on GoJet's fleet of 15 CRJ700LRs.
IATA DG and CEO Giovanni Bisignani said he would not hesitate to exclude or eject airlines from the association if they are not IOSA certified by Dec. 31, 2007. All carriers not yet certified must have contracted an audit by the end of this month "or they are out of IATA. Full stop," he said, confirming that he will send out letters in the coming weeks to members that have not yet committed to IOSA certification. Some 97% of IATA members are in the IOSA process and 105 already are on the registry, along with 21 nonmembers.
Malaysia Airlines suspended its Kuala Lumpur-Cairo service. It will maintain a marketing presence in Cairo and serve it via codeshare. It also will cancel its KLIA-Stockholm Arlanda-Newark service on Jan. 15. It will codeshare with KLM from Amsterdam to ARN and said it is "in active discussions" with other carriers to develop links to the US via AMS.
Swiss International Air Lines CEO Christoph Franz told ATWOnline at the Star Alliance meeting in Istanbul earlier this month that the carrier no longer is in a crisis situation but that it will have to add liquidity to be safely positioned for the future. It will stay cautious in 2007 and not open any new long-haul destinations until 2008, he said. "We are not satisfied," he added. "It is not our goal to just maintain our position.
German tourism giant TUI AG unveiled a comprehensive "action plan" Friday that includes an order for 41 new aircraft from Boeing valued at $3.64 billion, its intention to cut costs next year by €250 million ($330 million)--involving the elimination of 3,600 jobs--and the merger of its airline units under the new TUIfly.com brand.
Alitalia was hit by a 24-hr. strike Friday that forced the cancellation of hundreds of flights, including many scheduled for Saturday, the airline said. Press reports said workers were protesting the carrier's pending privatization.
SR Technics was selected by Virgin Atlantic Airways to reconfigure five 747-400s. The project includes an extension to the existing premium cabin, installation of new premium economy seats and new storage areas. Work is expected to be completed in November 2007.
Aerospace Industries Assn. cited a "surging civil aircraft market" as the primary driver behind US aerospace industry sales reaching a record $184.4 billion in 2006, up 8.4% from $170.1 billion in 2005. AIA President and CEO John Douglass said annual US industry sales will "go well beyond $200 billion by the [next US election in] 2008." In remarks this week at AIA's annual review and forecast luncheon in Washington, he noted that the record sales were achieved despite US airlines' recent financial struggles.
US airline consolidation speculation is rampant in the domestic media, among financial analysts and within the industry itself, but little focus is being directed to potential antitrust hurdles to large-scale mergers.
Allegiant Travel Co., parent of Allegiant Air, announced yesterday the closure of its IPO of 5 million shares of common stock with net proceeds of $94.8 million. Money will be used as working capital and to pay off company debt ( ATWOnline, Dec. 11).
Condor Berlin, a Condor Airlines subsidiary, was hit yesterday morning by a 4-hr. wildcat strike organized by the ver.di union. Five flights were affected. The union and Condor management have restarted talks that were suspended in February 2005. The carrier wants its 240 cabin staff to transfer to a flight-hour system from a daily work schedule.
EU-US tension over PNR data sharing is rising again less than two months after the parties concluded an agreement for the processing and transfer of PNR data by air carriers to the Dept. of Homeland Security ( ATWOnline, Oct. 17) under the terms of which the US government committed to restrict the use of data to comply with European privacy laws.
TUIfly.com could be the new name of the combined fleet of German carriers Hapagfly and LCC HLX ( ATWOnline, Oct. 2). German media quoted a TUI management source as saying that the first repainted aircraft will be presented at a hangar in Hannover. TUI is expecting the combined airline to generate €40 million in savings at the cost of up to 200 jobs. It operates 56 aircraft.
Regional Airline Assn. named Roger Cohen president. He is a director at SmithBucklin, which oversees management of RAA and several other organizations. He takes office Monday, replacing Airports Council International-North America Senior VP Deborah McElroy. United Airlines parent UAL Corp. promoted Senior VP-Planning Greg Taylor to senior VP-corporate planning and strategy.
