East Star Airlines remains committed to attracting new investors despite a Wuhan court's rejection of takeover offers from Shanghai YuField and China National Aviation Fuel Co.
Civil Air Navigation Services Organization Secretary General Alexander ter Kuile announced his intention to step down on completion of his three-year third term at year end. He joined CANSO in January 2001 as its first full-time secretary general. Chairman Ashley Smout said, "Alexander has made an unparalleled contribution to CANSO and his departure will leave a huge gap. But thanks to his tireless efforts the association has never been stronger, and we will continue to build on his excellent work."
CASC/Airbus Customer Services training and support center in Beijing is looking to adjust its business model as more airlines acquire their own simulators, MD-Administration and Programs Michelle Pierre Petit told ATWOnline last week. The 18,800-sq.-m. facility, which opened in 1997, includes two A320 and one A330/A340 simulators. "More airlines buying their own simulators means we have to also focus on training the trainers," Petit said. The facility has about 20 airline customers, but there currently are 16 A320 FFSs in China with more to come.
Messier Services signed a four-year contract with Aerotron covering support of hydraulic components and avionics for an estimated 50 Airbus aircraft. Work will be performed in two Messier facilities (France and the UK) until 2013, with an automatic 12-month renewal period. ST Aerospace will provide maintenance-by-the-hour component support to Cimber Sterling A/S beginning in June. The five-year, $18 million contract covers support and access to a stock of rotables on an exchange basis in support of its fleet of five 737NGs.
Navtech signed contracts with flydubai (three-year deal for its Airport Analysis data product), Aero Contractors Nigeria (for its new flight planning product WebFP and an FMS navigation data service) and Etihad Airways (three-year subscription to FMS, to be used on its fleet of A320s).
Qantas Friday became the latest customer to cancel and/or postpone orders for the Dreamliner, reaching an agreement with Boeing to drop orders for 15 787-9s scheduled for delivery in 2014-15, reducing its order book for the aircraft to 50, and also deferring 15 787-8s by four years.
Sabena technics and Al Wazzan Group will set up a joint venture to provide MRO services to operators in the Middle East from Kuwait City. The MRO facility will offer proximity services such as line, light and heavy aircraft maintenance, pooling and logistics support. The investment will include a new hangar that is expected to be operational next year. The JV's first customer will be Kuwait-based premium carrier Wataniya, which already is supported by Sabena technics.
The US National Transportation Safety Board last week said it is investigating two recent incidents involving A330s operated by TAM and Northwest Airlines in which the airspeed and altitude indications "may have malfunctioned." NWA is a unit of Delta Air Lines. Both aircraft landed safely. Such malfunctions are suspected in the May 31 loss of an Air France A330-200 ( ATWOnline, June 10).
The Clickair/Vueling merger is expected to be completed by mid-July, when the combined entity will start flying under a unified designator code and a single name (Vueling) and all Clickair assets will be transferred to the listed Vueling Airlines company.
Austrian Airlines Group may have to extend its cost-cutting program aimed at reducing spending by €225 million ($314 million) and will look for additional savings by lowering capacity and expanding work-hr. reductions among other actions, Executive Board member Peter Malanik told ATWOnline. The original cost-saving plan will not be enough owing to the severity and duration of the economic downturn, he explained. "We cannot say if, and maybe when, we [will] have to lay off people," he said. "We are in talks with the unions about possible solutions."
Air France Industries and KLM Engineering & Maintenance are confident they will be able to maintain a positive operating result this year despite the downturn in the airline industry and consequent contraction of MRO contracts. "It will be a challenge, and results could be affected by the currency exchange rates, but we believe we are well positioned to sustain our operational performance," AFI President Alain Bassil told ATWOnline at the Paris Air Show earlier this month.
Pratt & Whitney cut 200 salaried positions across its US-based operations (including approximately 170 in Connecticut) this week as part of a restructuring initiative announced in March by parent United Technologies ( ATWOnline, March 30). "It is clear that this is not a short-term economic downturn. Engine orders as well as maintenance, repair and overhaul activities are lower, requiring us to make difficult decisions," the company said.
International Aero Engines President and CEO Jon Beatty said the V2500, which had a "slow start" in China because it was not the first engine available for the A320, will gain traction now that it is powering nine of the first 10 aircraft assembled at the new Tianjin FAL. Its first was delivered Tuesday to Sichuan Airlines ( ATWOnline, June 24). "I see growing potential here in China," he told ATWOnline. The Chinese government has ordered 600 A320s for delivery in four blocks.
Goodrich Corp. opened a 50,000-sq.-ft. facility at Tianjin Airport Industrial Park to support nacelle and thrust reverser original equipment as well as MRO activities. In addition, it will support "engine buildup and podding work" for the new A320 family final assembly line in Tianjin. The facility will serve as an interim location until Goodrich opens a permanent 170,000-sq.-ft. complex directly across from the FAL.
British Airways said that 6,940 employees, about 17% of its total workforce, have agreed to either unpaid leave, part-time work or unpaid work in a move that will save the airline up to £10 million. CEO Willie Walsh called it "a fantastic first response." Unpaid leave/work was available for 1-4 weeks, with the pay deduction spread over 3-6 months.
Air China launched its Hubei branch company yesterday, officially abandoning its pursuit of East Star Airlines and opening service from Wuhan to Guangzhou, Hangzhou and Shenzhen. CA is basing six aircraft at Wuhan and plans to introduce another half-dozen by year end, by which time it will have launched service to Xi'an, Urumqi, Nanjing, Shenyang, Macau (July) and Taipei (August).
Air France said yesterday that the body of Flight 447's captain and that of a flight attendant have been recovered by search crews. So far, 50 bodies have been found from among the 228 passengers and crew aboard the A330-200 that crashed some 360 mi. off Brazil's northeast coast on May 31 ( ATWOnline, June 18).
Royal Air Maroc will pull its own low-cost brand Atlas Blue and launch a regional airline as part of its strategy to fend off competition from no-frills carriers that has increased since the 2006 signing of the open skies agreement between Morocco and the EU.
Aeroflot investor Alexander Lebedev told RIA Novosti that the Russian flag carrier faces significant challenges as a result of the financial crisis and has launched insolvency proceedings for Aeroflot Cargo and is evaluating elimination of Aeroflot Don and Aeroflot Nord. "After the order of six MD-11Fs and three 737 freighters, SU Cargo made a loss of $140 million," Lebedev said, adding that SU plans to dissolve the cargo subsidiary and reintegrate it into the mainline. Freight fell 35.1% in the first quarter.
Cameroon Transport Minister Gounoukou Haounaye told the National Assembly that the government plans to spend CFA100 billion ($210.5 million) for the "purchase of three planes from Boeing," Reuters reported. Aircraft were not identified and will be placed with the new Cameroon Airlines Corp., established to replace defunct Cameroon Airlines. "I cannot give you a precise date when the company will begin flights, but I can assure you that it will be very soon," Haounaye said, adding that a strategic partner will own 51% of the new carrier.
Worldwide Flight Services reached agreement with Continental Airlines to provide cargo warehousing, customer service, mail handling and ramp handling for 45 weekly passenger flights and two cargo flights to/from Honolulu.
Delta Air Lines' credit facility rating was downgraded yesterday by Fitch Ratings, which cited "the continued erosion of the airline's near-term cash flow generation" and the expectation that it will "report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand."
Air India announced formation of a "turnaround committee" comprising management and union representatives who will "make presentations identifying areas where savings can be effected." The Indian government told the airline this week that aid will be tied to performance improvements ( ATWOnline, June 25).
IATA said yesterday that May passenger and cargo traffic figures revealed a stabilization in demand declines but warned that airline revenue is still falling sharply. "We may have hit bottom, but we are a long way from recovery," DG and CEO Giovanni Bisignani said. "Capacity is not aligned with demand." He said that following a 20% fall in international passenger revenue in the first quarter, "we estimate that the drop accelerated to as much as negative 30% in May. This crisis is the worst we have ever seen."
