Boeing delayed 787 first flight, expected to take place this week, again yesterday, citing "a series of relatively small areas" on both sides of the aircraft's body in the "upper wing join area" that registered stress levels during static testing that "exceeded expectations."
Clear program, which offered passengers the opportunity to speed through designated security lanes at 18 US airports for a $200 annual fee, abruptly ceased operations Monday night. Parent Verified Identity Pass said on its website that it "has been unable to negotiate an agreement with its senior creditor to continue operations" and that it "will continue to secure [customer data] and will take appropriate steps to delete the information." However, it said it could not issue refunds "because of its financial condition."
Republic Airways Holdings has offered to buy bankrupt Frontier Airlines Holdings for $108.8 million, which if approved would allow Frontier to exit bankruptcy and increase Republic's stable of carriers.
US Air Transport Assn. said yesterday that US airline passenger revenue dropped 26% year-over-year in May, the seventh straight month of decline. The number of passengers traveling on US airlines fell 9.5% year-over-year while the average price to fly 1 mi. decreased 17.6%. "Revenue declines extended beyond the mainland United States to the transatlantic, transpacific and Latin markets," ATA said.
Ryanair will "freeze growth" at its nine UK bases "with immediate effect" in response to a drop of 4.5 million passengers at BAA's seven UK airports through the year's first five months. The LCC blamed both the airports operator and the country's £10 ($16.43) air passenger duty for the decline.
SkyEurope Airlines received court permission to operate and reorganize under creditor protection, during which it will continue to fly its full schedule. CEO Jason Bitter said the LCC will operate "without disruption" and that suppliers "will be fully paid" during the restructuring period, which was not defined. It appointed Reynolds Partners to help it secure new investment.
British Airways will press ahead with the launch of its new business class-only service between London City and New York JFK, setting Sept. 29 as the date of the first flight. There will be a daily return service except Saturdays when LCY is closed, and flights will increase to twice-daily from mid-October. Tickets go on sale today. "In the harshest trading environment airlines have experienced, we believe it is more important than ever to embrace the future and innovate. That is what this historic new route is all about," CEO Willie Walsh said.
Lufthansa took significant steps toward its acquisition of both bmi and Brussels Airlines yesterday, resolving a financial dispute with the former and receiving European Commission approval for the latter. LH announced an out-of-court settlement with the UK company regarding its purchase of Chairman Michael Bishop's 50%-plus-one-share stake, a transaction placed in jeopardy last month when Bishop took LH to court over the German company's demand for a recapitalization ( ATWOnline, May 22).
Austrian Airlines Group flew 1.38 billion RPKs in May, down 18.8% year-over-year, against a 13.9% fall in capacity to 1.95 billion ASKs. Load factor slipped 4.2 points to 70.8%. Norwegian said May unit revenue fell 2% year-over-year to NOK0.46 (7.17 cents) while yield was steady at NOK0.59. It flew 909 million RPKs during the month, up 19%, against a 21% increase in ASKs to 1.18 billion. Load factor fell 2 points to 77%.
The Japanese government is preparing to extend a loan of approximately ¥100 billion ($1.04 billion) to Japan Airlines, Finance Minister Kaoru Yosano said. Speaking to reporters yesterday, Yosano said he received a request from Transport Minister Kazuyoshi Kaneko for the loan through the Development Bank of Japan. "We hope to cooperate through DBJ loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said.
European Cockpit Assn. and US Air Line Pilots Assn. warned they will "not be in a position to support" any further negotiations on a second-stage open skies agreement between the EU and US if their bargaining rights are not "rebalanced." The statement coincides with a new round of negotiations starting this week.
Air India announced the formation of a four-member committee that will examine its labor agreements and identify INR5 billion ($102 million) in annual savings. AI said employee costs currently exceed INR30 billion per year. "Besides reduction in wage cost[s], Air India is also looking at improving productivity of employees, elimination of restrictive work practices and reducing wasteful expenditure," it said. The committee will issue its report by July 15.
Airbus CEO Tom Enders and Airbus China President Laurence Barron told ATWOnline yesterday in Tianjin that the financial commitment involved in establishing the manufacturer's new final assembly line is taking a back seat to its effort "to build a Chinese identity for Airbus."
Joy Air, the joint venture launched by AVIC and China Eastern Airlines in the spring of 2008, will begin operations next month following the arrival of two MA60s Sunday. The Xi'an-based carrier signed a contract for 13 MA60s at last November's Zhuhai Air Show and plans to acquire 50 of the type, plus 50 ARJ21s, within the next eight years ( ATWOnline, April 27).
US Airways will launch daily Charlotte-Honolulu service Dec. 17 aboard a 767. Alaska Airlines will launch daily San Jose-Austin service on Sept. 2 aboard a two-class 737-800.
Air Canada and flight attendants represented by the Canadian Union of Public Employees reached agreement on a 21-month labor agreement extension, finalizing the carrier's effort to secure "labor stability" and pension relief from its workforce ( ATWOnline, June 17). "These tentative agreements will allow us to move forward to the next milestones--obtaining the necessary governmental measures and approvals for the pension funding arrangement and raising new financing.
Singapore Airlines and Air Line Pilots Assn.-Singapore reached an agreement under which pilots will take one day of leave without pay each month and a cut of 65% from an additional day's pay effective July 1. The groups reached a similar deal in May that now is superseded ( ATWOnline, May 5). SIA plans to decommission 16 aircraft and cut capacity by 11% during the current fiscal year ending March 31, 2010.
BAE Systems Asset Management announced the sale of one BAe 146-100 and three ATPs to Miami-based lessor Regional One. The three ATPs are on operating lease with SATA Air Acores.
Qantas A330 flying from Hong Kong to Perth Sunday night encountered "severe turbulence" that resulted in the hospitalization of six passengers and one crewmember with "minor injuries," the airline confirmed. All were soon released. "The aircraft most likely encountered what is known as convective turbulence, which led to it rapidly gaining around 800 ft.
Virgin Atlantic Airways and AerCap yesterday announced a deal that will see 10 A330-300s join the fleet in 2011-12 as the carrier moves to fill the gap caused by the delayed introduction of its 15 787-9s, now scheduled to begin arriving in 2013.
Iberia Maintenance signed a three-year engine MRO agreement with Russia's Yakutia Airlines covering two Rolls-Royce RB211-535-E4s and a contract with India's Blue Dart Aviation for MRO on three RB211-535-C37s powering its 757-200 freighters.
The Argentine government outlined its plans to "modernize" newly nationalized Aerolineas Argentinas and Austral Lineas Aereas in a statement released Friday and indicated its commitment to a long-haul Airbus order. The airlines were brought under state control six months ago ( ATWOnline, Dec. 22, 2008). AR recently took delivery of a new 737-700, the first new aircraft purchased for the carrier in 16 years. A second will arrive before July and nine "similar aircraft" will be added on lease this year.
University of Queensland students won Airbus's inaugural "Fly Your Ideas" challenge at last week's Paris Air Show for a project looking into the use of the castor plant to develop the first single-plant-based composite material for aircraft cabin components. Project's goal was to reduce dependency on nonrenewable sources and improve end-of-life disposal. A feasibility analysis entailing fiber production and testing was conducted that demonstrated "encouraging mechanical and environmental properties," Airbus said. The three students won a €30,000 prize.
