Owing to the global economic downturn and the depression in the cargo market, China Southern Airlines has decided to postpone the launch of its cargo joint venture with Air France KLM, according to CZ Chairman Si Xianmin. "Based on the original plan, our cargo JV with AF KLM should have been launched in the first quarter. But we have to reconsider this plan after taking the current market situation into account," Si said.
Islandbanki, formerly Glitnir, increased its share of Icelandair Group to 47% from 5%, both the bank and the airline announced yesterday. The parties said the move "will not affect the daily operations of the company" and that Islandbanki will sell the stake "in an open and transparent sales process as soon as possible." The shares acquired yesterday were pledged as security for loans to finance other shareholders' investment in Icelandair.
Singapore Technologies Aerospace announced the acquisition of Precision Products Singapore for S$7.7 million ($5.2 million). Shares were purchased from Precision Products Singapore, Nippon Precision Casting, Renaissance Capital Management and Singapore Technologies Industrial Corp. PPS manufactures casting and mold toolings for customers in the aerospace, defense, commercial and oil and gas industries.
American Eagle will launch four-times-weekly Los Angeles-Roswell flights on Aug. 25 aboard an ERJ-140. Yangtze River Express will extend its Shanghai-Los Angeles freighter service to Dallas/Fort Worth four-times-weekly beginning May 22. VLM Airlines suspended Manchester-London City service last week, stating the route has been "heavily loss-making" and was "impeded by unfair competition from a subsidized rail network and airline ticket taxes that often make up over 50% of the overall fare."
The first A320 assembled outside Europe successfully completed its inaugural flight yesterday, taking off from Tianjin International in the morning and landing safely a little more than 4 hr. later. The aircraft assembled at Airbus Final Assembly Line China was ordered by Dragon Aviation Leasing and is set to be delivered in June to Sichuan Airlines. "This A320 assembled in China unquestionably demonstrated the same quality and performance as those assembled and delivered in Hamburg or Toulouse," Airbus Senior VP-Flight & Integration Tests Fernando Alonso said.
AeroLogic, the joint venture between Lufthansa Cargo and DHL Express, took delivery of the first of eight 777-200Fs last week. A second aircraft is due in July, with the next two scheduled for December delivery. It plans to operate all eight by December 2010 and said it is considering adding more 777Fs over the next two years. The first scheduled flight is set for June 29.
Turkish Airlines flew 10.7 billion RPKs during the year's first four months, up 10.7% from the year-ago period. Capacity climbed 17% to 15.9 billion ASKs and load factor fell 3.9 points to 67.2%. Air Canada and Jazz flew a combined 3.83 billion RPMs in April, a 4.1% decline from the year-ago month. Capacity dropped 2.2% to 4.73 billion ASMs, lowering load factor 1.6 points to 81.1%. EasyJet transported 3.8 million passengers in April, up 6.3% year-over-year, while load factor rose 4.2 points to 84.2%.
Southwest Airlines cabin staff represented by the Transport Workers Union ratified the four-year labor agreement reached in Mach. Contract covering more than 9,700 flight attendants runs through May 2012 ( ATWOnline, March 30).
Thales will supply two RealitySeven full flight simulators to Turkish Airlines under a contract announced last week. The FFS features a common core element that allows various aircraft modules to be "swapped out." THY's simulators will be compliant with the A320 and A330/A340.
Emirates said it was "surprised at the revelations" in the EU report last week regarding the online ticket sales "blacklist" on which it was named as one of 12 airlines not fully complying with all transparency and clarity requirements for selling tickets via its website. "As a responsible international company, Emirates adheres to all regulations and requirements of the countries in which we operate," Divisional Senior VP-Commercial Operations Worldwide Richard Vaughan told ATWOnline via e-mail.
Lufthansa Technik and eJet Services said they will expand their existing relationship offering comprehensive maintenance and operating support for private VIP-converted CRJ aircraft to include air transport CRJs operated by smaller airlines. Program will be expanded to other types as well. Launched in 2008, the joint program offers low-utilization and small-fleet operators "a comprehensive, global package of nose-to-tail maintenance and operating support."
Air Astana confirmed plans to expand significantly its Central Asia network including more cities in southern Russia and neighboring countries. Two leased E-190s scheduled for delivery in early 2011 will enable growth, President Peter Foster said, adding, "We identified enormous opportunities to expand further over the next five years with a new network." Air Astana currently operates to 22 domestic and 21 international destinations from its hubs in Almaty, Astana and Atyrau.
Turkish Airlines posted a 24% first-quarter net income increase to TRY155 million ($98.5 million) on a 17% rise in revenue to TRY1.28 billion. Passengers carried lifted 8% to 4.9 million and cargo transported rose 7% to 48,000 tons. Passenger traffic heightened 9% on a 15% lift in capacity. Load factor fell 3.7 points to 66.1%. THY said lower fuel prices are "a positive signal" and it believes it can "sustain positive results for the coming periods."
Boeing planned to start the Trent 1000 engines yesterday on its first 787 test aircraft and is finalizing a deal with Qantas to avoid Dreamliner deferrals. ZA001, which spent last week completing its fuel tests along with an APU start, was due to leave the fuel dock Saturday to be moved to the flight line. ZA002, the second flight test aircraft, was rolled out of the paint hangar last week in ANA colors, although ANA's first 787 is slated to be ZA007.
Gol reported first-quarter net income of BRL61.4 million ($29.1 million), reversed from a net loss of BRL20.5 million in the year-ago period, despite a 5.4% drop in revenue to BRL1.52 billion. The carrier said its profit resulted from lower fuel costs, "cost control and yield management" and synergies from Gol/Varig "operational consolidation" ( ATWOnline, Oct. 13, 2008). Expenses lowered 9.2% to BRL1.41 billion and operating income more than doubled to BRL105.1 million from BRL49.2 million last year.
Singapore Airlines blamed a severe deterioration in operating conditions in its fiscal fourth quarter ended March 31 and losses on fuel hedges for a 48.2% drop in its fiscal full-year net profit to S$1.06 billion ($722.9 million).
OAG Cargo Solutions signed an agreement with IBS Software Services to develop AFRA-2, its next-generation Air Freight Rates application. The application enhances interaction between airlines, GSAs and freight forwarders on the distribution, management and selection of real-time airfreight rates.
VivaAerobus will cease service June 1 at Austin-Bergstrom, where it operated flights to Cancun and Puerto Vallarta. Due to "the unfortunate outbreak of the swine flu virus," cancellations have risen to "unprecedented" levels, it said.
US Airways Group said last week that it expects to raise $234 million, up from $150 million, in aggregate net proceeds from the sale of common stock and convertible notes after underwriters exercised in full their options to purchase additional securities to cover overallotments ( ATWOnline,May 7).
US Air Transport Assn. forecast that US airline passenger traffic will decline 7% between June 1 and Aug 31 compared to the 2008 summer, amounting to a drop of about 150,00 passengers daily. It said domestic passengers carried will fall 7% while international passengers will dip 6%. "The main driver behind the anticipated drop in passengers traveling this summer is the ongoing global recession, which continues to crimp demand," President and CEO James May said.
The European Commission last week approved Lufthansa's proposed acquisition of bmi, stating that the transaction would not affect competition between airlines in the European Economic Area or within any substantial part of it. The EC noted that LH and bmi already cooperate on many routes because both are members of Star Alliance. It added that its investigation showed LH would be "unlikely" to start operating flights on those routes on which it currently only markets flights operated by bmi and vice versa.
Ancra International signed a long-term agreement with Israel Aircraft Industries to supply 767-300 and 737-400BDSF Main Deck Cargo Loading Systems as buyer-furnished equipment.
