China Eastern Airlines is looking to drive load factors by making it easier and more economical for potential passengers to connect. CEA said its point-to-point network has made it difficult to attract more passengers in a declining market, so it has identified some 900 "transit routes" featuring multiple segments between markets that may have growth potential.
Virgin America's poor financial showing has led to speculation that the San Francisco-based startup may be in jeopardy of losing the support of its US-based investors. Founded by impresario Richard Branson and designed to capitalize on the success of the Virgin brand, the airline is majority owned and operated by US investment groups Black Canyon Capital of Los Angeles and Cyrus Capital Partners of New York. Branson maintains a 25% share ( ATW, August 2008).
Jeppesen said Friday that Continental Airlines completed the first flight using the company's Airport Moving Map on a Class 2 electronic flight bag. Jeppesen's Airport Moving Map "uses a high-resolution database to dynamically render maps of the airport," employing GPS technology to show pilots their own-ship position on runways and taxiways, the company said, adding that CO plans to retrofit its 757s and 767s with navAero Class 2 EFBs that will include the Airport Moving Map technology.
Turkish Airlines confirmed Friday that the nine people killed in last week's 737-800 accident in Amsterdam comprised three pilots (including one trainee), one flight attendant and five passengers ( ATWOnline, Feb. 27). THY said it will pay €50,000 ($63,720) to the families of each of the deceased and €5,000-€10,000 to those being treated in hospitals.
Lufthansa announced the submission of its public takeover offer to all shareholders of Austrian Airlines Group for €4.49 ($5.72) per share. Acceptance period runs from today through May 11. LH said the offered share price is approximately 30% higher than the Feb. 26 closing price. LH already has agreed to acquire Austrian state holding company OIAG's 41.56% share in AAG for €366,000 plus an earn-out option that could reach €164 million depending on Austrian's future performance.
V Australia operated its inaugural flight Friday, a Sydney-Los Angeles service that departed at 3 p.m. local time aboard a 777-300ER. The thrice-weekly flights will become daily on March 20. The Virgin Blue subsidiary also will fly to LAX from Melbourne and said it "has set its sights" on serving South Africa ( ATWOnline, Feb. 10). Qantas will launch thrice-weekly Singapore-Mumbai service on June 2.
AirAsia reported a 2008 net loss of MYR471.7 million ($128.3 million), reversed from a MYR697.6 million profit in 2007, but insisted its 2009 outlook is strong because its low-fare model is attracting new traffic and it has "unwound" fuel hedges that weighed down second-half earnings.
Cyprus Airways reported a €1.7 million ($2.2 million) profit in 2008, up 41.7% from the €1.2 million earned in 2007, on a revenue increase of 8% to €311.4 million. It credited fuel surcharges and rising passenger numbers for the boost in turnover. Full-year operating profit plunged 64.8% to €1.9 million from €5.4 million as expenses rose 9.9% to €311.3 million. Fuel costs were up 42.1%. The year-over-year comparison in net results was helped by €3.3 million in finance costs in 2007.
ACG Air Cargo Germany took delivery of its first 747-400SF Friday. The privately held carrier is based at Frankfurt Hahn and plans to use the leased aircraft for charter operations. A second aircraft should follow this spring. First flights will operate to the Middle East, Far East, Russia and Turkey, ACG said.
Ryanair is considering charging passengers £1 ($1.43) to use onboard lavatories, CEO Michael O'Leary told the BBC. "One thing we have looked at in the past and are looking at again is the possibility of maybe putting a coin slot on the toilet door so that people might actually have to spend a pound to spend a penny in future," O'Leary said. A UK CAA spokesperson told The Times that "there is no legal requirement for an aircraft to have a toilet onboard, so if an airline does have a toilet they can charge to use it. Ryanair is legally able to do this."
Airbus confirmed Korean Air's order for six A330-200s ( ATWOnline, Feb. 27), which it said is the first commitment for the new 238-tonne increased takeoff weight version with a 7,300-nm. range. Aircraft will feature seating in three classes and brings KE's total A330 commitment to 16 -300s and nine -200s. KE Chairman and CEO Yang Ho Cho said the order "is part of our ongoing expansion plan and will enable us to open up new long-haul routes. .
Rolls-Royce signed a contract with HNA Group for provision of Trent 700EPs to power Hong Kong Airlines' fleet of 20 new A330s. Contract is valued at $1.2 billion at list prices and includes a long-term TotalCare services agreement. First A330 is scheduled for delivery in 2010. HNA already operates Trent-powered A330-200s and Trent 500-powered A340-600s.
HUNCHED OVER DRAWING BOARDS OR toiling with frames, foam and fabric on workroom floors, designers and manufacturers of cabin seating have a steady stream of work from airlines engaged in that never-ending quest to gain a competitive edge and win the loyalty of coveted premium passengers. Their designs must be innovative as well as functional, while materials must be lightweight, durable and meet stringent certification requirements. Even when times are tough, as they are today, the business remains stable.
BAA is bracing for a final ruling that will force the sale of at least two, and most likely three, of its UK airports. The UK Competition Commission in December "confirmed" that it will require BAA to sell both London Gatwick and Stansted, setting the stage for a breakup of its control of London's airports for which airlines long have pushed.
HAVING CUT most costs as deeply as they can, airlines are looking to regain profitability on the other end, by boosting revenues. United Airlines, for example, has estimated that baggage fees and other add-on charges for meals and seat selection will generate $700 million in additional revenue in 2009.
VIRGIN ATLANTIC AIRWAYS STILL LIKES a bit of flash. Names like James Bond, the pinup girl motif adorning the nose of each aircraft and expressions like "red hot" are part of the makeup of the carrier, which turns 25 this June. But while Virgin has remained true to the fundamentals that marked its launch--foremost among them an exclusively long-haul point-to-point network--its 25th birthday could prove to be a turning point.
The European Low Fares Airline Assn. complained that a new European Commission directive on airport charges will place additional regulatory burdens on airlines and airports at a time of "unprecedented industry crisis" coupled with a global economic recession.
Air Transport Assn. President and CEO James May, commenting on the NationalJournal.com Expert Blog site, stated that "an emissions trading program simply does not make sense for US aviation. Such a program would siphon away the very funds that the airlines need to continue to invest in new aircraft and other advances that are central to our strong environmental record. Instead of working against our efforts through punitive economic regulation, Congress should work in support of them."
Istanbul's Sabiha Gokcen International reported a 15% increase in passengers last year to 4.3 million. Airport officials credited the growth to the addition of new routes, frequencies and carriers. A new terminal, which will increase overall capacity to 25 million, will be completed in October, making SAW a major gateway for both Turkey and Eurasia.
HE LONG-EXPECTED SLOWDOWN IN orders for large transport aircraft finally occurred last year as record fuel prices in the first half followed by the credit collapse and recession reduced the appetite for new lift. Boeing and Airbus received net orders for 1,445 jets, the lowest figure since 2004. In 2007, the two booked orders for 2,754 on a net basis.
Travelport GDS will "temporarily" indemnify travel agents from new surcharges that Air France/KLM intends to impose for bookings made through the Galileo and Worldspan systems. The carrier has said that it will assess a €4.50 surcharge for bookings made through the systems by travel agents in France beginning June 1 and in the Netherlands beginning in mid-July.
KOREAN AIR EXECUTIVE VP-CORPORATE STRATEGY AND PLANNING Kyung Hwan Chang pauses when asked to identify KE executives' primary concern in mapping the airline's direction. After several moments of silence in his office at the carrier's Seoul headquarters, he decides to forego spin and offer candor. "Survival at this point," he admits to ATW, a startling but honest assessment by one of the company's top officials.
Virgin Group Chairman Richard Branson urged all governments to put maximum effort and spare pennies into alternative energy and saving energy. The key from "a global warming point of view is that the demand for dirty fuel will exceed supply in four to five years time," he told Eco-Aviation Today. Speaking during the recent delivery of V Australia's first 777-300ER, he warned that the reality going forward is not good.
After wrangling with the U.S. Department of Transportation, the carrier last week reinstated a "Passenger Usage Fee" of $4.90 each way. Spirit began charging the fee last summer, along with a $2.50 "natural occurrence interruption fee" and an $8.50 "international service recovery fee." A natural occurrence is more commonly known as "weather." The recovery fee aimed to offset the costs of doing business with international destinations.
