IATA DG and CEO Giovanni Bisignani, speaking at the Wings Club in New York last month, reminded governments that the air transport industry needs their leadership to help airlines reduce emissions. "Governments need to stimulate the economy with green investments like biofuel research or with tax breaks for new fuel-efficient aircraft purchases," he said. He also called for a "global approach to climate change."
IT'S BEEN A REMARKABLE RIDE AT AIRTRAN Airways this first decade of the new millennium. While the network carriers downsized and reorganized following 9/11, the Orlando-based LCC made money and won over fliers, in the process racking up impressive increases in capacity. Consider the 2005-07 period: Available seat-miles rose 28.3% in 2005, 23.7% in 2006 and 19.4% in 2007. This kind of growth begets inherent economies as fixed costs are spread over an ever-widening base.
UK-based Origo Industries is working with Liverpool's John Lennon Airport to trial a program in which its Ecobox system will be used to capture CO2 emissions from within the terminal building and recycle them through a "photo-bioreactor" to create an algae-based biofuel to power the airport's ground vehicles and potentially generate electricity.
The EU emissions trading scheme entered into force on Feb. 2, requiring all airlines landing or taking off in EU member states to pay for their carbon dioxide usage through CO2 allowances or carbon credits beginning in 2012. While member states have 12 months to draft the directive into national law, carriers need to lodge a plan that outlines the methodology of fuel burn versus payload data by the end of August.
Airport officials were reminded once again of the dangers posed by wildlife around airports when a bird strike forced US Airways Flight 1549 to ditch in New York's Hudson River on Jan. 15.
AS BOEING STRUGGLES TO GET THE LATEST version of the 747 to first flight, there is more than a touch of deja vu to the situation, recalling as it does events in Seattle 40 years ago this past February when the first 747 took to the air. Across a span of four decades, the company confronts similar issues on the 747-8, as strained engineering resources and delays dog the program again.
Air Algerie/UK named Zoheir Houaoui GM-UK and A. Benabderrahmane station mgr. Airclaims welcomed Paul Jenkins as technical services engineer, Simon Martin as surveyor/project mgr., Ian Cox as powerplant mgr. and James Rust as technician. Airports Council International-North America tapped Jane Calderwood as VP-government & political affairs. Air Southwest appointed Peter Davies MD. ALTA selected Hector A. Chichoni as national immigration counsel. Amsafe chose Terence W. Lyons as president & CEO. ANA elevated Shinichiro Ito to president & CEO.
American Airlines joined the Climate Leaders program of the US Environmental Protection Agency, becoming the first major passenger carrier to enter the program.
A year ago we expressed concern over a growing tendency on the part of certain environmental organizations to "move the goal posts" as soon as the airline industry came close to scoring a green goal. Unfortunately, that habit was fully displayed in the UK last month. On Feb. 5, Adair Turner, Prime Minister Gordon Brown's "environment czar," proposed that one way to reduce carbon dioxide output from aviation is simply to set a limit on how many leisure air trips outside the country UK citizens will be permitted to take.
US airports are set to receive $1.1 billion from the just-passed Economic Stimulus bill, but all the funds must be obligated within the year. The bill restricts expenditures to Airport Improvement Program funding, which must be spent airside on safety and runway improvement projects.
London City saw a 12% increase in the number of passengers in 2008, with a record 3.3 million travelers moving through the Docklands airport. But Chief Executive Richard Gooding is expecting a downward trend in traffic that could be as much as a 10% in 2009. "It's entirely a product of global, financial meltdown," he told AT during a recent interview at LCY.
With all the rhetoric about transforming ATC, equipping aircraft with ADS-B technology and reaching long-term goals (FAA says "a large percentage" of NextGen's benefits will be available in 2018 and the system should be fully in place by 2025), what sometimes gets lost is the main purpose for moving to a more modern system: Reducing day-to-day flight delays and cancellations. Some observers are worried that the agency is so focused on long-term NextGen planning that it is paying too little attention to measures it could take in the near term to improve system efficiency.
Air France KLM, British Airways, Cathay Pacific Airways, Virgin Atlantic Airways and UK airports operator BAA last month announced the formation of the Aviation Global Deal Group, which expressed its support for inclusion of CO2 emissions in a "new global climate deal" scheduled to be discussed at December's UN climate summit in Copenhagen.
The good times didn't last long. Following the comeback of 2007--a year in which the US's 10 largest airlines all were in the black after years of bankruptcies and red ink--2008 proved to be among the most humbling ever for the world's largest air transport market. Carriers were hit hard by soaring fuel costs in the first half, and then hit hard again when oil prices plummeted in the second half of the year to well below airlines' hedging positions. Heavy noncash goodwill impairment charges also weighed down bottom lines.
IN THE 1950S, UNITED AIRLINES AND MANY other carriers proudly proclaimed in major advertising campaigns that their aircraft were fitted with revolutionary weather radar that would eliminate nasty weather surprises, but last year turbulence-related injuries cost the industry $100 million. According to US FAA,turbulence is the leading cause of injuries to passengers and crew in nonfatal airline events. Between 1981 and 1997 there were 342 reports of turbulence affecting major carriers, resulting in three passenger deaths and 80 serious injuries.
Air New Zealand said its foreign exchange hedging program limited the effects of fluctuating fuel prices and the economic downturn as it remained profitable in the fiscal first half ended Dec. 31, reporting a NZ$24 million ($12.3 million) net that was 79% lower than the year-ago result.
Malaysia Airlines reported a MYR245.7 million ($67 million) profit in 2008, a 69.7% decrease from the MYR852.7 million earned in 2007 but a result that MD Idris Jala called "solid" and evidence "that if we set our minds to do the impossible, we can do it."
Shanghai Airlines is expected to receive a CNY1 billion ($146 million) capital injection through the issuance of a nonpublic stock offering to Jinjiang International Holding, its third-largest stakeholder. The move is designed to reduce SAL's debt ratio and relieve some pressure as its financial situation worsens ( ATWOnline, Feb. 6). The carrier said its debt ratio will fall 5.9 points to 85.5% as a result. Last month it warned that its 2008 loss may be double the CNY435 million reported in 2007.
US Dept. of Transportation said its proposed FY10 budget includes $800 million for the Next Generation Air Transportation System and a $55 million increase in subsidies for air service to small communities.
Alaska Airlines yesterday launched a 60-day customer trial of inflight Wi-Fi service in conjunction with Row 44, allowing passengers aboard a 737-700 to use wireless Internet service on their own laptops or other devices. Service initially will be free. "After a successful trial period, the airline will determine the schedule for rolling out the commercial availability of its wireless Internet service to its entire fleet of aircraft," it said.
US National Mediation Board terminated the Aircraft Mechanics Fraternal Assn.'s representation of former Northwest Airlines technical employees, Delta TechOps President Tony Charaf announced yesterday. TechOps will continue to integrate former NWA employees and will bring them up to DL pay scales and premiums at the next pay period. They will be eligible for profit-sharing and rewards programs this year and will shift to DL's benefits programs in January 2010.
Korean Air board has decided to order an additional six A330s. Two aircraft will be delivered next year, followed by two in 2011 and two in 2013. KE currently operates three A330-200s and 16 A330-300s.
United Airlines will begin accepting credit and debit cards for onboard purchases on all flights on March 23 and said it will move to a cashless cabin on domestic and North/Central American flights "after a brief transition period."
Estonian Air will conduct a €7.3 million ($9.4 million) rights issue, according to SAS Group, which holds a 49% stake in the company. SAS said it will participate through the conversion of €2.4 million of outstanding loans to Estonian into equity and an additional €1.2 million cash payment. The Estonian government (34%) and AS Cresco (17%) also will subscribe to their respective proportion of shares. SAS said it still plans to divest its interest in Estonian ( ATWOnline, Feb. 4).
