Boeing sent a notice to all Trent 800-powered 777 operators that both the uncommanded loss of thrust on a Delta Air Lines 777-200ER in November and the dual rollback that led to the British Airways -200ER crash landing at London Heathrow 13 months ago likely were caused by ice in the fuel feed system ( ATWOnline, Dec. 19, 2008).
US federal appeals court ruled yesterday that the US Transportation Security Administration overcharges airlines on screening fees and should reduce the amount of money it collects from carriers annually. While the court said TSA is correct in charging airlines to help cover costs of screening passengers, the agency has misinterpreted laws passed post-9/11 by also charging carriers for costs associated with screening nonpassengers. Twenty-two US airlines jointly filed suit alleging that they overpay TSA by about $100 million per year.
China Eastern Airlines is targeting a breakeven 2010 and a profitable 2011, newly appointed Chiarman Liu Shaoyong said this week, adding that the carrier is open to consolidation and a potential merger with Shanghai Airlines. Liu told reporters, "I don't think it's a bad thing that there is a wide expectation that CEA will merge with SAL," noting that the airlines' cooperation has not extended to negotiations regarding a stake sale or swap.
Qantas yesterday reported a A$216 million ($138 million) profit for the half-year ended Dec. 31, down 65% from the A$618 million earned in the year-ago semester, and announced a A$500 million share placement designed to "enhance financial flexibility."
Etihad Airways CEO James Hogan said the Abu Dhabi-based carrier is pressing ahead with its expansion plans and is on target to achieve "breakeven" financial results by 2010 despite the "rough ride" the global airline industry currently is enduring. Speaking yesterday at an International Aviation Club luncheon in Washington, Hogan said Etihad--launched in November 2003--benefits from having "no legacy [airline] costs. . .We had the ability to start with a clean piece of paper. . .and are still on the upward curve of our expansion."
Saab Aircraft Leasing completed 17 aircraft transactions in 2008, allocating its entire portfolio to customers. Company officials said business was limited only by the number of aircraft available. At year end, SAL's portfolio comprised 125 aircraft leased to 17 clients in 11 countries.
United Airlines pilots represented by the Air Line Pilots Assn. and Aer Lingus pilots represented by the Irish Air Line Pilots Assn. announced a protocol agreement designed to "protect the interests" of pilots from both carriers ahead of the transatlantic partnership scheduled to take effect in March 2010 ( ATWOnline, Jan. 23). Pilots said the initial Washington Dulles-Madrid route will be operated under EI's certificate but will not be flown by either UA or EI crew. "This partnership. .
Air Canada will launch daily service from Calgary to San Diego (May 15, aboard a Jazz Air CRJ700), London, Ont. (June 1 aboard an E-190), Portland, Ore. (June 15 aboard a Jazz CRJ100/200 and Whitehorse (seasonal from June 1 aboard a Jazz CRJ700). Spanair will launch daily Barcelona-Almeria service on May 3. Air Southwest will launch four-times-weekly Plymouth-Guernsey service on April 8. The Plymouth-based regional also named former Caribbean Airlines CEO Peter Davies as MD.
United Airlines flew 8.58 billion consolidated RPMs in January, a 10.9% decrease from the year-ago month. Capacity dropped 10.5% to 11.41 billion ASMs and load factor was down 0.3 point to 75.2%. US Airways said January consolidated passenger RASM fell 2%-4% year-over-year. Traffic was down 6.2% to 4.5 billion RPMs against a 6.8% decline in capacity to 6 billion ASMs. Load factor rose 0.5 point to 75%.
Royal Jordanian does not plan to ground aircraft or abandon routes owing to the economic meltdown, CEO Samer Majali told ATWOnline at oneworld's 10th anniversary event in Madrid. The carrier will take delivery of new A319s this month and next and will launch Brussels service in April as scheduled. "After several years of high double-digit growth in passengers and an even greater increase in revenue, we are planning for a very modest growth this year," he said. He conceded that "modest" could equte to "zero," which he said was a "positive" considering the market downturn.
Oneworld has no plans to change its strategy and remains interested in adding new members only in Brazil, Russia, India and mainland China, Governing Board Chairman and American Airlines Chairman and CEO Gerard Arpey said yesterday at a Madrid marking the alliance's 10th anniversary.
Ryanair Deputy CEO Michael Cawley told reporters yesterday that the LCC is talking with both Boeing and Airbus about placing an order for 300-400 aircraft within the next two years for delivery in 2012-17. It will sell older aircraft to clear some space but eventually is targeting 200 million passengers per year. It transported 57.7 million in 2008 and currently operates 181 737-800s. Cawley said there was no impediment to operating both Boeing and Airbus types; "We're large enough now to run two fleets."
Qantas yesterday suspended trading in its shares pending an announcement on "capital management initiatives," with speculation increasing over a potential effort to raise A$500 million ($319.6 million) or more for a restructuring that could include new executive appointments. QF shares have sunk 6.5% in recent days to A$2.29. There also is considerable speculation regarding a significant ramp-up of its Jetstar Airways operation in both Australia and New Zealand.
Fraport announced the sale of its 65% stake in Frankfurt-Hahn to the State of Rhineland-Palatinate for €1 ($1.28). The state now holds 82.5% of HHN, with eastern neighbor Hesse holding the remainder. Fraport said its divestment largely was related to Ryanair's threat to reduce its operation at HHN if the operator successfully imposed a per-passenger "airport development fee." It said the fee "was an essential prerequisite. . .to make Hahn profitable."
Pratt & Whitney said it completed ground and flight testing of the PurePower PW1000G demonstrator engine, including 27 flights and more than 75 hr. of flight testing on an A340-600 testbed in Toulouse in cooperation with Airbus. "We were able to complete all flight test objectives with flawless engine operation. The Airbus A340 flight test program included engine test evaluations normally conducted for a production engine certification," Pratt VP-Next Generation Product Family Bob Saia said.
Travelport GDS reached content distribution agreements with Xiamen Airlines, China Southern Airlines and China Eastern Airlines to provide Galileo, Apollo and Worldspan subscribers with access to international fares and inventory via its GDS technology.
UPS reported full-year 2008 net income of $3 billion, widened significantly from a $447 million profit in 2007 when its results were skewed by a one-time $6.1 billion pension payment, but nevertheless said it must make "tough decisions" to cope with a "severe decline in economic activity around the world." In what is perhaps a more telling comparison, 2008 income was down 28.6% compared to $4.2 billion in 2006. To counter the difficult financial environment, the delivery giant announced yesterday that it has "consolidated operating districts, reduced air segments and eliminated some
Oneworld Governing Board Chairman and American Airlines Chairman and CEO Gerard Arpey dismissed suggestions that the alliance might fall apart if the application for antitrust immunity for AA, British Airways, Finnair, Iberia and Royal Jordanian or the proposed merger between BA and IB fails. "We are not contemplating anything else than getting immunity, which will enable us to compete on more equal terms with the other alliances," Arpey told ATWOnline at the group's 10th anniversary event in Madrid.
Finnair CEO Jukka Hienonen told ATWOnline at this week's oneworld meeting in Madrid that the airline does not have the flexibility to remain stable during the current market downturn. Finnair was €2.1 million ($2.7 million) in the black through the first nine months of 2008, but it does not expect a positive full-year result.
A stunning SEK6.32 billion ($754.7 million) full-year loss, reversed from a SEK636 million profit in 2007, prompted yesterday's unveiling of a new restructuring initiative dubbed Core SAS that will include a SEK6 billion rights issue and approximately 3,000 layoffs.
Korean Air reported a full-year 2008 net loss of KRW1.96 trillion ($1.4 billion), reversed from a net profit of KRW11.1 billion in 2007, citing the weak won as the biggest contributor to the heavy deficit.
Continental Airlines said January consolidated RASM fell 5%-6% year-over-year. Traffic dropped 11% to 6.43 billion RPMs against a 6.5% decline in capacity to 8.79 billion ASMs. Load factor was down 3.6 points to 73.2%.
