Austrian Airlines CEO Alfred Oetsch told ATWOnline that the carrier is expecting a "single-digit" drop in passengers next year and that further adjustments in capacity and costs are possible if demand continues to fall, including moving some workers to part-time status, but he ruled out layoffs. However, he said the company is facing declining traffic "in all classes" ( ATWOnline, Dec.
Brussels Airlines is considering repositioning itself again as a full-fledged network airline and reintroducing a business class on its European network, steering away from the "new generation carrier" concept introduced in March 2007 when it merged the operations of full-service SN Brussels Airlines with low-cost Virgin Express, a company source told ATWOnline.
A J Walter Aviation signed a three-year power-by-the-hour contract with Viking Airlines covering two 737-800s. The carrier plans to acquire two additional -800s next year and by 2011 operate 11 of the type, according to CEO Christian Tadjeran. MNG Technic reached a five-year MRO deal with airBaltic to provide C checks on 737s. Contract also covers the carrier's technical training requirements.
HNA Group subsidiary Grand China Express Airlines is expected to receive a CNY200 million ($29.1 million) injection from the Tianjin municipal government following the signing of an agreement yesterday. GCEA has been suffering from operating losses and struggling to survive since its March 2007 launch owing to the "immaturity of the Chinese regional market," spokesperson Cui Kai told ATWOnline.
Air Berlin named German Federal Ministry for Transport, Construction and Urban Development Secretary of State Matthias von Randow as its new director-global traffic rights & political affairs. Von Randow also was a member of Fraport's supervisory board.
Southwest Airlines reached a sale and leaseback deal with an unnamed lessor for 10 737-700s. Under the agreement's first tranche closed yesterday, SWA sold five -700s for "approximately" $175 million and immediately leased them back for 12 years. It will make monthly payments of around $7.8 million during the first six months of the leases, with the amount scheduled to reset every six months based on the six-month LIBOR rate. In the first quarter of 2009, SWA will sell the five remaining -700s and lease them back for 16 years under "similar terms."
Datalex reached agreement with Aer Lingus to provide its Travel Distribution Platform offering "flexi" fare customer pricing and service options expected to enhance ancillary and merchandising business.
AirBridgeCargo Airlines reported sales of $423 million through the first 11 months of 2008, up 55% year-over-year. Traffic rose 31% to 121,000 tons of cargo.
Qatar Airways took delivery of its fifth 777-300ER yesterday. Aircraft will seat 335 passengers with 42 in business class and 293 in economy and will be used on QR's 11-times-weekly Doha-Manila service. The carrier has firm orders for 14 -300ERs, six 777-200LRs and seven 777-200Fs with deliveries scheduled through mid-2010.
Libyan authorities rescinded permission allowing Swiss International Air Lines to serve Tripoli. A Swiss spokesperson said the carrier was informed that "technical reasons related to a project for Tripoli airport" was the cause, although widespread speculation has pointed to strained relations between the countries that began when a son of Libyan leader Muammar Gaddafi was arrested last summer in Geneva.
British Airways placed a firm order for six E-170s and five E-190SRs, plus options on a further three 190SRs, for its wholly owned BA CityFlyer regional subsidiary. The firm aircraft are worth $376.5 million at list prices "based on January 2008 economic conditions," and the deal could reach $489 million if all options are confirmed, Embraer said.
Iberia flew 3.95 billion RPKs in November, a 10.6% decline from the year-ago month. Capacity dropped 7.7% to 5.12 billion ASKs and load factor fell 2.5 points to 77.1%. Austrian Airlines Group flew 1.31 billion RPKs in November, down 6.7% year-over-year, against a 5.7% drop in ASKs to 1.81 billion. Load factor was down 0.8 point to 72.8%. Copa Airlines flew 484.2 million RPMs in November, up 15.3% from the year-ago month. Capacity rose 17.1% to 627.1 million ASMs and load factor fell 1.2 points to 77.2%.
Atlas Air and Polar Air Cargo flight crew voted to join the International Brotherhood of Teamsters, the union announced. They formerly were represented by the Air Line Pilots Assn. IBT said Air Canada's 650 US-based customer service employees voted to ratify a three-year labor agreement that will take effect July 1. In addition, 123 Frontier Airlines aircraft and maintenance cleaners represented by IBT ratified a deal providing wage concessions through Dec. 12, 2012.
Five passengers remained in the hospital yesterday as the US National Transportation Safety Board's Go Team continued to investigate the Saturday evening crash of a Continental Airlines 737-500 that veered from Denver International Airport's runway 34R while on its takeoff roll, crossed a field and a taxiway, careened down a 40-ft. hill and caught fire.
US FAA's decision to downgrade Israel's aviation safety standard to Category 2 ( ATWOnline, Dec. 22) marked a "black day for Israeli aviation," El Al COO and Acting CEO Lior Yavor said, according to Israeli press reports. "We at El Al expect the Israeli government and the Knesset to take full responsibility for this serious decision, and to immediately and fully share in the costs accruing to Israeli airlines as a result, including the financing of security, which the government promised months ago.
Lufthansa Cargo announced a 10% capacity reduction from Jan. 1 in response to the decline in the global cargo business and a "distinct falloff in demand." It will suspend the wet-lease of two MD-11Fs and one 747-400F from World Airways and transfer those routes to 747-400ERFs operated by Jade Cargo International, in which LH holds a minority stake. LHC will continue operating its 19 MD-11Fs and, from the middle of next year, also will have access to capacity onboard newly delivered 777-200LRFs operated by AeroLogic, its joint venture with DHL Express.
US Dept. of Transportation said it will "work with carriers" to implement voluntary reductions in scheduled operations at New York LaGuardia to 71 per hr. from the current 75 during next year's summer schedule. "We want to use every tool at our disposal to help passengers stuck with this grueling congestion," Secretary Mary Peters said. DOT's plan to conduct slot auctions was put on hold by a US Court of Appeals ruling two weeks ago ( ATWOnline, Dec. 10).
Southwest Airlines said yesterday that it submitted an application to the US Dept. of Transportation for Canadian route authority, which is required in order to implement its codeshare agreement with WestJet ( ATWOnline, July 9). SWA said it hoped to receive approval next quarter and that it had no intention to fly to Canada with its own aircraft "at this time."
Boeing won approval from US FAA for its scheduled maintenance program defining tasks and intervals that operators will use to upkeep the 787 properly. Approval is one of the many requirements needed to certificate the aircraft.
Virgin Atlantic Airways is not interested in acquiring bmi regional or bmibaby and is negotiating with Lufthansa solely about the acquisition of bmi's mainline operation at London Heathrow, Virgin CFO Julie Southern confirmed to ATWOnline.
Aer Lingus will resume its Shannon-London Heathrow service with twice-daily flights beginning March 29. It closed the route in January ( ATWOnline, Aug. 8, 2007) but said recent cost-saving measures agreed to by EI staff at SNN, Cork and Dublin ( ATWOnline, Dec. 11), along with a "new deal" on charges with the Shannon Airport Authority and a fall in fuel prices, have prompted it to restart service.
News from Travel Technology Update: There's no way to prettify it: 2008 has been an annus horribilis, probably the worst economic mess since the Great Depression of the 1930s. It was a year dominated by the three Fs: fuel, fees and fear.
Air Tanzania suspended operations following the Dec. 8 suspension of its AOC by the Tanzania Civil Aviation Authority, which said the move was a "precautionary but very necessary action to avoid the possibility of the airline compromising flight safety." It said TC's aircraft were airworthy and that passenger safety never was at risk, and that the carrier has submitted "about half" of the documentation required for recertification.
