US Bankruptcy Court judge Friday blasted Mesa Air Group's plans to re-brand its Hawaiian inter-island subsidiary go! as Aloha Airlines and refused to approve Yucaipa Cos.' purchase of Aloha Airlines' intellectual property rights. Yucaipa, the former controlling shareholder of Aloha, outbid Hawaiian Airlines in a bankruptcy auction (it paid $750,000) last week for the rights to the Aloha name and, under on an agreement it reached with Mesa ( ATWOnline, Dec. 2), go!
SkyEurope Airlines reported a €59.4 million ($75.4 million) loss in the fiscal year ended Sept. 30, more than double the €24.1 million suffered in the prior year, as benefits from a restructured and streamlined network failed to materialize in time to offset record fuel costs.
The chairman of Okay Airways' controlling shareholder Juneyao Group, Wang Junjin, promised Friday that the troubled airline will resume flying "as soon as possible" following a one-month shutdown imposed by CAAC. China's first privately run carrier, launched in 2005, Okay announced last week that it will suspend passenger transport for one month starting Dec. 15 owing to conflicts between Juneyao and airline management. Okay's cargo cooperation with FedEx will continue to operate as usual.
Abu Dhabi Aircraft Technologies will provide Dubai-based Silver Air with MRO services on three 737-200s and a 737-300 under a Total Care Solution agreement.
US Air Transport Assn. announced the election of United Airlines Chairman, President and CEO Glenn Tilton as chairman, effective immediately. He will serve two years and succeeds former Northwest Airlines Chairman and CEO Doug Steenland. CFM International named Chaker Chahrour executive VP, effective Feb. 1. He is currently head of sales and pole executive for GE Aviation in the Asia/Pacific based in Singapore. He will succeed Bill Clapper, who will be on special assignment as he transitions to retirement later in 2009, CFM said. Chahrour joined GE Aviation in 1979.
Turkish Aerospace Industries reached a $500 million deal with Airbus to produce parts for A350s. Agreement will create 400 direct jobs and indirectly employ 1,200, the companies said.
Finnair said the one-week closure of Bangkok Suvarnabhumi (see story above) will cost the carrier approximately €4 million ($5.1 million), with "consequential effects. . .expected to increase the final cost total further."
Chamber of Deputies, the lower house of the Argentine congress, approved a bill Wednesday to expropriate Aerolineas Argentinas, calling it a "public utility." It is expected to be passed by the Senate this month. AR owner Grupo Marsans has threatened to make a $1 billion claim at the World Bank's arbitration tribunal if the expropriation goes ahead ( ATWOnline, Nov. 25).
Bombardier Aerospace reported a 3.5% increase in operating profit to $199 million for its fiscal third quarter ended Oct. 31 despite a 4.2% decline in revenue to $2.3 billion.
Bangkok Suvarnabhumi will be "open for full services including check-in and immigration" today, Airports of Thailand said yesterday, but foreign governments and airlines warned that the airport may not be ready to resume operations safely. After a one-week siege by antigovernment protesters shut down BKK ( ATWOnline, Dec. 4), leaving more than 200,000 foreign passengers stranded in Bangkok and stalling international cargo transport, Thailand is eager to get the capital's main airport up and running.
British Airways faces some turbulence in its bid to take major equity stakes in both Iberia and Qantas, with IB CEO Fernando Conte claiming that BA's ambitions are "too complex." Speaking Wednesday at an Aviation Club lunch in London, Conte reportedly argued that it would be "more reasonable" and "more rational" for BA to focus on intra-continental consolidation before trying to strike a transcontinental deal. He also revealed that BA CEO Willie Walsh told him about the Qantas discussions only an hour before the UK carrier publicly confirmed them.
A US-EU Open Aviation Area that would include a relaxation of US foreign ownership and control restrictions "is not going to happen in the near term," US Dept. of State Deputy Assistant Secretary for Transportation Affairs John Byerly cautioned yesterday, adding, "I don't see any changes coming to cabotage, for example."
Denmark's Cimber Air acquired bankrupt Sterling Airlines' operating certificate, slots and brand, among other assets, and plans to relaunch the carrier and extend its European presence. Purchase does not include aircraft, leases of which will be negotiated with present owners. Cimber plans to put two 737s back into service in January and 6-8 in the long term. It will operate the airline under the Sterling name and said it hopes to rehire a portion of Sterling's former workforce.
French Bureau d'Enquetes et d'Analyses, responsible for investigating aviation accidents, said it cannot explain why an Air New Zealand A320 crashed into the Mediterranean Sea on approach to Perpignan on Nov. 28 ( ATWOnline, Dec. 2). "At this stage of the inquiry, nothing explains why the aircraft left its trajectory and crashed into the sea," BEA said in a statement.
Boeing is set to announce the fifth delay to its 787 program, with first flight expected to be pushed back to the second quarter of 2009 and insiders suggesting the aircraft will lift off in late May. The new delay, first revealed by ATWOnline on Oct. 30, is expected to be confirmed by the manufacturer late next week ahead of its third-quarter results announcement on Dec. 15.
Compagnia Aerea Italia's purchase and relaunch of Alitalia received final approval by Italian and European competition authorities yesterday, with the former stipulating that at least 10% of seats on each flight be available at the "cheapest price." Those fares would be based on the lowest prices offered by AZ and Air One in the previous travel season. The Italian authorities also reserved the right to issue an additional ruling once CAI chooses either Lufthansa or Air France KLM as its foreign investor.
UK government delayed its decision on building a third runway at London Heathrow until January. The consultation process closed Nov. 9 and a decision was expected this month.
In an effort to win support from Aer Lingus shareholders, particularly the Irish government and employees who hold 25.1% and 14.2% stakes respectively, for its renewed all-cash takeover offer, Ryanair yesterday committed to recognizing EI's unions, restoring daily Shannon-London Heathrow service and ceding control of EI's LHR slots to the government.
Sun Country Airlines received US Bankruptcy Court approval for a line of credit that will allow it to restore employees to full pay and meet other financial obligations. The Minneapolis-based carrier, which is working its way through Chapter 11 restructuring ( ATWOnline, Oct. 20), was paying workers just 70% of their salaries. SCA did not reveal the origin of the debtor-in-possession financing, but news reports named Elite Landings, another subsidiary of SCA parent Petters Group Worldwide.
United Airlines said 1,190 of the 7,000 workers it plans to cut by the end of 2009 ( ATWOnline, Oct. 9) will be laid off early next year. It did not break down the cuts, but the Chicago Tribune reported that 700 mechanics and 490 customer service representatives will be let go beginning Jan. 11. UA said the layoffs "are part of the difficult but necessary actions we are taking to enable United to compete."
Lufthansa's supervisory board yesterday approved the acquisition of Austrian Airlines Group, starting with the purchase of state holding company OIAG's 41.56% share for €366,000 ($463,000). LH said it also will issue a debtor warrant potentially worth up to €163 million, "depending on Austrian Airlines' economic performance and the Lufthansa share outperforming its competitors."
GE Capital estimates a pre-tax exposure of $300-$550 million for megalessor GECAS owing to the anticipated traffic downturn in 2009. In an investor presentation this week, GE Capital estimated that a 1%-2% decline in global airline traffic would result in the smaller exposure, while the "downside case" assumes a 3% decline in RPKs and the liquidation of two airlines, resulting in the higher figure. GECAS represents 7% of GE Capital's assets. Its aircraft portfolio is worth $47 billion and it has earned $6 billion since 2001, according to the parent.
Transaero took delivery of the second of 10 Tu-214s it will lease from Financial Lease Co. under a 2005 contract. Aircraft will seat eight in business class and 186 in economy and will enter service early next year on medium-haul flights to Spain, Egypt, United Arab Emirates and Uzbekistan. The first PS-90A-powered aircraft entered the fleet in April 2007.
Jet Airways said that all employees earning a gross salary of more than INR75,000 ($1,473.15) per month will take a "graduated wage cut" over the next 12 months as part of an effort "to cover the challenges faced. . .due to the current economic slowdown worldwide." Pilot givebacks will comprise a wage cut and allowance rationalization. "Top management" has taken a voluntary 25% pay cut effective this month ( ATWOnline Oct. 20).
