Aer Lingus averted a potential strike ( ATWOnline, Nov. 11) by reaching a framework agreement with the SIPTU union, which represents thousands of EI employees that had voted to take industrial action over EI's cost-saving plan that included significant outsourcing. "This framework would not involve outsourcing," the airline said. "However, until these savings are verified and confirmed by the union, the outsourcing plans remain on the table.
UK Chancellor of the Exchequer Alistair Darling, who had been considering replacing the Air Passenger Duty with a direct "per-plane" fee levied on airlines, yesterday made the surprise announcement that the APD will remain under a new scheme that will impose ascending fees on passengers based on the distance travelled to/from UK airports. Darling explained to parliament that he has developed "a four-band [APD] system ensuring those that travel further and have a larger environmental impact meet that cost. . .This will be effective in reducing emissions from aviation."
Quantum Aviation Solutions will provide Bermuda's L.F. Wade International with its BagScan baggage reconciliation technology under a deal announced yesterday. Contract eliminates upfront implementation costs.
Thales said it is introducing an all-digital TopSeries IFE system for single-aisle aircraft and regional jets. The system can be configured by class of service as an interactive audio-only system, interactive overhead video system or full-functioning in-seat AVOD system. First installation is scheduled for 2009 on an A320 for a Middle East carrier.
Air New Zealand called Australia's competition watchdog "inconsistent" following the preliminary rejection of its proposed codeshare with Air Canada on transpacific routes ( ATWOnline, Nov. 21).
US State Dept. Deputy Assistant Secretary for Transportation Affairs John Byerly said he would negotiate expansive Latin American open skies agreements "at the drop of a hat," but TAP Portugal CEO Fernando Pinto warned that the US faces a "closed, regulated and protected market."
Worldwide Flight Services won a contract from TAM Airlines to provide cargo handling services including documentation management and processing, security screening and customs clearance at Orlando International. The carrier operates A330s between Orlando and Sao Paulo.
Air France KLM's decision to slow its growth, revealed last week when it released its fiscal first-half earnings in Paris, is in line "with a greater capacity discipline by most major players," Chairman and CEO Jean-Cyril Spinetta told reporters. AF KLM network-wide capacity will be up just 1.7% year-over-year this winter season and it envisions capacity growth of only 1%-2% in the summer schedule 2009.
Rolls-Royce said it is consulting with its labor unions regarding plans to cut 140 jobs at its Derby Assembly and Test Facility. The proposed job reductions are "the first stage" of a larger downsizing that could see 1,500-2,000 workers laid off on a worldwide basis. Actions are in response to the "current economic uncertainties," delays to specific programs such as the A380 and 787 and "the benefits of the group's continuing focus on efficiency," according to a statement. The reductions account for 4% of the worldwide workforce.
Delta Air Lines said in a regulatory filing Friday that "demand has slowed over the course of the [fourth] quarter. . .As a result, we are evaluating our capacity plans for 2009 on both the domestic and international system and expect to reduce future capacity to better align supply with current levels of demand." It said it will provide more specific 2009 capacity guidance on Dec. 9.
PACE reached a deal with Etihad Airways to provide its Pacelab Cabin technology to explore prospective seating arrangements of passenger cabins for in-service aircraft and new deliveries. Software boasts flexible parametric modeling, intelligent positioning features and automatic compliance checks.
Volaris CEO Enrique Beltranena said the Toluca-based LCC expects to launch its first US service in the 2009 fourth quarter and plans to be operating to 10-12 markets north of the border in the next 3-5 years, which would represent a penetration comparable to that of Aeromexico and Mexicana.
Lufthansa Consulting reached its third contract extension with Petrobras (Petroleo Brasileiro S.A.) to provide technical counsel related to implementation of aviation safety activities. Contract will extend to September 2009 and focus on establishing an Aviation Competence Center within Petrobras as well as improving safety standards, flight operations, maintenance and ground operations and emergency planning. LCG has supported the oil company and its transport division since 2004.
Boeing warned last week that it will lay off an undetermined number of employees next year as part of an effort to slash costs to contend with a "challenging business environment." The manufacturer said it will cut the workforce at its Wichita facility by 27%, or 800 jobs. In a memo cited by the Seattle Post-Intelligencer, Boeing said the cuts at its Kansas facility make clear there will be "some employment decreases starting in early 2009" and indicated more job reductions will be announced.
Iberia said it renovated its La Munoza maintenance hangar near Madrid Barajas to improve and extend its painting services for new and overhauled aircraft. The 2,900-sq.-m. facility is equipped for stripping, sanding, painting and drying various aircraft. A Saudi Arabian Airlines 757-200 and an A320 operated by Ural Airlines are the first in line to be painted there.
Australian Competition and Consumer Commission rejected a transpacific Air New Zealand/Air Canada codeshare pact. ACCC issued a draft determination denying authorization for the two airlines to codeshare on AC's Sydney-Vancouver services and ANZ's Auckland-Vancouver flights, claiming it would lessen competition. The airlines argued that neither operates on the other's routes and both would promote each other's services, bringing more tourists to Australia and New Zealand.
Oneworld yesterday nominated American Airlines Chairman and CEO Gerard Arpey to succeed Qantas CEO Geoff Dixon as chairman of the alliance's governing board for a two-year term beginning in February.
ANA said it is considering establishing Tokyo Narita and Haneda as dual international hubs as it looks to expand its international network in coming years with the expected shrinking of the domestic market.
Ryanair said it will not operate to Maastricht from Jan. 8, saying that "the Dutch government's ecotax [imposed during winter months] hinders the sustainability of the operations." It said it is in negotiations with the airport to return in the 2009 summer.
Mexicana has been hit by the current industry downturn like many carriers, but it remains in "adequate" financial health and is focused on a long-term plan that includes oneworld entry and the launch of its first European services early next year, CEO Manuel Borja said yesterday at the ALTA Airline Leaders Forum in Cancun.
Air France KLM reported a 96.2% drop in consolidated net income for its fiscal second quarter ended Sept. 30 to €28 million ($35.4 million) from €736 million earned in the year-ago period. The net profit was dragged down by a €373 million charge for potential future losses from its fuel and currency hedging programs. Adjusted for nonrecurrent and noncash items (including a €212 million gain from the Amadeus sale last year), net income fell 49.1% to €244 million.
American Airlines and the US Transportation Security Administration yesterday launched a paperless boarding pass pilot program at Los Angeles International. "It will allow passengers to receive boarding passes electronically on their cell phones or PDAs, which will then be scanned by TSA security officers at the checkpoint," AA said. The airline and TSA last week began allowing paperless boarding passes at Chicago O'Hare. Continental Airlines has been conducting electronic boarding pass trials at a number of US airports in conjunction with TSA since last November.
Ethiopian Airlines ordered eight Q400 NextGens plus four options. The deal is valued at $242 million, a figure that could rise to $366 million if all options are exercised. CEO Girma Wake said, "The aircraft's excellent range and payload capability will allow us to deploy it on domestic routes within Ethiopia, as well as on regional routes up to 1,000 nm. (1,850 km.) from Addis Ababa." Delivery dates were not disclosed. Bombardier said it has sold 330 Q400s with 210 delivered as of July 31.
Nine mainland Chinese carriers were selected yesterday to operate weekday flights across the Taiwan Strait and are expected to launch service on Dec. 15, according to CAAC. In addition to Air China, China Eastern Airlines, China Southern Airlines, Hainan Airlines, Xiamen Airlines and Shanghai Airlines, which all already operate weekend cross-strait flights, Sichuan Airlines, Shandong Airlines and Shenzhen Airlines were tapped to operate the weekday flights.
Skyways Aviation, acting on behalf of Largus Aviation, concluded five lease transactions with Air Baltic of Latvia. Largus purchased three F50s currently operating with the Latvian airline on an existing lease agreement with nine months remaining. As part of the deal, Largus signed a new lease agreement with Air Baltic for 4.5 years. Air Baltic also is taking two F50s operated by Skyways of Sweden, also owned by Largus. The first will be released this month and the second in April 2009. Skyways also arranged the sale of an F50 from Crescent air Cargo of India to Largus.
