Boeing this week forecast that China will need 3,710 new aircraft worth approximately $390 billion over the next 20 years, an increase from last year's projection of 3,400 planes ( ATWOnline, Sept. 19, 2007). "China will continue to be the fastest-growing aviation center in the world, requiring 41% of the entire Asia/Pacific region airplane demand," Commercial Airplanes VP-Marketing Randy Tinseth said. Single-aisle aircraft will account for 70% of the new purchases.
Frontier Airlines Holdings, which continues to operate Frontier Airlines and Lynx Aviation under bankruptcy protection, reported a $29.7 million net loss in the fiscal second quarter ended Sept. 30 and a $5.8 million operating loss. In September, when it lost $20.8 million, it reported $7.0 million in reorganization costs and $2.1 million in unrealized losses on fuel hedges. It recorded gains of $9.9 million from the sale of two aircraft.
Air Berlin confirmed that it will absorb its dba subsidiary by Nov. 30, ending branded flying by the carrier AB acquired two years ago ( ATWOnline, Aug. 18, 2006). Dba operates nine aircraft and three of its 737-300s will leave the AB fleet entirely. Dba's 120 pilots and 175 cabin crew will be transferred elsewhere within AB or offered buyouts.
Kenya Airways reported a KES736 million ($8.5 million) profit in its fiscal first semester ended Sept. 30, down 62.7% from the KES1.97 billion earned in the year-ago period, as fuel prices rose and it managed only "paltry" passenger growth owing to the tourism decline caused by the violence that followed last December's elections.
US Dept. of Transportation said this week that the average US domestic itinerary fare in the second quarter rose 8.1% year-over-year to $352, the highest three-month figure in the 13 years of measurable data. Fares averaged $336 during the first quarter. DOT used the data to support its effort to institute slot auctions at New York JFK, LaGuardia and Newark starting in January ( ATWOnline, Oct. 16). "Even though caps can cut delays, they also eliminate competition, and without competition airfares rise," Secretary Mary Peters said.
Hawaiian Airlines parent Hawaiian Holdings reported third-quarter net income of $6 million, down 69.4% from $19.6 million in the year-ago quarter, explaining that improvements in inter-island and transpacific revenue were "offset by the high cost of fuel."
Delta Air Lines will launch flights from Atlanta to Tegucigalpa (Dec. 18), Guayaquil, Manaus (both Dec. 19), Santiago, Dominican Republic (Dec. 20) and Recife (Dec. 21) and from New York JFK to Buenos Aires, Bogota (both Dec. 18) and Bonaire (Dec. 20). Nashville-Cancun begins Dec. 27. Alaska Airlines launched twice-daily Seattle-Minneapolis/St. Paul aboard 737-800s.
Delta Air Lines yesterday began the 12- to 24-month process of integrating Northwest Airlines, now a wholly owned subsidiary of DL, with the flying public likely to begin noticing changes in the first half of 2009. NWA stockholders each will receive 1.25 DL shares based on the latter's closing price on Oct. 29, an exchange rate that is the equivalent of $9.99 per NWA common share. DL said its code will be added to "nearly all of the Northwest system" by year end and "a fully consolidated worldwide flight schedule" will be launched in advance of summer 2009.
Ethiopian Airlines said it posted a ETB507 million ($51.2 million) profit in the fiscal year ended June 30, which would mark a significant improvement over profits of just over $14 million in each of the prior two fiscal years. Revenue rose 34% year-over-year to ETB9.2 billion while expenses were up 31% to ETB8.8 billion. Passenger numbers climbed 20% to 2.5 million.
Compagnia Aerea Italiana, the consortium attempting to purchase and revive Alitalia, agreed to inject €1.1 billion ($1.37 billion) into the holding company established to purchase the airline, according to a statement cited by widespread press reports. CAI reportedly must present its binding bid Friday, although it continues to negotiate contract terms with unions and said it required approval from both labor and European authorities before making its offer.
China Eastern Airlines suffered a CNY2.33 billion net loss in the third quarter, reversed from a CNY976.5 million profit in the year-ago period, on a 13.7% decrease in operating revenue to CNY10.81 billion.
British Airways put on hold plans to add a fifth 757 to the fleet of its OpenSkies subsidiary next year, according to an internal BA memo cited by The Daily Telegraph. OpenSkies' "revenues are below target through a combination of lower volumes and yields, and as a priority we must take actions to ensure we keep within our cash reserves," the memo said.
Lufthansa will become bmi's main shareholder with an 80% stake following the decision by bmi Chairman Michael Bishop to exercise his put option requiring LH to purchase his 50%-plus-one-share of the carrier he helped to found more than 30 years ago.
Denmark's Sterling Airlines, owned by Iceland's Northern Travel Holding, cancelled all flights and filed for bankruptcy yesterday, blaming decreasing demand, rapidly rising fuel prices and the Iceland financial crisis for its collapse.
Coventry-based Atlantic Airlines and Sweden's West Air Europe are merging to form an all-cargo regional carrier called West Atlantic. The company expects an annual turnover of €125 million ($156.1 million) and will operate 41 BAE ATP freighters, a single ATR 72, six Electras and two CRJ200s configured for cargo. It will be headquartered in Gothenburg.
As the strike by the International Assn. of Machinists and Aerospace Workers appeared to be concluding, Boeing's largest airline customer for the 787, Qantas Group, confirmed that its first Dreamliner could be up to an additional six months late.
Delta Air Lines said it completed its acquisition of Northwest Airlines yesterday, hours after the US Dept. of Justice said it would not challenge the merger that creates the world's largest airline operating more than 800 mainline aircraft and generating more than $35 billion in annual revenue.
Bombardier completed what it called "a civil aviation first," the first flight of a civil aircraft "equipped entirely with an all-electric braking system." The system is being developed for the CSeries. The 7-hr. test, which included five landings and a series of high-speed braked ground runs, was carried out Tuesday in Wichita. Demonstrator aircraft was equipped with Meggitt's electric braking system known as the EBrake and Messier-Dowty landing gear with electric brake wiring harnesses. The technology couples brake-by-wire control with electric brake actuation.
LAN Airlines reported third-quarter net income of $80.4 million, up 2% from $78.8 million in the year-ago period, and said it is optimistic about 2009 despite economic uncertainty. The Santiago de Chile-based carrier plans to raise passenger capacity 10% and cargo capacity 8% next year. "We continue to see opportunities for expansion in the region," CFO Alejandro de la Fuente told analysts yesterday. "We believe that our financial strength and diverse business strategy will give us the flexibility to adjust to changing market conditions. .
Pratt & Whitney Canada announced that it is establishing a "world-class" aerospace center at Montreal Mirabel for final assembly and test of the new-generation PW800 family of small jet engines as well as the PurePower PW1524G geared turbofan for the Bombardier CSeries. Total of C$575.3 million ($448.4 million) will be invested, with the Quebec provincial government contributing C$141.9 million for infrastructure and equipment. New facility will be "the global hub" for Pratt''s integrated flight test operations and include two bays for the engine-maker's 747SP flying testbed.
Pakistan International Airlines posted a PKR20.4 billion ($249.2 million) loss in the third quarter, widened from a PKR3.15 billion deficit in the year-ago quarter, according to a stock exchange filing cited by Bloomberg News. Revenue rose 32.6% year-over-year to PKR22.8 billion but fuel costs doubled to PKR14 billion and it took an additional PKR14 billion charge related to currency conversion. Nine-month loss increased to PKR38.4 billion from PKR10.9 billion in year-ago period.
TAP Portugal flew 2.05 billion RPKs in September, up 6.6% year-over-year, against a 12.1% surge in capacity to 2.8 billion ASKs. Load factor dropped 3.8 points to 73.3%. Alitalia flew 2.58 billion RPKs in September, down 25% from the year-ago month. Capacity dropped 17.6% to 3.66 billion ASKs and load factor was down 7 points to 70.5%. Olympic Airlines flew 686 million RPKs in September, a 7.4% decrease from the year-ago month. Capacity was down 13.8% to 845.9 million ASKs and load factor rose 5.6 points to 81.1%.
Boeing and the International Assn. of Machinists and Aerospace Workers reached a four-year tentative labor agreement Monday night that, if ratified, will mark the end of a costly strike by some 27,000 workers that has idled aircraft assembly lines since Sept. 6.
