UK CAA yesterday released its response to the Competition Commission's provisional report on airport services and BAA's decision to sell London Gatwick, saying it "strongly supports" the CC's recommendation that BAA sell three airports and that the move "can be expected to significantly increase competition between airports in the South East and Scotland, to the benefit of passengers, airlines and the wider UK economy." It said the sale of LGW is "an important first step to realizing these benefits" and that the CC should reject BAA's contention that "airports cannot compete when their
American Airlines flew 12.16 system RPMs in August, down 2.9% from the year-ago month. Capacity slipped 1.1% to 14.57 billion ASMs and load factor fell 1.5 points to 83.5%. American Eagle flew 704.2 million RPMs, down 13.6%, against a 4.5% fall in capacity to 1.01 billion ASMs. Load factor dropped 7.3 points to 69.7%. Northwest Airlines flew 7.27 billion consolidated RPMs in August, up 1.9% from the year-ago month. Capacity climbed 3.1% to 8.4 billion ASMs and load factor dropped 1 point to 86.6%.
Air New Zealand Chairman John Palmer warned shareholders at this week's annual general meeting that more network restructuring may be required as market volatility can change "on a dime." To deal with that environment, ANZ now reviews its route structure every two weeks rather than the customary six months.
Qantas cited market volatility for its decision to defer the previously announced minority IPO of its Qantas Frequent Flyer business. The board said preparations would continue for a flotation in the first half of next year.
Boeing expects oil to stabilize at $70-$80 per barrel (in 2008 dollars) over the next 20 years, VP-Marketing Randy Tinseth told media in Sydney, adding that the company's forecasts have proven to be "quite accurate" this decade. The manufacturer projects that by 2027 the global passenger and freighter fleet will comprise 2,630 regional jets (7%), 23,540 single-aisle aircraft (66%), 8,290 twin-aisle aircraft (23%) and 1,340 jumbo aircraft (4%). Total value is estimated to be $3.2 trillion.
British Airways CEO Willie Walsh described London Mayor Boris Johnson's idea to replace London Heathrow with a new facility on an island in the Thames as "madness," Bloomberg News reported. Johnson has said he believes LHR is "a 1950s planning error" and vowed during his successful election campaign to review the feasibility of a new four-runway airport east of London. "It's not going to work," Walsh said at the World Low Cost Airlines Congress in London. "It's a distraction to a tough decision that has to be made in relation to Heathrow airport."
British Airways signed up for Boeing's Performance Improvement Package for its fleet of 42 777s. The package is expected to reduce fuel spending per aircraft by about $200,000 annually (assuming $100-per-barrel crude oil prices), according to Boeing estimates. Key elements include addition of a drooped aileron and a ram air system. In addition, Boeing will provide redesigned wing vortex generators. The manufacturer expects the package to be certified by US FAA next year.
US Senate and House of Representatives late Tuesday both passed the FAA Extension Act of 2008, which will fund FAA operations and programs through March 31. The agency, which saw its authorization expire on Sept. 30, 2007, has been funded over the past 12 months via a series of temporary extensions ( ATWOnline, May 7), the latest of which is set to expire Sept. 30.
Lufthansa supervisory board approved the company's strategic investment in Brussels Airlines parent SN Airholding announced last week ( ATWOnline, Sept. 16). LH will acquire a 45% stake in SN for €65 million and in 2011 will have an option to purchase the remaining 55%, at which point Brussels will be integrated fully into the group.
Clickair is launching a new Internet portal designed for companies and travel agents as it expects a 42% increase in revenue from this sector in 2009. Clickair Professional provides users with access to exclusive benefits, including discounts on certain routes, triple loyalty program points for companies, special promotions for travel agents and a unique tariff enabling cancellations and modifications to be made to reservations without charge, according to CEO Alex Cruz.
Croatia Airlines announced a partnership with Privredna banka Zagreb and PBZ Card that will allow passengers to pay for tickets at nearly 400 Privredna ATMs. Customers who make a reservation over the telephone or at an OU branch office will have the option of receiving a code allowing them to pay later at an ATM using American Express, MasterCard, Maestro, Visa or Visa Electron.
Iberia Maintenance announced deals with GE Aviation, SR Technics and Gestair. It signed an MOU with GE to become the preferred regional fulfillment center for CFM56-5A MRO in Europe, Africa and the Middle East. IB will enter into an OnPoint solution agreement with GE for material and services. Under the agreement with SRT, Iberia will repair and overhaul SRT components from various aircraft fleets in Madrid while SRT provides MRO on CFM56-5Cs powering IB's A340-300s. It is the first deal between the companies.
Singapore Airlines will commence four-times-weekly Singapore-Dubai-Riyadh on Dec. 14 aboard 777-200s. SIN-Dubai-Istanbul Ataturk will increase to six-times-weekly from four. Royal Jordanian will resume service to Brussels after five years, launching a twice-weekly flight from Amman on April 1 with an A319. Blue Air will commence twice-weekly Brussels-London Stansted on Oct. 23, becoming thrice-weekly Dec. 11.
The Italian government yesterday met with CAI executives for the third time in two days, raising speculation that the investor group might revive its bid for Alitalia. Civil aviation authority ENAC warned this week that it might revoke or suspend AZ's operating license if the carrier's administrator, Augusto Fantozzi, does not present a credible rescue plan by today ( ATWOnline, Sept. 23).
Flybe Aviation Services reached an agreement with Embraer to become an authorized service center for ERJ-145s and E-Jets. Five-year contract calls for Flybe, which operates the 145, E-195 and Q400 and is one of Europe's largest low-cost regional operators, to provide MRO from its Exeter base. It will have access to Embraer's structure-specific repair solutions and database and will be able to handle airframe and warranty issues for Embraer customers.
IATA DG and CEO Giovanni Bisignani said yesterday that India's airlines could collectively lose as much as $1.5 billion in 2008 and called on the nation to take "urgent action. . .to help Indian carriers weather the perfect storm of high costs and falling demand."
Austrian Airlines last week inaugurated the third training center at its Vienna Aviation Campus. Designed by ARGE BWM Architects and Partners, the center will enable OS to train staff at a single location.
Jet Republic, a new private aviation company headquartered in Lisbon, announced yesterday that it placed a firm order for 25 new Bombardier Learjet 60 XR aircraft (with options on 85 more) that it intends to fly to more than 1,000 European airports from next summer on. The order, placed in June, is valued at $1.5 billion and will see 25 aircraft delivered over the first 22 months and the remainder delivered one every three weeks thereafter.
Two pilots who fell asleep while flying for Mesa Air Group's Hawaiian subsidiary go! were suspended by US FAA in addition to being fired by the airline, the Associated Press reported. Capt. Scott Oltman had his license suspended for 60 days and copilot Dillon Shepley was suspended for 45 for "careless and reckless operation" of an aircraft, an FAA spokesperson said. The suspensions were completed Sept. 9. No action was taken against go!, which provided the required 15-hr. rest between flights. The highly publicized incident occurred on a Feb. 13 flight from Honolulu to Hilo.
US Dept. of Transportation yesterday tentatively granted Oregon-based Evergreen International Airlines authority to operate six weekly roundtrip cargo flights between New York JFK and Shanghai from March 25. Flights would make stops at Chicago O'Hare, Dallas/Fort Worth and Columbus. Evergreen is scheduled to take delivery of three 747-400BCFs next year. FedEx, Northwest Airlines, Polar Air Cargo and UPS are the four US carriers that currently have US-China freighter rights.
Lufthansa Consulting signed an Air Service Development contract with Moscow Sheremetyevo. SVO handled 14 million passengers in 2007 and announced 10% year-over-year passenger growth in the first six months of this year.
ST Aviation Services, a Singapore Technologies Aerospace subsidiary, reached agreement with Airbus to provide heavy maintenance checks for 19 A330s leased to Singapore Airlines. Agreement is part of a multiparty contract to provide SIA with support under prior lease arrangements. Heavy maintenance is slated to begin in 2015 and expected to last 18 months.
Spanish civil aviation authority suspended the operating license of Futura International Airways, according to press reports. The license could be reactivated if Futura finds an investor to finance its restructuring plan before Jan. 1. The charter carrier suspended operations two weeks ago and filed for bankruptcy protection ( ATWOnline, Sept. 9).
Emirates President Tim Clark said the carrier's thrice-weekly Dubai-New York JFK A380 service, launched on Aug. 1, is performing well. Speaking to ATWOnline en route to Toulouse, where EK will be discussing future A380 deliveries with the manufacturer, Clark said he has received positive feedback from passengers in all three cabin classes and that the bar at the rear of the business class cabin is especially popular and "constantly frequented by up to 25 passengers" ( ATW, September 2008).
