LOT Polish Airlines low-fare subsidiary Centralwings will cease operating scheduled services next month and become a charter and ACMI carrier, it announced last week, saying market conditions have "imperil[ed] the company's stability." It will begin the transition on Sept. 14 and by Sept. 30 will operate only charter flights save for Warsaw-Lisbon service that will end Oct. 7.
Pratt & Whitney and Aviall Services will work together to distribute JT9D spare parts under an agreement announced last week. Contract calls for Aviall to supply Pratt OEM spares to JT9D operators, which number more than 1,200 globally. Produced from 1969 through 1990, the JT9D powers 747s, 767s, A300s, A310s and DC-10s.
Rising revenue and demand were little match for soaring fuel prices and the reduced value of the Malaysian ringgit as AirAsia posted a second-quarter profit of MYR9.4 million ($2.8 million) that represented a 95% plunge from the MYR185.1 million earned in the year-ago period. Still, CEO Tony Fernandes called it a "commendable performance" and said that the company will continue to "grow the business and expand the route network."
Lufthansa is in "constructive negotiations" with SN Airholding, parent of Brussels Airlines, about an equity investment worth 45% of the Belgian company with an option to take it over fully later. The confirmation follows speculation of a tie-up last spring after Chairman Etienne Davignon acknowledged that SN was negotiating an alliance membership and stated without naming LH that "a possible financial participation of a new shareholder could only be considered under the condition that the sustainable future, the identity and the autonomy of Brussels Airlines are guaranteed."
Luxair Group board approved the purchase of an additional Q400 and said it will decide on the purchase of a fifth Q400 at the end of September. Luxair Luxembourg Airlines will take delivery of its fourth 72-seat Q400 in late 2009. Aircraft will replace an ERJ, keeping the carrier's fleet at 11 units.
GE Aviation won a six-year OnPoint solution contract from Virgin Blue covering MRO services on CFM56-7Bs operated by Blue and its Pacific Blue subsidiary. Contract is valued at $300 million.
Air Berlin's second-quarter net profit rose 38.3% to €8.3 million ($12.2 million) compared to €6 million in the year-ago period if the 2007 results of LTU, AB's acquisition of which was approved in last year's third quarter, are included.
Ottawa-based Zoom Airlines suspended operations yesterday and both its Canadian and UK airline subsidiaries will file for bankruptcy protection, the low-fare leisure carrier announced. Founders Hugh Boyle and John Boyle said in a statement that the airline was profitable last year but that it could not overcome soaring fuel prices. Zoom operated a fleet of five 757s and 767s on transatlantic routes. The BBC reported that Zoom aircraft were detained at Glasgow International and Calgary over the past two days for nonpayment of air traffic control charges.
EgyptAir is the customer for two 777-300ERs previously listed as unidentified on Boeing's orders and deliveries website, the manufacturer announced yesterday. The aircraft are worth $529 million at list prices and will feature MS's new business class layout, which includes 49 lie-flat seats with 78-in. pitch. Delivery dates were not announced, but the airline is scheduled to take the first of six -300ERs on lease from GECAS in January 2010 ( ATWOnline, Dec. 3, 2007).
Air France KLM, which bid unsuccessfully for Alitalia in the spring, is willing to take a stake in an ongoing reorganization effort. "If it can be confirmed that the new company will be profitable, Air France KLM is ready to take out a minority stake in the new company's capital alongside the investors identified by the Intesa Sanpaolo bank," the group said in a statement yesterday.
Thomas Cook, Lufthansa and TUI subsidiary TUI Travel are in "early discussions" regarding a merger of their subsidiary carriers Condor Airlines, Germanwings and TUIFly Deutschland, Thomas Cook announced yesterday. "No commercial terms have been agreed. There is no certainty that any transaction will result and a further announcement will be made if and when appropriate," the company said. LH owns 24.9 % of Condor, with the remainder held by Thomas Cook.
TAM announced a revision to its international growth plan comprising the addition of two 767-300s to its fleet before year end, meaning it will close the year with 125 aircraft in operation. During the remainder of 2008 it will launch Sao Paulo Guarulhos-Lima, GRU-Orlando International, Belo Horizonte-Miami and Rio de Janeiro Galeao-New York JFK.
Grupo Marsans took delivery of its first directly purchased A330-200 for its Air Comet subsidiary. The PW4000-powered, 283-seat aircraft is part of an order for 17 -200s placed in December 2006 ( ATWOnline, Jan. 9, 2007).
US Air Transport Assn. announced yesterday that its request for suspension of the Sept. 3 auction of two slots at Newark was granted by the FAA Office of Dispute Resolution Acquisition ( ATWOnline, Aug. 27). It said it "fully expect[s] that the process will result in a determination that FAA lacks the legal authority to conduct the auction."
United Airlines, which last month said it would slash 5,500 frontline workers by the end of 2009 ( ATWOnline, July 23), will furlough 1,550 flight attendants effective Oct. 31. The carrier said it hopes to achieve as many of the cuts as possible via voluntary programs, but added that it must lower its flight attendant workforce by 10% by the end of October and will make as many involuntary reductions as necessary.
Citing unprecedented fuel costs, slowing economic growth in its main markets and weakness in the US dollar and UK pound, Aer Lingus reported a net loss of €20.6 million ($30.3 million) for the first half of 2008, reversed from a €6.8 million profit in the year-ago semester.
Two hijackers who took over a Sun Air 737-200 on Tuesday released the 95 passengers and crew yesterday in Kufra, Libya, and surrendered to authorities without violence, according to widespread press reports. The hijackers reportedly demanded to be flown to Paris.
Southwest Airlines informed US FAA this week that it does not intend to pay a $10.2 million safety penalty by tomorrow's deadline, potentially setting the stage for a US Dept. of Justice lawsuit against the carrier. The LCC is being fined for operating 46 737 Classics for nine days in March 2007 after it had disclosed to FAA that the aircraft were in noncompliance with an airworthiness directive ( ATWOnline, Aug. 19).
ACSS submitted a new software release for its runway incursion product, SafeRoute-SAMM 2.5, for certification by US FAA. The product enables own-ship and other aircraft to be displayed on a moving map of the airport surface using a Class 2 electronic flight bag. According to ACSS, installation of Surface Area Movement Management will allow operators to take advantage of FAA's recently announced cost-share program to help fund installation of runway incursion safety systems on aircraft. ( ATWOnline, July 15).
Australia's Regional Express Holdings reported a net profit of A$24.3 million for the fiscal year ended June 30, up 3% from the prior year. Fourth-quarter profit climbed 31.7% year-over-year to A$8.3 million despite the fact that Rex is entirely unhedged. Executive Chairman Lim Kim Hai said 2008-09 earnings should "remain at relatively the same levels" assuming the price of fuel and the US dollar are static. Rex operates 38 Saab 340s to 23 Australian destinations.
Aegean Airlines reported a net profit of €5.5 million ($8.1 million) for the first half of 2008, down 13% from the €6.4 million it earned in the year-ago semester. Revenue rose 26% to €262.7 million on a 13% increase in passengers to 2.6 million, comprising an 8% growth in domestic enplanements and a 24% gain internationally. EBIT fell 42% to €6 million.
Air Canada and Jazz flew a combined 5.02 billion RPMs in July, down 0.6% year-over-year, against a 2% fall in capacity to 6.05 billion ASMs. Load factor rose 1.2 points to 83%.
Air China's first-half net income fell 20.7% to CNY1.24 billion ($180.8 million) on surging oil prices and softening traffic resulting from May's Sichuan earthquake and heightened security surrounding the recently completed Olympics. The company reported an operating loss of CNY336 million, a significant reversal from the CNY1.37 billion earned in the year-ago semester. The carrier remained in the black thanks to currency gains of CNY1.92 billion as the stronger yuan reduced the value of its US dollar-dominated debt.
Qantas is understood to be moving toward an order for the 365-seat 777-300ER as Boeing pulls out all stops to thwart a commitment to the rival A350-1000.
