South Korean government will sell a 49% stake in Incheon International Airport, "which includes a strategic tie-up with a foreign airport operator to secure international competitiveness," according to a statement cited by Reuters. No timeframe was announced.
Gol and VRG parent Gol Linhas Aereas Inteligentes reported a second-quarter net loss of BRL171.7 million ($106.4 million), widened from a BRL35.4 million loss in the year-ago quarter, as it consolidated Gol and VRG's flight networks during the three-month period and contended with rising fuel costs.
Yemenia Yemen Airways reached a 10-year, $90 million fleet management agreement with Pratt & Whitney Global Service Partners. Deal covers IY's three PW4000-powered A310-300s.
Singapore Technologies Aerospace subsidiary ST Aerospace Solutions renewed its component supply and reconditioning contract with LOT Polish Airlines. Three-year contract is valued at €8.7 million ($13 million) and covers seven 767s under STA Solutions' material supply program.
SpiceJet secured approximately $100 million in funding from private investor WL Ross & Co. and Dubai-based Istithmar World Capital. The Indian LCC announced last month that it preferred Ross as a partner rather than Kingfisher Airlines ( ATWOnline, July 16). Istithmar's participation boosted the capital injection from the originally announced $80 million. Ross Chairman Wilbur Ross Jr.
TAM posted second-quarter net income of BRL50.2 million ($31.1 million), reversed from a BRL28.6 million loss in the year-ago period, riding a big boost in the domestic market driven by the replacement of 15 F100s with 13 A320s and three A321s and an expanded international network.
Meggitt subsidiary Vibro-Meter announced provision of its Advanced Airborne Vibration Monitor for 737NGs. AAVM is a Boeing, CFM International and Vibro-Meter venture and features advanced flight deck engine vibration signals, balancing power and pre-event bearing fault warning capabilities.
China Eastern Airlines board approved plans to launch a business aviation service company that will provide ground handling and maintenance for private and charter flights, among other services. The new venture will be a wholly owned subsidiary and will require an investment of CNY50 million ($7.3 million). The Shanghai-based carrier noted that it has no plans to purchase any business aircraft for the time being but it did not rule out the possibility of reconfiguring some of its existing aircraft.
SITA signed a five-year, $3 million agreement with Middle East Airlines to implement and maintain its IP VPN. SITA will provide secure Internet access to MEA network users at their sites around the world and connect the Beirut headquarters to 19 global outstations through one gateway. Implementation is underway and will take up to nine months to complete.
Air Line Pilots Assn.'s United Airlines chapter, citing frustration with UA's ontime performance, low customer service ratings and declining financial results, called for the resignation of Chairman, President and CEO Glenn Tilton and launched a website that it claimed chronicles "his failure in virtually every category that can be measured."
Gol reduced its fleet plan by two leased 737-800s in 2008 and five leased -800s in 2009. Full-year 2008 capacity growth will be around 20% instead of the 25% previously forecast. The Brazilian airline's board voted to suspend quarterly dividends for the remainder of 2008, freeing "cash to fund investments and improve credit ratios."
China Eastern Airlines yesterday continued to hope that it could secure Singapore Airlines as a strategic investor even though its stake sale deal expired officially on Saturday. CEA noted in a statement that the deal, reached last September, was "automatically terminated owing to the preconditions for implementing the agreement had not been satisfied by the deadline."
Pilots from Delta Air Lines and Northwest Airlines voted to approve a joint contract that will take effect when the carriers' planned merger is finalized. DL CEO Richard Anderson confirmed the positive vote yesterday and called it a "historic milestone" that would facilitate the merger.
Delta Air Lines flew 12.44 billion system RPMs in July, up 0.7% from the year-ago month, against a 0.9% rise in capacity to 14.34 billion ASMs. Load factor fell 0.1 point to 86.7%. United Airlines flew 10.49 billion system RPMs in July, down 4% year-over-year. Capacity dipped 1.4% to 12.33 billion ASMs and load factor fell 2.3 points to 85%.
Cathay Pacific Airways announced more changes to its network strategy designed to reduce fuel expenses and focus on demand. It will cut 10 flights to North America, add eight weekly services to Australia and increase capacity on 14 flights to Europe. Last month it added four weekly flights to Dubai and Bahrain and cut frequencies to Toronto and Vancouver ( ATWOnline, July 14). CEO Tony Tyler said, "We have to maximize our earnings during this difficult period which is why we are moving our capacity.
Singapore Airlines launched thrice-weekly all-business class flights to Los Angeles with its 100-seat A340-500. Daily service will commence Sept. 21. It launched a similar service to Newark in June ( ATWOnline, March 5).
Spanair's recently announced "feasibility plan," which calls for the grounding of 15 aircraft this fall, a reduction in bases from seven to two and a 24% capacity reduction ( ATWOnline, July 17), will require redundancies equal to up to 954 fulltime positions, the carrier announced last week. The plan is aimed at improving the 2009 financial result by €90 million ($135 million).
Ural Airlines reported a RUB90.9 million ($3.7 million) loss in the first half of 2008, narrowed from the RUB246.4 million loss suffered in the year-ago semester, Russia's AK&M reported.
Australia's Civil Aviation Safety Bureau has found nothing amiss at Qantas, insiders say, although it is defending itself from charges that it is too close to the national airline. CASA has six inspectors performing a special audit on QF ( ATWOnline, Aug. 5) and ATWOnline understands there is "no smoking gun" at the airline. The report will be completed this week.
Finnair remained profitable in the second quarter, reporting €13.9 million ($20.9 million) in net earnings that represented a 46.1% fall from the €25.8 million posted in the year-ago period, but warned that second-half EBIT "may be negative" as the industry faces "a market failure caused by an overcapacity in relation to demand."
Air Canada named Claude Morin, currently president and CEO of Air Canada Cargo, VP-global sales effective Sept. 1, replacing the retiring Marc Rosenberg. Senior Director Cargo Services-Americas/South Pacific Lise-Marie Turpin will be promoted on Sept. 1 to GM-Air Canada Cargo, a position that will include responsibility for all aspects of the airline's cargo activities.
The US Air Transport Assn. followed through on its threat and yesterday filed a lawsuit against FAA over its announced Sept. 3 auction of two slots, or one roundtrip, at Newark. Although the agency is auctioning only two EWR slots for a five-year lease, the move is viewed widely as a precursor to a much broader auction system it is considering implementing at both EWR and New York JFK ( ATWOnline, Aug. 7).
Virgin Atlantic Airways is increasing its lobbying against the anticipated antitrust immunity application by British Airways and American Airlines for transatlantic operations and confirmed that founder Richard Branson wrote a letter to US presidential candidates John McCain (R-Ariz.) and Barack Obama (D-Ill.) warning that the proposed alliance would "severely damage competition. .
