US Transportation Security Administration will deploy Advanced Technology X-ray and Passenger Imaging at 21 airports before year end and said it will purchase and deploy an additional 300 AT X-rays and 80 PI units next year. Airports already designated to receive the systems are Chicago O'Hare, Atlanta, Newark, Boston, Indianapolis, New York LaGuardia, Tampa, San Juan and San Francisco.
Heavy noncash impairment charges and record fuel prices sent American Airlines parent AMR Corp. plunging to a $1.45 billion second-quarter net loss, reversed from a $317 million profit in the year-ago quarter. The noncash charges, announced this month ( ATWOnline, July 3), comprise a $1.1 billion writedown of the value of certain aircraft and related assets and approximately $55 million in employee severance-related costs. Excluding the charges, AMR's second-quarter loss was $284 million.
Spanair yesterday unveiled a "feasibility plan" designed to negotiate the "economic crisis" and rising fuel prices that will generate an estimated €90 million ($143.4 million). It will ground 15 aircraft in September and October, lay off 900 fulltime employees and permanently cancel service from Madrid to Vienna, Munich, Girona, San Sebastian, Granada and Oviedo as well as Barcelona-Zurich, Bilbao-Malaga and Bilbao-Jerez. It still will operate more than 80% of its network, equal to 260 daily flights to 48 destinations.
Such is the state of the US airline industry that Delta Air Lines CEO Richard Anderson found a silver lining to the $1.04 billion second-quarter loss announced yesterday, which represented a reversal from the $164 million earned in the year-ago quarter.
TAP Portugal will reduce capacity by approximately 40 flights per week during the coming winter season, CEO Fernando Pinto confirmed to ATWOnline last week. Reductions will be a mix of intercontinental and European frequencies and no destinations or aircraft are expected to be cut.
Amadeus introduced the first module of Amadeus Airline Service Fees, a solution that automatically prices and collects ticketing, credit card and miscellaneous fees in direct sales channels such as airport and city ticket offices, call centers and proprietary websites. The solution complies with ATPCO and IATA regulations for OB fees (the two-letter service code assigned by IATA to the ticketing fees record) and allows airlines to introduce new fee policies across all sales outlets in real time. It is available to all carriers that have adopted the Amadeus Altea Reservation platform.
Finnair is investigating importing jet fuel to Finland as prices are increasing and competition among fuel providers is limited. It expects this year's fuel bill to top €600 million ($956.3 million).
In conjunction with its effort to enhance its "Beijing hub" strategy and boost domestic and international frequencies from the capital, Air China plans to order 15 777s and 30 737s. According to a CA statement released yesterday by the Shanghai Stock Exchange, the airline negotiated a deal less than the $6.3 billion list price for the 45 aircraft, which will be delivered between 2011 and 2015 and will boost its capacity by 35%. The order still requires approval from CA shareholders and the Chinese government.
Asiana orders 30 A350 XWBs valued at more than $7 billion Boeing inks contracts for $4 billion worth of 737NGs with MAS, ACG, Arik Superjet orders grow, undisclosed 'renowned' European customer signs for 20 Airline CEOs: Ticket prices will need to rise to keep pace with fuel costs Rivals Boeing, Airbus 'embrace' on environmental issues GP7200 ready to enter service with Emirates in two weeks AerCap to be A320/A321 passenger-to-freighter launch customer
ILFC announced the following lease agreements: One used 737-800 to Miami Air International for four years; four new A321-200s and two used A330-200s to Vietnam Airlines for 10 and eight years each respectively; three used A330-200s to Gulf Air for eight years each; one new A321-200 to Air France for six years; one used 737-800 to Caribbean Airlines for three years; two new A321-200s to Aegean Airlines for six years each; one new 737-800 to Oman Air for 10 years; two used 737-800s to Orenburg Airlines for five years each; two used A320-200s and three used 767-300ERs to Rossiya for five a
Ryanair will cut its winter schedule at Dublin, reducing based aircraft to 18 from 22 and the number of weekly flights to 1,190 from 1,352. It estimated a passenger decline of around 500,000 from winter 2007-08. It said DUB is the second most expensive of its base airports and that a written request to the airport to have fees reduced was "dismissed by the DAA monopoly." It said the airport charges up to €15 ($23.84) per departing passenger.
Sama, the year-old Dammam-based carrier, said shareholders have agreed to contribute an additional SAR200 million ($53.3 million) in financing. SAR300 million was invested at startup and the company said its revenue rose more than 250% in the first half of 2008. It serves 12 Saudi and 10 Middle Eastern destinations.
Dublin-based Aergo Capital reached agreement to acquire the aviation assets of South African Imperial Holdings, comprising Safair and Safair Lease Finance. Aergo currently has 65 commercial aircraft on its portfolio on lease to 20 carriers and will add 31 with the Safair acquisition.
US Airways Group took a $622 million noncash charge in the second quarter to write off the goodwill it had recorded on its balance sheet that was created by the merger of the old US and America West Holdings three years ago. It said the charge was the result of an interim period goodwill impairment test performed due to the high fuel prices "that have adversely impacted the company's business." It said it also will report an $18 million noncash charge related to the decline in value of specific 737 spares. It will announce its second-quarter results on July 22.
Russia's VSMPO-AVISMA, Airbus and EADS reached a long-term agreement for the supply of titanium including round and flat mill products and die forging parts for current Airbus aircraft as well as new programs such as the A350-XWB. Contract extends to 2020 and has value potential estimated at $4 billion. Lufthansa Technik signed a 10-year deal with Aer Lingus to provide component support for 34 A320s and nine A330s. Contract volume likely will exceed €90 million ($143 million). Services will be coordinated by an LHT representative in Dublin and launch Nov. 1.
Air Canada will lay off 632 flight attendants, or 9% of its cabin staff, and close its flight attendant bases in Halifax and Winnipeg by Nov. 1, a spokesperson told Reuters. Remaining layoffs will be from Vancouver. The cuts are part of the wide-ranging reductions at AC announced last month ( ATWOnline, June 18). Separately, AC named Jazz Air Senior VP and COO Bill Bredt as executive VP and COO.
US Air Transport Assn. said airlines' composite cost index in the first quarter rose 31.3% year-over-year to 228.7, the fastest growth since the second quarter of 1980 and greater than the US Consumer Price Index increase of 4.2%. Fuel climbed 28.7% and accounted for 29.4% of first-quarter operating costs. Overall unit cost rose 12.4% to a record 13.72 cents while yield climbed 2.6%.
Delta Air Lines CEO Richard Anderson will run the merged DL/Northwest Airlines out of Atlanta, the carriers announced yesterday as they unveiled the senior management team for what would be the world's largest airline, saying the team will "ensure the seamless transition of Northwest's operations into Delta over the next 12-24 months."
Vietnam Airlines reported a loss of $5 million in the first half of 2008, Reuters reported from Hanoi. It posted a pre-tax profit of $13.3 million in the year-ago semester. Revenue in the recently completed six-month period climbed 28% year-over-year to $733 million and passenger numbers rose 15% to 4.4 million.
SAS Group likely will announce a new cost savings program featuring further "dramatic" cuts as it grapples with high fuel prices and weakening demand, CEO Mats Jansson told Sweden's Dagens Industri. SAS announced in April the removal of 11 aircraft from the fleet and a workforce reduction of 1,000 employees ( ATWOnline, April 30).
GMT Global Republic Aviation announced the acquisition of four A320-200s worth $68 million from Aercap Holdings. Aircraft are on lease to TAM until 2012. Dublin-based GMT now owns 16 aircraft.
The six largest US network carriers yesterday announced a partnership with Sojern Inc., an Omaha company funded by Norwest Venture Partners and Trident Capital, that will offer advertising on boarding passes.
The SpiceJet board yesterday announced that asset management firm WL Ross & Co. will invest approximately $80 million in the New Delhi-based LCC as Kingfisher's efforts to acquire the carrier were rebuffed.
Chinese carriers experienced declining market demand in June owing to slowing domestic economic growth and the continuing effect of natural disasters, according to CAAC. Passenger numbers fell 3.8% year-over-year to 14.2 million and load factor was down 2.1 points to 72.3%. Daily utilization dropped sharply, falling 10.5% to 8.5 hr. due to route cancellations caused by rising fuel prices. Half-year passenger numbers grew 5.4% to 91.8 million and load factor remained level at 74.1%. Utilization rate fell 6.3% to 9 hr.
Boeing's first 777 freighter flew for the first time Monday and "performed well" during a 3.5-hr. test flight. "The only issue was a data-communication problem between the airplane and the telemetry room at Boeing Field," VP-Flight Operations, Test & Validation Dennis O'Donoghue said. The problem prevented the aircraft from completing all first-flight tests and forced it to land at Paine Field rather than Boeing Field. Flight test program will involve two aircraft ( ATWOnline, May 22).
