Air Berlin confirmed Friday that it no longer is interested in acquiring Condor Airlines from Thomas Cook Group ( ATWOnline, June 26). It said the share swap deal, announced last fall, was "cancelled by mutual agreement," while the parties "have agreed to continue negotiations regarding the feasibility of alternative solutions." In a statement to the German Federal Cartel Office, AB and Thomas Cook said the changing economic environment, including the soaring cost of fuel, was the "main reason" for the contract's cancellation.
Kunpeng Airlines, the Xi'an-based JV between Shenzhen Airlines and Mesa Air Group, signed a contract for five E-190s worth $187.5 million at list prices, the manufacturer announced. Aircraft will seat 98 passengers in two classes.
The initial problems at London Heathrow's new Terminal 5 that resulted in hundreds of flight cancellations and delays and an overwhelming luggage pileup that cost sole tenant British Airways some £16 million have been resolved, officials claimed.
The Air Transport Assn., Air Line Pilots Assn. and Regional Airline Assn. joined together Friday to call on Congress to pass legislation putting limitations on oil speculation, asserting that the "economic market [for oil] has become divorced from the physical market" and driven the per-barrel price to a point that threatens the viability of the air transport industry.
Airbus named Executive VP and head of the A380 program Mario Heinen as the new executive VP-head of the Transnational Centre of Excellence, Fuselage and Cabin, replacing the departed Rudiger Fuchs. The COE comprises all Airbus commercial aircraft as well as the A400M and MRTTs. Executive VP in charge of the A320 program Alain Flourens succeeds Heinen. Flourens will be succeeded by Executive VP-Deputy Head of Procurement Daniel Baubil.
Star Alliance CEO Jaan Albrecht told ATWOnline alongside the EgyptAir induction ceremony in Cairo that Star is committed to increasing its presence in Africa and better coordinating the continent's fragmented network. "Now we have a dual gateway with MS and [South African Airways] in Cairo and Johannesburg. There are 305 airports and a population of 900 million people, but just 16,000 weekly flights are offered within Africa," he said.
Aircelle subsidiary SLCA won a five-year contract with Embraer to produce composite parts for E-170s, E-190s and Phenom 100s. Contract covers parts supply for cockpit integration of E-170s, -175s, -190s and -195s, as well as rear fuselage components for Phenom 100s. Deliveries are scheduled for early 2009.
Rolls-Royce and British Airways yesterday announced the start of an alternative fuel test program that "will seek to identify practical alternatives to the current industry-standard fuel kerosene." The engine producer and the airline will initiate a joint tender process in an effort to find suppliers willing and able to offer samples for testing on a Rolls-Royce RB211 used to power a BA 747. The tests will be carried out on an indoor engine testbed at the Rolls-Royce facility in Derby.
US FAA Office of Environment and Energy Director Carl Burleson said yesterday that the agency hopes to have a "synthetic fuel blend" for powering commercial aircraft "certified by the end of this year." He told reporters that the agency wants a "gasoline source" that is 50% synthetic. He did not elaborate on the source. He added that FAA is targeting 2010 to certify a biofuel blend and 2013 to certify "full biofuel" to power commercial flight.
The Sukhoi Superjet 100 will not be delivered to launch customer Aeroflot until the second half of 2009, a year behind schedule, Sukhoi Civil Aircraft Co. and the Russian airline revealed this week. A Sukhoi spokesperson confirmed the delay to Agence France Presse. Lev Koshlyakov, Aeroflot's deputy head, told Reuters that Sukhoi had informed it via a letter not to expect any SSJ100s until the 2009 third quarter. The carrier had expected to take delivery of as many as 30 in the second half of this year.
US Dept. of Transportation issued a final rule yesterday that will permit US airports to base airline rates and charges on "market incentives" as well as the traditional aircraft weight metric currently used, opening the door for operators of congested airports to impose higher fees on aircraft landing during peak hours.
European Court of First Instance rejected an appeal filed by Alitalia in 2001 against a European Commission ruling that attached conditions on the use of state aid as part of an AZ restructuring plan. "The Court of First Instance confirms the Commission's decision on aid for the restructuring of Alitalia," it said in a statement.
Boeing said yesterday that its second-quarter financial results will include a charge of approximately $0.22 per share, or $250 million, owing to delays in its Airborne Early Warning & Control program. The manufacturer continues to expect earnings per share of $5.70-$5.85 for full-year 2008 "as companywide performance and productivity are expected to offset the AEW&C charge by year end." Its EPS guidance for 2009 remains unchanged at $6.80-$7.00.
Austrian Airlines Group said yesterday that it will cut overall capacity by 5% for the coming winter season. Citing high fuel prices and weak demand, AAG said it will close its double-daily Vienna-London City service from Aug 18. In the winter, VIE-Chicago O'Hare flights will cease and frequencies from VIE to New York JFK and Mumbai will be reduced. Its fleet will be lowered by three aircraft in 2009. It did not announce any layoffs but warned that further cost-cutting actions could become necessary in the future.
US airlines and the Air Transport Assn. are reaching out to their customers to help control what they say is rampant speculation in oil futures that is contributing to today's record fuel prices. In an "open letter to all airline customers" signed by the heads of the 12 largest US passenger airlines, the CEOs ask them to urge Congress to tighten regulation of the oil futures market. According to the letter, "Twenty years ago, 21% of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery.
Japan Airlines plans to introduce its new premium economy cabin on four more European routes this year. From Oct. 2 it initially will be available on three of the seven weekly flights between Amsterdam and Tokyo and from Dec. 6 on all flights. Premium economy will be introduced on all three weekly Moscow-Tokyo flights from Nov. 29. The cabin will be offered on three weekly flights between London and Osaka from Oct. 1, going to daily from Nov. 29. It will be introduced on daily service between Paris and Nagoya from Dec. 6.
ACTS Aero Technical Support & Services, the former Air Canada Technical Services, is laying off 650 workers in response to declining MRO demand from Air Canada, the Canadian Press reported. According to the news service, the reductions will affect 250 fulltime employees and 400 others. Last month AC announced it will cut total system capacity by 7% year-over-year in this year's fourth quarter and the 2009 first quarter ( ATWOnline, June 18).
EgyptAir will become Star Alliance's 21st member today in a ceremony in Cairo. The carrier said it fulfilled all minimum requirements to become a Star member in fewer than nine months. It hopes to benefit from feed provided by Star members to bring further traffic to Cairo and Star hopes to be able to extend its presence in Africa via its newest member.
Lufthansa Technik subsidiary Lufthansa Technic AERO Alzey, which specializes in regional aircraft engines, named Mark Johnson as CEO replacing the departing Peter Kamenz. Johnson most recently was commercial manager at LH's Frankfurt hub.
Skyworks Leasing arranged the sale of a Transamerica Aviation A320 to VGS Aircraft Leasing One, a subsidiary of VGS Aircraft Holding (Ireland). Aircraft is on lease to US Airways. It also arranged the sale on behalf of Bank of America of a 767-300 to 767(2), a company affiliated with Ryan International Airlines, and of a former Skybus Airlines A319 acquired earlier this year from Air Canada to a special purpose company affiliated with VTB Leasing, Moscow. After interior modifications, that aircraft will be placed on long-term lease with Rossiya.
The steep rise in fuel prices confronting the commercial aviation industry will drive demand for new aircraft, according to Boeing, which said yesterday that it forecasts a $3.2 trillion market over the next two decades "driven by an increasing demand for airplanes to replace older, less efficient aircraft."
Vibro-Meter, a subsidiary of Meggitt Group, reached agreement with Boeing to supply the engine vibration monitoring system on the 777. The EVM will be available in a basic version with the same functionality as the previous system, plus an advanced version featuring an open architecture platform with computational power that enables engine manufacturers to integrate health monitoring algorithms. Rolls-Royce customers will receive the advanced system and Pratt & Whitney and GE customers the basic version.
US FAA issued new airworthiness directives this week requiring "repetitive inspections for cracking" of overwing frames on MD-80s and of the upper frame to side frame splice on the fuselage of 737 Classics. American Airlines is the largest operator of the MD-80 and Southwest Airlines is the largest operator of the 737 Classic series, but one or both of the types are present in the fleets of most other US major airlines.
