Condor Technik will launch line maintenance operations on Condor Airlines' 757s in November and on its nine 767-300s and 13 757-300s next spring. Staffing is expected to reach 170 by next year.
Japan Airlines, Boeing and Pratt & Whitney will team up to conduct a demonstration flight "to accelerate current research and development into the creation of a second-generation biofuel," JAL announced yesterday. A JT9D-powered JAL 747-300 will fly for 1 hr. with one of its four engines partially powered by a yet-to-be-determined biofuel sometime toward the end of the fiscal year ending March 31, 2009 ( ATWOnline, June 23).
Abu Dhabi Aircraft Technologies will provide Silver Air of Djibouti with MRO service for its 737-200s under a total care agreement announced last week.
Air Berlin unveiled a cost reduction package that will include removal of 14 aircraft from service by year end and the closure of the Munich administrative offices of dba. "The organizational restructuring contributes significantly to lowering cost and maintaining competitiveness," CEO Joachim Hunold said. AB reported a slightly narrowed €59 million ($91.5 million) first-quarter loss ( ATWOnline, May 30).
Focus Aviation reached agreement with KLM to provide marketing services for the sale of 15 F100s. Manufactured in 1989, aircraft are operated by KLM Cityhopper.
SkyEurope Airlines added Vienna-based ASP as an investor. The firm purchased 7.24% of the LCC on the bourse for approximately €7 million ($10.9 million). ASP reportedly was attracted by the fact that SkyEurope has reduced its costs 17.7% over the past six months. However, it still faces a first-half loss of around €28.5 million.
IATA and US Air Transport Assn. strongly objected to a US Dept. of Homeland Security proposed rule that would establish an "exit" program at US airports requiring airlines to fund and manage the collection of fingerprints from non-US citizens departing the country.
TUI Travel signed an agreement with AerCap Holdings and Deucalion Aviation Funds for the sale and leaseback of 19 owned aircraft within the TUI Travel fleet for $526 million. Aircraft will be acquired through a 50/50 joint venture between AerCap and Deucalion and will be managed by AerCap, which will receive servicing fees. TUI Travel will continue to operate the 11 737-800s, six 757-200s and two 767-300ERs on 1-7-year operating leases with TUIfly, Thomsonfly, TUIfly Nordic and Jet4You.
Malaysia Airlines will reduce capacity by 6% and enact other cost-saving measures, according to MD Idris Jala, who said MAS will "freeze. . .recruitment, defer spending, adjust fares and review routes and flights which are losing money," Thomson Financial reported from Kuala Lumpur. He said MAS also may decline to exercise its option for 20 737-800s that accompanied its firm order for 35 in March ( ATWOnline, April 1).
FedEx Express received a US FAA supplemental type certificate for a new avionics system that combines Honeywell's Head Up Display and Elbit Systems of America's infrared Enhanced Flight Vision System and plans to install it on its MD-10 freighters.
Cargolux commenced weekly Vienna-Hong Kong service. Ryanair will launch daily West Knock-Liverpool on Oct. 27 and in November will fly from Shannon to Gdansk, Katowice and Lodz.
EasyJet expanded its Milan Malpensa operation with an 11th based aircraft and announced it will base two additional aircraft at MXP by the beginning of the winter schedule. Aircraft will fly on new routes to Copenhagen, Stockholm Arlanda, Sofia, Brindisi and Lamezia Terme. In addition, it will increase frequencies to Barcelona, Naples, Amsterdam and Paris Charles de Gaulle in October. It opened its MXP base in March 2006 and last year carried 2.2 million passengers through the airport. It expects 3.5 million this year and by January 2009 plans to base 15 aircraft in Milan.
Cargo carrier MK Airlines recommenced flight operations after administrators secured funding last Friday from Transatlantic Aviation Ltd., part of The Belfairs Management Group. MK suspended service June 10 and was in discussions with several parties regarding investment that would help it renew its fleet of 747-200Fs and DC-8Fs.
Bombardier yesterday announced the sale of four CRJ700 NextGens plus four options to an unidentified carrier and an order for three Q400s from ANA. The firm CRJ order is worth $146 million at list prices. The ANA deal represents the conversion of three previously held options and is valued at $80 million. Delivery will begin in 2010. The carrier said it will sell one of its current 14 Q400s and replace its F50s.
Northwest Airlines President and CEO Doug Steenland testified before a US House of Representatives subcommittee yesterday that US airlines are expected to spend $61.2 billion on jet fuel in 2008, $20 billion more than in 2007, and are projected to incur losses totaling close to $10 billion for the year. "If the current pricing dynamic does not change, our industry will be severely challenged and will continue shrinking," he said. "It is as simple and stark as that. .
It's not too late for struggling airlines to shift to new technology and cut costs, according to Paul Coby, chief information officer of British Airways. Coby, who also is chairman of the board of SITA, told delegates to SITA's Air Transport IT Summit in Brussels to take advantage of the "community model" that allows carriers to use new technologies on a per-transaction basis rather than requiring a large upfront investment.
Lufthansa suffered a 4-hr. wildcat strike by 250 ground workers yesterday in Dusseldorf that resulted in the cancellation or delay of 30 flights, the ver.di union said. It staged a similar walkout last week and said it is seeking a 9.8% pay increase over a one-year period for ground and cabin crew, while LH offered increases of 3.4% and 2.1% over 19 months.
Italy's civil aviation authority called a meeting with Alitalia Chairman Aristide Police for Wednesday morning to discuss the flag carrier's financial situation. In addition to an update, ENAC said it wants to be briefed on how AZ plans to manage the summer traffic increase. Separately, the Italian Senate last week officially approved the €300 million bridge loan to AZ ( ATWOnline, June 13).
Continental Airlines announced a public offering of 11 million shares of class B common stock priced at $14.80 per share. It granted underwriter UBS Investment Bank a 30-day option to purchase an additional 1.65 million shares to cover any overallotments. Issuance and delivery of the shares is scheduled for June 25.
Boeing achieved full power-on for its first 787 two weeks ahead of schedule, a significant milestone as the company seeks to restore a reputation tarnished by a trio of delays to the aircraft's first flight. The power-on process started June 12 and brings electrical power onto the airplane in stages. The complexity of that process is increased by the fact that on the 787 the pneumatic (bleed air) system is replaced totally by electronics ( ATWOnline, June 13).
Austrian Airlines Group CCO Andreas Bierwirth said the carrier is considering establishing an even greater presence in Central and Eastern Europe. It already holds a 22.5% share in Ukraine International Airlines and would strengthen its foothold with investments in other carriers in the region. "If AAG is earning positive results and we have enough cash available, then we can be more active in this region," Bierwirth told ATWOnline in Vienna. He claimed Austrian will be more assertive in the region. "Even with our share in UIA, other airlines grew as well.
TAM flew 2.11 billion domestic RPMs in May, up 16% year-over-year, against a 10.2% increase in ASMs to 2.89 billion. Load factor rose 3.7 points to 73.1%. International traffic climbed 34% to 1.25 billion RPMs while capacity rose 23.5% to 1.68 billion ASMs. Load factor was up 5.8 points to 74.5%.
