Airlines are concluding preparations for the launch of commercial charter flights across the Taiwan Strait, which are expected to start July 4, after an agreement between the Strait Exchange Foundation (Taipei) and the Assn. for Relations Across the Taiwan Strait (Beijing) was signed Friday in Beijing.
Deutsche Flugsicherung reached agreement with Office National Des Aeroports in Casablanca to provide a €2.4 million ($3.7 million) training simulator with 17 workstations. Software features en route and approach control procedure testing and ATM system simulation. Contract covers training courses for ATC instructors and technical staff.
Mechtronix Systems last week unveiled its "new generation" A320 FFS X full flight simulator that has been purchased by TACA and IFTC Istanbul (International Flight Training Center Istanbul), a subsidiary of Turkey's Gozen Group and affiliate of Freebird Airlines.
Delta Air Lines flew 10.51 billion system RPMs in May, up 4.2% from the year-ago month. Capacity rose 1.5% to 12.67 billion ASMs, lifting load factor 2.1 points to 82.9%. It said RASM performance was "strong" and that it was "well positioned" to deliver on its summer revenue targets. SAS Group flew 3.05 billion RPKs in May, up 12.5% from the year-ago month. Capacity rose 11.3% to 4.26 billion ASKs, lifting load factor 0.7 point to 71.7%. SAS Scandinavian Airlines flew 2.61 billion RPKs, up 11.8%, against a 10.5% lift in ASKs to 3.56 billion.
Silverjet's recent roller coaster ride, which appeared to end happily for the all-business-class carrier earlier last week with an acquisition and relaunch agreement with a Swiss investment firm, took a plunge for the worse Friday as the deal suddenly collapsed.
SITA signed a $6.2 million deal with Sweden's Skyways Express to overhaul passenger management processes and manage seasonal variations in passenger traffic. Five-year contract calls for migration to SITA's Passenger Management and Revenue Optimization Solution Suites.
SR Technics signed five 10-year agreements with Aer Lingus to provide line maintenance services at Dublin for A320, A321 and A330 aircraft. Contracts cover A checks, ground handling, deicing and cosmetic service. Work is scheduled to begin July 6. Contracts are expected to deliver anticipated maintenance cost savings "in excess" of €20 million ($31 million) in the first full year, EI said. It signed agreements with three other maintenance providers as part of its cost-reduction program.
Finnair announced yesterday that it will begin negotiations with personnel regarding cuts in production that it anticipates will affect approximately 500 employees through layoffs and terminations, an adjustment in the number of temporary staff and reducing workers to part-time status.
Nav Canada yesterday announced a proposal to maintain a 1% reduction in its service charges that was implemented on a temporary basis on Aug. 1, 2007, and was set to expire Aug. 31, 2008. The air navigation services provider said continuation of the lower rates will save customers an estimated C$13 million ($12.7 million) in FY09.
UK CAA said flight punctuality fell in the first quarter. Overall ontime performance of scheduled flights at the 10 UK airports monitored dropped by 4 points year-over-year to 68%. London Luton, Gatwick, Stansted and Birmingham all improved, whereas the situation at Heathrow deteriorated by 9 points to only 56% and London City dropped 12 points to 58%. Average delay across all flights monitored rose to 18 min. from 16 min. in the first quarter of 2007.
US Airways yesterday unveiled a range of initiatives designed to negotiate what Chairman and CEO Doug Parker called "this new and challenging environment," including introduction of a $15 charge for the first piece of checked baggage, aircraft returns and up to 1,700 job cuts. Similar to its domestic rivals, US is facing a fiscal crunch as a result of soaring fuel costs. It said its 2008 fuel expense will increase by $1.9 billion from the previous year to 39% of the mainline and regional total. It lost $236 million in the first quarter.
ATA Airlines, which shut down early last month ( ATWOnline, April 4), is suing FedEx Corp., saying its decision to cancel a contract for military charter operations forced ATA into bankruptcy, the Associated Press reported. The charter operation was a key component of ATA's business and generated some $400 million in annual revenue.
The European Commission this week confirmed the launch of an in-depth investigation into the Italian government's €300 million ($465 million) emergency bridge loan to Alitalia, granted in April under a specific decree-law. A second decree-law on May 27 allowed AZ to incorporate that sum into its equity capital, enabling it to avoid bankruptcy proceedings and permit its possible privatization ( ATWOnline, June 3).
American Airlines flew 11.76 billion system RPMs in May, down 1.1% from the year-ago month. Capacity fell at the same rate to 14.39 billion ASMs and load factor was level at 81.7%. American Eagle flew 726.6 million RPMs, down 9.5%, against a 6.5% decline in capacity to 994.1 million ASMs. Load factor dropped 2.4 points to 73.1%. Continental Airlines said May consolidated unit revenue rose an estimated 6.5%-7.5% year-over-year. It flew 8.28 billion consolidated RPMs, up 1.8%, against a 2.2% increase in capacity to 10.2 billion ASMs. Load factor slid 0.3 point to 81.2%.
Air Malta and Turkish Airlines signed a codeshare agreement under which THY will place its code on KM's twice-weekly Malta-Istanbul Ataturk. The carriers said the deal "is expected to pave the way for further cooperation. . .in the near future."
Cyprus Airways is considering a partial renewal of its fleet to cut down on its growing fuel bill, it said this week. "We are looking at the possibility of a part renewal of our aircraft in some depth. We expect to have a partly renewed fleet by the next summer season," Chairman Kikis Lazarides said at a Nicosia news conference, Reuters reported. It said CY's fleet of two A319s, seven A320s and two A330-200s has an average age of 12.5 years. The airline reported a rare profit in 2007 ( ATWOnline, Feb.
Boeing began the 787 power-on process this week, a critical step toward the company's being able to meet a revised schedule that has first flight slated for the 2008 fourth quarter, and said full power-on likely will be achieved in 10-14 days following tests of various systems during coming days.
United Airlines yesterday joined American Airlines and US Airways (see story above) in announcing that it will charge $15 to check a first bag on North American flights. The fee will apply for trips from Aug. 18 for tickets purchased from today for flights within the US and to/from Canada, Puerto Rico and the US Virgin Islands. First and business class passengers will be exempt as will UA and Star Alliance "premier status" members. The carrier estimated that the fee and $25 it is charging for a second checked bag will generate $275 million in revenue annually.
Continental Airlines yesterday detailed route closures stemming from its decision last week to downsize ( ATWOnline, June 6), leading to a mainline system capacity reduction of 6.8% year-over-year in the fourth quarter. From Sept. 3 it will discontinue a number of routes. Most prominently, it will stop flying Houston Intercontinental-Washington Dulles, IAH-Oakland, Newark-Cologne/Bonn, EWR-Salt Lake City, Cleveland-IAD and Guam-Bali.
Air France is urging manufacturers to launch a medium-haul aircraft program that will generate greater fuel efficiency gains compared to the current 737 and A320 family offerings.
Finnair is preparing to reduce capacity by about 2% initially due to the soaring cost of fuel and slowing demand and also may cut jobs, CEO Jukka Hienonen told Helsingin Sanomat. "If we have to make a reduction that equals the level of average overcapacity in Europe, 7%-10%, we will face staff cuts," he said. Finnair held talks with staff Tuesday regarding possible capacity reductions. Hienonen previously told ATWOnline that he is preparing the airline for what he considers to be an impending crisis in commercial aviation.
Brussels Cargo, the cargo division of Brussels Airlines, launched a new daylight courier service to and from Brussels that will be marketed by Globe Air Cargo. It initially is serving Athens, Barcelona, Lisbon, Nice, Madrid and Warsaw carrying pieces of up to 32 kg. each.
Silverjet announced that it has reached "principal terms" with Kingplace, an Irish-registered investment group managed by Geneva-based Heritage, to acquire and re-launch the all-business-class carrier. Silverjet shut down two weeks ago when it failed to secure promised funds from a UAE-based investor ( ATWOnline, June 2). The London Luton-based airline's administrators said the transaction is expected to be completed by Friday.
