In a deal clearly inspired by the KLM-Northwest Airlines transatlantic joint venture, Air France and Delta Air Lines yesterday confirmed the creation of 50-50 JV to share revenues and costs on their transatlantic operations.
KLM Engineering and Maintenance signed a five-year component maintenance and availability contract covering BRA Transportes Aereos' eight 737s. Iberia Maintenance won a one-year contract from Pluna to conduct A-type inspections of a 767. Under a separate agreement, IB's maintenance division will maintain and overhaul the RB211-535E4s on one of the Uruguayan carrier's 757s.
FKI Logistex won a $123 million baggage handling system contract and a $67 million, five-year, full service and maintenance contract for New Doha International Airport.
Alaska Airlines launched the first phase of an $18 million check-in facility dubbed the Airport of the Future at Seattle-Tacoma International. The system, shared with Horizon Air, replaces traditional ticket counters with a series of kiosks and bag check stations designed to reduce customer wait times. The first of three check-in "islands" features 11 kiosks and 16 bag check stations. Remaining islands will enter service by mid-2008.
GE Aviation began testing the new CF34-10A that will power the ARJ21-700 being built by China Aviation Industry Corp. After a successful break-in run, the engine achieved 70% of its maximum thrust capability of more than 20,000 lb. during an initial test conducted on Oct. 8. The CF34-10A has about 80% commonality with the CF34-10E used on Embraer 190/195 aircraft. It will be certified at up to 18,500 lb. to meet thrust requirements for the 90-passenger ARJ21-700. Certification by US FAA is expected by late 2008. GE has sold almost 4,000 CF34s for regional jets.
US Dept. of Transportation will include several foreign carriers in the meetings called for Oct. 23-24 to address congestion issues, specifically in the New York market ( ATWOnline, Oct. 15), Reuters reported, mentioning Air France KLM, British Airways, Lufthansa, Japan Airlines and Virgin Atlantic Airways.
Delta Air Lines reported third-quarter net income of $220 million, more than quadrupling net earnings of $52 million in the year-ago quarter when it was operating under bankruptcy protection, and said it actively is seeking ways to cut costs further, including the possible sale of regional subsidiary Comair.
Bidding for AeroMexico intensified yesterday as both the Saba family and Banamex boosted their rival offers for the carrier and Mexicana urged stakeholders not to dismiss its bid despite a rejection by regulatory authorities on antitrust grounds. Father and son Alberto Saba Raffoul and Moises Saba Masri increased their bid to MXN1.89 billion ($174.7 million) while Banamex, the Mexican arm of Citigroup, said the group of investors it is leading have upped their bid to MXN1.85 billion.
Jet Airways yesterday finalized its order for 20 winglet-equipped 737-800s placed last week ( ATWOnline, Oct. 9). The aircraft are worth nearly $1.5 billion at list prices, Boeing said. Engine choice was unannounced.
Despite its abrupt withdrawal from the deal to purchase a major stake in China Eastern Airlines in conjunction with Cathay Pacific Airways last month, Air China still is considering a merger and will evaluate its options over the next three months, President Li Jiaxiang told reporters yesterday after attending the Communist Party of China's national congress in Beijing.
American Airlines flew 10.85 billion RPMs in September, up 2.4% on the year-ago month. Capacity fell 1.4% to 13.83 billion ASMs and load factor rose 2.9 points to 78.4%. American Eagle Airlines flew 709.4 million RPMs, up 1.8%, against a 1% increase in ASMs to 1.01 billion. Load factor lifted 0.5 point to 70.2%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.44 billion RPMs in September, a 14% increase over the year-ago month. Capacity was up 12.9% to 1.9 billion ASMs and load factor rose 0.8 point to 76%.
Skybus Airlines will add a second daily Columbus-Greensboro flight from Jan. 6 and will operate a third daily CMH-Punta Gorda/Fort Myers service Jan. 6-March 31. Flights from CMH to Bellingham and one of two daily Burbank flights will be discontinued Jan. 6 and the startup's San Diego service will end March 7. CEO Bill Diffenderffer said the adjustments were "based primarily on the sharp increase in the cost of jet fuel" and the need to "find ways to use our fleet more effectively to serve more passengers in more cities." From Dec. 17 Skybus will operate flights to St.
SkyTeam partners Air France KLM and Delta Air Lines today will announce a wide-ranging agreement on the joint operation of transatlantic flights, including a number of flights from London Heathrow to US destinations, as the carriers seek to challenge British Airways directly when the EU-US open skies accord takes effect at the end of March.
Gate Gourmet will manage onboard retail across easyJet's network under a multiyear deal announced yesterday covering all beverages and food for onboard purchase, crew meals, duty free products and other provisioning.
Officials from Star Alliance and EgyptAir were in Cairo yesterday to announce that the world's largest airline grouping is expanding yet again, this time to North Africa, and to tout the progress of Cairo International Airport's new Terminal 3, which will host Star carriers when it opens next year. EgyptAir, which operates 48 aircraft to 60 destinations in 44 countries, will become Star's 21st member when it joins "within the next 18 months." Air China, Shanghai Airlines and Turkish Airlines also are preparing to join.
Lufthansa is making inquiries about purchasing a 25% stake in LOT Polish Airlines from receivers of the old Swissair, Polish Deputy Treasury Minister Dawid Jackiewicz said in comments to reporters cited by Thomson Financial. "We would prefer that it not be a sector investor because any existing player could be opposed to the expansion and development of LOT. If it is Lufthansa, we will be every unhappy," he said.
Boeing shuffled its 787 leadership team in response to the delay announced last week ( ATWOnline, Oct. 12), naming Boeing Integrated Defense Systems VP-Missile Defense Systems Pat Shanahan as VP and GM of the 787 program replacing Mike Bair, effective immediately.
Guggenheim Aviation Partner Fund II exercised options for three 777 freighters, Boeing announced yesterday. The order is valued at approximately $750 million and brings GAIF II's freighter commitment to six 777s and four 747-8s. Other Guggenheim-managed funds have ordered six 747-400ERFs and seven 747-400BCFs, the manufacturer said. Delivery date and engine choice were not announced.
CAAC is aiming to boost China's long-neglected domestic regional market further with the distribution of new subsidies even as the recent trend of companies investing in regional startups appears to be accelerating.
Gol said it concluded a committed aircraft pre-delivery payment loan facility worth $310 million covering the 21 737-800s scheduled for delivery from July 2008 through 2009. It said the financing comprises eight banks and was led by Calyon and Citigroup.
UPS Chairman and CEO Mike Eskew will retire at the end of the year and be succeeded by Vice Chairman and CFO Scott Davis, the parcel delivery giant said yesterday. Davis, 55, joined UPS in 1986 when it acquired technology company II Morrow, of which he was CEO. He served in positions of increasing responsibility in finance and accounting before assuming the role of CFO in 2001. He was named vice chairman and elected to the UPS board in 2006.
Finnair flew 1.73 billion RPKs in September, a 16.8% increase over the year-ago month. Capacity grew 18.6% to 2.31 billion ASKs and load factor fell 1.1 points to 75%. WestJet flew 963.4 million RPMs in September, up 18% on the year-ago month. Capacity rose 13% to 1.22 billion ASMs and load factor increased 3.5 points to 78.7%. Austrian Airlines Group flew 1.82 billion RPKs in September, down 17.8% from the year-ago period, against a 17.9% fall in capacity to 2.3 billion ASKs. Load factor rose 0.1 point to 79%.
Delta Air Lines plans to launch five-times-weekly Atlanta-Queretaro service on Jan. 14, subject to regulatory approval. The city would be DL's 19th Mexican destination, the most it serves in any foreign country. Aerolineas Argentinas will launch twice-daily Buenos Aires-Asuncion flights on Oct. 22. One daily flight will be nonstop while the other will stop in Corrientes four-times-weekly and Resistencia thrice-weekly. It also will launch weekly Cordoba-Rio de Janeiro Galeao service on Dec. 16 aboard a 108-seat 737-500.
Nacional de Aviacion Let 410 that had been missing since departing Villavicencio on Oct. 8 was discovered last week in mountains near Cubarral, with all 15 passengers and three crew onboard killed, Flight Safety Foundation's Aviation Safety Network reported. The aircraft belonging to the Bogota-based airline was on its way to Uribe and first flew in 1990.
