Italian government will not be able to sell its stake in Alitalia through private negotiations, Economy Minister Tomasso Padoa-Schioppa said last week in Cortina D'Ampezzo, according to widespread press reports from Italy. He argued that the courts would investigate why the government negotiated with one suitor rather than another, making the transaction impossible to complete. The government has not revealed its course of action following its failure to sell off its 49.9% stake.
International passenger growth remains robust but cargo growth has halved in the first six months of 2007, IATA reported yesterday. Passenger traffic measured in RPKs rose 6.3% over the first half of 2006, slightly higher than the 5.9% recorded for full-year 2006. However, RPK growth weakened in June to 5.3%, the lowest rate in nine months. While freight demand expressed as FTKs increased only 2.7% in the first semester, well below the 4.6% recorded for full-year 2006, June demand was up 4.9%.
Regional Express Holdings, which operates in Australia as Rex, announced the purchase of five Saab 340Bs that recently came off lease for A$11.5 million ($9.8 million). It now operates 22 owned Saab aircraft and has an additional 11 on lease.
New Dubai World Central International Airport under construction at Jebel Ali awarded the meteorological system contract at JXB to Emirati firm International Aeradio LLC, while the UK's Park Air Systems will be responsible for a VHF atmospheric radar implementation. Procurement and installation of the packages has commenced, the airport said.
World Airways reached a tentative five-year labor agreement with cabin staff represented by the International Brotherhood of Teamsters. The deal will be presented to membership for ratification.
Spirit Airlines said its dispatchers represented by the Transport Workers Union ratified a new labor agreement. No other details were provided. Separately, the carrier will launch daily Fort Lauderdale-Ponce flights on Nov. 1. It will be Spirit's third destination in Puerto Rico.
Macquarie Airports led a consortium that purchased a 9.56% stake in Japan Airport Terminal Co., which owns, manages and operates the three passenger terminals at Tokyo Haneda as well as retail businesses at Tokyo Narita and Osaka Kansai. MAp said the stake cost approximately ¥19.6 billion ($163.3 million) and that its own interest in JAT is 4.79%.
Copa Airlines Friday took delivery of its eighth 94-seat E-190, bringing its total fleet to 32 aircraft. It will take three more E-190s and two 737-800s before year end.
The EU made its final argument last week in the aircraft subsidy case before the WTO, calling US claims that France, Germany, Spain and the UK have provided $205 billion in illegitimate launch aid to Airbus since 1995 "completely unrealistic."
New Brazilian Defense Minister Nelson Jobim, in charge of reforming the country's troubled air traffic system, inspected the main runway at Sao Paulo Congonhas Friday and cleared its reopening 10 days after the fatal TAM A320 crash that killed 199 people. Jobim took charge of the military-run ATC system last week in the aftermath of the accident and as thousands of passengers were stranded at airports plagued by rampant flight delays and cancellations ( ATWOnline, July 26).
Midwest Air Group reported second-quarter earnings of $4.9 million, a 44.6% drop from the $8.8 million profit posted during the same period a year ago. Operating revenue rose 10% to $194.5 million, which the company attributed to a 15.8% increase in passenger traffic. "While the pricing environment was challenging, the demand for travel remained strong in the second quarter," CEO Timothy Hoeksema said.
PowerJet, the 50/50 joint venture between Snecma and NPO Saturn developing the engine for the Sukhoi Superjet, named Jean-Paul Ebanga chairman and CEO. He replaces Michel Dechelotte, who is moving to another position within Safran Group.
Rolls-Royce's Civil Aerospace segment ended the first half of 2007 with an order book worth £28.1 billion, up from £20 billion at the end of 2006. The company delivered 421 engines during the semester compared to 412 in the first six months of 2006 and recorded sales worth £2.01 billion compared to £1.79 billion in the year-ago period.
China Eastern Airlines created a Beijing Branch Company in order to establish itself further in the capital, where its passenger traffic has increased 15% over the past two years but its market share is just 11%. The Shanghai-based carrier noted that Beijing offers greater opportunities due to its location and next summer's Olympic Games. "We can take advantage of our Beijing Branch Company to expand our network in the Beijing-centered northern region," MD Cao Jianxiong said. Expanding in Beijing is becoming an attractive option for Chinese airlines based outside the capital.
A series of one-time charges plus the "sharp decline in traffic and passenger revenue" that President and CEO Jeff Potter said has plagued "much of the industry" during the spring contributed to a $3.5 million first fiscal quarter loss for Frontier Airlines, which posted a $4 million profit in the year-ago period.
Ryanair announced the following new routes: From Bristol to Turin (weekly from Dec. 22); from Nottingham East Midlands to Belfast City (daily from Oct. 30), Grenoble (weekly from Dec. 22), Poznan (thrice-weekly from Nov. 8), Salzburg (weekly from Dec. 22) and Tenerife (twice-weekly from Oct. 28); from Liverpool to Belfast City (daily from Oct. 30), Budapest (four-times-weekly from Oct. 31), Bydgoszcz (twice-weekly from Oct. 28), Fuerteventura (thrice-weekly from Oct. 30), Grenoble (weekly from Dec. 22), Lodz (twice-weekly from Oct. 29), Salzburg (weekly from Dec.
Air New Zealand Technical Operations signed a five-year, $45 million deal with Hawaiian Airlines covering heavy MRO on the airline's 18 767s. First aircraft will arrive in Auckland in mid-August.
Alaska Airlines and Horizon Air parent Alaska Air Group suffered a 16.9% decline in second-quarter profit to $46.1 million compared to the $55.5 million earned in the year-ago quarter, which Chairman and CEO Bill Ayer said represented "a solid performance in view of significantly higher fuel costs and a softer revenue environment."
Air India last week took delivery of its first 777-200LR, part of its January 2006 order for 68 aircraft ( ATWOnline, Jan. 12, 2006). It is expected to take an additional three 777-200LRs and three -300ERs this year. It will use the aircraft delivered last week on its new Mumbai-New York JFK service scheduled to launch Aug. 1. The aircraft will seat 238 passengers in a three-class configuration.
Pratt & Whitney announced that its Global Material Solutions subsidiary earned PMA certification from US FAA for the CFM56-3 high-pressure turbine shroud, marking the first certification for the 48 life-limited and gas-path replacement parts it plans to produce for the engine ( ATWOnline, March 30).
US and EU announced an agreement "to jointly adopt and provide an improved design for their respective Global Navigation Satellite System signals." The signals will be implemented on the Galileo Open Service and the new GPS IIIA civil signal. "Today's announcement underscores Europe's commitment to interoperability between Galileo and GPS and to managing the Galileo program in an innovative partnership with the [US]," European Commission DC Matthias Ruete said.
China's big three airlines--Air China, China Southern Airlines and China Eastern Airlines--expect to post first-half profits thanks largely to "continuous growth of the domestic market" and the appreciation of the yuan. China Southern yesterday said it expected a reversal from its CNY835 million ($110.4 million) loss in the year-ago semester, while earlier this week Air China said in a filing with the Shanghai Stock Exchange that it expected to report a profit more than 20 times greater than the CNY45.8 million earned in the first six months of 2006.
