It appears that those behind the proposed A$10 billion ($7.88 billion) bid to take Qantas private have restructured their offer to avoid oversight by Australia's Foreign Investment Review Board.
International Aero Engines announced that Sichuan Airlines selected the V2500 to power two A319s and four A321s. Sichuan also became the Chinese launch customer for the V2500 Select aftermarket program, which will cover the new orders as well as 14 additional A320 family aircraft. IAE said the deal is worth more than $370 million.
Kingfisher Airlines took delivery of four IAE-powered A321s. It currently operates 10 A320s and three A319s and will be the first Indian carrier to operate the A321.
Boeing sold a combined three 787s, plus two options, yesterday to Arkia Israeli Airlines parent Nakash Group of America and business aviation firm PrviatAir of Switzerland. Nakash's order for two dash 9s and two options is worth $336 million at list prices and scheduled for delivery in 2012. It did not announce an engine choice for the aircraft, which will be used on routes to North America and the Far East. Arkia operates one 757-200, two 757-300s, four ATR 72-500s and five Dash 7s. PrivatAir's order had been listed on Boeing's website under an unidentified BBJ customer.
British Airways yesterday said it was "extremely disappointed" at the UK CAA's proposed price caps at BAA's London airports that will take effect in 2008. The framework for the new pricing scheme, to be implemented in April 2008 and continue for five years, also includes a recommendation that the government remove price controls at London Stansted. But it was the proposal for LHR and LGW that drew BA's ire.
Air Canada Technical Services entered into an agreement to acquire 80% of Aeromantenimiento SA, the MRO division of Grupo TACA, during the first quarter of 2007 for $44.7 million in cash and the right to acquire an equity stake in ACTS (expected to be less than 7%). Grupo TACA Chairman and President Roberto Kriete will join the ACTS board. "This is a key step in establishing ACTS as a leading MRO organization in the Americas," ACTS President and CEO Chahram Bolouri said. Aeroman employs about 1,000 and is a founding member of the Airbus MRO network.
Island Air, mired in the battle for regional airline supremacy in Hawaii ( ATW, December 2006), announced a restructuring that includes cutting 65 employees, reducing its fleet by two aircraft and cutting five routes from its network. Along with Hawaiian Airlines and Aloha Airlines, Island has been engaged in a struggle for market share since the arrival in June of low-cost Mesa Air Group subsidiary go!.
SkyEurope Airlines ended its first full fiscal year as a listed company deeper in the red as it doubled its net loss in the 12 months ended Sept. 30 to €57.3 million ($76.4 million) from the €28.6 million shed in the previous year. Revenues rose 41% to €158.6 million against expenses of €213.8 million, widening operating loss to €55.2 million from €33.6 million last year. Net loss in the fourth fiscal quarter totaled €7.1 million.
JetBlue Airways reduced by 32 the number of firm Embraer 190 aircraft it will take from 2007 through 2010 in order to "manage capacity growth while retaining maximum flexibility," it said yesterday. It also said it anticipates 14%-17% ASM growth in 2007 rather than its originally forecast 18%-20%. Under a revised schedule announced Monday, the LCC will take 10 E-190s per year over the next four years instead of 18 per year. However, it added options for 23 during the period, up from zero.
China Airlines will launch a twice-weekly Taipei-Stockholm cargo service on Dec. 6 aboard a 747-400F. Outbound flight will stop in Abu Dhabi and Luxembourg, return flight will stop in Abu Dhabi and Bangkok.
Pratt & Whitney and Turkish Airlines Technic signed an MOU yesterday to build a "major" aircraft engine overhaul facility at Istanbul Sabiha Gokcen, site of Technic's HABOM MRO initiative ( ATWOnline, Nov. 6). Financial terms were not disclosed. The joint venture will work on CFM56s and V2500s and expects to handle up to 200 engines annually.
Delta Air Lines announced a "comprehensive settlement agreement" with the US Pension Benefit Guaranty Corp. that will "resolve all issues" related to the termination of its pilots' defined benefit pension plan ( ATWOnline, Sept. 6). Under the terms, PBGC will be allowed a pre-petition unsecured claim against the airline of $2.2 billion and the debtors' reorganization plan will provide for the distribution of $225 million in senior unsecured notes to the agency.
Lufthansa inaugurated its thrice-weekly Frankfurt-Kolkata service Friday, making the West Bengal capital its sixth destination in India. Lufthansa Passenger Airlines Executive VP-Marketing and Sales Thierry Antinori spoke to ATWOnline at the launch event about the carrier's strategy for the subcontinent. LH generates 20% of its €2.5 billion ($3.33 billion) annual passenger turnover in the Asia/Pacific market and operates 45 weekly flights to India (38 from FRA and seven from Munich) with 20,000 total seats. "In 2003 we had 23 weekly frequencies.
The Internet, which more than 20 years ago was regarded "as an experiment in how to move data," now is the primary channel by which most major airlines communicate with their customers and ultimately could form the backbone of operational communications, experts said last week during the ATWOnline webcast, "Industrial Strength Internet: Can Mission Critical be Agile?" Shinkuro Inc. CEO Steve Cocker noted that there is "no foreseeable end or replacement" for the Internet.
Airbus plans to outsource 50% of A350 XWB development and will explore "a range of financing sources" to meet the expected €10 billion ($13.3 billion) in production costs for the program cleared by the EADS board late last week ( ATWOnline, Dec. 4).
Austrian Airlines Group said it raised €367 million through the offer of up to 51.68 million bearer shares that concluded Dec. 1 ( ATWOnline, Nov. 29) with a final offer price of €7.10 per share. "With the successful completion of our transaction, we have taken an important step in our restructuring program," CEO Alfred Oetsch said in a statement.
US Transportation Security Administration last week gave approval for a Registered Traveler program that will allow passengers to submit voluntarily to a background check to get an "RT card" permitting expedited security clearance at select US airports. The program will be administered only by approved private-sector providers. The first such provider is Verified Identity Pass, which has been operating its Clear Registered Traveler program on a trial basis at Orlando International.
Aer Lingus presented its unions with a 12-point cost-cutting plan Friday as part of its continuing effort to thwart Ryanair's floundering takeover bid and succeed as an independent carrier. According to press reports, EI has promised not to cut jobs without workers' consent. It also intends to simplify pay grades, enact standard work rules, renegotiate airport and ground handling contracts, introduce a fuel efficiency plan and look into the establishment of overseas bases, according to The Irish Times.
TAM Director of Institutional Relations Paulo Castello Branco has thrown cold water on recent reports that TAM is set to join one of the three major airline alliances.
South African Airways said it will lay off 1,000 employees, or approximately 9% of its workforce, next year in a cost-cutting measure, according to widespread South African press reports citing a statement from CEO Khaya Ngqula, who said the airline is enjoying increased traffic and revenue but cannot hold down its expenses. SAA's profit for the fiscal year ended March 31 plunged 90% year-over-year ( ATWOnline, July 7). Separately, SAA announced that it will start serving Chicago in May.
The Italian government on Friday confirmed its intention to reduce its controlling interest in Alitalia in an effort to lift the carrier out of the red and into an alliance.
Northwest Airlines reported a $37 million consolidated October profit on $1.03 billion in revenues. Year-ago figures were not available, but the airline did lose $346 million in the six weeks following its entry into bankruptcy on Sept. 14, 2005. NWA's October expenses came to $980 million and its operating profit was $52 million. It has forecast a "modest profit" for 2006 excluding reorganization items ( ATWOnline, Oct. 3).
Atlas Air Worldwide Holdings and DHL announced the finalization of DHL's acquisition of a 49% stake in AAWH subsidiary Polar Air Cargo and a 20-year blocked-space agreement announced in October ( ATWOnline, Oct. 17). The stock purchase agreement was executed Nov. 28.
