Air New Zealand said it will replace 15 standard economy seats with eight premium economy seats in the main cabin of its eight 747s by the end of October. It also is near completion of the first stage of its two-stage cabin upgrade on its five 767s. By July it will finish replacing carpets, seat covers and curtains. Later in the year it will refurbish the galleys and lavs and add more IFE screens. ANZ leases two additional 767s and will not upgrade those aircraft, which are scheduled to leave the fleet in October 2006 and August 2007.
Frontier Airlines said its May yield rose 3% over the year-ago month to 10.31 cents and RASM increased 7.6% to 8.23 cents. Traffic grew 24.2% to 763.7 million RPMs against a 19% rise in capacity to 956.8 million ASMs, sending load factor up 3.3 points to 79.8%.
Singapore Airlines reported an 8.9% year-on-year growth in May RPKs to 6.75 billion. Capacity rose 3.7% to 9.55 billion ASKs, lifting load factor 3.3 points to 70.7%. AirTran Airways flew 1.2 billion RPMs in May, a 23.2% increase over the year-ago month. Capacity climbed 21.3% to 1.58 billion ASMs and load factor rose 1.2 points to 75.8%.
Air Canada launched daily Montreal-Denver service Friday aboard an A319. AC flew 4.06 billion RPMs in May, a 5.7% increase over the year-ago month. Capacity rose 2.2% to 4.93 billion ASMs, lifting load factor 2.7 points to 82.3%. Domestic traffic grew 2.6% to 1.32 billion RPMs as capacity increased 4.9% to 1.67 billion ASMs and load factor fell 1.7 points to 79%. International RPMs jumped 4.9% to 2.1 billion as capacity dropped 0.8% to 2.44 billion ASMs, raising load factor 4.7 points to 86.2%.
LTU owner Hans Rudolf Woehrl does not see much likelihood that the troubled leisure airline will achieve a breakeven operating result this year after he was unable to reach agreement with the carrier's unions on wage cuts he proposed. He is seeking to reduce costs by €45 million ($57.3 million), including €15 million in salary cuts ( ATWOnline, June 12). According to Die Welt, Woehrl has not ruled out layoffs as a way to lower costs.
Airbus and parent EADS responded to increasing criticism over A380 program delays announced last week, with the focus intensifying on EADS Co-CEO Noel Forgeard's sale of €2.5 million ($3.2 million) in stock options three months prior to EADS' stock sinking 26% on June 14 on news of the next-generation aircraft program's setback. Forgeard, who served as Airbus CEO until last year, told Europe 1 radio that he first learned of potential new problems with the A380 program in April and claimed the stock sale was "an unfortunate coincidence."
Air India said it received expressions of interest from seven parties/consortia in serving as its consultant in preparing a "road map" for its merger with Indian Airlines. Its board will invite the bidders to make presentations June 26-27.
Mitsubishi Heavy Industries and Kawasaki Heavy Industries last week unveiled for the first time to media their high-tech fabrication and assembly plants for the 787. MHI is responsible for the wing box while KHI is building the forward fuselage (section 43), fixed trailing edge and components of the wheel well. MHI Director-Program Manager-787 Program Office Takashi Fujimoto showed off the world's largest autoclave, measuring 40 m. by 7 m. in diameter.
Korean Air will launch thrice-weekly Incheon-Las Vegas service from Sept. 22 aboard a 301-seat 777-200. SkyEurope Airlines will increase frequencies from Bratislava to Bucharest and Sofia to six-times-weekly from four from Sept. 11.
Delta Air Lines asked Wednesday for a four-month extension to the exclusivity period for filing its reorganization plan. The period is set to expire on July 11. The airline said in its filing submitted to the US Bankruptcy Court in New York that the extension to Sept. 9 is required to address pension plan obligations, retiree benefit issues and its business model, "among other things."
British Airways announced changes to its baggage policy on mainline services, including allowances for hand, checked and excess baggage that will be phased in over the next five months. BA will not, at least yet, start charging for checked luggage as do LCC peers like FlyBE and Ryanair ( ATWOnline, Jan. 26). "We have created new policies which are easier to understand and will reduce queuing time at airports," BA Commercial Director Martin George said.
Boeing denied reports that its 787 program schedule has been affected by a fault in a composite fuselage barrel section. According to Mike Bair, VP and GM-787 program, the fault had been expected owing to a problem with a particular mandrel that developed a flaw. "We knew there was a problem with the mandrel, which we tried to fix but we should have scrapped it," he said.
The tentative open skies agreement negotiated last year between the US and EU was dealt a potentially fatal blow Wednesday when the US House of Representatives voted to delay by a year a DOT rulemaking that is seen as key to winning European support for the air service agreement, while Air France-KLM Chairman Jean-Cyril Spinetta said he does not believe European policymakers will find the rulemaking palatable in the wake of recent changes by DOT.
Finnair said a €100 million bond issued Wednesday and directed at Finnish institutional investors was fully subscribed. It matures in 2012. "With this emitted bond we wanted to expand our financing flexibility. Our fleet investment program is over €1 billion for the years 2006-2015," CFO Lasse Heinonen said.
Republic Airways Holdings promoted Tim Dooley to VP-financial planning & analysis. Alaska Airlines named Chris Glaeser VP-safety. He comes from Northwest Airlines, where he was director-flight safety, quality assurance and industry affairs.
Copa Holdings, parent of Copa Airlines and AeroRepublica, filed a registration statement yesterday with the US Securities and Exchange Commission for the sale of 6.6 million nonvoting shares held by Continental Airlines, which would hold a 12.3% stake in Copa following the sale or 10% if the overallotment is exercised. Copa said it will not receive any of the proceeds.
SITA signed an agreement with Athens International Airport to distribute and sell its AirportConnect CUTE, AirportConnect Kiosk, BagManager and BagMessage IT applications in Greece. This is the third agreement of its kind since SITA announced plans in February to establish a global network of Indirect Channel partners to provide its IT solutions to medium-size and small airports that handle 5 million passengers or fewer per year ( ATWOnline, Feb. 3).
After nearly three decades of frustration, Southwest Airlines will have to wait only eight more years to unleash itself from its Love Field base. The mayors of Dallas and Ft. Worth, along with Southwest and American Airlines, yesterday unveiled a long-awaited compromise that--subject to approval and appropriate legislation from the US Congress--will dilute and eventually repeal the Wright Amendment. Through-ticketing will be made available to DAL passengers as soon as Congress acts, and all flight restrictions will be removed in 2014.
Gol flew 1.17 billion RPKs in May, a 55.9% rise over the year-ago month. Capacity increased 53.8% to 1.6 billion ASKs, lifting load factor 1 point to 73%.
US Homeland Security Dept. said airlines are withholding $14.5 million per year from the Transportation Security Administration, according to press reports. The money is supposed to come from the $2.50 charge levied to passengers for each leg of a flight. TSA said it plans to audit airlines to ensure it receives the money.
