Air Malta, which posted an operating loss of MTL2.3 million ($6.6 million) in the first nine months of its fiscal year, announced Wednesday that COO Joe Cappello has replaced Ernst Funk as CEO. Cappello joined the airline in 1976 working in market research and rose to become COO in 2002. "Cappello's experience is vast in every area of our business, not least in the critical commercial revenue generation aspect," Air Malta Chairman Lawrence Zammit said.
Lufthansa signed a full-content distribution agreement with Worldspan. In addition to resulting in lower distribution costs, "Worldspan has provided technology tools to help lower our overall IT expenditure," said Josef Bogdanski, LH senior VP-sales-Germany and global key accounts.
Aviation Fleet Solutions said its QuietEagle noise reduction system, developed and marketed with Pratt & Whitney and designed to reduce cumulative noise from JT8D-200-powered MD-80s by up to 6 dB, received FAA certification.
Lufthansa Technik signed a five-year contract to provide its Total Component Support package for Wizz Air's A320 fleet, which will number 24 aircraft by the end of the contract. Separately, LHT said Kuwait Airways is the launch customer for its newly developed and certified stretcher designed specifically to transport patients onboard aircraft.
American Airlines sent letters to approximately 600 maintenance workers, cleaners, stock clerks and crew chiefs at 24 US airports warning them of possible layoffs. "We cannot say right now whether these job reductions will be temporary or permanent," said a letter to Los Angeles employees obtained by Bloomberg News. New AMR Corp. Executive VP and CFO Thomas Horton has been on record saying he believes AA must cut labor costs to stay competitive. Separately, AMR announced that its 4.25% Senior Convertible Notes due 2023 now are convertible into shares of common stock.
Aer Lingus's largest union, the Services, Industrial, Professional and Technical Union, served protective notice of industrial action that will become effective if no agreement is reached on pensions, job security and employee shareholding ahead of the airline's privatization ( ATWOnline, April 6). SIPTU pledged to continue working during the Easter travel period ending in two weeks. Union members at the carrier supported industrial action in a vote last week.
Alaska Airlines expects its unit costs excluding fuel and special charges to drop 5% in the quarter ended March 31 to 8.1 cents, primarily owing to a shift in the timing of maintenance effects, it said in an SEC filing. It also expects to incur a pre-tax impairment charge of $130-$140 million related to plans to retire 15 owned MD-80s ahead of previous plans in favor of 737NGs ( ATWOnline, March 14). Nonadjusted CASM is expected to rise 23% to 13.6 cents.
Qantas will convert four 737-300s to freighters for domestic cargo carrier Australian air Express at QF's facility in Avalon using conversion kits developed by Israel Aircraft Industries. These will be the first jet freighter conversions in Australia, according to Qantas. The aircraft currently are based in New Zealand and will be replaced with dash 400s. Work begins this month and is scheduled to be completed in January. EADS EFW in Dresden signed a contract with Air India covering conversion of two A310-300s into freighters.
Air Europa of Spain converted purchase rights for 16 737-800s into firm orders in a deal worth approximately $1 billion at list prices. Deliveries are scheduled between 2010 and 2014. The carrier will use the new aircraft on domestic routes, including to the Balearic and Canary islands, as well as on European and North African routes.
Avion Aircraft Trading ordered four 747-400BCFs for Avion Group's Air Atlanta Icelandic subsidiary. The first is scheduled for delivery in August 2007. They will replace older dash 200Fs operated by the ACMI provider. Last month it signed an eight-month wet-lease agreement with Saudi Arabian Airlines for two 747-300s to be delivered June 1.
Lufthansa Flight Training ordered a 737NG FFS X Non Zero Flight Time simulator from Mechtronix. It will be based in the LFT center at Berlin Schoenefeld and ready for use in summer 2007. Main customer will be Hapagfly. GE Commercial Aviation Training and Siberia Airlines agreed to cooperate in the development of a new training center in Moscow to be built near Domodedovo. It is expected to open in the second quarter of 2007, according to GECAT.
East Line Group, which manages Moscow Domodedovo, plans to invest $180 million in expansion, renovations and upgrades to its passenger terminal this year. Among new security measures, starting from July the airport is introducing the GK-1 Voice Recognition System, which will ask selected passengers a series of questions and determine whether they should be cleared or subjected to additional screening based on the voice characteristics of their answers. Domodedovo also is installing a new Hold Baggage Screening system, SafeDock docking system and building management system.
Panasonic Avionics Corp. is launching a global communications service to provide broadband voice and data services to aircraft with a new antenna system it claims "provides superior bandwidth in a smaller, lighter and lower drag configuration." The company said it will support AeroMobile's aircraft mobile phone service and also can be paired with a direct broadcast television antenna in the same radome system to offer Panasonic DBS TV with live programming.
EasyJet is on the warpath again over Public Service Obligation routes, this time in Italy. The London Luton-based LCC confirmed yesterday that it lodged a formal appeal with the regional administrative court in Rome against the Italian Transport Ministry and Civil Aviation Authority over the right to operate service on the Milan Malpensa-Olbia, Sardinia, route.
FL Group announced yesterday the sale of its 16.9% stake in easyJet for approximately €325 million ($395.9 million), earning Icelandair's parent company some €140 million in profit from its initial investment and representing an annual return of 70%, "far surpassing" the 20% target. JPMorgan was the sole bookrunner and JPMorganCazenove was joint lead manager. FL Group said the proceeds will be "channeled into new investments during 2006." It now has liquid assets of about €600 million.
The Irish government on Tuesday decided to sell off of most of Aer Lingus through an IPO nearly a decade after it first announced its intention to privatize the carrier, but said it will retain a stake of "at least 25.1%." "The transaction is taking place in order to give Aer Lingus both the commercial flexibility and the financial muscle to compete and succeed in the global marketplace," Transport Minister Martin Cullen said in a statement.
Southwest Airlines flew 5.83 billion RPMs in March, an 11.4% increase over the year-ago month. Capacity climbed 8.7% to 7.72 billion ASMs and load factor rose 1.8 points to 75.5%. Continental Airlines' consolidated RPMs grew 11.2% in March to 7.69 billion as capacity rose 10.1% over March 2005 to 9.47 billion ASMs. Load factor inched up 0.7 point to 81.2%. Domestic traffic increased 4.9% to 3.75 billion RPMs against a 3.3% hike in ASMs to 4.49 billion, lifting load factor 1.2 points to 83.4%.
Lufthansa Systems plans to increase its share of revenue from customers outside Lufthansa Group from 40% to 60% by 2010, LHS CEO Wolfgang Gohde said as he announced operating results of €63 million ($76.8 million) on turnover of €634.7 million for 2005. Business with clients outside Lufthansa Group grew 15% to €256.8 million.
Boeing booked orders for 86 new aircraft in the March 1-March 30 period, according to information on its website. These comprised 34 737s, including 30 from GE Commercial Aviation Services, and 52 787s. Qantas firmed 45 787 commitments announced last year, Kenya Airways took six and an unidentified customer took one. In March 2005, Boeing booked orders for 11 jets, all 737s.
US Senate Appropriations Committee approved an amendment Tuesday that would stall a Dept. of Transportation proposal intended to encourage foreign investment in US airlines through the fiscal year ending Sept. 30, according to press reports. This would give Congress more time to examine the issue. The DOT proposal allows foreign investors to wield more influence in airline management, although it does not raise the 25% ownership cap.
SITA announced that Sky Airline of Chile and Hong Kong Express Airways will implement its Horizon portfolio including Airfare Price and SITA Reservations. SITA also announced that Moscow Domodedovo will be the 33rd airport to implement its BagManager global baggage reconciliation system.
Organizers of the UK's biennial Farnborough International Air Show have high expectations for the 45th edition, set to take place July 17-23. "2006 will be a remarkable show," Farnborough International MD Trevor Sidebottom said in Washington Tuesday. "Everything is going well for us. The industry is at a high." Airbus has committed to bring and fly the A380, while Boeing will have a 777 in the static display. A total of 100 aircraft are expected to be on hand.
Swiss prosecutors filed charges last Friday against 19 Swissair managers and its former board in connection with the carrier's financial collapse 4.5 years ago. According to Reuters, among the accused former board members are former Credit Suisse boss Lukas Muehlemann and Thomas Schmidheiny, majority shareholder of cement maker Holcim. The board is accused of having attempted a dubious balance sheet restructuring in the face of massive debts.
Air Seychelles signed a letter of intent with ILFC to replace its two 767s with 787s for delivery from 2010. Air Canada is accelerating introduction of the 777-300ER with a lease of one aircraft from ILFC to be delivered in May 2007. AC will take delivery of eight 777-300ERs next year. The airline announced its order for up to 36 777s and 60 787s in last May, but delays caused by a dispute with pilots cost it some 777 delivery positions.
