NewsVueling CEO: Barcelona to become Europe’s prime short-haul hub Spanish low-cost carrier Vueling (VY) CEO Alex Cruz has vowed that Barcelona El Prat (BCN) will overtake Frankfurt Airport(FRA) as Europe’s leading airport for short-haul flights in 2014. Over the past two summers, VY has added 45 new routes from BCN, which it claims has positioned the airport as No. 2 in Europe by number of short-haul flights. Building on this growth, VY has announced plans to add another 28 new routes in 2013, taking it to more than 100 destinations from BCN.
LinkLufthansa expands into Latin America Lufthansa (LH) is increasing services in Latin America as the carrier looks to expand its market share in the region. On Oct. 28, LH will increase its 6X-weekly Airbus A340-600 Rio de Janeiro-Frankfurt (FRA) service and its 5X-weekly Bogota (BOG)-FRA service to daily. Speaking at a press conference last week in São Paulo (GRU), LH executive board member Carsten Spohr said that Latin America passenger revenues represent 5% of global passenger revenues for LH, while cargo revenues represent 10%-11% of network cargo revenues. The company expects these numbers to grow to 7% and 15%, respectively, in the next three to four years.
LinkUPS reports 56% 3Q profit decrease amid ‘slowing’ global trade United Parcel Service (UPS) posted third-quarter net income of $469 million, down 56.3% from a $1.07 billion net profit in the 2011 September quarter. It said much of the earnings decrease can be attributed to an after-tax, non-cash charge of $559 million associated with restructuring pension liabilities. But third-quarter revenue was down 0.7% year-over-year to $13.07 billion as the delivery giant contended with what chairman and CEO Scott Davis characterized as “an environment of slowing global trade.” CFO Kurt Kuehn told analysts that UPS customers continue to “migrate to less premium products” and “US exports continue to disappoint.”
LinkHNA Group buys 48% of France’s Aigle AzurChinese conglomerate HNA Group—parent of Hainan Airlines (HU), China Xinhua Airlines, Chang'an Airlines and Shanxi Airlines—has acquired a 48% stake in French airline Aigle Azur Transports Aeriens (ZI). The deal makes HNA Group the second largest shareholder of ZI, after Go Fast Transport, and the first Chinese aviation enterprise to invest in a European airline, according to an HNA statement. It is reported the deal is worth about $40 million.
LinkAirbus flies first sharklet-equipped A321 
Airbus has performed the first flight of a sharklet-equipped A321 as it begins a test campaign of the wing-tip modification on the largest member of its narrowbody family. The aircraft performed a ferry flight from Airbus's Hamburg facility to its Toulouse plant on 23 October. Flight testing on the modified A320 has been completed, with EASA certification of the CFM International CFM56-powered variant due in November. Approval of the modification on the International Aero Engines V2500-powered A320 will follow in December.
LinkUK details cruise missile use in Libya campaign The UK Ministry of Defence has disclosed new details about its use of precision-guided weapons during 2011's Libya campaign, including air- and submarine-launched cruise missiles. "During Operation Ellamy, UK forces employed a combined total of around 80 [MBDA] Storm Shadow and [Raytheon] Tomahawk land-attack missiles," armed forces minister Andrew Robathan said in response to a parliamentary question in the House of Commons on 22 October. He declined to provide a more detailed split between use of the types, as this could "prejudice the capability, effectiveness or security of the armed forces".
LinkF-35A launches AMRAAMThe US Air Force version of the F-35 Joint Strike Fighter has released an AIM-120 AMRAAM missile at Edwards AFB, California, for the first time.
LinkEU Court Confirms Flight Delays CompensationEurope's highest court rejected attempts by airlines including Lufthansa and British Airways to avoid paying compensation for delayed flights, making it harder for carriers to side-step payments in future.
LinkFrance Backs Airbus Over Row With GermanyFrance backed Airbus on Tuesday in a row with Germany over funding for its next airliner, in a sign of lingering tension following the collapse of a European aerospace industry merger.
LinkGermany Pushes Ahead On EADS Stake BuyThe German government is pressing ahead with its plan to buy a stake in Airbus parent EADS from Daimler, after this month's collapse of a merger plan with BAE, and has asked parliament to free up funds for the purchase.
LinkDid French PM Leak New Airbus Order?Airbus parent EADS, whose merger talks with BAE Systems leaked to the press in the summer, may find more of its business subject to accidental early disclosure - this time by the French prime minister.
LinkAmerican Airlines, pilots make progress with labor talksAmerican Airlines and the union representing its pilots, the Allied Pilots Association, have reported progress in their labor-contract negotiations. A message from the union told members Sunday that there have been "encouraging changes" in negotiations and that "each of the past several days has proven productive at the table."
LinkBoeing boosts plant production to meet demandBoeing is in a tight race with European competitor Airbus for new jet productivity, and the result is a boost in manufacturing capacity. The production of 787 Dreamliner jets is increasing by 20%. The greater manufacturing capacity is expected to overcome some of the early production delays as well as increase the company's stock value.
LinkAssembly of Airbus A350 is ready to beginCompetition with Boeing will heat up as European plane-maker Airbus was scheduled to open the assembly factory manufacturing its new A350. Sources say Airbus plans to speed up its manufacturing process of the A350-1000 to generate even more competition between the companies.
LinkUnused cargo building at JFK airport may house animal complexOfficials with the Port Authority of New York and New Jersey have signed an agreement with a group of private investors who hope to convert an unused cargo building at John F. Kennedy International Airport in New York city into a 108,000-square-foot complex equipped to handle animal cargo. The new facility is expected to have kennels for dogs and cats under quarantine, animal exercise space, a groomer and an animal hospital equipped to deal with exotic animals that need specialized procedures.
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