Continental reports $213 million loss, announces 1,700 job cuts Continental Airlines reported a second-quarter net loss of $213 million, widened from a $5 million deficit in the year-ago quarter, and announced it will cut 1,700 additional jobs "across the company" to mitigate the impact of "significant declines in high-yield traffic." Link
Fuel hedge gains push United to profit United Airlines parent UAL Corp. posted a second-quarter net profit of $28 million largely owing to $305 million in noncash mark-to-market fuel hedge gains, much improved over a $2.74 billion loss in the year-ago period when goodwill impairment charges dragged down the bottom line. Link
Southwest back in black but warns of further hardship Southwest Airlines returned to profit after three consecutive quarters in the red, earning $54 million in the second quarter ended June 30, down 83.2% from $321 million in the year-ago period, although it warned that "based on weak travel demand and fuel price volatility, we cannot predict a profitable third quarter 2009." Link
Ryanair continues war against passenger tax with Stansted reduction Ryanair will reduce winter schedule capacity at London Stansted by 40%, operating just 24 aircraft from the airport compared to the present 40. Link
Senate votes to stop F-22 production The US Senate today voted to end production of Lockheed Martin F-22s after 2011, overturning a challenge to the Obama Administration's defence budget priorities with a surprising 18-vote majority. Link
Air New Zealand opposes Virgin-Delta deal Air New Zealand (ANZ) has added its voice to the opposition to the proposed joint venture between Australia's Virgin Blue and US carrier Delta Air Lines. Link
First flight for Australia Super Hornet Boeing has conducted the first flight of an Australian F/A-18F Super Hornet in the USA. Link
Jet Airways to launch Kochi-Sharjah service Indian carrier Jet Airways will launch a daily service to Sharjah in the United Arab Emirates from Kochi, in the South Indian state of Kerala, from 1 September. Link
Low NOx combustors target of new NASA funding NASA intends to invest $14 million in a new 50/50 cost-share programme with industry to identify and test jet engine combustion concepts that could reduce nitrous oxide (NOx) emissions as much as 50% below today's CAEP/6 levels in the 2020 timeframe. Link
Other News
Lufthansa is considering cutting one flight attendant from each long-haul flight, according to an internal document cited by Neue Rhein Zeitung. The move, if enacted, would save the airline approximately €42 million ($59.6 million) and affect 750 fulltime jobs. It also is looking at ways to increase its ability to reduce its cabin staff on flights with lower load factors. A spokesperson would not confirm or deny the report but has said that LH is "calculating everything" in terms of cutting costs but that "nothing is decided now. Everything is in flux."
National Air Traffic Controllers Assn. expressed guarded optimism regarding USFAA's announcement Monday that is "moving away from a culture of blame and punishment" in the reporting of operational errors by controllers. "We're hopeful that it is a sign of good things to come but we are a little puzzled by what the message really is here," a NATCA spokesperson said yesterday. "On the one hand [FAA] says, 'We are moving away from a culture of blame and punishment.' But on the other it still makes it clear that necessary training will be conducted and disciplinary action taken as appropriate." NATCA said the message is conflicting: "Are you implementing a safety culture that is nonpunitive or aren't you?" The spokesperson added that the union is "hopeful" that local managers at ATC facilities will "take these words to heart and move toward a nonpunitive system."
East Star Airlines asked CAAC for permission to resume operations despite a Wuhan court's rejection of takeover offers from China National Aviation Fuel Holding Co. and Shanghai YuField. East Star was forced to suspend operations and enter bankruptcy owing to its heavy debt burden and the March collapse of a share sale deal with Air China parent CNAC.
East Star spokesperson Zhao Changbing disputed reports that the carrier owed CNY1.01 billion ($147.6 million). "In fact, our debt was about CNY752 million before we were suspended but we have total capital of CNY1.01 billion, so we still have a net asset of CNY257 million, which proves we don't have a financial problem at all. So we hope the regulator [will] approve us to resume operation," he said. He reiterated the airline's interest in welcoming any investors interested in a takeover even though five CNAF subsidiaries, seven airports and Shanghai YuField have made no progress.
TAM said it will issue 600 nonconvertible bonds worth a combined BRL600 million ($313 million) on July 24, scheduled to expire on July 24, 2013. It said the proceeds will be used to "reinforce" its working capital.
Delta Air Lines is adding a $5 charge for each of the first two pieces of luggage checked at an airport ticket counter, kiosk or curbside on domestic tickets purchased on/after July 16 for travel from Aug. 4. Bag fees paid online (DL charges $15 for the first bag and $25 for the second) will not be subject to the $5 fee.
Boeing joined the forward and aft fuselage sections of the first 747-8 freighter with the wing and center section in Everett. The horizontal stabilizer also was installed, with the tail cone and vertical fin expected to be added today. Nine customers have placed orders for 78 aircraft.
EASA issued an emergency airworthiness directive requiring ATR 42 and ATR 72 operators to inspect or replace within 10 days cockpit forward side windows that have accumulated more than 2,000 flight cycles. The AD, which enters effect today, follows a recent incident during which the left forward side glass window on an ATR 72-212 "blew out" during a ground pressure test, EASA stated.
Canada announced open skies agreements with South Korea and New Zealand.
Amadeus and SAS Group reached a five-year, full-content distribution agreement covering all inventory from Scandinavian Airlines, Wideroe, Blue1 and Estonian Air.
Travelport reached a direct-connect content agreement with Norwegian.
Snecma won a six-year engine service per hr. contract from WindJet covering the CFM56-5As powering the Italian airline's A319s and A320s.
AJ Walter Aviation signed a power-by-the-hr. contract with Belle Air covering the Albanian airline's A320 family aircraft. Belle plans to operate up to seven Airbus narrowbodies within three years.
Lufthansa Systems reached three-year deals with Bulgaria Air and Hemus Air to provide its Lido Airport/Obstacle data. It also renewed its contract with Avianca for the use of its ProfitLine/Price pricing solution for another two years.
AVIATION QUOTE
"Science, freedom, beauty, adventure... aviation offers it all." --Charles A. Lindbergh
AEROSPACE TERM
Geoidal Horizon
That circle of the celestial sphere formed by the intersection of the celestial sphere and a plane through a point on the geoid perpendicular to the zenith-nadir line.
And let's get one thing straight. There's a big difference between a pilot and an aviator. One is a technician; the other is an artist in love with flight. — E. B. Jeppesen
Boeing joined the forward and aft fuselage sections of the first 747-8 freighter with the wing and center section in Everett. The horizontal stabilizer also was installed, with the tail cone and vertical fin expected to be added today. Nine customers have placed orders for 78 aircraft.
I didn't realize that it had quite that many orders. Wonder if it will be similar to the 764?
Boeing sees 17% profit rise on strong defense sales Helped by lower costs and higher military sales, Boeing Co. said its profit rose to $998 million in the second quarter, a 17% surge. Sales in Boeing's defense unit were up 9%, while overall sales edged up just 1%. The company said its backlog of orders for commercial planes has fallen by $11 billion since May, and it promised an updated schedule for its much-delayed 787 in the third quarter. Link
India prepared to start tests for $10B jet contract Just two days after signing a defense pact with the U.S., India announced an August start to field tests for a $10.4 billion fighter jet contract. Both Boeing Co. and Lockheed Martin Corp. are competing for the contract, along with a European consortium and individual manufacturers in Russia, Sweden and France. Boeing said the so-called end-use monitoring agreement represented a "landmark" for military sales to India. Link
U.S. offers "defense umbrella" against Iranian nukes If Iran develops nuclear weapons, the U.S. could offer a "defense umbrella" to its allies in the Persian Gulf, Secretary of State Hillary Clinton said Wednesday in Thailand. "We want Iran to calculate what I think is a fair assessment that, if the United States extends a defense umbrella over the region, if we do even more to support the military capacity of those in the Gulf, it's unlikely that Iran will be any stronger or safer because they won't be able to intimidate and dominate as they apparently believe they can, once they have a nuclear weapon," she said. Link
Carriers stick with aircraft orders despite tough quarter Despite steep losses in the second quarter, two airlines said Tuesday they were continuing with the purchase of new aircraft. Continental Airlines CEO Larry Kellner said he was looking forward to taking delivery of 25 Boeing 787 Dreamliners because of the fuel savings the new aircraft will bring. United Airlines CFO Kathryn Mikells said the carrier remains committed to its "long-term fleet replacement strategy," including the replacement of its entire wide-body fleet. Link
Airline employment falls nearly 7% in May May employment numbers in the airline industry slipped 6.8% compared with 2007 levels, according to the Transportation Department. All seven network carriers cut payrolls in May, along with four discounters and two regionals. Link
Delta reports $257M loss, sees better margins ahead Delta Air Lines lost $257 million in the second quarter as pro-forma revenue fell 23% and the systemwide load factor slipped nearly 1 percentage point. Still, the company said it expects better operating margins in the third quarter, due in part to lower fuel prices. With a $5.4 billion cash cushion, CEO Richard Anderson said Delta is the "best-positioned network airline to weather the economic conditions." Link
Bolden: Current path won't get NASA to Mars NASA Administrator Charles Bolden says he believes putting Americans on Mars is the space agency's ultimate long-term goal, but "the challenge for us in the next few months is to figure out what the single most efficient, most cost-effective path is to get there." Bolden told employees on Tuesday that NASA is pursuing too many different initiatives, including finishing the International Space Station, retiring the shuttle and building new spacecraft to return to the moon. "We cannot continue to survive on the path that we're on right now," he said. Link
Continental security search sparks outrage in India Continental Airlines says a flap over security screening for a former Indian president shows the need for greater coordination between countries. India's Bureau of Civil Aviation Security complained that the airline had "wrongfully" frisked ex-President A.P.J. Abdul Kalam prior to an April 21 flight, but Continental says it was merely trying to adhere to U.S. security regulations. "We hope the respective government authorities resolve these differences at the earliest in order to avoid any recurrence of this situation in the future," Continental said in a statement, which also offered apologies for the incident. "Our intention was never to offend Dr. Kalam or the sentiments of the people of India," it said. Link
And let's get one thing straight. There's a big difference between a pilot and an aviator. One is a technician; the other is an artist in love with flight. — E. B. Jeppesen
1. Dassault HU-25A Guardian 2. Bell P-63 3. North American P-61 Black Widow 4. Lockheed F-94 Starfire 5. Convair C-131 Samaritan 6. Grumman TBF Avenger 7. Chance-Vought F4U Corsairs 8. Boeing AH-64 Apache 9. Lockheed C-141B StarLifter 10. Republic F-105 Thunder Chief
And let's get one thing straight. There's a big difference between a pilot and an aviator. One is a technician; the other is an artist in love with flight. — E. B. Jeppesen
