NEWS
IAG sells bmi regional for $12.9 million
International Airlines Group (IAG), parent company of British Airways (BA) and Iberia (IB), has sold British Midland International’s bmi regional to a group of Scottish nvestors for £8 million ($12.9 million). IAG, which finalized the purchase of bmi regional's parent company bmi last month, had said the regional operator did not figure in its plans.
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UPS to finance TNT buy mostly with cash
United Parcel Service (UPS) said Friday it has put in place financing to complete the acquisition of Amsterdam-based TNT Express. In a move likely to alter the express delivery landscape in Europe, UPS in March reached a deal to buy TNT for €5.16 billion ($6.8 billion). The Atlanta-based company said it will finance the purchase with €3.7 billion of available cash on its balance sheet and €1.46 billion in debt through existing credit facilities.
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SAS-SIA joint venture eyes growth, new route
Scandinavian Airlines (SAS) and Singapore Airlines (SIA) have finalized a joint venture (JV) agreement that is expected to stimulate growth in existing air services between the two regions. It could also potentially pave the way for a new route between Singapore (SIN) and Stockholm. SIA operates three flights a week between SIN and Copenhagen under a codeshare arrangement with SAS.
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IAG losses deepen on rising fuel costs
International Airlines Group (IAG), parent company of British Airways (BA) and Iberia (IB), reported a pre-tax loss of €263 million ($340.5 million), worsened from a €47 million loss in the year-ago period, despite revenue rising 7.8% to €3.9 billion. Passenger unit revenue for the period was up 8.5%, on top of capacity increases of 0.6%. Fuel costs for the quarter rose 24.9% year-over-year to €1.4 billion.
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American Airlines To Explore Merger Options
AMR, parent of American Airlines, bowed to pressure on Friday from its unsecured creditors, including its largest unions, and said it would explore merger options while it is still in bankruptcy.
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Crash A Blow To Russian Aerospace Revival
The hilltop crash of a Sukhoi passenger jet ferrying journalists and dignitaries on a mission to drum up foreign sales in Indonesia potentially casts a shadow over Kremlin efforts to restore Russia's once mighty aerospace industry.
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Emirates Urges Boeing To Move Fast On 777
Emirates has urged Boeing to make up its mind quickly on plans for an enhanced version of the wide-body 777, predicting it would be a success in the market.
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Boeing close to signing deals on BBJ version of 737 Max
Boeing expects to close deals imminently for business jet versions of the re-engined 737 Max aircraft now in development for entry into service with airlines in 2017. Boeing Business Jets president Steve Taylor explains that the company is in discussions with potential VIP customers for the 737 Max, which will add CFM Leap-1B turbofans, dual-feather winglets and aerodynamic improvements. "We're getting pretty close to having some deals on those," Taylor told reporters during a news conference. Boeing is still working to finalise the design requirements for payload and range on the 737 Max, which was launched last year in response to the early orders success of the Airbus A320neo.
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EasyJet still sees scope for lifestyle deals with pilots
EasyJet is still hopeful it may be able to strike lifestyle-benefit labour deals with some of its pilots in mainland Europe despite failing to agree such a long-term agreement with UK pilots. The low-cost carrier has been talking to UK pilots body BALPA about a four-year deal which would have included improved roster patterns for its pilots. "The negotiations have gone on for a long time and the reason for that is they are very complex," explained EasyJet chief executive Carolyn McCall during the airline's recent first half results conference call. "The proposal was to give pilots lifestyle benefits, so a much better roster pattern." The proposal involved switching to a five/four day split roster. "In order to do that and to get that right, we needed that to be funded," says McCall
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Other News
Garuda Indonesia (GA) and Taiwan’s China Airlines (CI) have signed a memorandum of understanding to broaden GA’s network and offer customers of both airlines a wider choice of destinations.
Bombardier’s first-quarter net profit fell 13.6% to $190 million from $220 million in the corresponding year-earlier period, partly as a consequence of lower commercial aircraft deliveries. Overall revenue declined 24.8% to $3.5 billion and its Aerospace unit saw revenue dip 31.8% to $1.5 billion. President and CEO Pierre Beaudoin cited costs associated with the Canadian manufacturer’s business aviation programs and lower commercial deliveries.
Cathay Pacific Airways (CX), which has warned its first-half results are “expected to be disappointing,” said it will cut costs and reduce capacity as operating costs rise due to high fuel prices and economic uncertainty. CX COO Ivan Chu said fuel costs, which account for 42% of the total operating expenses, and fuel hedging is not enough to offset rising fuel expenses.
Malaysia Airlines’ (MAS) first Airbus A380 returned to Toulouse Thursday following completion of interior furnishing and cabin system tests in Hamburg, Airbus announced. The aircraft is now stationed at the Airbus flight line for final system checks prior to the start of the customer acceptance process and delivery at the end of the month
The FAA is proposing a civil penalty of $210,000 against Seattle-based Alaska Airlines (AS) for allegedly failing to properly document and tag deactivated systems and equipment before making repairs. In a statement, the FAA alleged that on 10 occasions between June 19, 2010, and Jan.13, 2011, AS performed maintenance on six of its Boeing 737 airplanes but failed to document the alternative actions it took and install the appropriate danger tag. “These requirements are safety measures designed to reduce hazards to technicians during maintenance and to prevent potential damage to the aircraft and onboard systems,” FAA said.
LAN’s system-wide passenger traffic for April increased 13.9% while capacity rose 5.8%. Passenger load factor grew 5.9 percentage points to 83%. International traffic accounted for 68.6% of the total figures, with an increase of 12.9% against a capacity growth of 2.3%. Load factor in the international market grew 8.1 percentage points to 86%. Reduced capacity on European routes was compensated by increases in operations in routes to Mexico and the Caribbean, as well as regional routes in South America. Consolidated domestic traffic in the markets of Argentina, Chile, Colombia, Ecuador and Peru grew 16.1%, while capacity increased 13.5%, and load factor grew 1.7% percentage point to 77.1%.
British Airways (BA) will launch 3X-daily Aberdeen-London City service, operated by subsidiary BA CityFlyer Sept. 24 using Embraer E-170 and E-190 aircraft.
Delta Air Lines will launch daily Syracuse, NY-Minneapolis, MN Bombardier CRJ900 service Sept. 6.
Finnair launched 4X-weekly Helsinki-Chongqing Airbus A330/A340 service.
Etihad Airways in November will launch Abu Dhabi Airbus A320 service to Addis Ababa (5X-weekly, increasing to daily in 2013) and Ahmedabad (daily).
Cessna Aircraft Company, today introduced its newest and longest-range business jet, the Citation Longitude at the European Business Aviation Convention and Exhibition (EBACE). This launch follows on the heels of Cessna’s announcement, just over six months ago, of the new Citation M2 and Citation Latitude. Boasting a 4,000-nautical-mile range and a maximum speed of Mach .86, the Citation Longitude will make a non-stop flight from New York to Paris, London to Dubai or Beijing to Moscow. At a price of $25.999 million, Cessna believes that the Citation Longitude is the best value 4,000-nautical-mile super mid-size business jet available.
AVIATION QUOTE
My first shock came when I touched the rudder. The thing tried to bite its own tail. The next surprise I got was when I landed; she stalled at a hundred and ten miles an hour.
— Jimmy Haizlip, commenting on his only flight in the Gee Bee.
ON THIS DATE
---In 1908... The first passenger flies in an airplane. Wilbur Wright takes Charles W. Furnas of Dayton, Ohio on a 28 3/5 seconds flight that covers 600 meters at Kill Devil Hills, North Carolina.
---In 1909... Samuel Cody makes the first powered airplane flight of more than one mile in Britain. He flies the British Army Aeroplane No.1 from Laffans Planin to Danger Hill in Hampshire at average height of 30 ft.
---In 1915... The U.S. Navy contracts with the Connecticut Aircraft Company for its first airship.
---In 1949…Aerolineas Argentinas is founded.
---In 1961… AEC's Tory II-A-1 experimental powerplant for atmospheric ramjet vehicles underwent first power tests, a part of USAF Project Pluto.
---In 1992…Onur Air commences flight operations.
DAILY VIDEO
EDITOR’S CHOICE
HUMOR
Which Service has the Dumbest Officers?*
• Well, in the Coast Guard the officers stay nice and dry on land, while the enlisted people head out to sea in all sorts of weather.
• In the Army, the officers stand behind the troops and shout, "Attack!"
• In the Navy, the officers stand on the bridge and steer the ship into action.
• In the Marine Corps, the officers stand in front of the troops and shout, "Attack!"
• And in the Air Force? Well, the officers go off to battle in their pretty flight suits, flying their expesnive toys, while the enlisted people head for the club for a long one.
* Or, conversely, the smartest enlisted people.
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