NewsBoeing approves one more year of C-17 production on anticipated demand Boeing has started building as many as 12 more C-17 airlifters in anticipation of signing new orders from international customers, possibly extending the Long Beach, California production line by more than a year. The company's second quarter earnings report filed with the US Securities and Exchange Commission notes that as of 30 June $620 million is obligated in inventory and potential termination liabilities for the next batch of aircraft. The note confirms that Boeing leadership decided in the second quarter to continue building C-17s beyond the aircraft already on contract for delivery through September of next year.
LinkAmerican debuts E-175 at O'Hare American Airlines debuted its new Embraer 175 at Chicago O'Hare today, as it preps for entry-into-service on 1 August. The 76-seat regional jet is part of the Fort Worth-based Oneworld alliance member's strategy to "right size" the aircraft in its fleet, says Charles Shubert, vice-president of network planning at American, at an open house in Chicago today. Something that it hopes to achieve with the E-175s as well as new Airbus A319s and A321s that it has on order.
LinkAir France May Cut Another 3,000 JobsAir France could cut up to 3,000 more jobs as part of parent group Air France-KLM's latest cost reduction plans, a union said, as Europe's weak economy thwarts the carrier's turnaround efforts. The company said on Friday that it would unveil new measures in the autumn, including voluntary departures, at Air France's medium-haul business, as well as industrial and commercial initiatives, although it did not give details. "The figure going around is between 2,500 and 3,000 job cuts," Didier Fauverte, general secretary of the CGT union at Air France, said on Tuesday, adding that this would take total job losses to 10,000 over four years.
LinkWestJet Sees Weak Demand After Capacity IncreaseWestJet Airlines said on Tuesday that higher capacity had hurt its second-quarter results, and it warned that a slide in revenue per seat would extend into the current period. Canada's number two airline said it flew emptier planes during the second quarter. It had said during the last quarter that it would probably earn less revenue from every seat, in part because of softer demand. While profit was slightly higher than expected, WestJet shares fell in Toronto on concerns about the outlook.
LinkRussian Deputy PM Attacks Aeroflot Man United DealRussia’s deputy prime minister criticized state-controlled airline Aeroflot's sponsorship of soccer club Manchester United, saying it appeared to show the firm favored international over domestic interests. Earlier in July, Aeroflot signed a five-year contract for an undisclosed sum with the English football champions, in a deal the airline's chief executive said would promote Aeroflot's brand worldwide. President Vladimir Putin has urged the airline to invest in Russian planes and on Tuesday Deputy Prime Minister Dmitry Rogozin suggested Aeroflot's Manchester United deal was struck at the expense of investment in domestic aircraft.
LinkAmerican Airlines boosts existing loan, source saysAmerican Airlines increased its existing debtor-in-possession loan by $500 million, a source said. AMR, the parent company of American Airlines, is planning to merge with US Airways.
LinkJetBlue is proving its business model works, CEO saysJetBlue Airways CEO Dave Barger commented on the success of carriers business model and the investments the airline has made in Fort Lauderdale, Fla., and San Juan, Puerto Rico. "We are still purchasing our aircraft, still acquiring our network," Barger said. "There is room for more than two models on the industry landscape and we are proving that."
LinkDelta CEO wants to move Tokyo base to Haneda airportRichard Anderson, the CEO of Delta Air Lines, urged the Japanese government to allow Delta to move its Tokyo base from Narita International Airport to Haneda Airport. "We look forward to the Japanese government opening up the skies, because we do not have open skies in Japan right now," he said.
LinkHouse passes amendment addressing landing-speed warningsThe House passed an amendment to require warnings about landing speeds on aircraft that was introduced by Rep. Jackie Speier, D-Calif. The amendment was adopted to the Transportation and Housing and Urban Development 2014 budget bill. The amendment would give the Federal Aviation Administration $500,000 to study the possibility of verbal warnings on aircraft when landing speeds are too slow.
LinkDOT proposes fine against Southwest The Department of Transportation (DOT) has issued a $200,000 fine against Southwest Airlines for violating its rules for advertising the price of flights. The department said Southwest did not offer enough seats at prices that were advertised during sales on two occasions early in 2013. The airline marketed non-stop fares for "$100 or less" on Feb. 14 and $66 one-way fares between Dallas and Branson, Mo., between March 1-21.
LinkTravelers turn to tablets, smartphones for airfare, survey saysMore travelers are using tablets and smartphones to purchase airfare, according to Travel Weekly's 2013 Consumer Trends Survey. The survey found 30% of travelers had used a tablet or smartphone to buy airline tickets, compared to 25% in the prior year. "They [travel suppliers] are streamlining the research and booking process for mobile compared to a desktop," said Henry Harteveldt, industry analyst for Hudson Crossing.
LinkWi-Fi is in demand, but only starting to take offWi-Fi is slowly starting to take off despite being in high demand. According to Routehappy, 38% of domestic planes are equipped with Wi-Fi. Airlines are looking to satellite technology to make coverage continuous over water.
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