NewsAir France-KLM's Position Unclear On AlitaliaAlitalia shareholders will vote on Monday on a EUR€300 million (USD$407 million) capital increase to keep the near-bankrupt Italian airline flying, but the participation of Air France-KLM is far from certain. Alitalia was thrown a lifeline on Friday when its board members - including Air France-KLM - approved a government-led EUR€500 million bailout. The emergency plan includes the capital increase and loans worth EUR€200 million. Italian media reports over the weekend said Air France-KLM chief executive Alexandre de Juniac had told Alitalia's chairman that his group would not participate in a cash call.
LinkUS Air Traffic System Near 'Yellow' WarningThe US air traffic control system is close to hitting a "yellow" alert level as people who keep radar and other equipment running remain out on furloughs due to the government shutdown, the head of the controllers union said. Passengers would face lengthy delays if a radar unit or other equipment broke down at a major US airport because no one is on duty to fix it, Paul Rinaldi, president of the National Air Traffic Controllers Association (NATCA), told Reuters news agency. The system's safety has not deteriorated, Rinaldi said. But "we're getting to yellow" in facing a major disruption from equipment failure that could affect thousands of flights, particularly if there was bad weather. Yellow indicates caution and is not based on a risk scale used by aviation regulators.
LinkBoeing Restructures Commercial Planes DivisionBoeing said it will restructure its commercial aircraft strategy and marketing functions, just days after it lost a USD$9.5 billion order in Japan, previously its most secure market. The action, announced in a memo by Boeing commercial planes chief executive Ray Conner that was obtained by Reuters news agency, follows Japan Airlines decision on Monday to pick Airbus A350s to replace its Boeing 777s, rather than the next-generation Boeing 777X model. "You probably wouldn't have seen this happen if they had won JAL," said Ron Epstein, an analyst at Bank of America Merrill Lynch. "Boeing is looking at their sales strategy" following the loss in Japan.
LinkTAM Finished With Layoffs For Time BeingBrazilian airline TAM, the local unit of LATAM Airlines, has finished with layoffs this year and does not expect more in 2014, the country's civil aviation ministry said in a statement. TAM has cut 780 employees in the past two months, according to the ministry, reducing its workforce by 4 percent in an attempt to restore profits despite high fuel costs and a weaker local currency.
LinkThai AirAsia X Gets Air Operator LicenseMalaysia's AirAsia X, the long-haul arm of Asia's largest low-cost airline, has received an air operator's license for its first overseas foray, Thai AirAsia X. Thai AirAsia X, a joint venture AirAsia X established last month with the head of sister company Thai AirAsia and an advisor to the Thai prime minister was granted the license by the Department of Civil Aviation of Thailand.
LinkBusiness jet gamblers roll the dice againLook around the business jet industry today and on the surface the view is impressive. The marketplace abounds with a flashy array of major product upgrades and clean-sheet designs in various stages of development, while stage whispers hint at yet-unannounced aircraft launches still to come. Not since the absurdist heyday of the very light jet (VLJ) era has the industry seen so many new projects in the pipeline. The difference between now and the days before the VLJ market imploded is that the industry seems very aware of the actual state of the world outside its glossy brochures, which is not nearly as healthy as appearances may imply.
LinkMilitary NewsUSAF activates new F-22 squadron at Tyndall AFBThe US Air Force is activating the 95th Fighter Squadron at Tyndall AFB, Florida, on 11 October, kicking off a process that will eventually see 24 additional F-22 Raptors being assigned to the base. “The squadron is being reactivated tomorrow,” says Col Max Marosko, commander of the 325th Operations Group. “The jets won’t start showing up until January.” Once the first jets arrive in January, more will start arriving in phases through April 2014.The squadron will eventually have 24 aircraft, which includes 21 primary jets and three backup aircraft.
LinkFirst two Israeli F-35s to be delivered to Luke AFB in 2016 The first two Lockheed Martin F-35A Joint Strike Fighters destined for Israel will be delivered to Luke AFB, Arizona, in 2016, the company says. The two Israeli jets will be used for training alongside US Air Force units which will stand up at the base next year. According to Lockheed, all international pilot training for the F-35A will eventually transition to Luke AFB. The base will receive its first Australian F-35A for training in 2014. Israel will receive seven more F-35A aircraft in 2017 and another batch of 10 in 2018, which will be based in the Middle Eastern country for operational use. Israel has ordered a total of 19 F-35s thus far, but is considering the purchase of a further 20 aircraft—which would enable it to field two squadrons.
LinkCracks discovered on F-35B bulkheads Lockheed Martin and the F-35 Joint Program Office (JPO) say that two structural cracks have been found during durability trials on a short take-off/vertical landing (STOVL) variant ground test article. “During a recent inspection of the F-35B short takeoff/vertical landing ground article used for durability testing, two cracks were identified in one of the ground article’s four primary wing carry-through bulkheads,” Lockheed and the F-35 JPO say. “Because of the high hours accumulated on this test article, this discovery does not affect current F-35B flying operations, nor is it expected to impact the U.S. Marine Corps’ ability to meet its Initial Operating Capability (IOC) in 2015.”
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American Airlines enhances the customer experience at DFWAmerican Airlines introduced its vision for the airport of the future at its terminal in the Dallas/Fort Worth International earlier this year. The terminal includes free-standing kiosks, digital screens that display security wait times and power stations to charge electronic devices. American plans to roll out the new terminal at New York’s LaGuardia Airport by the end of the year.
LinkJetBlue Airways traffic rose 1.6% in Sept.JetBlue Airways reported a 1.6% increase in traffic for September on a year-over-year basis. The carrier also boosted capacity by 0.6% for the month. JetBlue's passenger revenue per available seat mile also rose by 9% from the same month last year.
LinkJetBlue to allow fliers to share loyalty milesJetBlue Airways said the carrier will allow passengers to share frequent-flier miles. The airline said it will allow up to seven family members or friends to share miles, as long as one person is 21 years old.
LinkBoeing reboots marketing strategy for commercial planesBoeing is revamping its commercial aircraft marketing strategy after it lost a $9.5 billion order from Japan Airlines to rival Airbus. "You probably wouldn't have seen this happen if they had won JAL," said Ron Epstein, an analyst at Bank of America Merrill Lynch.
LinkNorwegian Air CEO sees bright future for Boeing 787Bjorn Kjos, the CEO of Norwegian Air, said Boeing has retooled a part for the hydraulic pump on the carrier's 787 Dreamliner. "I think the Dreamliner is going to be a fantastic aircraft," said Kjos. He also said Boeing sent 15 employees from the U.S. to work on the aircraft in Stockholm.
LinkJapan Airlines grounds Boeing 787 after issues A Japan Airlines flight heading for Tokyo was forced to turn back two hours after departing Moscow due to broken toilets and cooking instruments, according to representatives of the airline. The Boeing 787 Dreamliner was carrying 141 passengers on Wednesday night when it experienced an electrical error that prevented six of the seven toilets inside the lavatories from flushing and limited heating implements from warming, the spokesperson told the BBC . But the problem was not connected to the aircraft's batteries, he said. ABC News requests for comment from the airline did not receive an immediate response.
LinkHouse bill to reopen FAA is unlikely to win Senate approvalThe House of Representatives passed a bill to fund the Federal Aviation Administration through fiscal 2014, which would allow the agency to recall furloughed employees. However, the Senate is not expected to approve the bill, experts say.
LinkAirlines aim to personalize the travel experienceAirlines are taking a page from other industries and offering subscriptions and other bundles for optional ancillary services. "If you're flying a single airline 10,000 to 20,000 miles a year, then the subscriptions make good sense," said Gary Leff, a founder of Milepoint.
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