CommercialEtihad, Alitalia Tie-Up Deal Enters Final PhaseEtihad Airways and Alitalia are in the final phase of due diligence for a possible investment by the Abu Dhabi carrier in the troubled Italian airline, the companies said on Sunday. Italian Prime Minister Enrico Letta, in Abu Dhabi on a visit to encourage investment in Italy, said he had high hopes for a deal and is "flexible" over the possibility of a change in Alitalia's management. Alitalia and Etihad have been in talks for weeks on a possible investment by the Gulf carrier, which sources close to the matter say could involve Etihad buying a 40 percent stake for EUR€300 million (USD$404.6 million).
LinkEastern Air Lines To Return To The Skies?A group of investors, betting the long-closed Eastern Air Lines' logo and other trademarks will jumpstart a new airline of the same name, this week filed applications with the US Department of Transportation, hoping to get off the ground in about a year. The patent on Eastern Air Lines' name and logo was one of the last assets remaining in the now-defunct carrier's estate, said president and chief executive Edward Wegel. The new Eastern will operate as a charter "for other airlines that have scheduling issues or aircraft issues and need additional craft or for tour operators who want to increase their lift into the Caribbean into the United States," Wegel said.
LinkDWS Urges Lufthansa To Appoint New CEO - ReportDeutsche Bank's fund management unit DWS is growing impatient with Lufthansa's delay in appointing a new chief executive, Frankfurter Allgemeine Zeitung said. Henning Gebhardt, a fund manager at DWS, told the paper Lufthansa was taking too long to appoint a successor to Christoph Franz who said in September he would leave to join Swiss pharmaceuticals company Roche.
LinkUS FAA Downgrades India's Aviation RatingThe US Federal Aviation Administration has downgraded India's aviation safety rating, citing a lack of safety oversight, meaning Indian carriers cannot increase flights to the United States and face extra checks for existing ones. The Indian government said it expected to resolve by March all concerns raised by the FAA, including appointing an adequate number of flight operation inspectors, and would approach the US regulator for a review of its decision. "The FAA has determined that India at this time is not in compliance with the international standards for aviation safety oversight," the US regulator told India in a communication, extracts of which were released by the Indian aviation ministry. Jet Airways and state-run Air India, the only two carriers that fly from India to the United States, would be impacted by the downgrade. Air India has 21 weekly flights between India and the United States, Jet has seven.
LinkDelta Urges US Senators To Keep Oil Export BanDelta Air Lines has urged US senators to resist calls to end a 40-year-old ban on most US crude oil exports. Delta's warning on the consequences of the move came as the Senate Energy Committee had its first hearing in 25 years on Thursday on whether the restrictions should be lifted. Graeme Burnett, senior vice president at Delta, urged senators to resist calls to lift the ban, saying it would force US crude out of a competitive domestic market to a less competitive global market.
LinkUnited to cut Cleveland hub by JuneUnited Airlines will cut its hub at Cleveland Hopkins International airport from April, ending nonstop service to 39 cities by the end of June. “The demand for hub-level connecting flying through Cleveland simply isn't there," says Jeff Smisek, chairman, president and chief executive of the Chicago-based Star Alliance carrier, in a letter to employees on 1 February. "Ultimately, we can't create demand, but we do have a responsibility to react to it. We must make the right business decisions, even when those decisions are painful, so we can continue to compete effectively and invest appropriately in our business." United has lost money in Cleveland during the past decade and new US Federal Aviation Administration (FAA) pilot rest and training regulations have accelerated the need to make the cuts, he adds.
LinkAirlines begin push for discounted end-of-line 777sAirlines are beginning to push for discounts on current generation Boeing 777s, as the airframer looks to bridge a gap in deliveries until the 777X enters service at the end of the decade. “I think it is common knowledge that aircraft tend to be sold to large and good customers with substantial discounts,” says Christoph Franz, chief executive of the Lufthansa Group, on a potential 777 discount during a media event in New York on 30 January. “So, the question of if there is additional discount to the existing discount, that is an interesting question. Hopefully, we would be able to achieve this discount.”
LinkCSeries performance meeting expectations: LufthansaBombardier’s CSeries has met performance expectations during its first six months of flight tests, says Lufthansa Group chief executive Christoph Franz. “So far, we do not see any major shortfalls from the promised performance data,” he says during a media event in New York on 30 January. Lufthansa-subsidiary Swiss has an order for 30 CS100s, which will be configured with 125 seats. Flight tests on the CS100 began on 16 September 2013 and Bombardier has said that the results were meeting expectations.
LinkFirst US Airways jet with American livery starts flying
On Thursday, the first legacy US Airways plane re-painted in American Airlines' livery began flying. "Today marks an important next step in our airlines' integration and is a tangible way for customers and employees to see the result of our progress first hand," American Airlines President Scott Kirby said. "The integration of our airlines, including painting the rest of the US Airways fleet, will take many months as we work to deliver value through this merger for our employees, our customers and our investors."
LinkBoeing CEO: Building bridges with machinists unionJim McNerney, the CEO of Boeing, said the aircraft manufacturer wants to move forward with building its relationship with its machinists union. "On 777, we are building a bridge with a franchise that is pretty singular in its strength," McNerney said. "We anticipate being able to build that bridge over the next several years."
LinkNTSB schedules Feb. hearing for UPS incidentThe National Transportation Safety Board has scheduled a one-day hearing next month into a UPS accident last summer. "We have been actively engaged in the NTSB's investigation since it began," said Malcolm Berkley, a UPS spokesman. "This hearing is another step in the process of determining the cause and how to avoid such an accident in the future."
LinkOpinion: Taxpayer funds spent to make U.S. airlines less competitiveDespite protest from U.S. carriers that the U.S. government is putting them at a competitive disadvantage, Customs and Border Protection recently launched a preclearance program in Abu Dhabi, United Arab Emirates. U.S. airlines have consistently argued that CBP should focus on fixing lengthy customs wait times at U.S gateways before investing resources and tax dollars overseas
LinkSan Diego Airport sets new record for international trafficSan Diego International Airport achieved a new record for serving international passengers in 2013. The airport handled 627,596 international passengers last year, a 21.5% increase from 2012. Over the past two years, the airport has debuted nonstop service to London and Tokyo.
LinkAir service returning to normal after severe winter weatherMost U.S. carriers have implemented flexible rebooking and waived change fees for passengers impacted due to the winter storm in parts of the Midwest and South. Atlanta's Hartsfield-Jackson International, one of the hardest-hit airports, began returning to normal operations.
LinkUnited aims to capture hearts with Valentine's Day contest Valentine’s Day is upon us. It’s the lovely day in which the marketing pressure pushes the stakes high into the sky, and travel brands of all kinds are rolling out Valentine-themed campaigns. United Airlines has jumped headfirst into the marketing fracas, offering a free BusinessFirst ticket anywhere that United flies for a winning couple that explains just how the airline has helped them be together. The promotion is dubbed “Love is in the Air” and submissions require both a photo and a 500 word entry explaining how United connected the entrant to their significant other.
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