NEWSRyanair posts record FY profit; warns of gloomy economic outlook
Irish-based low-cost carrier Ryanair (FR) has announced a 25% leap in annual post-tax profits to a record €503 million ($641 million), compared to €401 million in the year-ago period. It warned that FY13’s figures are likely to decline, given the combination of rising fuel costs and Europe’s gloomy economic outlook.
LinkAir China launches business jet subsidiary Beijing Airlines Air China (CA) has launched Beijing Airlines after a one-year trial operation to enhance its position in the fast-growing domestic business aviation market. The new venture received its operating certificate from the Civil Aviation Administration of China (CAAC) in April 2011 and started trial operations the following July with a registered capital of CNY1 billion ($157.4 million).
LinkSpanish investor acquires bankrupt Mexicana, may relaunch in June
Mexicana Airlines (MX), which suspended operations under severe financial distress in August 2010, may relaunch operations June 9 after Spanish hotel and air transport group Med Atlantica acquired 95% of the bankrupt carrier’s shares. Federal judge Felipe Consuelo accepted and approved the deal, based on Med Atlantica’s ability to take over the airline from major shareholder Tenedora K business group, according to Mexican press. The company had 95% shares in holding company Nuevo Grupo Aeronáutico, which also owned subsidiaries Mexicana Click and Mexicana Link. The Mexican Airline Pilots Union (ASPA) owned the remaining 5%, which also have been purchased by the Spanish group.
LinkFAA reconsidering cargo pilots’ exemption from new fatigue regulationsFAA is reconsidering its exemption for cargo carriers from its pilot flight time, duty and rest regulations, conceding that it made “errors” in developing its justification for the exemption. FAA finalized strict new fatigue rules for pilots late last year, but cargo pilots were not included in the new regulations. The Independent Pilots Assn. (IPA), representing about 2,700 United Parcel Service (UPS) pilots, challenged the exemption in court. “The rule is wholly and utterly opaque when it comes to providing any factual support for the cost-benefit conclusions reached,” IPA said.
LinkQantas To Split Off International Business
Qantas Airways is splitting its loss-making international operations from its profitable domestic business and putting it under the charge of the head of its second-biggest money spinner.
LinkThai Air Sacks President, Raising Revamp Doubts
The board of Thai Airways sacked its president because of disagreements over strategy, a move that could derail the flag carrier's attempts to return to profit and which is being questioned by its union.
LinkSubdued Libyan Funeral For Lockerbie BomberThe Libyan convicted of the 1988 bombing of a PanAm flight over Lockerbie was buried on Monday in a quiet family ceremony, ignored by most Libyans keen to forget the international controversy that surrounded Abdel Basset al-Megrahi in life.
LinkHasty taxi for take-off led Air Berlin 737 to exit runway 
Excessive taxiing speed and disregard for standard procedures caused an Air Berlin Boeing 737-800 (D-ABKA) to slide off the runway during line-up in snowy conditions at Nuremberg airport in January 2010. German air accident investigation bureau BFU determined that the pilots attempted a rolling take-off even though the manufacturer's manual did not permit such manoeuvres in the prevailing subzero temperatures.
LinkEADS and ST Aero finalise A330 conversion agreementEADS and ST Aerospace have signed an agreement formalising their launch of an Airbus A330 passenger-to-freighter conversion program. Under the agreement, ST Aero will pay €110.5 million ($142 million) to subscribe to new shares in EADS EFW, the Dresden-based company that is also the main EADS passenger aircraft conversion facility.
LinkRussian air force to order Su-25 replacementRussia's air force will acquire a new ground attack aircraft similar in concept to the Sukhoi Su-25, but has dropped plans to field an armed version of the Yakovlev Yak-130 jet/combat trainer. "This new type of ground attack aircraft has been included in the state arms procurement program," says Col Gen Alexander Zelin, an aide to Russian defence minister Anatoly Serdyukov and until May the commander of its air force. "It will be put in service by 2020."
LinkJudge extends deadline to rule on American Airlines contractsA bankruptcy court judge says he will rule on American Airlines' ability to cancel union contracts by June 22, about two weeks later than the earlier deadline. U.S. Bankruptcy Court Judge Sean Lane said the complexity of the case required more time to study the testimony. American Airlines and its pilots union agreed to the date change.
LinkContract for Air Canada pilots will go to arbitrationAir Canada and its pilots union will head to arbitration after 10 days of contract negotiations failed to produce an agreement. The Air Canada Pilots Association represents 3,000 pilots of the carrier. The contract for pilots expired March 31.
LinkRussia has submitted emissions-trading data, EU saysThe European Union says Russian airlines have complied with a request to submit data for its emissions-trading scheme, despite earlier threats of noncompliance. "Moscow hosted an international conference of airlines opposed to the measures in February, and Russia was one of several countries that threatened to ban their airlines from paying," this feature says.
LinkOpinion: Doubts about TSA's PreCheck program remainClose ties between the PreCheck program instituted by the Transportation Security Administration and similar programs such as Nexus, Sentri and Global Entry mean that membership revocation on any system could leave a traveler permanently ineligible for all screening programs, Christopher Elliott writes. This poses a potentially severe problem for fliers, especially as such programs regularly withdraw memberships each year for reasons that the government won't completely share, Elliott writes.
LinkTour operators note effect of Europe airfares on summer businessWeak Europe bookings because of airplane-fuel surcharges and taxes are dampening an otherwise robust summer for the global travel industry, tour operators say. "The fare situation to Europe is difficult, plus the Summer Olympics are hurting us there. There's a month where you really can't get in and out of London," said Peter Worthing, director of sales at Trafalgar Tours.
LinkDelta Air Lines says fare glitch was due to search providerDelta Air Lines says a software glitch that recently showed frequent fliers different itineraries was due to an experiment with a new search provider. "To be clear, we never -- and couldn't have, based on the technology -- we never sold the exact same itinerary for a different price," said Bob Kupbens, Delta vice president of marketing and digital commerce. One search provider showed less-expensive fares with connections, while another search provider did not.
LinkUnited flew 71% of flights at Newark, N.J., airport in 2011United Airlines flew 71% of flights at Newark Liberty International Airport in Newark, N.J., in 2011, after its merger with Continental, this feature says. The carrier's dominance brings convenience but higher fares as well, some travelers say. "We are price-competitive," said Rahsaan Johnson, a United Airlines spokesman.
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