NEWSAmerican CEO: Labor concessions needed ‘immediately’
American Airlines chairman, president and CEO Tom Horton marked the company’s six-month point of its Chapter 11 bankruptcy restructuring by telling employees AA has “made big strides in all aspects” but warning more must be done “immediately,” particularly regarding labor costs. In a letter sent Wednesday to the company’s 80,000-strong workforce, Horton reiterated the strengths he has touted since AA declared bankruptcy last November. “We have hubs in the most important markets, the best international alliance partners around the world, a host of new products and services, including plans for the most modern and growing fleet in the US industry,” he wrote. “Our revenue performance has been consistently outpacing the industry this year … The key message for all of us is that, after a decade of survival and shrinking, we are poised to grow our flying by 20% over the next five years. Nearly 70% of this new capacity will be flown by our American mainline jets, with the vast majority of that growth being international flying. Clearly, this will open up a lot of new opportunities for career progression among our people.”
LinkSaudia joins SkyTeam
Saudia (SV), formerly Saudi Arabian Airlines, joined SkyTeam Tuesday, becoming the alliance’s first member airline from the Middle East. “Joining SkyTeam is an integral part of Saudia’s long-term transformation strategy, which includes rebranding our airline, restructuring core operations and enhancing onboard products and airport services,” SV director general Khalid Al-Molhem said.
LinkAegean reports 1Q loss on fuel costs, Greek economic crisis 
Aegean Airlines (A3) has reported first-quarter net income of €104.6 million ($131 million), slightly worse than for the same period last year. First-quarter net loss after taxes deepened to €25 million from €16.3 million in the year-ago quarter. Comparable first-quarter 2011 results include proceeds of €5 million from the sale of assets.
LinkKenya Airways reveals huge expansion plans
Kenya Airways (KQ) has detailed plans for a major expansion of its operations, which callsfor launching services to North and South America, plus Australia, by 2017. Despite this expansion into new continents, the carrier said the main thrust of its efforts will be to broaden its route map to Asia.
LinkHouston Give Southwest International Approval
Southwest Airlines on Wednesday won approval from Houston's City Council to expand William Hobby Airport as it looks to add international flights to Mexico, the Caribbean and Central and South America.
LinkMajor Expansion Planned For Bangkok AirportAirports of Thailand (AOT) is to spend about USD$1.9 billion over the next five years to expand capacity at Bangkok's overcrowded Suvarnabhumi airport by a third, its president said on Wednesday.
LinkNATS gears up for all-time peak traffic at Olympics UK air navigation service provider NATS has pinpointed the four crunch periods it expects to encounter during the London Olympic Games as it tries to cope with an additional 4,000 movements between 24 July and 15 August. Despite this, NATS chief executive officer Richard Deakin remains confident it "will do an excellent job", handling the all-time traffic peaks in southeastern airspace, barring unexpected events. These, Deakins explained, could be as simple as a summer storm drifting across London. With NATS and the airports operating close to capacity, five additional holding patterns have been set up for contingencies, but it will not take much operational disruption to force unwelcome diversions.
LinkVandenberg AFB readies for X-37B landingUS Air Force Space Command is preparing to receive the Boeing X-37B when it descends from a year-long orbit as early as this weekend to land at Vandenberg AFB, California. "While the exact landing date and time will depend on technical and weather considerations, it is expected to occur during the early- to mid-June timeframe," says USAF. The landing will mark roughly 15 months in orbit for the vehicle, which was designed for 270-day flights.
LinkAMR will enter court-supervised mediation with 3 unionsAMR Corp., the parent company of American Airlines, this week will begin mediation supervised by a bankruptcy court with its unions. The Association of Professional Flight Attendants and the Allied Pilots Association support a merger with US Airways, while the stance of the Transport Workers Union toward a merger is less clear, sources say.
LinkAirbus may redesign A350-1000 wide-body jet, experts sayAirbus may have to revamp the design for its A350-1000 jet to compete with Boeing's 777, experts say. The European aircraft manufacturer had initially scheduled the A350-1000 for delivery in 2015, but pushed back the date by 18 months. It may delay the jet even more to address design concerns expressed by customers.
LinkChina’s Shun Feng Airlines to expand cargo fleetShun Feng Airlines, a Chinese privately run cargo operator, plans to expand its fleet from seven to more than 25 aircraft to meet growing demand for domestic express delivery services according to chairman Li Dongqi.
Most China’s domestic cargo airlines are experiencing operating losses due to sluggish market demand resulting from global economic uncertainty and China’s export slowdown.
LinkAir China leases Airbus, Boeing aircraft from ALCAir China has signed lease agreements with Air Lease Corp. (ALC) for nine new Boeing 737-800s and four new Airbus A321-200s. The aircraft are each under 12-year lease terms and will be delivered in 2013 and 2014, ALC said.
LinkLOT eyes launch of 787 Tokyo services next yearPolish flag carrier LOT said next year it plans to open Warsaw (WAW)-Tokyo Narita flights, “after receiving the 787 Dreamliner,” CEO Marcin Pirog told the Polish Press Agency PAP. He confirmed the first 787 is expected to be delivered in November and will gradually replace its 767s.
LinkBoeing holds to plan for increasing 737 productionBoeing will continue its plan to ramp up production of the 737 Next Generation aircraft. Boeing produces 35 of the single-aisle passenger jets per month, and will eventually increase production to 42 aircraft per month in 2014. "We've been a little bit more thoughtful and measured in our approach to increasing production rates," said Randy Tinseth, vice president for marketing for Boeing Commercial Airplanes.
LinkIndia threatens to ban EU airlines from its airspaceIndia has threatened to ban European airlines from its airspace in retaliation for the European Union's emissions-trading scheme. "Traveling is always a two-way traffic," said Ajit Singh, civil aviation minister for India. "If they can impose sanctions so can other countries."
LinkEuropean governments should cut carbon permits, survey findsEuropean carbon prices could triple in price over the next eight years if European governments restrict the supply of carbon permits, according to a PricewaterhouseCoopers survey. The GHG Market Sentiment Survey found 80% of respondents favored government cuts to carbon permits.
LinkEuropean technology company aims to reduce ticket fraudIATA Perseuss is a small technology company that aims to reduce airline-ticket fraud. Seventy airlines use the company to check for fraudulent information. The company began its services in Europe and is trying to raise its profile in North America.
LinkHouston council is set to vote today on Southwest plan for HobbyThe Houston City Council is scheduled to vote today on a proposal by Southwest Airlines to add international service to William P. Hobby Airport. Houston Mayor Annise Parker, who backs the plan, said the council would make a "historic" choice. United Airlines is opposed to the proposal.
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