NewsIAG Swings To Profit As Iberia Losses FallInternational Airlines Group said the revamp of its Spanish carrier Iberia was starting to bear fruit as the group swung to a quarterly profit. IAG, Europe's third-biggest airline by market value, has spent around EUR€700 million (USD$924.6 million) on restructuring Iberia, which reduced losses for the first time in almost three years in the second quarter. The Spanish airline became unprofitable in all markets, including long haul, following its merger with British Airways (BA) in 2011. Iberia has been hit by competition from low-cost rivals and high-speed trains, union disputes and a recession that has left a quarter of Spaniards out of work.
LinkIAG holds 44 A350 and 787 options for Iberia fleet roll-over IAG has placed options for a total of 44 Airbus A350s and Boeing 787s to renew the Iberia long-haul fleet, subject to its Spanish subsidiary's satisfactory restructuring. When the Iberia parent company announced in April plans to order 18 A350-900s for British Airways, IAG disclosed that it had also reached agreement with Airbus as well as Boeing to secure commercial terms and delivery slots for A350s and 787s. IAG is already a 787 customer, having ordered the twinjet for BA. Confirmation of the options will be subject to Iberia's successful restructuring and the business transitioning into profitable growth, said IAG.
LinkUS Issues Global Travel Alert, Cites Al Qaeda ThreatThe United States issued a worldwide travel alert on Friday warning Americans that al Qaeda may be planning attacks in August, particularly in the Middle East and North Africa. The State Department travel alert was based on the same intelligence that prompted it to close 21 US embassies and consulates on Sunday, August 4, chiefly those in the Muslim world, a US official told Reuters news agency on condition of anonymity. "The Department of State alerts US citizens to the continued potential for terrorist attacks, particularly in the Middle East and North Africa, and possibly occurring in or emanating from the Arabian Peninsula," its statement said.
LinkLufthansa Reports Q2 Revenue And Profits FallLufthansa reported a 27 percent fall in second-quarter operating profit and lower than expected revenue on Friday after staff costs grew and demand remained weak. Europe's biggest airline by sales confirmed its 2013 results guidance on Friday, saying sales would rise and operating profit would be higher than last year's EUR€524 million (USD$693.4 million). Lufthansa, in the middle of a deep revamp that includes 3,500 job cuts, said second-quarter operating profit was EUR€431 million. However, last year's reported figure of EUR€361 million was restated to EUR€594 million due to changes in international accounting rules on pension costs. Analysts had said comparisons would be difficult to draw because of the restatement and one-off items.
LinkGreek Aviation Workers To Strike Against LayoffsGreek civil aviation workers plan to disrupt flights for three days next week in protest at government plans to fire 300 airport staff, their union said on Friday. Greek unions have gone on strike repeatedly since early 2010, when the country was plunged into a debt crisis and sought a bailout from the European Union and International Monetary Fund to avert bankruptcy. The latest action, at the height of the tourist season, is against Athens' plans to shrink its spendthrift civil service, widely blamed for the crisis, by firing thousands of workers.
LinkDOJ Again Opposes USD$19.9 Mln Horton PaymentThe US Department of Justice is taking its third shot at nixing a proposed USD$19.9 million severance package for American Airlines chief executive Tom Horton, who will step down after American's bankrupt parent, AMR, merges with US Airways. In court papers filed on Friday in US Bankruptcy Court in Manhattan, the US Trustee Program, Justice's bankruptcy watchdog, said the severance package and other components of the plan violate bankruptcy laws. AMR has filed a bankruptcy exit plan founded on its proposed merger with smaller carrier US Airways. While the plan has garnered support from most of AMR's creditors, it must still earn approval from the airline's bankruptcy judge, Sean Lane.
LinkCustomer-bound new Citation X hits Mach 0.935 on first flight Cessna has flown the first production unit of the new Citation X twin-engined jet, reaching a top speed of Mach 0.935 during the 3h 6min flight, the manufacturer announced. The eight-passenger, midsize jet - featuring upgrades such as Garmin G5000 avionics, auto-throttles and a slightly longer cabin - is now scheduled for first delivery in early 2014. Gary Drummond, Cessna's senior production test pilot, called the first flight "flawless". After take-off from Cessna's base on the southwest side of Wichita, Kansas, the new Citation X climbed to 49,000ft (15,000m) to achieve the top speed and maintained an average cruise speed of M0.915 at 41,000ft.
LinkNorthrop projects 1,500-unit market for SABR Northrop Grumman, which has been selected by Lockheed Martin to upgrade the F-16 fleets of the US and Taiwanese air forces with its Scalable Agile Beam Radar (SABR), projects a potential global market for 1,500 such units. "We think it's a natural choice for upgrades around the world," says Joe Ensor, vice-president of Northrop's targeting systems division. "What we're projecting is a potential market of about 1,500 aircraft worldwide." Ensor says he expects those upgrades to be mostly for later-model Block 40 and Block 50 F-16s, because many governments are retiring their older examples of the type. However, the new active electronically scanned array radar will also fit into those older jets. Ensor says the SABR could also fit into new-build F-16s rolling off the line at Lockheed's Fort Worth, Texas plant. However, Northrop's older APG-68(V)9 mechanically-scanned array radar will remain in production, he adds.
LinkUnited CEO says carrier is investing in its customersAppearing on "CBS This Morning" with Peter Greenberg, United Airlines CEO Jeff Smisek discussed issues ranging from industry consolidation to United's commitment to enhancing the overall travel experience for its customers. "We're investing in our people, we're investing in technology for them to use to serve our customers better," said Smisek.
LinkAlaska Airlines tests "dual-boarding" for faster exits Alaska Airlines is testing "dual-boarding," which allows passengers to board and deplane from the back of the aircraft as well as the front. "What we've found is frequent fliers and business travelers really like it, because they can get on and off the aircraft quicker," said Alaska spokeswoman Bobbie Egan.
LinkNew codeshare deal for American, LAN Colombia American Airlines announced the beginning of a new codeshare agreement with LAN Colombia. The agreement will provide American Airlines customers connecting service in Colombia, as well as offer LAN passengers access to new destinations in the U.S. The two carriers will codeshare on flights between Colombia and the U.S., and allow American Airlines passengers access to four new destinations in Colombia: Barranquilla, Bucaramanga, Cartagena, and Pereira. In addition, LAN passengers will have access to 12 new destinations in the U.S. from Miami, including Chicago, Dallas/Fort Worth, Los Angeles, and New York
LinkAirbus runway-safety technology receives EASA certification The European Aviation Safety Agency certified Airbus technology to prevent runway overruns. Airbus said its Runway Overrun Prevention System "increases pilots’ situational awareness during landing, reduces exposure to runway excursion risk, and if necessary, provides active protection."
LinkBoeing is buying older 747s to sell 747-8s Boeing is repurchasing older models of its 747 from airlines to close deals on its 747-8. The aircraft manufacturer has purchased seven older 747s so far this year. "It unloads a problem [from airlines] to Boeing," said Douglas Kelly, senior vice president for asset valuation at aviation consultant Avitas. "It's just like trading in your car."
LinkHersman nominated for 3rd term as NTSB chairwoman President Barack Obama nominated Deborah Hersman for a third term as chairwoman of the National Transportation Safety Board. Hersman has served in the post since 2009, and must be confirmed by the Senate. "I am grateful for the faith that President Obama has placed in me and look forward to working with my fellow board members to make transportation -- across all modes -- safer for our citizens," Hersman said in a statement.
LinkFoxx discusses progress of pilot-training rules Transportation Secretary Anthony Foxx indicated he intends to move forward rules related to pilot fatigue, co-pilot training and enhanced training on aircraft stalls. "We'll try to move as many of them forward as we can," Foxx said.
LinkIATA plan would allow consumers to buy airfares in "real time" The International Air Transport Association has proposed an updated method to sell airfares called the New Distribution Capability. The method would offer "real-time" sales of airfares. "Consumers would benefit from it," says Perry Flint, an IATA spokesman.
LinkUnited expands fresh-food menu with "Bistro on Board" United Airlines is refreshing its menu items available on board with "Bistro on Board" offerings that include fresh food. The menu items include baguette sandwiches, wraps, noodle salads and artisan cheeses. The Bistro on Board menu will be available on flights lasting more than 3 1/2 hours in North America, as well as flights to and from Central America.
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