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Tuesday November 17, 2009

Thai Airways reported a THB4.03 billion ($119.5 million) loss in the third quarter, reversed from a THB426.2 million profit in the year-ago period that was the product of a large foreign exchange gain. Revenue dropped 27.7% year-over-year to THB39.15 billion while expenses including finance costs and excluding foreign exchange losses fell 31.2% to THB40.27 billion owing largely to a 50.1% fall in average fuel price and capacity cuts. TG President Piyasvasti Amranand said that as a result of the downturn, the airline "adjusted its capacity to better reflect demand. . .and implemented aggressive marketing strategies." Yield excluding fuel surcharges fell 17.1% to THB2.34 and load factor rose 0.7% to 73.9%. Nine-month loss totaled THB1.57 billion as a result of the third-quarter deficit but still a significant improvement from the THB6.61 billion suffered in the first nine months of 2008.

Boeing announced the completion of the side-of-body fixes on the second and third 787s. Installation on the first was finished last Wednesday (ATWOnline, Nov. 13). The aircraft completed comprised the full-scale static test airframe and the second flight test aircraft. "Our focus now is on completing the static test later this month, which will validate the modification. Concurrently we are restoring the airplanes and completing the functional tests required to fly by the end of the year," 787 Program VP and GM Scott Fancher said.

Oneworld is looking to increase further its footprint in Latin America, particularly in Brazil, where Gol is among the potential membership candidates with which it is in discussions, ATWOnline learned last week as the alliance welcomed Mexicana in Mexico City. "Brazil is an important market for us, and Gol is obviously a significant player. They have made great strides in the past two years and, like in India and China, we keep channels open to everyone to review continually our options and their strategy," oneworld Managing Partner John McCulloch said.

He did not confirm the talks with Gol, but ATWOnline understands that discussions are "in an early stage" and that no announcement is imminent. Gol recently signed extensive bilaterals with oneworld members American Airlines and Iberia. LAN Airlines is oneworld's other Latin American member. Brazilian flag carrier TAM committed to Star Alliance last year (ATWOnline, Oct. 8, 2008), and SkyTeam Chairman Leo van Wijk confirmed in June that his alliance has talked with Gol as well (ATWOnline, May 26).

by Cathy Buyck

Rolls-Royce won an order for Trent 700s to power 20 A330s ordered by Air China and scheduled to begin delivery in 2011. The contract is worth $1.5 billion at list prices and includes TotalCare service support. Rolls also said its share of an order from Dubai Aerospace Enterprise for V2500s to power 20 A320s ordered by DAE's finance and leasing arm is worth $110 million. The aircraft, part of an order for 70 announced last year, are scheduled to deliver starting in 2011. Pratt & Whitney said its share is worth more than $112 million.

AVIC and GE signed a framework agreement Sunday to launch an avionics joint venture targeted at the fast-growing Chinese aviation market. Lorraine Bolsinger, president and CEO of GE's Aviation Systems business, told reporters that GE and AVIC each will hold 50% of the joint venture but she declined to reveal the size of GE's investment. AVIC VP Zhang Xinguo said his company has not yet decided how much to invest and when the JV will be established formally. "Our first priority is to make a bid for the C919 for the short term," Bolsinger noted. The C919, Commercial Aircraft Corp. of China's large commercial aircraft, is scheduled to enter service in 2016. COMAC plans to produce 2,355 C919s over the next 20 years and has started inviting bids for the aircraft's engines and airborne systems. It has said it prefers to do business with companies that establish cooperative relationships with Chinese aircraft manufacturing enterprises (ATWOnline, Sept. 25).

Both AVIC and GE said their JV is meant for more than the C919. "AVIC will join hands with GE to create an advanced avionics platform to serve the global market and provide competitive solutions for our clients," AVIC President Lin Zuomin said. Bolsinger added that the JV will aim to serve other next-generation narrowbodies and business jets. "I would say the market demand for the new generation of narrowbody aircraft is about 20,000," she said.

Senegal Airlines was launched officially at the Dubai Airshow Sunday, taking the place of defunct Air Senegal International, which suspended operations in April (ATWOnline, June 3). The new airline will lease aircraft initially and is scheduled to begin flying "in early 2010," according to a statement. Founding capital is valued at $34 million, with private investors holding 64%, the government 16%, employees 5% and the remainder available to the public. It intends to serve more than 20 destinations from Dakar including Paris, Milan and Brussels with a fleet comprising "new, modern" single- and twin-aisle aircraft. Modou Khaya was named CEO. The airline unveiled a white livery featuring stripes in the green, yellow and red of the Senegal flag on the rear fuselage and tail.

United Airlines announced a partnership with ExpressJet Airlines under which the latter will operate 22 ERJ-145s under the United Express brand beginning May 1. ExpressJet will replace contract flying performed by other United Express partners whose contracts expired and were not renewed, including Mesa Air Group. United said ExpressJet offered "the most competitive bid" for the flying. "We have worked with ExpressJet previously for short-term flying contracts and they provided our customers with exceptional service," United Express VP-Airport Operations Planning Cindy Szadokierski said.

Cathay Pacific Airways will offer an economy seat with extra legroom on long-haul flights for $100 per sector beginning Dec. 1 and on flights to regional and Chinese destination for $25 from Jan. 1. Premium loyalty program members will continue to have access to the seats for free. CX said there will be 2-4 seats available on "most flights." Offer is available on Dragonair service as well.

North American Airlines is planning to add an all-business-class, 100-seat 767-200 for charter operations. The carrier signed an LOI with MLW Air, which serves as the charter marketing agent for Pace Airlines. The cabin will feature 2-2-2 seating with lie-flat seats with 60-in. pitch.

Arik Air will launch thrice-weekly Lagos-New York JFK service on Nov. 29 aboard an A340-500.

Porter Airlines will offer twice-weekly Toronto City Centre-Myrtle Beach service Feb. 28-May 30.

TAM flew 2.39 billion domestic RPKs in October, up 22.3% from the year-ago month, against a 9.6% lift in capacity to 3.31 billion ASKs. Load factor rose 7.6 points to 72.3%. International traffic was up 15.7% to 1.64 billion RPKs while capacity increased 15.2% to 2.09 billion ASKs and load factor rose 0.3 point to 78.1%.

Copa Airlines flew 570.2 million RPMs in October, up 16.6% year-over-year. Capacity increased 7.3% to 696.3 million ASMs, lifting load factor 6.5 points to 81.9%.

CSA Czech Airlines named Marek Tybl, head pilot of its ATR fleet, as VP-flight operations and CSOB executive Philippe Moreels as VP-marketing and sales.