ATW Daily News

Other News

Thursday November 19, 2009

IATA reported "an interruption" in the recovery in premium airline travel evidenced in July and August as international premium traffic declined 13.9% year-over-year in September, marking "a deterioration from the 12% August fall." In its latest Premium Travel Monitor, the organization stated, "The question is whether this setback is just the usual volatility--upturns are never smooth--or a change in the previously improving trend." It added that "most analyses" of recent dips in world trade and US consumer confidence, key indicators of passengers' willingness to purchase first- and business-class tickets, "suggest they are temporary setbacks in an improving economic recovery." In order for air travel numbers to continue improving, particularly premium traffic, "further improvement in the wider economy will have to materialize," IATA noted.

It estimated that premium revenues were down 27% year-over-year in September. Through the first three quarters of 2009, premium traffic was off 19% compared to the first nine months of 2008. Part of the explanation of the September retreat lies in regional differences, the organization said, stating that Asian economies have been "improving most rapidly" while economic recovery in Europe has been slower. As a result, a 26.9% drop in premium traffic within Europe overshadowed a 9.5% decline in Far East premium travel that, while not outstanding, represented a continued improvement. The large drop in Europe and a weak North Atlantic premium market, where traffic fell 10.7%, drove the overall backslide, IATA said.

AirTran Airways said it will outfit its entire 138-aircraft fleet with 2.5-by-9-in. seatback advertisements over the next two weeks. Ads will be "easily changeable" and the first advertising partner is Mother Nature Network. Atlanta-based OnBoard Media Group provides the FAA-approved, patent-pending system, AirTran said, adding that it will be the first US airline to use it.

Adria Airways posted an €800,000 ($1.2 million) profit in the third quarter, its first surplus in 2009, but expects a full year in the red despite another profit in the current quarter, the Slovenian Press Agency reported yesterday. Adria also confirmed in a statement that it will become a full member of Star Alliance in January. The group announced elimination of the regional member designation (Blue1 and Croatia Airlines are the others) in June (ATWOnline, June 9). Adria removed a 737-500 from service this month. Next year it will withdraw one A320 and add two A319s. By next summer it plans to operate one A320, two A319s, four CRJ900s, six CRJ200s and one CRJ100.

Aer Lingus yesterday threatened to "proceed to implement an alternative means" of delivering the required €97 million ($144.7 million) in cost savings if it cannot reach an agreement with unions by Nov. 30 (ATWOnline, Nov. 10). It said it accepted an invitation from Ireland's National Implementation Body to mediate negotiations. It said the alternative means could include "further reductions in capacity resulting from an uneconomic cost base, which in turn will lead to additional redundancies beyond those included in the plan. While the preference will be for such redundancies to be on a voluntary basis, compulsory redundancies cannot be ruled out."

Embraer, GE, Azul Linhas Aereas Brasileiras and Amyris, a US/Brazilian biotechnology company, signed an MOU to evaluate the technical and sustainability aspects of Amyris's renewable jet fuel developed from existing sugar cane feedstock. The group is targeting a demonstration flight by early 2012 aboard an Azul E-190. The fuel already has been tested by the US Air Force Research Laboratory, Southwest Research Institute, GE Aviation and others, the companies said. The Brazilian government contributes funding to Amyris's renewable jet fuel production. The country boasts the world's largest sugar cane crop. At this week's Dubai Airshow, Airbus called on governments to incentivize the industry to find local solutions to the search for viable biofuels (ATWOnline, Nov. 18).

China United Airlines, the Beijing Nanyuan-based subsidiary of Shanghai Airlines, plans to establish a second base in Foshan, Guangdong Province. It launched service to the southern city yesterday. Like Nanyuan, Foshan's airport largely is reserved for the military and has not handled commercial operations in seven years. SAL Chairman Zhou Chi said CUA plans to establish an airport management company in Foshan and will open more routes from the airport in the coming days. Owing to fierce competition, CUA's strategy is to serve secondary domestic markets. It was profitable in 2008 but has not released figures.

Norwegian yesterday revealed its new loyalty program, Norwegian Reward, under which members will receive cash points worth NOK1 each at a 10% rate on full flex tickets and 2% on low-fare tickets for use as full or partial payment on future fares or services. Points can be used at any time, although the airline said that law prohibits individual passengers from earning points on domestic flights. The program is independent from credit card promotions and other schemes.

Flydubai will launch twice-daily Dubai-Bahrain service on Dec. 13.

Arik Air will launch five-times-weekly Abuja-London Heathrow service on Nov. 27 aboard a 737-800.

Lufthansa Technik signed a Total Component Support contract with Air Berlin Group and will manage component supply for AB's 737s, A320 family aircraft, A330s and Q400s. Germany's second-largest carrier will receive on-site service at its Berlin and Dusseldorf hubs and will have access to LHT's warehouses in Hamburg and Frankfurt. A significant portion of AB's inventory already has been transferred to LHT.

LHT also announced a seven-year engine support contract with Yemen's Felix Airways. LHT's AERO Alzey subsidiary will perform MRO on engines powering Felix's CRJ200, 700 and soon-to-arrive 900 aircraft.

Dunlop Aircraft Tyres opened its new Chinese retread and distribution facility in Jinjiang. The facility, operating as Dunlop Taikoo (Jinjiang) Aircraft Tyres Co., is a joint venture with Hong Kong Aircraft Engineering (28%) and Taikoo (Xiamen) Aircraft Engineering (9%). It has full site and product approval from CAAC and repair station approval from EASA. In addition to retreading, it will support Asia/Pacific customers by distributing new tires manufactured at Dunlop's Birmingham site.

Goodrich Corp. will provide landing gear MRO on Asiana Airlines' nine 777-200ERs under a deal announced yesterday.

ARINC announced that its vMUSE passenger system qualified as a CUPPS Certified Platform. ARINC installed vMUSE technology as a CUPPS platform at Las Vegas McCarran in "a live operational environment" in cooperation with WestJet on Jan. 15. It now has checked in "more than 70,000 passengers" for WS and Continental Airlines and handled as many as 20 flights per day, ARINC said.

RDC Aviation said its fuel burn and emissions calculator "has been recognized by the UK Government as fulfil[ing] the approval requirements on specific emissions factors." According to the firm, "this is the first time that a standalone methodology has received such an approval in the UK, paving the way for RDC Aviation to offer its emissions calculator as an approved alternative to simple, generic calculators." RDC Aviation's flight emissions calculator is available at www.rdcaviation.com and on ATWOnline here.

Teledyne Controls was selected by Dubai Aerospace Enterprise to supply its Flight Data Interface Management Unit as a standard option for DAE Capital's fleet of 70 new A320s.