ATW Daily News

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Tuesday July 28, 2009

OpenSkies said it will suspend its daily Amsterdam-New York JFK service on Aug. 16, citing a significant drop in demand due to the current economic environment. The British Airways subsidiary launched the route late last year and said it developed a 16% market share since then, but "it was not enough to sustain a profitable service at this time," CEO Dale Moss conceded. "Moreover, with remaining route uncertainty over the near term, suspending service clearly was our most prudent decision to preserve our resources." OpenSkies will operate exclusively on the "signature Paris-New York franchise," with daily flights between Orly and JFK and Newark. BA CEO Willie Walsh acknowledged last month that the premium carrier was not profitable and said it would be shut down if it fails to deliver on its business plan (ATWOnline, June 11). BA reportedly has recruited investment bank Reynolds Partners to explore options for raising capital and is believed to be considering selling a majority stake in the subsidiary.

US House of Representatives today will unveil legislation that, if passed, will require more stringent screening and training for pilots flying commercial aircraft. The Airline Safety and Pilot Training Improvement Act of 2009 is being introduced by bipartisan leadership of the House Committee on Transportation and Infrastructure and the subcommittee on aviation including James Oberstar (D-Minn.), John Mica (R-Fla.), Jerry Costello (D-Ill.) and Thomas Petri (R-Wis.). The proposed law follows a series of Congressional hearings on the February crash of a Colgan Air Q400 that killed 50. A committee spokesperson told ATWOnline yesterday that in addition to improving training and screening for would-be commercial pilots, it would implement recommendations from the National Transportation Safety Board (ATWOnline, June 25).

by Sandra Arnoult

Cambodia Angkor Air, a joint venture between the Cambodian government (51%) and Vietnam Airlines (49%), was launched at a Phnom Penh ceremony yesterday. Officials said the startup is capitalized at $100 million and will begin flying today to Siem Reap and Ho Chi Minh City with two ATR 72s, according to press reports from the capital. Deputy Prime Minister Sok An said the carrier will operate an A321 in the "near future," and eventually will serve Sihanoukville and Bangkok. The country's Royal Air Cambodge shut down in 2001.

United Airlines said that around 2,100 flight attendants have accepted voluntary furloughs, eliminating the need for involuntary measures. By Aug. 31 UA will reduce its cabin staff by 2,100 positions, including the original 1,550 voluntary furloughs announced last fall (ATWOnline, Sept. 29, 2008).

Third prototype Sukhoi Superjet 100 flew for the first time Saturday at Komsomolsk. Aircraft will undergo cabin and avionics testing and will be the first fitted with passenger equipment and the certification-ready avionics suite. It then will be sent to Italy for its noise level, ILS, precision navigation and high-intensity radiated field tests. The first Superjet flight took place in May 2008 with the certification campaign commencing in October. The first two aircraft have accumulated more than 700 flight hr. over some 270 flights, said Sukhoi, which has sold 122 so far.

Qatar Airways announced a 40% combined increase in capacity to Paris Charles de Gaulle, Madrid, Athens and Stockholm Arlanda. Doha-CDG service will increase to twice-daily from 11-times-weekly beginning Oct. 25, DOH-MAD will rise to daily from four-times-weekly on Dec. 2, daily DOH-ATH will be twice-daily from March 2010 and DOH-ARN will receive an extra weekly frequency on Oct. 25.

Airports Council International-World said the number of arriving and departing passengers worldwide was 4.87 billion in 2008, up just 0.1% from 2007. A record 1,357 airports, which account for 98% of global traffic, were included in the report released yesterday. "We are a long way from the dynamic 6.8% growth witnessed in 2007," ACI-World DG Angela Gittens said. Domestic freight dropped more than 5.4% while international freight was reduced by 2.5%. Aircraft movements fell 2.1% to 77 million. The impact of crude oil prices and the global recession were cited as reasons for the decline.

SAS Group said June yield dropped an estimated 5.3% year-over-year. Group airlines flew 2.52 billion RPKs during the month, down 17%, against a 13.2% cut in capacity to 3.29 billion ASKs. Load factor dropped 3.1 points to 76.7%. SAS Scandinavian Airlines flew 2.32 billion RPKs, down 14.9%, against a 15% fall in ASKs to 3.01 billion. Load factor rose 0.1 point to 77.2%.

Aer Lingus flew 1.6 billion RPKs in June, a 0.7% decline year-over-year. Capacity dipped 0.5% to 1.97 billion ASKs and load factor slipped 0.2 points to 81.3%.

Norwegian's June yield fell 2% year-over-year to NOK0.64 (10.24 cents), while unit revenue was down 4% to NOK0.5. It flew 970 million RPKs, up 9%, against an 11% increase in capacity to 1.23 billion ASKs. Load factor fell 1 point to 79%.

Germanwings transported 662,103 passengers in June, a 9.4% drop year-over-year. Load factor rose 0.1 point to 81.3%.

SkyEurope Airlines transported 214,481 passengers in June, down 37.7% year-over-year, on a 35.6% cut in available seats. Load factor was down 2.5 points to 74.6%.

Embraer broke ground Sunday on a 15,000-sq.-m. facility in Evora that will be "dedicated to manufacturing complex airframe structures and components in composite materials." It is due to be completed at the end of 2011 and represents an investment of €48 million ($68.2 million), the manufacturer said.

Aircell Chairman Ron LeMay and President and CEO Jack Blumenstein have swapped titles, the inflight Internet and communications service company announced.