Japan Airlines to remove 49 routes, 103 jets

TOKYO – Japan Airlines Corp, a carrier worth no more than a two-decade-old jumbo when it was bailed out by the government in January, said it will retire two-fifths of its aircraft, abandon one in eight overseas flights and end a quarter of its home routes in a bid to return to profit.

To compete against cheaper regional rivals, JAL also said it would look at creating a low-cost carrier. The state-backed turnaround body leading the restructuring said relisting the airline would be possible by 2013.

JAL’s turnaround pledge, submitted to the Tokyo District Court on Tuesday, includes a halt to 10 international flights following earlier closures aimed at stemming losses. It will also stop plying 39 domestic routes.

JAL forecast the latest contraction in money-losing services would help it to achieve an operating profit margin of 9.2 percent by March 2013.

“JAL’s flop has caused a lot of trouble to shareholders and financial institutions,” said Chairman and Chief Executive Kazuo Inamori at a news conference in Tokyo.

“Today is a new start for us,” said Inamori, the 77-year old founder of electronics maker Kyocera Corp, who was asked by the government to run JAL for three years after it filed for bankruptcy.

UNCERTAIN FUTURE

Under the turnaround plan, JAL will receive an injection of 350 billion yen ($4.14 billion) from the government and a 521 billion yen debt waiver from banks including Mitsubishi UFJ Financial Group and Mizuho Financial group. JAL said it had 959 billion yen of liabilities at the end of March.

Brought down by years of high costs, the former state carrier still faces an uncertain future as it takes on other carriers in a burgeoning and increasingly competitive regional air market.

JAL’s new start may also be without the architect of its revival. Speaking at the unveiling of its business plan, Inamori said he wanted to step down as CEO in February 2012, a year earlier than he had agreed to when he took the job in January.

Aviation analysts applauded Inamori’s fleet changes, which amount to the elimination of 103 aircraft.

JAL will offload all its Boeing 747-400 jumbos and every Airbus A300-600 jet it owns by March next year, and will stop operating all its McDonnell Douglas-built MD81 and MD90 aircraft by a later date. When complete, JAL will use four models rather than the seven it flies now.

“This is a massive shutdown in a very short amount of time, and generally only happens when airlines are shut down, not when they restructure,” said Shashank Nigam, head of Singapore-based airline industry consultant SimpliFlying Pte.

“We are likely to see a very much smaller and more regional Japan Airlines come out of this,” he said.

Source: business.maktoob.com

Mexicana Airlines (Grupo Mexicana) stop flying

The current administration received the company seven days ago under Business Reorganization (Concurso Mercantil) and technically bankrupt.

Financial deterioration and lack of agreements force Grupo Mexicana to stop flying. 

Transport Minister Juan Molinar said the airline’s operations would “definitively cease” by noon on Saturday local time (1700 GMT) 28 August.

The action will also apply to two budget carriers affiliated with Mexicana. Mexicana had already axed some of its routes and had stopped selling tickets. The airline flew 220 routes to 65 destinations including London, Madrid, Montreal, Chicago and cities in Central and South America.

SAS – Scandinavian Airlines is phasing out all of its MD-90 aircraft

SAS Group has entered into 5-year leases covering its eight MD-90-30 aircraft with an undisclosed US airline. The eight aircraft will be delivered in a phase out schedule starting Q3-2010 and ending Q2-2011. The MD-90 has, in terms of number of aircraft, been a niche aircraft in the SAS Group fleet and this transaction fits very well in to SAS initiative to simplify and standardize its fleet and thereby reduce the number of aircraft types used in its total fleet. The average age of the MD- 90′s is 13.5 years.

Source: SAS Group
Photo: Rob Vogelaar, ZAPP Group

Vietnam Airlines and Boeing Team to Enhance 777 Passenger Experience

Boeing (NYSE: BA) and Vietnam Airlines have teamed on a key initiative to upgrade the level of comfort for Vietnam Airlines’ passengers, unveiling the carrier’s latest cabin interior modernization on four of the airline’s 777-200ERs. Vietnam Airlines will improve its passenger service with an increased focus on the overall passenger experience and comfort while continuing to expand the network and add new destinations.

In support of Vietnam Airlines’ goals, Boeing Commercial Aviation Services developed a cabin layout that meets the discerning needs of the airline and its passengers, and also provided the engineering services and program integration as well as managing the worldwide group of suppliers that Vietnam Airlines selected for the program.

Boeing produced the U.S. Federal Aviation Administration-certified service bulletin and kit of parts to accommodate the relocation of business class seats; installation of new deluxe economy and economy class passenger seats; and revisions to the in-flight entertainment system, in-seat power and cabin cooling systems. Boeing also relocated and updated lavatories, galleys, ceilings, sidewalls, lighting, plumbing and the lower lobe attendant crew rest modules to enable the expanded service planned for these 777s.

The first aircraft was recently completed and Vietnam Airlines has proudly re-introduced the aircraft into service.

“We are very pleased to have selected Boeing to be our partner in developing and delivering this interior upgrade program,” Vietnam Airlines Executive Vice President of Technical Nguyen Van Hung said. “Our interior modernization program is a key part of our efforts to provide market leading services and passenger comfort, further affirming Vietnam Airlines’ position as a major carrier in the Southeast Asian region, especially after we joined the SkyTeam alliance.”

“As the original designer and builder of the 777, Boeing is proud to be selected by Vietnam Airlines for this important interior upgrade program. Boeing is uniquely positioned with experience and expertise to engineer, certify and manage modification programs for our customers,” said Dennis Floyd, vice president, Fleet Services for Boeing Commercial Airplanes. “This interior upgrade will support Vietnam Airlines’ aggressive plan to continue to compete among the world’s leading carriers.”

As a full-service integrator, Boeing can perform as much of an airline interior upgrade as required, including management of all aspects of the project through certification

Source: Boeing
Photo: Fred Rust, ZAPP Group

Embraer 190 of Henan Airlines crashes in Yichun, (Heilongjiang) 53 killed

Beijing, China (CNN) — Forty-three people died in a plane crash Tuesday night in northeast China, state-run media reported.

However, a number of people have been rescued from the wreckage at the Yichun airport, according to media reports. The China News Agency said 53 people had been rescued, quoting a Yichun city official.

There were 91 passengers, including five children, and five crew members on the flight, according to the state-run Xinhua news agency, which cited a source with the Civil Aviation Administration of China.

More than 500 rescuers were combing the site in chilly and foggy weather, according to media reports.

The Embraer 190 jet overshot the runway and caught fire when it was landing just after 10 p.m. Tuesday at the Yichun airport, state broadcaster CCTV said. Xinhua said firefighters were still battling the blaze 90 minutes later.

The Henan Airlines flight took off from Harbin, the capital of Heilongjiang province, on a short flight to Yichun City, 360 kilometers (225 miles) away near the Russian border, Xinhua said.

Heavy fog blanketed the Yichun airport at the time of the crash, according to Xinhua.

A Yichun vice-mayor told Xinhua that most of those taken to hospitals did not have life-threatening injuries.

A 20-member team of Civil Aviation Administration of China officials and technicians was headed for Yichun, the news agency said.

China’s last fatal airline accident occurred in November 2004, when a China Eastern commuter jet took off in frigid Inner Mongolia without de-icing and crashed shortly afterward into a nearby park, killing 55 people.

Source: CNN

Hundreds of passengers face being stranded

DUBAI – Hundreds of passengers face being stranded after Saudi budget carrier Sama Airlines said it will suspend operations amid record financial losses, local daily Arab News reported.

Sama said it will halt flights from Tuesday and urged affected passengers to contact the airline to make alternative travel arrangements, the newspaper reported.

Sama did not have enough money to keep flying after recording losses of 1 billion riyals ($266.1 million), Arab News said, adding that the airline fell short of the 300 million riyals need to continue operations.

The airline said it had been awaiting a significant aviation relief package and was in talks with an equity investor, but was unable to pursue these options due to time constraints, according to the newspaper.

“Sama had been awaiting a significant aviation relief package with respect to fuel subsidies, subsidies for PSO routes, a gradual lifting of domestic fare caps, and additional funds to support the past losses and growth of our business,” the airline was quoted as saying.

“In addition, we sought for, and found, more than one potential new equity investor willing to inject cash into the business.”

Sama said was hopeful of finding a solution to its financial problems that would allow it to resumption operations in the coming days, Arab News reported.

Sama, which started operations in 2007, serves around eight international and nine domestic destinations.

Source: business.maktoob.com

Tibet Airlines will launch its operations with the A319

Newly established airline chooses A319 for its proven high altitude performance Blagnac,  19 August 2010

Ethiopian Airlines purchases ten Pilot Training Aircraft and one Simulator

Diamond Aircraft Industries GmbH of Austria is pleased to announce that it has signed a purchase agreement with Ethiopian Airlines for ten pilot training aircraft (DA40NG) and one simulator. The aircraft will be equipped with the new Austro Engine AE300 power plant, which operates with JetA1 (kerosene) fuel. The DA40NG represent the newest generation aircraft, made of composite material and equipped with most state of the art avionic systems. After evaluating through the Ethiopian technicians at Diamonds premises in Austria, and test flights made in Addis Ababa, this aircraft proves to be the most efficient, fuel cost saving system suitable for pilot training in the hot and high conditions of East Africa.

Ethiopian Airlines CEO Mr. Girma Wake and Diamond Aircraft Industries’ CEO Mr. Christian Dries signed the agreement on July 29, 2010. The total cost of the aircraft and simulator are valued at 3.7 million Euros at list price.  The aircraft will be delivered in eight months time from the date of the agreement and the first four aircraft are scheduled to be delivered in November 2010.

According to Mr. Girma the decision to purchase the equipment was based on the airlines mission statement and core values to provide the highest training standards by investing on world class training equipments.  He added, “The recent order will enable us to maintain our on-going training to the highest international level for our cadet flight crews. “

Backed by industry reputation of over 60 years, Ethiopian Airlines Aviation Academy has become a powerful source of the African aviation training. The Academy is committed to developing and providing a competent workforce for Ethiopian Airlines in particular, and the aviation industry for the region in general.   The academy runs concurrent training and development programs covering pilots, cabin crew, technicians and conducts comprehensive courses in marketing and leadership management.

Source and photo: Diamond Aircraft Industries GmbH

New logo for Continental – United.

Porter Airlines Orders Four More Bombardier Q400 NextGen Airliners for its Fleet

Bombardier Aerospace announced today that Porter Airlines of Toronto has signed a firm order to acquire four Q400 NextGen turboprop airliners and has taken options on an additional six Q400 NextGen aircraft.

Based on the list price for the Q400 NextGen aircraft, Porter’s firm order is valued at approximately $120 million US, which could increase to $308 million US should all six options be converted to firm orders.

The four aircraft will increase Porter’s fleet of Q400 and Q400 NextGen aircraft to 24. Porter took delivery of its 20^th aircraft, and the 300^th Q400 aircraft to be delivered, in April 2010.

Porter began operations in October 2006 with flights to Ottawa and now serves 14 destinations in Canada and the U.S.

“Bombardier’s Q400 and Q400 NextGen aircraft’s quiet comfort, fuel-efficiency and lower environmental footprint help us to deliver on our ‘flying refined’ brand promise, and they continue to be the ideal aircraft for our operations based at the urban Billy Bishop Toronto City Airport,” said Robert Deluce, President and Chief Executive Officer, Porter Airlines.

“Porter Airlines is one of Canada’s airline success stories, and more importantly, Porter has succeeded in the face of challenging economic conditions, proving that with the right aircraft and a devotion to quality passenger care, adverse economic conditions can be overcome,” said Gary R. Scott, President, Bombardier Commercial Aircraft. ”The Q400 and Q400 NextGen airliners are also a global success story, and this additional order is a testament to their reliability and operational flexibility.”

Optimized for short-haul operations, the 70- to 80-seat Q400 NextGen aircraft is a large, fast, quiet and fuel-efficient turboprop. It provides an ideal balance of passenger comfort and operating economics with a reduced environmental footprint. Including Porter’s order, Bombardier has booked firm orders for a total of 389 Q400 and Q400 NextGen aircraft, and as of April 30, 2010, 300 had been delivered. The aircraft are in service with 30 operators worldwide.

Source and photo: Bombardier Aerospace

Demand Continues Recovery in June

Geneva – The International Air Transport Association (IATA) announced international scheduled traffic statistics for June which showed continued strong demand growth as the industry recovers from the impact of the global financial crisis. Compared to June 2009, international passenger demand was up 11.9% while international scheduled freight traffic showed a 26.5% improvement.

Capacity increased only slightly above demand improvements during the month, keeping load factors in line with historical highs at 79.8% for passenger traffic and 53.8% for freight.

“The industry continues to recover faster than expected, but with sharp regional differences. Europe is recovering at half the speed of Asia with passenger growth of 7.8% compared to the 15.5% growth in Asia-Pacific,” said Giovanni Bisignani, IATA’s Director General and CEO.

Outside of Europe, all regions reported double-digit growth in passenger traffic. “The question is how long can the industry maintain the double-digit momentum. Business confidence remains high and there is no indication that the recovery will stall any time soon. But, with government stimulus packages tailing off and restocking largely completed, we do expect some slowing over the months ahead,” said Bisignani.

International Passenger Demand

• After a dip in April due to the volcanic ash crisis centered in Europe, international passenger demand has returned to its upward growth trend. Passenger volumes are now 1-2% above the pre-recession peak in the first quarter of 2008.
• Middle Eastern carriers continue to post the fastest growth—up 18.0% compared to June 2009.  This is based on a strong regional economy and the ability to attract long-haul traffic through the region’s hubs.
• Asia-Pacific carriers recorded the most significant demand improvement at 15.5%. China continues to be the region’s growth engine.
• North American carriers posted growth of 10.8%, comparable to the 10.9% recorded for May 2010. Strong growth and the industry-leading load factor of 86.6% are contributing to strong second quarter financial results being announced by the region’s carriers.
• European carriers reported 7.8% growth, down slightly from the 8.3% recorded in May. While annualized growth of 6.2% is in line with the industry average, it is clear that the recovery in Europe is lagging behind the rest of the world.
• Latin American carriers showed a 14.7% increase in passenger traffic compared to June 2009. This reflects a more normal growth rate than the 23.6% recorded in May when results were heavily skewed by the Influenza A(H1N1) crisis which centered on the region in May last year.
• African carriers posted a 21.3% increase in traffic in June, positively impacted by activities surrounding the FIFA World Cup.

International Freight Demand

• International freight demand grew 26.5% in June 2010, down from the 34.0% recorded in May 2010. May was exceptionally high as some interrupted traffic from April’s ash crisis shifted to May. Volumes remain 6% above the pre-recession peak in early 2008.
• Freight demand continues to follow economic recovery and trade patterns with airlines in Asia-Pacific (+29.8%), Middle East (+39.6%), Latin America (+44.9%) and Africa (+54.0%) growing the fastest.
• Carriers in North America (+24.2%) occupy the middle ground.
• Europe (15.3%) is growing at half the rate of the fastest growing regions based on slower economic growth. This trend is particularly evident in Europe which is the only region still 5-6% below the pre-recession peak. The low value of the Euro will be a help to the region’s exporters and eventually drive up freight volumes.

“We remain cautiously optimistic. A clear indication of the growing confidence is the over 400 aircraft orders announced at the Farnborough Air Show. This is good news that will bring environmental benefits through improved fuel efficiency. But it will also make the challenge of matching capacity to demand much more difficult,” said Bisignani.

Alaska Airlines Complete Order for Two Next-Generation 737s

SEATTLE, July 22 /PRNewswire-FirstCall/ — Boeing (NYSE: BA) and Alaska Airlines today announced the carrier has exercised options for two additional Next-Generation 737-800s.

Valued at approximately $153 million at list prices, the Alaska order was posted to Boeing’s Orders and Deliveries website in June and attributed to an unidentified customer.

“Alaska Airlines continues to execute a successful and strategic vision based on its expansive fleet of efficient and reliable Next-Generation 737s,” said Marlin Dailey, vice president of Sales for Boeing Commercial Airplanes. “Alaska celebrated its transition to a single fleet in 2008 and with these additional orders, is truly reaping the benefits represented by its slogan, ‘Proudly all-Boeing.’

“Through its close partnership with Boeing, and working with the U.S. Federal Aviation Administration, Alaska Airlines is also expanding the use of advanced navigational and flight guidance procedures that leverage the superior performance capabilities of the Next-Generation 737. These procedures reduce flight times and congestion and result in lower fuel consumption and emissions into the environment,” Dailey said.  

“Our financial performance has been strong, and expanding our fleet with these two new 737-800s will not only help us fly more efficiently but also launch new service for our customers, provide positive returns for investors and ultimately, bring some of our furloughed employees back to work,” said Alaska Airlines’ President Brad Tilden.

Including today’s order, Alaska will take delivery of 13 Next-Generation 737s over the next several years. Alaska Airlines has 116 737s in its fleet, including 55 737-800s.

Operating a highly efficient and flexible all-Boeing 737 fleet, Alaska Airlines has established an enviable track record of operational and financial performance. The reliability and flexibility of its 737 fleet has enabled the airline to grow throughout the highly competitive North America market.

Source: Boeing

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