IAG reports €555 million net profit for 2011

International Airlines Group (IAG) has reported a solid set of results in its first year as a combined entity of British Airways (BA) and Iberia (IB), with a net profit of €555 million ($745.5 million) and an operating profit of €407 million.

Net earnings rose 455% year-on-year on a pro forma basis and included 21 days of IB pre-merger results from €100 million in 2010. Operating profit increased 81% from €225 million in 2010, which was negatively affected by the volcano ash cloud and 22 days of strikes by BA cabin crew.

BA and IB recorded very different performances. The group told investors and journalists that BA posted an operating profit of £518 million ($611.3 million) for 2011 while IB recorded an operating loss of €98 million. BA revenue rose 17% year-on-year to £9.99 billion on a 9.8% hike in ASKs; IB revenue rose 1.4% to €4.87 billion for a 1.2% increase in ASKs.

Group revenue rose 10.4% to €16.3 billion, including an 11% hike in passenger revenue to €13.68 billion against a reported capacity rise of 7.1% to 213.19 billion ASKs. RPKs rose 7.2% to 168.66 billion; load factor inched up marginally 0.1% to 79.1%. RASK and yield were up 3.6% to 6.41 euro cents and €8.11, respectively.

IAG CEO Willie Walsh said the “performance of our airlines reflects the different markets in which they operate. The North Atlantic market remains strong, benefiting British Airways. Iberia’s challenge is its exposure to financial uncertainty in the Eurozone in a highly competitive marketplace with no-frills airlines, high-speed rail and growing competition from more efficient long-haul airlines.”

IB management is addressing its “high cost base and outdated workplace practices” among others through the launch of Iberia Express, Walsh said. The new IB subsidiary for short- and medium-haul flights will launch at the start of the IATA summer timetable initially with four Airbus 320s, despite the IB pilots’ ongoing protest , which costs the airline around €3 million per strike day, Walsh said. “We are fully committed to the project, and believe its benefits will far outweigh the costs.”

Walsh said the company remains confident its acquisition of British Midland International (bmi) from Lufthansa will go ahead as planned . The EU competition authorities were notified of the acquisition Feb. 10 and its first decision is expected March 16. The company is still in talks with LH about the disposal of bmi’s budget unit bmibaby before the deal closes.

IAG said it expects first-half operating profits to fall compared to the year-ago period because of higher fuel costs, weaker European markets and labor unrest at IB. It forecasts a fuel cost increase of more than €1 billion in the current financial year. Fuel costs for 2011 rose 29.7% to €5.06 billion while other operating costs were up just 1.1% to €10.79 billion.

Article Source : ATW Daily News

EuroLOT to acquire eight Q400NGs

LOT Polish Airlines subsidiary EuroLOT announced it will purchase eight Bombardier Q400NG aircraft this year. It will take delivery of three aircraft in April, one in May, three in July and the last one in August, CEO Mariusz Dabrowski announced Wednesday.

Polish Press Agency PAP reported the carrier also has the option to purchase another 12 aircraft of this type.

"Negotiations for the Q400NG purchase were long and difficult. Selecting the type of aircraft was consulted in conjunction with our largest customer and business partner, LOT Polish Airlines,” Dabrowski told PAP. He said the order will be finalized in the coming days.

Asked about the future of its current ATR fleet, he said that "it is said that next year the ATR [will] disappear from EuroLOT."

Dabrowski did not disclose the purchase price of the aircraft but said they will be leased.

Warsaw-based EuroLOT is 62% state-owned; LOT holds a 38% stake. It operates 14 ATR 42-500/ATR 72-202s and three Embraer E-175s.

Article Source : ATW Daily News

FAA proposes 1,500 flight hr. requirement for pilots

FAA proposed requiring US airline pilots to hold an Airline Transport Pilot (ATP) certificate, meaning first officers will need 1,500 flight hr. before ascending to a Part 121 cockpit. First officers currently need an instrument rating and commercial pilot certificate requiring just 250 hr.

FAA was mandated to raise commercial airline pilot training requirements in 2010 by Congress, which passed aviation safety legislation in response to the 2009 Colgan Air crash. Pilot training advocates have urged the agency to develop alternatives to meet the 1,500 hr. requirement, arguing both that hours are a poor way to judge a pilot's aptitude and that accumulating so many hours will be cost-prohibitive for many young pilots.

The proposed rule, on which the public now has 60 days to comment, does include two exceptions to the 1,500 hr. requirement. Former military pilots with 750 hr. of flight time "would be able to apply for an ATP certificate with restricted privileges," allowing them to become first officers, FAA said. In addition, graduates of a four-year baccalaureate aviation degree program will be able to get an ATP with 1,000 hr. of flight time.

"Our pilots need to have the right training and the right qualifications so they can be prepared to handle any situation they encounter in the cockpit," FAA acting administrator Michael Huerta said. "I believe this proposed rule will ensure our nation's pilots have the necessary skills and experience."

Article Source : ATW Daily News

KLM begins widebody fleet renewal with A330-300 delivery

KLM expects deliveries of its Boeing 787-9s to begin on schedule in October 2015, but is in no rush to make an engine selection.

The Dutch carrier has 23 787s on order plus options for 25 more aircraft through parent company Air France KLM Group. The aircraft will make up a significant portion of KLM’s fleet renewal plan, which will focus on replacing its aging Fokker F-100s with Embraer E-190s and replacing much of its widebody fleet with a mix of Airbus A330s and A350s, as well as Boeing 777s and 787s.

Speaking in Toulouse Wednesday, where KLM took delivery of the first of four new A330-300s it has on order, KLM VP fleet services Peter Slobbe told ATW the fleet renewal would be accompanied by new business-class interiors across its widebodies, beginning next year with its 747s. The carrier operates 22 747-400s, including 16 combis. An announcement on the new lie-flat seat supplier will be announced soon, Slobbe said.

The A330-300 delivered Wednesday is leased from Air Lease Corp. (ALC), the first all-new aircraft that KLM has taken from the lessor. The second -300 will be delivered in March and the third in April, with both aircraft leased from GECAS. A fourth -300 will be delivered in January 2013 and will be owned, although Slobbe said there remains the option to do a sale and leaseback deal. In addition, a 12th A330-200—also to be leased from ALC—will be delivered in April 2013.

KLM is also scheduled to receive three more 777-300ERs in June and July this year and May 2013, adding to its current fleet of five -300ERs and 15 777-200s. Along with the 787s, they will help replace the 747s and 10 MD-11s.

“We have the flexibility at the moment to be able to speed up or slow down the phasing out of the MD-11s and 747s,” Slobbe said.

A choice between GE or Rolls-Royce engines has yet to be made on the 787s, but Slobbe said the carrier will likely wait to see how each engine does in service with earlier 787 operators. All Nippon Airways (ANA) is the only current 787 operator and its aircraft are powered by Rolls Trent 1000 engines.

Final negotiations are continuing over a Group purchase of A350s, Slobbe said, but the intent is for Air France to take the lead on those deliveries.

Meanwhile, the last five F-100s will be phased out by the end of this year and five more E-190s will be delivered between March and May, bringing KLM’s Embraer fleet to 21 aircraft.

KLM also operates 25 Fokker F-70s and 46 Boeing 737 NextGen narrowbodies. Slobbe said there are no near-term plans to replace those fleets.

Article Source : ATW Daily News

American pilots ask court to order negotiations

The Allied Pilots Assn. (APA) representing 10,000 American Airlines (AA) pilots has asked a US bankruptcy court to require airline management to continue negotiations toward a new labor agreement.

The union expects AA to utilize the Chapter 11 process to reject existing work rules and impose new conditions. AA has said it needs to cut about 13,000 jobs through bankruptcy reorganization.

But APA said in a court filing that the provisions in US bankruptcy law that allow for rejecting work agreements shouldn't apply in this case because the accord between AA and its pilots expired in 2008. The union is seeking a judgment from the court requiring AA management to continue negotiating toward an accord with pilots under a federal mediation process.

"Our objective is to enhance the prospects of a consensual agreement," APA president Dave Bates said in a statement. "The Railway Labor Act provides specialized procedures for peaceful resolution of labor contracts in the airline industry … The Railway Labor Act represents the more promising path to a consensual agreement."

Article Source : ATW Daily News

Aeromexico posts record operating profit in 2011

Grupo Aeromexico (AM) announced its consolidated 2011 results showing a record operating profit of MXN3.4 billion ($265 million), up 27% compared to 2010, and the highest full-year numbers in the carrier’s history. 

Total revenue increased 28% to MXN35.8 billion, while net income decreased 13% to MXN 2.08 billion. Passenger load factor rose 0.5 points to 78.4%, the highest yearly mark so far. ASKs increased 20%, while RPKs grew 21%. Passenger boardings grew 20% to 14.3 million. International operations produced 44% of total passenger revenues. International passenger boardings grew 42%, while domestic boardings increased 14%. 

ASKs increased 33% in international markets and 6% on the domestic front. CASKs rose 6%, reflecting a 37% increase in fuel prices. Fuel costs increased from MXN3.9 billion to MXN11.2 billion.

AM took delivery of four Embraer E-190s, six Boeing 737s and one 767 in 2011. Havana, Guatemala City, Caracas, Brownsville, Fresno and Sacramento were added to the international route network, while Huatulco and Colima joined the domestic network. In 2011, AM flew to 42 domestic and 31 international destinations.

Article Source : ATW Daily News

Airbus: First neo; now ceo?

Airbus has begun labeling its current generation A320s the ceo—short for current engine option—as it markets the new, re-engined A320neo while still selling the original variant.

Speaking at a briefing in Toulouse Wednesday, Airbus EVP, Europe, Asia & Pacific Chris Buckley revealed that the term ceo was gaining traction within the company. Neo stands for new engine option.

Airbus has 1,289 firm orders for neos from 24 customers. It is building 38 A320 family aircraft a month and anticipates going up to 42 per month, a rate at which it believes it will stabilize.

Article Source : ATW Daily News

Airbus mulls upping A330-300 MTOW

Airbus is considering increasing the maximum takeoff weight (MTOW) of the A330-300 from 235 tonnes to 240 tonnes.

A decision could be made in about six months, Airbus EVP Europe, Asia & Pacific Chris Buckley said in a briefing in Toulouse Wednesday. Although a small increase, Buckley said there was market demand and Airbus was working “intensively” on the idea. “It would give the aircraft Amsterdam to US West Coast capability,” he said.

Article Source : ATW Daily News

Boeing delivers biggest 747 to secret VIP buyer

 Boeing Co handed over the first passenger version of its upgraded and extended 747 to a secret VIP customer, who sent the gleaming, all-white plane along to a modification center to transform it into the "jewel of the sky."

The delivery of the 747-8 Intercontinental - Boeing's largest and most recognizable commercial airplane - caps a development delay of more than a year.
Boeing, the world's second-largest plane-maker marked the milestone with an understated ceremony, keeping the media at arm's length to safeguard the identity of its customer, thought by industry insiders to be the state of Qatar.
"The 747 is the most iconic airplane in the world, and I know customers are going to love what we've done to enhance its performance," Jim Albaugh, president and chief executive of Boeing Commercial Airplanes, said in a statement.
"The Intercontinental is fast, efficient and quiet, offering real savings and a great flying experience," he said.
Boeing, which competes for orders with rival Airbus, has taken 36 orders - nine from non-airline customers - for the aircraft, which lists at $332.9 million. The airplane is more than 12 months behind its initial delivery schedule and some experts say the order book is puny.
The Intercontinental is an elongated, upgraded version of the classic 747, which first flew more than 40 years ago. The 747 was the world's largest airplane until 2005, when Airbus unveiled its A380.
Only one A380 has been ordered by a wealthy individual, Saudi billionaire Prince Alwaleed bin Talal.

"The 747-8 has been slow to take off, and the success of the aircraft is still questionable given so few orders," said Alex Hamilton, an aerospace analyst and managing director at EarlyBirdCapital.

Boeing had delayed the delivery to 2012 from the fourth quarter of 2011. The company blamed delays in flight testing and the time required to incorporate flight-test driven changes.

A delay of a year or more is not unusual for modern commercial plane launches. Both Airbus' massive A380 and Boeing's carbon-composite 787 suffered multi-year delays.

Boeing does not identify VIP customers, but past buyers of customized planes have been multimillionaires and heads of state.

The first airline set to receive the plane is Germany's Deutsche Lufthansa AG, which has ordered 20. Boeing has not set a delivery date for Lufthansa's first Intercontinental.

EXTENSIVE MODIFICATIONS

VIP customers for planes as large as the 747 often request extensive modifications such as bedrooms or bathrooms to accommodate the special needs of the primary passengers and their entourages. These modifications typically are done outside of Boeing, but the company must sign off on the changes.

Boeing Business Jets president Steve Taylor, who was set to fly the airplane from Paine Field near Seattle, said it will spend about six months at Boeing's Wichita facility - the plant that modified Air Force One - for basic modifications.

From there it goes to a facility in Hamburg where it will spend two years receiving customer-specific outfitting like bedrooms, dining rooms and galleys, he said.

Taylor said the unnamed customer wants the new Intercontinental to be the "jewel of the sky."

The Intercontinental incorporates some of the technology of the lightweight, carbon-composite 787 Dreamliner. It can seat 467 passengers, 51 more than the current version of the 747, but fewer than the competing 525-seat A380.

By some estimates, the new 747-8 is 8 to 10 tonnes overweight. Elizabeth Lund, 747 program manager, acknowledged the plane is heavier than originally planned. But she said a redesigned wing makes up for the weight in terms of performance.

Additional weight can reduce the distance a plane can fly or the amount of cargo it can carry.

Boeing said the plane would meet the original performance commitments it made in the sale catalog by 2014.

The freighter version of the 747-8 was first delivered in October. Orders for the freighter have been strained by an economic downturn that has dampened cargo markets.

Boeing delivered its first 787 Dreamliner last year after three years of delays. The 787 represents a bigger leap in technology than the 747-8.


Article Source : Flightglobal

SINGAPORE: Lockheed Martin announces F-16V development

Lockheed Martin has announced a new variant of the F-16 fighter, which will include an active electronically scanned array (AESA) radar, new mission computer and other cockpit improvements.

The F-16V configuration will be available as an upgrade for most F-16s as well as new production jets, said George Standridge, vice-president of business development at Lockheed Martin Aeronautics. The "V" in the aircraft's name stands for "Viper", the nickname given to the type by US Air Force pilots.

During a presentation at the Singapore Airshow, Standridge noted that most legacy F-16s can be upgraded to the F-16V standard, which is roughly equivalent to the F-16 Block 60.

Nearly 4,500 F-16s have been delivered since the 1970s and the aircraft is operated by 26 countries globally.

Standridge did not specify the radar type that would be used. In the Taiwan and South Korean F-16 upgrade competitions, Northrop Grumman has proposed its Scalable Agile Beam Radar (SABR) against the Raytheon Advanced Combat Radar (RACR).

The F-16 Block 60s operated by the United Arab Emirates are equipped with Northrop's APG-80 AESA radar.

The first company to win an AESA competition will have a very strong first-mover advantage in the F-16 radar upgrade market. The USAF is also very interested in the outcome of the South Korean and Taiwanese competitions, because it could have a bearing on the radar that is eventually integrated into its own F-16s.

Standridge also mentioned proposed new variants of the C-130J Hercules, the C-130XJ and C-130 Sea Hercules. The C-130XJ would be 10-15% less expensive than the existing C-130J, as previously reported by Flightglobal. Lockheed would achieve the savings by removing the C-130J's electronic warfare suite, defensive countermeasures and freight handling system.

The Sea Hercules would incorporate P-3C Orion capabilities into a C-130 airframe and be optimised for maritime patrol and anti-submarine warfare duties.

Article Source : Flightglobal

Emirates ups the ante to capture more Gulf traffic

Emirates airline has made a move to capture more of the Kuwait premium market as part of an expansion plan through the Gulf states.

The Dubai airline has announced an increase in flights to Kuwait and to neighbouring Qatar.

Qatar and Kuwait will each benefit from an additional daily frequency, bringing operations to Doha to six services per day and Kuwait up to five flights per day. With six flights per day, Doha has the highest number of daily frequencies in the Middle East region, followed by Kuwait.

Both cities play a key role in the region’s business growth, attracting international investors and facilitating global trade. With a total of 46,430 seats available for inbound and outbound booking each week, across the two markets, these additional daily flights are well timed to support the countries accelerated trade and tourism growth.

Ahmed Khoory, Emirates’ senior vice president commercial operations, Gulf, Middle East and Iran said

“These additional frequencies have been added to accommodate increasing demand from our customers. Both Doha and Kuwait are extremely viable markets for Emirates and there is a clear indication that they will continue to grow exponentially in the coming years,”

Industry  analyst Saj Ahmad described the increase as a ‘great strategic decision”.

He said: “Emirates decision to boost frequencies between Doha and Kuwait not only increases competition for Qatar Airways and Kuwait Airways, but it also pits it head to head with the likes of Jazeera Airways too.

“What's most interesting with the increased flights to Kuwait is the deployment of a tri-class 777-300ER. Clearly, Emirates is vying for high yield premium traffic and to capture it at the expense of an ailing Kuwait Airways.

“Boosting frequencies in the GCC is big business, not least for low cost airlines. But with Emirates upping the ante, Qatar Airways in particular will be forced into a similar move - it cannot afford for traffic to be siphoned off from its Doha hub.”

Khoory described the regional market as “one of the most active aviation markets in the world” and said   these additional daily frequencies, to two of the region’s key destinations, will provide even more “convenient connections to onward travel through our international hub of Dubai.”

The additional daily frequency to Doha will be operated by an Airbus A340-300 in a three class configuration.

Emirates has operated flights to Doha since 1994, the most recent increase in frequencies was in December 2009 when services went from four flights a day to five. Kuwait has been part of the Emirates network since 1989 and last received an increase in flights in July 2009.