US regional Pinnacle files for Chapter 11

Pinnacle Airlines Corp., the Memphis-based parent of regionals Pinnacle Airlines, Colgan Air and Mesaba Aviation, filed for Chapter 11 bankruptcy protection in a New York court.

The company had warned late last year that it was in serious financial peril. President and CEO Sean Menke said in a statement issued Sunday, “We intend to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term. Quite simply, our current business model is not sustainable.”

Pinnacle said it has received “a commitment for secured super-priority debtor-in-possession financing from Delta Air Lines” (DL) totaling $74.3 million. It added that $44.3 million of this will be used to repay a secured promissory note held by DL while the remaining $30 million, combined with cash from ongoing operations, “will be available to help ensure that Pinnacle has sufficient liquidity to meet its operational and restructuring needs.”

During the Chapter 11 process, Pinnacle said it plans to restructure “key operating agreements with Delta Air Lines,” wind down United Airlines flying, end US Airways’ Essential Air Service (EAS) routes and gain concessions from workers. Menke said “restructuring is the only feasible course of action” given Pinnacle’s fiscal woes.

He emphasized that the regional operator is “committed to delivering safe, reliable travel” while reorganizing under Chapter 11.  The company said it will end Colgan Saab 340 flying for United Express by Aug. 1. Also, Colgan’s Q400 fleet will be retired by Nov. 30.

Pinnacle Airlines Corp. has 8,000 employees and operates 261 regional aircraft on more than 1,540 daily flights to 188 destinations in the US, Canada, Mexico and Belize.

Article Source : ATW Daily News

TAAG places firm order for three 777s

TAAG Angola Airlines has finalized an order for three Boeing 777-300ERs.

The order is valued at $895 million at list prices. TAAG also has options for three more 777s.

The aircraft will be used to grow its route network and route expansion, including direct routes to Rio de Janeiro and Sao Paulo, Brazil, Lisbon and Oporto, Portugal and other European destinations.

"As we prepare our airline to meet increased demand for travel to and from Angola, adding three more Boeing 777-300ERs to our current fleet of five 777s will keep us well positioned as one of Africa's leading airlines," TAAG chairman Antonio Luis Pimentel Araujo said.

TAAG operates three 777-200ERs and two 777-300ERs on routes from Luanda, Angola to Lisbon (10X-weekly), Beijing (weekly), Dubai (2X-weekly), Sao Paulo (4X-weekly) and Rio de Janeiro (3X-weekly).

TAAG will configure its 777-300ERs to carry 293 passengers in a three-class configuration.

Article Source : ATW Daily News

China Southern’s 2011 profit drops 11.8% on fuel prices, weak cargo growth

China Southern Airlines (CZ) reported a 2011 net income of CNY5.11 billion ($805.7 million), down 11.8% from CNY5.79 billion in 2010, due to high fuel prices and weak cargo growth.

Operating revenue increased 18.2% to CNY90.39 billion while expenses climbed 23.2% to CNY87.06 billion. Fuel expenses increased 39% to CNY32.67 billion.

RPKs grew 9.9% to CNY122.3 billion against a lift of 7.5% in ASKs to 151.06 billion. Passenger boardings increased 5.5% to 80.7 million with an average load factor of 81%, up 1.8 points over the year-ago period. Cargo traffic volume rose 1.6% to 1.135 million tonnes.

As of Dec. 31, 2011, the Guangzhou-based carrier operated 444 aircraft. It introduced 22 aircraft in 2011.

Looking ahead, CZ said it will take advantage of the long-term stable economic growth of China and the “domestic consumption upgrade” that will stimulate the continuous growth of market demands. The carrier warned that weak global economic growth and the slowdown of the domestic economic growth rate could weaken the operating environment. Rising fuel prices, growing competition rapidly growing domestic capacities remain challenges for the airline.

Industrial Securities said the carrier’s Airbus A380 operations may have a negative effect on the airline, hurting its financial performance due to the aircraft’s frequent malfunctions and the fact that it still hasn’t secured approval for use on international routes. CZ operates the A380 on its Beijing (PEK)-Guangzhou and PEK-Hong Kong routes.

The carrier received the first of five A380s in October 2011.

Article Source : ATW Daily News

Kingfisher’s Mallya to employees: ‘Stand by me’

Struggling Kingfisher Airlines (IT) said it has moved into a “holding plan” in which it will operate only about 120 flights daily (around a quarter of its full schedule) while it awaits a much-needed recapitalization.

Meanwhile, chairman Vijay Mallya assured employees over the weekend that salaries will begin to be paid again shortly following a suspension in worker pay that extends back to December.

Mallya said that Indian tax authorities have unfrozen IT’s bank accounts, allowing some payments to employees to begin this week. While there have been calls for the wealthy liquor baron to shut down the seven-year-old airline, which has never earned an annual profit, Mallya doubled down in a letter to workers quoted Monday by The Times of India.

“We have managed to keep the lights on in our days of darkness with adversity from every conceivable direction,” he told IT employees, according to the newspaper. “I am personally passionate about and committed to your airline. Please stand by me. Let’s not become fodder for the media and competition to feed off.”

In a statement issued last week, IT said, “Our keen intent is to get recapitalized and to bounce back as a major player in civil aviation.”

Article Source : ATW Daily News

UTair ATR-72 crashes in Siberia, killing 31

A UTair ATR-72 aircraft crashed Monday morning shortly after taking off from Tyumen in Siberia on its way to Surgut with 39 passengers and four crew members. The BBC has reported that 31 of the 43 people onboard were killed.

According to the Itar-Tass news agency, the crew of two pilots and two flight attendants were among those who died.

Flight 120 is reported to have crashed at around 5:30 a.m. local time. UTair said on its website that the pilot had been trying to make an emergency landing when the aircraft crashed. It broke up and a fire erupted, according to the Aviation Safety Network.

According to an ATR statement, the aircraft, registered under VP-BYZ, was MSN S332, initially delivered from the production line in October 1992. UTair had been operating this aircraft since August 2008. 

“The Russian Interstate Aviation Committee (IAC) will lead the investigation and will be the official source of information. According to international regulations, ATR will advise the French Bureau d'Enquêtes et Analyses (BEA), safety investigation authority representing the state of the aircraft manufacturer. At this time, the circumstances of the accident are still to be determined. ATR expresses its deepest sympathy to the families, friends and loved ones affected by the accident,” ATR said in a statement. 

The ATR 72-201 is a 68- to 74-seat twin turboprop engine aircraft.

Article Source : ATW Daily News

Malaysia, AirAsia X ink accord

Malaysia Airlines (MAS) and AirAsia X (D7) have signed a re-accommodation agreement following the cancellation of four D7 routes to Mumbai, New Delhi, London and Paris.

D7 will use excess capacity on MAS flights as it begins to tackle its extensive financial problems .“The related revenue from this arrangement is pure incremental revenue for the airline and would significantly contribute to the profitability of Malaysia Airlines,” MAS said in a statement, adding that it has already received MYR20million ($6.53 million) as prepayment.

Separately, MAS and Bangkok Airways (PG) began a codeshare agreement on selected domestic flights and international routes between Thailand and Malaysia, the Kuala Lumpur-based airline said.

The agreement, effective March 25, allows MAS to set its MH marketing flight code on PG’s services for Bangkok (BKK)-Koh Samui (USM) (31 weekly flights), BKK-Phuket (HKT) (14 weekly flights), BKK-Chiang Mai (14 weekly flights), USM-HKT (14 weekly flights) and the daily USM-Kuala Lumpur (KUL) service.

MAS is also using its new schedule to increase frequencies between KUL and Beijing, Manila, Phnom Penh, Los Angeles, Taipei, BKK, Medan and Jakarta, taking advantage of anticipated increasing demand on these routes.

These sectors will see a gradual increase in capacity from 19,540 seats to 24,820 seats by May 1 and will be operated using mainly Boeing 737-800 and 777-200 aircraft.

Article Source : ATW Daily News

Kenya signs up for GE engines on 787s

Kenya Airways (KQ) has selected the GE Aviation GEnx-1B engine to power its Boeing 787-8s.

KQ has nine firm 787-8s on order, plus four options for four additional aircraft. The firm engine order is valued at $380 million at list prices, GE said.

Airlines can select between the GEnx and the Roll-Royce Trent 1000 for the 787.

KQ’s 787s are scheduled to start delivery in the fourth quarter of 2013.

"The 787 Dreamliner is expected to achieve between 15%-17% fuel efficiency over the 767 with this particular engine type. This will enable the 787 to fly further with more passengers and cargo than the 767," KQ Group MD and CEO Titus Naikuni said.

Article Source : ATW Daily News

Business aviation conference planned for Abu Dhabi

A new corporate and business aviation conference has been announced to take place in Abu Dhabi later this year.

 The MECAS (Middle East Corporate Aviation Summit) event will be held at Al Bateen in Abu Dhabi, UAE on June 7, 2012.
The Summit is designed to explore the latest developments in the corporate aviation sector of the Middle East and look at new business opportunities and challenges in the region. 

Event organiser, Aeropodium, said delegates will enhance their knowledge of the regional market and get to network with leading experts as well as business aircraft operators.

The event is aimed at business aircraft operators, manufacturers, consultants, bankers, lawyers, airport executives, aviation leasing and financing companies, insurance companies and all professionals with an interest in the growth of corporate aviation and future opportunities in the Middle East. the organisers said.

Article Source : Arabian Aerospace

IAG receives EC green light to buy bmi

The European Commission (EC) has given the go-ahead for British Airways (BA) owner International Airlines Group (IAG) to acquire British Midland International (bmi), saying any competition concerns were addressed by conditions that were proposed as part of the deal.

The decision, announced Friday, requires IAG to give up 14 daily slot pairs at London Heathrow and to commit to carry connecting passengers to feed long-haul flights of competing airlines out of Heathrow.

“In light of these commitments, the Commission concluded that the transaction would not raise competition concerns,” Brussels said in a statement.

In its proposal to regulators, IAG offered to release 12 daily slot pairs at Heathrow, which could be used on the specific routes of concern, including the UK domestic routes, as well as on other European routes. In addition, it proposed leasing two Heathrow daily slot pairs to Transaero for use on flights to Moscow. IAG also said it would form special agreements with competing airlines that operate long-haul flights out of Heathrow to provide those airlines with connecting passengers.

"The commitments package includes an appropriate number of very sought-after slots at London Heathrow as well as far-reaching feeder arrangements as regards connecting passengers. We are therefore satisfied that the competitive dynamics will be maintained so as to ensure choice and quality of air services for passengers," Commission VP-Competition Joaquín Almunia said.

IAG CEO Willie Walsh told earlier this week that if approval was granted, the company would move “as fast as possible” to integrate bmi into BA and that bmi’s fleet would be repainted in BA colors.

IAG reached a deal worth €207 million ($271 million) in December 2011 to buy loss-making UK carrier bmi from Lufthansa Group.

Virgin Atlantic Airways, which also tried to buy bmi, had asked antitrust officials to block the deal, arguing it would harm competition.

Article Source : ATW Daily News

Qantas to operate Australia’s first biofuel flight in April

Qantas (QF) and SkyNRG will operate Australia’s first commercial biofuel flight April 13 between Sydney and Adelaide. The flight, using an Airbus A330, will operate using a 50:50 blend of biofuel derived from used cooking oil and conventional jet fuel, QF said in a statement.

The fuel, supplied by SkyNRG, has been fully certified for use in commercial aviation. Its life cycle carbon footprint is around 60% smaller than that of conventional jet fuel.

“With high fuel costs and carbon pricing affecting airlines around the world, the Qantas Group is taking the lead in advocating the development of a sustainable aviation fuel industry in Australia” QF said in a statement.

QF1121 will depart Sydney at 10:20 a.m. on April 13, arriving in Adelaide at 12:05 p.m. The return flight, QF1120, will depart Adelaide at 1:35 p.m., arriving in Sydney at 4 p.m.

QF Head of Environment John Valastro said the goal of the flights is to raise awareness about the potential for sustainable aviation fuel in Australia. “We know that sustainable aviation fuel can be used in commercial aviation just like conventional jet fuel,” he said, “but until it is produced at a commercial scale, at a competitive price, the industry will not be able to realize its true benefits. No single player can make this happen: it needs support from government, private sector investment, access to infrastructure and market demand.”

Valastro said that QF has been in discussions with government and industry partners about “producing a clear blueprint for the establishment of an Australian sustainable aviation fuel industry. This needs to focus not on speculative technologies but on biofuels that are operationally feasible now, production of which could commence within the next few years—given the right conditions. We hope to accelerate the process in the coming weeks as we build towards this Australian-first flight,” Valastro said.

Article Source : ATW Daily News

Ryanair EU Commission biased against LCCs

Ryanair (FR) has condemned the “European Commission’s bias against low fares airlines” and called for an end to its travel policy prohibiting to book flights on LCCs.

At a press conference in Brussels Thursday, FR released copies of emails received from the European Commission’s (EC) travel agency, Amex, stating it is not allowed to book low-cost flights or reimburse travel expenses to and from Brussels Charleroi airport, where FR has a large base.  Ryanair also released a letter from the EC’s director for administration and payment, which said it is “true that the terms of this contract do prevent Amex from booking tickets with ‘low-cost’ airlines.”

The Amex emails and the EC’s letters “unequivocally admit that the EU Commission “prevents” its travel agency from making bookings on low-fare airlines, which would save the hard-pressed EU taxpayer millions of euros each year,” FR CEO Michael O'Leary said. “This prohibition is a blatant subsidy to EU flag carriers and discriminates yet again against Europe’s low fares airlines which have now overtaken Europe’s flag carriers in terms of passenger popularity.”

Ryanair filed a formal complaint with the European Court of Auditors earlier this month, asking it to assess “the legality, regularity and financial soundness” of the travel policy.

Europe’s largest LCC described the EC’s travel policy as the latest example of its bias against low-fare airlines in general, and Ryanair in particular, and criticized the EC’s “rubber stamping” of mergers between flag carriers while blocking a merger between Ryanair and Aer Lingus in 2006.

The EC in past years cleared the merger between Air France and KLM, Lufthansa’s acquisition of Austrian Airlines, Swiss, Brussels Airlines and British Midlands International, and the merger of British Airways and Iberia.

Article Source : ATW Daily News

Lufthansa Technik Switzerland considers extensive restructuring

Lufthansa Technik Switzerland (LTSW) announced Wednesday it had found that “extensive restructuring measures” would likely be necessary across the company, citing a difficult market position exacerbated by the continuing exchange rate strength of the Swiss franc.

“The decline in demand for services, the ongoing fierce competition in the MRO industry and the problematic exchange rate development of the Swiss franc have resulted in insufficient utilization of the company´s available capacities, particularly in the areas of overhaul and maintenance of regional aircraft and engine overhauls for AVRO aircraft,” the company said in a statement. “A sustained revitalization of this segment is currently not foreseeable.”

LTSW has initiated a consultation procedure with its staff commission, trade unions and personnel associations. The company said it will seek “alternative courses of action” relating to job cuts in the administration and production area, which “seem…to be possible.”

"It is with great regret that we must consider drastic personnel reductions,” Lufthansa Technik Switzerland CEO Rainer Lindau said. “It is very important to us to find as many socially responsible solutions as possible for our employees."

The former Swiss International Air Lines technical division, Swiss Technik, was relaunched as Lufthansa Technik Switzerland in October 2008.

Article Source : ATW Daily News

AeroSvit takes delivery of first 737-800 NextGen

Ukrainian AeroSvit Airlines (VV) took delivery of a Boeing 737-800, its first NextGen aircraft.

VV supervisory board chairman Gregory Gurtovoy said this delivery, the first of 11 aircraft, “marks the beginning of our airline’s narrow body fleet renewal. Execution of this large scale program will help AeroSvit to increase our operating efficiency.”

 The carrier’s order includes seven 737-800s and four 737-900s. VV expects delivery of all the aircraft by 2016.

In 2011, VV took delivery of five 737 Classics and four Boeing 767s. It has 27 aircraft in its fleet. VV also operates Airbus A320s, A321s and Embraer E-145/195s.

VV, established in 1994, is based at Kyiv-Boryspil. The carrier serves 80 international routes to 34 countries, including five transcontinental destinations—New York, Toronto, Beijing, Delhi and Bangkok. It also provides passenger service to major regional centers in the Ukraine.

Article Source : ATW Daily News

Singapore relaunches Barcelona-Sao Paulo service

Singapore Airlines (SIA) has relaunched its seasonal 3X-weekly Boeing 777-300ER Singapore-Barcelona-Sao Paulo service, strengthening Singapore Changi Airport’s status as a global hub.

“With such high profile events as the 2014 FIFA World Cup and the 2016 Summer Olympic Games lined up in Brazil, we are confident that travel demand to Brazil will be strong. Similarly, we hope that Brazilians will take the opportunity to visit Singapore and use Changi Airport as a gateway to the Asia/Pacific region,” SIA EVP-Commercial Mak Swee Wah said.

Article Source : ATW Daily News

Bahrain Air becomes latest MENA member of IATA

The MENA region has a new IATA member. Bahrain Air, the second national carrier of Bahrain, has been accepted as a full member of the International Air Transport Association.

Bahrain Air CEO, Richard Nuttall, said the airline has fulfilled all the required operational and safety standards necessary to qualify for the IATA certificate and has successfully renewed its IATA Operational Safety Audit (IOSA).

He said: “This is a historical moment for a young airline like Bahrain Air. The path to qualify for IATA membership is highly demanding and requires dedication and discipline. But our team has worked very hard to see this day.

“Going forward, membership of IATA will allow us to build on our distribution and to work with other IATA carriers to provide better connectivity to, from and over Bahrain. At the same time we will have better access to all the services of IATA as we continue to take Bahrain Air to new levels in the future.”

With the well-publicised challenges facing Bahrain’s legacy carrier Gulf Air and its relationship with the government-owner, there has been speculation that Bahrain Air could be playing a greater part in the country’s airline activities either as a part owner or subsidised competitor to the national airline.

The move to be part of IATA adds to the credibility of the value airline.

 Dr Majdi Sabri, IATA's regional vice president for MENA said: “We are pleased to welcome Bahrain Air to the IATA family. It is a growing airline in possibly the most dynamic aviation region of the world. Being an IATA member not only confirms that Bahrain Air conforms to the highest safety standards; it also gives the airline the opportunity, through IATA's activities, to benefit from the latest industry best practices. We look forward to a long and fruitful relationship with the Bahrain Air," he said.

Article Source : Arabian Aerospace