Commercial Aviation News

JetBlue launches premium brand called Mint

http://www.usatoday.com/story/travel/flights/2013/09/30/jetblue-corporate-fliers/2792863/

Delta Air Lines plans to equip its pilots with Microsoft Surface 2 tablets for use in the cockpit by the end of 2014. The tablets will initially be used as electronic flight bags with the Jeppesen FliteDeck Pro application, according to the Atlanta-based carrier. Pilots on its Boeing 757 and Boeing 767 fleets will initially be equipped with the rest of the fleet following by the end of next year. The tablets are expected to save Delta $13 million per year in fuel and associated costs, it says.

New livery coming for the Thomas Cook group?

Ryanair ordered by French Court to pay 10-million Euros.

http://www.france24.com/en/20131002-ryanair-pay-%E2%82%AC10-million-fines-french-labour-law-marignane

Danish lessor Nordic Aviation Capital has ordered up to 40 more ATR turboprops, of which 15 are firm.

China's largest domestically produced aircraft, the C919, may not enter service until early next decade, a delay that gives dominant rivals Boeing and Airbus time to launch their upgraded single-aisle planes first.

More than 90% of airline passengers say technology helps them when travelling but using a smartphone for travel services has yet to go main stream. This is despite the finding that three quarters of passengers carry a smartphone according to results of the 2013 SITA/Air Transport World Passenger IT Trends Survey released -today-.

Six years in a row! The 777 and 747 receive the highest marks from frequent business travelers.

ICAO Reaches Agreement On Emissions Deal

ICAO, the United Nations body in charge of civil aviation, has reached a consensus on a market-based system to curb carbon emissions from airlines by 2020, but rejected a proposal to let Europe apply its own plan to foreign carriers in the meantime. The final agreement, hammered out during two days of debates and talks on the sidelines at the International Civil Aviation Organisation triennial meeting in Montreal, was ratified on Friday. It averted a looming global trade dispute over emissions in the aviation sector, which the International Air Transport Association forecasts will make USD$743 billion in revenues in 2014, up from USD$708 billion this year. The resolution sets up steps the ICAO's member states need to take between now and the next assembly in 2016.

Until then, many delegates will look back fondly on their time in Quebec's largest city. Talks were brightened by an average of three cocktail parties per night hosted by different countries, some of whom were angling to win a coveted seat on ICAO's 36-member governing council. Diplomacy and good will were in full force during the first week, when representatives of countries at policy loggerheads clinked glasses of Singapore Slings, or chatted over plates of sushi, samosas and other national dishes.

Tensions mounted at the last minute when it appeared the long sought deal might not happen, but there was a breakthrough on Thursday when Europe made further concessions. "Aviation has indeed risen to the climate change challenge and has delivered a clear mandate to deliver a market-based measure by 2016 that is capable of being implemented in 2020," ICAO secretary general Raymond Benjamin said in remarks ending the two-week gathering.

He added that the climate resolution was a "major step forward" for the aviation sector and a "world first for any major industry." The committee agreed to "develop a global MBM (market-based mechanism) scheme for international aviation" in 2016, as decided by the ICAO's governing council in early September. But ICAO Assembly president Michel Wachenheim amended the text to reflect requests made by some developing countries, including India, to say the 2016 decision should take into account the "environmental and economic impacts" of different global MBM options, "including feasibility and practicability."

"After some very challenging discussions, including compromises by all parties, ICAO has made a strong commitment in favour of taking multilateral action to tackle climate change," said Todd Stern, the State Department's climate envoy and chief US negotiator. Tony Tyler, director general of IATA, the trade association for global airlines, addressed the final plenary session, praising the "historic decision of this assembly to develop a global MBM for international aviation." IATA plans to work with the ICAO's governing council over the next three years to design a scheme.

In the waning hours of the meeting, it was unclear if the committee would be able to reach a consensus on a global MBM. A group of mostly developing countries voted 97-39 to limit the European Union's ability to apply its emissions trading system (ETS) to international airlines until a global plan is launched. The EU insisted a deal should allow it to apply its ETS, while work continued on a global system, but backed down amid opposition from countries ranging from Argentina to Russia.

EU DILEMMA

Although one European official said the delegation was "bruised" by the deliberations, a representative of Lithuania, which holds the EU's rotating presidency, praised the outcome. "It will allow us to start the negotiations on the global MBM, which is the biggest achievement, not only for Europe, but for all ICAO members," said Arijandas Sliupas, Lithuania's deputy transport minister. Europe wanted the ICAO to help shore up the continent's ETS, which is central to its climate policy and requires all airlines using EU airports to pay for emissions. Analysts say the European Parliament could reject the Montreal package, but would have to act quickly to endorse any extension of the European Commission's decision to "stop the clock" on its law in time for an April 2014 deadline.

Some environmentalists felt let down by the outcome.

Friday's agreement lacked the "guts" that the environmental community has been looking for from the aviation industry, said Bill Hemmings, programme manager for aviation and shipping for Brussels-based environmental group Transport & Environment. "After all was said and done, much was said and not much was done," Hemmings added.

(Reuters)

Five years after Alitalia was rescued from bankruptcy, the options for the troubled Italian airline appear to be few: convince major shareholder Air France-KLM to support its new strategy or shut up shop. Since being taken private by a consortium of Italian investors in early 2009, Alitalia has accumulated net losses of more than EUR€840 million (USD$1.1 billion), debt of about EUR€1 billion and is fast running out of cash.

An ambitious plan to become a strong regional player failed in the face of aggressive competition from low-cost carriers Ryanair and easyJet and from high-speed trains on its once-lucrative Milan-Rome route. Alitalia's new chief executive, turnaround specialist Gabriele Del Torchio, has already outlined a new plan to focus on the more lucrative long-haul market, but he needs cash to buy the larger aircraft needed for inter-continental flights. The company says the new strategy will help it to break even in 2015 and return to profit in 2016. At a board meeting on Thursday, Del Torchio is expected to seek approval for a EUR€200 million capital increase, possibly underwritten by Air France-KLM, plus the same amount in fresh borrowing, sources close to the matter said. Italy's government, meanwhile, is banking on Air France-KLM to make a cash investment and increase the 25 percent stake it bought in 2009, possibly taking control of the company.

Analysts expect such commitment to come with conditions, with the Franco-Dutch group unlikely to want to take on Alitalia's debt and support all of Del Torchio's long-haul ambitions, which could clash with its own. Air France-KLM may want to follow the example of Lufthansa, which uses Vienna and Zurich to feed its long-haul flights out of its Frankfurt and Munich hubs, analysts said. Alitalia could also be used for point-to-point routes bypassing Air France-KLM's two main hubs, possibly linking Rome with the east coast of the United States and parts of Africa.
"I believe Air France-KLM is looking at more or less the same strategy: Charles de Gaulle and Amsterdam would remain the main hubs while part of their network would be operated by Alitalia on point-to-point routes," Oddo Securities analyst Yan Derocles said. "This is the only solution for Alitalia."

POLITICAL INTERESTS

Air France-KLM tried to take over Alitalia five years ago, but the deal was scuppered by Italy's Prime Minister of the time, Silvio Berlusconi, who asked Italian investors to rescue the company. The Rome-based airline was entrusted to a group of 21 Italian shareholders, including bank Intesa Sanpaolo, road operator Atlantia and holding group IMMSI. The mix of political, banking and industrial interests meant that most have long ceased to take an active interest in the airline and some are prepared to sell their stakes. A lock-up that requires investors to seek board approval before selling their shares expires on October 28.

The Italian government has stated that it is open to Air France-KLM raising its stake to 50 percent but has said that it would look for an alternative if the French group were to treat Alitalia as a mere appendix to its larger fleet and did not develop a hub around Rome's Fiumicino airport. But in the absence of other bidders, Italy's bargaining power may be limited. Etihad Airways, mentioned by Italian media as a possible partner, has distanced itself from the struggling carrier for now. Even so, a strong partner may still be needed even with the backing of Air France-KLM, which is itself squeezed by weak demand for air travel, high fuel costs and intense competition.

Analysts estimate that Alitalia requires an injection of about EUR€500 million to get through to next year, with more needed to sustain its ambitions on long-haul routes. A tug of war between political and economic interests is likely to emerge, with Air France-KLM unlikely to want to give up on Alitalia, which has cut costs aggressively, added 30 new routes and offers access to Europe's fourth-largest travel market. "Air France-KLM has no interest in merely watching a failure of Alitalia, as this would only strengthen its competitors," research firm CM-CIC Securities said.

However, the possibility of an Alitalia under French-Dutch control is likely to spark protests from politicians and unions, already in uproar over Spain's Telefonica increasing its stake in Telecom Italia, saying that Italy has become a "supermarket" for cash-rich foreigners. That raises the prospect of Italian state-owned holding company CDP possibly buying control of Alitalia. "This would be like a hidden nationalisation and that's the worst choice," said Andrea Giuricin, a transport analyst at Milan's Bicocca University. "It would mean going back five years and nationalising the company's losses."

(Reuters)

Star Alliance carrier Air China has moved to new grounds launching services to Houston. The bold move from the Chinese carrier is actually paying-off. Air China commenced by operating four flights per week between its Beijing hub and Houston on 11 July using Boeing 777-300ER aircraft and the route was immediately profitable, says Air China’s vice president and general manager for North America, Zhihang Chi.

Qantas Airways is going through its options for replacing its core fleet of Boeing aircraft. The airline now has 60 737-800s in service and eight more on order, but it says that it is assessing the 737 Max and Airbus A320/A321neo as possible replacements over the long term.

Jet Blue Airways is beefing up its winter equipment out of JFK to BGI with the expected introduction of their brand new A321. The A321 service between the two destinations is expected to start December 19.

Russian airline Aeroflot is set to launch a budget carrier, Dobrolet, in 2014. The goal is to lower the cost of air travel within the largest country in the world. Fares will be reduced up to 40 per cent compared to Aeroflot's current prices and Dobrolet's operations will comprise solely domestic routes at first.

Russia’s UTair-Express has launched ATR 72-500 flights on routes from Moscow to Voronezh and Kirov. The aircraft were transferred from parent carrier UTair Aviation as part of its fleet renewal program.

Nearly 150 general aviation aircraft deliveries worth $1.5 billion could be delayed if the week-old US government shutdown continues until mid-October, says the General Aviation Manufacturing Association (GAMA).

JetBlue announce new service to Detroit its 85th BlueCity with that new service from Boston Logan Airport.

Mexican airline VivaAerobus is set to confirm next week an order worth up to USD$4 billion for 40 Airbus A320-family jets in a change from Boeing to Airbus, industry sources said. The selection follows a bitterly fought contest between plane makers as the Mexican low-cost carrier becomes the latest to compare updated fuel-saving models designed to enter service in mid-decade. Airbus and Boeing declined to comment. The deal is also expected to mark a breakthrough for Pratt & Whitney, whose engines compete with CFM to power Airbus A320s. VivaAerobus currently has a fleet of CFM-powered 737-300s. The Mexican carrier said in June it was studying proposals about the possible purchase of new aircraft.

(Reuters)

Oman Air is evaluating plans to accelerate its near-term growth as part of efforts to move into profitability. Chief executive Wayne Pearce is working to turn around the Muscat-based airline’s losses, but is convinced that the airline needs to expand to be profitable. "We certainly wound our losses down in 2012, but we’ve got a long way to go – we need a bigger fleet and continue to make efficiencies and get our seat factors and yield up," he says. (Airline Business)

Iraq's government has approved an agreement under which it will acquire five Bombardier CSeries jets rather than additional CRJ900s. Iraq's transport ministry says the government has authorised a new contract with Bombardier which effectively implements this exchange. It puts the agreed cost of the CS300s at $40 million each.