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Passengers Stranded

By Aaron Karp

High profile US incidents in which passengers have been kept on aircraft stuck on the tarmac for hours is drawing federal attention. Airlines say regulation is not the answer, but can they do better without it?

Incredible Turnaround

By Aaron Karp

The US airline industry moved from worst to first on the bottom line in 2007 but 2008 is shaping up to be a challenging year.

SAS Alone

By Perry Flint

SAS Group plans to divest non-core assets such as Spanair and its 20% stake in bmi to focus on its home markets.

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BA: OpenSkies still on track for mid-June launch

Friday May 16, 2008

British Airways said speculation that it will defer the launch of OpenSkies, its new transatlantic subsidiary, to later this year or cancel the project "is not true." [more]

Thai's first-quarter profit drops 48%

Friday May 16, 2008

Thai Airways blamed higher fuel costs and foreign exchange losses for a 48% decrease in first-quarter net profit to $68.2 million despite an 11.2% rise in revenue to $1.69 billion. [more]

Vueling's first-quarter loss grows 47%

Friday May 16, 2008

Vueling Airlines posted a pre-tax loss of €32.4 million ($50.1 million) for the first quarter, a 47.1% increase over a €22 million pre-tax loss in the year-ago period. Total revenues grew 48.2% to €88.6 million on a 32.1% rise in passengers carried to 1.4 million. Total operating costs climbed 44% to €120.8 million. Operating loss jumped 32.6% to €32.2 million from a €24.3 million year-ago loss. The Barcelona-based LCC started what it called a "capacity-optimization process" during the quarter and reduced its fleet from 24 to 21 A320s at quarter's end. Looking forward, Vueling said it expects to achieve a "sensible reduction" in losses for 2008 compared to 2007 even with higher average fuel prices and is aiming to achieve profitability in 2009.

Austrian ends talks with potential investor

Friday May 16, 2008

Austrian Airlines Group's talks with potential investor Mohamed bin Iassa Al Jaber have collapsed, with Al Jaber saying he no longer has any interest in investing in AAG. CEO Alfred Oetsch told Austrian Radio this week that he doesn't expect further negotiations with Al Jaber but insisted the carrier will go ahead with a Middle East expansion. In a deal announced in March, Al Jaber said he would take a 20% stake in AAG at €7.10 ($10.97) per share, substantially higher than current market value. However, he reconsidered after the airline posted a first-quarter EBIT loss of €50.1 million, much worse than expected (ATWOnline, May 6). While Oetsch has talked bravely about moving on absent the investment, the carrier's fleet is aging and it is believed that a financial infusion is necessary by 2010 for a fleet upgrade.

Airbus, Jetblue, IAE, Honeywell launch biofuel partnership

Friday May 16, 2008

Airbus announced yesterday in Toulouse a partnership with JetBlue Airways, IAE, Honeywell Aerospace and Honeywell's UOP subsidiary "to pursue development of a sustainable second-generation biofuel for use in commercial aircraft." The new venture will endeavor to develop renewal energy technology to convert vegetable- and algae-based oils into jet fuel.

UOP already has developed "process technology to convert natural oils and greases to military jet fuel" as a drop-in replacement as part of a project funded by the US Defense Advanced Research Projects Agency and the technology also will work for commercial jet fuel. "Biofuels hold tremendous potential to meet growing fuel demand while reducing lifecycle greenhouse gas emissions," said Jennifer Holmgren, director of the Renewable Energy and Chemicals business for UOP. "This partnership brings together a range of aviation and process technology expertise to study and verify the best path toward sustainable use of biofuels in aviation."

Airbus Head of Alternative Fuels Research Programs Sebastien Remy said second-generation biojet could provide up to 30% of all commercial aviation jet fuel by 2030. In February, Airbus flew an A380 powered partially by a gas-to-liquid alternative fuel from Filton to Toulouse ;(ATWOnline, Feb. 4), while Boeing conducted a biofuel test flight in partnership with GE Aviation and Virgin Atlantic Airways ;(ATWOnline, Feb. 26).

Friday May 16, 2008

Delta Air Lines pilots represented by the Air Line Pilots Assn. said yesterday they have ratified the new labor agreement reached with management on the eve of DL's merger agreement announcement with Northwest Airlines (ATWOnline, April 16). Owing to the accord, DL pilots are backing the tie-up, putting them at odds with NWA pilots, who have voiced opposition. DL ALPA MEC Chairman Lee Moak said yesterday that he plans to work with NWA pilots, also represented by ALPA, to forge "a new joint agreement providing immediate parity in rates of pay. . .[and including a] fair and equitable integrated seniority list."

US Airways fleet service workers represented by the International Association of Machinists ratified an agreement that brings all of the airline's ramp and baggage employees under one labor contract.

Friday May 16, 2008

Singapore Airlines launched its new all-business-class service to Newark this week. Its five A340-500s are in the process of being reconfigured with the previous executive economy section removed. Total fit-out is for 100 of SIA's new business class seats in a 1-2-1 configuration. It is the only carrier offering an all-business-class configuration across the Pacific. The upgrade will be completed by September for all nonstops from Singapore to Newark and Los Angeles.

Friday May 16, 2008

Lufthansa Systems said US regional Pinnacle Airlines selected Lido RouteManual to optimize its flight operations processes.

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