Lufthansa Group and Air
China will invest $100
million in their jointly
owned aircraft mainte-
nance and engineering
company Ameco Beijing
over the next four years as part of
the previously announced agree-
ment to extend their cooperation
for another 25 years. Air China
will continue to hold 60% of the
GE Engine Services will maintain
GE90-90Bs powering China
Southern Airlines’ 777-200s
through at least 2013 under a
five-year extension to their current Maintenance Cost Per Hour
agreement. The work will be
performed at GE’s Nantgarw,
Air New Zealand selected Rockwell Collins to supply e TES
audio and video on demand
inflight entertainment equipment
on its eight new 777-200ERs.
The first aircraft is expected to be
in service by Sept. 2005.
LAN Airlines, formerly LanChile,
enjoyed record net income of
$31.5 million for the three-month period ended June 30, its
seasonally weakest quarter. In
the year-ago period, it earned
$4.1 million. Operating revenues
rose 28% to $462.8 million
while operating expenses climbed
21.9% to $428.8 million and
operating income more than
tripled to $33.9 million. For the
six months ended June 30, LAN
earned $79.6 million, a threefold
increase compared to net income
of $25.7 million last year.
Brazilian low-cost carrier Gol
reported net income of 73. 2 million reais ($24.2 million) and
operating income of R$92.8 million for the 2004 second quarter
ended June 30. The airline said
its results were boosted by a
20.9% jump in revenue to
R$385.5 million owing to a 14%
increase in departures, the addition of 29 new flight frequencies
and strong demand for the airline’s night flights.
Government of Trinidad assumed
control of BWIA temporarily and
hopes to come up with a plan to
make the struggling airline profitable again, the Associated Press
reported. The carrier was gov-ernment-owned until 1995,
when it was privatized. BWIA,
which has been bailed out repeatedly by the government in recent
years, posted a $24 million loss
Iberia and TACA signed a codesharing and said they plan to
extend it to other areas of cooperation in the future. The move
follows Iberia’s decision to close
its Miami minihub in light of
new US security-related requirements that have made operation
of the hub commercially
Africa/Middle East report
Ghana Airways’ service into the
US was interrupted at the end of
July after US DOT revoked its
authority, citing “serious questions surrounding the safety of its
aircraft” and the fact that it had
failed to renew its US operating
certificate. The airline operated
to New York and Baltimore.
El Al reported a gross profit of
$4.5 million for the first quarter
of 2004, reversing a net loss of
$35.5 million in the year-ago
period. Revenue rose 33% to
$302.6 million. Positive cash
flow totaled $13.1 million.
Virgin Atlantic is examining the
possibility of setting up an airline
in Nigeria, with a decision
expected by year end. The new
airline would fly to destinations
in Europe and the US if
approvals are received.
Atlas Air Worldwide Holdings,
parent of Atlas Air and Polar Air
Cargo, emerged from Chapter 11
bankruptcy protection at the end
of July having discharged more
than $600 million of pre-petition
debt and reduced financial costs
through the restructuring of air-craft-related debt and lease obligations. It filed for bankruptcy
protection in Jan.
Lufthansa Cargo and US Airways
entered into a “wide-ranging
cargo agreement” covering select
routes from Europe to the US.
Under the agreement, which
begins Sept. 1, LHC will assume
responsibility for marketing US
Airways freight capacity on
flights originating in Europe destined for the US. In addition,
the carriers will consolidate operations and plan to move under
one roof at all European airports
served by US Airways and in
Philadelphia, Pittsburgh and
ABX Air earned $5.8 million in
the three months ended June 30,
up 63.6% over earnings of $3.5
million in the prior-year period.
Revenues declined 7.5% to
$274.7 million while operating
expenses fell 6.9% to $266.9 million, resulting in operating
income of $7.8 million, down
25.9% from operating income of
$10.5 million in the year-ago
Virgin Atlantic Airways ordered
13 Trent 500-powered A340-
600s bringing its total firm orders
to 25 of which seven are in service, with options for a further
13. Deliveries of the newly
ordered aircraft begin in 2006
and the order is valued at more
than $5.5 billion.
Thai Airways International
announced an order for six
A380s plus one additional A340-
500 and one A340-600. In
addition, the airline placed an
order for six medium-range air-
craft, which are thought to be
777-200s. Total value of the 14
aircraft is put at $9.6 billion.
Air China Cargo ordered two
valued at approximately $400
million at list prices with deliveries in Nov. 2005 and March
ANA finalized its launch order for
50 7E7s, choosing 20 7E7-8s and
30 short-haul dash 3s. The first
7E7-8 arrives in 2008 and the
first dash 3 in 2010.
Independence Air ordered an
A319 for delivery in March
2006, bringing its firm Airbus
orders to 28.
Air Senegal International said it
will buy a 737-700 with delivery
scheduled for July 2005.
Tarom selected the CFM56-5B
to power four A318s set for delivery in 2006-07.
Japan Airlines ordered a CAE
777-200ER simulator with delivery in spring 2006 valued at
C$16 million ($12.2 million) at
America West formalized a previously announced commitment
for 10 A320s and seven A319s.
It also will lease four A320s
from various lessors and either
purchase or lease one more
A320, bringing the total to 22
aircraft. Deliveries of the purchased aircraft begin in late
2005 and will run through
2006. All A320s will be powered by IAE V2500s.
All Nippon Airways ordered 45
shipsets of blended winglets from
Aviation Partners Boeing for its
737-700s currently on order.
Deliveries begin in Oct. 2005.
Next month in ATW:
■ Brazil’s GOL
■ Inflight connectivity
■ Air New Zealand
Israel Aircraft Industries’ Bedek Aviation Group received an FAA STC for its 767-200
freighter conversion program at the end of July. Aircraft was delivered to ABX Air (see article, p. 45).