Facing high costs and increased competition, Air France-KLM’s management must pick its battles. Having announced plans for up to 2,800 job cuts on September 18, the European airline this week deferred a decision on whether or not it will provide further investment to plug holes in the sieve-like balance sheet of Alitalia. It holds a 25-percent stake in the Italian carrier, and Italy’s government has indicated it would be willing to see the Franco-Dutch group increase that share to 50 percent.
Boeing and Airbus will share in the spoils of a massive investment by Lufthansa Group involving orders for 59 widebody airplanes worth $18.7 billion at list prices, the German airline announced Thursday.
Dubai Aerospace Enterprise (DAE) has terminated discussions with BBA Aviation about combining unspecified parts of its business. DAE, a Dubai-based MRO, aircraft completions and aircraft leasing company, entered into the discussion with British aircraft services firm BBA late last month to explore merging some of their assets. Reuters reported the talks centered upon an estimated $4.2 billion deal focusing on DAE’s StandardAero. StandardAero did not respond to requests for further comment.
The Australian Transport Safety Bureau (ATSB) released a training video highlighting some near catastrophes that occurred after experienced pilots incorrectly entered takeoff data in the flight management computer aboard large airline aircraft, including a Boeing 747 and 767 and an Airbus A340.
Clearance of Etihad Airways’s $380 million investment in Jet Airways by India’s Foreign Investment Promotion Board (FIPB) last week has paved the way for completion of the deal. The airlines now await approval from the Cabinet Committee on Economic Affairs (CCEA), which oversees foreign investment proposals of more than $200 million, and security clearances of foreign nationals.
Some 54 countries in Africa hold stakes in airlines and airports, but all must increasingly consider the invasion of their skies by international players, led by the likes of Middle East heavyweights Emirates and Qatar Airways.
Energized by the explosive growth in the Middle East air transport market, Qatar Airways has turned its attention to Scandinavia as it extends Boeing 787 services to Stockholm on August 1, to be followed a month later to both Copenhagen and Oslo.
Qatar Airways placed a firm order for a pair of Boeing 777-300ERs and signed a commitment for another seven on the opening day of the Paris Air Show. Boeing places the value of the nine airplanes at $2.8 billion, based on list prices. Also holding an outstanding order for seven 777s, Qatar Airways plans to increase the size of its present fleet of 35 Boeing 777s to 51.
General Electric GE90-115Bs power the 777-300ER. GE places the value of the engine commitment at $600 million.
Boeing got another big boost for its widebody lineup here yesterday when Korean Air committed to another five 747-8Is and six 777-300ERs worth $3.6 billion at list prices. Also a customer for the Airbus A380, Korean has now signaled its intention to place a second order for the superjumbo’s competitor, production of which Boeing recently cut from two airplanes to 1.75 per month. Boeing holds firm orders for just 40 Intercontinentals and 65 freighters.
Airbus’s A380 yesterday received a highly welcome boost from Doric Lease, which placed a memorandum of understanding (MoU) for the purchase of 20 of the superjumbos at the Paris Air Show.