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Airbus is expected to sell five of their A380 superjumbo aircraft to All Nippon Airways Co (ANA)(Tokyo). If completed, it would be Airbus’ first sale of the world’s largest passenger plane to a Japanese airline. A sale in Japan would be a big breakthrough for the European plane maker as it has controls about 4% of Japan’s market, compared with a half share elsewhere. Japanese airlines have traditionally purchased almost all of their aircraft from the Boeing company as part of a wider effort to mend trade relations between Japan and the United States after a period of friction in the late 1980s.

A spokesman for ANA said that the carrier had established a committee earlier this week to select a new fleet of large aircraft, but that no decisions have been made at this time. The committee is reportidly examining three options for a new fleet; the Airbus A380, Boeing’s new 747-8, or not acquiring a new fleet at all. There is no information on when the final decision will be made.

American Airlines (Fort Worth) could be eliminating more than 6,800 jobs later this year as the carrier struggles to survive record fuel costs. AMR Corporation, the parent of American Airlines and regional carrier American Eagle, said that it will cut domestic service 11-12% by the fourth quarter, which becomes a systemwide reduction of 8% when including international flights. In a memo to all employees, AMR said the employment reduction will be commensurate with the capacity cuts. AMR has about 85,500 employees, which means an 8% decrease would be about 6,850 workers.

American’s announcement is the latest furlough announcement in the airline industry, which also is trying to raise fares and fees to cope with record fuel prices. Other announced staff cuts include 4,000 at Delta Air Lines (Atlanta), 3,000 at Continental Airlines (Houston), 2,550 at United Airlines (Chicago) and 1,700 at U.S. Airways (Phoenix).

Two employees each from Continental Airlines (Houston) and Concorde-maker Aerospatiale and one French civil aviation authority official were indicted for manslaughter over the fatal crash of an Air France (Paris) Concorde in 2000. All the 109 passengers on board the New York-bound the supersonic jetliner were killed on July 25, 2000 when it crashed immediately after take-off from the Charles de Gaulle airport in Paris. Four workers on the ground were also killed in the accident that led to all Concorde planes, both French and British, being grounded in 2003.

A French inquiry into the tragedy concluded in December 2004 that a strip of metal, which fell on the runway from a Continental Airlines DC-10 that took off just before the Concorde flight, sparked the fire that engulfed the supersonic airliner. Continental Airlines, mechanic John Taylor, and chief of maintenance Stanley Ford are to face prosecution for a “failure of aircraft maintenance.” A prosecutor in Paris said in a statement that the Continental employees are responsible for the faulty installation of the metal strip, while Aerospatiale employees and French civil aviation official “neglected the risk of fires” on the ill-fated jet plane.

The trial is expected to start early next yearAccording to reports.

British Airways (BA)(London) has announced plans to purchase the privately-owned French carrier L’Avion (Wissous) for £54 million. The deal is expected to be completed by the end of July, at which time BA will merge the French carrier with its new subsidiary OpenSkies. The combined airline will operate three daily flights from Paris to New York. Flights will run from Paris Orly Airport to both Newark and JFK in New York.

Air Canada’s discount airline Jazz Air (Halifax) will be cutting 270 employees as the regional airline reduces capacity by 5%. Jazz commented on Thursday that in addition to soaring fuel prices, Canadian airlines also must contend with federal and provincial fuel excise taxes, security fees, and expensive airport charges. The cuts that were announced today follow the mid-June move by Air Canada (Montreal) to cut 2,000 jobs as it reduces its capacity by 7%.

Fire seriously damaged an ABX Air (Wilmington) Boeing 767-200 freighter while the aircraft was parked at San Francisco International Airport late Sunday. The aircraft suffered substantial damage to the forward fuselage section and has a hole burned through the top of the body near the forward exits. There is also evidence of smoke around the cockpit windows. No firm information has been disclosed as to where the fire started and the extent of any internal damage. Two pilots are said to have been on board the aircraft at the time, preparing for a flight to ABX’s Wilmington base in Ohio, and escaped with only minor injuries. The aircraft is reported to be a 22-year old example, N799AX (msn 23432), operating in DHL colors.

Spirit Airlines (Fort Lauderdale/Hollywood) has been fined $100,000.00USD for illegally paying the Cuban government for permission to use the island’s airspace. According to a report by the Office of Foreign Asset Control of the Treasury Department, the carrier made several money transfers to Cuban government accounts from September 2004 to March 2007 without a valid license for such activity. According to federal law, airlines can only make those payments when they have a legal permit from the U.S. Department of the Treasury.

Spirit Airlines maintains that the move was not intentional. “During the beginning of 2007, Spirit Airlines realized that the permit required by the Treasury agency for authorizing flights over Cuba for the use of their airspace had not been renewed,” said Spirit’s spokeswoman, Misty Pinson. “Spirit Airlines never had the intention of violating any requirements or laws to carry out its international operations.”

With fuel prices remaining at record high levels, Horizon Air (Seattle) is moving up the phase out of its smaller turboprops to speed its transition to a single fleet of highly fuel efficient Bombardier Q400s. In the process, the airline is implementing additional schedule changes to further improve its financial performance.

All 12 of Horizon’s remaining 37-seat Q200s will be out of its operating fleet by Oct. 28, instead of the original target date of April 2009. Horizon will also begin the phase out of its 70-seat CRJ-700 jets in September. During this transition, it will take delivery of 14 additional 76-seat Q400s.

The Q400 is the most fuel efficient and environmentally friendly aircraft of its size in the world, burning 30% less fuel and producing 30% less CO2 than a comparable jet. Horizon currently has 34 Q400s in its fleet and holds options for 20 more (in addition to the 14 already on the way).

Horizon now expects its transition to an all-Q400 fleet to be completed by the end of 2009, unless market conditions warrant another adjustment.

The schedule changes shown below will appear in reservation systems July 5, except for the changes to Pendleton service, which are pending government approval.

(Story copyright Horizon Air Media Service)

The Finnair (Vantaa) retro Airbus A319 aircraft, which will be launched at the end of July to celebrate Finnair’s 85 years of flying, will be named Silver Bird based on the outcome of a competition asking the public to name the aircraft. Finnair is painting one of its Airbus A319 in the livery of a Convair aircraft, which Finnair flew under its original name Aero in the 1950s. The name Silver Bird will be painted underneath the cockpit window.

“The name is international and stylish, it fits the times and has a touch of the grey panther about it,” said Finnair’s SVP Commercial Division Mika Perho. Other popular suggestions included names from the Finnish epic Kalevala, names of Finnish Presidents and cities, as well as birds and flowers beginning with blue.

Air China (Beijing) has announced that it will be purchasing 20 Airbus A330 aircraft from the manufacturer. At current list prices, the deal will be valued at $3.82 billion USD. The airline said it will use cash, bank loans and debt instruments to pay for the aircraft, which will boost capacity by 16.5%. The additions will also allow it to increase flight frequencies from Beijing. Airbus has yet to confirm the order, nor have they given any indication of likely delivery dates.

ABX Air (Wilmington) will be losing 23 McDonnell Douglas DC-9 aircraft as its primary customer, DHL Network Operations, reduces its business with the cargo airline. DHL notified ABX on June 20 that it would reduce the services ABX is providing by 23 aircraft by the end of 2008. That will affect 16 of ABX’s scheduled air routes, the airline said. DHL contributes more than 70% of ABX’s revenue, according to its parent, Air Transport Services Group Inc.

The MA600, a new aircraft to join China’s turboprop fleet, is expected to roll off the assembly line in Xi’an on Sunday. This latest MA “Modern Ark” member could be the stepping stone to China gaining a larger share of the world’s turboprop aircraft market, insiders said. Currently, the 50- to 60-seat MA60, the first and only model of the MA series on sale, has received 122 orders since 2005, mainly from African and East Asian countries. “To assure a bigger slice of the turboprop market, the MA600 is designed to meet demand for the next 10 years,” Chen Fusheng, deputy director general of the commercial aircraft department of AVIC I, said yesterday.

Engineers have optimized the aircraft’s structure and its aviation electronics system, improved the interior decoration, and added maritime survival functions for island countries, He Shengqiang, chief engineer and vice-president of Xi’an Aircraft Industry Company Ltd under AVIC I, said. “The total weight of the MA600 is 300 kg less than the MA60, further reducing the aircraft’s fuel consumption,” He said. The MA600 is set to begin trials in September and will be delivered to its first customer - the Civil Aviation Fight University of China in Guanghan, Sichuan province - next year, He added.

AVIC I has drawn up an ambitious blueprint for its MA series, which will be comparable to the Canadian Bombardier and the French ATR aircraft. Chen said, “We hope to see that 40 percent of all turboprop aircraft delivered in the world in 2018 are from the MA series.” To remain competitive in the years after 2018, AVIC I has already started work on the development of the MA700, an aircraft mainly targeted at markets in Europe and America, Chen said. The entire series - MA60, MA600 and MA700 - will coexist to cater to the different demands of customers, he said. “Turboprops have huge potential in this era of increasing oil prices,” Chen added.

Turboprop aircraft use much less fuel than equivalent turbojets produced by Boeing and Airbus, and are just as safe as turbojets, he said. “Some of our airline customers abroad have reported profits in the first quarter after they replaced turbojets with the MA60,” he said. Joint research by Bombardier and the Aviation Industry Development Research Center of China, found that of the 5,300-5,500 regional aircraft need in the next two decades, there will be a need for 1,900 turboprop aircraft.

Frontier Airlines (Denver) announced today a 17% reduction in its flight operations beginning in September and a “proportional” reduction in workforce. Because Frontier employs approximately 6,000 people, this could mean that 1,000 of their workers will be out of a job.

The airline will retire 7 aircraft from its fleet of 60 Airbus planes. Two others already have been sold, which means its fleet will consist of 51 planes by September, Frontier spokesman Steve Snyder said. Officials from the carrier have met with union officials to discuss the cutbacks and will continue meeting, Snyder said.

An Air India (Mumbai) flight headed for Mumbai overshot its destination and was halfway to Goa before air traffic control was able to wake the sleeping flightcrew, a recent report says. The high altitude nap took place approximately two weeks ago, the Times of India reported Thursday. The report, however, drew a furious denial from Air India.

Some 100 passengers were on board flight 612 that originated from Dubai and flew to the western Indian city of Jaipur before heading south to Mumbai when both pilots fell asleep, a source told the paper. The source, who was not identified in the report, went on to say, “After operating an overnight flight, fatigue levels peak – and so the pilots dozed off after taking off from Jaipur.”

The plane flew to Mumbai on autopilot, but when air traffic there tried to help the aircraft land, the plane ignored their instructions and carried on at full speed towards Goa.

“It was only after the aircraft reached Mumbai airspace that air traffic control realized it was not responding to any instructions and was carrying on its own course,” the source said. “The aircraft should have begun its descent about 100 miles (160 kilometres) from Mumbai, but here it was still at cruising altitude. We checked for hijack.” Finally air traffic control buzzed the cockpit and woke up the pilots, who turned the plane around, the report said.

Air India on Thursday said a plane had overshot its Mumbai destination on June 4, but furiously denied it was because the pilots were sleeping, putting the glitch down to a brief communications breakdown. “The report is absolutely incorrect, devoid of facts, misleading and irresponsible. It is a figment of imagination,” Air India spokesman Jitender Bhargava said. “We have gone through the flight reports of the last 30 days. A plane did cross Mumbai for 15 kilometres because it had lost contact for a few moments. At those speeds 15 kilometres is covered in a very short time. The plane quickly established contact with air traffic control and landed a short while later.” Bhargava accused the Times of India, one of the country’s biggest papers, of “batting for somebody.”

Boeing and Biman Bangladesh Airlines (Dhaka) today announced an order for two Boeing Next-Generation 737-800s, with purchase rights for two additional 737s. Today’s signing ceremony, held at the U.S. Department of Commerce, was attended by dignitaries from Bangladesh and the United States and also celebrated Biman’s selection of an all-Boeing jet fleet for its future operations.

“Today marks a progressive step forward for Biman,” said Dr. M. A. Momen, managing director and CEO of Biman. “Our fleet consolidation with Boeing airplanes is based upon a partnership that combines aircraft efficiency, reliability and in-service support to maximize our competitiveness - something we need to drive forward to be an instrumental part of the country’s economic growth and development.”

Biman recently announced an order for four 777-300ERs and four 787-8s with purchase rights for four more of each model type. The airline currently connects Bangladesh with 18 countries around the world, and has agreements in place that will allow it to serve a total of 42 countries as it implements its growth plan.

“Boeing is committed to working closely to help airlines in developing nations grow in the most efficient way possible, and our product line reflects that commitment,” said Marty Bentrott, Boeing Commercial Airplanes vice president of Sales for the Middle East & Africa. “We look forward to working closely with Biman Bangladesh over the long term as it capitalizes on traffic growth driven by the country’s expanding economy.”

Biman Bangladesh Airlines, which began as a government-owned national carrier in 1972, became Bangladesh’s largest public limited company in 2007. The purchase of Boeing airplanes represents the largest capital expenditure in the country’s history.

One hundred fifteen customers have ordered more than 4,800 Next-Generation 737s. Boeing has more than 2,200 unfilled orders for the Next-Generation 737 valued at more than $160 billion at current list prices.

American Airlines (Fort Worth) will soon be offering passengers free Internet access on flights from New York to the West Coast. The carrier will be testing in-flight Internet today on selected services from JFK to Los Angeles, San Francisco, and Miami after installing the Gogo WiFi service on fifteen (15) of its Boeing 767-200 aircraft. Passengers will be able to check e-mail and use Instant Messaging services on notebook computers and wireless-enabled devices such as smart phones. Initial services will be free. American ultimately plans to charge between $9.95 and $12.95 for the service, based on the duration of flights. The full test will last between six and nine months, when the airline will decide whether or not to introduce the network on all planes.

Photo: An American 767-200 arrives in Los Angeles. (Photo Copyright Andrew Brescini)

International Lease Finance Corp. (ILFC), the world’s biggest aircraft lessor, said it may soon be ordering 300 jetliners from Boeing and Airbus to meet demand from airlines that can no longer afford to buy their own planes. The orders will likely materialise at the upcoming Farnborough International Air Show in the UK. Executives also indicated that the leasing firm may also wait six months to a year to place orders if prices of aircraft seemed likely to decline further.

ILFC may purchase 150 single-aisle aircraft from each manufacturer, chief operating officer, John Plueger, said in an interview. The order could likely be worth about $22 billion USD at current list prices, though the lessor said it’s seeking major discounts. Executives said that a marketplace in disarray could provide a “lot of opportunities” as airlines are increasingly looking at deferring, or even cancelling, orders placed by them in better times.

In March of this year we reported that Emirates Airline (Dubai) would be establishing a new low-cost carrier to offer service to the region. The new airline now has a name, FlyDubai.

The brand identity and livery for FlyDubai will be unveiled in the coming months. HH Sheikh Mohammed bin Rashid Al-Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, has approved the name FlyDubai from a shortlist presented by HH Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of the new low-cost airline.

Sheikh Ahmed said, “FlyDubai is a simple, yet powerful call to action. It makes an immediate link to our core business, which is providing no-frills flights to bring people to and from Dubai. The name also carries a strong association with the city of Dubai, itself a brand synonymous with excellence, reliability and an international, pro-business approach. FlyDubai’s operations will potentially cover an area of some two billion inhabitants. It will support Dubai’s commercial and tourism sectors by serving a new set of travellers, and providing them with affordable air links to popular, high-demand destinations. A lot of ground work has been done thus far, and I’m pleased to note that FlyDubai is on track to launch its first flights by mid-2009.”

FlyDubai will initially focus on regional flights within the GCC area and surrounding countries. Its operations will be entirely separate from Emirates Airline and Group.

Ghaith al Ghaith, Chief Executive, FlyDubai said, “Since the government announced the formation of Dubai’s new low cost airline in March, it has been all systems go. We are recruiting for key positions, evaluating aircraft options and routes, working out our pricing and distribution strategy, and putting in place the structure and operational resources for the business. Efficiency is the pillar of our business model. In terms of our customer proposition, we will focus on keeping things simple and flexible. We want to make it easy for our customers to interact with us, and to have more control in how they book, purchase and select value-added services to their basic flight experience. It has been a busy time, but everything is going to plan. The selection of a name for the airline is only the first of many milestones to come, and we look forward to announcing more details over the coming months.”

United Airlines (Chicago) says that it is planning to lay off 950 pilots as it prepares to cut domestic capacity to offset soaring fuel prices. The layoffs would be about 15% of United’s 6,518 pilots. The carrier has said it plans to cut its staff by 1,400 to 1,600 as it aims to reduce domestic capacity by 14% in the fourth quarter.

According to Megan McCarthy, spokesperson for the airline, the initial notices for the layoffs will be sent out in mid-July, and will start taking effect in September, following into next year. She also said that the cuts announced were in addition to the job cuts for 1,600 salaried positions announced at an investor conference a week ago. Details on the cuts are yet to emerge.

A company statement said, “As we reduce the size of our fleet and take actions company wide to enable United to compete in an environment of record fuel prices, we must take the difficult but necessary step to reduce the number of people we have to run our business.”

Photo: United’s cuts will most likely come from the Boeing 737 fleet that is being downsized. (Photo Copyright Eric D Smith - Northern Exposures)

The government of Indonesia has cancelled the air operator’s certificate (AOC) of Adam Air (Jakarta), effectively putting an end to the already grounded carrier. Deputy director of flight standards at Indonesia’s Directorate General of Civil Aviation (DGCA), Diding Sunardi, says the authority sometime around June 16 cancelled the AOC. On March 18, Indonesia’s transport ministry forced the airline to ground its entire operations because of shortcomings in the airline’s operational, training, and maintenance procedures. The airline also experienced severe financial problems throughout its last year of carriage, as well as being involved in Indonesia’s most fatal crash in the past couple of years.