New Southwest Airlines 737NG captured at BFI

Southwest Airlines 737-7BD (36726/3585) N1786B tbr N555LV is captured at Boeing Field (BFI/KBFI) on March 5, 2011 following it's first pre-delivery test flight. The aircraft was originally destined for AirTran Airways hence the Boeing BD designation, but is now being delivered directly to Southwest Airlines due to the carriers soon to be approved purchase of AirTran.

(Photo by Joe G. Walker)

EADS concedes tanker loss to Boeing

Airbus parent EADS conceded defeat in an epic, decade-long contest to sell aerial tankers to the Pentagon and confirmed it would not protest the award of a USD$30 billion contract to Boeing.

EADS North America chairman Ralph Crosby expressed disappointment after Boeing won the deal on the third attempt, but said the US company beat EADS' bid by USD$2 billion, offering a "much lower" price than EADS would have done.

The decision -- and news that EADS' congressional backers would not try to reverse the contract legislatively -- capped a decade of wrangling that has ended political and military careers; sent former Boeing officials to prison for ethics violations, and sparked a massive wave of acquisition reforms.

"It's clear that there is no foundation for protest," he said. While EADS still had misgivings about the way the Air Force had structured the competition this time, Crosby said the service had followed the new ground rules scrupulously.

In the end, Crosby said EADS decided that it could not have undercut what he described as an "extremely lowball bid" submitted by Boeing to keep Airbus from securing a US production site for mid- to large-sized airliners.

"When you're in a fixed-price game and the other guy decides he's going to win at any cost, there's probably not a lot more that could be done," Crosby told reporters.

But he said he did not believe EADS made a mistake by competing on its own after its former partner Northrop Grumman pulled out of the running, and said the competition had saved about USD$16 billion from the initial 2001 tanker deal that the Air Force proposed with Boeing.

EADS confirmed its decision at a news conference after it was reported on Thursday that the company would likely refrain from a protest, focusing instead on other weapons contracts and acquisitions.

EADS North America chief executive Sean O'Keefe said the company was actively looking at possible acquisition targets and could make a move soon, although he declined to give any specific timetable or scope for a possible deal.

DISAPPOINTMENT

EADS' decision to skip a protest may ease trans-Atlantic tensions over defense contracts but disappointed many in Alabama where EADS planned to assemble its fleet.

Mobile, Alabama Mayor Sam Jones, who got the news from Crosby late on Thursday, said the competition had become a "straight up price shootout" that EADS felt it could not win.

EADS' backers in Congress vowed to keep close tabs on Boeing's performance on the contract. Representative Jo Bonner, of Alabama, said "Boeing simply bought the contract with a low-ball bid and I sincerely hope our military and taxpayers are not the ultimate losers if Boeing fails to deliver."

For Boeing, the move marks a double victory -- keeping its 767 production line running for a decade longer, and blocking Airbus from establishing a commercial plane manufacturing site in the United States on the back of the tanker deal.

Boeing welcomed the news and said it was ready to go to work on an initial USD$3.5 billion development contract for the first 18 planes that it signed with the Air Force last week.

EADS officials said Boeing's bid was riskier than their own, given that EADS is already building very similar tankers for Australia and other foreign countries, and said EADS would be ready to jump in if Boeing's performance faltered.

The new KC-46 planes will replace the Air Force's fleet of KC-135 tankers, which are about 50 years old on average.

The Air Force underscored that both competitors were "world-class companies" and said it expected to continue the long-standing relationships it had with both firms.

THIRD ATTEMPT

This is the Air Force's third bid to buy new refueling planes since 2001. The first deal collapsed amid a procurement scandal that sent two former Boeing officials to prison. The second attempt died in 2009 after government auditors upheld a Boeing protest.

The Pentagon awarded the contract last week, calling Boeing the "clear winner." Officials said EADS could challenge the decision, but they expected to prevail in any protest.

EADS said its own analysis showed that Boeing's proposed price was USD$21.4 billion against its own offer of USD$23.4 billion, making the EADS proposal more than 9 percent more expensive.

It said the Air Force's total evaluated price of the Boeing bid was USD$20.6 billion, a figure arrived at after subtracting an estimated USD$800 million from Boeing's bid for an estimated fuel usage advantage and USD$300 million for military construction.

EADS said its evaluated price was USD$22.6 billion, noting that the USD$800 million advantage earned by the company on a complicated fuel effectiveness model was effectively cancelled out by Boeing's advantage for fuel usage and construction.

EADS said its proposed engineering and development costs of USD$3.5 billion compared to USD$4.4 billion for Boeing.

(Reuters)

First 787 "Dreamliner" arrives in San Antonio for mode work

Boeing said Monday it has started 787 change incorporation work at its Global Services & Support site in San Antonio. Several early production aircraft will come to the Texas facility for final refurbishment, including installing electronic and mechanical equipment, completing software upgrades, testing functional systems and removing and reworking wiring or equipment requiring an update to meet current configuration standards.

The manufacturer said approximately 450 employees will be hired on a temporary basis to join with 1,700 Boeing workers at the site (currently engaged mostly in military aircraft modifications) to complete the 787 work, which is slated to be performed through March 2013.

Dreamliner production aircraft No. 23, the first 787 scheduled to undergo change incorporation, arrived Friday from Everett on a ferry flight. At least six aircraft will undergo the procedure in San Antonio, including three of the six flight test 787s once flight testing is completed.

"The current plan is for six Dreamliners to complete change incorporation and refurbishment in San Antonio," Boeing stated. "However, the plan is flexible and could accommodate additional 787 production needs as flight test is completed and airplanes are prepared for delivery."

(Aaron Karp - ATWOnline News)

Photo of the Day / Solitaire Air 737-4Q8

New Jordanian Airline Solitaire Air operates 737-4Q8 (25109/2561) JY-SOA "Hala" which is captured at London-Gatwick (LGW/EGKK) as it readies to depart on March 6, 2011. The aircraft is late of Alaska Airlines, N776AS.

(Photo by A.J. Best)

Boeing to announce 737 replacement at or before Paris Air Show

(Photo McDonnell Douglas)

Boeing is moving "far more aggressively" toward a 180-250 seat twin-aisle replacement for the 737, according to company insiders. It would continue production of the 737-800/900ER for airlines that still want the standard offering.

VP-Advanced 737 Product Development Mike Bair confirmed this week that a twin-aisle has been canvassed, a scenario first revealed by ATW in 2006. Separately, ATW has learned that Boeing will announce an all-new 737 replacement, to be named the 797, at or before the Paris Air Show commencing June 20. Bair’s comments regarding the replacement being a twin-aisle, which have not been denied by the company, came in an interview with Flightglobal.

(Photo McDonnell Douglas)

The 180-seat twin-aisle concept has a fair amount of history. McDonnell Douglas developed a 180-seat twin-aisle concept in a 2-2-2 configuration in the early 1980s dubbed the DC-11. Delta Air Lines wanted to order 60 but MDC balked at the commitment, considering it too risky given the lack of interest from another US airline. The fuselage had a cross-section that was 22 in. wider than the 727/757, allowing for 17.7-in.-wide seats in doubles with two 18-in. aisles. In an all-economy layout at a 30-in. pitch, it could seat 214.

Using the latest technology at the time, including composite floor beams, control surfaces, nacelles, vertical and horizontal stabilizers and other primary structures, MDC predicted fuel consumption 10% better than the 757 with the same engine application—the JT10D-32 engine rated at 32,000 lb. thrust.

Boeing also floated the twin-aisle 180-seat concept in 1987—the year that Airbus rolled out its A320--with its 7J7 and showed a full cabin mockup at that year's Paris Air Show. It took the widebody concept further with a 181-in. cabin width that would permit 2-3-2 seating, 17-in.-wide seats and 18-in. aisles in coach. It is this cross-section that insiders at Boeing indicate the company is focused on.

The twin-aisle idea surfaced again in 2001 in two patents filed by Boeing under the heading "Twin-Aisle Small Airplane," with Mithra Sankrithi, a manager in Commercial Airplanes' product development, configuration and engineering analysis group, named as the inventor. The patents were submitted on Oct. 2, 2001, and approved in 2003 and 2004. One cabin sports a 2-3-2 configuration with Sankrithi claiming the new configuration could deliver "the comfort typically reserved for larger aircraft," while at the same time minimizing drag, weight penalties, fuel burn and "economic penalties." The fuselage cross-section for the 2-3-2 configuration is 200.7 in., fractionally wider than the 767's 198.03 in., and the design features a swept T-tail.

Interestingly, Sankrithi filed another patent last year with co-engineer Kevin Retz with the same T-tail twin-aisle under wing engine layout, which is similar to the configuration and layout of another McDonnell Douglas aircraft: The 1981 vintage 150-seat MDF100, which was to be built with Fokker on a 50/50 basis but didn't get off the drawing board.

(Geoffrey Thomas - Air Transport World News)

Turkish Airlines commences Los Angeles service

Turkish Airlines 777-3F2/ER (40792/906) TC-JJH "Rumeli" arrives at Los Angeles International Airport (LAX/KLAX) on Saturday March 5, 2011.

(Photo by Michael Carter)

Turkish Airlines began service to Los Angeles International Airport (LAX/KLAX) on Thursday March 3. Operated by Boeing 777-3F2/ER (40709/909) TC-JJI "EGE," flight "THY9" arrived from Istanbul Ataturk International Airport (IST/LTBA) at 15:11 following a 13 hr 31 min flight. Flights will operate on Tuesday, Thursday, Saturday, and Sunday.

Photo of the Day / Insel Air MD-82

Insel Air MD-82 (48021/1078) PJ-MDB arrives at Philipsburg/St. Maarten-Princess Juliana Airport (SXM/TNCM) St. Maarten. The aircraft was originally delivered to Austrian Airlines as OE-LDX "Tirol" on February 28, 1983 as an MD-81, it was converted to -82 status in December 1990. In December 1999 Austrian Airlines sold the aircraft to CAL DEL (48021) Inc. and was immediatly leased to Spirit Airlines as N812NK. It served with Spirit Airlines until being sold to Safair on January 27, 2005 then leased to Comair as ZS-OPU and operated in the Kulula livery. The aircraft has been operating with Insel Air since late 2008.

(Photo by Nik French)

Long Beach Airport March 3rd

Thursday March 3rd saw a couple of interesting visitors to Long Beach Airport (LGB/KLGB).

Swift Air 767-277 (22694/32) N767MW arrived from Phoenix Sky Harbor International Airport (PHX/KPHX) at 15:58 as "Swift Flight 767." The aircraft was originally delivered to Ansett Australia Airlines as VH-RMF.

NASA T-38N "Talon" (c/n T6245) N961NA departed Long Beach Airport at 15:16 as "NASA961" bound for El Paso (ELP/KELP), Texas.

(Photos by Michael Carter)

Delta Airlines to buy more MD-90s

Delta Airlines has announced it will buy 9 McDonnell Douglas MD-90-30's from Japan Airlines (JAL) with deliveries scheduled to commence in 2012. The aircraft were originally delivered to Japan Air System (JAS) but were phased into JAL when the two carriers merged. The addition of these aircraft will bring Delta's MD-90-30 fleet up to 58 with 19 aircraft currently in operation. Delta Airlines became the launch customer for the type when Alaska Airlines cancelled it's order and went instead with the Boeing 737NG.

(Michael Carter - APF Editor)

Possible curfew for Burbank and Van Nuys Airports

After decades of wrangling over nighttime jet noise, San Fernando Valley lawmakers introduced a bill Monday they hope will help silence the skies over Bob Hope (BUR/KBUR) and Van Nuys (VNY/KVNY) airports.

The Valley-wide Noise Act submitted to a House transportation committee would institute a nighttime curfew on all jet flights at the airports.

The proposed legislation follows the FAA's rejection in 2009 of a 10 p.m.-to-7 a.m. curfew after a nine-year, $7 million study by the agency that governs Bob Hope Airport.

"Valley residents living under the flight path and near Bob Hope and Van Nuys airports should be able to enjoy a restful night without the roar of jet engines," said a statement by Rep. Brad Sherman, who introduced the bill with Reps. Adam Schiff and Howard Berman.

"We are committed to achieving a solution that ultimately reduces or eliminates nighttime noise within the communities that have fought for relief for decades."

The proposed act was submitted to the House Committee on Transportation and Infrastructure. As such, it would amend a 1990 aviation law interpreted by the Federal Aviation Administration in 2009 as preventing airports from imposing the nighttime curfew.

The measure would be among the latest efforts to mitigate aviation noise at Bob Hope and Van Nuys airports, a source of complaints since the dawn of the jet age.

Bob Hope Airport has long banned louder so-called StageII jets, according to airport officials. And commercial airlines recently abided by a volunteer curfew for the newer, quieter aircraft. But that still left late, unscheduled commercial arrivals, said Bob Hope Airport spokesman Victor Gill, as well as nighttime jet flights by light cargo and mostly business traffic.

Gill said the nighttime jets were mostly during the week - and are limited to between 20 and 25 takeoffs and landings by light turboprop cargo carriers; roughly one or two landings by larger cargo flights such as UPS or FedEx; and less than 10 flights a day from mostly smaller business jets.

Most flights, he said, ran from north to south over North Hollywood, then headed west and toward their respective cities.

"The Airport Authority is very supportive of the congressional effort to try to get some nighttime noise relief through the legislative process," Gill said, "that we were unable to do on the federal study side."

(Dana Bartholomew - Contra Costa Times)

Ex-JAL 747-400 to be used as GE test aircraft

Flight trials of CFM International's new Leap-X engine, an option for the Airbus A320neo, will be carried out on a new Boeing 747-400 testbed.

General Electric has acquired the 747-400, an ex-Japan Airlines airframe, which will undergo structural modification and renovation to prepare for the work.

The aircraft, powered by GE CF6-80C2 engines, will replace the company's 747-100 flying testbed and be based at its California facility in Victorville.

GE will redesign and reinforce the aircraft's wing to take on the load of the Leap-X as well as other potential future engine designs.

"The interior will also be modified and GE will install data systems for testing and systems integration equipment to transform the aircraft into a flying testbed," it says.

Manufactured in 1994, the 17-year-old aircraft (N356AS) served with Japan Airlines before being withdrawn as the carrier phased out its entire 747-400 fleet as part of a broad restructuring.

"We selected this aircraft for purchase since it was well-maintained by Japan Airlines' engineering team," says GE Aviation general manager of assembly, test and overhaul Colleen Athans.

The company's 747-100 test aircraft, which it has used since 1992, is the oldest 747 operating in the USA and the fifth-oldest in the world.

GE is investing $60 million in the acquisition and refurbishment of the 747-400, adding that it will be the airframe used for testing the Leap-X once the overhaul is completed in about two years' time. The new engine has been selected for the Chinese Comac C919 and is one of two offered for the A320neo.

Leap-X's development has progressed with the selection of Safran Group's Aircelle division to supply the integrated nacelle package for the A320neo version of the engine. Aircelle says the nacelle will incorporate technology derived from the nacelles used on the Airbus A380.

Related Story

Japan Airlines completed the phasing-out of its Boeing 747-400s on 1 March, closing its operations with the 747 family after 41 years.
The carrier operated 112 of the iconic jets after taking its first 747-100 in 1970, including a high-density 747-400D with 568 seats, which was used for domestic operations.

It started introducing the 747-400 in early 1990 and had 34 for international use, plus eight for domestic routes, and two freighters.

JAL performed its last two 747-400 flights to Tokyo Narita from Honolulu and Okinawa. The fleet is being withdrawn in favour of smaller-capacity types including the Boeing 767, 777 and 787.

(David Kiminski-Morrow - Flight International News)

Royal Australian Air Force considering 5th C-17A

Australia could buy a fifth Boeing C-17 strategic transport, although such a deal could see the country forgo two Lockheed Martin C-130Js that it was also considering.

Speaking at Australia's Avalon air show, minister of defence Stephen Smith said that Canberra is formally seeking availability and pricing information for one additional C-17 through the USA's foreign military sales programme.

The Royal Australian Air Force's four C-17s were delivered between 2006 and 2008, and the first became operational in 2007.

Smith highlights the C-17's utility in humanitarian missions stemming from natural disasters within Australia and elsewhere in the region.

Smith says that if a follow-on C-17 purchase happens, it would mean that Australia would "almost certainly" not buy two additional C-130Js under project Air 8000 Phase 1. The nation had been expected to make a decision whether to buy the additional C-130Js between 2013 and 2015.

The Australian government points out that a single C-17 can carry "up to four C-130 loads in a single lift and cover twice the distance in three-quarters of the time".

Australia's Department of Defence says: "Following receipt of cost and availability information from the United States, the government will make a decision about purchase based on capability, cost and schedule assessments of an additional C-17."

The news comes as a welcome boost for Boeing, which is also awaiting the confirmation of a planned 10-aircraft C-17 deal with India.

(Greg Waldron - Flight International News)

Frontier Airlines to leave Long Beach

It has been confirmed that Frontier Airlines (Republic Airlines) will pull out of Long Beach Airport (LGB/KLGB) as of April 16. The carrier stated that underperforming load factors between Denver International Airport (DEN/KDEN) and Long Beach are to blame for the discontinuation of the service.

The open slots will go back into the slot pool then awarded to either an existing carrier operating at the airport or to a new entrant if one expresses an interest.

(Michael Carter - APF Editor)

FedEx could operate up to 55 777Fs in the future

FedEx Express has unveiled its latest Boeing 777-FS2 (37725/890) Freighter, part of an order that could see the Memphis-based carrier operate as many as 55 of the type.

The aircraft, registration N854FD , was delivered to FedEx in February and made its first operational flight between London Stansted and Memphis on 28 February.

FedEx operates 12 777Fs, with another 18 on order from Boeing and 10 from airlines or lessors. In addition it has 15 options.

It is introducing the new aircraft to boost capacity on key routes, allowing it to introduce new routes and to enable it to redeploy its fleet of Boeing MD-11 freighters.

David Binks, senior vice-president operations, FedEx Express Europe, says that it has yet to decide on which routes the new 777s will operate, but they will be the "longer, higher demand routes".

He points to the recently introduced Paris-Hong Kong service, which FedEx had not operated before the arrival of two 777s at its Charles De Gaulle hub last year.

Its most recent quarterly accounts, filed on 17 December 2010, show financial commitments of $1.4 billion towards aircraft purchases. In addition to the 777s, FedEx is also replacing its fleet of ageing Boeing 727Fs with younger and larger 757 Freighters. The company has 55 on its fleet and it plans to take nine of the type this year, with another nine in 2012.

Binks says that this switch will help the company to meet its commitment to cutting CO2 emissions from aircraft by 20% by 2020.

(Dominic Perry - Flight International News)

FedEx and Boeing discuss possible 767-400F/ER

Boeing and FedEx Express are closely examining developing a new build freighter based on the 767-400ER, offering a production bridge to the recently awarded KC-46A tanker.

Company and industry sources confirm the discussions, which are geared toward providing a replacement to the 72 MD-10s currently in the logistics company's fleet.

Boeing declined to offer specific confirmation, saying "We are always in discussions with our customers about their future requirements. We don't share specifics of those discussions publicly."

FedEx declined to comment, saying "we do not discuss the nature or content of any private discussions we have with vendors or customers."

The size of a potential launch order is not clear, though on a one-to-one basis, the 58 MD-10-10F and 16 MD-10-30F aircraft in the company's fleet would provide fertile ground to launch such a program.

Additionally, development and production of a 767-400ERF is believed to be intended as a production bridge between the 49 outstanding 767 orders and the start of initial KC-46A tanker production, allowing the existing production system to continue uninterrupted.

Of the 49 outstanding 767 orders, there are 24 767-300ERs and 25 767-300Fs.

Boeing plans the first flight of a KC-46A in 2015, followed by achievement of initial operational capability with the US Air Force with 18 aircraft by 2017. The KC-X tanker contract, awarded to Boeing last week, worth as much as $35 billion will replace the USAF fleet of 179 KC-135 tanker aircraft.

The aircraft, equipped with winglets and a 787-derived flight deck will be assembled on the company's newly relocated lean 767 final assembly line inside the rear of its Everett, Washington factory.

Boeing Defense Systems CEO Dennis Muilenburg said he expected the KC-X award would spur commercial interest in the 767.

The passenger version of the 767-400ER, introduced in 2000, was a slow seller and was supplanted directly in the company's product line with the launch of the 787-8 and -9.

The airframer delivered 37 aircraft intended for commercial use, including 16 to then-Continental Airlines and 21 to Delta Air Lines from 2000 and 2002, with one additional VIP configured aircraft in January 2009.

The performance of a 767-400ERF is currently unclear, though FedEx was previously working closely with Boeing to develop a freighter conversion program for low-cycle 777-200 and -200ERs, also intended for MD-10 replacement.

A launch decision for the 777-200BCF/200ERBCF was expected in the first half of 2011, and a further delay could follow as FedEx evaluates the 767-400ERF.

FedEx announced earlier this week that it may eventually order up to 55 new build 777-200LRF aircraft and already has 12 in its fleet.

(Jon Ostrower - Flight Global News/Flight Blogger)

NetJets announces big order from Bombardier

NetJets Inc., announced on March 1, the completion of a purchase agreement with Bombardier Aerospace to add up to a combined 120 new Bombardier Global aircraft into the NetJets fleet, including the Global 5000*, Global Express XRS Vision*, Global 7000* and Global 8000* aircraft. The agreement includes a firm order from NetJets for 50 Global business jets valued at a retail price of $2.8 billion, with options for an additional 70 Global aircraft. The firm order comprises 30 Global 5000 Vision and Global Express XRS Vision aircraft, with deliveries scheduled to begin in the fourth quarter of 2012, as well as 20 firm orders for Bombardier’s newly-launched Global 7000 and Global 8000 jets, with deliveries of these aircraft to begin in 2017. At a total retail price exceeding $6.7B, this is the largest aircraft purchase agreement in the history of private aviation. Additional terms of the deal were not disclosed.

The Global aircraft fleet will be designed to NetJets’ specifications, including cabin technologies and features based on the requirements of NetJets Owners. This announcement is the next step in the execution of a 10-year fleet plan that will provide NetJets Owners with the fleet options, safety, service and reliability they have come to expect from the worldwide leader in private aviation.

According to NetJets Chairman and Chief Executive Officer David L. Sokol, “We are taking advantage of the current lull in the private aviation market to position the NetJets fleet for the future. Although we anticipate 2011 to be another difficult year, when Bombardier begins to make deliveries of these aircraft, we will be ready to satisfy the market’s demand.”

The decision to add the Global aircraft family to the NetJets fleet was based upon Owner research, a comprehensive view of flight patterns and service requirements, as well as NetJets’ unique insight into the continued global growth of business aviation. The demand for large cabin, long-range aircraft has remained steady through the recent economic downturn and will continue to grow as the new Global 7000 and Global 8000 aircraft with greater range become available in 2017, opening new global markets, such as the Pacific Rim. “No one knows more about the existing and forward-looking needs and operational requirements of private aircraft Owners than NetJets,” added NetJets Inc. President Jordan Hansell. “The Global aircraft family is ideally suited to our Owners’ needs for range, reliability, interior comfort and operating efficiency,” Hansell said. “These aircraft will be an excellent complement to our existing large cabin capabilities and overall fleet, which is unmatched in private aviation.”

“We are very proud to have NetJets, the worldwide leader in private aviation, select the Bombardier Global aircraft family,” said Steve Ridolfi, President, Bombardier Business Aircraft. “The Global aircraft family offers the ultimate in performance, cabin comfort and technology. We are especially happy that NetJets shares our excitement in the Global aircraft family strategy, including our recently-launched Global 7000 and Global 8000 jets.”

Today, NetJets operates a global fleet of more than 800 aircraft from several leading aircraft manufacturers, including: Cessna, Dassault, Gulfstream and Hawker-Beechcraft. Since 2000, NetJets has taken delivery of more than 600 aircraft from both domestic and foreign manufacturers, including 554 aircraft from U.S. manufacturers. In October 2010, NetJets announced a purchase agreement for up to 125 Embraer Phenom 300 Platinum Edition aircraft to add to the company’s light cabin fleet. In the next several years, NetJets will continue to be in the market for aircraft designed to meet the exacting standards of NetJets Owners.

The new Bombardier Global aircraft will be developed by Bombardier in cooperation with NetJets. Deliveries of the new aircraft have been scheduled to begin in late 2012 to align with NetJets’ operating costs, capital structure and projections of market demand, while allowing for regularly-scheduled life-cycle aircraft disposal.

(Business Wire News)

Mexicana remains grounded

The latest plan to put troubled airline Mexicana back in the skies has flopped after a tiny boutique investment firm interested in buying the company failed to inject the money needed to restart operations.

A business plan from relatively unknown PC Capital was chosen by a judge-appointed mediator in November as the best option to relaunch debt-ridden Mexicana. The pick was backed by Mexico's communications and labour ministries.

In a joint statement released on Wednesday, the ministries said they regretted PC Capital had not produced investors to restructure Mexicana and were suspending talks with the firm.

Mexicana de Aviacion was one of Mexico's two major airlines. It ceased operations in late August, swamped by its financial liabilities, grounding passengers in Mexico and abroad and leaving thousands of ground workers, pilots and flight attendants with no jobs. Its affiliated carriers, Link and Click, also stopped flying.

The three companies were granted creditor protection in Mexico and the United States but have unsuccessfully tried to restart operations as several investors approached them with aggressive staff-cutting plans, but with insufficient money to pay lagging salaries and severance.

The company needed to restructure at least USD$800 million in debt, according to the latest available information.

Mexicana is one of the oldest carriers in Latin America and its demise in 2010 led competitors to sharply increase ticket prices as demand for international routes were suddenly left unserved. The airline controlled many routes into the United States which were its most valuable assets.

Domestic airlines AeroMexico, Interjet and Volaris have increased market share in recent months.

(Reuters)

Australia's Virgin Blue to loose "Blue"

Virgin Blue will drop the “Blue” from its brand name, opting instead for a streamlined brand more in line with its push to lure business customers. But the airline's boss, former Qantas Executive GM John Borghetti, has stopped short of dumping the Virgin brand completely as the airline tries to redefine its place in the local market.

The airline’s brand consultant, Hans Hulsbosch, told The Australian that while the Virgin brand would continue to anchor the airline, Blue would no longer be part of it. The rebranding strategy is also expected to bring to an end several Virgin brand extensions in the region, including Pacific Blue, Polynesian Blue and V Australia.

Research has found that as Virgin moved to capture the business-class market dominated by Qantas, its brand was being held back by perceptions among business travelers that it was purely a budget airline.

The fragmentation of the brand is due to a 2000 agreement between Virgin Atlantic and Singapore Airlines, which prevents the Virgin brand being used outside Australia by Virgin Blue. However, the new branding may get around this issue.

(Geoffrey Thomas - ATWOnline News)

American Airlines announces third 777-300ER order

American Airlines on Tuesday lowered its full-year 2011 consolidated capacity growth projection to 3.3% from 4.3% previously, and also revealed that it ordered a third Boeing 777-300ER in Februaryin addition to two it announced in January for delivery in late 2012.

In a presentation delivered by VP-Corporate Development and Treasurer Beverly Goulet to the JP Morgan Global High Yield & Leveraged Finance Conference in Miami, available on AA's website, the airline said "current trends" necessitate a pullback on 2011 capacity plans. "We are seeing significant industry fare increase activity, which has accelerated recently as fuel prices have increased," Goulet stated in the presentation.

Despite concerns about fuel prices, Goulet referenced a strong performance this year. January/February AA mainline and consolidated passenger unit revenue increased approximately 4.5% -5% versus the year-ago period, reflecting continued yield improvement, she said.

But the airline did suffer about $50 million in reduced revenue in the first two months of 2011 owing to severe winter weather in the US. Goulet noted that AA canceled more than 8,000 flights for weather-related reasons in the first 45 days of 2011. "We experienced more weather-related flight cancellations in the first half of February than in any full month of February over the past 10 years," she stated.

(Aaron Karp - ATWOnline News)

Transaero Airlines plans return to Los Angeles

Russian carrier Transaero Airlines has applied to resume its long dormant service to Los Angeles International Airport (LAX/KLAX) planned to commence on July 14, 2011.

The carrier plans to operate 2 times weekly Moscow-Domodedovo (DME/UUDD) - (LAX/KLAX) service utilizing 777-200/ER aircraft and a possible upgage to the 747-400 if demand warrants.

Effective July 14, 2011.

Friday:
DME-LAX 1700-1815
LAX-DME 2045-1925

Sunday:
DME-LAX 1230-1345
LAX-DME 1615-1455

777-200 - F12C14Y280