Company Watch - Boeing.

New York (AirGuideBusiness - Company Watch) Oct 16, 2011

The Air Force sees the KC-46 tanker as a key acquisition, but the potential for delays with the project has led some officials to consider the use of a fixed-price contract. Some oppose the fixed-price method because it could restrict DOD's ability to insist upon the precise specifications for the plane. On the other hand, Boeing would be responsible for $300 million in potential cost overruns on the $5.2 billion project. Oct 14, 2011

The Federal Aviation Administration has awarded $3.1 million to Boeing for its Green Skies Initiative 2. "The Greener Skies 2 initiative represents another critical milestone as Boeing helps to drive implementation of NextGen, the FAA's program to transform the national airspace system," said Neil Planzer of Boeing. Oct 12, 2011

Aeromexico will start direct flights between Mexico City and Caracas, as part of international expansion plan announced by the company earlier this year. The flights will be operated on the latest model of the Boeing 737 with a convenient schedule to enable all passengers to connect to the network of national and international destinations that the airline offers, including more than 40 cities within Mexico, 15 in the U.S. and Canada, three in Europe and two in Asia. Oct 12, 2011

Delta TechOps signed a five-year agreement with Air Canada to provide repair and overhaul services for the carrierOs fleet of 18 Pratt & Whitney PW4060 engines, powering nine Boeing 767s. Oct 10, 2011

Air China to Open Rotations Beijing-Okinawa. Air China will launch 2 weekly rotations between Beijing and Okinawausing 737-800, starting January 11, 2012. The new service will bring the number of Japanese cities served by Air China up to 8 and the number of round-trip direct flights a week between the two countries up to 260. The other 7 Japanese cities are Tokyo, Osaka, Nagoya, Fukuoka, Hiroshima, Sendai and Sapporo. Sitting on the coast of the Pacific Ocean, Okinawa is one of the world's most visited destinations that boasts beautiful sceneries, mild climate and rich cultural heritage. In addition to commercial operations, it also provides special flight services for the country's state leaders on official visit to other countries. By a fleet of 290 Airbus and Boeing aircraft (including 280 passenger airliners and 10 freighters), 1 training planes and 6business jets, we run 285routes - 72 international, 14 regional, and 199 domestic - serving a total of 137 cities, including 43 international, 4 regional and 93 domestic, in 30 countries and regions. We offer over 6,900 flights with over 1, 100,000 seats every week. Thanks to our admission to the Star Alliance, our route network, with Beijing as its hub, is able to place 1,160 destinations in 181 countries within our reach. Oct 11, 2011

Alaska Airlines Offers New Service Between Seattle-Kansas City, Mo., and San Jose-Palm Springs, Calif.. Alaska Airlines announced today it will offer nonstop daily service between Seattle and Kansas City, Mo., starting March 12, 2012, and new seasonal service between Palm Springs and San Jose, Calif., starting Feb. 17, 2012. The new nonstop California route will originate in Portland, Ore., and operate throughout the year except between June 3 and Oct. 4. To introduce the new routes, the airline is offering $99* one-way fares between Seattle and Kansas City and $89* one-way fares between San Jose and Palm Springs. Tickets must be purchased by Oct. 18, 2011, and can be used for travel through May 23, 2012. Members of Alaska Airlines' Mileage Plan can also earn double miles on the carrier's nonstop flights between Seattle and Kansas City from March 12 through April 25, 2012, and between San Jose and Palm Springs from Feb. 17 through March 27, 2012. Alaska Airlines will operate the new Seattle-Kansas City route with fuel-efficient Boeing 737 aircraft. The seasonal San Jose-Palm Springs route will be operated by Alaska's sister carrier, Horizon Air, with the fuel-efficient Bombardier Q400. Oct 11, 2011

American to expand Gogo Vision to 400 aircraft. American Airlines (AA) will expand deployment of Gogo Vision to approximately 400 aircraft by the end of 2012. The streaming video service, first launched in August, is available on 15 of its Boeing 767-200 aircraft. Gogo Vision offers a "growing list" of approximately 200 movies and TV shows, available for purchase onboard the aircraft. The content remains accessible for viewing after the customer has landedNmovies for 24 hr. and TV shows for 72 hr.Non a passenger's personal device. Gogo CMO Ash ElDifrawi called the video product a Ogame-changer for the industry.O Oct 11, 2011

American Airlines will cut capacity, reduce schedules due to sluggish economy, pilot retirees, and fuel prices. American Airlines says it is reducing capacity by roughly 3% and trimming back its late-fall and winter schedules, which could result in some employees being furloughed. American will retire up to 11 Boeing 757 aircraft in 2012 in response to an uncertain economy. Earlier this year the airline, the third-largest U.S. carrier, placed an order for 460 single-aisle jets worth up to $40 billion. American split the order between Boeing Co and its European rival, Airbus, breaking off an exclusive relationship with Boeing. The carrier is making the changes in response to high fuel prices, the weak economy and a high number of pilot retirements. "While our advance bookings are generally in line with last year, we are taking these additional steps in light of the uncertain economic environment, ongoing high fuel costs and to ensure we run a reliable schedule for our customers given additional pilot retirements we anticipate throughout the fourth quarter," said Virasb Vahidi, chief commercial officer at American. Those actions, combined with a planned board meeting of the Allied Pilots Association, suggest American might be close to signing a new contract with its pilots after five years of negotiation. APA says it will not adjust staffing rules to cope with the burden brought by the retirement unless it gets a new contract. American Airlines is being touted as the most likely big U.S. airline to go bankrupt, but the sum of its hardships -- high labor costs and weak cash flow -- are not expected to result in an imminent Chapter 11 filing. The company said it expects full-year mainline capacity to rise by 0.4 percent, from a year ago, and consolidated capacity to rise by about 1.2 percent. This represents an approximate 3 percent reduction in the company's capacity expectations versus American's initial guidance provided in January 2011. American has moved on a few occasions throughout the year to reduce its capacity as fuel prices moved upward and improvement in the broader economy failed to materialize. With these latest moves American expects full year capacity to be up about 0.4 percent year-over-year for mainline and consolidated capacity will be up approximately 1.2 percent. This represents an approximate 3 percent reduction in the company's capacity expectations versus American's initial guidance provided in January 2011. These reductions will modestly increase 2011 unit costs compared to those incorporated in the guidance provided on Sept. 21, 2011. In addition, compared to prior guidance, third quarter unit costs will be adversely impacted by quarter-end volatility in WTI crude oil prices and foreign exchange rates. WTI prices decreased, while jet fuel prices remained high, which will result in a $29 million non-cash fuel hedging ineffectiveness charge, which will be recorded in fuel expense. In addition, the U.S. dollar strengthened, which will drive a $22 million incremental charge as a result of foreign exchange volatility. In July, American announced the largest aircraft order in history by ordering 460 fuel-efficient jets from the Airbus A320 family and the Boeing 737 family, which is backed by $13 billion in manufacturer-committed financing. The 757s retiring next year are in anticipation of the new Airbus and Boeing deliveries that start in 2013. The retirements will result in maintenance and fuel cost savings beginning in 2012. The upcoming new deliveries are expected to pave the way for American to have the youngest and most fuel-efficient fleet among its U.S. airline peers within approximately five years. Oct 12, 2011

Arik Air orders two 747-8Is. Nigeria's Arik Air was revealed as the previously unidentified customer for two Boeing 747-8 Intercontinental aircraft. It joins Korean Air and Lufthansa as airlines with the passenger version of the 747-8 on firm order. The order is valued at $635 million at list prices. Boeing has sold 36 747-8Is including nine for VIP customers. In addition, Air China earlier this year announced its intention to order five 747-8Is. Lagos-based Arik carried just over 1 million passengers in the 2011 first half. It operates 120 flights daily. It said it plans to use the 747-8Is on "key long-haul routes." It currently operates A340-500 flights from Lagos...

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