HONG KONG AIRLINES SET FOR EXPANSION
Hong Kong Airlines, part of the HNA Group, has announced its intention to acquire up to 38 aircraft from Boeing to significantly expand its operations. The carrier revealed at the Asian Aerospace trade show in Hong Kong this week that it was in talks with the US manufacturer to formalise a Memorandum of Understanding (MoU) for six 777F freighters, 30 787-9s and two VIP-configured 787-8s. At the same announcement it revealed MoUs for five G450s and G550 business jets from Gulfstream and five Falcon 7Xs from Dassault Aviation as it expands its business aviation units in Hong Kong and China. Speaking at the event, Adam Tan, Director, HNA Group and Chairman, HNA Industrial Holding confirmed that the fleet growth was part of a business plan to position the airline as a much stronger player in the Hong Kong market. This August it will account for just three per cent of the weekly flights from Hong Kong International but has aggressive expansion plans to establish a hub there with links to a range of destinations not currently served by rivals Cathay Pacific Airways and Dragonair. During the Northern Summer schedules, Hong Kong Airlines will offer flights to the Chinese cities of Beijing, Changsha, Haikou, Hangzhou, Harbin, Kunming, Nanning and Sanya; Taichung in west-central Taiwan; Okinawa, Osaka Kansai International and Sapporo in Japan and Manila in the Philippines. However, it will not simply target the Asian market, according to sources, but will add flights to Europe and North America with France, Canada and the US key target markets.
RIGA INTERNATIONAL AIRPORT SIGNS UPGRADE CONTRACT
In order to upgrade the runway and its infrastructure, Riga International Airport a signed a formal design agreement for the development of the project. The airport is planning to renovate the runway surface and strengthen the strip, upgrade the runway lighting system, build additional taxiways and reconstruct the apron. The plans also include building of aircraft anti-icing platforms, reconstruction of the storm water and underground drainage system, building of a new hangar for washing of the airfield service vehicles and another one for collection of waste. “This project is of vital importance to the airport for several reasons: first, the runway will have to be certified in 2013 and secondly, we must increase the runway capacity as much as possible by constructing rapid exit taxiways,” explained Arnis Luhse, Chairman of the Board, Riga International Airport. The design work on the project is due for completion by November this year with work due to take place during 2012 and 2013. It is estimated to cost around 66.9 million lats ($131 million), of which 41.1 million lats ($80.5 million) will be co-financed from European Union funds.
ALTA MEMBERS REPORT STRONG START TO YEAR
The Latin American and Caribbean Air Transport Association (ALTA) announced that its member airlines carried 12.4 million passengers in January, up 3.5 per cent from the previous year. In addition traffic (RPK) grew 2.8 per cent and capacity (ASK) increased 1.0 per cent. The load factor climbed to 78.8 per cent, a 1.4 percentage points increase over January 2010. Freight tonne kilometers increased 5.9 per cent in the month, reaching 306,680 FTKs.
A NEW CARGO TERMINAL FOR MADRID BARAJAS
Iberia's chairman Antonio Vázquez, and the head of Spain's national airport and traffic control authority Aena, Juan Ignacio Lema, this week signed an agreement to build a new Iberia cargo terminal at Madrid Barajas Airport. Iberia will spend €60 million and Aena €40 million to build the new facility, which will provide capacity for the future freight growth and achieve the goal of positioning Madrid Barajas as Europe's largest hub for air cargo to and from Latin America. The 419,792 sq ft (39,000m2) terminal will stand on a 968,751 sq ft (92,000m2) site between Runways 15 and 33 and near the apron of the T4 satellite building that is used for most Latin American flights. This will substantially reduce aircraft loading and unloading times, while boosting the efficiency and quality of air cargo handling services at the airport. Last year Madrid Barajas’ existing cargo terminal handled more that 373,000 tonnes of freight, a 23.3 per cent increase from the previous year. Of this total, Iberia shipped more than 175,000 tonnes. The new terminal is expected to lead to strong growth in Iberia's cargo handling business in the 2015 - 2030 period, tripling this figure to some 650,000 tonnes annually by 2030.
THE FLIGHT PATH TO A SINGLE EUROPEAN SKY
Air Traffic Control organisations across Europe have signed a tentative agreement signalling the route towards single, unified airspace which could cut delays and costs to airlines. The Single European Sky will reform the European air traffic management architecture so that aircraft can pass it through it quicker, reducing cost, delays and fuel consumption. Currently, each country controls its own airspace with different, pre-determined routes across the countries. This means aircraft can find themselves having to zig-zag across Europe to avoid, for example military airspace. In some cases they burn around ten per cent more fuel than they need to – which is very costly in the current climate. The EU estimates that air traffic could double by 2020, requiring increased capacity in the air and on the ground with heightened safety rules in place to ensure traffic can grow accordingly. The Memorandum of Understanding, signed by controller organisations including the IAA, NATS, Naviair and LFV, will look at boosting the improvements of combined airspace. Linking technology and systems across Europe and ultimately globally through system wide connectivity will mean that complex air navigation will be easier to manage.
ILFC BOOSTS BUSINESS WITH BUMPER AIRCRAFT ORDER
Aircraft lessors are often viewed by analysts as excellent barometers for the aviation industry and when they place bumper orders for new equipment it suggests that good-times may be around the corner. In the past year more orders have been placed by leasing organisations with them dominating the order announcements at last year’s Farnborough Air Show. International Lease Finance Corporation (ILFC), one of the largest lessors in the world, has been rather quiet over recent years due to the financial problems at its parent company AIG, but it certainly showed at this week’s Asian Aerospace show in Hong Kong that it remains a major force by placing orders for up to 133 new aircraft. It signed a firm deal with Boeing for 33 737-800s and a Memorandum of Understanding (MoU) with Airbus for 100 A320neo Family aircraft, although the latter deal also includes the cancellation of orders for ten A380s. These follow a year in which ILFC regained access to substantial liquidity with initiatives that led to $14 billion in financings and aircraft sales followed by a $2 billion revolving unsecured line of credit from eleven banks. For the year ended December 31, 2010, the company recorded strong revenues and cash flow from operations, positioning ILFC for future growth. The purchase agreement with Boeing will secure near-term access to the popular 737-800 aircraft with deliveries beginning in 2012. The MoU with Airbus includes 75 A320neo and 25 A321neo, 60 of which will be powered by the Pratt & Whitney PurePower PW1100G engine with deliveries beginning in 2016. “These orders rebalance ILFC’s orderbook and allow us to continue to offer the most technologically advanced single-aisle aircraft to our customers,” said Henri Courpron, Chief Executive Officer, ILFC.
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