SAS Finally Sells Major Spanair Stake

Jan 30, 2009

Darren Shannon darren_shannon@aviationweek.com

SAS Group has completed the sale of an 80.1% stake in its Spanish subsidiary Spanair for a nominal price of EUR1 (US$1.28), although the total book loss to the financially troubled Scandinavian airline group is valued at almost SEK4.9 billion, or roughly US$580 million. The definitive agreement was reached with a group of investors from the Spanish region of Catalonia, led by the Consorci de Turisme de Barcelona and Catalana d'Inciatives, SAS said in a Jan. 30 release. Under the deal, SAS will retain a 19.9% stake in Spanair, and as an "industrial partner" will assist in implementing a new strategic plan. This plan "aims at further strengthening Spanair's position in Spain and as the leading carrier in the Barcelona region." Spanair is currently headquartered on the island of Majorca with hubs in Barcelona and Madrid. The sale, although nominally for EUR1, will account for almost SEK4.9 billion of losses in SAS's fiscal 2008 financial results. Of this, SEK1.6 billion is from lost goodwill in Spanair accounted for in the first three quarter of fiscal 2008, SEK1.3 billion in lost earnings before tax, SEK914 million in restructuring costs, SEK712 million in lost capital, and SEK273 million in a write-down of deferred tax assets. Almost SEK2.2 billion of this will be accounted for in SAS's fourth quarter results, including the entire capital loss. SAS has also committed EUR50 million in potential funding for the new Spanair, and confirmed that it will pay EUR18 million worth of Spanair's loans. The purchase agreement also allows SAS to convert EUR20 million of its debt into Spanair equity, and retains EUR99 million of Spanair's debt to its previous owner. "We are confident that we have now secured a platform for Spanair as a Spanish-based company with Spanish majority owners," said SAS Group President and CEO Mats Jansson. "Due to unprecedented market conditions, the transaction will have a significant negative impact on the [fourth quarter] earnings of the SAS Group, but we believe that the new owners will secure the future of Spanair and develop the company to the benefit of Barcelona and the Barcelona region. We will retain an interest in Spanair as a minority shareholder to support its strategic plan." Separately, SAS confirmed today the completion of a management buyout of its 47.2% stake in Latvian carrier AirBaltic. That sale, which SAS in December said was "in line with our strategy not to maintain minority holdings in our airlines," raised about SEK175 million in capital for the Scandinavian airline group. On Jan. 14 SAS also announced it had divested its holding in Mallorca-based carrier AeBal, which operated five Boeing 717s for Spanair. SAS posted a net loss of SEK200 million because of that divestment. Photo: Marek Slusarczyk via Wkipedia source: www.aviationweek.com

Airbus 2008 commercial results

15 January 2009

In 2008 Airbus delivered a new record number of 483 aircraft, 30 more than in 2007. This number is made up of 386 A320 Family aircraft, 85 A330/A340 and 12 A380s. The order intake in a difficult year was remarkably strong. Overall, Airbus won 777 net orders (900 new gross orders) valued at US$100 billion at catalogue prices or 54 per cent of market share of all aircraft units over 100 seats. These include 472 A320 Family aircraft, 138 Long-Range aircraft (A330/A340) and nine A380s. The recently launched A350 XWB won 163 new firm orders increasing the total to 478 from 29 customers, making it the fastest selling aircraft in aviation history. At 2008 year end, Airbus had increased its backlog to a new record of 3,715 aircraft. These figures underline the continuing strong demand for Airbus products. Airbus’ turn-around programme, Power 8 again exceeded targets for the second year in a row, delivering cost savings of about 1.3 billion Euros. The savings are over half way towards the 2010 objective and Power 8+ will add a further 650 million euros in savings by 2012. In 2008 Airbus has also successfully completed its aerostructures strategy. The former Airbus site in Laupheim and Filton’s manufacturing unit were sold to leading partners. The German sites Nordenham, Varel and Augsburg were merged into Premium Aerotec and the French sites Meaulte and St. Nazaire Ville into Aerolia. The two companies became fully operational on January 1st, 2009. They are well positioned to become major players on the global market. These divestments and restructuring allow Airbus to concentrate on its core activities of aircraft architect and integrator, while capital investments, risks and benefits in developing new aircraft technologies are shared. “We all know that 2009 will be a very challenging year for the aeronautics industry. At Airbus we are prepared and confident: our leadership team is aligned, our workforce is motivated again, integration is progressing well and we have a solid financial basis, thanks to our improvement programs, our prudent cash and production management, and our strong orderbook,” said Tom Enders, Airbus President and CEO. Airbus is an EADS company.

Read the press release in French.

Read the press release in German.

Read the press release in Spanish. source: www.airbus.com/en/

Singapore Airlines takes delivery of first A330

21 January 2009

Singapore Airlines has added a new Airbus type to its fleet with the delivery of its first A330-300. Acquired under a lease agreement with Dublin-based AWAS, the aircraft was handed over to the airline at a ceremony in Toulouse today attended by Mak Swee Wah, Executive Vice President Operations and Services, Singapore Airlines, Frank Pray, President and Chief Executive Officer of AWAS and Tom Enders, President and Chief Executive Officer, Airbus. Powered by Rolls-Royce Trent 700 engines, the A330 fleet will be operated by the carrier on regional and medium haul routes, initially linking Singapore with destinations in Australia and Japan. The airline is configuring its A330s in a high comfort layout seating 285 passengers in two classes, with accommodation for 30 in Business Class and 255 in Economy. The A330 joins an existing Airbus fleet at Singapore Airlines that includes the double deck A380 and the ultra-long haul A340-500. The carrier has also selected the all-new A350 to meet future requirements in the mid-size widebody category, with the delivery of 20 aircraft on firm order due to begin in 2013. "The delivery of the A330s continues the ongoing process of renewal of our fleet," said Mak Swee Wah. "These aircraft also help fill capacity gaps in the regional and medium haul fleet prior to the delivery of the next generation of wide-body airplanes, such as the A350, in future years." "The delivery of these new aircraft also provides us the opportunity to enhance our product offering to customers on regional and medium haul routes. This reaffirms our commitment to constant innovation of the products and services we offer to customers, tailored around their needs on particular flights." Frank Pray, President & Chief Executive Officer at AWAS said: "This is the first of six A330 aircraft that AWAS will deliver to Singapore Airlines over the next year. This significant delivery marks the beginning of our goal to further diversify our aircraft portfolio and broaden the appeal to our airline customers. We are delighted to add Singapore Airlines, a premium global carrier, to our list of valued customers. "This delivery marks another milestone in the long partnership between Singapore Airlines and Airbus," said Tom Enders. "With the super-efficient A330 in its fleet the airline will be able to take full advantage of the aircraft's proven passenger appeal and low operating costs, while also benefiting from its high level of commonality with the A380 and A340." Tom Enders added: "Today's delivery also strengthens our relationship with AWAS, whose confidence in the A330 underscores the attractiveness of the aircraft within the financial community as a strong asset offering excellent returns on investment and high residual values." The twin engine A330 is one of the most widely used widebody aircraft in service today. To date, Airbus has won more than 1,000 orders for the various versions of the aircraft. More than 550 A330s have already been delivered and the aircraft is currently flying with over 70 airlines worldwide. Airbus is an EADS company.

Read the press release in French.

Read the press release in German.

Read the press release in Spanish. source: www.airbus.com/en/

Support For More F-22 Soars in Congress

Jan 20, 2009

By Amy Butler

Even before President-elect Barack Obama to takes office Jan. 20, U.S. lawmakers are making a push in letters addressed to him to secure the future of the stealthy F-22 production line in Marietta, Ga. Sens. Saxby Chambliss (R-GA) and Patty Murray (D-WA) sent a letter to Obama Jan. 16 requesting funding for production for the twin-engine fighter. Citing a flyaway cost reduction of 35 percent, the senators also say the end of the fighter’s production could further drain the U.S. economy in the midst of a recession. A decision is needed by early March to avoid gaps in the production line. Flyaway cost is now estimated at about $153 million. Lockheed Martin has seen approval to produce 187 fighters, but the Air Force continues to say it will require more of the aircraft to handle future threats such as the SA-20 and S-300/400 advanced air defense systems thought to be proliferating among potential adversaries. A similar letter is being circulated among House members and is said to have at least 150 signatures. Though departing Deputy Defense Secretary Gordon England has been cool on the idea of continued F-22 production, Defense Secretary Robert Gates - who is staying on under Obama - has signaled interest in at least considering additional buys. The senators, in their letter, claim the F-22 “provides over $12 billion of economic activity to the national economy.” Layoffs are likely if the production line doesn’t receive additional funding. The F-22 program is estimated to cost $64.5 billion, including the research and production phases. Photo: USAF source:www.aviationweek.com

Airbus Hopes To Slash Production Times

Jan 15, 2009

By Robert Wall

Airbus hopes to slash by 30% the time it will take to complete final assembly of its widebodies, beginning with production of the A350XWB. By first assembling the fuselage, Airbus can start working on the interior of the aircraft even as other efforts, such as wing join, continue at the same time, says A350 Program Director Didier Evrard. The approach will also lead to earlier power-on. Overall, Airbus expects the final assembly process for an A350 to take about 2.5 months. The airframer today broke ground on the final assembly building for the A350 in a 53,000-square-meter facility with another 21,000 square meters of office space. The event comes after Airbus completed Maingate 5 — or design freeze — of the aircraft late last year. “Now we are entering full speed into the industrial phase,” as well as detailed component design, Evrard says. The milestone review identified some issues that need to be sorted in the coming months, including making sure that all suppliers are up to speed on working with the combined digital mock-up Airbus is using to design the aircraft, Evrard says. However, the main issues, such as entry into service and production ramp-up, were not altered, he says. The A350-900 is due to enter service in mid-2013. The design freeze for the later versions, the -800 and -1000, will follow, but because the -900 is the centerpiece of the aircraft family, its Maingate 5 review was deemed particularly critical. Bregier says that the next phase of the program is also critical and that “we will face additional problems.” However, he voices confidence that there is a spirit of openness that will allow problems to be identified early and addressed, rather than being ignored, which has caused delays on other projects, such as the A380 and A400M. Airbus has secured 478 firm orders for the A350 from 29 customers. Photo: Airbus source: www.aviationweek.com

Frankfurt To Get Fourth Runway With Limits

Jan 16, 2009

Jens Flottau/Frankfurt jflottau@freenet.de

Frankfurt's international airport has been cleared for expansion by Hesse's Administrative Supreme Court. The airport can soon begin to build a fourth runway north of the current airport perimeter with an opening date of 2012. But Fraport and main operator Lufthansa also have to deal with the court's preliminary statement that the planned night flight restrictions are not far reaching enough. Frankfurt airport has been trying to expand for many years. Its growth rates have been below industry average because of the capacity limits. Lufthansa transferred a significant part of its long-haul growth to Munich, now its second hub. The fourth runway will only be used for landings to take into account noise abatement. It will nevertheless enable the airport to increase hourly movements from around 80 to over 120. Ground work is planned to begin as soon as early February, according to Fraport plans. The airport also wants to open a third main terminal on the South side of the airport in 2012. It is not clear yet who will use the facility, but Lufthansa is expected to remain in the main terminal 1. A final decision on the night curfew will be made separately. But the court indicated that it will likely not uphold the currently planned regulation. The regional government wanted to allow 17 movements between 11 p.m. and 5 a.m. in spite of the fact that in a previous agreement with communities it had promised a total ban on night flights. Lufthansa has applied for a total of 41 nightly movements, mainly for its subsidiary Lufthansa Cargo. The International Air Transport Association (IATA) said that while it welcomed the decision to expand, "severe restrictions on night flights constrain international cargo operations and will hurt economic growth. This should be reconsidered in a future court ruling." Photo: Fraport AG source: www.aviationweek.com

NTSB Probes US Airways Hudson Crash

Jan 15, 2009

Frances Fiorino fiorino@aviationweek.com

A National Transportation Safety Board Go Team is preparing to leave Washington National Airport at 6:30 p.m. for New York City, where a US Airways A320 crashed into the frigid waters of the Hudson River this afternoon. Flight 1549 departed New York LaGuardia's Runway 4 at 3:26 p.m. with 151 people onboard bound for Charlotte, N.C., according to FAA spokesperson Diane Spitaliere. The A320-210 (N106US) powered by two CFM56-5B4/P engines then suddenly "made a sharp left turn" and crashed west of Manhattan, in the vicinity of 50th St. New York City emergency rescue crews sped to the scene to help evacuate passengers from the aircraft, which was afloat in the river. New York, like much of the East Coast, today was in the icy clutches of an Arctic air mass that plunged outside air temperatures to below 20F. As is the case in the immediate aftermath of any accident, little or no accurate information is available about the cause of the crash or the number of fatalities or survivors. Local law enforcement told the FAA that everyone onboard was safe and accounted for, but the agency says it is unable to directly confirm the information. One passenger onboard Flight 1549 told local news media that he believed everyone was able to get out safely. Observers in office skyscrapers with the clear view of the crash site said the aircraft narrowly missed hitting buildings. Another eyewitness said it "appeared as though the plane was gliding. It came in nose up and it appeared as if the belly hit first with an enormous splash that covered the whole airplane. When the mist cleared, the plane was simply floating on the water. Within seconds the doors exploded open and a life raft inflated. Passengers walked onto the wings. Within two minutes ferry boats surrounded the plane and assisted the passengers." At about 4:25 p.m. one observer about a mile downriver watched an eerie sight: a partially submerged A320 floating down the river toward the southern tip of Manhattan. The FAA confirmed the aircraft was at that location, in shallow waters, at that time. US Airways has confirmed the details of the crash. According to Aviation Week's World Aerospace Database, the carrier operates 75 A320-230s and -210s out of a total 201 A320-family aircraft. The NTSB, which will lead the investigation, will recover the aircraft from the river for examination. The safety board is planning to provide an update on the investigation late evening Jan. 15 and will continue to release accurate accident details as they become available. Photo: AP/Wide World source: www.aviationweek.com