Airlines

Rising oil prices reducing profitability: IATA

The International Air Transport Association (IATA) has announced a downgrade to its industry outlook for 2012 primarily due to rising oil prices. IATA expects airlines to turn a global profit of US$3 billion in 2012 for a 0.5% margin. This US$500 million downgrade from the December forecast is primarily driven by a rise in the expected average price of oil to US$115 per barrel, up from the previously forecast $US99. Several factors prevented a more significant downgrade: (1) the avoidance of a significant worsening of the Eurozone crisis, (2) improvement in the US economy, (3) cargo market...

AC pilots challenge federal legislation in court

Air Canada's pilots are asking the Ontario Superior Court of Justice to rule that federal legislation passed last week, forcing them to fly and accept a contract imposed through arbitration, contravenes the Canadian Charter of Rights and Freedoms. Captain Paul Strachan, president of the Air Canada Pilots Association (ACPA) said: "Our pilots are professionals with the freedom to associate and bargain collectively under the Canada Labour Code. The Harper government's bill clearly violates their rights and should be struck down by the courts." In its application to the court, ACPA also argues...

Air Transat redesigning its cabins

In celebration of its 25th anniversary, Air Transat is completely redesigning its cabins and to mark the occasion is launching a contest on its Facebook page. Its fans will have the opportunity to see the new cabin and perhaps win a trip to Europe. Air Transat's Facebook fans will be able to learn all about the new cabin through photos and information grouped together under four themes: Economy Class, Club Class, inflight entertainment and mood lighting ambiance. Fans will earn an extra chance to win a trip to Europe on the newly redesigned plane every time they click on one of the themes....

Aveos rejects Air Canada financing offer

Air Canada said that it's disappointed that Aveos Fleet Performance Inc.'s (Aveos) has decided to reject its offer of $15 million in emergency financing and instead permanently cease operations. Air Canada said that if accepted, the $15 million Debtor-in-Possession (DIP) financing could have assisted in stabilizing Aveos for the benefit of its employees and stakeholders and supported an orderly restructuring. This stabilization would have permitted Aveos to reopen certain of its facilities and recall certain of its employees, which would have in turn allowed Air Canada to provide additional...

Air costs choking opportunity: TIAC

Canada's outmoded aviation cost structure is choking off one of Canada's great economic opportunities - that's the message that Tourism Industry Association of Canada (TIAC) president and CEO David Goldstein delivered to the Senate Standing Committee on Transport and Communication last week. In his presentation, Goldstein reiterated the tourism industry's call for a full review of Canada's aviation cost structure, explaining that Canada's high taxes and fees serve as a disincentive for both domestic and international travel to and within Canada. "Canada is a 'fly-to' destination,"he said. "A...

Air Canada responds to Aveos closing

Air Canada has provided the following comments concerning Aveos Fleet Performance Inc. (Aveos), a separate and independently owned and managed supplier to Air Canada that provides maintenance, repair and overhaul (MRO) services to airlines, including Air Canada. Air Canada has been advised that Aveos has filed for insolvency protection under the Companies' Creditors Arrangement Act (CCAA). According to officials, these events at Aveos, while disappointing, have no impact on Air Canada's day-to-day aircraft maintenance and repair activities, referred to as "line maintenance."The airline's line...

Direct Air files for bankruptcy

Just days after stopping service and leaving travellers stranded, the parent company of discount airline Direct Air has filed for bankruptcy protection. Southern Sky Air & Tours LLC filed for Chapter 11 protection in Massachusetts on March 15. Direct Air, based in Myrtle Beach, S.C., stopped flying on March 12, with reports saying it couldn't pay its fuel...

Austrian receives capital for all-round renewal

Austrian Airlines has been given the green light from Frankfurt for its Work Program that was presented in January. Parent company Lufthansa will support Austrian Airlines with a conditions-based capital increase of up to 140 million euros. The funds will be used to prepare the harmonization of the medium-haul fleet and the consequent restructuring. As part of this, a transition of the flying staff of Austrian Airlines to the collective agreements of Tyrolean Airways might take place. Therefore, according to officials, nothing will change for customers: Austrian Airlines will continue to be...