Aircraft News - Europe.

Mar 5, 2007

Adria Airways, Bombardier

Adria Airways placed an order for two 86-seat Bombardier CRJ900s, becoming the aircraft's 12th customer. CEO Tadej Tufek said the CRJ900 will allow for greater capacity than its seven CRJ200s while replacing A320s on routes where "loads are insufficient to support the larger aircraft." Mar 1, 2007

Aegean Airlines, Airbus

Aegean Airlines will take delivery of its first three new Airbus A320s through March, increasing its fleet to 24 aircraft. The carrier's summer schedule features 150 daily flights to 15 Greek and 10 international destinations. In 2006 it carried 4.4 million passengers, an 11% increase from 2005. Feb 28, 2007

Airbus

Airbus is hoping to form industrial partnerships at its Filton, Meaulte and Nordenham plants to facilitate their development from metallic to composite design and manufacturing capability as part of its recently unveiled Power8 restructuring plan. Mar 2, 2007

Airbus

Airbus postpones freighter version of A380. Airbus said Thursday it is rescheduling its A380 freighter program, a move that surprised United Parcel Service. UPS is the plane's last remaining customer. Airbus did not release details on its new plan for the aircraft. Mar 2, 2007

Airbus

France pledges [euro]100 million to Airbus; workers protest Power8. The French government yesterday pledged [euro]100 million ($132 million) in aid to Airbus that will fund the development of carbon-fiber composite materials, but the announcement was overshadowed by labor unions' angry response to the Power8 restructuring plan unveiled Wednesday. Workers reportedly blocked the gate yesterday at Airbus's Varel plant, which is one of three facilities slated to be closed or sold under terms of the restructuring program. In addition, three other plants likely will be spun off, with investors taking partial or total control, and 10,000 employees are set to be trimmed. The IG Metall union boasted that the Varel and Laupheim plants in Germany were at a "standstill" yesterday as workers protested the cuts. "We don't accept the proposals made by the company," Jutta Blankau, an IG Metall official, said at a Hamburg press conference. "The fight for Airbus has just begun." Two French unions representing Airbus workers said they would stage a one-day strike next week. The French government, which owns a 15% stake in Airbus parent EADS, backed Power8 as "necessary," Prime Minister Dominique de Villepin said. The [euro]100 million in funding follows Airbus's stated goal, revealed during Wednesday's Power8 announcement, of shifting its focus from metallic to composite material production at the three plants likely to be spun off. Mar 2, 2007

Airbus

German Airbus unions prepare to challenge restructuring plans, after spontaneous walk-outs yesterday Unions at Airbus Deutschland are preparing to challenge the manufacturer's Power8 restructuring plan, following spontaneous walkouts at three German sites yesterday. Airbus chief executive Louis Gallois revealed EADS's long-awaited Power8 cost-saving plan, which includes 3,700 German job cuts and an uncertain future for three German sites. He also detailed plans to immediately set up a third A320 final assembly line in Germany. Mar 2, 2007

Airbus

German union IG Metall, which claims to represent all of Airbus's German workers, has responded angrily to the plans saying: "The fight for Airbus has only just begun." The union has vowed to fight site sales and job reductions and has called staff council meetings at all of the country's Airbus site today to discuss how best to proceed. It claims that the plans are a "wrong step" with "little light and many shadows". IG Metall district representative Jutta Blankau says: "Airbus should not be completely reorganised. The positive decisions on the A320 family should not cover up the prospect of uncertainty for thousands of employees." Mar 2, 2007

Airbus

Germany said it did not expect delays to deliveries of the future A400M military airlifter despite the industrial crisis at Airbus. The first 60 A400M aircraft ordered by the German army are due to be delivered and ready for use in 2010. The aircraft is seen as an integral part of European Union ambitions to develop the bloc's capacity as a global military player. Mar 2, 2007

Airbus

Airbus A350 development will cost [euro]10 billion ($13.21 billion) and partners will assume at least [euro]1.8 billion of nonrecurring costs and [euro]600 million in associated CAPEX. Final assembly and interior furnishing will be based in Toulouse in the same facilities where A330/A340 final assembly occurs. Mar 1, 2007

Airbus

Airbus details Power8: 10,000 job cuts, three plant sales/closures, more. Warning that its current structure is "unsustainable and unacceptable," Airbus yesterday unveiled details of its Power8 restructuring plan, which includes 10,000 job cuts, closing or selling three plants, spinning off three others, outsourcing half of A350 XWB production and streamlining its business to achieve a 16% increase in manufacturing productivity. "Our long-term future is at stake if we don't act now," EADS co-CEO and Airbus CEO Louis Gallois said. The plan aims to cut annual costs by [euro]2.1 billion ($2.77 billion) from 2010 and produce [euro]5 billion in cumulative savings by 2010. Mar 1, 2007

Airbus

Airbus job cuts spark protests among workers. Nearly 14,000 French workers on Wednesday protested Airbus' plan to shed jobs and sell up to six factories. When Airbus said it would shut two plants in Germany and seek a partner for another, workers at the affected plants retaliated by walking out in protest. Airbus hopes its restructuring plan will cut billions in costs and help it compete against Boeing Mar 1, 2007

Airbus

Airbus said that a third A320 family final assembly line will be established in Hamburg immediately "to cope with the steep production ramp-up currently underway" so production can continue when A320 assembly in Toulouse reaches its monthly capacity of 14 aircraft. Mar 1, 2007

Airbus

Airbus will cut 4,300 French jobs (including 1,100 from its headquarters staff in Toulouse), 3,700 German jobs, 1,600 in the UK and 400 in Spain. About 50% of the cuts will come from temporary or on-site subcontractors, "where reductions will begin immediately." It also imposed a freeze on new hires and executive salaries. It will attempt to trim 5,000 full-time employees through voluntary means, but said "other measures will have to be considered" if it does not achieve its target in 12-18 months. Plants in Saint Nazaire-Ville, Varel and Laupheim will be sold or closed. Workers in Varel and Nordenham represented by the IG Metall union walked off the job Yesterday, highlighting a key challenge Airbus faces in implementing the reorganization. Mar 1, 2007

Airbus

Airbus, with the A350 as a model, the company plans to develop future aircraft by outsourcing noncritical production while maintaining in-house control over "core business activities that are critical for the integrity and safety of the aircraft, or vital for technological and commercial differentiation." Gallois noted that A350 outsourcing will be double that of any previous Airbus program but will not be as extensive as on Boeing's 787. While final assembly will be based in Toulouse, he said the manufacturer aims to split the workshare of A350 development among France and Germany (35% each) as well as the UK (20%) and Spain (10%). UK Prime Minister Tony Blair said yesterday that his nation's Filton plant will be the center of composite work for "key wing components of the A350." Gallois said the focus of management must move away from nationalistic divides, which he said "are poison for Airbus." Mar 1, 2007

Airbus

In addition to the closures/sales, Airbus said it is "considering industrial partnerships at its plants in Filton, Meaulte and Nordenham," giving partial or total control of the facilities to investors. It already has received unsolicited proposals from three potential investors, it said, and aims to shift the plants' focus from metallic to composite design and production. Mar 1, 2007

Airbus

The Airbus A350 XWB will serve as the paradigm for Airbus's new operational philosophy, with 50% of its production to be outsourced as the company looks to develop a network of risk-sharing development partners as part of the Power8 restructuring plan unveiled yesterday (see story above). "We will turn Airbus into an extended enterprise," EADS co-CEO and Airbus CEO Louis Gallois explained. "The A350 XWB will draw on this new business model as we assign large work packages to Tier 1 suppliers in return for a better distribution of future investment, risks and opportunities with a consolidated supply base". Mar 1, 2007

Airbus

Airbus admitted it will report a negative EBIT for 2006 and "faces significant cash needs and deteriorating profits in the future, together with large investments needed for current and future programs." It said the weakness of the US dollar "has led to a 20% loss of competitiveness in only six years" compared to Boeing. Gallois said Airbus loses [euro]1 billion in profits for every 10-cent decline in the value of the dollar against the euro, adding, "We cannot continue to produce at our current euro costs and sell at Boeing's dollar prices." The company said it will take a [euro]680 million charge in the first quarter related to Power8. Mar 1, 2007

Airbus

Airbus will announce on Wednesday plans to cut 10,000 jobs in four European countries, but will force contractors to share the pain of cuts which could provoke union unrest, industry sources said. The plans, which had provoked a split between France and Germany over the distribution of job losses, are part of a restructuring deal discussed last Friday by German and French leaders, who agreed to share both job losses and new technology. Feb 28, 2007

Airbus

Airbus EADS added that the plan will lead to EBIT contributions of EUR2.1 billion euros (USD$2.77 billion) in 2010 and additional EUR5 billion (USD$6.6 billion) of cumulative cash flow from 2007 to 2010. The leaders of Germany and France said on Friday a looming restructuring of Airbus should strike a balance in jobs and technological know-how between the countries. At a summit north of Berlin, Chancellor Angela Merkel and French President Jacques Chirac sought to present a united front amid a row between Airbus shareholders over work share on the firm's new A350 mid-sized plane. The Franco-German dispute has delayed a restructuring plan expected to lead to some 10,000 job cuts in both countries at Airbus. Feb 26, 2007

Airbus

Airbus has come up with plans for an estimated 10,000 job cuts and possible sales of factories to overcome delays to its A380 superjumbo and a currency disadvantage against rival Boeing, but Franco-German disagreements delayed a final deal. French President Jacques Chirac and German Chancellor Angela Merkel said on Friday that the two countries should share both the consequences of restructuring and the latest technology. French business leaders have strongly criticized the country's 35 hour work week, saying it has curbed growth and failed to stimulate employment as its authors had hoped. Conservative candidate Nicolas Sarkozy says the 35 hour week should be retained but viewed as a minimum, not a maximum, with people free to work more or longer if they want. According to the Focus report, Airbus is also considering selling two French plants, Saint Nazaire and Meaulte, and two German plants, Nordenham and Varel, to cut costs. It remains unclear whether the company would remain a minority shareholder or sell them completely, Focus said. The magazine said the A320 single-aisle aircraft assembly would be moved from Toulouse in France to Hamburg in Germany in exchange for Germany dropping demands to assemble the key central section of the future wide-bodied A350. Airbus is also looking to raise money from sale-and-leaseback programs, selling property and land to investors and leasing them back, Focus said. Feb 26, 2007

Airbus

Airbus is considering extending its workweek to 40 hours from 35 hours without compensation as part of the European planemaker's restructuring plans, a German magazine reported. The reported proposal is likely to ring alarm bells in France, where a 35 hour work week was introduced by a Socialist government in 2000 and remains a potentially divisive issue ahead of April-June presidential and legislative elections. EADS unit Airbus declined comment and union representatives could not be reached. Feb 26, 2007

Airbus

As Airbus decides where to cut jobs, it is also considering where work on new jets will be located. Germany does not want to give France the bulk of these new projects for fear it could fall behind in coveted highly-skilled jobs. Airbus chief Louis Gallois has adapted his original plans to try to meet German demands for a bigger share of the jobs from the next generation of Airbus jets, a union source said on Thursday. The restructuring is contentious in both countries, where 40,000 of Airbus's 55,000 employees work in 11 factories. Feb 26, 2007

Airbus

European aerospace group Airbus EADS said its board had approved the Power8 restructuring plan for Airbus, adding that workers' representatives would be informed of the details on February 28. Earlier this month the EADS board failed to reach agreement on Airbus plans for job cuts across four countries and work sharing for the new A350. EADS said it would inform the relevant employee representation bodies before releasing details. In a statement from Amsterdam, EADS said its board of directors "fully supported the EADS and Airbus management in realizing the plan. Feb 26, 2007

Airbus

Extensive conversation on Power8 led to "a very common position," Merkel said at a news conference following the meeting with Chirac. "The competitiveness of the company is the top priority for us," she said, adding that cuts would be "shared equally between our countries." The compromise put forward by Gallois reportedly includes equal site closures in France and Germany but still would base A350 XWB production in France. German officials had objected to that work being centered in France but apparently have softened their stance since factory closings will be distributed equally. In fact, in contrast to the Power8 proposal that drew fire last week , the revised plan calls for more job cuts in France than in Germany, according to Chirac. "I believe that France is getting penalized a bit more than Germany as far as reorganization of employment is concerned based on what I am being told," he said. He added that job cuts should be accompanied by "compensation" for dismissed workers. Feb 26, 2007

Airbus

Merkel-Chirac summit appears to broker Power8 compromise. German Chancellor Angela Merkel and French President Jacques Chirac jointly backed Airbus's Power8 restructuring plan Friday as a revised proposal put forward by EADS co-CEO and Airbus CEO Louis Gallois appeared to ease German opposition to the cost-cutting program, details of which could be revealed as soon as this week and likely no later than next week. The two heads of state issued a joint statement following a summit meeting in Germany emphasizing that they "stand behind Airbus." They added that the manufacturer must take into account "effects on jobs, technology and the balance of capabilities in the affected states" as it implements the cuts. Feb 26, 2007

Airbus, Finmeccanica

Finmeccanica chief executive Pier Francesco Guarguaglini has ruled out interest in partnering with Airbus to take over any of the Toulouse-based manufacturer's sites, but left open interest in the manufacturer's A350 programme. In comments to Italian daily Il Sole 24 Ore, confirmed by the company, Guarguaglini says the Italian company is ready to participate in the Airbus A350, including possible investments, "if we find the A350 and its business plan convincing," Guarguaglini says. He adds the company is talking to Airbus about this. Guarguaglini emphasises that Finnmeccanica is not interested in taking over any Airbus plants. The company will not be taking on a stake in EADS either, he says, because putting the two businesses together would be too complicated. "Obviously [Airbus] will have to guarantee some orders to whoever buys [the plants]", and this could reduce the potential for other suppliers including Finmeccanica. Finmeccanica, as well as GKN in the UK has been touted as possible partners for Airbus. Mar 2, 2007

AiRUnion, Boeing, Tupolev

AiRUnion[sup.1]s is aiming for a mix of RRJ95s, Boeing 737 Classics/NGs, 757s, 767s and Tu-204s. It currently operates 85 aircraft including 17 leased Boeing jets. Feb 26, 2007

Austrian Airlines, Foller

Austrian Airlines is looking to send maintenance east as well. CFO Thomas Kleibl told this website an Foller F70/F100 "competence center" will be established in Bratislava, employing 50. "We are in talks with partners, like Honeywell, to bring in more maintenance work from third-party carriers," he said. AAG is one of the largest Fokker operators in Europe with nine F70s and 12 F100s. It will add two Foller F100s this year and two in 2008. Feb 27, 2007

Heli Air, Air Sofia, Bright Aviation Services,Scorpion Air and Vega airlines

Bulgaria bans five freight carriers in bid to avoid EU aviation safety blacklist. Bulgarian authorities have withdrawn permission for five freight carriers to operate to the European Union and a number of other allied states, in a bid to avoid its airlines being included on the EuropeanCommission's 'blacklist'. The Bulgarian ministry of transport has taken action against Vega Airlines, Heli Air, Air Sofia, Bright Aviation Services and Scorpion Air. It says that, as a result of the 21 February decision, the European Commission will not place any Bulgarian carrier - either passenger or cargo - on the blacklist, a revised version of which is due to be issued in a few days' time. All five cargo companies facing the restrictions are based in the Bulgarian capital Sofia and possess fleets primarily comprising Soviet-era aircraft. Feb 26, 2007

Heli Air, Air Sofia, Bright Aviation Services,Scorpion Air and Vega airlines

Vega Airlines, Air Sofia and Bright Aviation Services operate Antonov An-12s. Scorpion Air and Heli Air also use Antonov turboprops as well as helicopters including Mil Mi-8s. They are being prohibited from operating to the European Union member states as well as to Norway, Iceland and Switzerland. Bulgaria joined the European Union at the beginning of this year but regulators have restricted access to the internal European market as a result of concerns about the country's aviation safety oversight. The transport ministry says that European authorities will continue to monitor Bulgarian control over the aviation system. Feb 26, 2007

Icelandair, SAS Ground Services

Icelandair chose SAS Ground Services as its new provider at Paris Charles de Gaulle. Mar 1, 2007

LOT Polish Airlines, Embraer

LOT Polish Airlines leased two 82-seat Embraer E-175s from GECAS. They will enter service in the second half of this month, at which point LOT will operate 16 E-170s/-175s. Mar 2, 2007

LTU German Airlines, Airbus

LTU German Airlines unveils new livery, investor talks continue. German leisure carrier LTU has unveiled a new livery to coincide with delivery of its latest Airbus A330-200 and signifying its development beyond pure charter operations. LTU's latest A330-200, which will take its long-haul fleet up to a dozen, enters service in May and will debut LTU's new livery. While retaining red and white as its principle colours, the new design scaps the current red colouring across the upper fuselage. The tail remains red and this slopes to and runs along the underside of the fuselage. A silver strip will separate the red and white portions of the fuselage. Mar 2, 2007

MTU Aero Engines, JetBlue

MTU Aero Engines and JetBlue signed an agreement to extend the terms of a contract concluded in 2005 from 10 to 15 years, bringing the deal's overall value to [euro]2.4 billion ($3.16 billion). The original contract provided for nearly all 400 of the LCC's V2500s to visit MTU's shop at Langenhagen for maintenance. Under the extension, 116 IAE engines scheduled to be delivered to the airline from 2009 will be built to the upgraded SelectOne standard. JetBlue is the world's largest V2500 operator and IAE's principal customer. MTU is a shareholder. The maintenance order backlog for Germany's leading engine manufacturer now stands at more than [euro]5 billion. Feb 28, 2007

Virgin Atlantic Airways, Airbus

Virgin Atlantic Airways reached agreement with Airbus to reschedule delivery of the remaining six A340-600s it has on order, the carrier confirmed. In August 2004 it placed an order for an additional 13 -600s with options for a further 13. "We were due to take delivery of another six A340-600s over the next two years, but we have stretched this out over the next four years," Communications Director Paul Charles said. "We have opted for a more balanced approach to our growth." The airline now is planning on average a 10% growth in capacity for the coming years instead of 20%. He also said it remains committed to the A380, of which it has six on order. "We still believe it's a great aircraft and are looking forward to see it enter service with our [49%] shareholder Singapore Airlines," he said. Delivery of Virgin Atlantic's A380s has been pushed back to 2013 from the originally scheduled 2009. Feb 26, 2007 03/05/2007

Z

Editor: Aram Gesar, eMail: [e-mail] For Air Transport & Travel Business Experts contact eMail: [e-mail]

For more global news, reviews, features and analysis, please subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news

To Advertise: [e-mail]

Copyright [c] 2007 Air Travel Media / Pyramid Media Group. All rights reserved.

Feb 26, 2007