Virgin Atlantic Names New Chief Executive

Virgin Atlantic has confirmed American Airlines' executive Craig Kreeger as new chief executive to replace Steve Ridgway, who is due to depart in March.

Kreeger will join Virgin Atlantic on February 1 after 27 years at American Airlines, where he worked closely with the US carrier's transatlantic partner and Virgin's major rival British Airways.

Virgin's new chief executive spent six years based in London up to last year as American's senior vice-president for international operations.

He was appointed senior 'customer' vice-president at American last year.

Ridgway said: "I'm very pleased to welcome Craig Kreeger to Virgin Atlantic as the new CEO. He will be taking over at a time when the airline enters a new phase - with the Delta deal to implement [and] the commencement of short-haul competition for BA on UK domestic routes."

Kreeger said: "I am delighted to be taking on the role of Virgin Atlantic’s chief executive. It is a great airline renowned for its customer service and innovation.

Italian holding company IMMSI said on Monday no talks were under way for the sale of its 7.08 percent stake in Alitalia.

"IMMSI, in confirming the comments released by Air France, denies the existence of any talks in course with the aim of selling (the stake)," IMMSI said in a statement.

Italian newspaper Il Messaggero reported on Sunday that Air France was in advanced talks to buy the whole of Alitalia.

"There is nothing. There are no negotiations," Air France CEO Alexandre de Juniac told reporters earlier on Monday.

Air France-KLM is in "advanced" talks to take control of Italy's Alitalia by the summer, Rome's Messaggero newspaper reported on Sunday without citing its sources.

Alitalia is owned by CAI, a consortium of investors that bought the then-bankrupt airline in 2008. CAI is already partly owned by Air France-KLM. Alitalia's shareholders can exercise options to trade their shares when a lock-up period ends on January 12.

In May, Air France said it would probably wait until at least 2014 before using its option to take control of Alitalia, in which it has held 25 percent since January 2009.

Air France-KLM has offered shareholders a 20 percent premium on what they paid for the airline in 2008, the newspaper said, probably in Air France-KLM shares. CAI paid a little more than EUR€1 billion to take over Alitalia five years ago.

How Boeing Beat Airbus In 2012

Boeing said it booked 1,203 net orders and delivered 601 new jets in 2012, a performance that likely puts it ahead of rival Airbus for the prize of being the world's largest plane maker.

Boeing's tally of 601 planes delivered to customers puts it ahead of Airbus's stated target of 580 deliveries for the year.

Airbus figures won't be announced until January 17, but Boeing's tally makes it virtually certain the company will regain the crown as the world's largest plane maker, a title its rival has held for a decade.

Airbus won the most new orders over the last two years, a period when both companies introduced new versions of their top-selling single-aisle planes, the Airbus A320neo and the Boeing 737 MAX.

Airbus has so far announced 721 gross orders for 2012, bringing its two-year total to 2,329. That tops Boeing's count of 2,260 for the two years, based on 1,339 gross orders in 2012 and 921 in 2011.

Jet Airways Confirms Stake Sale Talks With Etihad

Jet Airways said on Thursday that it was in talks with Abu Dhabi's Etihad Airways for a potential stake sale in the Indian carrier, although terms have not been agreed yet.

The statement was the first confirmation of a potential deal by either side, a day after an Indian government source said the Gulf carrier could pay up to USD$330 million for a 24 percent stake in Jet.

Jet shares rose 6.4 percent on Thursday. The stock has risen 65 percent since September, when India relaxed rules allowing foreign airlines to buy up to a 49 percent stake in local carriers.

"Various structures are being explored by the legal and commercial teams," Jet said in a statement to the Bombay Stock Exchange, adding any structure would comply with Indian rules.

The founder of Jet Airways is likely to convert shares owned by its holding company into his personal stake to comply with foreign investment regulations, a government source had said.

Tail Winds, the Isle of Man-based investment vehicle of Jet founder Naresh Goyal, currently holds 79.99 percent of Jet Airways.

Etihad declined comment.

Etihad and Jet already have a code-sharing agreement, and a tie-up could make Jet a more formidable competitor to state-owned Air India, while strengthening Etihad's position against Dubai-based Emirates, which carries a big chunk of the traffic between India and the Middle East.

A deal between Jet and Etihad could close the door on grounded rival Kingfisher Airlines, which is in desperate need of cash to fly again and was in talks with Etihad to sell a stake.

Etihad's decision to buy into Jet may be announced in 10 days, the same source quoted earlier said on Wednesday.

Etihad, which expanded globally through stake purchases in Air Berlin and Virgin Australia, is looking to extend its geographical reach to India and other Asian markets, its chief executive told reporters in October.

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Iberia Pilots Agree To Job Cuts Talks

Iberia has reached a preliminary agreement with pilots over plans to restructure the loss-making airline by laying off staff and cutting salaries.

However, the agreement to sit down to talks does not necessarily mean that the union will support the restructuring. The airline's unions, which have been demanding a growth plan from Iberia, have until January 31 to support the airline's plans.

"We reached the same agreement with the pilots as we did with the other unions two weeks ago, which is a preliminary agreement for talks," a spokesman for the company said.

A union source said the pilots signed the agreement to kick off negotiations and that talks over the nature of job cuts would begin on Thursday.

Iberia averted strike action over the Christmas holidays through talks with its ground and cabin crews over the shape of the restructuring, but until now the pilots had been less willing to sit at the negotiating table.

Iberia plans to cut about 4,500 jobs - a quarter of the Spanish carrier's workforce - and cut salaries to become more competitive.

Qatar Airways Files Claim Over New Airport

Qatar Airways said it was filing a USD$600 million legal claim against a contractor for a delay in opening a new airport in Doha.

Lindner Depa Interiors, a German-Dubai joint venture, holds a USD$250 million contract to build 19 airport lounges by the middle of 2012, Qatar Airways said in a statement on Saturday.

In a statement later in the day, LDI said it had not received a legal claim from Qatar Airways and described the carrier's allegations as "false and misleading".

It said it was not able to meet its original completion deadline because it was denied full access to the project site for the first nine months of a 16-month contract.

American Air Pilots Approve MOU On Merger

Union leaders who represent American Airlines' pilots approved a tentative agreement on Saturday for how the airline could merge with US Airways.

The board of the Allied Pilots Association (APA) said it voted 11-5 to approve a memorandum of understanding that, with approval of other parties, "would serve as a framework for an agreement" if the airlines merge.

The union declined to provide details of the agreement, citing a non-disclosure agreement it signed as a party to the merger talks.

American, which is restructuring in bankruptcy court, is in talks to merge with US Airways. American could merge as part of the structuring process or exit bankruptcy and then decide whether to merge. A merger could be announced as soon as January 9, when AMR's board is due to meet.

A framework for the union agreements are a crucial part of the merger discussions. The APA said it is in talks with officials from American's parent, AMR, US Airways and the US Airline Pilots Association, which represents US Airways pilots. Also included in the talks is the Unsecured Creditors Committee, which represents creditors of American.

Alitalia Denies Tie-up With Italian Rail Company

Alitalia, still reeling from financial troubles in 2008, denied media speculation about a possible tie-up with Italian state rail operator Ferrovie dello Stato.

"Since rumours continue to appear on the front pages of newspapers, we are forced to utterly and strongly deny any idea of an agreement between Alitalia and Ferrovie dello Stato," Alitalia said in a statement. "No such plan is being considered."

On Sunday Italian newspaper Corriere della Sera reported that Ferrovie dello Stato was considering investing in Alitalia as part of an eventual turnaround plan that would involve an industrial partnership with Air France-KLM.

Alitalia returned to profit in the third quarter after reporting losses in the first half, but it is losing ground to high-speed train operators such as Ferrovie dello Stato and private newcomer Nuovo Trasporto Viaggiatori.

Kingfisher Files Revival Plan With Air Regulator

Grounded Indian carrier Kingfisher Airlines has filed a revival plan with the country's airline regulator, a senior government official said, in an effort to renew its operating license before it expires at the end of the year.

Kingfisher, which has not flown since October, has estimated debts of USD$2.5 billion and owes money to banks, airports, tax authorities, plane leasing companies, and its staff.

The Directorate General of Civil Aviation, India's aviation regulator, which suspended Kingfisher's license to fly after months of cancelledflights and staff walkouts, has demanded a turnaround plan before the airline is permitted to fly again.

The DGCA wants all creditors to agree to the revival plan submitted by Kingfisher, and has not decided on its course of action, said a government official who has direct knowledge Of the matter, speaking on condition of anonymity.

Portugal Postpones TAP Airline Sale

Portugal said on Thursday it would postpone its long-awaited sale of debt-laden airline TAP after rejecting the sole bid by Colombian-Brazilian entrepreneur German Efromovich, but it still plans to beat its asset disposal target.

The TAP sale formed part of a privatisation plan required by Portugal's EUR€78 billion (USD$103 billion) European Union and International Monetary Fund bailout.

However, Efromovich's offer for the flag carrier, which is weighed down by an estimated EUR€1.2 billion of debt, would have only reaped EUR€35 million for the state coffers.

"This decision does not compromise the government's privatisation programme, which is still expected to surpass the target in terms of proceeds," Treasury Secretary Maria Luis Albuquerque told a briefing.

The TAP sale would be relaunched "at an opportune moment", she said.

Delta Buys Virgin Stake To Boost London Access

Delta Air Lines agreed to buy a 49 percent stake in Virgin Atlantic, creating a joint venture that would expand Delta's access to London's Heathrow Airport and increase competition in thelucrative transatlantic market.

The partnership would let both carriers offer more flights at Heathrow, Europe's busiest airport, where landing-slot constraints have limited their growth. It also gives Delta the ability to attract corporate passengers as it competes with United and American airlines.

Delta and Virgin said their agreement would generate new revenue and leverage Virgin's strong luxury brand. The venture also will be "very positive and accretive for our long-term partners... KLM, Air France and Alitalia," Delta chief executive Richard Anderson said, referring to the European airlines with which Delta already has partnerships.

Lufthansa Cabin Staff Accept Pay Deal

A fierce wage dispute at German carrier Lufthansa has finally come to an end as cabin crews agreed to a wage deal brokered by an arbiter. The flight attendants accepted a lower pay raise in exchange for job guarantees.

In a ballot on Tuesday, some 85 percent of the participating Lufthansa cabin staff had voted in favor of 3.95 percent higher wages for the next two years, the UfO labor union announced Tuesday.

The pay hike falls short of a 5 percent increase originally demanded by the UfO union, which represents most of the Lufthansa's 18,000 flight attendants, but includes a non-layoff guarantee for cabin staff until the end of 2014.

Iberia Unions Call Off December Strike

Unions at Iberia on Monday called off a six-day strike planned for December, despite their continuing disagreement with the management of the company over massive job cuts.

"We've decided to call off the strike because of the dates and because we don't want to harm passengers when Iberia bears an exclusive responsibility," a spokesman for the USO (Union Sindical Obrera) union told reporters.

"Until January, depending on whether disagreements persist, we will study new actions."

The strikes had been set for December14 and the five days from December 17 to 21, in a key period for holiday travel.

Germanwings to take over nearly 30 Lufthansa A320s

Lufthansa will move 52 aircraft to its low-cost subsidiary Germanwings for the planned transferral of its decentralised European network next year.

Starting 1 July, Germanwings will gradually take control of Lufthansa's continental routes outside its main hubs in Frankfurt and Munich over a two-year transitioning period.

The equipment transfer will cover 29 Airbus A319s and A320s from Lufthansa's mainline fleet and 23 Bombardier CRJ 900 regional jets. The latter are - and will continue to be - operated by Lufthansa's regional subsidiary Eurowings, however.

 

This would be around 20% of Lufthansa's passenger volume, while Germanwings is expected to generate around €1.8 billion ($2.3 billion) in revenues, roughly 10% of the mainline carrier's turnover.Germanwings fleet will thus grow to around 90 aircraft, with the number of travellers set to increase to around 16 million a year.

The group will invest around €30 million in repainting the aircraft and adapting the cabins of Lufthansa aircraft to the low-cost subsidiary.

Germanwings employs Lufthansa's slim economy class seat, which was introduced to increase capacity in the mainline carrier's European fleet two years ago.

Delta To Buy Virgin Atlantic Stake

Delta Air Lines has held talks to buy the 49 percent stake in British carrier Virgin Atlantic that is currently held by Singapore Airlines, two people familiar with the matter said on Sunday.

Delta, the second-largest US airline after United Continental, has been looking to acquire a stake in Virgin Atlantic for more than two years in an effort to expand its access to London's Heathrow airport, the sources said.

Previous deal talks broke down over price and other issues, and there is no guarantee that the recent discussions would result in a pact, the people said. News of Delta's interest in Virgin was first reported by the Sunday Times of London.

United And American Pilots To Vote On New Deals

Pilots at United Airlines and American Airlines are due to vote in coming weeks on new contracts that in some cases offer the first significant salary increases in almost a decade.

The pay gains reflect better financial times at airlines, and partially offset years of concessions the pilots made as airlines went through bankruptcies and endured huge losses.

But other groups of workers at US airlines are not being treated as generously. The carriers, citing high risks the recovery in their fortunes could stall, are not prepared to improve contracts across the board, industry experts and airline executives say. That means labour relations could remain rocky.

Lufthansa to phase in new budget flights

Details are beginning to emerge of how Lufthansa’s budget brand will evolve.

In September the carrier announced it would create a low-cost offering to operate non-hub domestic and European routes, and it is now confirmed that Cologne-based Germanwings (the low-cost subsidiary of Lufthansa) will take over all its parent’s non-hub routes in stages.

According to a Germanwings spokesman, the phased operation will start in January. It will extend over several months.

It means that all Lufthansa flights which do not serve its twin hubs of either Frankfurt or Munich will be taken over by Germanwings which will provide a budget airline style of service.

Nigeria: Why FG Cancelled Agreement With Lufthansa

Nigerian Minister of Aviation, Princess Stella Oduah

Reasons emerged, weekend, why the Federal Government cancelled its agreement with the German airline, Lufthansa, under which the airline enjoyed free royalty payments for flights into the country.

Sources in the Ministry of Aviation disclosed that the Minister of Aviation, Princess Stella Oduah, instigated the cancellation of the four-year agreement upon revelations that the German airline failed to fulfill its side of the agreement signed in November 2008.

Oduah, it was learnt, moved to cancel the agreement following the advice from the Attorney General of the Federation that the country had sufficient reasons to cancel the agreement upon the confirmation that the airline had not fulfilled its pledges.

Under the terms of the Memorandum of Understanding between the government and Deutsche Lufthansa Aktiengesellschaft (LH)Germany, the German airline was expected to provide technical assistance to the country besides creating a hub inAbujain partnership with other international airlines. The German airline was on its part expected to benefit through additional traffic rights on concessionary basis.

Boeing Engineers Closer To Strike

Engineers at Boeing have moved closer to a strike after the US aircraft manufacturer's latest offer on two contracts that expire on Sunday.

The Society of Professional Engineering Employees in Aerospace (SPEEA) said the new offer still represents a cut in salary and other benefits for the 23,000 members of its two bargaining units, professional and technical workers.

"We're closer to calling a strike authorisation," SPEEA executive director Ray Goforth said. "We don't have a date or plans" to call a vote, he added.

Boeing said the offer is much improved over its opening proposal, and reflects the tough competition with Airbus and the needs of price-sensitive airlines.