Lufthansa to buy stake in jetBlue

jetBlue announced earlier today that Lufthansa would "make a minority equity investment" in jetBlue. The agreement between the two airlines states that Lufthansa will buy about 42 million newly issued shares of jetBlue (19% of the airline) at $7.27 a share, about $300 million. Lufthansa would also get a seat on jetBlue's Board of Directors. (Per US law, Lufthansa would be limited to under 25% voting rights.)Lufthansa CEO Wolfgang Mayrhuber said that Lufthansa was "very pleased to become an investor in JetBlue" and that "this investment presents...

Read More

A319 service to Antarctica

© Australian Antarctic Division 2006The Australian government has started air service from Hobart, Australia to the Wilkins Runway in Antarctica. The route is flown by a single Airbus A319-115LR, which is capable of flying from Hobart to Antarctica and back without refueling (the flight takes about 4.3 hours). The first flight, which was made earlier this week, was a proving flight and only carried operational personnel - regular passenger flights...

Read More

ATA to challenge NY's passenger bill of rights

The Air Transport Association (ATA), the US airline industry trade group, is going to try to block New York state’s airline passenger Bill of Rights. Scheduled to take effect January 1, it would require airlines to provide adequate food, water, and access to waste removal if a New York-based flight has to wait more than three hours for take-off. According to the law, the state can fine airlines up to $1000 per passenger. Airlines leaving passengers stranded on planes for hours is nothing new; winter weather at JFK airport this past February...

Read More

United pays investors while unions upset

United Airlines on Friday announced a $250 million onetime payout to shareholders, with management lauding the move highly. CEO Glenn Tilton announced that the payment, which will be given out at $2.15 a share, shows the airline’s “commitment to creating value for our investors… [United must] “compete for shareholders, just as we compete for customers.” Unions, rather unsurprisingly, gave a dim view of the payout, and said that the airline should be spending the extra cash on employees, rather than give it to investors. Mark Bathurst, head...

Read More

MAXjet suspends shares

“Boutique airline” MAXjet Airways today requested that its shares be suspended in advance of a statement from the airline about its rather precarious financial situation. MAXjet flies five Boeing 767-200s from London-Stanstead to three US cities (JFK, Las Vegas, and Los Angeles) with around 100 leather seats apiece and four-course meals (not to mention champagne cocktails and canapés). The airline went public in June, but has since flown into a rough patch (their stock has fallen 50% and new route from London to Washington was axed, in addition...

Read More

Olympic Airlines under pressure

photo by caribbGreek flag carrier Olympic Airlines appears to be flying into even more turbulence. The Greek transport minister, Costis Hadzidakis, said that although the government was dedicated to keeping Olympic afloat, "the situation for Olympic has become even more difficult," especially after Ryanair complained to the EU that Olympic has not repaid over 700 million euros ($1.2 billion) of illegal state aid that it received between 1998 and...

Read More

Skybus VP: we're "best financed" US airline

According to Skybus vice president Dennis Carvill, Ryanair-imitator Skybus is "the best-financed airline in the history of the aviation industry in the United States... We are capitalized to $160 million of initial startup capital, and that has given us the ability to do what we are doing, that is to grow rather quickly." By comparison, jetBlue, which started out a few years ago with quite a lot of cash, had an initial capitalization of $128 million.Although initial capital is indeed important (and it certainly helped out jetBlue), Skybus' lack...

Read More

Airbus could build plants in US, Russia

photo by mathoovAccording to a story in the German business weekly WirtschaftsWoche, Airbus is considering building assembly plants in the US or Russia. This is due to the strong euro, which Airbus parent company EADS head Louis Gallois said is threatening the long-term existence of the company.The story said that if a plant were built in the US, it would probably be in Mobile, Alabama - this is also important because the company has long been seeking...

Read More

Three interested in Alitalia

photo by WTL photosItalian Prime Minister Romano Prodi recently said that Air France/KLM, Lufthansa, and Italian domestic carrier Air One were interested in making a bid for struggling Alitalia. (Previously interested Aeroflot has already quit the bidding.) All bidders have until December 6 to make a non-binding offer. In an interview with the German newspaper Frankfurter Allgemeine Sonntagszeitung, Lufthansa CEO Wolfgang Mayrhruber said that "Alitalia...

Read More