AirGuide Business & AirGuideBusiness.

com
Global Market Intelligence
News You Can Use

Business & Industry News - Airline Finance News Jan 18, 2010
Azul Linhas Aereas Brazil's newest discount airline, Azul Linhas Aereas Brasileiras SA, carried 2.2 million passengers in its rst year of operation and is likely to be protable this year, said David Neeleman, founder and chairman. Mr. Neeleman, better known for starting JetBlue Airways Corp. a decade ago in the U.S., said in an interview that he believes closely held Azul is the rst airline in the world to carry more than two million passengers in its rst 12 months. The carrier, based at the airport in Campinas, a city near Sao Paulo, now operates 14 jetliners serving 16 cities. Four destinations will be added this year, and its eet will grow to 21 aircraft by the end of 2010 and 33 by 2011, Mr. Neeleman said. Azul ies 118-seat Embraer E-195 jetliners and 106-seat E-190s. Both models are built by Brazil's Empresa Brasileira de Aeronautica SA. The new airline ew with nearly 80% of its seats full in 2009, the highest load factor among Brazil's major airlines, according to data from Brazil's National Civil Aviation Agency. Azul nished the year with 3.8% of the domestic passenger market, gaining on ve-year-old discounter WebJet Linhas Aereas, which had a 4.5% share. BAE Systems, Condor Airlines, Boeing BAE Systems secured an agreement from Condor Airlines to remarket 13 Boeing 757-300s for a sale/leaseback transaction with a nancial institution or lessor. All aircraft will remain in operation with the German carrier. Blue Wings Blue Wings' 48% shareholder Alexander Lebedev said he has accepted an offer from CEO Jorn Hellwig to sell off his stake, according to the dpa news agency. Hellwig currently owns 26% of Blue Wings, which suspended operations last week. Lebedev reportedly has invested more than 500 million ($709.2 million) in the German airline. On Tuesday, The Moscow Times reported that Lebedev had no intention to sell his stake and that he said Hellwig's future would be determined "after solving the issue of whether we can y again or not." Bmi Bmi will cease offering business class on ights from London Heathrow to destinations in the UK and Ireland from Jan. 27. In addition, passengers purchasing higher Flexible Economy fares will be able to change tickets without a fee and will have access to lounges, reserved seats at the front of the aircraft and free food and beverages onboard. It also announced the launch of twicedaily London Heathrow-Vienna service on March 28 using an A320. Star Alliance partner and fellow Lufthansa subsidiary Austrian Airlines will codeshare. Bombardier Bombardier Commercial Aircraft President Gary Scott yesterday said the manufacturer is in "advanced discussions with some customers" for CSeries orders and that he would "be surprised if we don't announce another order in the rst half of next [scal] year," beginning Feb. 1. Scott was speaking to reporters in Dublin. Lufthansa and Lease Corp. International are the only customers so far and have ordered a combined 50 rm aircraft and 50 options. British Airways The Unite union announced a new strike ballot earlier this week, which raised fears of disruption during Easter. Unite's Len McCluskey said no action would occur over Easter as he wanted "families to be able to plan their travel arrangements in condence". But BA said the union statement would be "of little comfort" to travellers as strikes could still start from March 1. "The union has given up the biggest weapon it had in its armoury to force BA to change course," said the BBC's employment correspondent, Martin Shankleman, who believes the announcement raises hopes there could be a negotiated settlement. A 12-day strike that had been planned over Christmas was halted after the High Court said it was illegal following concerns about how the ballot had been organised. The new strike ballot among cabin crew will open on 25 January and conclude on 22 February. British Airways shares closed up 0.9 percent or 1.8 pence to 202.2p, on a day that most FTSE 100 shares fell. In a statement on Monday, British Airways accused Unite of making proposals that would result in a large increase in costs and sent a letter to staff asking for volunteers to train as replacement cabin crew during any strike.

AirGuideBusiness News - AirGuideBusiness.com/newscenter.htm

ISSN 1939-666X Copyright 1996-2010 AirGuideBusiness / Pyramid Media Group, Inc. All rights reserved. 5

AirGuide Business & AirGuideBusiness.com

Global Market Intelligence
News You Can Use

Business & Industry News - Airline Finance News Jan 20, 2010
British Airways Unite has vowed that any strike action will not be called over the Easter holiday. Len McCluskey, the union's assistant general secretary, said: "It was never the intention of Unite and its British Airways cabin crew membership to call industrial action over Easter. "I want to make it abundantly clear that, if industrial action receives the required mandate from the members and strike action is made necessary by continuing management intransigence, we will not call such action over the Easter holiday period." But BA said the possible strike is still "threatening the travel plans" of business travelers from March 1, according to Unite's ballot timetable. "Assurances about an unspecied Easter holiday period will be of little comfort to them," said the airline. The 12,000 BA cabin crew members of Unite will vote from January 25 on whether to take strike action. A decision will be made on February 22. British Airways British Airways 13,000 ight attendants will vote on strike action next week after talks on crewing levels broke down. German competitor Deutsche Lufthansa AG is also facing a stoppage in a dispute with 4,500 pilots. Negotiations with British Airways ended on Jan. 15 and no date has been set for a further meeting, the Unite union, which represents the cabin crew, said today. A vote last month for a strike over Christmas was declared invalid by a U.K. court. BA and Lufthansa are seeking to slash expenses after the global recession sent trafc tumbling. The German companys pilots have begun voting on a walkout after failing to secure guarantees prohibiting ight crews at the groups BMI, Austrian Airlines and Brussels Airlines units from operating services for the main airline and its cargo and low-cost subsidiaries. British Airways British Airways is considering wet-leasing aircraft and even providing additional training to enable other staff to ll cabin crew positions, following the renewed strike threat by ight attendants. While the carrier has been engaged in talks to resolve a dispute with its cabin crew, the Unite union declared today that it would open a strike ballot next week. The ballot, which will be held from 25 January, follows an abortive attempt to strike in December, when London's High Court ruled the previous ballot illegal. British Airways British Airways cabin crew are to vote again on industrial action, according to Unite union. The poll is expected to take place next week. If staff vote in favour it is believed a strike could take place as early as the rst week of March. Union ofcials said intensive discussions with BA bosses had found no resolution to the long-running dispute, but insisted talks would continue. Unite had called a 12-day strike in December, only to have the High Court grant BA an injunction after the voting process was deemed to have contravened industrial relations law. Staff called for the industrial action after BA chief executive, Willie Walsh (pictured), reduced the number of cabin crew on long-haul ights from 16 to 14 and introduced wage caps for existing staff and lower starting salaries for new starters. Len McCluskey, assistant general secretary of Unite, said "We have to honour our commitment to give our members the voice they were denied by the courts before Christmas, and hold a fresh ballot for industrial action." BA said it was "saddended but not surprised" to learn that Unite had called another strike ballot. British Airways British Airways has asked its ofce-based staff to volunteer as cabin crew, in case of a strike by Unite members. BA sent the SOS to staff, after talks with the union stalled. A BA spokesperson said "BA is asking for volunteers to train. "We're looking at a number of options, and that could include temporary wet leasing aircraft, so leasing a third party aircraft with its own crew, and also training other members of staff as crew." The volunteers would work alongside existing cabin crew who are prepared to cross the picket line. "We will provide assistance from those cabin crew who wish to work normally," said the airline. BA added it would "explore all options to enable us to operate the best ying programme possible under the circumstances. "Our priority is to keep as much of our operation running as effectively as possible, for the sake of our customers' interests." www.ba.com

AirGuideBusiness News - AirGuideBusiness.com/newscenter.htm

ISSN 1939-666X Copyright 1996-2010 AirGuideBusiness / Pyramid Media Group, Inc. All rights reserved. 6

Copyright of AirGuide Business is the property of Pyramid Media Group and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.