Air France-KLM has plunged into a third-quarter operating loss of €194 million euros, reflecting what the airline described as a deepening economic crisis. The losses were expected after Europe’s largest airline group warned of a quarterly loss of 200 million euros last month, as the global economic crisis pulls the airline sector deep intothe red. Overcapacity and evaporating fuel surcharges put pressure on cargo pricing in the third quarter, driving down unit revenue as freight … [Read more...] about EUROPE & CIS: Air France-KLM plunges into red

Italy’s Alitalia Cargo, a subsidiary of the country’s former national carrier and Europe’s seventh-largest air freight operator last year, may be sold to Cargoitalia’s parent Alis Aerolinee Italiane that has made a binding offer of €14.5 million for the company’s five MD-11 freighters. Cargoitalia says the sale must be completed by 9 March and if it is, it will hire 15 pilots within one month of closing the deal and another 15 pilots for each MD-11 that enters its … [Read more...] about EUROPE & CIS: Cargoitalia parent makes offer for Alitalia Cargo

As widely expected, Airbus has announced the first production cuts in response to the deepening recession which has sent the global aviation market into a tailspin. A growing number of airlines are seeking to defer or cancel aircraft deliveries, as they are forced to cut capacity to try to match falling demand for air traveland air cargo. Airbus and its rival Boeing are finding their record order backlogs no longer offer protection against the impact of the global recession, which is forcing … [Read more...] about EUROPE & CIS: Airbus cuts production as traffic plummets

Dubai-based lessor, LCAL, established in 2004 to buy and lease 787s, cut its Dreamliner order from 21 aircraftto five. The 16 cancellations are another blow to the ongoing troubles surrounding the Dreamliner and are valued at US$2.8 billion. This is the second big 787 order cut revealed in the last two weeks after Russia’s S7 confirmed last week that it had cancelled its order for 15 Dreamliners. … [Read more...] about MIDDLE EAST: Dubai lessor cuts 787 order

Saudi Arabian Airlines has signed two US$300 million deals for its new fleet of 50 Airbus A320s. The first is an exclusive 10-year materials agreement GE Aviation Services. This contract means Saudi Arabian Airlines will use only CFM parts in the maintenance ofits A320 fleet. Saudi Arabian Airlines concurrently signed the final US$300 million agreement for 22 new A320s, the purchase of which was announced at Farnborough last year. The carrier also will lease 28 CFM56-5B-powered A320s and … [Read more...] about MIDDLE EAST: Saudi signs deals for A320 fleet