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Aviation News December 2005

  

Air Canada welcomes Embraer 190

MONTREAL, Dec. 22 /CNW Telbec/ - Air Canada welcomes the most recent addition to its North American fleet as its first EMBRAER 190 departed Ottawa for Orlando on its inaugural flight last night. The arrival of this ultra- modern, spacious and efficient jet brings enhanced passenger comfort and improved schedules as it sets new standards for air travel in North America. Air Canada becomes the first North American airline to operate two different Embraer E-Jet models, the E175 and the E190. 

  

The new Embraer jets are outfitted with Air Canada's new personal entertainment system that is being introduced fleet-wide, and features 8.9-inch wide digital in-seat monitors with touch-screen controls offering audio and video on demand programming at every seat. Other amenities include Air Canada's new seating and cabin design with in-seat power within reach of every customer, no middle seats, spacious overhead bins and cabin interiors that offer plenty of head room with extra-wide aisles. The 93-seat E190 aircraft is configured to provide a choice of two classes of service with 9 window or aisle seats in Executive Class offering 38 inches of legroom, and 84 window or aisle seats in Hospitality service offering 33 inches of legroom. 

  

The arrival of this new generation of jet to the Air Canada fleet allows us to offer superior comfort for our customers in North America," said Ben Smith, Vice President, Network Planning, Air Canada. "We will deploy Embraer's E190 state-of-the-art aircraft to pursue strategic market opportunities in Canada and in the Unites States while offering customers a premium travel experience with enhanced space, comfort and convenient schedules." As additional aircraft join the fleet, the E190 will be used primarily in key Canada-U.S. transborder markets including Toronto-Boston, Toronto-Newark, Toronto-LaGuardia, Calgary-New York (JFK), Ottawa-Fort Lauderdale, Ottawa- Orlando, Montreal-Denver, as well as certain domestic routes such as Toronto- Kelowna, Toronto-St. John's, Montreal-Edmonton, and Montreal-Calgary. Air Canada currently operates its new 73-seat E175 aircraft on: Toronto-Washington D.C. Reagan National Airport, Toronto-Atlanta, Toronto-Boston, Toronto-Newark, Montreal-LaGuardia and Montreal-Chicago. 

  

The E190 has a cruising speed of 830 km/h and a range of up to 4,260 km with a maximum payload of 12,720 kg. Air Canada has firm orders for 45 E190 aircraft with additional options for up to 60 additional E190 aircraft. By year-end there will four E190s in service joining the 14 E175 already operated by Air Canada. Air Canada operates more non-stop flights between Canada and the U.S. than any other airline. Air Canada, Air Canada Jazz and its commercial partners operate more than 385 non-stop daily flights on 79 routes to and from 50 U.S. and 6 Canadian destinations. Air Canada extends its network within the United States even further with its Star Alliance partner, United Airlines. In 2005, an independent survey of more than 12 million international air travelers ranked Air Canada as the Best Airline in North America.

  

Bombardier Global Express XRS

MONTREAL--(BUSINESS WIRE)--Dec. 10, 2005--Bombardier today announced the entry into customer service of its new flagship business jet, the ultra-long range Bombardier Global Express XRS jet. The first aircraft departed Bombardier's Global completion center on November 25, 2005 and European launch customer, Transneft, an oil transportation management company, accepted the second aircraft on December 6, 2005. 

  

Launched in October 2003, the new Global Express XRS business jet delivers a combination of speed and range that is unmatched by any other aircraft in its category. At a cruise speed of Mach 0.88, the aircraft can fly Frankfurt-Beijing in eight hours and 41 minutes and Moscow-Tokyo in eight hours and 22 minutes. "We are impressed by the superb cabin, outstanding performance and sophistication of the new Global Express XRS," said Sergei Grigoriev, vice-president of OJSC AK Transneft. "The aircraft's superior range and comfort are key to meet our regional and intercontinental mission requirements." Ahead of the originally scheduled entry into service date of first quarter of 2006, these Global Express XRS aircraft deliveries highlight the continued success of the Global aircraft platform and represent the fifth major program milestone this year. 

  

- January 16, 2005, first flight of the Global Express XRS business jet 

- April 18, 2005, first Bombardier Global 5000 aircraft entered customer service - August 11, 2005, Bombardier Enhanced Vision System certified for use on the Global Express business jet by Transport Canada. The U.S. Federal Aviation Administration granted its approval on August 26 followed by the European Aviation Safety Agency on September 16 

- August 26, 2005, 150th Global aircraft entered customer service 

  

"The Global Express XRS aircraft superior cabin size, speed and range combination make it the preferred choice for international operators," said Jahid Fazal-Karim, senior vice-president, new aircraft sales, Bombardier Business Aircraft. Aircraft's superior cabin provides ultimate comfort and space The Global Express XRS cabin -- the largest of any purpose-built corporate aircraft either flying or in development - offers 28 per cent more cabin volume and 45 per cent more floor space than its closest competitor. Designed to provide a highly productive working environment and deliver ultimate comfort, the cabin features a 6-foot, 3-inch (1.91 m) stand up height, and a three-compartment configuration. A superior cabin ambiance is achieved through the addition of two cabin windows, along with enlarged window reveals, providing a 183 per cent increase in unrestricted viewing area and ambient lighting. Light emitting diode lighting technology is featured throughout the cabin and passengers and crew will enjoy the improved cabin pressurization, allowing for a 4,500-foot (1,372 m) cabin altitude at flight level 450 (FL450) and a 5,680-foot (1,731 m) cabin altitude at FL510 - the lowest of any commercial aircraft. Also standard on the Global Express XRS business jet is the Bombardier Enhanced Vision System (BEVS), which reduces the risk of controlled flight into terrain, runway incursions at night or during low visibility conditions and increases overall depth perception in difficult operating conditions and/or at unfamiliar airports.

  

Things looking up for top airlines

MONTREAL, Dec 9 (Reuters) - Canada's top two airlines, Air Canada and WestJet, are flying fuller planes to higher profits, even as U.S. mainline carriers struggle toward an uncertain future through a mountain of debt and multiple bankruptcies. Earlier this week, Air Canada, a unit of ACE Aviation Holdings Inc., and no-frills carrier WestJet Airlines Ltd. both posted record passenger traffic figures for November. The bitter rivals are benefiting from what National Bank Financial analyst David Newman calls a "rational, but competitive, duopoly in Canadian skies" since the demise of discount carrier Jetsgo in March. In particular, their load factor rose again in November to record levels for that month. The key measure -- the ratio of seats sold on average on the airlines' planes -- improved even though the carriers added to fleet capacity as they broaden their reach across Canada and into the United States. 

  

Montreal-based Air Canada's traffic figures grew largely on transborder routes to the United States and on international traffic across the Atlantic and Pacific. The November load factor at WestJet was the Calgary, Alberta-based airline's best in more than seven years for that month, and according to Tim James, an analyst at Octagon Capital, it may be a sign of higher pretax profits to come. "We believe that WestJet will see continued year-over-year growth in EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) over the next nine quarters," James wrote in a research report. He believes WestJet is undervalued relative to both its historical earnings and EBITDAR multiples, and when compared with comparable U.S. and European discount carriers. He has a C$17 target on the stock. 

  

WestJet shares were off 19 Canadian cents at C$12.19 on the Toronto Stock Exchange on Friday. The stock is some 42 percent down from its high of C$21 set in January 2004. ACE shares fell 40 Canadian cents to C$37.25 on Friday. They are down about 19 percent from their C$46 peak in June 2005, but about 77 percent above the C$21 they began trading at in October 2004 after Air Canada's complete revamp.

  

Virgin America seeks permission to fly in US

WASHINGTON, Dec 8 (Reuters) - Virgin America Inc., a start-up, low cost airline with a brand made famous by British entrepreneur Richard Branson, sought permission on Thursday from the U.S. government to begin service next year, the company said. Virgin America, which filed for ownership fitness and airworthiness certification with the U.S. Transportation Department and the Federal Aviation Administration, also said it secured $177.3 million in financing from private investors. 

  

Much of the financing came from VAI Partners LLC, an investment group funded by investment firms Black Canyon Capital and Cyrus Capital Partners, Virgin America said in a statement. VAI is the majority owner of the new airline and will control its operations. Branson runs the London-based Virgin Group family of companies that includes Virgin Atlantic Airlines [VA.UL]. Virgin Group will commit additional funding to the Virgin America entry, whose chief executive is Fred Reid, a former Delta Air Lines president. Branson will hold 25 percent equity in the venture. 

  

Virgin America, based in San Francisco, said it plans to use Airbus jetliners and begin service in 2006. It wants to capitalize on low customer service ratings for most U.S. carriers and adopt the customer-oriented focus of the Virgin brand. Virgin America has ordered 33 A320 aircraft, including 18 directly from the manufacturer and 15 leases from General Electric Co.'s  aircraft financing arm, Virgin America said. Virgin America will start with between two-and-four planes and grow in a "measured fashion," Reid said. He added that the first route will be in the highly competitive transcontinental market - San Francisco-New York.

  

Virgin announced its intentions for U.S. service in 2004 and has spent the past 18 months putting together a business plan and lining up investmentors. The new airline's chief competitors will be Southwest Airlines, JetBlue Airways and US Airways. The regulatory review could take between three and six months. The ownership review could face opposition from some larger carriers, which do not want more competition. Three of the five largest U.S. airlines are operating under bankruptcy protection. The last major airline to enter service was JetBlue in 2000. It is now one of the industry's strongest players. A spokeswoman for United Airlines, which has a hub in San Francisco and flies transcontinental routes said it welcomes competition.

  

Reid said Virgin America has gone "out of its way" to make sure that its application is within the bounds of federal law on financial fitness and ownership requirements. "We are totally compliant with existing U.S. law," Reid said. U.S. law prohibits an overseas equity stake in a U.S. airline that exceeds 25 percent voting stock. There are also strict restrictions on the role of international investors in operations of domestic airlines. The Transportation Department recently proposed easing some of those limits, but Reid said the application is unrelated to that initiative. Federal regulators will review ownership structure, management competency and financing. Reid said Virgin America would have no connection with Virgin Atlantic. "We have had no discussions with any sort of airline with codesharing," Reid said in stressing the independence of the carrier's operating philosophy. "We may, over time, enter marketing partnerships. We may have frequent flier partnerships, code share partnerships. But we're scheduling and making our frequent flier and marketing plan purely stand-alone."

  

UK court rejects thrombosis claim

LONDON, Dec 8 (Reuters) - Britain's highest court on Thursday ruled against victims of Deep Vein Thrombosis (DVT) who had been seeking compensation from British Airways and other airlines. A group of eight people alleged airlines failed to warn them that the combination of cramped flying conditions and long hours in the air could give rise to DVT, or blood clots, which can be fatal. However, Britain's House of Lords said the events which caused DVT could not be classified as an accident under the Warsaw Convention governing air travel, upholding an Appeals Court ruling. Airlines would have faced huge damages claims if the claimants had won. "It is an integral part of the test of what amounts to an accident that it must have a cause external to the passengers. In the case of DVT this factor is absent," Lord Steyn told the court. British Airways, the only airline named in the latest claim, welcomed the ruling. "This means that the decision is final and no claims for injury or death caused by DVT during the normal operation of an aircraft can now be brought against airlines in the UK," BA said in a statement. DVT made international headlines and airlines came under pressure to do more to prevent the condition after reports a British woman died from the condition on a 20-hour flight five years ago. Studies have shown up to one in 100 long-haul fliers could develop blood clots. The airlines say the Warsaw Convention protects them from having to pay compensation to passengers for medical problems arising from the normal operation of an aircraft. They say it limits compensation to being payable only in respect of accidents. The original claim involved 24 victims suing 18 airlines throughout the world but the numbers were cut back.

  

China order 150 Airbus jets worth $9.7 billion

PARIS, Dec 5 (Reuters) - China ordered 150 Airbus single-aisle passenger jets on Monday in a deal worth some $9.7 billion at list prices, boosting European industry during a visit to France by Chinese Prime Minister Wen Jiabao. Top French and Chinese aviation officials signed the deal alongside a batch of other industrial orders following talks between Wen and his French counterpart Dominique de Villepin. Other agreements include a deal between China and Eurocopter, the world's largest civilian helicopter maker, to produce a 6 tonne helicopter, and a 150-million-euro Chinese order for a high-speed Shitai railway link. Both Airbus and Eurocopter are subsidiaries of European aerospace firm EADS. China also ordered a telecoms satellite from Alcatel Alenia Space. The jet deal comes a day after Airbus agreed with Wen to look at expanding the assembly lines for single-aisle aircraft outside Europe for the first time by building a site in China. The A320 family of single-aisle jets comprises four aircraft capable of seating 107 to 185 passengers.

 

 

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