business briefs
COURT EXTENDS PASSENGER COMPENSATION RIGHTS
AIR TRAVEL Europe's Court of Justice has ruled that passengers can pursue compensation over cancelled flights through courts with jurisdiction over the departure or arrival points, rather than the airline's main office. The clarification follows a case brought by an Air Baltic passenger travelling from Munich to Vilnius who took his claim to the court with territorial jurisdiction over Munich Airport. Air Baltic had argued that the relevant jurisdiction was Riga.
CHROMALLOY TARGETS LATIN AMERICA
SPARE PARTS US parts and repair company Chromalloy has reached an exclusive agreement with Miramar, Florida-based TSI Aviation for sales and marketing of parts manufacturer approval parts, including high-pressure turbine blades for commercial and military aircraft operators in Mexico, Central and South America. Chromalloy has been represented in Brazil for several years.
INSITU EXPANDS PRODUCTION WITH SECOND PLANT
UAVS Boeing's Bingen, Washington-based Insitu unmanned systems subsidiary is expanding with a new plant in Stevenson, Washington, to make ScanEagle and Integrator aircraft. Separately, Insitu has delivered its 1,000th ScanEagle.
FINANCE COSTS WEIGH ON SUKHOI CIVIL AIRCRAFT
MANUFACTURING Sukhoi's civil aircraft division posted a 2008 operating loss of nearly $45 million and a net loss of $115 million - after an operating profit of $2.7 million in 2007 - despite increasing revenue nearly tenfold to $6 million. The company, which is developing the Sukhoi Superjet 100 regional aircraft, says operating costs were held at about 2007 levels, but the results reflect a fourfold reduction in governmental grants, to $16.7 million, and a weakening rouble, while interest expenses soared to $14.4 million from just $870,000. Total debt at the end of 2008 was $819 million.
SHARE PRICE FALL HITS ANA'S FUNDRAISING TARGET
FINANCE A falling share price has led Japan's All Nippon Airways to lower its sights by 20% for the cash it hopes to raise from a share placement to finance the purchase of additional aircraft, including Boeing 787s, and shore up its balance sheet. On 1 July, the carrier announced plans to raise ¥183 billion ($1.98 billion), but now it is looking for ¥141.7 billion from its offer of 575 million shares, at ¥259 each, to Japanese and international investors.
REPUBLIC TO BUY BANKRUPT FRONTIER
AIRLINES A judge overseeing the restructuring under Chapter 11 bankruptcy protection of Denver-based Frontier Airlines has approved its purchase, in the absence of a higher bid, for $108 million by Republic Airways, which is one of Frontier's largest unsecured creditors and was an operating partner until bankrupt Frontier ended their air services agreement in June last year. Republic is also in the process of closing the purchase of Midwest Airlines.
FOUR PLEAD NOT GUILTY IN BA-VIRGIN CARTEL CASE
FAIR TRADING Four executives with links to British Airways have reportedly pleaded not guilty to charges in connection with an illegal fuel surcharge cartel organised between BA and rival Virgin Atlantic. The four - Andrew Crawley, Martin George, Iain Burns and Alan Burnett - appeared at Southwark Crown Court in London for a pre-trial review, after being formally accused of cartel offences. Their trial will begin on 18 January 2010, and is expected to last two weeks.
Source: Flight International
