American Airlines confirms deal to buy 460 aircraft, spin off American Eagle

American Airlines Inc. is buying 460 airplanes from Airbus and the Boeing Co., the company announce Wednesday, calling it the biggest aircraft purchase in aviation history.
As part of the deal, American is getting about $13 billion in committed finance from the two companies, covering the first 230 deliveries.

These new deliveries are expected to pave the way for American to have the youngest and most fuel-efficient fleet among its U.S. airline peers in around five years, American said in its announcement.

Parent AMR Corp. disclosed the major purchase as it announced a $286 million loss for the three months ended June 30.

In addition, AMR outlined its plans to spin off its American Eagle regional carrier to AMR shareholders in coming months.

Strategically, AMR believes a divestiture would be beneficial, as it would help ensure American maintains bloodthirsty rates and services for its regional feed into the future,” AMR said. “A divestiture would also provide Eagle an opportunity to vie for the business of other mainline carriers and allow the carrier to expand its operations.

Among other major disclosure, American said it expects to cut back its flight schedule between the United States and Europe. It is evaluating its winter flying, and anticipate making seasonal route and day-of -week flying adjustments in early 2012 to improve its results,” the company said.

It also wants the suppleness to suspend its new route from New York’s Kennedy International Airport and Tokyo’s Haneda International Airport.

Combined Atlantic Southeast Airlines to ExpressJet will be named “SureJet” after they merge

ATLANTA — SkyWest Inc. said on Wednesday that it’s Atlantic Southeast Airlines and ExpressJet units will be named “SureJet” after they merge their operations later this year.

SkyWest bought ExpressJet Holdings for $133 million in November, and has said all along that it would merge it with Atlantic Southeast at that operation’s headquarters in Atlanta.

It is aiming to obtain a single operating certificate from the Federal Aviation Administration by the end of this year.


Atlantic Southeast President and Chief Operating Officer Brad Holt said selection a new name for the combined operation will foster unity.

Once the combining process is finished, the company said SureJet will be the largest regional airline, with 10,000 workers and 412 aircraft, operating flights under contract to larger airline companies such as United Continental Holdings Inc. and Delta Air Lines Inc.

SkyWest Inc., based in St. George, Utah, said it will keep on operating a separate airline under the SkyWest name. Shares fell 5 cents to close at $15.11.

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Airlines face tough times

The individual airlines are confronted by massive challenges because the international airline industry evolves from a heavily protected, government run activity into a commercial hybrid. Each individual airline is unique to the company concerned. Due to number of external threats the international airline industry remains constantly at risk.

Some of them are adopting more effectively than others to their new environment. Best in the competitors will be come out in the difficult times. The best will be the one who innovate and grow yet at the same time others cling to older, safer models. A sound and flexible strategy is possessed in 2011 standouts. There are some ingredients introduce by most of them. They are rapid fleet and network development, a new business model. Innovative services and products cross border JV activity or consolidation and financial distress. The shifts in the industry are not by the means of standard, largely mirroring the way global economic change is occurring. With remarkable growth rates, a growing number of new entrants appear and legacy airlines are reinventing themselves the Asia ascends in importance.

By focusing more on consolidation across borders Latin America begins assert itself. After a decade of rapid low cost airline growth Europe and North America are witnessing low growth rate. By relying on global alliance membership and consolidation the major airlines seek to protect themselves against their short haul coast inadequacies.

The Middle East airlines are aided by liberal policies integrated aviation strategies and new generation long haul aircraft. The Middle East airlines are showing how a future airline system based on practically should perhaps function rather than relying on ageing protectionist bilateral restrictions. The national economies of the eastern European airlines have expanded so the airlines begin to assert themselves on the world stage. No rigid scientific formula is applied in the inaugural list of the 75 hottest airlines to watch by CAPA.

Approval for all the commercial flights to use the biofuels

Finally the airlines have got the approval to use the biofulels for all the commercial flights.The US based group members to power the planes with the traditional kerosene and biofuels derived from inedible plants and organic waste.

The airlines to fly passenger jets using derivatives of up to 50 percent biofuel made from feedstocks such as algae and woodchips. It will help carriers that account for 2 percent of global carbon dioxide emissions decrease pollution blamed for damaging the Earth’s atmosphere.

Airlines already have tested flights using the fuel. Air France-KLM Group on June 29 operated the world’s first commercial flight using a blend including cooking oil. It’s planning 200 similar test flights from Amsterdam to Paris starting September. Boeing did a trans-Atlantic flight with fuel from the camelina plant.

Companies that may benefit from opening the $139 billion-a- year aviation fuel market include Neste Oil Oyj of Finland, US-based Solazyme Inc. and Honeywell International Inc.’s UOP unit, which is developing a fuel-making technology.

This is an important milestone for the aviation industry and for biofuel producers that bet on drop-in fuels,” said Roberto Rodriguez Labastida, an analyst at Bloomberg New Energy Finance.