LAN Airlines October 2008 system traffic; RPKs up 12.7%, ASKs up 11.3%

November 17, 2008

System passenger traffic for October increased 12.7% as capacity increased 11.3% resulting in a 1.0 point increase in load factor to 76.3%. Domestic passenger traffic in Chile increased 30.8% as capacity increased 27.1% moving the domestic load factor up 2.1 points to 75.3%. International passenger traffic for October increased 7.3% as capacity increased 6.3% moving the load factor up 0.7 points to 76.8%. International passenger traffic accounted for approximately 69% of total passenger traffic. Cargo traffic in the same period increased 11.4% as capacity increased 14.7%. As a consequence, cargo load factor decreased 2.1 points to 71.7% mainly due to higher capacity on regional routes. Cargo traffic grew mainly as a result of the continued strength in import markets, especially in Brazil, an increase in wet lease capacity in preparation of the arrival of the B777 cargo fleet and the initiation of cargo operations in Central America during September. 

 

GOL October 2008 traffic; RPKs down 17.5%, ASKs flat 0.0%

November 17, 2008

GOL Linhas Aereas Inteligentes, parent of GOL and VRG, reported that system-wide passenger traffic in October decreased 17.5% and capacity was flat at 0.0%. System-wide load factor was 56.8%. Domestic passenger traffic for October decreased 14.0% and capacity increased 6.1%. Domestic load factor was 57.2%. International passenger traffic for October decreased 33.0% and capacity decreased 23.8%. International load factor was 54.7%. 

 

Copa Holdings consolidated October 2008 traffic; RPMs up 17.5%, ASMs up 11.3%

November 17, 2008

Copa Holdings, parent of Copa Airlines and Aero Republica, reported that consolidated traffic (RPMs) increased 17.5% while capacity (ASMs) increased 11.3%, moving load factor up 3.9 p.p. to 73.2%. Copa Airlines passenger traffic for October increased 20.6% on a 15.4% increase in capacity, moving the load factor up 3.2 p.p. to 75.4%. Aero Republica passenger traffic for October increased 1.3% on a capacity decrease of 6.1%, moving the load factor up 4.6 p.p. to 62.0%. Aero Republica’s capacity reduction is mainly a result of ongoing transition to smaller Embraer 190 aircraft.

 

Tom Anderson appointed Senior VP North America by Airbus

November 17, 2008

The appointment of long time airline executive and consultant, Tom Anderson, as Senior VP of Airbus North America Customer Service is a great move. Tom has many years of hands-on experience in the market and will be a valuable asset for Airbus. Congratulations to both Airbus and Tom.

 

COLOMBIA ELIMINATES VISA REQUIREMENT FOR 87 COUNTRIES

November 17, 2008

The Ministry of Foreign Affairs has announced that the government has approved the resolution to eliminate visa requirements for citizens from 87 countries worldwide for temporary visits, including business or technical reasons. The visitors will be issued a special permit by the DAS (Department of Security Administration) on arrival. The countries include the United States, Germany, Japan, Australia, Canada, Spain, Italy, as well as Mexico, and all of Central and South America.

INDUS Corporation Wins Air Force Work

November 17, 2008

VIENNA, Va., Nov. 17 /PRNewswire-USNewswire/ –INDUS Corporation, a leading Federal Information Technology (IT) solutions provider, announced today that it is working as a significant subcontractor to Information Innovators, Inc. (Triple-i), the winning prime contractor for the Air Force Network Operations (AFNETOPS) Enterprise IT Service Desk (ESD) support task. The task was awarded to Triple-i by the Air Force contracting group at Tinker Air Force Base, Okla.

Under the task, Triple-i and INDUS are providing skilled personnel to support a virtual ESD that operates 24 hours per day, 7 days per week, year-round. The AFNETOPS ESD is replacing base-level Network Control Center (NCC) help desks at more than 100 Air Force bases, in multiple major commands, with a single, virtual help desk serving the entire Air Force enterprise network, world-wide. Work on this project is currently underway in San Antonio, Texas, and will expand physically to two other locations and connect virtually to a third location. Kevin “Axel” Foley (Col, USAF Retired), the INDUS Vice President who heads up the company’s Air Force business, is engaged with Triple-i and Air Force leadership to ensure that the Triple-i team delivers the support required to meet current and future mission needs.

“INDUS is very pleased to be part of the winning Triple-i team, and excited to be involved in this critical Air Force project,” said Carleton Jones, INDUS’ President. “We look forward to continuing to grow our Air Force cyber warfare presence, supporting achievement of the Air Force mission to ‘fly, fight and win … in Air, Space and Cyberspace.'”

About INDUS Corporation

INDUS Corporation is a privately held provider of IT services meeting mission-critical requirements of United States Government Civilian, Defense, Homeland Security, and Intelligence organizations. INDUS’ services include Secure Infrastructure Solutions, Actionable Intelligence, Software Applications Management, and Enterprise IT Services. INDUS is an International Organization for Standards (ISO) 9001:2000 registered company, has been externally assessed as Capability Maturity Model Integration (CMMI) Level 3-compliant, and adheres to IT Infrastructure Library (ITIL) concepts and practices for managing IT infrastructure, development and operations.

ATK’s Solid Rocket Boosters Launch NASA’s Space Shuttle Endeavour

November 17, 2008

STS-126 is First Mission To Deploy a Full Flight Set of 16 ATK-Designed Booster Separation Motors

MINNEAPOLIS, Nov. 14 /PRNewswire-FirstCall/ — Alliant Techsystems’ (NYSE: ATK) Reusable Solid Rocket Motors (RSRM) successfully ignited earlier today to send NASA’s Space Shuttle Endeavour and its crew on their mission to deliver equipment to the International Space Station (ISS) that will enable larger crews to reside aboard the complex.

ATK’s two solid rocket motors provided the main thrust at liftoff and carried the orbiter and its payload to an altitude of approximately 28 miles in two minutes of flight, producing the equivalent of 15 million horsepower per booster.

After two minutes of flight, 16 ATK Booster Separation Motors (BSMs) — four on the forward skirt and four on the aft skirt on each booster — fired to jettison the boosters safely away from the shuttle orbiter and external tank, allowing the rocket motors to parachute back down through the Earth’s atmosphere to be recovered and reused.

ATK recently qualified an upgraded BSM design for use on Shuttle missions. The scope of the redesign work included a full redesign of the igniter, and upgrades to a number of materials, processes and inspection techniques. ATK was tasked by NASA to qualify an upgraded BSM from a previous source and produce them alongside the RSRM’s stringent manufacturing and quality processes. The BSMs performed flawlessly.

“It is always exciting to watch our systems perform in support of each Shuttle mission,” said Mike Kahn, executive vice president and general manager of ATK Launch Systems. “I am especially proud of the NASA, ATK, and United Space Alliance BSM team that has been working together over the past few years in support of this important milestone.”

The RSRMs and BSMs will be used for the remainder of the Space Shuttle Program with similar versions being used on NASA’s Ares I, the launch vehicle that will replace the shuttle on missions to the ISS as well as conduct future lunar missions. ATK is the prime contractor for the Ares I five-segment first stage.

ATK is a premier aerospace and defense company with more than 17,000 employees in 21 states and $4.6 billion in revenue.

Pratt & Whitney Rocketdyne’s Space Shuttle Main Engines Boost Equipment to Service and Repair Solar Array Joints on International Space Station

November 17, 2008

CANOGA PARK, Calif., Nov. 14 /PRNewswire/ — Three Pratt & Whitney Rocketdyne Space Shuttle Main Engines (SSME) successfully boosted supplies and equipment onboard Space Shuttle Endeavour today. Endeavour launched from NASA’s Kennedy Space Center on Mission STS-126 – the 27th mission to the space station. Pratt & Whitney Rocketdyne is a United Technologies Corp. (NYSE: UTX) company.

In a series of spacewalks, astronauts will service and repair the International Space Station’s Solar Alpha Rotary Joints, which keep the solar arrays on the outboard truss segments oriented toward the sun. In 2007, engineers noticed high currents and vibration in the starboard truss, which has limited its use. Astronauts will repair the malfunctioning joint and lubricate the other port-side truss.

“We are intensely proud of our space shuttle heritage and helping our international partners work toward the completion of the space station,” said Jim Paulsen, SSME program manager, Pratt & Whitney Rocketdyne. “Our top priority is sending our astronauts safely into space and bringing them back home safely after a successful mission.”

The port-side truss is complete with two sets of arrays, and is operating successfully. The starboard truss has one set of arrays, with another set scheduled for attachment in early 2009.

Pratt & Whitney Rocketdyne, a part of Pratt & Whitney, is a preferred provider of high-value propulsion, power, energy and innovative system solutions used in a wide variety of government and commercial applications, including the main engines for the space shuttle, Atlas and Delta launch vehicles, missile defense systems and advanced hypersonic engines.

Boeing Completes Destructive Testing on 787 Dreamliner Wing Box

November 17, 2008

SEATTLE, Nov. 15 /PRNewswire-FirstCall/ — Boeing (NYSE: BA) completed destructive testing today on a full-scale composite wing box of the 787 Dreamliner, the first all-composite wing box ever built for a Boeing commercial airplane. This test is part of the certification process for the all-new jetliner.

“Successful completion of the wing box destruction test marks a major step forward in highlighting the innovation on the 787,” said Mark Jenks, vice president of 787 Development. “In addition to determining the strength of the structure, the test helps us verify the analytical methods we have used to calculate the loads the structure will have to carry.”

The wing box is a cantilevered beam that carries the wing to the fuselage and supports leading- and trailing-edge devices, control surfaces, engines and landing gear. The test piece represents a portion of the wing section that begins at about the center of the airplane and stops at approximately one-half of the span of the wing — approximately 50 feet (15.2 meters). The piece measures approximately 18 feet (5.5 meters) at its widest point.

The upper and lower surface panels and the spars of the wing are made entirely of the same composite material being used on the fuselage. The wing ribs are monolithic aluminum structures, each machined from a single piece of aluminum plate.

To meet certification requirements, the wings must withstand loads up to 1.5 times, or 150 percent, of the highest aerodynamic load that the jet could ever be expected to see in the entire lifetime of the 787 fleet.

The test wing box weighs 55,000 pounds, including a great deal of test- only hardware and instrumentation. It was designed and built by a joint team of Boeing, Mitsubishi Heavy Industries and Fuji Heavy Industries.

Structural testing will continue on two full-scale 787 airframes as part of the certification process for the airplane. Those tests will further demonstrate the performance of the structure through multiple lifetimes of normal operational loads and test the structure beyond the points expected to be seen in service.

Video highlights of the test will be posted to www.boeing.com and www.newairplane.com on Tuesday morning, Nov. 18.

GOL Reports Operating Profit of R$ 61.2mm for 3Q08

November 17, 2008

Company Reports Quarterly Net Revenue of R$1.8bn

SAO PAULO, Brazil, Nov. 16 /PRNewswire-FirstCall/ — GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4), Brazil’s low cost airline, today announced preliminary unaudited financial results for the third quarter of 2008 (3Q08). The following financial and operating information, unless otherwise indicated, is presented pursuant to US GAAP and in Brazilian Reais (R$) and comparisons refer to the third quarter of 2007 (3Q07). Additionally, financial statements summary in BR GAAP are made available at the end of this release. As part of the process to transition the Company’s financial statements from US GAAP to IFRS (International Financial Reporting Standards), beginning with 3Q08 results, the Company will initially report its consolidated earnings in US GAAP with financial statements reported according to IFRS is expected to be released until December 15, 2008. IFRS is the most widely accepted accounting standard internationally. Quarterly information does not include the changes in accounting practices provided by Law No. 11,638, as permitted by the Brazilian Securities and Exchange Commission (CVM) in this period of transition.

OPERATING & FINANCIAL HIGHLIGHTS

— Net revenues reached R$1.8bn, representing growth of 37.2% compared to the same period last year. The Company transported 6.0mm passengers during the quarter, representing growth of 8.7% over 3Q07. Ancillary revenues (cargo and other) increased 55.0% over 3Q07 to R$178.0mm.

— Consolidated operating income for the quarter was R$61.2mm, representing an operating margin of 3.4%. Consolidated net loss for the quarter was R$294.3mm (US$176.3mm), due to a negative exchange variation of R$261.8mm with no impact on cash and negative net hedging results of R$48.0mm. Consolidated net loss per share (EPS) was R$1.47; net loss per ADS was US$0.88.

— Consolidated operating costs per ASK (CASK) increased 22.4% from 14.23 cents (R$) in 3Q07 to 17.42 cents (R$) in 3Q08. Non-fuel CASK increased 13.6% to 9.87 cents (R$) due to planned lower aircraft utilization, extraordinary expenses related to aircraft return expenses, lower stage length, and increases in salaries, wages and benefits, sales and marketing and depreciation.

— On September 30, the Company’s total liquidity was R$2.4bn, comprised of: cash, cash equivalents and short-term investments of R$723.8mm, accounts receivable of R$379.2mm, R$621.8mm in deposits with lessors and R$668.3mm deposited with Boeing as advances for aircraft acquisitions.

— In line with its fleet renewal plan, the Company received four 737- 700NGs and eight 737-800NGs and removed ten 737-300s and eight 767-300s from the operating fleet during the quarter, resulting in a net reduction of eight aircraft in the operating fleet. The Company plans to end 2008 with a consolidated fleet of 104 aircraft, mostly comprised of 737-800 and 737-700 aircraft.

— Consolidated domestic RPKs decreased 17.7% and ASKs decreased 4.6%, versus 2Q08. Consolidated international revenue passenger kilometers (RPKs) increased 3.4% and ASKs decrease 16.6% versus 2Q08.

— Consolidated RPKs increased 8.7% from 5,470mm in 3Q07 to 5,944mm in 3Q08 and ASKs increased 10.9% from 8,941mm in 3Q07 to 9,912mm in 3Q08. Consolidated average load factor decreased 1.2 percentage points versus 3Q07 to 60.0%. Consolidated break-even load factor decreased 1.9 percentage points versus 3Q07 to 57.9%.

— Consolidated passenger yields increased 24.7% to R$27.09 cents, compared to a 57.1% increase in fuel price (WTI) in the same period. RASK increased 23.7% over 3Q07 to 18.04 cents (R$). Average fares were R$275.

— GOL now offers over 790 daily flights to 59 different destinations in Brazil and South America, the most of any airline group. In 3Q08, GOL added 19 new daily flight frequencies. The Company’s low-cost operating structure permits flights to medium-sized cities with lower traffic volumes, allowing GOL to serve various destinations outside of Brazil’s main economic centers.

— On August 31, the Company ceased long-haul services with the last intercontinental flight to Paris, France. Beginning August 31, the Company ceased operating Boeing 767s and now operates only Boeing 737s on its short and medium-haul flights.

— On September 25, Anac (Brazil’s National Civil Aviation Agency) approved the Company’s corporate restructuring plan for its subsidiaries GTA and VRG. On September 30, the subsidiaries merged into one airline.

— On October 19, GOL launched its new integrated route network. The new network compliments the Company’s unified structure by eliminating overlapping routes and schedules between GOL and VARIG, which improves flight occupancy levels by allowing the Company to increase offerings in markets where it has consolidated operations while also allowing new connections between previously unlinked cities.

— On October 16, the Company launched a new “Comfort Class” on VARIG’s medium-haul international flights, which provides passengers with a number of important benefits, including a wide variety of meal choices, more legroom between seats, on-demand entertainment during the flight, and many other benefits. The Company has also enhanced its in-flight service on domestic flights.

— Beginning on October 16, customers flying on both VARIG and GOL are able to accumulate miles through the SMILES frequent flyer program. Beginning November 16, miles can be exchanged for tickets to all destinations served by the Company.

— On October 23 the Company signed an interline agreement with Germany– based Condor Airlines. Through this partnership, passengers of the European airline can purchase tickets on GOL to Belo Horizonte, Brasilia, Fortaleza, Maceio, Natal, Rio de Janeiro and Sao Paulo.

— The Company ended the quarter with 25.6% of its shares floating in the market. GOL’s shares presented average daily trading volumes of US$19.0mm (R$31.7mm) during 3Q08.


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