Volaris management, from left: Marketing Director Jose Calderoni, CCO Holger Blankenstein and CEO Enrique Beltranena, explain their company's culture, and how they are similar to Southwest Airlines.
Emirates looks to have quickly put the global economic downturn behind it, reporting a net profit of AED3.4 billion ($926 million) for its fiscal year first half ended Sept. 30, significantly widened from an AED752 million profit in the year-ago period.
UK Department for Transport appointed Iain Osborne to the post of CAA group director-regulatory policy. He will assume the role Jan. 10, 2011, replacing Harry Bush, who will step down at the end of this year. Additionally, Richard Moriarty was named CAA's director-economic regulation. American Airlines named Peter Stanham MD-finance for Mexico, the Caribbean and Latin America. It additionally named Marvin Diaz MD-Mexico.
Japan Airlines and Cathay Pacific Airways expanded their codeshare agreement on CX flights between Hong Kong and Mumbai, Chennai, New Delhi, Penang, Surabaya and Ho Chi Minh City in Asia, as well as Johannesburg, Brisbane, Rome and Milan, from Nov. 1. In addition, JAL will begin placing its JL code on CX’s Bangkok–Mumbai, Bangkok–New Delhi and Singapore–Colombo routes.
The Austrian government revealed more details on its so-called "ecological air travel levy," which will begin March 30, 2011 for all departing flights ( ATW Daily News, Oct. 26).
Middle East airlines will not launch an initial public offering this year or early next year but will start returning a dividend of $1 per outstanding share, MEA Chairman and DG Mohamad El- Hout told ATW on the sidelines of the Arab Air Carriers Organization’s recent 43rd AGM in Cairo.
US NTSB is investigating an incident on Oct. 26 involving an American Airlines 757 that experienced a decompression event after a hole opened in the fuselage on the upper crown just above the left door. The aircraft was en route from Miami to Boston and landed safely after returning to Miami. Preliminary indications are that a section of the fuselage skin approximately 1-ft. by 1-ft. tore away.
Boeing said that Russian state corporation Rostechnology finalized a previously announced order for 50 737NGs with purchase rights for an additional 35 valued at $3.7 billion. The order, signed two months ago ( ATW Daily News, Sept. 20), is for 15 737-700s, 25 -800s and 10 -900ERs.
The UK Office of Fair Trade is investigating whether Ryanair’s 29.8% stake in Aer Lingus could lead to a "substantial lessening of competition"and if it has the ability to exercise "material" influence over Aer Lingus’ commercial policy. OFT said it would also investigate whether it has the jurisdiction to investigate the acquisition and if it is within the statutory time period to investigate. If necessary, it will refer the case to the UK Competition Commission.
Air China reported a net profit of CNY5.17 billion ($772 million) in the third quarter, a better than fourfold increase over the CNY885 million earned in the year-ago period. The carrier credited the strong performance to "implementation of effective operating management, marketing and cost control initiatives," the global recovery and rapid economic growth in China. Operating revenue jumped 76.7% to CNY24.83 billion, while operating expenses climbed 44% to CNY 19.42 billion.
ANA Group reported net income of ¥18.5 billion ($221 million) in its fiscal second quarter ended Sept. 30, improved over earnings of ¥3.8 billion in the year-ago period.
Iberia Group swung out of the red with a third-quarter consolidated net profit of €74 million ($102.6 million), compared to a €16 million deficit in the year-ago period, on a 15.8% increase in revenues to €1.35 billion.
British Airways said the "steady recovery continues" as it reported a net profit of £116 million ($184.2 million) in the first half ended Sept. 30, reversed from a £208 million deficit in the year-ago period. Revenue lifted 8.4% to £4.45 billion.
The interception of two packages containing sophisticated bombs last Friday sent from Yemen via package/express giants UPS and FedEx and the revelation Sunday that one of the packages traveled on a Qatar Airways passenger flight are likely to draw further scrutiny into the international shipment of express packages and could lead to new security regulations affecting both express/freight and combination carriers.
Cargolux Airlines International President and CEO Ulrich Ogiermann and Senior VP-Sales and Marketing Robert Van de Weg were indicted Thursday in US District Court in Miami on charges of conspiring to fix and coordinate certain surcharge rates on air cargo shipments to and from the US and for agreeing not to pay commissions on those surcharges, the US Justice Dept. said.
COI Ceramics won a contract from Boeing Research & Technology for the development and demonstration of a Ceramic Matrix Composite exhaust nozzle for US FAA's Continuous Lower Energy, Emissions and Noise program. CLEEN program technologies are slated to be flight tested aboard two aircraft, one Boeing 737 in 2012 and a yet-to-be-determined twin-aisle airplane in 2013. COI is a subsidiary of ATK.
Spirit Airlines, the Fort Lauderdale-based LCC, will launch service to five new cities and add 11 nonstop routes next year. New destinations are Plattsburgh, and Niagara Falls, N.Y; Latrobe, PA.; Charleston, W.V.; and Dallas/Fort Worth.
While nearly all US airlines saw their earnings rise in the third quarter, Allegiant Air parent Allegiant Travel Co. reported net income fell 4.5% to $13.2 million from $13.8 million in the year-ago quarter. The carrier cited the "effects of the slowdown in the general economy," for the lower result.
China Eastern reported net income of CNY3.15 billion ($470 million) in the third quarter, significantly widened from CNY23.16 million earned in the year-ago period. The carrier cited “the synergy effect achieved through [its] merger with Shanghai Airlines” and “robust growth of the domestic market demand, especially stimulated by the Shanghai World Expo” as reasons for the much-improved performance.
LAN Airlines, which is in the midst of combining with TAM of Brazil under a holding company structure, is spreading its wings further northward with an agreement to acquire 98.94% of Colombia's Aires for $32.5 million.
The European Commission Wednesday said it initiated infringement procedures against France, Germany, Austria and Finland over their bilateral air service agreements with Russia because they do not include the EU designation clause and, more specifically, because they contain provisions concerning Siberian overflights.
Signaling that Europe's heretofore lagging recovery is gaining momentum, Lufthansa Group confirmed Thursday it netted €628 million ($866.3 million) in the third quarter ended Sept. 30, tripling a net profit of €209 million in the prior-year period, as revenue surged 27.5% to €7.57 billion.
