Juneyao Airlines expects to report a net profit in excess of CNY70 million ($10.2 million) this year, a significant increase over the CNY50 million forecast in July ( ATWOnline, July 21), and now expects earnings greater than CNY100 million in 2010 owing to strong domestic demand and fleet expansion, according to Chairman Wang Junjin. It posted a CNY11.5 million surplus in 2008. The privately held Shanghai-based carrier operates 12 A320s and plans to introduce two more by year end.
Astraeus announced the introduction of its first A320, a former Iberia aircraft on lease from DVB Bank. "Our fleet has traditionally been 100% Boeing, but in leasing and contracting out of our aircraft over the past 18 months under our new business model, we've come across a great deal of operators who want, or need, different options," CCO and Director-Aircraft Leasing Shaun Monnery said.
Air Transport Assn. President and CEO James May last week wrote US State Dept. Envoy for Climate Change Todd Stern urging him to "strongly and expressly oppose" the International Air Passenger Adaptation Levy, a tax on airline tickets that has been proposed by a group of countries led by Maldives. The measure would see "anywhere from $6 to $62 added to the cost of an international airline ticket" to pay for "climate change projects to be built in developing countries," according to ATA.
Pinnacle Airlines and Colgan Air parent Pinnacle Airlines Corp. reported an $11.4 million profit in the third quarter, an 84% increase from the $6.2 million earned the same period a year ago. Revenue dipped 2% year-over-year to $217.2 million while expenses fell 4% to $193.4 million. Operating income was $23.8 million, up 19% from $20 million in the 2008 third quarter. During the quarter, Pinnacle saw a 5% drop in aircraft utilization, primarily owing to network changes that resulted in shorter flights. Colgan saw a 16% reduction in block hr. and a 15% decrease in departures.
IATA yesterday said airlines that already have reported their third-quarter results earned a net profit of $400 million, reversed from a net loss of $1.5 billion in the year-ago period, but maintained its forecast for an $11 billion full-year loss owing a $6 billion first-half deficit and the fact that "Q4 is usually loss-making."
Wizz Air announced the launch of a Web check-in service starting with flights from Budapest and extending to the rest of the network by next spring. EasyJet will launch 25 new routes this winter: Manchester to Marrakech (Oct. 29), Copenhagen and Munich (both Nov.6); Basel-Dusseldorf (Nov. 2); Liverpool to Fuerteventura (Nov. 2) and Lanzarote (Nov. 3); Lyon to Nantes (Nov. 2) and Brussels (Dec. 17); Rome Fiumicino to Lamezia, Amsterdam, Lisbon (all Nov. 2) and Dusseldorf (Feb. 1); Madrid-AMS (Nov. 2); London Gatwick to Porto (Nov. 2), Agadir (Nov.
Sensis announced that Houston Intercontinental became the 21st airport to operate its Airport Surface Detection Equipment, Model X runway incursion detection and alerting system. Miami International became the 20rh on Monday.
Lufthansa subsidiary Swiss International Air Lines reported a €47 million ($69.4 million) third-quarter operating result, a 60.5% decrease from the €119 million earned in the year-ago period, and expects to post a full-year profit, while newly acquired neighbor Austrian Airlines faces deepening deficits and a cloudier future.
US House of Representatives ranking Republicans on committees with jurisdiction over labor and transportation pushed back against the National Mediation Board's proposal to change airline union-certification voting rules, saying the suggested rule alteration is "troubling" and shows "union favoritism." NMB has proposed revising its rules to allow an airline work group to unionize if a majority of those casting ballots in a union-certification vote approve, rather than a majority of the total work group ( ATWOnline, N
United Airlines parent UAL Corp. named VP-Corporate Real Estate Ajay Singh as VP-business management and information technology and appointed MD-Procurement Kate Gebo to succeed Singh. In addition, Praveen Sharma was named MD-Mileage Plus finance, strategy and information technology.
News from Travel Technology Update: The dispute between Expedia.com and Choice Hotels International may seem like déjà vu to those who remember the battle between the online agency and InterContinental Hotels Group in 2004. But there is a key difference between the old fight and the new, according to observers close to the issue.
The US National Mediation Board yesterday issued a proposed rule change that would allow an airline work group to unionize if a majority of those casting ballots in a union-certification vote approve, potentially lowering the threshold for unionization.
British Airways pleaded guilty in Canadian Federal Court to " fixing surcharges on the sale and supply of international air cargo exported on certain routes from Canada" in 2002-06 and agreed to pay a C$4.5 million ($4.1 million) fine, the country's Competition Bureau announced. Canada now has recovered more than C$14.6 million from BA, Air France, KLM, Martinair and Qantas, and its "investigation into the alleged conduct of other air cargo carriers continues," it said.
Iberia launched the upgrade of its long-haul business class, part of a €150 million "Total Customer Care" program aimed at enhancing customer service. IB's remodeled Business Plus cabin will feature lie-flat seats versus the previous 170-deg. Recline, and an extended 2.2 m. between rows. It will reduce the number of business class seats on its 12 A340-600s to 42 from 52 and on its 20 A340-300s to 36 from 42. Three aircraft already have been fitted with the new cabin by IB's maintenance unit, with the fleetwide upgrade scheduled to be complete in March.
IATA, following up on its recent court victory in its dispute with Travelport, said it is seeking "an EU-wide declaratory judgment from the Amsterdam District Court confirming that the PaxIs product does not infringe on Travelport's database rights in any of the member states of the European Economic Area." On Oct. 1, the Amsterdam District Court denied an application for a preliminary injunction preventing IATA's use of airline data stored in Travelport databases ( ATWOnline, Oct. 21).
Amadeus and ICAO announced an agreement under which ICAO will supply Amadeus with data from its carbon emissions calculator, which Amadeus said, "will allow Amadeus's worldwide customer base to estimate the carbon footprint of air travel." Amadeus will integrate the data into its travel reservation platforms by mid-2010.
Australian Competition and Consumer Commission issued a draft determination finding that the planned transpacific joint venture between Virgin Blue and Delta Air Lines "is likely to assist Virgin Blue and Delta to compete more effectively against the incumbents on the routes, Qantas and United Airlines." The partnership also requires approval from the US Dept. of Transportation ( ATWOnline, July 10).
CIT Group, parent of operating lessor CIT Aerospace, filed for bankruptcy protection Sunday, proceeding with a so-called "prepackaged" financial restructuring approved by most of the company's debt holders. In a statement, CIT said that "none" of its operating subsidiaries were included in the filing. "As a result, all operating entities are expected to continue normal operations during the pendency of the cases." According to Ascend Online, CIT Aerospace is the industry's fifth-largest operating lessor with a fleet of 237 aircraft.
Qantas joined the Sustainable Aviation Fuel Users Group, the industry coalition established to accelerate the development and commercialization of sustainable aviation fuel ( ATWOnline, July 14).
S-Air BAe 125-800B crashed on approach to Minsk last Thursday, killing the two crew and three passengers onboard. The flight originated at Moscow Vnukovo. There was a "light drizzle," according to the Flight Safety Foundation's Aviation Safety Network. The aircraft first flew in 1986. S-Air also operates two Yak-42s, three Tu-134s and two additional 125s.
United Airlines will terminate the agreement under which Mesa Air Group operates 10 Dash 8s as United Express. Mesa said it plans to work with UA on an "orderly transition plan" that will result in the aircraft leaving UA service by April 30. Leases on four aircraft expire on that date. "We face a challenging period during the next few quarters and will strive to mitigate the impact of the termination of aircraft under our codeshare agreement with United Airlines," Mesa Chairman and CEO Jonathan Ornstein said.
Southwest Airlines pilots represented by the Southwest Airlines Pilots' Assn. ratified the five-year labor agreement reached in mid-September. The contract runs through Aug. 31, 2011, and was ratified by 87.5% of voting members. The union said more than 93% of the approximately 5,900 members participated. The vote concluded a process that began in September 2006.
