Thai Airways suffered a THB5.4 billion ($156.5 million) loss in the second quarter, a 41.6% improvement from the THB9.25 billion deficit reported in the year-ago period. Revenue fell 31.9% to THB34.63 billion and expenses were down 34.8% to THB39.92 billion. Capacity was cut 11.2%, but a 22.7% fall in RPKs lowered load factor 9.9 points to 66.2%. The airline said the traditional low season, the global downturn, the H1N1 flu and domestic political unrest combined to produce the loss. Yield dropped 11.6% to THB2.37.
Oman Air will launch flights from Muscat to Frankfurt (four-times-weekly from Sept. 30) and Munich (thrice-weekly from Oct. 1) aboard A330-200s. Routes will be operated with A330-300s from December. Eastern Airways will launch five-times-weekly flights to Bergen from both Newcastle and Aberdeen on Oct. 5.
Southwest Airlines and US FAA were working toward accommodation today on a plan and timetable to replace unapproved exhaust gate assembly hinge fittings on some 49 of the airline's 737s. When the agency became aware of the existence of the unapproved parts, it issued a letter giving SWA conditional approval to operate aircraft with the parts for 10 days, a deadline that expires today at 5 p.m. local time ( ATWOnline, Aug. 27).
Beset by continuing problems with the 787 program, Boeing Commercial Airplanes President and CEO Scott Carson announced that he will retire from the company at year end. He will be succeeded effective today by Boeing Integrated Defense Systems President and CEO Jim Albaugh. A Boeing spokesperson said Carson will help with the transition and work on special projects during his remaining time with the company.
Frontier Airlines reported a $17.8 million net profit in July, reversed from a $3.2 million loss in the year-ago month. Operating profit was $24.9 million compared to a $1.2 million surplus in July 2008. Results were impacted by $5.5 million in reorganization expenses. Mainline unit revenue fell 5.1% to 11.26 cents while unit cost was down 27% to 8.58 cents.
Lufthansa Cargo would consider giving up some or all of its fleet of 19 freighters if night flights are banned at Frankfurt, CEO Carsten Spohr told Reuters. A German court recently ruled that the Hesse state government should decide on whether to reduce or ban night flights. The state made a reduction to 17 flights per night part of its agreement to permit construction of a fourth runway at FRA in 2011. LH said it would require 23 nightly flights by 2020 for both passenger and cargo service, Reuters reported.
Aegean Airlines earned a €13.4 million ($19.2 million) profit in the first half of 2009, more than double the €5.5 million reported in the year-ago semester. Revenue rose 5% to €275.4 million. It cited falling oil prices and reduced maintenance and fuel costs associated with its recent fleet renewal. It took delivery of eight A320 family aircraft during the six-month period. Aegean transported 2.9 million passengers, up 9%, boosted by a 20% gain in international boardings to 1.3 million.
Kingfisher Airlines board yesterday approved measures to raise up to $100 million, largely through global depository receipts, in addition to the INR5 billion ($101.4 million) rights issue approved last month, according to a filing with the Bombay Stock Exchange cited by press reports from India. The board also approved a doubling of the carrier's authorized share capital to INR10 billion. All decisions are subject to shareholder approval.
Air India said it presented its turnaround plan to the government's Committee of Secretaries and that, "while appreciating the various measures taken by Air India, the committee felt that in some areas more aggressive cost reduction measures were required to be adopted and the company also needs to examine its strategic position with respect to its shareholders' objectives." AI said the committee directed the Ministry of Civil Aviation, in consultation with the Ministry of Finance, to present a loan or bailout proposal to the cabinet.
Austrian Airlines Group will end the short-time work program for approximately 2,500 ground staff at the end of September as planned, although short-time work for cabin staff will continue until year end. The company will hold talks this fall with employees regarding new labor deals as it seeks to cut labor costs by €150 million ($214.5 million). AAG and Lufthansa are expected to discuss additional details of their merger at a Thursday news conference in Vienna ( ATWOnline, Aug.
Gulf Air signed a four-year, $70 million loan agreement with Bahrain Islamic Bank that will be used partly to finance eight A320s expected to be delivered in the 2009 fourth quarter and 2010 first quarter.
China Southern Airlines reported net income of CNY25 million ($3.7 million) for the first half of 2009 based on international accounting standards, down 96.9% from the CNY818 million earned in the year-ago semester, thanks to government aid. According to yesterday's filing with the Shanghai Stock Exchange, the Guangzhou-based carrier received a subsidy of CNY1.52 billion during the period. Half-year operating revenue fell 9.2% year-over-year to CNY24.88 billion as CZ suspended fuel surcharges, while operating expenses dropped 12.6% to CNY22.27 billion on lower fuel prices.
ATR will make the "official presentation" of the first ATR -600 series aircraft, an ATR 72-600, at a ceremony in Toulouse on Oct. 1. Flight trials for the variant, which features a new cockpit and passenger cabin, began July 24. Flight trials for the smaller ATR 42-600 will take place next year. Service entry for both is expected in 2011. The 72-600, which is powered by PW127Ms, offers an additional 500 kg. MTOW and MZFW compared to today's versions. ATR said it holds orders for 54 72-600s and five 42-600s.
Austrian Airlines Group, which is being acquired by Lufthansa (see item above), announced that it will reduce its management staff by approximately 45% from 347 currently, including cutting the number of VPs from 24 to 14. Together with 14 senior directors "who manage the staff functions and a number of selected specialist divisions," they will make up the top management of the group. "By taking this step, we are creating more efficient structures and simplifying our decision-making processes," Executive Board Members Andreas Bierwirth and Peter Malanik said in a statement.
Messier Services signed a nine-year agreement with JetBlue Airways covering the periodic exchange and overhaul of the landing gear on the carrier's fleet of 113 A320 family aircraft. Monarch Aircraft Engineering reached agreement with Oy Air Finland to provide line maintenance technical handling at Manchester International with daily checks and unscheduled maintenance for an Oy Air 757.
CAAC last week approved China Eastern Airlines' acquisition of Shanghai Airlines, according to CEA GM Ma Xulun. The merger still requires the approval of both carriers' shareholders, but CEA said it has started the merger process and expects the transaction to be completed by year end ( ATWOnline, Aug. 10). A shareholders conference is planned for Oct. 9 to consider and vote on the merger and approval is expected.
Kale Consultants said it was chosen by IATA "as the prime technology supplier" for development of the association's "Simplified Interline Settlement initiative." SIS aims to standardize, facilitate and expedite interline billing and settlement in the airline industry, in large part by removing paper from the billing and settlement process. IATA Senior VP-Industry Distribution and Financial Services Tom Murphy said SIS will generate $500 million in annual savings for the industry.
Air France and China Southern Airlines announced an expansion of their codeshare agreement covering CZ's flights from Guangzhou to Kunming, Xiamen and Wenzhou and AF's service from Paris Charles de Gaulle to Madrid, Milan Malpensa and London Heathrow. Air Canada will launch summer seasonal service to Athens and Barcelona from Toronto and Montreal next year. Subject to government approval, service will be operated June 3-Oct. 18 using 244-seat 767-300ERs. Both routes will be operated six days per week, with half the flights originating in Toronto and half in Montreal.
Lufthansa Systems will provide Dutch carrier transavia.com with FMS data from its Lido navigation database. Transavia.com already uses the Lido OC flight planning solution and Lido RouteManual navigation charts.
The European Commission Friday officially approved Lufthansa's proposed acquisition of Austrian Airlines Group, saying LH alleviated antitrust concerns by agreeing to reduce service between five European cities and Vienna. Separately, AAG announced draconian cuts to its management structure (see item below).
Japan Airlines, coming off a more-than-$1 billion loss in its fiscal first quarter ended June 30, Friday announced a "new corporate organization structure" aimed at streamlining internal processes and improving customer service.
Malaysia Airlines MD and CEO Idris Jala resigned from the carrier upon being appointed to join the government as a cabinet minister in charge of a new Performance Management and Delivery Unit. CFO Azmil Zahruddin was named the airline's CEO effective immediately. Jala leaves MAS having overseen one of the more remarkable turnarounds in recent airline industry history. He joined the carrier as MD/CEO on Dec. 1, 2005, with little background in air transport, having been recruited from Shell Malaysia.
