British Airways and unions are set to resume discussions today on 3,700 job cuts and working conditions, a GMB union spokesperson told Sky News. "Following three days of talks at [the UK Advisory, Conciliation and Arbitration Service] last week, talks are due to resume. . .and some progress has been made. We do not expect the talks to conclude until later in August," the spokesperson said. BA had sought agreements by June 30 but has reached one only with its pilots ( ATWOnline, July 14).
ExpressJet Holdings reported a $13.1 million second-quarter loss, an improvement from the $34.3 million deficit during the same period a year ago. Revenue plunged 61.9% to $170.6 million, a decline attributed to a drop in passengers and the suspension of its ExpressJet branded and Delta Air Lines operations. Operating loss narrowed to $10.8 million from $43.7 million as expenses sank 29.8% to $20.3 million. "These results are reflective of the worldwide drop in passenger revenues, which are forecast to continue through 2009," President and CEO Jim Ream said.
Assn. of Flight Attendants United Airlines chapter, in a communication to members, said 1,926 flight attendants had been accepted for voluntary furloughs. US District Court reversed a bankruptcy court ruling that voided Frontier Airlines' collective bargaining agreement with some 325 mechanics represented by the International Brotherhood of Teamsters.
US scheduled passenger airlines employed 6.8% fewer fulltime-equivalent workers in May than in the year-ago month, according to the Dept. of Transportation's Bureau of Transportation Statistics. It marked the 11th consecutive month of decline. The seven network airlines reduced their May employee rolls by 8.2% year-over-year, LCCs' rose 1.2% and regionals' fell 7.7%.
Allegiant Air parent Allegiant Travel Co. continued to defy the shrinking economy during the second quarter, launching 20 new routes and posting a net profit of $23.9 million that compared to earnings of just $2.6 million in the corresponding 2008 period.
Assn. of European Airlines expressed concern over "the continuing trend on the part of airports across Europe to increase the fees they charge to their airline customers in order to compensate themselves for lower traffic levels during the current recession." It said the practice particularly is evident in Germany, where Frankfurt Airport is proposing an 8.4% boost next January to fund future expansion on top of a 4.6% hike for "central infrastructure." Munich announced a 4% increase in charges.
Air Berlin will begin serving Pristina from Dusseldorf, Frankfurt, Hanover and Munich up to twice-weekly, daily from Zurich and weekly from Geneva on Nov. 4.
Niki wants 50% of the traffic rights between Vienna and Eastern Europe if Lufthansa's acquisition of Austrian Airlines Group is confirmed, President Niki Lauda told ATWOnline. "So far AAG has all the traffic rights to Eastern Europe, except our daily Vienna-Moscow DME service," Lauda said. "We have no idea how and if the merger will be completed. My company has to answer an additional 40 question from the European Commission regarding the process" by July 27.
Ryanair said it "will continue to explore the concept of 'fare-free standing' flights with Boeing and the relevant aviation authorities in the US and EU" after 66% of 120,000 passengers participating in an online poll said they would be willing to stand in the cabin on flights 1 hr. or shorter if the fare was free. The LCC said 42% would stand for half price and 60% felt standing should be an option ( ATWOnline, July 7).
Delta Air Lines posted a second-quarter net loss of $257 million, narrowed from a $1.04 billion deficit in the year-ago period, with results for both quarters heavily affected by special charges. For the current period, $58 million in expenses related to DL's acquisition of Northwest Airlines and fuel hedge losses of $390 million pushed it into red. Absent these charges, it would have reported a net profit of $191 million. In the year-ago period, it would have earned $137 million excluding $1.3 billion in special charges largely related to goodwill impairment.
Lufthansa is considering cutting one flight attendant from each long-haul flight, according to an internal document cited by Neue Rhein Zeitung. The move, if enacted, would save the airline approximately €42 million ($59.6 million) and affect 750 fulltime jobs. It also is looking at ways to increase its ability to reduce its cabin staff on flights with lower load factors. A spokesperson would not confirm or deny the report but told ATWOnline that LH is "calculating everything" in terms of cutting costs but that "nothing is decided now. Everything is in flux."
EASA issued an emergency airworthiness directive requiring ATR 42 and ATR 72 operators to inspect or replace within 10 days cockpit forward side windows that have accumulated more than 2,000 flight cycles. The AD, which enters effect today, follows a recent incident during which the left forward side glass window on an ATR 72-212 "blew out" during a ground pressure test, EASA stated.
TAM said it will issue 600 nonconvertible bonds worth a combined BRL600 million ($313 million) on July 24, scheduled to expire on July 24, 2013. It said the proceeds will be used to "reinforce" its working capital.
National Air Traffic Controllers Assn. expressed guarded optimism regarding US FAA's announcement Monday that is "moving away from a culture of blame and punishment" in the reporting of operational errors by controllers ( ATWOnline, July 21). "We're hopeful that it is a sign of good things to come but we are a little puzzled by what the message really is here," a NATCA spokesperson told ATWOnline yesterday.
US National Transportation Safety Board Chairman Mark Rosenker announced his resignation yesterday, effective when a new chairman/member is appointed. He is the second member of the five-member board to announce their departures this week ( ATWOnline, July 21) and the third this year ( ATWOnline, Feb. 23).
Ryanair will reduce winter schedule capacity at London Stansted by 40%, operating just 24 aircraft from the airport compared to the present 40. CEO Michael O'Leary said the decision "shows just how much [UK Prime Minister] Gordon Brown's £10 ($16.46) tourist tax and the BAA Monopoly's high airport charges are damaging London and UK tourism and the British economy generally," while reiterating that STN is one of Ryanair's two most expensive bases (along with Dublin).
Continental Airlines reported a second-quarter net loss of $213 million, widened from a $5 million deficit in the year-ago quarter, and announced it will cut 1,700 additional jobs "across the company" to mitigate the impact of "significant declines in high-yield traffic." Speaking to analysts and reporters, CO executives said business passengers have "curtailed travel" or switched to economy-class tickets. Compounding the 27% year-over-year dip in premium tickets are demand-stimulating low fares on economy seats, President and COO Jeff Smisek said.
Snecma won a six-year engine service per hr. contract from WindJet covering the CFM56-5As powering the Italian airline's A319s and A320s. AJ Walter Aviation signed a power-by-the-hr. contract with Belle Air covering the Albanian airline's A320 family aircraft. Belle plans to operate up to seven Airbus narrowbodies within three years.
East Star Airlines asked CAAC for permission to resume operations despite a Wuhan court's rejection of takeover offers from China National Aviation Fuel Holding Co. and Shanghai YuField. East Star was forced to suspend operations and enter bankruptcy owing to its heavy debt burden and the March collapse of a share sale deal with Air China parent CNAC ( ATWOnline, July 17).
Delta Air Lines is adding a $5 charge for each of the first two pieces of luggage checked at an airport ticket counter, kiosk or curbside on domestic tickets purchased on/after July 16 for travel from Aug. 4. Bag fees paid online (DL charges $15 for the first bag and $25 for the second) will not be subject to the $5 fee.
United Airlines parent UAL Corp. posted a second-quarter net profit of $28 million largely owing to $305 million in noncash mark-to-market fuel hedge gains, much improved over a $2.74 billion loss in the year-ago period when goodwill impairment charges dragged down the bottom line.
Southwest Airlines returned to profit after three consecutive quarters in the red, earning $54 million in the second quarter, down 83.2% from $321 million in the year-ago period, although it warned that "based on weak travel demand and fuel price volatility, we cannot predict a profitable third quarter 2009."
