Norwegian continues to report rising traffic, load factors and yield despite the downturn and is committed to continuing to challenge SAS for market share. Fresh off an improved first quarter ( ATWOnline, April 27), the carrier transported 861,530 passengers in April, an 18% increase year-over-year. Load factor rose 3 points to 79% and yield was up 6% to NOK0.63 (9.69 cents). It took delivery of its 44rh aircraft, a 737-800, last month.
American Airlines said it deployed a 757 on New York JFK-Brussels service last week, the first of 18 757s it is reconfiguring with 166 economy/16 business-class seats for international flying. The aircraft feature "new seats, new cabin interiors and updated [IFE]," AA said. The 18 757s (out of the 124 it operates) will be reconfigured by year end and will serve select transatlantic and Latin American routes.
Mechtronix World Corp. is expanding research and development capabilities in anticipation of what officials see as a growing need for additional pilot training programs. The company, which unveiled its new facility last week in Montreal, obtained C$39 million ($33.4 million) in funding from Richardson Capital of Calgary and C$7 million from Business Development Bank of Canada.
Etihad Airways unveiled a new first class cabin containing 12 individual suites with sliding doors, changing room/wash basin and a lie-flat, 80.5-in. seat with built-in massager. It invested $70 million in the upgrade. "Competition for premium customers remains intense and during the last 12 months a number of airlines have unveiled significant enhancements to their first class cabins, with others deciding to remove the cabin completely from their aircraft," CEO James Hogan said.
International Assn. of Machinists and Aerospace Workers said Friday that it has launched a campaign to replace the International Brotherhood of Teamsters in representing United Airlines' 9,000 mechanics. IAM, which currently represents 17,000 UA employees including ramp workers, claimed it has been asked by a "diverse group" of UA mechanics to step in. It said its focus would be on securing a pension plan for the mechanics.
Air China launched a mobile check-in service Friday, becoming the second Chinese carrier after China Southern Airlines to offer the option ( ATWOnline, April 9). CA started trialing the service on April 30 and said it received positive feedback from passengers. It will be available on all domestic routes from Beijing save Tibet, while CZ offers it only on Guangzhou-Zhengzhou flights.
Air Canada reported a first-quarter net loss of C$400 million ($342 million), widened 38.9% from a C$288 million loss in the year ago period, and new President and CEO Calin Rovinescu said the carrier is urgently seeking relief from its pension funding obligations.
Alitalia Chairman Roberto Colaninno told La Repubblica that load factors have climbed to 65%-66% from 43% in January, according to Reuters. He said breakeven load factor is 67%-68% and that AZ's market share in Italy has risen from January's 54% to 61%-62%. Delta Air Lines flew 15.41 billion system RPMs in April, a 7.7% decline from the year-ago month. Capacity dropped 7.1% to 18.94 billion ASMs and load factor fell 0.5 point to 81.4%.
Pinnacle Airlines Corp. parent of Pinnacle Airlines and Colgan Air, reported a first-quarter profit of $18.8 million compared to $1.2 million in the year-ago period, thanks largely to a one-time gain of $16.5 million relating to an income tax settlement and other nonrecurring items. Excluding those gains, its profit was $2.7 million. It also took a $600,000 charge related to the loss of the Colgan Q400 that crashed near Buffalo in February ( ATWOnline, March 26).
Gategroup, the onboard services company that is the parent of Gate Gourmet, will list its shares and begin trading on the SIX Swiss Exchange on May 12. No new shares will be issued and there is no public offering of the company's 19.7 million shares from any existing owners. Gategroup posted a CHF93 million ($82 million) net profit in 2008.
Source close to the Sukhoi Superjet program questioned an RIA Novosti report that Russia's United Aircraft Corp. plans to reduce its Superjet 100 production to 74 aircraft from the 230 it planned to build by 2012. It still plans to deliver the first SSJ this year to launch customer Aeroflot. The source told ATWOnline that he had received no official word regarding any SSJ production cut, but the Moscow-based news agency said UAC planned to build only 196 commercial aircraft in 2009-12 rather than the 405 approved for production two years ago.
Copa Airlines and Aero Republica parent Copa Holdings reported a $71.6 million profit in the first quarter, up an impressive 81.3% from the $39.5 million earned in the year-ago period. Operating revenue climbed 4.3% year-over-year to $308.8 million but unit cost fell 16% to 9.9 cents and 11% to 6.8 cents excluding fuel. Operating income of $68.9 million was a 33.3% improvement over the $51.7 million reported last year. Copa said it recorded both a $16.2 million noncash gain and a $19.9 million loss on its fuel hedges during the quarter.
Air Berlin will keep its order for 25 787s, a spokesperson told ATWOnline, and now expects the first aircraft in 2013. Its long-haul plans remain in flux. AB management is talking with employees at its LTU subsidiary about a possible integration of its long-haul operation into AB and the spokesperson said the future of both carriers' long-haul operations "depends on the results of these talks." Discussions with the Vereinigung Cockpit union are scheduled later this month.
TAM reported first-quarter net income of BRL56.9 million ($26.7 million), up 21.8% from BRL46.7 million in the year-ago period, citing increased revenue generated by new long-haul flying and lower fuel costs. First-quarter revenue lifted 17.1% to BRL2.74 billion including a 29.9% hike in gross international passenger revenue to BRL796.9 million. Expenses heightened 13.1% to BRL2.45 billion owing to higher maintenance costs and real depreciation. It said operating profit more than doubled to BRL187.8 million from BRL83.4 million last year.
Korean Air posted a first-quarter net loss of KRW526 billion ($413 million), widened 61% from a net loss of KRW326 billion in the year-ago period, marking its sixth consecutive quarter in the red. Chairman and CEO Yang Ho Cho said the "deepening global economic crisis [in addition to] the weakening Korean won [and] sliding travel and cargo demand" had a "direct impact" on KE's bottom line.
Jazeera Airways earned a net profit of KWD4.5 million ($15.2 million) in 2008, nearly double the KWD2.3 million reported in 2007, on a 40.3% increase in operating revenue to KWD48.7 million. Chairman Marwan Boodai said yield rose 18.5% and unit cost was down 8%. "The strategic initiative to de-leverage the business in 2008 with the sale and leaseback of some assets has strengthened our balance sheet at exactly the right time, considering the current credit crisis," he said. Jazeera, which operates eight aircraft to 25 destinations, will increase 2009 capacity by 51%.
Aeroflot board "decided to continue the study on the rationale of acquiring" Alexander Lebedev's 49% stake in Blue Wings, according to a statement cited by Reuters ( ATWOnline, May 6).
EU and Canada Wednesday signed a far-reaching open skies agreement under which airlines from each side may operate freely without any restrictions on the number of carriers or flights between any airport in the EU and any in Canada. Agreement contains provisions for a phased easing of restrictions on control and ownership of carriers, leading to the right to set up airlines in the territory of the other party in the third phase and the right to own and control 100% of a foreign carrier in the fourth phase. "This will generate major benefits for consumers and airlines. .
Boeing took cancellations for 25 787s during the week ended May 5, according to its Orders and Deliveries website, but it did not say whether the cancellations came from a single or multiple customers. Including the eight Dreamliners firmed up by Gulf Air last month and the 32 cancellations previously announced ( ATWOnline, April 17), the manufacturer's 787 net order book for the year to date stands at -49.
Tarom yesterday took delivery of its first 68-seat ATR 72-500 as part of a contract signed last year for two valued at $37 million. It will take the second before year end and currently operates seven 42-500s. CEO Ruxandra Brutaru said the new aircraft will be used to launch flights to Dubrovnik and Zagreb.
The European Parliament accepted the European Commission's proposal to suspend the "use it or lose it" slot rule at EU airports during the current summer schedule.
IATA said France has adopted one-stop security protocols allowing passengers screened at a European airport to bypass a second screening when connecting in France. One-stop security will begin at Lyon and selected Paris Charles de Gaulle terminals, then expand. IATA estimated it will save $30 million a year.
Jet Airways announced the launch of a new economy service called Jet Airways Konnect that will be available on select domestic routes starting today. "Designed to meet the needs of the low-fare segment," JAK will feature reduced fares and buy-on-board meals and will be available on two 737s and six ATR 72-500s to start.
International Communications Group announced an agreement with Rockwell Collins to provide its ICG NxtLink Iridium communications systems (voice and datalink flight deck communications) for air transport customers. Rockwell Collins is marketing the devices as the IRT 2110 (dual channel) and IRT 2120 (tri channel) Iridium systems. Units are available for delivery.
