SAS Group narrowed its first-quarter loss by nearly 36% to SEK748 million ($91.4 million) from the SEK1.16 billion reported in the year-ago period, although it said that "uncertainty with regard to when recovery will begin is considerable" and that it is pressing ahead with its Core SAS efficiency program.
Air Berlin said the German Federal Cartel Office approved Pegasus Airlines parent ESAS Holding's acquisition of approximately 15% of the voting shares in AB ( ATWOnline, March 31). It also announced the establishment next month of a Corporate Users Advisory Council that will "monitor the development of the business travel sector" and "offer a more effective and flexible response to immediate market conditions." Former German Travel Management Assn. Chairman Michael Kirnberger will head the council.
Ryanair said it will allow "price comparison only" websites to access its timetable, seat availability and fare information but will continue to ban reselling through so-called screenscraper sites. The LCC will introduce a license agreement for an annual charitable donation of €100 ($131) to the "price comparison only" websites.
Aer Lingus yesterday said that its full-year loss "will be materially below the bottom of the range of current market expectations" and that it is reorganizing its senior management structure in order "to safeguard the long-term viability of the group," according to Chairman Colm Barrington. The Irish carrier said six weeks ago that it expected its operating loss this year to be "larger" than the €159.5 million ($209.7 million) posted in 2008 ( ATWOnline, March 12).
Finnair reported a first-quarter loss of €18.6 million ($24.5 million), reversed from a €3.1 million profit in the year-ago period, as "the potential for profitability has run into the sand due to feeble demand and a collapse in price levels," President and CEO Jukka Hienonen said.
China Southern Airlines reported a CNY222 million ($32.5 million) first-quarter profit, down 71.3% from the CNY796 million earned in the year-ago period, on a 9.4% decrease in operating revenue to CNY12.93 billion. Operating expenses climbed 3.3% to CNY13.71 billion, and analysts credited "the return of a CNY1.07 billion aviation construction fund" for the profit. Foreign exchange losses played a role in the year-over-year decrease. The Guangzhou-based carrier did not release further figures.
LOT Polish Airlines is nearing insolvency, Management Board President Sebastian Mikosz was quoted as saying by the Warsaw Business Journal and Rzeczpospolita, which reported that the auditor is unwilling to sign off on the airline's accounts and that its survival is uncertain. It lost €155 million ($203.8 million) last year and reportedly does not have the cash to pay its bills. Mikosz said layoffs will be necessary and that new investment or acquisition by a competitor are the most likely solutions to the crisis.
IATA said airline profitability remained weak in the first quarter as traffic and yields declined, offsetting the benefits of lower fuel prices and capacity cuts, but "pessimism about the outlook ahead. . .has softened somewhat," according to its latest Airline Business Confidence Index released yesterday. IATA's survey of airline members revealed that carriers "have on balance moved away from indicating significantly further reductions in profitability," the organization said.
EgyptAir yesterday launched operations at Cairo International's new Terminal 3 with a daily service to New York JFK. MS and several Star Alliance carriers plan to transfer operations to the new facility over the next month.
Transaero launched thrice-weekly Moscow Domodedovo-Blagoveshchensk aboard a Tu-214. Jetstar Asia will launch daily Singapore-Penang service on July 1, increasing to twice-daily on Oct. 1.
Ukraine International Airlines posted a $6.2 million profit in 2008, its ninth consecutive year in the black. It reported a $12.9 million profit in 2007. Revenue last year was $371 million, up 36%, and operating profit rose nearly 20% to $22 million. It said the bottom line was impacted by a $7.6 million foreign exchange loss. UIA currently operates 17 737s.
Porter Airlines will invest C$45 million ($37.2 million) in a new 150,000-sq.-ft. passenger terminal at Toronto City Centre Airport, with the first phase scheduled to open in November. All 10 gates, customs facilities and both passenger lounges will be operational by next spring. Porter plans to be operating 18 Q400s by year end and will launch a YTZ-Thunder Bay service on June 26.
Airlines scheduled 6% fewer flights this month compared with April 2008, with a 3% drop in seat capacity, according to the latest statistics from OAG. It marks the ninth successive month of declines and represents a reduction of more than 136,000 flights and 9 million seats year-over-year. Flight schedules within Europe are down by 8% while capacity is off 7% with 4.7 million fewer seats on offer. Figures for North America show downturns of 9% in domestic frequencies and 8% in capacity, with a 6% drop for flights and capacity to/from the region.
AeroLogic, the joint venture between Lufthansa Cargo and DHL Express, will take delivery of its first 777-200F in May and confirmed that it will start commercial flights on June 29. A second aircraft will join the fleet in July.
Air India parent National Aviation Co. of India announced that Ministry of Civil Aviation Joint Secretary and Financial Adviser Bharat Bhushan will serve as interim chairman and MD replacing Raghu Menon. Bhushan, 54, has held a variety of government positions for the past 30 years. No reason was given for the government's decision to replace Menon, according to press reports from India. A search for a permanent replacement is underway.
American Airlines said the US Dept. of Transportation issued a scheduling order establishing a six-month timeframe for its decision on the application for antitrust immunity from AA and oneworld partners British Airways, Iberia, Finnair and Royal Jordanian. A decision now is expected by November.
Boeing received a commitment from Alaska Airlines for five 737s and took one 747-8 cancellation during the week ended April 21, according to its 'Orders and Deliveries' website. The customer for the 747 was unidentified. The manufacturer now has orders for 40 gross and seven net aircraft this year. Separately, Boeing said 25% of the design releases have been completed for the 747-8 Intercontinental. "The engineering is proceeding as planned," VP and GM-747 Program Mo Yahyavi said.
Air Senegal International suspended all operations last Friday. According to press reports, disputes between 51% owner Royal Air Maroc and the Senegalese government over management, control, audits and money owed resulted in the shutdown. RAM provided two 737-700s to the subsidiary and has withdrawn both, leaving ASI with just one -700 and one Dash 8. "For several weeks Royal Air Maroc has warned its Senegalese co-shareholders that there was a risk Air Senegal would stop its activities," RAM said in an April 24 statement.
Gulf Air chose CFM56-5Bs to power 15 new A320s scheduled for delivery from late this year to 2012. The deal is worth approximately $270 million, CFM International announced. Engines will feature the Tech Insertion configuration introduced in September 2007.
Clickair launched a facility called Lock your Fare that guarantees ticket prices for a period of either 24 or 72 hr. with an option to extend the "protection" period by a further 24 hr. Prices for the service start at €2 ($2.65).
