China Southern Airlines expects to its 2008 net loss to be worse than previously expected owing largely to its decision to retire older aircraft whose value continues to decrease in the current economic downturn. It said in a filing to the Shanghai Stock Exchange that the impairment "will, to some extent, have a negative impact on the 2008 financial results of the company."
US Airways said it will test the Lumexis Fiber-To-The-Screen IFE system on certain flights. The FTTS fiberoptic technology reduces system weight by up to 50% and can offer high-definition content, the companies said. Inflight Canada designed and monitored the installation of an FTTS system on a US A320 that will serve Phoenix, Atlanta and Orange County.
ALTA member airlines carried 10.6 million passengers in January, up 5.8% from the year-ago month, fueled by strong domestic and Latin American traffic that offset weaker demand to the US and Europe. RPKs rose 3.2% to 15.79 billion against a 4% increase in capacity to 21.58 billion, lowering load factor 0.5 point to 73.1%. US Airways said February consolidated passenger RASM fell 9%-11% year-over-year, although total RASM dropped just 5%-7% thanks to a la carte revenue initiatives. It flew 4.19 billion consolidated RPMs, down 9.3%, against a 9% drop in ASMs to 5.48 billion.
Ryanair CEO Michael O'Leary told a Dublin tourism conference this week that charging for lavatory use "is not likely to happen, but it makes for interesting and very cheap PR." He made worldwide headlines two weeks ago with his proposal to charge passengers £1 ($1.38) per use and continued last week, saying he was "serious" about the move and had discussed implementation with Boeing ( ATWOnline, March 9).
American Airlines announced a new 17-year lease at Dallas Love Field but will suspend American Eagle flights at the airport from June 11 until terminal renovations are complete in 2013. Eagle serves Chicago O'Hare from DAL."We have every intention of returning service to Love Field when the new terminal is completed," AA VP-State and Community Affairs Kevin Cox said. AA does not operate mainline flights at the airport, which is dominated by Southwest Airlines. Separately, Eagle will launch a daily Dallas/Fort Worth-Santa Fe flight on June 11.
Claiming that some airlines are "overreacting" to the current downturn with hasty reductions of their networks, Qatar Airways CEO Akbar Al Baker confirmed that the carrier's winter expansion will include its first services to Australia.
Bmi Group yesterday confirmed a £99.7 million ($137.2 million) loss in 2008, reversed from a £7 million profit the prior year, and said it plans to reduce costs by an additional £45 million this year and is negotiating a pay freeze with employees.
Aegean Airlines' ambitions were checked last week when it was denied the right to purchase rival Olympic Airlines, but the carrier said it has continued on a "healthy and dynamic growth path" and finished 2008 with a €29.5 million ($37.5 million) profit, down only 18% from the €35.8 million earned the previous year.
The US National Transportation Safety Board late Wednesday issued an "urgent safety recommendation" calling for Rolls-Royce to "redesign" the Trent 800's fuel/oil heat exchanger to prevent the fuel feed system icing that is believed to have caused both the uncommanded loss of thrust on a Delta Air Lines 777-200ER last November and the dual rollback that led to the January 2008 British Airways -200ER crash landing at London Heathrow.
Malaysian government finally agreed to fund the construction of a new low-cost terminal at Kuala Lumpur International costing MYR2 billion ($541 million). The promise to build the facility, scheduled to be completed in the second half of 2011, ends an impasse between the government and AirAsia, which had threatened to build its own exclusive airport just east of the capital in order to ease congestion at the current terminal that can handle only 15 million passengers per year ( ATWOnline, Feb. 3).
American Airlines yesterday said that "early speculation" regarding Wednesday's MD-80 JT8D-200 engine failure that led to debris falling on a New York City neighborhood and an emergency landing at New York JFK is that an object was sucked into the engine and damaged fan blades, according to the Associated Press ( ATWOnline, March 12).
Air France KLM confirmed it intends to proceed with an order for approximately 100 long-haul aircraft, although the timeline has been changed slightly owing to the present economic environment. "Air France KLM's plan to launch a call for tenders for around 100 Airbus or Boeing medium-capacity long-haul aircraft, initially scheduled for 2008, is being maintained. The order could be placed by the end of the year, or maybe a little later," a spokesperson told ATWOnline. The group has both Airbus and Boeing aircraft in its long-haul fleet.
CSA Czech Airlines posted a 2008 pre-tax profit of CZK500 million ($23.6 million), compared to a CZK111 million profit in 2007. It said pre-tax earnings under IFRS came to $550,000, reversed from an $8.8 million loss on a similar basis the prior year. It said fuel and currency hedges were the difference and that absent those its fuel expense would have increased by CZK1.2 billion. However, falling demand in the second half of last year cost approximately CZK400 million in lost revenue.
Alaska Airlines and the Assn. of Flight Attendants-CWA announced the ratification of a two-year contract extension (to April 2012) covering 2,830 employees. The amended deal offers a 1.5% pay increase in 2010 and 2011 and participation in a performance-based incentive plan already offered to AS's dispatch and management employees.
AirAsia X yesterday commenced its five-times-weekly Kuala Lumpur-London Stansted service aboard a 286-seat A340-300 ( ATWOnline, Oct. 14, 2008). AirAsia appointed IAM, Network Cargo Services, FlyUs, Global Cargo Management and ACT as cargo sales agents in Western Europe. Aviance handles at STN.
Virgin America reported limited 2008 fourth-quarter financial figures yesterday and said it posted a $27 million operating loss, narrowed from the $59.9 million deficit in the year-ago period, its first full operating quarter. Revenue more than tripled to $109.7 million and expenses rose 42.5% to $136.7 million. Load factor soared 19.1 points to 81.2%, unit revenue was up 86.7% to 9.28 cents and operating CASM fell 12.7% to 11.57 cents. VX released limited nine-month figures last month ( ATWOnline, Feb. 3).
US FAA asked the US Court of Appeals to suspend legal proceedings contesting its intention to conduct slot auctions at Newark, New York JFK and LaGuardia ( ATWOnline, Jan. 23), saying "it is inappropriate to put the court and the parties to the burden of briefing the complex issues in the case until a decision on whether to withdraw the rules is made." The Port Authority of New York and New Jersey and the Air Transport Assn. were scheduled to file briefs by April 15.
Qantas and Etihad Airways announced a codeshare agreement effective March 29 under which QF will place its code on EY's 21 weekly flights from Abu Dhabi to Sydney, Melbourne and Brisbane via Singapore as well as connections from AUH to Amman, Beirut and Bahrain. Etihad will place its code on "selected" QF flights between Australia and Auckland and on "a range" of Adelaide-MEL, SYD-BNE and SYD-Cairns flights, Qantas said. The deal is designed to open up the Middle East market for QF customers while countering the growing influence of Emirates in Australia.
Austrian Airlines Group reached an agreement with unions representing 2,600 ground workers (with a few exemptions) to implement reduced schedules and pay over the six months starting April 1. Hours and pay will be cut 20%/10% or 10%/5%. AAG said it holds an option to extend the six-month period. In addition, pension fund contributions will be cut 75% for one year. AAG said the move "is a very important step towards overcoming the crisis" and it is proceeding with negotiations with Austrian Airlines and Tyrolean Airways cabin staff.
American Airlines MD-80 en route from New York LaGuardia to Chicago O'Hare made an emergency landing yesterday at New York JFK after an apparent engine failure. Metal parts, believed to be from one of the aircraft's engines, fell on a neighborhood in New York City's Queens borough. AA confirmed that pilots declared an emergency shortly after takeoff owing to an engine failure. All 88 passengers and five crew were uninjured. There were no injuries reported on the ground.
Lufthansa Group's firm order for 30 110-seat CSeries valued at $1.53 billion, announced yesterday, puts to rest any doubt that the program will take off, said Bombardier Commercial Aircraft President Gary Scott.
A340 production rate has fallen to one aircraft "or perhaps less" per month, Airbus VP-Marketing Andrew Shankland said at this week's SpeedNews Commercial Aviation Industry Suppliers Conference in Los Angeles. "The A340 is pretty much built to order," he explained, while noting it has "found a niche as a VIP airplane." He attributed slow sales to higher fuel prices, which place the four-engine jet at a disadvantage "from a purely fuel perspective" compared to twin-engine widebodies.
Lufthansa Group concluded a volatile 2008 with a €599 million ($759.8 million) net profit, down 63.8% from the hefty €1.66 billion earned in 2007, and admitted that it expects declines in passenger numbers, revenue and operating profit this year.
