Cathay Pacific Airways reported its first full-year net loss in a decade, posting a 2008 deficit of HK$8.56 billion ($1.1 billion), reversed from net income of HK$7.02 billion in 2007.
Air France KLM yesterday said that owing to a "sharp decline in demand," summer schedule (March 29-Oct. 25) capacity will be down 3.4% year-over-year rather than the 2% announced last month ( ATWOnline, Feb. 16). The reduction will comprise 3.4% cuts on both its long-haul and medium-haul networks. AF will reduce ASKs 2.7% (2.5% long-haul, 3.1% short/medium-haul) without eliminating any routes save Paris Charles de Gaulle-Chennai, which will be suspended due to "heavy losses," and Paris Orly-Valladolid.
Oman Air detailed some of its long-haul expansion plans ( ATWOnline, March 6) and will operate flights from Muscat to Frankfurt (six-times-weekly from Sept. 17), Paris Charles de Gaulle (four-times-weekly from Oct. 11) and Colombo/Male (four-times-weekly from Oct. 12).
Ryanair confirmed yesterday that it plans to close all airport check-in counters by Oct. 1, forcing all passengers to check in online ( ATWOnline, Feb. 24). Check-in will be available from 15 days to 4 hr. prior to scheduled departure. Beginning March 19, Web check-in will be available to non-EU/EEA citizens, passengers with checked baggage--£5/€5 ($6.99/$6.32) per person per flight--and reduced mobility customers. Airport check-in will cost £10/€10 per person per flight.
European Commission yesterday cleared Greece's plan to privatize Olympic Airlines, saying it "does not give rise to state aid concerns." Last week the government selected Marfin Investment Group to buy OA's flight operations for €45.7 million ($57.8 million) and the assets of Olympic Airways Services for €16.7 million ( ATWOnline, March 9).
Airbus reported EBIT of €1.79 billion ($2.26 billion) in 2008, reversed from an €881 million operating deficit in 2007, and is expected to garner 300-400 gross aircraft orders this year, parent EADS said yesterday in its full-year financial report.
Air Berlin is evaluating the future of its long-haul network owing to the global economic downturn and a drop in bookings through tour operators. "We have implemented an internal AB efficiency program called 'jump.' This will include a look at whether our long-haul network can develop or whether we will focus on medium-haul routes in the future," a spokesperson told ATWOnline. AB is considering all possibilities, including canceling its long-haul flights or finding another platform for the operation.
Delta Air Lines said yesterday it is cutting international capacity by an additional 10% beginning in September, with transatlantic capacity down 11%-13% year-over-year through the 2009-10 winter schedule and transpacific capacity 12%-14% lower. In a memo to employees, CEO Richard Anderson and President and CFO Ed Bastian said the move is in response to "the worsening global economy," adding, "To achieve these capacity changes, we will exit low-performing markets, down-gauge certain routes, adjust frequencies and move some markets to seasonal service."
Hawaiian Airlines announced a tentative two-year labor agreement with the International Assn. of Machinists and Aerospace Workers-Clerical division representing 1,220 airport customer service, ramp, reservations, schedule planning, purchasing, records and crew scheduling employees. Members are expected to vote on the deal in the coming weeks.
Southwest Airlines suffered a 7% year-over-year decline in unit revenue during the first week of March, which followed a 2% fall through the first two months of this year ( ATWOnline, March 4), Chairman, President and CEO Gary Kelly said yesterday at the JP Morgan Aviation and Transportation Conference in New York. "I don't know that we've reached the bottom," he warned. SWA "had a quite satisfactory January revenue production. We saw things weaken sequentially in February," he said.
US Airways named Indigo Partners' Stephen Johnson as executive VP-corporate and general counsel. Austrian Airlines Group promoted GM-Americas Paul Paflik to VP-ground operations effective July 1.
Boeing Commercial Airplanes President and CEO Scott Carson said that despite an "uncertain and unstable" credit market, sufficient financing is available to back all aircraft deliveries through early 2010. "We believe that every aircraft scheduled to be delivered this year will be delivered," Carson said yesterday at the JP Morgan Aviation and Transportation Conference in New York, available via webcast. Boeing has made $1 billion available for financing, but only a "minimal" portion will be needed this year, he said.
Bombardier intends to move forward on a larger version of its popular 70-seat Q400 turboprop, Commercial Aircraft President Gary Scott said yesterday. Speaking at the SpeedNews Commercial Aviation Industry Suppliers Conference in Los Angeles, Scott said, "We will build a bigger version of this airplane. It is just the timing to be determined." Responding to a question from the audience, he said, "We're looking at how big, 90 or 100 seats, and should it be a simple stretch or more? Over the course of the next 12-24 months we will sort that out."
European Commission yesterday adopted a proposal for an amendment to its slots regulation that would see a temporary freeze of the "80-20 rule" during the March 29-Oct. 24 summer schedule. The rule requires airlines to use their slots at an 80% rate or return them to the pool. The new measure will apply for only one season.
American Airlines' booked load factors over the next four months are running 2.5 points behind last year's pace, Executive VP-Finance and Planning and CFO Tom Horton said yesterday at the JP Morgan Aviation and Transportation Conference in New York. International loads are down 4.5 points and domestic have fallen 2 points. "We're seeing some improvement from what we were looking at in January, but some is being driven by yields coming down from their highs in the fourth quarter," he said.
MexicanaClick, Mexicana's low-cost/regional subsidiary, will lease 25 717-200s from Boeing Capital Corp. Delivery will begin this month and aircraft will replace Click's F100s. The 717s will seat 20 in business class and 84 in economy. Contract includes provision of training for flight crew, cabin staff and maintenance technicians, as well as spare parts, by Boeing's Commercial Aviation Services division.
UFO trade union representing Lufthansa flight attendants authorized open-ended strikes by a 96%-4% voting margin, according to a union statement cited by Reuters. Negotiations between UFO and LH failed late last month ( ATWOnline, Feb. 19).
Delta Air Lines and Midwest Airlines forged an alliance that will include codeshare flights, linked loyalty programs, joint marketing efforts and expanded access to airport lounges across North America. Agreement announced yesterday is an extension of an existing deal between Midwest and DL subsidiary Northwest Airlines. The codeshare arrangement between Midwest and DL takes effect in June, with the loyalty program link to follow.
Gol said yesterday that it will take a "disciplined" approach to capacity in 2009, reducing overall full-year capacity by 1% year-over-year comprising a 25% cut in international ASKs and 5% growth in the domestic market.
Virgin Atlantic Airways will suspend its London Heathrow-Mumbai service on May 2, citing falling passenger demand and "irrational pricing" by rivals. Passenger numbers declined 18% between January and November 2008, VS said. Separately, it promoted Director of Engineering Steve Griffiths to COO, succeeding Lyell Strambi.
Air Canada and Jazz flew a combined 3.41 billion RPMs in February, a 10.5% decrease from the year-ago month. Capacity fell 11% to 4.28 billion ASMs, lifting load factor 0.4 point to 79.6%. EasyJet transported 3 million passengers in February, down 6.8% year-over-year. Load factor rose 2.4 points to 87%. Air Berlin said February unit revenue rose 12% year-over-year to €5.28 cents (6.68 cents). Passenger numbers declined 8.5% to 1.9 million on a 6.3% cut in capacity. Load factor fell 1.7 points to 72.5%.
The UK Department for Transport yesterday outlined its airport regulation reform proposals, which it claimed are designed to improve the passenger experience and call for CAA to promote the interests of passengers as a primary responsibility and to ensure that airports meet environmental obligations.
American Airlines on Sunday operated the first revenue flight with an Aviation Partners Boeing blended winglet-equipped 767-300ER. AA Flight 78 left Dallas/Fort Worth Sunday evening and arrived at London Heathrow yesterday morning. AA plans to install winglets on each of its 58 -300ERs by 2011 and expects to save up to 500,000 gal. of fuel per aircraft each year, depending in mileage. Winglets were installed at AA's Kansas City maintenance base. The airline's 124 757s and 77 737s already fly with winglets.
Aerolift Il-76 freighter en route from Entebbe to Mogadishu crashed in Lake Victoria shortly after takeoff yesterday and none of the four crew or seven passengers are believed to have survived. The aircraft was chartered by Dynacorp to ferry equipment and peacekeepers for the African Union mission in Somalia. It marked the second fatal Aerolift accident in fewer than three weeks as it followed the Feb. 20 crash of an An-12 freighter on takeoff after a refueling stop in Luxor ( ATWOnline, Feb. 23).
