Air Canada reported a 2008 net loss of C$1.03 billion ($827.6 million), reversed from a profit of C$429 million in 2007, citing "unprecedented volatility on fuel prices, significant fluctuations in foreign exchange and a worsening global economy."
AerData agreed to acquire Aircraft Management Solutions, a developer and supplier of an aviation lease and asset management application called ALCA Software. Transaction hinges on execution of a purchase agreement and closing.
WestJet and Canadian tourism company Transat AT, which operates Air Transat, announced the May 10 termination of a transport agreement originally scheduled to expire next year. Deal allowed Transat Tours Canada to charter WestJet aircraft. The parties said they "may enter into an ad-hoc charter agreement" in the future. Transat will replace WestJet with CanJet Airlines, with which it signed a five-year deal to April 30, 2014, with two one-year options. CanJet operates 737-800s.
The US National Transportation Safety Board is investigating whether icing played a role in last Thursday night's Colgan Air/Continental Connection crash outside Buffalo. NTSB Member Steven Chealander, who is leading the investigation, said the Q400's cockpit voice recorder indicated that "the crew discussed significant ice buildup, ice on the windshield and on the leading edge of the wing."
Vueling Airlines board approved the merger with Clickair Friday ( ATWOnline, Jan. 12). The latter will increase its share capital to 5 million shares and will exchange each one for three Vueling shares, according to a regulatory filing cited by Dow Jones. Vueling and Clickair will hold an equal number of shares in the new company that will keep the Vueling name. Clickair's board, controlled by Iberia, still must approve the deal.
Frontier Airlines Holdings reported a $1.1 million net profit in the December quarter, reversed from a $32.5 million deficit in the year-ago period. The company is operating under bankruptcy protection and released limited financial figures last week. Three-month operating profit was $5.6 million compared to a $25.6 million loss in the three months ended Dec. 31, 2007, its third fiscal quarter. It reported an $8.7 million mark-to-market loss on its fuel hedges and $2.7 million in reorganization gains. Mainline unit revenue rose 10.2%.
Airports Council International-North America President Greg Principato last week announced adoption of "ambitious airport environmental goals" to be achieved by members over the next 10 years. Among the goals agreed to by the ACI-NA board are that every member airport "will strive to have an environmental policy statement by 2010" and an Environmental Management System in place by 2014 at large airports, 2016 at medium airports and 2019 at small airports.
Civil Aviation Authority of Singapore will distribute S$200 million ($132.5 million) this year "to help airlines and airport partners tide over the current economic downturn," comprising S$50 million in rental rebates, a S$20 million fund for concessionaires at Changi and a S$130 million Air Hub Development Fund "extended to airlines and airport partners."
South African Airways appointed GM-Operations Chris Smyth acting CEO while CEO Khaya Ngqula is on leave ( ATWOnline, Feb. 13). Turkish Airlines named Finance Director Mustafa Aydin as B&H Airlines CFO and Sarajevo Manager Okan Uluocak as B&H executive VP ( ATWOnline, Jan. 15).
Virgin Atlantic Airways confirmed that it has commenced consultation with staff and union representatives about the possibility of cutting 600 jobs from its workforce numbering approximately 8,500, saying it is seeking to avoid layoffs but cannot rule them out.
SR Technics yesterday said it plans to close its operation at Dublin Airport in light of recent contract losses from major load customers, current business projections and high costs. "We are announcing this deeply regrettable and difficult step only after an exhaustive evaluation of all strategic options for our groupwide operations," SRT CEO Bernd Kessler said.
South African Airways CEO Khaya Ngqula was placed on leave this week after the carrier's board commissioned an independent investigation of alleged improprieties, particularly concerning a catering contract that was awarded to a consortium co-owned by a business associate of the CEO's wife. Servair, a consortium co-owned by Vusi Sithole, recently was chosen in what SAA characterized as "a competitive bidding process" to cater inflight meals on domestic flights. According to multiple South African news reports, Sithole has close ties to Ngqula and his wife, Mbali Gasi.
Cathay Pacific Airways and Dragonair flew 7.89 billion RPKs in January, up 1.2% from the year-ago month. Capacity rose 4.7% to 9.91 billion ASKs, dropping load factor 2.8 points to 79.5%. LAN Airlines flew 2.67 billion system RPKs in January, up 10.8% year-over-year. Capacity climbed 14.2% to 3.43 billion ASKs, dropping load factor 2.3 points to 77.9%. SkyEurope Airlines transported 173,692 passengers in January, down 23.5% year-over-year. Load factor rose 4.1 points to 62.5%.
US National Transportation Safety Board confirmed that the birds ingested in the CFM56-5B/P engines of the US Airways A320 that successfully ditched in the Hudson River on Jan. 15 were Canada geese ( ATWOnline, Jan. 22). Identification was made by the Smithsonian Institution's Feather Identification Laboratory.
Delta Air Lines is forming a subsidiary called Regional Handling Services that will combine the 4,000-plus customer service workers at regional subsidiaries Comair, Mesaba Airlines and Compass Airlines into one company based in Minneapolis. The unit will be operational later this year and is aimed at ensuring "a consistent airport experience for customers around the country" flying on Delta mainline and regional flights, DL said. RHS will oversee ticket counters, gates and baggage handling for the three regionals.
India's Director General of Civil Aviation confirmed yesterday that it has written to all domestic carriers regarding the simultaneous airfare increase earlier this week ( ATWOnline, Feb. 12), arguing that "there appeared to be no rationale" for the hike when fuel prices "are at the level that they were in 2005." It said the recipients are required to "furnish detailed information. .
Aeroflot took delivery of its 25th A320 this week. Aircraft will seat 140, is on lease from GECAS and is the 46th A320 family aircraft in SU's fleet. It will take delivery of an additional 17 this year.
Lufthansa named Head of Product Management for domestic and European traffic Heike Birlenbach to run its new Lufthansa Italia subsidiary at Milan Malpensa. She has been at LH since 1990. Norwegian appointed Anne-Sissel Skanvik as senior VP-corporate communications.
Air France KLM, British Airways, Cathay Pacific Airways, Virgin Atlantic Airways and UK airports operator BAA announced formation of the Aviation Global Deal Group, which yesterday expressed its support for inclusion of carbon dioxide emissions in a "new global climate deal" scheduled to be discussed at December's United Nations climate summit in Copenhagen.
Philippine Airlines expects to be "profitable or break even" in its fourth fiscal quarter ending March 31 but will remain in the red for the full year, President Jaime Bautista said in comments cited by Reuters. It lost $113.8 million through the six months ended Sept. 30 and posted a $30.6 million profit in the 2008 fiscal year ( ATWOnline, July 31, 2008).
Air France introduced a new logo this week featuring the airline's name written as one word in navy blue with a red flourish to the right. AF said rebranding will be gradual "to avoid additional costs" and that aircraft will be painted with the new livery (the tail will change slightly but will continue to feature blue and red vertical stripes) during maintenance.
Scheduled flights across the Taiwan Strait are expected to more than treble to 357 per week from 108 in July following third-round negotiations between Beijing's Assn. for Relations Across the Taiwan Strait and its Taiwanese counterpart, the Strait Exchange Foundation, according to Taiwan Aviation Bureau Director Li Longwen. China State Council-Taiwan Office spokesperson Fan Liqing said that both sides are preparing for the negotiations scheduled to start next month. Fan confirmed that increasing cross-strait flights will be discussed.
