United Airlines parent UAL Corp. kicked off the current reporting season yesterday with a troubling $5.35 billion net loss, reversed from a $403 million profit in 2007, and a pledge to cut an additional 1,000 positions from its roll of salaried and management employees. The company suffered a $4.44 billion operating loss, compared to a $1.04 billion profit the previous year, on a 0.3% rise in revenue to $20.19 billion that was dwarfed by a 28.9% surge in expenses to $24.63 billion.
Thai Airways is seeking THB19 billion ($540.6 million) in working capital from state-owned banks and an additional THB15 billion for refinancing short-term loans, according to an airline statement cited by press reports.
Kuwaiti startup Wataniya Airways took delivery of the first of seven leased A320s. Aircraft will seat 122 passengers. Wataniya plans to fly next month.
American Airlines parent AMR Corp. reported a net loss of $340 million for the fourth quarter of 2008, propelling it into a full-year loss of $2.07 billion, its largest annual deficit since 2002 and a significant reversal from net income of $504 million in 2007.
Agreement of Facilitation of Aerial Transport in Central America was adopted by the governments of Guatemala, Honduras, El Salvador and Nicaragua and "will facilitate the transport of people between the participating countries because it reduces procedures and optimizes travel time," ALTA Executive Director Alex de Gunten said. The organization said the so-called CA-4 creates a "unified regulatory body and domestic Central American market."
Singapore Airlines yesterday took delivery of the first of six A330-300s on lease from AWAS. Aircraft is powered by Trent 700s, will seat 285 passengers in two classes and will be used initially on flights to Australia and Japan. Remaining aircraft will be delivered this year.
Baboo reported an 87% year-over-year increase in 2008 revenue to CHF56 million ($49.1 million) on a 75% rise in passenger numbers to 295,000. The Geneva-based carrier took delivery of three E-190s this year, increasing its fleet from two (Q400s) to five aircraft, and added seven destinations to bring its scheduled network to 18.
ILFC announced the following lease agreements: One used 737-800 to Vision Airlines for five years, delivery in March; three used A319-100s to WindJet (two for six years each delivered in December, one for 6.5 years with delivery this month); one used 767-306ER to Flyglobespan for five years, delivery in February; two used A330-200s to Atlasjet for five years each, delivery in April; two used A320-200s to Ural Airlines for six years each, delivery in May; two used 737-300s to Belavia for five years each, delivery in May and June; one used 737-300 to Boliviana for five years, delivered in
National Transportation Safety Board said an examination of the right engine of the US Airways A320-200 that ditched safely in New York City's Hudson River last week "revealed evidence of soft body impact damage." Three variable guide vanes were fractured and two missing altogether along with the CFM56-5B4/P's electronic control unit. "Numerous internal components. . .were significantly damaged," NTSB said, and "what appears to be organic material" was found in the engine and on the wings and fuselage.
Swiss International Air Lines presented its new first class product yesterday in Zurich, part of a CHF1 billion ($876.6 million) rollover of its 25-strong widebody fleet that will include replacement of nine A330-200s with the same number of -300s.
Emirates will increase service from Dubai to Riyadh (Feb. 1, six-times-weekly to daily), Amman (Feb. 2, 10-times-weekly to 12-times-weekly) and Jeddah (Feb. 3, six-times-weekly to daily).
London City, Budapest and Chicago Midway operators are among the first-round bidders for London Gatwick, which is set to be sold by BAA ( ATWOnline, Dec. 22, 2008), Reuters confirmed. LCY operator Global Infrastructure Partners, Budapest operator Hochtief and the MDW consortium of Citi Infrastructure Investors, Vancouver Airport Services and John Hancock Life Insurance will bid, the latter as Lysander Gatwick Investment Group, spokespeople told the news service.
Turkish Technic reached an MRO agreement with Istanbul-based Onur Air to provide C checks on A300-600s. Work is slated for completion early next month.
Ukraine International Airlines said it "exceeded its projected targets" in 2008 and will report a full-year profit for the eighth consecutive year when it releases audited financial figures in April. It said passenger numbers rose 16.5% year-over-year to 1.7 million on an 18.5% lift in RPKs to 3.2 billion. Load factor climbed 3 points to 74.8%. It operates 17 737s.
Air China and Shanghai Airlines joined China Southern Airlines and China Eastern Airlines in announcing that they expect to report losses for 2008. Both CA and SAL cited "the decline in market demand" that was exacerbated by the impact of May's Sichuan earthquakes, stricter security measures surrounding the Beijing Olympics, the global financial crisis and "much higher fuel expenses" until the recent fall in oil prices. The resulting fuel hedge losses then became a culprit ( ATWOnline, Jan. 16).
Qantas retired the last of its six 747-300s. The airline operated the aircraft mainly on regional international and domestic transcontinental routes in recent years. QF was forced to retain the -300s for longer than desired because of the late delivery of its A380s. The aircraft have been replaced by A330s.
Singapore Airlines will launch A380 service to Paris Charles de Gaulle on June 1. The daily flight will replace the existing 10-times-weekly 777-300ER service. The SIA A380 is configured with 471 seats. CDG is the carrier's fourth A380 destination after London Heathrow (twice-daily), Sydney and Tokyo Narita (each daily). It has six A380s in service and a further 13 on order. The CDG route will follow the delivery of the seventh and eighth aircraft.
Lufthansa flight attendants represented by the Independent Flight Attendant Org. are threatening industrial action in the coming weeks over a pay dispute, Reuters reported. The union left negotiations Friday and is demanding a 15% increase in pay and benefits for some 16,000 employees. LH has offered 10%.
Cimber Air, which acquired bankrupt Sterling Airlines' assets last month ( ATWOnline, Dec. 5, 2008), will relaunch the carrier at Copenhagen as Cimber Sterling "with a few" of the former Sterling's 737s, it announced. It will add 16 new international routes from CPH, comprising 56 weekly flights scheduled to start in late March. Destinations include Montpellier and Bourgas.
European Commission authorized what it called "rescue aid" for Austrian Airlines Group in the form of a €200 million ($265.2 million) loan facility guaranteed by Austrian state holding company OIAG. The EC said the loan was issued at market rates and the amount was limited to what is needed to maintain the company ahead of its privatization ( ATWOnline, Dec. 8, 2008).
ANA announced a number of cutbacks on its international network, citing the current economic downturn. On Feb. 12 it will suspend five-times-weekly Osaka Kansai-Dalian service and a twice-weekly Dalian-Shenyang flight. Daily Tokyo Narita-Mumbai service will be reduced to thrice-weekly on Feb. 2 and thrice-daily NRT-Shanghai will become twice-daily on Feb. 5. Alaska Airlines will launch twice-daily Portland, Ore.-Long Beach service on Feb. 8 and will operate a second daily Anchorage-Chicago O'Hare flight June 7-Aug. 22.
CSA Czech Airlines should be privatized this year following a Monday decision by the government to sell 91.5% of the national carrier by September. The sale reportedly is expected to generate up to CZK5 billion ($238.7 million) and will consist of a two-round tender.
China took another step in its effort to manufacture a large commercial passenger aircraft with AVIC's launch of its commercial engine company in Shanghai on Jan. 18. AVIC President Lin Zuoming said the new venture is expected to be responsible for producing engines for a domestically produced150-seat commercial aircraft dubbed the "trunk liner" ( ATWOnline, Nov. 5, 2008).
