Ryanair and Aer Lingus both confirmed Tuesday talks, and while the former did not comment, EI released a statement yesterday saying the LCC's bid is "not capable of completion."
Austrian Airlines has found places in its network for two 767-300ERs made available through a reduction in service to Mumbai and Chicago O'Hare. One will operate on OS's daily Vienna-Tel Aviv service beginning this spring while the other will fly on its six-times-weekly VIE-Dubai service beginning March 1, increasing capacity on the route by 20%. Five additional flights to DXB are operated with A320s or 737-800s.
Wizz Air said it transported 5.9 million passengers in 2008, a 41% increase over 2007. It currently operates 20 A320s and plans to take delivery of seven this year. It is targeting more than 8 million passengers in 2009. Air Canada and Jazz flew 3.28 billion RPMs in December, down 6.6% from the year-ago month. Capacity fell 9.9% to 4.56 billion ASMs, lifting load factor 2.9 points to 81.7%. EasyJet transported 3.1 million passengers in December, up 7.3% from the year-ago month. Load factor rose 3.3 points to 82.3%.
British Airways soon will announce new restructuring measures designed to reduce costs and increase efficiency, it indicated in BA News, its in-house weekly newspaper. "Only through delivering fundamental change can we achieve the small profit we are targeting this year and emerge from the crisis as a strong global player," CFO Keith Williams said, warning that the shakeup will be "far-reaching, reshaping our company from top to bottom."
AerCap Holdings announced a facility agreement with Calyon SA and "other banks and financial institutions" outlining terms under which European export credit agencies Coface (France), ECGD (UK) and Euler-Hermes (Germany) may guarantee up to $1.4 billion in financing. AerCap said the figure "represents a significant portion" of the financing required for an A330 order scheduled for delivery in 2009-12. According to AerCap, the loans are to be provided by a syndicate of banks led by Calyon acting as Global Arranger "and are subject to customary ECA requirements."
Finnair CEO Jukka Hienonen told the daily Iltalehti that he is hoping a 9% reduction in the carrier's route network will allow it to remain stable during the current market downturn but that a worst-case scenario could result in its cutting up to one-third of its approximately 100 routes. Several hundred employees already have been laid off and another 300 will be downgraded to part-time status in the first few months of this year ( ATWOnline, Nov. 3, 2008).
United Airlines flew 8.2 billion RPMs in December, down 11.5% year-over-year. Capacity fell 12.7% to 10.26 billion ASMs and load factor rose 1.1 points to 79.9%. British Airways flew 9.18 billion RPKs in December, down 3.4% from the year-ago month. Capacity fell 3% to 11.98 billion ASKs, lowering load factor 0.2% to 76.7%. Ryanair transported 4.4 million passengers in December,11% more than in the year-ago month. Load factor was level at 79%.
Southwest Airlines said it has completed the private placement of $400 million in senior secured notes due to mature on Dec. 15, 2011. They will bear interest at 10.5% per year and are secured by an interest in 17 737-700s.
Thai Airways received permission from Airbus to delay the initial payment on six A330s scheduled to be delivered this year, acting President Narongsak Sangapong told Reuters. Payment will be postponed to April from this month, with subsequent payments also pushed back three months. The first of eight ordered A330s is due to arrive in April.
China Southern Airlines posted a $6.3 million gain on its fuel hedges in 2008, becoming the only Chinese carrier to avoid the impact of last year's wildly fluctuating oil prices. The Guangdong-based airline suspended its hedging contract in September, which is why it was able to remain in the black, a company insider told ATWOnline yesterday.
El Al completed the cabin upgrade on the first of four 747-400s scheduled to receive new first, business and economy class seats. Enhancements include a new digital IFE system, in-seat laptop power and a refreshed interior. Remaining aircraft will be completed in April.
Garuda Indonesia said it plans to launch "at least" 18 new routes this year as it begins taking delivery of 14 new 737NGs in mid-year. Thrice-weekly Yogyakarta-Singapore already has begun and this month flights are expected to begin from Jakarta to Tanjungkarang, Malang and Kendari (via Makassar) and to Hong Kong from Surabaya and Denpasar, with more to follow. President and CEO Emirsyah Satar said Garuda expects to be operating 128 aircraft by 2013 as it adds 50 737s and 10 777-300ERs.
DAE Capital signed a sale and leaseback contract with Air New Zealand covering two 777-300ERs. Lease terms are for 12 years and aircraft are due to be delivered in January and March 2011.
Emirates has saved about 10 million liters of fuel and 772 hr. of flight time in the five years since it started working with Airservices Australia to pioneer Flex Tracks. The program involves the use of sophisticated ground and cockpit technology to track live weather and helps pilots chase tailwinds and favorable conditions. It was developed by ASA in December 2003 ( ATW, April 2006).
Frontier Airlines pilots represented by the Frontier Airline Pilots Assn. ratified a labor agreement Monday that will extend wage and benefit concessions through Dec. 11, 2011 ( ATWOnline, May 23, 2008). "This agreement is important because now 100% of our workers have made wage and benefit concessions, a factor that will prove critical in attracting exit financing for our emergence from bankruptcy," Frontier President and CEO Sean Menke said.
Continental Airlines 737-500 that crashed on takeoff at Denver last month suffered a ruptured fuel tank in the right wing ( ATWOnline, Dec. 23, 2008), causing fuel to spill onto the engine, National Transportation Safety Board investigators said, according to the Rocky Mountain News.
Russian aerospace manufacturer NPK Irkut invited bids from both domestic and foreign suppliers to provide engines and major systems for the prospective medium-range MS-21 twinjet.
The European Commission extended the deadline of its review of Lufthansa's bid to acquire Brussels Airlines parent SN Airholding to Jan. 26 from Jan. 12. The parties notified the EC of the intended transaction in late November ( ATWOnline, Sept. 16, 2008). In a first stage, LH would take 45% of the Belgian carrier through a capital increase of €65 million ($89.4 million) following regulatory clearance. It holds an option to buy the rest from 2011.
Ryanair extended to Feb. 13 the deadline for Aer Lingus shareholders to accept its takeover offer while confirming that on the initial closing date of Jan. 5 it had received acceptances totaling just 29.83% of the shares in EI, including its own stake of 29.82%.
Turkish Airlines late last month announced the acquisition of four new A321-200s. Source of the aircraft was not announced. They will seat 20 in business class and 158 in economy. Two joined the fleet last month, one is scheduled to arrive this month and the fourth will be delivered in February. Separately, THY announced the launch of services from Istanbul Ataturk to Nairobi (thrice-weekly from Feb. 23), Sao Paulo Guarulhos via Dakar (twice-weekly from March 22), Lviv (thrice-weekly from April 20) and Mashad (thrice-weekly from March 15).
Aeroflot said it plans to post a profit of RUB9.3 billion ($316 million) this year, which would be "higher than the expected level of 2008," as it moves forward with a plan and budget "taking into account the anti-crisis-management program aimed at increasing the efficiency of the operational and commercial activity."
