The four-day strike called by French pilot unions to protest a potential change in the retirement age is expected to cause "severe disruption" to Air France's schedule beginning today and could cost the carrier up to €100 million, AF KLM Chairman and CEO Jean-Cyril Spinetta said.
Royal Air Maroc reportedly is planning to establish a regional subsidiary called Atlas Inter, which will start flying in March with eight leased turboprops (most likely ATR 72s). Local media are reporting that RAM is looking to cut costs on regional routes it currently operates with A321s or 737s.
The JetBlue Pilots Assn. filed a petition with the US National Mediation Board this week seeking to become the bargaining agent for the carrier's nearly 2,000 pilots. JBPA leaders said they want formal recognition in order to provide career protection for pilots that will help "redefine pilot-labor relations in our industry." The in-house body would be not affiliated with a national union.
Austrian state holding company OIAG said yesterday that it "will only hold concluding talks with Lufthansa" regarding the privatization of Austrian Airlines Group and that "S7 [Airlines] and Air France KLM are no longer in the bidding process." OIAG now holds 41.6% of Austrian. According to press reports, OIAG indicated that S7's bid did not conform to EU specifications and AF KLM's did not arrive in time.
Copa Holdings, parent of Copa Airlines and AeroRepublica, reported third-quarter net income of $30.3 million, down 35.6% from a $46.8 million profit in the year-ago period, a drop it attributed almost entirely to noncash fuel hedge losses. Copa took a $15.5 million noncash charge on its hedging contracts owing to the drop in oil prices during the quarter. Absent the charge, its quarterly net profit would have been $45.8 million.
EasyJet transported 4 million passengers in October, up 18.4% from the year-ago month. Load factor rose 1.4 points to 83.9%. Republic Airways flew 795.7 million RPMs in October, down 2.8% year-over-year, against a 0.4% fall in ASMs to 1.09 billion. Load factor dropped 1.8 points to 73%. Allegiant Air flew 248 million RPMs in October, up 8.6% year-over-year. Capacity fell 2.4% to 284.1 million ASMs, lifting load factor 8.9 points to 87.3%.
China Southern Airlines and China Eastern Airlines have started to ground aircraft and cut flights as there is little sign of a recovery in the slumping domestic market. According to CAAC, Chinese carriers again suffered from falling demand last month despite the "golden week" travel period surrounding Oct. 1 National Day. Passenger load factor fell 2.2 points year-over-year to 76.9% while daily aircraft utilization was down 2.1% to 9.2 hr ( ATWOnline, Sept. 17).
US Dept. of Transportation task force comprising representatives from airlines, airports, consumer groups and DOT this week issued recommendations for treating passengers during extended tarmac delays, calling for better communication and improved preparedness to provide stranded passengers with food and water. But the nonbinding "model contingency plan," approved by a 34-1 vote, did not include a suggested set time for returning delayed aircraft back to a gate, a provision desired by consumer advocates and some lawmakers.
Hawaiian Airlines announced the acquisition of an additional 298-seat A330-200 on lease from CIT. It reached an agreement to lease two others from AWAS last month and has six of the type on order from Airbus ( ATWOnline, Oct. 28). HA will take delivery of two of the leased A330s in the 2010 second quarter, beginning its "transition to a new long-range fleet two years earlier than originally planned." The second AWAS aircraft will join the fleet in 2011 and the Airbus deliveries will begin the following year.
International Air Carrier Assn. urged the European Parliament to reject amendments adopted last month by its Committee on the Environment, Public Health and Food Safety relating to the inclusion of aviation in the continental emissions trading scheme ( ATWOnline, Oct. 13), and said the gradual increase in the percentage of emissions certificates auctioned (to 100% in 2020) will cost affected airlines "an unaffordable" €8 billion ($10.04 billion) per year.
Joy Air, the Xi'an-based regional launched by China Eastern Airlines and China Aviation Industry Corp. in March, will commence operation by year end, according to CAIC President and CEO Lin Zuoming ( ATWOnline, March 31). Joy plans to operate 50 MA60 series turboprops within the next 6-7 years. It has three MA60s on firm order and scheduled for delivery starting next month and has signed a letter of intent for 10 MA600s to be delivered from 2010. It also plans to order 50 ARJ21s. Chinese regionals are still losing money.
Alitalia must pay back the €300 million emergency loan from the Italian government, which the European Commission yesterday called "unlawful aid and incompatible with the common market."
World travel is projected to grow an average of 5% per from 2009 through 2028, with China leading at 7.5%, according to Embraer's 20-year market forecast for commercial aircraft. Emerging markets in Latin America and Russia/CIS will grow a projected 6% annually, Asia/Pacific and Africa will grow about 5% and Europe and North American 4%. Some 6,750 jets in the 30/120-seat range will be required, generating sales of $220 billion over the next two decades.
Air France KLM flew 18.41 billion RPKs in October, up 9% from the year-ago month, against an 8% increase in ASKs to 22.65 billion. Load factor rose 0.7 point to 81.3%. United Airlines flew 8.68 billion system RPMs in October, a 9.7% year-over-year decrease. Capacity dropped 9.9% to 10.68 billion ASMs and load factor rose 0.2 point to 81.3%. Alaska Airlines flew 1.42 billion RPMs in October, down 1% year-over-year. Capacity fell 3.7% to 1.92 billion ASMs, lifting load factor 2 points to 73.6%.
United Airlines will operate the second ASPIRE (Asia and South Pacific Initiative to Reduce Emissions) flight on Nov. 14 from Sydney to San Francisco, following in the footsteps of Air New Zealand, which flew "ASPIRE 1" with a 777-200ER two months ago ( ATWOnline, Sept. 15).
Delta Air Lines and Northwest Airlines, which closed their merger last month, said they are aiming to integrate their flight schedule by next summer as DL unveiled new flights intended to increase connectivity between the two networks and expand its global reach. DL plans to launch 15 new international routes in June to coincide with the network integration. It will start daily 777-200ER flights between JFK and Tokyo Narita as well as five-times-weekly A330-200 Salt Lake City-NRT and daily 757-200 NRT-Ho Chi Min services. It will add a second-daily Atlanta-NRT flight on May 4.
Air Arabia firmed options for 10 A320s, Airbus announced, following up on the order for up to 49 aircraft signed at last year's Dubai Air Show and saying said it needs the additional planes to support expansion and its new Moroccan base scheduled to open next year.
AirTran Airways will begin charging $15 for the first checked bag on flights from Dec. 5. It will continue charging $25 for the second checked bag and $50 for each additional bag. Business class and premium loyalty program members will be exempt. AirTran also said it now will allow passengers to upgrade to business class for $49-$99 one way when checking in online 24 hr. prior to departure and onboard the aircraft either before takeoff or at cruising altitude.
Iberia reported consolidated third-quarter net income of €30.4 million ($38.6 million), down 79.5% from €148.2 million in the year-ago period, on rising fuel costs and weaker demand. Operating revenue slipped 0.6% to €1.45 billion while costs rose 8.7% to €1.43 billion. EBIT fell 88.4% to €16.2 million from €139.3 million last year. Yield lifted 0.5% to 7.43 euro cents
Lufthansa suspended talks regarding a possible takeover of SAS Group ( ATWOnline, Sept. 24), Germany's dpa news agency reported, citing sources close to the negotiations who said a steep loss at SAS subsidiary Spanair is a primary reason for the retreat. An LH spokesperson contacted by ATWOnline would not comment on the report.
FedEx said yesterday that it intends to reduce carbon dioxide emissions from its aircraft fleet by 20% by 2020. It said it already has reduced CO2 emissions by 3.7% per ATM since 2005. Key to the increased efficiency will be the replacement of its 90 727Fs with at least 87 757-200 converted freighters by 2016. The 757s will reduce "fuel consumption up to 36% while providing 20% more payload capacity," it said.
