DHL yesterday pulled the plug on its five-year push to become the "third alternative" to UPS and FedEx in the US express shipping market, announcing that all domestic US services will cease early next year as it focuses exclusively on international operations to/from 15-20 US metropolitan areas. "The basic reason is that the US is a highly concentrated duopoly market and the reality is. . .UPS and FedEx's scale, market reach and brand awareness have made it impossible for us to make it economically viable," DHL Express CEO John Mullen told reporters in a conference call.
Indianapolis International Airport's new $1.1 billion passenger facility is scheduled to handle its first arrivals tonight and be fully operational Wednesday. New terminal is 1.2 million sq. ft. and includes 40 gates (two can accommodate the A380) and 96 check-in counter positions. Construction began in July 2005.
Austrian Airlines Group will run out of cash by mid-2009 at the latest if it is unable to find a new owner or secure funding from the Austrian government, which was asked by Lufthansa to take responsibility for a significant portion of AAG's debt in exchange for a German takeover ( ATWOnline, Oct. 28). Analysts from Austrian banks now predict a 20% chance of bankruptcy.
Aer Lingus employees at Dublin, Cork and Shannon represented by SIPTU voted "overwhelmingly" to take industrial action before Dec. 1 in response to EI's proposal to cut 1,245 full-time-equivalent positions ( ATWOnline, Oct. 7). Ireland Minister for Transport Noel Dempsey called on the two sides to restart talks, according to Irish media.
Yangtze River Express Airlines resumed four-times-weekly Shanghai-Los Angeles with a converted 747-400SF. It will take delivery of a third 747-400 freighter next year and said it intends to fly to other US destinations.
Having already sealed a codeshare deal giving it access to Canada, Southwest Airlines yesterday announced a partnership with Toluca-based Volaris that will give the world's largest LCC a foothold in Mexico for the first time.
Alma de Mexico suspended operations and filed for bankruptcy last Friday, citing the "crisis" in the industry and global economy. The Guadalajara-based LCC operated 19 CRJ200s and had two CRJ900 NextGens on order ( ATWOnline, Aug. 9, 2007). It said "historic" high fuel prices, low occupancy and the peso's fall against the US dollar were key factors in its demise.
Air France is charging €50 ($63.58) to passengers wishing to reserve economy seats with more legroom on certain transatlantic flights. Seat Plus will be available during online check-in from 30 hr. before departure on service between Paris Charles de Gaulle and Boston, Houston, Los Angeles, Miami, New York JFK, Seattle, San Francisco, Washington Dulles, Montreal and Toronto. AF said it will be extended across its long-haul network during the winter.
Qatar Airways secured $500 million in financing for the purchase of three 777-300ERs. Twelve-year arrangement is with Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Deutsche Bank, Standard Chartered Bank (facility agent and security trustee) and Sumitomo Mitsui Banking Corp. Europe.
Thai Airways reported a THB426.2 million ($12.1 million) profit in the third quarter, reversed from a THB971.1 million deficit in the year-ago period, according to a company statement cited by Reuters. A foreign exchange gain of THB4.73 billion was the difference and compared to a THB3.36 billion forex loss in the third quarter of 2007. Operating result swung to a THB3.2 billion loss from a THB2.43 billion profit as passenger revenue rose 10% year-over-year to THB43 billion while fuel costs soared 68.2%.
ANA announced 787 spare parts support deals with Hamilton Sundstrand and Rockwell Collins under which part and repair equipment ownerships will remain with the manufacturers and ANA will pay only for time in the air. It said it was the "first program of its kind" for the 787. Separately, RC said ANA selected its dispatch program to provide avionics support for 787s under a 10-year, fixed-price-per-flight-hr. deal.
British Airways reported a consolidated net loss of £49 million in its fiscal first half ended Sept. 30, which implied a steep second-quarter deficit of £76 million, a reversal from earnings of £333 million in the three months ended Sept. 30, 2007.
Air Canada posted a third-quarter net loss of C$132 million ($112.4 million), reversed from a C$273 million profit in the year-ago period, saying its results were hurt by high fuel costs and noncash losses on fuel hedging and currency items.
Frontier Airlines officially cancelled plans to build a $25 million heavy maintenance base in Colorado Springs. It announced the project last year before entering bankruptcy ( ATWOnline, Nov. 5, 2007). "As part of the bankruptcy process, we've had to look at every project in the organization," a spokesperson told the Rocky Mountain News. "We've canceled those projects that don't make sense.
Ryanair opened a base at Reus Friday and launched service to Santander (daily), Seville (twice-daily), Santiago de Compostela (daily) and Paris Beauvais (daily). Daily flights to Palma de Mallorca begin Dec. 19. Allegiant Air will transfer its twice-weekly Bellingham-San Francisco service to Oakland on Feb. 2. Cayman Airways will launch twice-weekly Washington Dulles-Grand Cayman on Dec. 13 and re-launch twice-weekly Chicago O'Hare-GCM on Dec. 17 aboard 737-300s. AirTran Airways re-launched seasonal daily Akron/Canton-Fort Myers.
Japan Airlines parent JAL Group reported net income for its fiscal first half ended Sept. 30 of ¥36.6 billion ($373.4 million), a more than fivefold increase from ¥7.3 billion in the year-ago period, crediting aircraft downsizing, route restructuring, cost cutting and new premium product strategies on international routes.
JetBlue Airways flew an E-190 being used by Sen. John McCain's presidential campaign from Anchorage to Buffalo last Thursday, a 2,694-nm. repositioning flight the carrier claimed was a record for the aircraft type, according to a message to employees cited by USA Today. Flight took 6 hr. 11 min. Its longest regularly scheduled 190 flight is a 1,476-nm. Boston-Austin. JetBlue flew 1.88 billion RPMs in October, down 5.4% from the year-ago month. Capacity dropped 11.1% to 2.33 billion ASMs, lifting load factor 4.8 points to 80.7%.
United Airlines canceled a planned 100% increase on the one-way fee for a second checked bag on domestic flights (it will remain $25) and said it will offer a 20% discount on the $15 first-bag fee if paid on UA's website between Nov. 10 and Jan. 31. Customers also will be able to purchase premium economy seats with 5-in. extra legroom and a $9 loyalty point program "accelerator" on the website beginning Nov. 10.
Delta Air Lines flew 9.93 billion system RPMs in October, down 2.2% from the year-ago month. Capacity dropped 4.7% to 12.17 billion ASMs, lifting load factor 2 points to 81.6%. Northwest Airlines flew 6.38 billion system RPMs in October, a 1.4% decrease from the year-ago month. Capacity fell 2% to 7.57 billion ASMs and load factor was up 0.5 point to 84.3%. SkyEurope Airlines transported 304,669 passengers in October, down 10.1% year-over-year. Load factor declined 6.8 points to 68%.
Pinnacle Airlines and Colgan Air parent Pinnacle Airlines Corp. reported a $7.7 million third-quarter profit, down 29.2% from the $10.9 million earned in the year-ago period, on a 7.8% rise in operating revenue to $221.8 million. Expenses grew 5.8% year-over-year to $201.8 million and operating income climbed 33.3% to $20 million from $15 million in the 2007 third quarter. Pinnacle Airlines' income was $12 million, down 24.5% year-over-year, while Colgan's operating result swung to an $8 million profit from a $900,000 loss in the year-ago quarter.
Lufthansa Technik reached a 15-year deal with Norwegian to provide MRO on more than 100 CFM56-7Bs. Agreement is LHT's biggest engine service contract in Scandinavia to date, covering engines on 53 737NGs as well as seven spares. Work will take place at LHT's Hamburg shop, which is under construction.
Spanish travel and tourism company Grupo Marsans and Uzbekistan Airways firmed aircraft orders last Friday, the former a significant 61-plane commitment, demonstrating some confidence in future growth despite the industry downturn. Marsans signed a contract for four A380s, 10 A350-900s, five A330-200s, five A321s, 25 A320s and 12 A319s, firming an MOU reached 13 months ago ( ATWOnline, Oct. 12, 2007), Airbus announced.
Air Wisconsin, which operates 70 CRJ200s as US Airways Express, said it provided a $35 million, 12-month loan to US. Another Express operator, Republic Airways Holdings, provided a similar loan as part of a $950 million liquidity package that US announced last month ( ATWOnline, Oct. 24). Air Wisconsin said the loan includes optional monthly extensions totaling an additional 12 months.
Cathay Pacific Airways issued a stock market alert warning that its full-year result will be "disappointing" despite falling fuel prices. CX said in its statement to the Hong Kong Stock Exchange that "weakness in revenue and losses on certain fuel hedging contracts" would "affect the year's results adversely." It lost HK$663 million ($85.5 million) in the first half of 2008 ( ATWOnline, Aug. 7) after reporting a HK$7.02 billion profit last year.
