AerCap Holdings, the Amsterdam-based operating lessor, has "suspended all future Capex other than existing contracted Capex with Airbus" and is reducing headcount by around 15% as it seeks to adjust to the impact of the ongoing credit crunch and airline traffic downturn. The company also is "in active discussions" to sell minority stakes in parts of its portfolio.
Greek Ministry of Transport and Communications announced the companies interested in bidding for some or all of Olympic Airlines, which the government intends to split and sell by year end. Interested in Olympic's flight operations are Athens Airways, Kuwait's Fouad El Ghanim Group, Italy's MyAir, Qatar Airways, SkyEurope Airlines and US charter services Chrysler Aviation and SkyOne. Interested in OA's ground handling division are Athens Airways, Greek construction firm Ellaktor, Fouad El Ghanim, Goldair, Hellenic Cargo Group and Swissport.
Ameco Beijing, the joint venture between Air China (60%) and Lufthansa (40%), announced deals with Jet2.com and Astraeus Airlines to provide MRO on RB211-535E4 engines (two for Astraeus and one for Jet2).
Embraer moved to clarify remarks made earlier this week by CFO Antonio Luiz Pizarro Manso that it is "studying the development of a larger plane" and could potentially form a "partnership" with another manufacturer to build the aircraft. Subsequently, Embraer issued a statement saying, "At the present time it is not seeking to associate with any other aircraft manufacturer in the world, neither does it have a project for developing large airplanes." Separately, it announced that the Japan Civil Aviation Bureau certified the E-170, which will be operated by Japan Airlines.
Delta Air Lines announced a series of initiatives to align its travel policies with those of Northwest Airlines, including fees of $15 for the first piece of checked luggage and $25 for the second piece on domestic flights from Dec. 5. First and business class customers and certain premium members of DL or NWA loyalty programs will be able to check up to three bags of 70 lb. each for free. Full-fare coach and international passengers will be able to check up to two 50 lb. bags for free. DL was the only major US network carrier not charging for the first checked bag.
Boeing predicted this week that world air cargo traffic will grow 5.8% annually over the next 20 years, down slightly from the 6.1% rate it projected in previous forecasts. Its newly released "2008/2009 World Cargo Forecast" said worldwide airfreight traffic will triple by 2027 and that "current near-term market weakness and worldwide economic uncertainty" won't significantly affect long-term demand. "The industry has shown strong recoveries from previous economic downturns such as the Asian economic crisis, the 9/11 attacks and the SARS outbreak," it said.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, posted third-quarter net income of $5.2 million, down 84% from $32.4 million in the year ago period. It blamed the drop on fuel costs and "soft demand." President and CEO William Flynn noted that Polar becoming a DHL contract carrier last month will lead to "significant earnings improvement" in 2009 by "de-risking our business model."
Compagnia Aerea Italia's binding offer for Alitalia is worth €1 billion ($1.29 billion), the airline said in a statement to the country's stock market regulator, and comprises €900 million for AZ's flight operation, assets and contracts, €57 million for Alitalia Servizi, €7 million for Alitalia Airport, €19 million for Alitalia Express and €17 million for low-cost subsidiary Volare. The €900 million for AZ comprises €275 million cash and €625 million to assume the carrier's debts.
Kingfisher Airlines defaulted on rental payments for four A320s on lease from GECAS, which complained to India's Directorate General for Civil Aviation and is seeking to repossess the aircraft.
US regional airline industry may benefit from a new presidential administration, but the difficult operating and economic environment will continue to pose problems, speakers said yesterday at the SpeedNews Regional & Business Aviation Industry Suppliers Conference in Indian Wells, Calif. Regional Airline Assn. VP-Legislative Affairs Faye Malarkey said the body is hopeful that Barack Obama's incoming administration will be a catalyst for needed legislative relief.
Air Mauritius lost €13.4 million ($17.3 million) in the fiscal first half ended Sept. 30, reversed from a €2.5 million profit in the year-ago semester. Revenue rose 8.5% year-over-year to €216.1 million but the airline said it could not overcome a 17.5% increase in operating costs driven by a 49% surge in fuel expenses. It said it was able to reduce nonfuel costs through schedule and capacity adjustments. Passenger numbers fell 2.7% to 596,587 and load factor slipped 3 points to 75.3%.
Southwest Airlines yesterday released its spring schedule featuring eight-times-daily service from its newest destination, Minneapolis/St. Paul, to Chicago Midway beginning March 8. Schedule includes 70 new roundtrip flights and cancellation of 39 others. SWA also will begin daily Phoenix-Birmingham. Service will end on Albuquerque-Amarillo, Albuquerque-Tampa, El Paso-Lubbock and Kansas City-Tulsa. Air Algerie will launch twice-weekly Algiers-Beijing in February aboard an A330.
Singapore Airlines reported a S$323.8 million ($219.4 million) profit in its fiscal second quarter ended Sept. 30, a 32.6% decrease from the S$507.8 million earned in the year-ago period, as fuel costs took their toll. SIA said the global "financial turmoil" and "weak consumer confidence" have impacted demand, and while advance bookings in the current quarter "are holding up reasonably well," it sees "signs of weakness beyond that." Nevertheless, it said its "sound finances and low level of debt put it in a position of strength."
SITA won a five-year contract from Transaero to provide its passenger management system including reservations, ticketing, departure control service, revenue management and airfare technology.
Wataniya Airways is on track to launch its all-premium A320 flights in January and said it will have four aircraft operating next year and up to seven by the end of 2010 ( ATWOnline, July 8). The Kuwaiti carrier will lease three aircraft from ALAFCO, three from AerCap and one from ILFC, CEO George Cooper told Reuters. It has committed $250-$300 million for the leases. Qatar Airways also has plans to operate all-business-class service in the region.
ExpressJet Holdings finished what President and CEO Jim Ream called a third quarter "of transition" with a $4.8 million loss, narrowed from a $22.3 million deficit in the year-ago period.
JetBlue Airways will launch service to South America with a daily New York JFK-Orlando International-Bogota flight beginning Jan. 29 aboard an A320. Iberia will add fifth weekly flight from Madrid to Guatemala City and Panama City on Jan. 4 aboard an A340.
The dream of a direct routing across the Taiwan Strait is closer to reality following the signing of an agreement between Beijing's Assn. for Relations Across the Tawian Strait and Taipei's Strait Exchange Foundation. The deal, which will take effect in 40 days, will allow carriers to bypass Hong Kong airspace and reduce flight time, operating costs, fuel burn and emissions.
Volga-Dnepr Group announced a 75% year-over-year increase in sales for the first nine months of 2008, with revenue from its charter and scheduled cargo services reaching $1.27 billion. Freight carried jumped 51% to 210,000 tons while charter sales were up 80% to $882.9 million. AirBridge Cargo's scheduled flights brought in $344.1 million in revenue, up 68% from the first nine months of 2007. The group operates An-124-100s (10) and Il-76TDs (12 including two Il-76TD-90VDs) in charter services as Volga-Dnepr Airlines and 747Fs (seven) in scheduled flights as AirBridge.
Bmi will discontinue long-haul operations from Manchester next year and transfer the two A330s currently based at MAN to London Heathrow ( ATWOnline, Nov. 4). It will stop flying from MAN to Chicago O'Hare on Jan. 14 and to Las Vegas, Barbados and Antigua following the mid-April Easter holiday. "Long-haul services from Manchester have never performed to the levels that we had hoped and we see little prospect of change or improvements in their performance," bmi CEO Nigel Turner said.
SkyWest Inc., parent of SkyWest Airlines and Atlantic Southeast Airlines, reported third-quarter net income of $26.2 million, down 38.9% from $42.9 million in the year-ago period, as it contended with capacity cuts driven by airline partners reducing flight schedules. Midwest Airlines, for example, modified its agreement with SkyWest to reduce CRJ200s operated by the regional on Midwest Connect flights from 21 to 12.
Air Berlin partner LGW, which is based at Dortmund, will begin operating the first of 10 new 76-seat Q400s on Dusseldorf-Stuttgart on Nov. 10 and Dusseldorf-Sylt the following day. Q400s will replace all A319/A320 services on DUS-Hamburg from Dec. 7, DUS-Stuttgart from Dec. 10 and DUS Nuremberg from Dec. 28.
Changes in US aviation policy as President George Bush transitions to President-elect Barack Obama will develop as part of a "long process" during which future priorities of the Dept. of Transportation and FAA will be debated, former US Transportation Secretary Norm Mineta said yesterday.
SAS Group's third quarter, which was blackened by the August Spanair MD-82 accident in Madrid that claimed 154 lives, ended with a SEK2.01 billion ($260 million) net loss that represented a reversal from the year-ago period's SEK701 million profit and largely was due to a SEK1.96 billion goodwill impairment at the Spanish subsidiary.
