Shanghai Airlines earned a CNY23.4 million ($3.4 million) first-half profit based on domestic accounting standards, reversed from a CNY134.5 million loss in the year-ago semester, thanks to a CNY44.5 million government subsidy. It did not say what the subsidy was for, Bloomberg News reported. Instead it credited "the enhancement of marketing efforts and rationalization of the route network, as well as improving aircraft daily utilization" as key to the result. Operating revenue rose 26% year-over-year to CNY7.03 billion against a 22.8% lift in expenses to CNY7.12 billion.
Mercator said that WestJet signed up for its RAPID Bureau Interline Solution hosted in Dubai, becoming the third North American customer for the interline revenue accounting solution.
Virgin Blue Holdings blamed soaring fuel prices and one-off product enhancement costs for its 54.7% drop in net profit to A$97.7 million ($85.1 million) for the fiscal year ended June 30. The result was slightly ahead of market expectations but management advised that the year ahead will be tough, although it still expects a positive result.
Northwest Airlines said yesterday that it has gained relevant government approvals to add the Delta Air Lines code to all of its transpacific flights, another step toward the planned merger of the two carriers. NWA also will add the DL code to its flights between Tokyo Narita and three Asian destinations. Expanded codesharing will take effect Aug. 30.
Qantas CFO Peter Gregg resigned his post effective Sept. 30 and will be replaced by Deputy CFO Colin Storrie, CEO Geoff Dixon announced. The move is considered to be the beginning of a change in leadership following the appointment of Jetstar Airways CEO Alan Joyce to succeed Dixon.
SilkAir CEO Chin Yau Seng told reporters that demand for its services remains robust with the exception of "a few blips," and that capacity growth for the fiscal year beginning April 1 now is expected to be 5%-7%, down slightly from the 8%-10% previously forecast. "So far we have seen continued strong support to a lot of our regional points," Chin said, noting that demand is strong from both leisure and business travelers despite high fuel prices.
American Airlines will launch flights from Miami to Belo Horizonte (thrice-weekly) and Recife via Salvador de Bahia (daily) on Nov. 2 aboard 767-300s. Etihad Airways will operate flights from Abu Dhabi to Moscow Domodedovo (five-times-weekly from Dec. 1 aboard A319s) and Almaty (four-times-weekly from Dec. 2 aboard A320s). Separately, Etihad Crystal Cargo launched an unaccompanied baggage service that will transport passengers' heavy or excess luggage ahead of their flights for less than the check-in fee.
Despite operating amid "the perfect storm" of high fuel prices and overcapacity, Malaysia Airlines yesterday reported its eighth consecutive quarterly profit, a MYR40 million ($11.9 million) figure that represented a 64.6% decline from the MYR112.8 million posted in the year-ago period.
Washington Dulles's new underground rail system, which will connect the main terminal with the midfield concourses ( ATW, August 2007), will be operational by late 2009, officials said yesterday. "This has been a long, complicated project," Metropolitan Washington Airports Authority President and CEO James Bennett said. The $1.4 billion AeroTrain system was designed, engineered and constructed by Sumitomo Corp. of America in conjunction with Mitsubishi Heavy Industries. Tunneling, which began in 2002, is now complete.
News from Travel Technology Update: Ryanair said it will cancel all bookings made through screen-scraping Web sites. "We believe this is a quicker and more effective way of discouraging this unlawful activity and we hope that by getting rid of screen-scrapers we will speed up passenger processing times on Ryanair.com, as well as ensuring that Ryanair passengers are not paying unnecessary handling charges or higher fares to screen-scrapers," the carrier said.
Kingfisher Airlines will launch international service on Sept. 3 with a Bangalore-London Heathrow A330-200 flight, according to widespread press reports from India. Kingfisher acquired the operating certificate of Deccan Aviation, which this month will reach the mandatory five years of service required to fly internationally from India ( ATWOnline, March 31).
Lufthansa CFO Stephan Gemkow was elected to the board of JetBlue Airways, the New York-based carrier announced. He joins Swiss International Air Lines President and CEO Cristoph Franz on the 11-member board ( ATWOnline, Feb. 11).
ALAFCO announced the lease of eight A320-200s to Saudi Arabian Airlines for eight years each. Delivery is scheduled in 2009 and 2010. The Kuwaiti lessor struck a deal with Saudi Arabian for 17 long-haul aircraft in June ( ATWOnline, June 26). The combined deals are worth $3.3 billion, ALAFCO said.
British Airways' planned all-business-class flights between London City and either New York JFK or Newark will launch in autumn 2009 and have just 32 seats that can be converted into lie-flat beds, the carrier announced yesterday. The twice-daily service will be aboard an A318, the largest aircraft that can operate at LCY, and will refuel at Shannon on the westbound journey. Passengers will complete US arrival checks in Ireland. Eastbound flights will be nonstop. BA vowed customers will be able to arrive at LCY up to 15 min.
US FAA told Southwest Airlines that it is upholding a proposed $10.2 million fine for operating 46 737 Classics for nine days in March 2007 after it had disclosed to the agency that the aircraft were in noncompliance with an airworthiness directive and is seeking payment by Aug. 29.
Sensis Corp. announced that its Airport Surface Detection Equipment Model X is now operational at Detroit Metro. ASDE-X combines surface movement radar, transponder multilateration and ADS-B "to provide air traffic controllers with real-time, highly accurate position and location information of all aircraft and vehicles on the airport surface," the company said.
Australian Licensed Aircraft Engineers Assn. contributed to the war of words erupting over the daily reporting of several recent safety incidents at Qantas, accusing the airline of allowing standards to slip. It blamed staffing shortages and cost-cutting for the spate of highly publicized incidents, while Federal Transport Minister Anthony Albanese called for calm and urged Australians not to disparage the carrier.
Sterling Airlines reappointed Almar Orn Hilmarsson president and CEO replacing Reza Taleghani. The former JP Morgan executive took over from Hilmarsson in March after the latter had been at the post for nearly three years ( ATWOnline, March 5). The move coincides with a change in the shareholding of Northern Travel Holding, which bought Sterling in December 2006 from FL Group.
Chinese carriers continued to suffer falling passenger demand in July. Air China's RPKs decreased by 8.4% from the year-ago month, while passenger boardings fell 6.8% to 3 million and load factor plunged 8.1 points to 73.3%. China Southern Airlines' RPKs slid 4.2% year-over-year and load factor dipped 1.4 points to 75.1%. It is noteworthy that CA's and CZ's international RPKs dropped 13.7% and 13.3% respectively, mainly owing to heightened security measures related to the Beijing Olympics and slowing global demand. CZ cut its international capacity 14.2% last month.
US Air Transport Assn. forecast a 5.7% year-over-year fall in the number of passengers traveling globally on US airlines during the Labor Day holiday period from Aug. 27 through Sept. 3 to 16 million. Decline comprises a 6.5% domestic drop and a 1% international increase. Air France KLM flew 20.1 billion RPKs in July, up 1.8% year-over-year, against a 3.9% increase in capacity to 23.82 billion ASKs. Load factor fell 1.8 points to 84.4%.
TAM took delivery of the first of eight 777-300ERs. Aircraft will seat 365 in three classes and operate to Santiago initially before transitioning to transatlantic service.
BAA completed the long-awaited £13.3 billion ($24.81 billion) refinancing of its seven UK airports, which it said will provide "a stable, long-term, investment grade financing platform for investment in [London] Heathrow, Gatwick and Stansted airports over the coming decades."
Lufthansa Chairman and CEO Wolfgang Mayrhuber said the company is "hitting the brakes" on personnel growth and will not be adding new employees, especially on the front line, in the foreseeable future. "We added 2,800 new staff this year. But based on the current environment in the aviation industry, we cannot guarantee adding any new jobs," he told the daily Neuen Osnabrucker Zeitung.
Swissport baggage handlers and check-in staff working at London Gatwick "overwhelmingly" voted to wage 24-hr. strikes on Aug. 25 and 29, the Unite union announced, adding that the dispute over pay "is likely to spread to other UK airports in the coming days and weeks." The union said 318 employees will strike and that 72% voted to strike.
