Malev Hungarian Airlines will cancel its loss-making long-haul service from Budapest to New York JFK and Toronto this fall and withdraw two 767s from its fleet. Last flight to YYZ departs Sept. 21 and the final JFK service will be Oct. 25, ending the carrier's North American presence. "The major hike in expenditure makes it completely unviable for an airline the size of Malev to operate long-haul services economically," it said, adding that it intends to focus its resources on its European network, especially Eastern Europe, and strengthening its regional market share.
Lufthansa yesterday continued to suffer the effects of the 36-hr. strike launched Tuesday by pilots at regional subsidiaries CityLine and Eurowings ( ATWOnline, July 23). "We do not know the amount of damages we will suffer from the pilot walkout. It is not easy for us to even offer details of how many flights we had to cancel during the last 36 hours," an LH spokesperson told ATWOnline. The number will be somewhere between 900 and 1,000. The Vereinigung Cockpit union called the strike that was scheduled to last until 11 p.m.
Aviation Partners Boeing said the first blended winglet-equipped 767-300ER flew on July 20. Aircraft belongs to American Airlines and operated a ferry flight from Kansas City to San Bernardino, where it will undergo two months of certification and performance testing. Winglets measure 3.4 m. and were manufactured by GKN Aerospace. US FAA and EASA certification is expected in November with revenue service beginning the following month. APB said it has 130 767-300ER shipset orders from 10 airlines.
WestJet now is allowing passengers to select their seats prior to 24 hr. before departure for a C$10 ($9.96) fee. Reserving an emergency exit row seat costs $15. Selecting a seat within 24 hr. of takeoff or at the airport will remain free. Separately, it will launch seasonal twice-weekly Regina-Las Vegas starting Sept. 8.
Boeing reported a 19% drop in second-quarter net income to $852 million from $1.05 billion last year and its Commercial Airplanes unit posted a 19% decrease in operating earnings to $777 million from $960 million in the year-ago period. But Chairman, President and CEO Jim McNerney predicted that the company will fare better in the year's second half and produce a solid performance that will allow it to match its reaffirmed earnings guidance of $5.70-$5.85 per share for full-year 2008.
Philippine Airlines subsidiaries PAL Express and Air Philippines will launch operations today at Manila Ninoy Aquino's new Terminal 3. The two carriers will operate a combined 131 weekly flights from the facility. The mainline will continue to operate out of T2.
Qantas Airways CEO Geoff Dixon said he believes the airline industry is on the verge of a period of consolidation into a few very large carriers that will be able to cope better with higher fuel costs.
Garuda Indonesia pilot Marwoto Komar, who captained the 737 that crashed at Yogyakarta in March 2007, will go on trial beginning today, Deputy Attorney General-General Crimes Abdul Hakim Ritonga told reporters, according to Reuters. Komar was arrested on manslaughter charges in February ( ATWOnline, Feb. 6). Ritonga said that "both aviation and criminal codes can be used" at the trial, at which Komar will be charged with "negligence." Twenty-one people died in the crash.
SunExpress, the joint venture between Turkish Airlines and Lufthansa, said first-half turnover rose 31.3% year-over-year to €161.6 million ($256.8 million). Passenger numbers climbed 35% to 1.8 million and load factor was up 2.9 points to 75%. MD Paul Schwaiger said demand is very strong and that the carrier has had to lease an additional 737-800, resulting in a fleet of 18 -800s and 757-200s.
Ryanair said it won a third injunction, this time from the TAR Lazio court, overturning ENAC's decision to divert late-evening flights from Rome Ciampino to Fiumicino. The LCC said the aviation authority "unlawfully" diverted 18 flights this year.
Atlantic Southeast Airlines flight attendants represented by the Assn. of Flight Attendants ratified a new three-year contract, with 70% of participating cabin staff voting in favor.
Rising load factor and ancillary revenue, in addition to capacity cuts by competitors, helped Allegiant Air parent Allegiant Travel Co. to a $2.6 million second-quarter profit that was a steep drop from the $10 million earned in the year-ago quarter but left it as "yet again one of the few companies in our space who are profitable," according to Chairman, President and CEO Maurice Gallagher Jr.
Continental Airlines and nine Star Alliance carriers asked the US Dept. of Transportation to allow CO to join the group already holding antitrust immunity. CO last month declared its intention to leave SkyTeam and join Star ( ATWOnline, June 20).
Transaero announced a partnership with Gazprom Neft that "guarantees prompt and efficient jet fuel supply" in Russia "on favorable terms" in return for reduced fares for Gazprom employees.
Ukraine International Airlines launched thrice-weekly 737-300SF cargo service between Kiev Boryspil and Vienna in partnership with Austrian Airlines, European Cargo Services and TNT. Service increases to five-times-weekly on Sept. 1. Five-times-weekly flights to Liege via VIE will begin in September. UIA said its cargo subsidiary also will offer charter flights and is negotiating with "prospective clients."
Northwest Airlines reported a second-quarter net loss of $377 million owing mainly to a noncash goodwill impairment charge of $547 million, reversed from a $2.15 billion profit in the year-ago period that benefited heavily from one-time bankruptcy exit gains. Absent the goodwill impairment charge, NWA said it would have posted $170 million in net income for the quarter, down 17% from $205 million earned excluding Chapter 11 restructuring gains in the same period last year. The carrier said it benefited in the 2008 second quarter from a $250 million gain related to fuel hedging.
Rockwell Collins reached a deal with ILFC to add its Digital Programmable Audio Video Entertainment System as an option included with its PAVES analog technology onboard 737NGs. System features a broadcast digital server with moving map hosting capabilities.
United Airlines parent UAL Corp. reported a second-quarter net loss of $2.7 billion mostly attributable to $2.6 billion in previously announced accounting charges, reversed from a $274 million profit in the year-ago period, and said it will slash 5,500 frontline workers by the end of 2009 in addition to the 1,400-1,600 salaried and management employees and contractors it already planned to cut.
Lufthansa said it was "surprised" by a strike called by 1,000 pilots flying for LH subsidiaries Eurowings and CityLine that resulted in the cancellation of 465 flights yesterday and 525 scheduled for today. Pilots walked out at noon yesterday and will remain on strike until midnight tonight. The Cockpit union called the strike on short notice and said all major airports in Germany would be affected. Its strike window will close at the end of this week, but it is expected that members will vote on further strike action shortly.
Airbus won EASA certification for its OnAir mobile phone system for its single-aisle aircraft. The manufacturer is the first to receive this type of certification for production and forward-fit installation. Separately, EASA granted Airbus Production Organization Approval, recognizing the manufacturer's status as a single integrated European company and confirming the establishment of a global quality framework for management, responsibilities, procedures and resources.
Copa Airlines placed a firm order for two additional 737-800s for delivery in 2010 and 2011, increasing the total number of 737NGs it has on order to nine. Its fleet currently is comprised of 27 737NGs and 13 E-190s. Its -800s seat 16 in business class and144 in economy.
JetBlue Airways unveiled plans to cancel growth plans and defer aircraft deliveries as it announced a second-quarter net loss of $7 million, reversed from a $21 million profit in the year-ago period. CEO Dave Barger said the LCC enjoyed "strong unit revenue growth" during the quarter and that summer bookings showed "continued strength," but that like its US counterparts it is facing an environment in which "revenue gains are clearly not keeping pace with the extraordinary increase in the price of jet fuel."
UPS reported a 20.9% drop in second-quarter net income to $873 million from $1.13 billion last year. Revenue rose 6.7% to $13 billion but expenses lifted 10.8% to $11.55 billion, producing an operating profit of $1.45 billion, down 17.6% from $1.77 billion in the same period last year. Total international package revenue, which is tied heavily to air operations, rose 17.9% to $2.95 billion, but international package operating margin fell 5.2 points year-over-year to 13.8%.
