EasyJet launched easyJet Plus, a "membership card" that offers passengers free access to its so-called Speedy Boarding or priority boarding without a reservation. At selected airports, the card also will allow access to priority check-in service. EasyJet is expanding its "Speedy Boarding Plus" offering, a combination of priority boarding with a dedicated check-in desk, throughout its network. It currently is available at some 30 airports. EasyJet Plus costs £75 ($150.63) for one year if purchased before April 30 and £100 thereafter.
Lufthansa reported a net profit of €1.66 billion for 2007, more than double the €803 million earned in the prior year, on a 13% rise in revenue to €22.42 billion, both records for the German airline group as results were boosted by a book gain of about €503 million from the sale of its shares in Thomas Cook.
Shanghai-based Spring Airlines posted a record net profit of CNY70 million ($9.8 million) in 2007, more than double the previous year's result. Operating revenue rose to CNY1.23 billion, but industry analysts credited effective cost control for the profit result. According to CAAC statistics, Spring's operating expenses were 18% lower than the domestic average. The carrier is one of the few profitable Chinese LCCs and operates a single fleet type (A320) with an all-economy cabin configuration.
Southwest Airlines removed 38 737 Classics from service yesterday for inspections, leading to cancellation of 4% of its schedule, a move that resulted from its "ongoing internal review of. . .maintenance programs, policies and procedures" launched in the aftermath of last week's FAA-proposed $10.2 million civil penalty for alleged safety lapses.
Jet Aviation Handling will be rebranded as Dnata Switzerland. The new name follows the acquisition of the Swiss airport services provider by Dnata in November 2007.
JP Morgan projected a collective full-year loss of $4 billion-$9 billion for US airlines yesterday. In a research note, analyst Jamie Baker forecast continuing high oil prices and declining demand and warned, "We don't believe the industry can move quickly enough to put much of dent in forecasted losses." He projected a decline in demand of 6%-7% owing to a weak US economy that JP Morgan believes is already in a recession. "Even a best-ever recessionary demand scenario results in a $4 billion industry loss," Baker wrote.
El Al said it is "continuing advanced discussions with Boeing" to order four 777-200s for delivery beginning in 2012 that will be used on US-Israel routes. It will have the option to switch to the 777-300. A decision on the order is expected before year end.
Air Berlin's acquisition of LTU has proven to be costly, as the German LCC reported a steep drop in full-year profit to €11 million ($16.9 million) from the €50.1 million earned in 2006. "We are right on track with the LTU integration," CEO Joachim Hunold said yesterday as the carrier released preliminary financial figures. "Although the preliminary earnings for 2007 did not meet our expectations, we have reason to be optimistic for 2008." He said capacity utilization and unit revenue improved "significantly" through February and he was "pleased" with bookings.
Aer Lingus did well in its first full year as a privatized company, with a net profit of €105.3 million ($161.8 million) compared to a net loss of €69.9 million in 2006. Revenue rose 15.2% to €1.28 billion on a 7.8% growth in passengers to 9.3 million. Operating costs increased 15.1% to €1.19 billion, primarily owing to greater volumes and higher oil prices. Fuel cost jumped 26.3% on an underlying basis to €253.3 million. Operating profit before employee profit share came in at €88.5 million, up 16.4% from €76 million a year earlier.
Air France confirmed that its offices were raided this week by the European Commission as part of its investigation into alleged price-fixing practices on passenger flights between Europe and Japan ( ATWOnline, March 12). Lufthansa and KLM revealed Tuesday that they had been targeted. "Air France confirms that in similar fashion to other airlines, it is being questioned by the European Commission about links between the EU Union and Japan.
Royal Jordanian took delivery of the first of four new A319s in two-class configuration. The second will arrive in October and the remaining two in February and March next year. RJ also will introduce two new A321s and two E-175s during the coming three months while phasing out two older A321s. Its fleet will consist of 30 aircraft in June.
The European Commission yesterday conducted so-called unannounced inspections at the premises of a number of international passenger airlines operating long-haul flights to Japan, suspecting them of price-fixing. "The Commission has reason to believe that the companies concerned may have violated EC rules on restrictive business practices," it said in a statement that followed the release of a regulatory filing by Lufthansa admitting its offices were raided.
BAA announced an agreement to sell World Duty Free Europe to Italy's Autogrill for £546.6 million ($1.1 billion) "as part of its ongoing noncore asset disposal program." WDFE will enter into a 12-year concession agreement to operate duty free shops at BAA's seven airports. Autogrill operates more than 5,200 shops in more than 1,100 locations and had sales of £4.8 billion last year.
SITA and Rwanda Civil Aviation Authority announced forthcoming installation of air traffic information system Digital-ATIS and an air-ground data link service at Kigali. The technology, which is in keeping with ICAO's Comprehensive Regional Implementation Plan for Aviation Safety in Africa, will reduce reliance on voice communications and is expected to be in place by year end.
European Parliament yesterday adopted a new regulation that lays down common rules and standards for aviation security throughout the EU. The vote follows the agreement reached two months ago in conciliation between European Parliament and Council representatives ( ATWOnline, Jan. 15). The regulation will enter into force on the 20th day after publication in the Official Journal and will be applied not later than 24 months later.
Singapore Airlines took delivery of the third production A380 (MSN006) Saturday. The Trent 900-powered, 471-seat aircraft will be placed into Singapore-London Heathrow service on March 18 ( ATWOnline, Jan. 31).
The chief executives of Delta Air Lines and Northwest Airlines both warned this week that rising oil prices are having a severe impact on carriers and jeopardizing the industry's recent return to profitability. Speaking at the FAA Aviation Forecast Conference in Washington, DL CEO Richard Anderson said high fuel costs are the "first and foremost issue" for the airline industry, with $105-plus per-barrel crude oil prices "really having a debilitating, negative effect."
Austrian Airlines Group's principal shareholder, state holding company OIAG, reached a deal with Saudi-Austrian investor Mohamed bin Iassa Al-Jaber to take a stake in the carrier through a capital increase ( ATWOnline, Feb. 22). The investment of approximately €150 million ($230.1 million) will enable Austrian Airlines to purchase three A320s for operations to the Middle East, Austrian media reported.
Indonesia's dismal safety record is in the headlines again, and Adam Air faces a potential grounding after one of its 737-400s skidded off the runway at Batam Island's Hang Nadim Airport Monday, injuring five of the 176 passengers and crew onboard. The right wing, hydraulic system and main landing gear were damaged. The incident, Adam's third in 18 months, prompted Indonesian Transport Minister Jusman Syafii Djamal to warn that he may ground the airline. "We are giving them a chance to improve.
Airbus parent EADS reported a net loss of €446 million ($685.3 million) for 2007, reversed from a net profit of €99 million the previous year, as the company was hurt by Power8 restructuring costs, A350 XWB program startup charges, the declining value of the US dollar and a 6-12-month delay to the A400M military transport aircraft program.
Biman Bangladesh Airlines selected Boeing for its long-haul fleet renewal, Civil Aviation Minister Mahbub Jamil told reporters this week in Dhaka, according to widespread press reports ( ATWOnline, Feb. 27). BG will purchase four 787-8s (for delivery in 2017) and four 777-300ERs (2013 delivery) for $1.26 billion, Jamil said, and plans to sign a preliminary agreement by Saturday and a contract by April 15.
Ukraine International Airlines will add blended winglets to its fleet of 737-300s and -500s. Five aircraft will be upgraded before year end. It currently operates 15 737-300s/-400s/-500s.
