L'Avion celebrated its first anniversary this month and said it transported more than 34,000 passengers in its first year, with a 79% load factor achieved last month. It will introduce a second 757-200 configured with 90 business class seats on Jan. 20, when it will operate Paris Orly-Newark.
Indian government relaxed certain industrial foreign investment rules and now will allow foreign investors to hold 100% of MRO and training organizations dedicated to civil aviation activities. Foreign direct investment in commercial airlines will continue to be capped at 49%, with nonresident Indians allowed to hold 100% as long as no foreign airlines are participating. FDI in ground handling enterprises will be capped at 74%.
ASIG won a seven-year deal to provide full ground handling services to the 16 airlines operating at New York JFK's Terminal 1, where more than 10,000 flights and 4 million passengers are expected each year. Services include ramp handling, tower coordination, bag room staffing, lavatory and water service, cargo and mail handling and aircraft deicing. Operations are scheduled to begin Feb. 1.
Alaska Air Group is not interested in participating in the consolidation rumored to be facing the US commercial aviation industry. "For us, the best future appears to be to remain independent," AAG Chairman Bill Ayer told The News Tribune.
Norwegian took delivery of the first of 50 737-800s. Aircraft is on lease from Babcock & Brown. Norwegian will lease seven more along with its order for 42 directly from Boeing ( ATWOnline, Aug. 31, 2007). Norwegian flew 430 million RPKs in December, a 45% increase over the year-ago month. Capacity climbed 32% to 559 million ASKs and load factor rose 7 points to 77%. Yield fell 15% to NOK0.60 ($0.11).
China Southern Airlines deepened its cooperation with Air France by signing a memorandum yesterday to sell a 20% stake in its Nanlian Air Catering Co. to AF subsidiary Servair for €7.3 million ($10.8 million). Launched in 1989, Nanlian has registered capital of CNY120 million ($16.7 million) and previously was held by CZ (75%) and Hong Kong Ruilian Investment (25%).
UPS reported a 2007 net profit of $447 million, down 89.4% from $4.2 billion in 2006 owing mainly to a $6.1 billion pension payment related to a new labor contract agreed to in the fourth quarter with the International Brotherhood of Teamsters representing 45,000 of its employees. But Chairman and CEO Scott Davis did note that the "economic environment" is "increasingly challenging" and warned of a "sluggish US economy." Full-year revenue rose 4.5% to $49.69 billion driven by a 13.1% lift in international package revenue, which relies heavily on UPS Airlines, to $10.28 billion.
Aeroflot remains interested in Serbia's Jat Airways, according to SU Deputy DG Mikhail Polyboyarinov ( ATWOnline, June 4, 2007). He told reporters in Moscow that SU is seeking a partner for a joint bid for Jat and that a tender may take place as early as late March. "A valuation is currently being performed," he said, according to Thomson Financial. In other SU news, the carrier took delivery of its 14th A320 this month, on lease from GECAS.
LAN reported net income of $308 million for 2007, a 27.8% increase over $241 million earned in the prior year, as the airline company was rewarded for its ongoing rapid expansion. LAN this year plans to grow passenger capacity 20%-22% and cargo ATKs 8%-10%, accelerating its already fast rate of growth in recent years. Full-year 2007 revenue rose 16.2% to $3.53 billion while expenses escalated 13.9% to $3.11 billion, producing operating income of $413 million, up 36.6% from $303 million in 2006.
EADS and Airbus CFO Hans Peter Ring will relinquish his role at the aircraft manufacturer and stay on at the parent company. Airbus Chief Controlling Officer Harald Wilhelm will become CFO on Feb. 1.
Lufthansa will launch weekly Frankfurt-Luanda on April 1 aboard an A340-300. WestJet will start seasonal services from Hamilton to Nassau (weekly), Fort Lauderdale (twice-weekly) and Orlando International (twice-weekly) on Feb. 15 and to Tampa on Feb. 18. Iberia increased daily Madrid-Bogota A340 service to 10-times-weekly. Air New Zealand will launch twice-weekly Auckland-Beijing on July 18 with a 777-200ER.
Boeing recorded a bumper year in 2007 with an 84% increase in net income to $4.1 billion on revenues that rose 8% to $66.4 billion as backlog reached a record $327 billion, up 31% on the previous year. Commenting on the result, Chairman Jim McNerney said, "The 2007 results demonstrate the kind of quality financial performance we can achieve through our simultaneous focus on growth and productivity. Despite some development program challenges, we are a strong company growing stronger, and we expect continued improvement in our financial results in 2008 and beyond."
GuestLogix will deploy its Mobile Virtual Store onboard solution across the fleet of Sweden's Skyways under a multiyear agreement. Technology features wireless POS devices and application service to streamline onboard sales transactions. Klarago AB assisted in the deal.
Gol Linhas Aereas Inteligentes said its Varig subsidiary will adjust its network in an "aim at improving efficiency and the quality of services." Domestic flights will be reconfigured with business travelers in mind and making use of a policy reinstating connections at Sao Paulo Congonhas. Varig Marketing Director Murilo Barbosa said the airline intends to replace its 737-300 fleet with 737-700s/-800s by year end.
Malaysia Airlines flew 3.55 billion RPKs in December, down 0.9% from the year-ago month. Capacity fell 2.3% to 4.8 billion ASKs, lifting load factor 1.1 points to 73.9%. Airberlin transported 1.9 million passengers in December, up 16.6% from the year-ago month. Load factor rose 3.2 points to 71.7% and unit revenue climbed 2.2% to 4.55 euro cents. ATA Airlines flew 397.4 million scheduled RPMs in December, up 8.7% from the year-ago month. Capacity rose 4.4% to 482.9 million ASMs, lifting load factor 3.2 points to 82.3%.
Allegiant Air parent Allegiant Travel Co. appears to have found the right formula in the congested US market as efforts to develop ancillary revenue streams and expansion into high-demand leisure markets helped produce a $31.5 million full-year profit, more than triple the $8.7 million earned in 2006.
Gol Linhas Aereas Inteligentes, parent of Gol and Varig, announced a one-year share repurchase program of up to 5 million preferred shares, representing 8.8% of the total outstanding. The shares will be held in treasury and resold or canceled, the company said.
UPS earlier this month for the first time operated two revenue flights simultaneously using Aviation Communication & Surveillance Systems' ADS-B-based SafeRoute program aboard 757-200Fs and plans to conduct such flights about once a week over the next two months as it gradually equips aircraft and trains pilots.
Rolls-Royce reached a deal with Oman Air for Trent 700 engines to power its five purchased and two leased A330s that begin delivery in 2009 ( ATWOnline, Nov. 14, 2007). Value of the contract, which includes a TotalCare package, is $460 million at list prices.
Eurofly has decided not to convert its original order for three A350s into the redesigned XWB, preferring not to wait the extra two years for delivery, it said in a stock exchange filing cited by Bloomberg News. It originally had expected delivery in 2013 ( ATWOnline, Oct. 14, 2005). It currently operates eight A320s and four A330s and said the contract cancellation will not impact its bottom line negatively.
Continental Airlines will join the roster of carriers offering live television and wireless connectivity inflight, announcing yesterday an agreement with JetBlue Airways subsidiary LiveTV to provide 36 channels of DirecTV at "every seat" of CO's 737NGs and 757-300s and inflight Wi-Fi services beginning in January 2009. First class customers will receive the television service free while economy passengers will be charged $6. Wi-Fi service featuring e-mail and instant messaging will be free and is similar to the BetaBlue product debuted by JetBlue last month.
Delta Air Lines flew 9.72 billion system RPMs in December, up 3% over the year-ago month. Capacity rose 3.1% to 12.5 billion ASMs and load factor dipped 0.1 point to 77.7%. Alaska Airlines flew 1.56 billion RPMs in December, up 6.3% from the year-ago month, against a 5.2% increase in capacity to 2.06 billion ASMs. Load factor rose 0.7 point to 75.8%. Spanair flew 587 million RPKs in December, a 1.4% increase from the year-ago month. Capacity was level at 979 million ASKs and load factor rose 0.8 point to 60%.
