AirTran Airways reported net income of $52.7 million for 2007, more than triple a $14.7 million profit earned in the prior year, on a 22.1% boost in revenue to $2.31 billion. "We finished the year with a very strong revenue performance reflecting the high quality of our service and diversified network, which was especially important given the challenging operating environment and record high fuel costs in 2007," President and CEO Bob Fornaro said.
Northwest Airlines reported bankruptcy exit aided net income of $2.32 billion for 2007, a dramatic turnaround from a net loss of $2.86 billion in 2006 when it was operating under Chapter 11 protection. The carrier's 2007 pre-tax income excluding reorganization items was $764 million, a more-than-150% improvement over $301 million on similar terms in the prior year. It posted a fourth-quarter net loss of $8 million, narrowed from a net loss of $267 million in the 2006 period.
Airbus said MatlinPatterson Global Advisers placed an order for six A330-200 freighters for placement with companies in its portfolio such as Varig Logistica and Global Aero Logistics (holding company of ATA Airlines, World Airways and North American Airlines). Airbus now has sold 72 -200Fs to eight customers.
German travel conglomerate TUI announced yesterday that it signed an MOU with Lufthansa to combine their LCC subsidiaries under one "joint and independent holding company." TUI owns TUIfly, the combination of Hapag-Lloyd Flug and Hapag-Lloyd Express, while Lufthansa partners with Germanwings and Eurowings along with Albrecht Knauf Industriebeteiligung. The latter also signed the MOU, TUI said. Agence France Presse said a mid-2009 timeframe for finalization is TUI's target.
Lufthansa reached an 18-month deal with the Vereinigung Cockpit union representing approximately 4,400 LH pilots that will include a 2.5% pay increase backdated to Oct. 1, 2007, and an additional 3% raise from Jan. 1. In addition, pilots will receive a one-off payment equal to 25% of monthly salary "in recompense for the onerous workload and additional working hours the cockpit crews were called on to perform in the face of corporate growth," LH said.
Air Transport Assn. said the US airline cost index in the third quarter of 2007 was up 0.2% from the year-ago period. The consumer price index rose 2.4% over the same period, ATA said. Fuel, which accounted for 25.9% of expenses, rose 1.6% to $2.11 per gal. Unit operating cost per ASM was unchanged at 12.49 cents. "The slowing economy and sky-high fuel prices are putting tremendous pressure on US airlines to reduce nonfuel costs.
Singapore announced the conclusion of bilateral open skies agreements with Denmark, Norway and Sweden. The agreements provide for "unlimited hubbing rights" for cargo carriers as well as conventional open skies conditions. Singapore now has open skies arrangements with 13 EU countries.
A year that begin with much-publicized operational problems and ended with a fourth-quarter loss still was a positive one for JetBlue Airways, which reported net earnings of $18 million for 2007, reversed from a $1 million loss in the prior year and its first full-year profit since 2004.
Air France unveiled the new cabin on its narrobody fleet featuring "a host of aesthetic and practical new features." It will take delivery of seven A320 family aircraft featuring the new cabin through April. The first, an A321, went into service last Friday. The revamp includes larger overhead baggage bins, new ceilings/lighting, trim that appears to widen the windows and renovated passenger controls. New decor rounds out the changes.
Delta Air Lines will launch twice-daily Atlanta-Lawton/Fort Sill service on March 3 aboard an Atlantic Southeast Airlines CRJ200. On June 5 it will start daily flights from Los Angeles to Lihue and Kona and operate the routes with a mix of 757-200s, 767-300s and 767-400s. Seasonal ATL-Edinburgh service will operate thrice-weekly June 2-30 and daily July 1-Sept. 30 on a 757-200. Twice-weekly New York JFK-Antigua and Barbuda begins June 12.
Hahn Air signed interline e-ticketing agreements with Georgian Airways, Carpatair, Meridiana, Vladivostok Air, KrasAir, Domodedovo Airlines and Samara Airlines, bringing to 73 the number of carriers with which it interlines.
STG Aerospace said Boeing will extend its SafTGlo deal for five more years. Valued at $1.5 million, the contract will increase production for 737NGs to more than 30 aircraft per month during 2008.
Emirates SkyCargo and Dubai Customs signed an MOU to explore greater use of electronic correspondence in transactions between the airline and the agency and also in dealings with other supply chain partners. In addition, the initiative will allow importers and exporters to perform 51 customs transactions electronically without having to visit customs centers physically.
Japan Airlines said 320 flight attendants applied for its early retirement plan out of 900 who were eligible. Early retirement also has been offered to certain senior management and ground staff. JAL said 1,200 have taken advantage of the offers across the company in the past year. It intends to reduce personnel costs by ¥50 billion ($468.3 million) each fiscal year through FY2009-10 with a variety of initiatives ( ATWOnline, Oct. 15, 2007).
China's State-owned Assets Supervision and Administration Commission of the State Council has emerged as the controlling shareholder of the country's new large commercial aircraft manufacturing concern, according to Shanghai Securities News. Other stakeholders include AVIC I and AVIC II--which will hold the second-largest stake jointly--local government, Baosteel Group and Aluminum Corp. of China.
Heroux-Devtek's Aerostructure Division reached a five-year, C$110 million ($109.1 million) deal with Bombardier Aerospace to fabricate, assemble and deliver more than 200 structural detail components including spars, ribs, frame and engine mounts spanning the manufacturer's regional and business aircraft. Work will begin immediately and continue through December 2012.
Lufthansa flew 8.73 billion RPKs in December, up 5.5% from the year-ago month. Capacity rose 4.3% to 11.9 billion ASKs, lifting load factor 0.8 point to 73.4%.
EgyptAir will undertake an enormous effort in an attempt to join Star Alliance this year, giving the grouping a boost as it attempts to counter the influence of Emirates in that part of the world. "We are trying very hard to be a member by the fourth quarter of 2008," Chairman and CEO Sherif Saad Eldin Galal told ATWOnline in Cairo.
Jet Airways, India's sole profitable major carrier, yesterday reported a INR911 million ($23.1 million) loss for the fiscal third quarter ended Dec. 31, reversed from a profit of INR400 million in the year-ago period, ending a streak of four consecutive positive quarters.
Singapore Airlines yesterday was named Air Transport World's Airline of the Year for 2008, recognized for its superb safety record, exemplary commitment to operational excellence and customer service, and strong financial performance.
El Al will receive a significant financial boost from the Israeli government to cover rising security expenses in exchange for allowing smaller rivals Arkia Israel Airlines and Israir Airlines access to previously monopolized long-haul routes, according to widespread press reports. The move was in response to increasing pressure from foreign carriers, which have increased the number of seats offered to/from the country by 45% since April 2006, according to Reuters.
Lufthansa and DHL Express yesterday announced that their 50/50 joint venture cargo airline AeroLogic will be based at Leipzig/Halle Airport and have a fleet comprising 11 leased 777Fs by 2012.
Continental Airlines pilots represented by the Air Line Pilots Assn. took a harder stance against consolidation than some of their US counterparts Friday, issuing a statement saying, "We agree with management that we are content as a profitable, standalone entity." The union launched a response team center in reaction to recent speculation and said, "the pilots of Continental must be key in the decision to welcome or reject any merger candidate."
The Washington state senate is considering passenger rights legislation along the lines of the New York state law that took effect earlier this month, and the Air Transport Assn. estimates that as many as 12 state legislatures may attempt to pass similar bills this year. ATA has appealed a federal judge's decision to uphold the New York law, arguing that states do not have the jurisdication to regulate airlines ( ATWOnline, Dec. 24, 2007).
