FedEx reported net income for its fiscal second quarter ended Nov. 30 of $479 million, down 6% from $511 million last year despite a 6% boost in revenue to $9.45 billion. Chairman, President and CEO Frederick Smith cited "high fuel prices and weak US economic growth" in explaining the profit drop. He added that "challenging near-term economic trends" likely will affect earnings for the remainder of the fiscal year, but said long-term confidence remains high, particularly in its international express business.
Cathay Pacific Airways announced an agreement with the Flight Attendants Union on adjustments to the company's medical plan, ending threats of a work stoppage during the Christmas/New Year period.
Jade Cargo International named Lufthansa Cargo Head of Transport Management and Flight Operations Kay Kratky as its new GM. Claus Richter, who had been head of operational support and acting leader of flight operations at LH's passenger division, will succeed Kratky.
Following months of lobbying against the potential implementation of congestion pricing and/or an auction of existing capacity at New York JFK and Newark, US airlines operating at the airports appear willing to accept flight caps and make voluntary scheduling changes to avoid imposition of what they believe would have been far more damaging congestion-reduction proposals.
Italian Transport Minister Alessandro Bianchi told Il Sole 24 Ore that the government is completely satisfied with the nonbinding bids for Alitalia offered by Air France KLM and Air One parent AP Holding ( ATWOnline, Dec. 20) and will look to take time over the next two weeks to "eliminate weak points, suggest corrections that further the public interest" and "work within the offers to improve them," Reuters reported.
World Airways signed long-term leases with Aircastle for two 747-400 freighters to be delivered in March and October 2008. World's freighter fleet currently consists of six MD-11Fs and two DC-10-30Fs.
Air France announced yesterday that passengers onboard an A318 operating in Europe now can send and receive SMS and MMS messages and e-mails via mobile phones with Internet access using the Mobile OnAir system. The capability is similar to the one JetBlue Airways launched last week on an A320 ( ATWOnline, Dec. 12). First flight occurred Monday between Paris Charles de Gaulle and Warsaw.
Boeing's order book was boosted this week by orders for two 777-200LRs for Delta Air Lines, three unidentified 787s, 31 737NGs for AWAS and 31 737-800s for Qantas. The 737 orders were announced previously but now have been booked ( ATWOnline, Dec. 17). This week's orders bring Boeing's 2007 gross to 1,223 with the net figure at 1,213. It said the QF order was valued at $2.3 billion at list prices ( ATWOnline, Nov. 15).
Iberia flew 4.42 billion RPKs in November, up 5.2% on the year-ago month. Capacity rose 3.3% to 5.55 billion ASKs, lifting load factor 1.4 points to 79.5%.
Rockwell Collins reached agreement with China Eastern Airlines to launch its dPAVES IFES for 30 A320s and six 737-800s. Deliveries are scheduled to begin next year and continue through 2010.
The world now will have to wait until next month to learn the identity of Alitalia's savior as the Italian government decided to hold off until at least mid-January to determine with whom to negotiate the sale of its 49.9% stake.
GE Aviation reached a 10-year material management deal with Evergreen Aviation Technologies covering CF6-80C2s for EGAT third-party customers. GE's OnPoint Solution contract includes overhaul, on-wing support, new and used serviceable parts, component repair, technology upgrades and engine leasing and diagnostics.
European Commission will launch a formal investigation into alleged illegal state aid to Olympic Airlines that may have followed the EC's September 2005 decision that the Greek government provided "illegal and incompatible" aid. "The thorough preliminary investigation we have conducted so far following complaints by competitors has not allayed our doubts that further aid may have been granted to [Olympic], and we have no choice but to open a formal investigation," VP-Transport Jacques Barrot said ( ATWOnline, Dec.
Standard Aero won two APU maintenance contracts from Lufthansa CityLine valued at $9 million. One is a Standard Aero Total Engine Asset Management program agreement, a five-year pay-by-the-hour deal for GTCP36-150RJ APUs on 24 CRJ200s. The other is a 10-year TEAM maintenance cost guarantee program contract for RE220 APUs on 12 existing and 15 forthcoming CRJ900s.
Qantas and MAS Aerospace Engineering, a wholly owned subsidiary of Malaysia Airlines, signed an MOU to form a joint venture to provide aircraft maintenance services from Malaysia. Qantas CEO Geoff Dixon said the new company will target the rapidly growing Asia/Pacific MRO market, which is expected to reach $15 billion by 2016. It also will perform overflow airframe maintenance for QF and its subsidiary airlines. Dixon said he was confident the companies would create a world-class yet cost-competitive MRO.
United Airlines expects fourth-quarter mainline passenger RASM to increase 11.5%-12.5% year-over-year and consolidated PRASM to rise 11%-12% from the year-ago quarter, it said in a filing with the US Securities and Exchange Commission. Mainline RPMs are expected to decline 1.25%-1.75% against a 0.8% drop in capacity, while consolidated RPMs will fall at the same rate but against a 0.5% ASM decline. "North American PRASM has strengthened supported by capacity reductions while international PRASM remains strong," UA said.
Finnair said FL Group, the second-largest shareholder in the carrier behind the Finnish government, reduced its stake to 12.7% from 24.4% by selling 15 million shares. The Icelandic investor said the move "is in line with FL Group's strategy to lower exposure to the aviation sector" and would result in a ISK2.8 billion ($44.4 million) loss. FLG said it remains the second-largest shareholder and "continues to support Finnair's ambitious growth strategy."
Grupo Marsans said yesterday that it has made a formal offer for SAS subsidiary Spanair and that it expects a reply in early 2008, according to press reports from Madrid ( ATWOnline, Oct. 5). Marsans' business plan reportedly includes the opening of a hub in Barcelona.
Orient Thai Airlines and its low-cost subsidiary One-Two-Go Airlines are to undergo a $2.5 billion fleet revamp, according to a statement by founder and CEO Udom Tantiprasongchai cited in press reports from Bangkok. The airline group intends to buy eight 787-9s and 12 737-900ERs. It now operates a fleet of 18 aircraft comprising 747-200s and MD-80s. OTA has been cited by Korean and Japanese authorities on safety issues and one of its MD-80s crashed in Phuket in September, killing 89 ( ATWOnline, Sept. 18).
Delta Air Lines named United Airlines Cargo VP-Sales and Marketing Neel Shah as VP-cargo effective Jan. 14. He replaces MD-Cargo Ben Darnell, who is leaving the company.
Following weeks of contentious rhetoric over the US Dept. of Transportation's intention to implement a "market-driven" plan for reducing delays at New York airports, Transportation Secretary Mary Peters and US airlines yesterday announced a compromise solution in which flights will be capped at JFK during peak hours and carriers will make voluntary scheduling changes. Neither congestion pricing nor auctioning of existing capacity will be imposed.
Fraport said it got the green light from German authorities to expand Frankfurt Airport, clearing a major hurdle for the €4 billion ($5.8 billion) project that includes construction of a fourth runway scheduled to become operational in 2011 at the latest and a third passenger terminal expected to be ready in 2013-14. The new terminal will be located to the south at the former US Air Force base. T3 should raise FRA's current annual capacity of 56 million passengers by some 44%, Reuters reported.
Skybus Airlines lost $16 million in the third quarter, according to statistics the startup LCC provided to the US Dept. of Transportation and cited by several press reports. Revenue was $22 million as the carrier achieved a 79% load factor. Yield was just 5.08 cents. The Ohio-based airline told media that the results were "in line" with expectations.
