US airlines enjoyed another strong financial quarter in the three months ended Sept. 30, with the 10 largest carriers all in the black for the second straight reporting period and posting a cumulative net profit of $1.67 billion compared to a $738 million loss in the year-ago quarter. But executives worry that the next down cycle may not be too far away. Fuel costs are ascending rapidly and the US airline industry doesn't exactly have a history of long-term financial stability.
In addition, V Australia, Virgin Blue's new long-haul airline, will adopt the Amadeus Altea Customer Management System. The standalone solutions for the company's short-haul operations will manage connectivity on behalf of Virgin Blue's interline and GDS partners. They also will process incoming e-ticket coupons from interline partners, enabling Virgin Blue to receive passengers from full-service carriers such as Etihad and Virgin Atlantic.
PERHAPS EASYJET GOT TIRED OF ITS moniker: Europe's second-largest low-cost carrier. Or perhaps CEO Andrew Harrison decided he had better move before someone else did. In either case, the LCC's purchase of GB Airways in late October for £103.5 million ($212.1 million) in cash has altered the competitive landscape by making easyJet the leading short-haul carrier at London Gatwick while further cementing the lead over Ryanair in terms of revenues that it gained when it acquired Go Fly, British Airways' low-fare airline subsidiary, in May 2002.
Alaska long has been called America's last frontierthe final refuge for the restless, the risk-takers and the adventurers. But it also has been an entrepreneurial frontier, providing a chance to build business success from its vast expanses of undeveloped wilderness. The founding fathers of Alaska Airlines, marking its 75th birthday this year, were both adventurers and entrepreneurs. And certainly they were risk-takers, bush pilots par excellence who often literally flew on a wing and a prayer.
SIX YEARS AFTER A SEISMIC SHIFT IN ALL ITS PARADIGMS, aviation security is still shifting gears, still testing technology that holds the promise to accelerate, automate andmost importantlyintegrate the process. It is doing so in the face of shifting challenges, as evidenced by the 8/10/06 terror plot in the UK that led to current draconian restrictions on the transport of liquids in the cabin.
AeroTurbine promoted Michael King to president. Air Canada named Michael Rousseau CFO. Airports Council International elected Aeroports de Montreal President & CEO James Cherry chairman for a two-year term. AirTran Holdings elevated Robert L. Fornaro to CEO & president. Allegiant Air named Andrew Levy CFO and Scott Sheldon principal accounting officer. AWAS appointed John Nozell chief investment officer. BAE Systems tapped Paul Tattersall as VP-trading & services-Asset Management business.
IATA estimates that the airline industry "may need 17,000 new pilots annually due to expected industry growth and retirements" and cautioned that training standards need to be revised in order to tackle a "looming" shortage. "It's time to ring the warning bell," DG and CEO Giovanni Bisignani told the FAA International Safety Forum yesterday. "We must re-think pilot training and qualification to further improve safety and increase training capacity. There are no global standards for training concepts or regulation.
Qantas is facing a bumpy ride, with industrial upheaval looming over Christmas and a potential class action suit related to the airline's cargo price-fixing plea ( ATWOnline, Nov. 28).
Grand China Air, created by HNA Group to be the country's fourth-largest commercial carrier, today will operate its first flight from Beijing to Dalian, although it postponed the ceremony to mark its launch to next month.
Orbitz Worldwide and Priceline.com reached distribution agreements with JetBlue Airways. The Orbitz deal will make JetBlue inventory available on the Orbitz, CheapTickets and Orbitz for Business websites while the Priceline agreement will give the discount site full access to JetBlue fares under a multi-year deal.
RAK Airways, the Ras Al Khaimah-based startup, operated its inaugural flight yesterday to Beirut (a thrice-weekly service) and also launched service to Colombo (thrice-weekly), Sofia (weekly) and Dhaka (thrice-weekly) with 757s. The carrier said it will unveil routes to India, Nepal, Qatar and Tanzania in the next three months "as part of an ambitious growth strategy." COO Khalid Almeer said RAK will acquire 6-8 narrowbody aircraft within two years and serve 20 destinations in the Gulf, South Asia, the Middle East and East Africa.
Alitalia revised the deadline for nonbinding offers to Dec. 6 after receiving an update from its adviser, Citigroup, on potential industrial and financial investors who may bid for a majority shareholding. Air One/Intesa Sanpaolo, Lufthansa and Air France KLM reportedly remain interested ( ATWOnline, Nov. 21).
Coalition of Smaller Airlines, a group representing midsize US carriers including Virgin America, AirTran Airways, Spirit Airlines and Frontier Airlines, is lobbying the US Dept. of Transportation to ensure that any new traffic management rules at New York JFK ( ATWOnline, Nov. 29) do not unduly favor major international airlines. "We've got to find a solution. . .that doesn't shut out smaller airlines, which in many cases are offering premium service at lower fares," VA Vice Chairman Samuel Skinner said.
TAM CEO Marco Antonio Bologna resigned Wednesday to join TAM Empreendimentos e Participacoes, which the airline described as "a company pertaining to the Company's controlling block." He will be succeeded by VP-Operations David Barioni Neto, who in turn will be succeeded by Fernando Sporleder Jr.
Rolls-Royce yesterday said the engines selected by Hawaiian Airlines on Wednesday are worth $460 million at list prices. HA placed an order for six Trent XWB-powered A350 XWB-800s and six Trent 700-powered A330-200s ( ATWOnline, Nov. 29).
Russian court ruled yesterday that Boris Berezovsky, a longtime political enemy of Russian President Vladimir Putin who has been living in exile in the UK since 2000, fraudulently embezzled RUB214 million ($8.78 million) from Aeroflot when he maintained financial control over the carrier in the 1990s. He rejected the verdict as a "farce" and the UK government said it would not extradite Berezovsky to Russia.
American Airlines parent AMR Corp. may have decided to sell off its regional subsidiary American Eagle but there may not be a frantic rush by other regional airlines or investors to acquire it.
Malev Hungarian Airlines announced that it will cut staffing levels by 9%, resulting in annual savings of HUF1.2 billion ($6.9 million). It did not say when the layoffs will take place. The carrier employs 3,508 and said it will cut a "maximum" of 250 workers even though 9% would equal 315. CEO Peter Leonov confirmed the 9% figure, saying that "besides reducing expenditures, optimization of the staff level is necessary primarily to ensure that 91% of the employees. .
AirBaltic will launch thrice-weekly Vilnius-Paris Charles de Gaulle service on March 31 using 737-500s. Singapore Airlines will increase its Singapore-Milan Malpensa-Barcelona service to daily from four-times-weekly beginning Jan. 14. Flights are aboard 777-300ERs.
Airbus's hopes to make some quick sales of the A380 to ANA and Cathay Pacific Airways appear to have faded, with the former playing down speculation that it is on the verge of ordering the aircraft. A spokesperson told ATWOnline yesterday that ANA is "continuously in talks with the manufacturers and will watch the introduction of the A380 with interest and examine it and the 747-8I when the time is right." At last month's handover of the first A380 to Singapore Airlines ( ATWOnline, Oct.
Air China plans to order 40 Airbus aircraft in the next five years to support its European expansion, President Li Jiaxiang revealed yesterday at the EU-China Business Summit in Beijing.
Ryanair lodged yet another case in the European Court of First Instance against the European Commission for failing to act on the LCC's complaint about illegal state aid to Volare, a subsidiary of Alitalia. Ryanair claims the aid consisted of the writeoff of around €20 million in debts owed by Volare to Italian airports and reductions in airport charges and fuel costs in favor of the airline. Ryanair said it initially called on the EC to investigate the allegations two years ago.
Goodrich signed a 12-year agreement with LAN Airlines to provide MRO and asset management solutions for its fleet of V2500-A5-powered A319s and A320s. Goodrich's Alabama Service Center will refurbish thrust reversers and provide as-needed services for inlets and fan cowls. Goodrich also will supply on-site spares.
Etihad Airways will launch four-times-weekly Abu Dhabi-Beijing flights on March 30 aboard a two-class, 262-seat A330-200. It is EY's first Chinese service and its eighth to the Asia/Pacific, where it already serves Brisbane, Sydney, Manila, Jakarta, Kuala Lumpur, Singapore and Bangkok. Flights to Beijing will depart Monday, Wednesday, Friday and Sunday. Aircraft also will have 11 tonnes of cargo capacity.
SITA Passenger and Travel Solutions and S7 Airlines launched online calendar booking this week via SITA Airfare Shop. S7 said it is the first Russian carrier to display all fares across multiple days and offer calendar-based booking for all domestic and international flights. It currently sells 6.3% of its tickets on its website and expects "further significant growth in 2008."
