Despite weather-related delays and cancellations and higher-than-expected fuel prices, American Airlines parent AMR Corp. posted net income of $317 million in the second quarter, up 8.9% over a $291 million profit in the year-ago period and its fifth consecutive quarter in the black following years of steep losses.
Clickair has been fined €60,000 ($82,676) by Dutch authorities for not respecting the night curfew at Amsterdam Schiphol. Despite several warnings, the Spanish LCC landed or took off four times within the restricted time period of 11 p.m.-7 a.m.
Hainan Airlines expects its profit for the first six months of 2006 to soar by an estimated 750% over the CNY20.8 million ($2.7 million) in net income it earned in the year-ago period, according to a preliminary announcement released yesterday by the Shanghai Stock Exchange. The carrier credited lower domestic oil prices and the appreciation of the yuan for the performance, but did not elaborate further.
Southwest Airlines is offering voluntary buyouts to approximately 9,000 employees, or 27% of its workers, according to press reports citing statements from the LCC. The buyout comprises a $25,000 payment, medical and dental benefits. Among those eligible are flight attendants, ramp workers, customer service employees and those in reservations, operations and freight who have reached a specific pay scale. SWA offered a similar buyout in 2004.
Air China and British Airways introduced interline e-ticketing this month. CA said it has similar agreements with 13 other carriers including United Airlines, Singapore Airlines, Northwest Airlines and Cathay Pacific Airways. It aims to have approximately 30 partners by year end including Japan Airlines, Continental Airlines and its future Star Alliance partners.
SriLankan Airlines Group, parent of the namesake airline and SriLankan Catering, posted a net profit of LKR862.2 million ($7.7 million) in the financial year ended March 31, marking its fifth consecutive profitable year but a 50% plunge from the prior 12-month period.
Sun Country Airlines yesterday launched a new loyalty program, Ufly Rewards, based on a points system awarding 10 points per return coach flight and a free trip with 100 points with "no blackout dates or restrictions."
Russia's S7 Airlines said it has been negotiating a potential oneworld membership with British Airways. "Members of oneworld alliance are interested in having a reliable partner in the Russian aviation market, which today is one of the most promising and rapid-growing markets," S7 said. "S7 can become such a partner, as it possesses a unique and the most developed route network in Russia." Aeroflot is a member of SkyTeam and AiRUnion, which said it intends to join an alliance by 2015 ( ATWOnline, Feb.
Australian domestic market is heading for intense price competition as Singapore-based Tiger Airways announced more domestic routes and fares for its Australian launch in late November ( ATWOnline, June 29). Tiger's latest route announcement is Melbourne-Launceston with fares starting at A$39.99 ($34.87). Its Australian operation will be based in Melbourne and destinations include Perth, Mackay, Rockhampton, Alice Springs and Darwin.
A TAM A320 skidded off a wet runway at Sao Paulo Congonhas last night, crashing into buildings and bursting into flame, and all 169 passengers and six crewmembers onboard were feared dead, according to Sao Paulo State Gov. Jose Serra. The accident reportedly occurred during a driving rainstorm as the aircraft attempted to land on a runway that has been criticized as being too short. The Sao Paulo fire department said there also were injuries and possibly fatalities among people on the ground.
Four US legacy carriers that announced Monday their intention to compete for the right to operate new routes to China ( ATWOnline, July 17) have been joined by American Airlines, United Airlines and a surprise entrant--all-business-class carrier MAXjet Airways. AA proposed to add a daily Chicago O'Hare-Beijing flight to its daily ORD-Shanghai service beginning March 25, 2009.
American Airlines will increase daily frequencies on AmericanConnection services from St. Louis to seven destinations from Sept. 5, when it also will end five-times-daily flights between STL and Dallas Love Field. It will continue to serve STL from Dallas/Fort Worth. New daily flights from STL will be to Cedar Rapids, Charlotte, Dayton, New Orleans, Newark, Springfield (Mo.) and Tulsa. Chautauqua Airlines and Trans States Airlines will operate some services. Lufthansa ended service to Ghana after 40 years. Last Accra-Frankfurt flight took off July 14.
Air Canada and Air Canada Jazz flew a combined 4.5 billion RPMs in June, up 2% on the year-ago month. Capacity climbed 1.8% to 5.43 billion ASMs and load factor rose 0.2 point to 82.8%. Singapore Airlines flew 7.51 billion RPKs in June, up 1.7% from the year-ago month, against a 1.4% decline in capacity to 9.11 billion ASKs. Load factor climbed 2.5 points to 82.4%.
Air One parent AP Holding late yesterday withdrew from the bidding for Alitalia, leaving the Italian government scrambling ahead of the July 23 deadline for final offers. According to an AP Holding release cited by widespread press reports in Italy, the company said it determined that turning around the flag carrier would "require different acquisition conditions that would make possible Alitalia's sustainable and competitive growth." It did not elaborate, and the government did not release a statement last night.
Continental Airlines, Delta Air Lines, Northwest Airlines and US Airways yesterday launched formal bids to operate new services to China that will become available as the result of the expanded aviation agreement with the US signed last week. The US Dept. of Transportation will award six new routes between 2007 and 2009 ( ATWOnline, May 24) and each of the aforementioned carriers filed official applications yesterday.
Magellan Group and Mercury Aviation Partners signed an MOU to create M&M Services, a 50/50 joint venture LLC that will build an operating lease portfolio of "mature aircraft subject to lease with part-out being the long-term goal for each aircraft." M&M said it plans to acquire up to $100 million worth of aircraft such as 737 Classics, 757s, 767s, A320s, ATR 42/72s, Dash 8s and Brasilias.
Chinese carriers posted a collective profit of CNY900 million ($118.7 million) in the first four months of 2007, reversed from a net loss of CNY4 billion in the year-ago period, according to CAAC statistics. CAAC cited an "effective cost-saving" policy as the main reason for the improved performance.
United Airlines yesterday said it will accept applications for approximately 100 new pilot positions expected to be filled this year--the first such additions since 2001. "We're investing in our business, and our expansion in international markets enables us to add to our team," VP-Flight Operations Hank Krakowski said. New hires will begin training at UA's Denver training center as early as October and are scheduled to be flying by year end, the airline said.
Virgin Blue announced the A$61 million ($53.1 million) purchase of a "campus-style" development in Brisbane to serve as its new national headquarters. The development is scheduled to be completed next March.
News from Travel Technology Update: Seven European rail companies and their high-speed subsidiaries plan to link their reservations system and create a new "seamless" network that will compete with air and road travel over international borders.
Astar Air Cargo Chairman. President and CEO John Dasburg yesterday said that ABX Air has not yet responded to Astar's "indication of interest" in acquiring its fellow DHL subservice carrier for $450 million in cash and set a deadline of the close of business July 18 for a response.
Etihad Airways and Abu Dhabi Commercial Bank signed a $180 million sale and leaseback facility that will finance the acquisition of two A330-200s, the Arab Air Carriers Organization reported. The facility is structured as a lease with repayment spread over 12 years and a terminal balloon payment of 30% upon final maturity. Ethiopian Airlines leased two 235-seat 767-300ERs from Deutsche Structured Finance. Lease agreement is for six years effective May 31. The aircraft joined the fleet on June 1 and July 7.
