Air Berlin suffered a deepened €41.3 million ($55.6 million) net loss in the first quarter compared to a €31.1 million deficit in the year-ago period as it worked on integrating dba into its operation.
GE Aviation Materials, a joint venture between GE Aviation and Snecma that provides used serviceable aircraft engine and related spare parts, will open distribution centers and sales offices in Singapore and Amsterdam, complementing its Dallas facility. The 30,000-sq.-ft. Singapore center is scheduled to open in July while the 50,000-sq.-ft. Amsterdam center will open in August
Kenya Airways reported a net profit of KES4.10 billion ($61 million) for its fiscal year ended March 31, down 15.1% from net income of KES4.83 billion in the prior year, blaming "increased competition, higher fuel prices and the adverse impact of a weaker US dollar" for the drop. Revenue lifted 11.3% to KES58.79 billion but expenses climbed 13.8% to KES51.15 billion, producing an operating profit of KES7.64 billion, a 2.8% decrease from KES7.86 billion last year. Fuel expenses rose 20.2% to KES15.89 billion.
TPG, the US private equity firm formerly known as Texas Pacific Group, dropped out of the bidding for Alitalia, Italian Prime Minister Romano Prodi confirmed yesterday, according to widespread press reports from Rome. TPG apparently will concentrate on its pursuit of Iberia ( ATWOnline, May 23), leaving consortia headed by Aeroflot and Air One to compete for the government's 49.9% stake in AZ ( ATWOnline, May 15).
Qantas CEO Geoff Dixon yesterday released a statement saying that the airline "believed" the level of foreign ownership did not exceed the 49% permitted under Australian law, but QF admitted that "reconciliation of its shareholding, despite extensive monitoring, [has been] extremely difficult" in the wake of Airline Partners Australia's failed takeover bid ( ATWOnline, May 18).
Avianca became an Airbus customer for the first time yesterday with an order for 33 A319s/A320s and five A330-200s collectively valued at nearly $3 billion, plus options for 27 A319s/A320s and five A330-200s. AV Chairman German Efromovich said the order signals a "new era" for the Colombian carrier, touting the "unbeatable economics" of the aircraft as well as fleet commonality. Delivery dates and engine choices were not released. Avianca and its SAM subsidiary currently operate five 757-200s, four 767-200s, one 767-300, 15 MD-83s and 10 F50s.
Star Alliance partners ANA and Asiana Airlines announced a cross-shareholding agreement that will strengthen their strategic partnership, which includes a codeshare deal announced in February covering 154 flights on 18 routes between Korea and Japan. The deal, first mooted in December, involves each carrier taking a $12 million stake in the other, an extension of the codeshare arrangement to cover ANA's Tokyo Narita-Honolulu service beginning July 1 and the creation of a major triangulation route among Seoul Gimpo, Tokyo Haneda and Shanghai Honqiao.
Hamilton Sundstrand announced the delivery of the first APS 5000 APU to Boeing for use on the 787's initial flight tests. The APU is rated at 1,100 shp.
Qatar Airways signed an MOU with Airbus for the purchase of 80 A350 XWBs valued at $16-$18 billion, providing a major boost to an aircraft program that has undergone a significant redesign. The manufacturer said Qatar Airways will launch the aircraft into commercial service in mid-2013. In 2005 the carrier committed to 60 of the original-design A350s. Yesterday's agreement supersedes and expands that accord.
Skybus Airlines, which launched its low-fare service from Columbus last week ( ATWOnline, May 23), is adding three new destinations on July 16: San Diego; St. Augustine, Fla., which the airline is marketing as Jacksonville/Daytona Beach; and Chicopee, Mass., which is near Springfield and a little more than 30 mi. from Hartford. American Airlines will launch thrice-daily New York LaGuardia-Minneapolis/St. Paul flights on Sept. 5 aboard two-class MD-80s.
Embraer relocated its office in China to a newly established Central Business District in downtown Beijing. Since entering the Chinese market in 2000, the company has received orders for 71 ERJ-145s, 50 E-190s and two executive jets.
Component Control said AeroTurbine, a subsidiary of AerCap, selected its Quantum Control ERP software to manage its aircraft and engine aftermarket parts sales, maintenance, repair and overhaul operations.
Virgin Blue is moving to set up a lower-fare offshoot to combat both Jetstar Airways and the entry of Singapore-based Tiger Airways into the Australian domestic market ( ATWOnline, May 4). Unlike most countries, Australia allows foreign-owned and foreign-based airlines to operate domestically if they pass a public interest test.
Singapore Airlines' and Temasek's acquisition of a 25%, $930 million equity stake in China Eastern Airlines is close to being finalized, with regulatory approval from Beijing expected within a week ( ATWOnline, May 24). Final structure of the deal still may be altered somewhat owing to regulatory concerns within the Chinese government, sources in Singapore said.
Malaysia Airlines' spectacular turnaround continued in the first quarter with a net profit of MYR133 million ($39.2 million) that represented a reversal from the year-ago period's MYR321 million loss and a significant premium over the MYR50-MRY99 million profit the carrier had forecast.
Midwest Airlines will reconfigure and add seats to its fleet of MD-80s and 717s in an $8 million project it estimates will generate up to $35 million in annual incremental revenue. Passengers will have the choice between Signature service featuring a 2-2 layout previously available only on the 717 and Saver, a 2-3 layout previously offered only on the MD-80. The MD-80s will have 12 Signature and 132 Saver seats while the 717s will move to a mix of 40 Signatures and 59 Savers.
S7 Airlines yesterday announced an order for 15 787s valued at $2.4 billion at list prices, plus 10 purchase rights. Delivery date and engine choice were not announced. The order occurs as the airline, the largest domestic carrier in Russia, works to distance itself from last summer's A310 runway overrun in Irkutsk that claimed 124 lives. It passed the IOSA audit in December and has committed to a fleet revamp that included the delivery of 14 Western aircraft last year as well as yesterday's order.
While US airlines enthusiastically applauded the newly signed air services agreement with China, their Asian counterparts admit they are at a competitive disadvantage compared to the relatively strong carriers across the Pacific.
Bombardier Aerospace's operating profit for its fiscal first quarter ended April 30 more than doubled to C$112 million ($103.7 million) from C$55 million in the year-ago period owing to robust aircraft sales. Aerospace's revenue lifted 15% to C$2.3 billion. It received 91 net orders for regional aircraft, nearly a fivefold increase over 19 ordered in the year-ago quarter, comprising 53 regional jets and 38 turboprops. Delta Air Lines' order for 30 CRJ900s led the way, with Horizon Air and Pinnacle Airlines each ordering 15 Q400s to lead turboprop sales.
Wizz Air and GECAS announced the sale and leaseback of four V-2500-powered A320s scheduled to be delivered to the LCC next year, doubling the number of aircraft covered by the arrangement between the companies. Aircraft will be leased on 11-year terms. Separately, Wizz announced that its advertised fares now will include all taxes, charges and handling fees.
Qantas unveiled an expansion of its international network that likely will include an order for 20 additional 787s, CEO Geoff Dixon said. New frequencies/routes announced this week are: A fifth weekly Sydney-Shanghai Pudong flight starting in August; a new twice-weekly Melbourne-PVG service aboard A330s, two additional Brisbane-Los Angeles flights on 747-400s (increasing the service to daily) and one additional Sydney-LAX flight, all in March 2008; a new 747-400 service to Santiago and an additional weekly SYD-Johannesburg flight beginning in November 2008.
LTU will establish a third long-haul base in addition to Dusseldorf and Munich at Berlin Tegel starting with the 2007-08 winter schedule. It will base one A330-200 at TXL and launch thrice-weekly flights to Bangkok and a weekly service to Melbourne, Fla. Charters to Punta Cana and Varadero will depart from TXL rather than Schoenefeld. LTU said it hopes to use TXL as a base for future services to the Far East.
