Flybe signed a deal with Bombardier for 15 Q400s valued at $394 million, with options for a further 15. The UK regional, which recently acquired BA Connect from British Airways ( ATWOnline, March 6), is the world's largest Q400 operator. The latest order will increase its Q400 fleet to 60. It also operates E-195s.
China's new privately run LCCs are looking to strategic investors as a method of raising capital, as it is becoming increasingly difficult to access traditional sources of bank lending owing to the airlines' less-than-stellar financial performance. Juneyao Group announced that its Juneyao Airlines subsidiary is seeking a strategic investor to aid in the carrier's long-term development. The announcement was made after Juneyao said the airline was profitable in April and expects to post a full-year profit as well. Actual results were not disclosed.
Austrian Airlines will become the first European operator of 767-300ER blended winglets after announcing an order for six retrofits yesterday, Aviation Partners Boeing said. CEO Alfred Oetsch said the carrier will save 1,000 tons of fuel per year per aircraft while extending range by approximately 670 km. after installation, which will begin in spring 2009.
Northwest Airlines labor unions registered strong protest to the carrier's plan of reorganization after it was revealed that top executives will receive 5% of the carrier's new stock when it emerges from bankruptcy, including shares and options reportedly valued at $26.5 million earmarked for President and CEO Doug Steenland. Pilots, represented by the Air Line Pilots Assn., said in a US Bankruptcy Court filing that employees believe "the principle of shared sacrifice is dead and buried" and that top executives are making an "incredible grab" for valuable stock despite the fact that
American Airlines is reserved on the effect open skies will have on its US-EU traffic. "There has been a lot of excitement over it over the past weeks, but it is too early to tell what will happen," MD-Sales and Marketing-Europe, Middle East and Africa Maria Sebastian told ATWOnline while in Brussels to present the carrier's upgraded 767-300 business class. "I suspect it will lead to a more competitive environment, certainly at London Heathrow.
Calling it a "tipping point for performance-based navigation," US FAA Administrator Marion Blakey said at a briefing at Washington National Airport yesterday that Southwest Airlines informed the agency that it will equip its entire fleet for RNP, including retrofitting its 737 Classics. The airline confirmed the plan, which Air Transport Assn. President and CEO James May said was an indication that "the entire industry is migrating as rapidly as possible to NextGen."
Qantas shares dipped 2.97% to A$5.22 ($4.30) yesterday, one day after trading was suspended in the wake of the chaotic collapse of Airline Partners Australia's A$5.45-per-share bid for the airline. The decline was not the magnitude predicted by APA, although the consortium's indication that it may return with another offer likely helped support the share price ( ATWOnline, May 8).
Air One yesterday said it has converted options and purchase rights for 50 A320s into firm orders, boosting its commitment to the type to 90 ( ATWOnline, Feb. 12).
Kenya Airways said yesterday that the flight data recorder from the 737-800 that crashed after takeoff from Douala on Saturday, killing all 114 on board ( ATWOnline, May 8), was recovered "and appears to be in good condition," adding that "the recovery is still going on under very difficult circumstances" and that the airline is flying victims' relatives to Cameroon while working to "put measures in place to minimize disruptions on our flight schedules."
Pinnacle Airlines reported net income for the first quarter of $9.3 million, a 29.5% drop from the year-ago period, on operating revenue of $179.6 million, down 13% from the first three months of 2006. Expenses dipped 10% to $166.7 million while operating income fell 40% to $12.8 million. Pinnacle officials attributed the differences primarily to changes in the carrier's service agreement with partner Northwest Airlines ( ATWOnline, Dec. 25, 2006). The first quarter was eventful for the Memphis-based regional.
AerCap Holdings named Willis Lease Finance Senior VP-Worldwide Sales & Marketing Thomas MacAleavey to the new position of chief executive-engine leasing effective June 1.
AirTran Airways yesterday launched service at St. Louis, from which it will operate four daily flights to Atlanta. Twice-daily flights to Orlando International begin June 7. Korean Air and Delta Air Lines will increase the number of codeshare flights between Atlanta and Seoul to 11 each week from seven, using DL aircraft for the first time beginning June 4.
EasyJet said unit revenues fell in April and it sees "pressure on yields in the summer against high comparatives from last year and due to continued competition." It maintained its projection of 40%-50% in pre-tax profit for the fiscal year ending Sept. 30. The LCC transported 3.1 million passengers in April, up 10% from the year-ago month. Load factor dropped 3.3 points to 83.1%. US Airways said consolidated passenger RASM fell in April.
The Boyd Group issued a report predicting that "dozens of smaller communities" could face a reduction in or even loss of commercial air service because of evolving airline economics. By May 4, some 75 applications had been filed under the US Dept. of Transportation's Small Community Air Service Development Grant Program, but only about 40 of those have "potential for success," according to the report.
The wreckage of a Kenya Airways 737-800 that was missing for 36 hr. was found in a mangrove swamp approximately 20 km. southeast of Douala in Cameroon, the airline confirmed, and reports suggested that none of the 105 passengers and nine crew survived the accident.
Atlas Air and Polar Air Cargo parent Atlas Air Worldwide Holdings reported first-quarter net income of $6.2 million, reversed from a net loss of $3.7 million in the year-ago quarter, on a 6.1% rise in revenue to $353.6 million, the highest total it has ever generated in a first quarter.
Aviation Partners Australia declared its bid for Qantas dead late yesterday but at the same time said it was leaving the door open for another attempt in four months.
Gulf Air will be fully owned by the government of Bahrain following the withdrawal of Oman, which signed a letter of intent to withdraw from the money-losing carrier, the Arab Air Carriers Organization announced. Oman follows the emirate of Abu Dhabi and Qatar ( ATWOnline, Sept. 14, 2005). AACO said Bahrain and Oman "have agreed to form a joint committee to assess the airline's assets and to appoint auditors and technicians for this purpose, a process expected to be finalized within six months."
JetBlue Airways flew 2.27 billion RPMs in April, up 11.6% from the year-ago month, against a 12.8% rise in capacity to 2.67 billion ASMs that lowered load factor 0.9 point to 84.7%. Gol flew 1.67 billion RPKs in April, up 49.1% from the year-ago month. Capacity climbed 63.5% to 2.35 billion ASKs and load factor fell 6.8 points to 70.8%.
CFM International said Southwest Airlines placed an order for up to 92 additional CFM56-3 Advanced Upgrade kits worth approximately $145 million at list prices. SWA's total order now stands at 447. The newly ordered kits will be delivered by early 2009, CFM said.
Austrian Airlines narrowed its adjusted pre-tax first-quarter loss to €36.5 million from €67.7 million in the year-ago period, an improvement the carrier said resulted from the benefits associated with last year's capital increase ( ATWOnline, Nov. 29, 2006), rising traffic and its effort to revamp its long-haul operation ( ATWOnline, Dec. 12, 2006).
Emirates followed through on its interest in increasing its A380 order ( ATWOnline, April 27), signing a contract for an additional four, Airbus said yesterday. It now has committed to 47 of the jumbo aircraft and is due to receive its first in the third quarter of 2008.
News from Travel Technology Update: The European Commission opened a "detailed investigation" under the EU Merger Regulation into Travelport's proposed acquisition of Worldspan, citing concerns over the competitiveness of the deal. The Commission has 90 working days from the investigation's launch to reach a final decision on whether the concentration would significantly impede effective competition within the European Economic Area, which comprises the European Union plus Norway and Iceland, or a significant part of it. The deadline is Sept. 13.
Saudi Arabian Airlines is looking to buy up to 60 new aircraft, the Arab Air Carriers Organization confirmed yesterday ( ATWOnline, Jan. 8), and intends to establish a low-cost subsidiary. SAA also announced a service expansion including an increase in flights to Dubai to 44 weekly from 30 and added frequencies to London Heathrow, Paris Charles de Gaulle, Madrid, Frankfurt, New York JFK and Washington Dulles and new seasonal services to Vienna, Athens and Munich.
