Delta Air Lines said yesterday that more than 95% of its creditors cast ballots in favor of its Plan of Reorganization. It is eyeing emergence from bankruptcy on April 30. The results are unofficial, with the final tally to be filed later this week with a US Bankruptcy Court. DL will ask the court to confirm and approve its reorganization plan at an April 25 hearing, which is widely expected given the overwhelming support from creditors.
Air China unveiled details of the new cargo airline it plans to operate in partnership with Cathay Pacific Airways ( ATWOnline, Jan. 11), to be based on the existing China Cargo Airlines that flies out of Beijing.
Etihad Airways revealed select details of what CEO James Hogan called a "remarkable" first quarter during which passengers nearly tripled year-over-year to 1.03 million and revenue soared to AED712 million ($193.9 million) from AED230.6 million in the year-ago period. Profit and loss figures were not supplied. Hogan cited "extraordinary" growth in both network and fleet over the past three years and "growing awareness of Etihad in key markets around the world" for the improvement.
Astronics of New York announced $17 million in orders and options for its Empower in-seat power supply system from three unidentified US carriers (worth a combined $6 million), one unidentified Asian airline ($9 million) and one Middle East airline ($2 million). All installations will be on Boeing aircraft.
SAS Scandinavian Airlines and Croatia Airlines entered into a codeshare partnership on SAS routes from Oslo Gardermoen, Stockholm Arlanda and Copenhagen to Frankfurt, Munich, Vienna, Amsterdam and Zurich and connecting flights on Croatia's services to Zagreb and Split. Croatia is a Star Alliance regional member. Lufthansa will launch twice-daily Munich-Linz flights in June aboard Augsburg Airways Dash 8s. It already added a third daily flight to its MUC-Grax service. LH's summer schedule features 259 weekly flights between Germany and Austria.
Grand China Air, the company established in 2004 combining HNA Group's Hainan Airlines, Xinhua Airlines, Changan Airlines and Shanxi Airlines ( ATWOnline, Oct. 18, 2005), received its operating license from CAAC, the Centre for Asia Pacific Aviation said. The way now is paved for Grand China to complete a listing in Hong Kong, possibly as early as the second half of this year. CAPA Executive Chairman Peter Harbison said the listing could raise up to $500 million.
Kuwait's Jazeera Airways said it posted an $8.7 million profit in 2006, its first full year of operations, after breaking "Middle East governments' 50-year monopoly of the aviation sector."
Lufthansa Technik said it will become the first international MRO provider to establish an Indian base when it opens a 20,000-sq.-m. facility outside Hyderabad at the end of next year.
Delta Air Lines pilots, represented by the Air Line Pilots Assn., opted to cash in most of their $2.1 billion unsecured claim against the carrier, with members accounting for 92% of the claim voting to take 60.05 cents on the dollar rather than stock in the reorganized airline. A total of $1.16 billion will be distributed to those pilots "shortly after" DL emerges from bankruptcy this quarter, MEC Chairman Lee Moak wrote in a letter last week.
JetBlue Airways will launch A320 service from Boston to San Diego (daily from June 28) and Aruba (Saturdays from June 30). It also named General Counsel Jim Hnat as executive VP-corporate affairs and corporate secretary.
ANA Group announced the sale of its 14 hotel subsidiary companies, including 13 hotels, to YK Shiroyama Properties, a fund managed by Morgan Stanley, for ¥281.3 billion ($2.36 billion). The company had revealed its intention last December to dispose of the hotels ( ATWOnline, Dec. 13, 2006).
Fraport and Turkey's IC Holding combined to pay €2.37 billion ($3.19 billion) for the concession to run all three passenger terminals at Antalya Airport until 2024. The pair will operate the domestic terminal and one of the Fraport-operated international terminals from mid-September, then take over the IC-operated international terminal in September 2009. AYT reported passenger throughput of 14.8 million in 2006.
Iberia has yet to open its books to Texas Pacific Group and wants more information on the US firm's partners in its €3.4 billion ($4.58 billion) bid for the airline, specifically if there are any Spanish companies or airlines involved, an IB spokesperson said last Thursday, according to Reuters ( ATWOnline, April 11). A non-EU interest currently cannot acquire more than 49% of an EU airline ( ATWOnline, April 2).
Hainan Airlines bounced back into the black last year, posting a CNY181.6 million ($23.5 million) profit that represented a reversal from a CNY215.7 million loss in 2006. Xinhua Financial Network reported that the carrier's "core business revenue" climbed 23.7% to CNY12.45 billion against a 26.2% increase in costs to CNY10.36 billion. Passenger numbers grew 12.4% to 14.4 million, but the airline said it is targeting 12.8 million passengers this year. No explanation for the decline was provided.
Los Angeles World Airports blasted United Airlines for its plan to levy a $10 surcharge on passengers flying from LAX ( ATWOnline, April 12), saying the increase "wildly exceeds" UA's share of a "justified increase in its maintenance and operation costs." LAWA said UA enplaned 4.9 million passengers at LAX last year. Assuming the same level of traffic in 2007, it would collect nearly five times the $10 million rent increase it blamed for the new policy.
The board of Midwest Air Group reviewed and unanimously rejected AirTran Holdings' third merger proposal last week, prompting the Atlanta-based carrier to label its target "irresponsible" and "delusional" in a Friday statement.
GE's first-quarter financial results revealed strong performances from the company's aviation units. GE Aviation enjoyed a 17% year-over-year rise in net earnings to $755 million on a 16% increase in revenue to $3.51 billion. It was the most profitable segment in GE's Infrastructure division. GE Aviation Financial Services' profit jumped 88% to $338 million on a 34% climb in revenue to $1.25 billion. The overall company's three-month profit grew 8% to $4.51 billion.
Air One suffered a 62.5% decline in full-year earnings to €6 million ($8.1 million), compared to a 2005 profit of €16 million that was boosted by €14 million in special gains, according to a statement cited by AFX News. The Italian carrier's operating profit soared 76% to approximately €26 million on a 24% rise in sales to €611.5 million.
Boeing enjoyed another bumper week for 787 orders last week with 30 more booked, taking the number sold this year to 96. Of those, 67 are for unidentified customers, including the 30 recorded last week. Firm orders now stand at 544, with a further 23 pending for a total of 567. ATWOnline understands that the 30 are for one customer, as are the 15 ordered mid-March ( ATWOnline, March 19). Companies linked to the latest order are American Airlines and leasing giants GECAS and ILFC.
Asiana Airlines launched thrice-weekly Busan-Ho Chi Minh City service. Austrian Airlines will operate four-times-weekly Vienna-Talinn flights from June 4.
US Transportation Secretary Mary Peters said last week during a Chinese tour that the US is seeking an "open skies" agreement with the world's most populous nation similar to the recently agreed US-EU accord and hopes to have "the basic framework" for a deal in place next month.
Hawaiian Airlines flew 679 million scheduled-service RPMs in March, a 22.1% increase from the year-ago month. Capacity climbed 17.2% to 745.4 million ASMs, lifting load factor 3.6 points to 91.1%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.53 billion RPMs in March, up 10.9% on the year-ago month. Capacity rose 13% to 1.91 billion ASMs and load factor fell 1.6 points to 79.8%.
Zoom Airlines of Ottawa will launch daily New York JFK-London Gatwick 767 flights on June 21 offering premium economy and economy service. It said it was granted permission to operate the route as a UK carrier. Five weekly flights will be nonstop and two will operate via Bermuda. Southwest Airlines will add an eighth daily Dallas Love Field-Albuquerque flight, a second daily ABQ-Seattle flight and a fifth daily DAL-New Orleans flight on June 4.
