US Airways lost its bid to merge with Delta Air Lines ( ATWOnline, Feb. 1), but US Chairman and CEO Doug Parker remains convinced that the "facts are irrefutable and compelling in favor of consolidation" among US carriers. Speaking to the International Society of Transport Aircraft Trading 24th annual conference in Phoenix Monday, Parker cited the experience of America West Airlines and the old US Airways as evidence of consolidation's benefits.
News from Travel Technology Update: British Airways signed a new three-year agreement with Galileo, the GDS unit of Travelport. It is the first GDS agreement announced by the carrier since its previous pacts expired at the end of February. The new deal, which goes into effect April 10, is basically a "continuation" of Galileo's travel agency opt-in program that was launched in 2004, according to the carrier. The program gives Galileo subscribers in the U.K. and Ireland access to all publicly available fares, provided they opt in to the program.
Cathay Pacific Airways increased freighter service to Europe to 36 weekly flights from 25. Flights to Frankfurt via Dubai operate 11-times-weekly, up from six. The remaining six additions will operate on the Hong Kong-Dubai-Manchester-Amsterdam-Dubai-Hong Kong route. Amsterdam is a new CX freighter destination. SAS Scandinavian Airlines will discontinue its Copenhagen-Shanghai Pudong service from April 8 and focus its Chinese service on Beijing, which it will serve with 10 flights per week by September.
Indonesia National Transportation Safety Bureau investigator Marjono Siswo Suwarno, who is leading the inquiry into last week's Garuda Indonesia 737-400 crash in Yogyakarta, said Friday that the initial evidence does not support the flight captain's contention that a sudden "downdraft" as the aircraft was attempting to land caused the accident ( ATWOnline, March 9). "There was no downdraft at the point of landing," Marjono told reporters.
Amadeus reported that total bookings grew 5.5% last year to 499.5 million while online bookings jumped 25.5% and represented 16.2% of total air bookings. The GDS claimed it had a 31% share of travel agency bookings in 2006, up 1.74 points over 2005. Total revenue grew 10.9% to €2.68 billion. It migrated four airlines to its Altea customer management solution, bringing to 29 the number of carriers using Altea.
CSA Czech Airlines released its full-year results Friday, confirming last week's report of a CZK397 million ($18.5 million) loss ( ATWOnline, March 9), narrowed from a CZK496 million deficit in 2005. Revenues rose 5.9% to CZK23.48 billion and expenses fell 1.5% to CZK23.59 billion. CSA said it achieved cost reductions by "centralizing its purchasing and by re-bidding tenders for outsourced services," such as switching insurance brokers and ground handlers at foreign airports.
Atlas Air and Polar Air Cargo parent Atlas Air Worldwide Holdings posted net income of $59.8 million for 2006, down 19.1% from $73.9 million earned in the prior year, on an 8.6% decrease in revenue to $1.48 billion. But the company reported a 66.2% fourth-quarter profit gain to $45.7 million and projects strong growth going forward, pointing to 12 747-8 freighters it has on order and a partnership deal with DHL that will see the express cargo giant take a stake in Polar ( ATWOnline, Oct. 17, 2006).
Difficulties at Airbus "dominated" EADS' full-year results, the European aerospace giant said Friday when it reported a 94% plunge in net earnings to €99 million ($130.3 million), compared to a €1.68 billion profit in 2005, owing to a €572 million operating loss at its commercial aircraft subsidiary.
SkyWest Airlines parent SkyWest Inc. announced a plan to repurchase 5 million shares of outstanding common stock, saying it is "a good use of financial resources and. . .will further the advancement of certain corporate objectives." The company reported a 29.9% rise in 2006 net income to $145.8 million ( ATWOnline, Feb. 8).
Gulf Air named former Galileo International executive John Matthews manager-global distribution system strategies and former Alitalia Commercial Web Development Manager Nicola Simionato e-commerce manager.
Continental Airlines flew 6.48 billion RPMs in February, up 7.6% from the year-ago month. Capacity rose 6.2% to 8.42 billion ASMs, lifting load factor 1 point to 77%. Domestic RPMs climbed 5.8% to 3.19 billion against a 6.2% lift in ASMs to 3.96 billion, dropping load factor 0.3 point to 80.7%. International RPMs grew 11.1% to 2.56 billion, ASMs were ahead 7% to 3.5 billion and load factor rose 2.7 points to 73.2%.
Record levels of passenger and cargo traffic are straining airport capacity, a problem that must be addressed in US FAA's reauthorization program, Airports Council International-North America President Gregory Principato testified before the US Senate Committee on Commerce, Science and Transportation last week. US airports need to be able to provide the appropriate facilities, including new runways, to accommodate demand, he said. FAA's current fee structure expires Sept. 30 ( ATWOnline, Feb. 15).
Citing strict cost control and increased revenues mainly from customers outside Lufthansa Group, Lufthansa Technik Group reported net income of €153.1 million ($167.6 million) in 2006, a healthy 17.7% increase compared to the €127.6 million earned in 2005. Revenues rose 9.4% to €3.4 billion, with revenues from group airlines ahead 5.1% to €1.4 billion, representing 40% of total sales. Revenues generated from external customers grew 12.5% and represented 60% of sales, up from 58.3% in 2005.
Boeing said yesterday it reached agreement with express cargo operator DHL on an order for six 767-300ER freighters valued at $894 million. It chose GE CF6-80C2B7Fs valued at more than $120 million to power the aircraft. DHL Express CEO John Mullen said the aircraft will be delivered beginning in 2009 and likely will be dedicated to US routes. A DHL spokesperson said it is undecided which of the company's affiliated contract carriers will operate the freighters.
Caribbean Star Airlines negotiated a merger agreement with LIAT, an Antigua-based carrier that has been in business for 50 years. The airlines announced their intentions in October ( ATWOnline, Oct. 12, 2006). Stanford Financial Group, which owns Caribbean Star, will lend $55 million to LIAT's shareholder governments (Antigua and Barbuda, Barbados and St. Vincent and the Grenadines) intended to liquidate the airline's liabilities and provide working capital.
The restructuring of its long-haul network, lack of fuel hedges and other "extraordinary effects" created an environment in which "it proved impossible to achieve a positive result," according to Austrian Airlines Group CEO Alfred Oetsch, whose company reported a widened net loss of €49.1 million ($64.5 million) for 2006 compared to a €29.6 million deficit in 2005.
CIT Aerospace placed a $200 million engine order for GEnx-1B64s to power three 787s and CF6-80E1s to power four A330s. The lessor will take delivery of the aircraft in 2008-13.
LAN Airlines' impending fleet upgrade, for which it approved a capital increase this week ( ATWOnline, March 8), reportedly will comprise four 777-200Fs, six 767-300s with an option to convert those to 787s, six A340-300s and 15 A320 family aircraft. The latter constitute option conversions. A formal announcement is expected shortly.
CAE announced the sale of its first three 787 full-flight simulators, two to Qantas and one to China Eastern Airlines subsidiary Shanghai Eastern Flight Training. It also sold a 737-800 FFS to KLM. The four orders are worth a combined C$67 million ($56.9 million), CAE said. The airlines will take delivery next year.
AirTran Holdings extended the deadline on its offer to Midwest Air Group shareholders in hopes the two sides will reach a deal. The $345 million stock and cash exchange offer was due to expire yesterday but was pushed back to April 11. Meanwhile, AirTran continues its campaign to win over Midwest shareholders and has nominated three candidates for Midwest's board, none of whom are connected to either airline but who have experience in "corporate business issues," Senior VP, General Counsel and Secretary Richard Magurno told ATWOnline.
Cathay Pacific Airways CEO Philip Chen will step down effective July 1 to lead Swire Pacific's China investment strategy as chairman of John Swire & Sons (China), Swire and CX announced yesterday. Chen will be replaced as CEO by COO Tony Tyler, who has been with the airline since 1978. Chen will remain on the board as nonexecutive deputy chairman. "The appointments open up new horizons for me to help drive the group forward in areas that hold the greatest potential," he said. Swire Pacific Executive Director and Swire Beverages MD John Slosar will succeed Tyler as COO.
DayJet yesterday announced the receipt of $50 million in capital resulting from the completion of its third round of private equity financing. The company said the money will allow it to launch its delayed on-demand VLJ service, to be based in Florida, in the second quarter ( ATWOnline, June 15, 2006).
