SkyWest Inc. reported net income of $145.8 million for 2006, a 29.9% increase over the $112.3 million earned for 2005, as revenue soared 58.6% to $3.11 billion. Costs climbed 59.2% to $2.78 billion but operating profit still rose 53.9% to $339.2 million. Numbers would have been more impressive for the parent of SkyWest Airlines and Atlantic Southeast Airlines if not for a 19.2% drop in fourth-quarter earnings to $31.2 million, largely the result of December's weather-related shutdown of Denver International Airport.
Thai Prime Minister Surayud Chulamont ordered Bangkok's Don Muang International Airport reopened to both international and domestic flights in order to prevent overcrowding at the new Suvarnabhumi International.
Flybe said the UK Office of Fair Trading approved its acquisition of British Airways regional subsidiary BA Connect ( ATWOnline, Nov. 6, 2006). OFT asked Flybe to grant access to one of the 13 parking stands it currently uses at Southampton Airport.
A US Bankruptcy Court yesterday approved Delta Air Lines' disclosure statement, clearing the way for the document and DL's plan of reorganization to be sent to creditors for the approval that would allow the carrier to emerge from Chapter 11 protection as an independent company, possibly by late April.
EasyJet reported a 14.9% jump in fiscal first quarter revenue to £366.2 million ($719.3 million) compared to the £318.8 million earned in the three months ended Dec. 31, 2005. The LCC does not release full quarterly results. Passenger numbers were up 9.8% to 8.1 million and revenue per seat rose 4% to £36.79 as passenger revenue climbed 2% and ancillary revenue grew 22% over the year-ago quarter. The airline said it expects a "slight [year-over-year] increase" in passenger revenue in the current quarter.
Air France KLM flew 16.12 billion RPKs in January, up 2.3% from the year-ago month. Capacity rose 2.4% to 20. 4 billion ASKs and load factor was level at 79%.
European Travel Agents and Tour Operators Assns., which comprise associations from 29 countries, once again is calling for a system that will protect passengers from airline failure or default and suggested that it be funded through a €1 ($1.29) contribution per ticket paid by all carriers, including ones from outside the EU, flying to/from an EU airport. ECTAA's effort to establish the passenger protection fund is not new, but recent bankruptcies highlight the need, President Jan Van Steen said.
Ryanair announced yesterday that its 19th base will be at Airport Weeze about 50 mi. north of Dusseldorf. The LCC will invest €140 million ($181.2 million) in the facility, where it will base two new aircraft from June that will operate to 10 destinations. It is expecting to transport 1 million passengers in the first 12 months, rising to 2 million per year from 2008.
Air Berlin said the dba brand will disappear from the market by April 1 once the subsidiary is fully integrated. AB acquired dba last summer ( ATWOnline, Aug. 18, 2006). Dba's network, check-in facilities and administration already have been combined with AB's. The airlines flew a combined 1.2 million passengers in January, up 8.7% from the first month of 2006. Load factor rose 1.9 points to 64.9%.
Slovak Airlines said yesterday that it will enter bankruptcy following majority owner Austrian Airlines Group's decision to take possession of two of its three aircraft ( ATWOnline, Jan. 31). The remaining aircraft, a 737-200, reportedly is not available to fly. An AAG spokesperson told this website that Austrian is expecting a double-digit-million euro loss on its Slovak Airlines investment.
Boeing said yesterday that it is finalizing an order with Azerbaijan Airlines for three 787-8s and two 737-900ERs. AZAL, based in Baku and spun off from Aeroflot when the Soviet Union fell in 1991, operates to 15 destinations including London Gatwick, Paris Charles de Gaulle, Kabul, Dubai and Moscow Sheremeteyvo. Boeing Commercial Airplanes CEO Scott Carson reportedly was in Baku yesterday holding talks with Azerbaijani President Ilham Aliev regarding modernization of the state-owned airline's fleet.
Lockheed Martin will supply United Airlines with flight planning technologies through Flugwerkzuege Aviation Software. UA will use Flugwerkzuege's Flight-planning System and the OPUS Notices to Airmen system.
JetBlue Airways spokesperson confirmed to ATWOnline yesterday that the airline is committed to launching an online partnership with Aer Lingus under which the carriers will make their combined networks available to customers visiting their respective websites. The exact nature of the tie-up, which will be unique among low-fare airlines, has not been determined and eventually may include a booking facility or interline agreement. Aer Lingus, which will exit the oneworld alliance on April 1 ( ATWOnline, Feb.
International Aero Engines signed an engine upgrade agreement with JetBlue Airways under which the SelectOne build standard on the V2500 will be introduced on 58 firm A320 deliveries from 2009 plus 50 options. SelectOne, which will go into production in mid-2008, lowers fuel burn by up to 1%, reduces miscellaneous shop visits by up to 40% and increases time-on-wing up to 20%, IAE said.
JAL Group's comprehensive restructuring is starting to take effect with the company reducing its loss in its third fiscal quarter ended Dec. 31 to ¥13.0 billion ($107.1 million), narrowed from the ¥20.6 billion deficit in the year-ago quarter. In conjunction with that announcement, JAL released a Medium Term Revival Plan covering the next four years that will include an increased commitment to safety and elimination of 4,300 jobs.
Continental Airlines' consolidated RASM lifted 4.1% in December and an estimated 2%-3% in January, the airline said. It flew 7.02 billion consolidated RPMs last month, a 5.9% increase over the year-ago month. Capacity climbed 5.5% to 9.2 billion ASMs, boosting load factor 0.4 point to 76.3%. Domestic traffic grew 4.8% to 3.36 billion RPMs, capacity increased 5.1% to 4.3 billion ASMs and load factor fell 0.2 point to 78.1%.
Reiterating the fact that it considers 2006 an "interim year" in its development, Finnair yesterday reported a full-year net loss of €13 million ($16.8 million), a reversal from the €62 million profit earned in 2005, as one-time expenses related to its €80 million restructuring program, high fuel prices and its loss-making Aviation Services division weighed on the bottom line.
Avion Aircraft Trading, which is partly owned by Air Atlanta Icelandic parent HF Eimskip, signed an MOU with Airbus yesterday for six A330-200Fs with deliveries slated for 2010 and 2011. "Its payload range characteristics will open up new possibilities for our airline customers paired with very attractive operating costs," AAT CEO David Masson said. The -200F can carry up to 64 tonnes of cargo and has a range of 4,000 nm. in standard configuration.
Northwest Airlines Corp. reported a 2006 net loss of $2.8 billion owing to heavy reorganization costs, widened slightly from a $2.56 billion loss in 2005, as it continues to work through Chapter 11 restructuring.
President Bush's new $2.9 trillion budget "provides a framework for reforming the aviation system by tying what users pay to the costs of providing air traffic control and other services," the US Dept. of Transportation confirmed yesterday, pleasing airlines that have advocated a user-based funding mechanism ( ATWOnline, March 9, 2006). The US Airport and Airways Trust Fund is due for reauthorization in the current fiscal year ending Sept. 30.
United Airlines made a $972 million cash payment toward its $3 billion bankruptcy exit facility and refinanced the remainder, it announced yesterday. The new facility consists of a $1.8 billion term loan and a $255 million revolving credit line. Refinancing was "significantly oversubscribed," the airline said, enabling it to reduce finance costs by 175-200 basis points over LIBOR.
Delta Air Lines creditors' committee will pick all 10 board members of the reorganized carrier as part of the deal under which the committee approved DL's plan to emerge from bankruptcy at the expense of US Airways' bid ( ATWOnline, Feb. 1), CEO Gerald Grinstein told The New York Times. At least three members of the existing board will stay on. In addition, the committee will limit management's ownership stake to 4%, a total that Grinstein said would be "spread across. . .1,000 people."
Rockwell Collins was selected yesterday by Boeing to provide the avionics system for the 747-8 Intercontinental and -8 freighter. Value was not disclosed for the deal, which includes the entire suite of flightdeck displays as well as autopilot, communication, navigation, surveillance, maintenance, emergency and data management systems. The 747-8F is scheduled to enter service in late 2009 with initial deliveries to Cargolux and Nippon Cargo Airlines ( ATWOnline, Nov.
Ryanair outperformed market expectations as it reported a €47.7 million ($61.8 million) net profit for the third fiscal quarter ended Dec. 31, a 30% increase from the €36.8 million earned in the year-ago quarter "This exceptional 30% increase in Q3 profits during a period of higher oil prices, intense competition and 21% seat capacity growth demonstrates, yet again, the robustness of Ryanair's lowest-fare model," CEO Michael O'Leary said.
A furor is developing among a growing number of politicians from both sides of Australia's government over a A$300 million ($232.4 million) performance- and time-based sweetener that Qantas senior management would reap if Airline Partners Australia's A$11.1 billion bid for the airline succeeds.
