British Airways yesterday cut its forecasted growth in full-year revenue to 5%-6% from 6%-7% as a result of the increased security measures that followed the August terrorist threat.
SAS Scandinavian Airlines said yesterday it avoided a strike by Swedish cabin staff after reaching a deal with the local HTF union, which represents most of the airline's flight attendants. Meantime, Reuters reported that Danish cabin staff have threatened to strike and that negotiations on a new work agreement will continue into next week.
Continental Airlines estimated its consolidated September RASM increased 4%-5% over the year-ago month as it reported a 7.2% year-over-year rise in August unit revenues. It flew 6.9 billion consolidated RPMs in September, up 11.5%. Capacity grew 9.9% to 8.83 billion ASMs and load factor rose 1.2 points to 78.2%. Domestic RPMs climbed 10% to 3.3 billion against a 7.1% hike in ASMs to 4.06 billion, lifting load factor 2.1 points to 81.2%. International traffic was up 11.6% to 2.81 billion RPMs, capacity rose 11.2% to 3.72 billion ASMs and load factor increased 0.3 point to 75.7%.
Details of FL Group's plan to spin off Icelandair ( ATWOnline, Feb. 13) were revealed yesterday by Glitnir, an Icelandic bank that will underwrite an offering of 51% of the carrier. The sale is expected to net FL Group ISK26 billion ($364.1 million). Icelandair Group, which employs 2,700, will be listed on the Iceland Stock Exchange by the end of 2006, Glitnir said, with a public share offering to occur prior to the listing. It said the enterprise value of Icelandair Group is ISK43 billion.
PrivatAir of Switzerland will take delivery of a 767-300ER in December and reconfigure it as a 56-seat luxury charter aircraft. It will be placed into service in April, replacing a 28-seat BBJ.
Russia will increase air traffic control fees to foreign carriers next year, the head of the Federal Air Navigation Service told Russian media yesterday. "We would like to establish fair tariffs," Alexander Neradko said, adding that the body has yet to consult with IATA. "We are not expecting the prices for tickets to go up more than RUB60-70 ($2.20-$2.60)," he said, adding that domestic carriers face a 90% increase in charges effective Nov. 1 that also will not have a significant effect on ticket prices. He told reporters that a 747 currently is charged $87 per 100 km.
Spanair will increase its Barcelona service for the summer 2007 schedule to include twice-daily flights to Jerez, Almeria and Munich and daily services to Frankfurt and Algiers. Air Berlin will launch twice-weekly Berlin Tegel-St. Petersburg service from Dec. 18. Adria Airways increased its four-times-weekly Ljubljana-Warsaw service to five.
BAE Systems shareholders, as expected, voted in favor of management's plan to sell its 20% holding in Airbus to EADS for €2.75 billion ($3.52 billion), making EADS the sole stakeholder, while lawmakers and labor unions warned Airbus that they may challenge the "Power8" restructuring plans outlined Tuesday to deliver €2.1 billion in cost reductions and drive €5 billion in cumulative cash savings by 2010 ( ATWOnline, Oct. 4).
Bombardier reached a low point in asset management last January when it realized it had 107 parked 50-seat CRJs, VP-Asset Management Rod Sheridan said at the 13th annual Valuation Conference organized by Commercial Aviation Media in Washington this week.
Austrian Airlines Group plans to reduce its workforce by 350, including 80 pilots, and lease out two A340-300s and three F70s after several weeks of talks with the Betriebsrat union concerning the introduction of more flexible work rules did not produce a deal. "Now it is time to react," CEO Alfred Oetsch said at a news conference yesterday. "We plan to do this without layoffs, but I cannot rule that out." Savings as a result of the move should reach double-digit million euros.
Amsterdam Airport Schiphol confirmed it will not increase airline and passenger charges effective April 1 "in order to strengthen its competitive position in respect to the other European airports." However, it intends to introduce changes to takeoff and landing charges to further discourage the noisiest "marginally compliant aircraft" from using the airport. These will come into force on Nov. 1, 2007, at the earliest.
SES Americom, a satellite communications company, said it received a $70 million payment from Boeing relating to the cancellation of Connexion by Boeing inflight internet service ( ATWOnline, Aug. 18).
Alpha Airports Group, the UK-based retail and catering services provider, will form a JV with Pantaloon Retail, part of Future Group of India, to explore opportunities at Bangalore, Hyderabad and Delhi airports. Mumbai Chatrapati Shivaji is expected to issue its request for proposals shortly.
Airbus President and CEO Christian Streiff revealed yesterday in Paris that A380 launch customer Singapore Airlines will not receive its first by year end 2006, as had been stated last June ( ATWOnline, June 14).
Turkish Airlines 737-400 en route from Tirana to Istanbul Ataturk was hijacked yesterday by a lone Turkish national who forced the pilots to land in Brindisi, where he surrendered to authorities and released all 107 passengers and six crew unharmed. The aircraft was undamaged.
JetBlue Airways yesterday launched daily Washington Dulles-West Palm Beach service aboard an A320. Blue1 introduced twice-weekly Helsinki-Brussels service Monday aboard an MD90. Allegiant Air announced new MD-80 services from Orlando Sanford to Fayetteville (thrice-weekly from Nov. 7), Kinston (twice-weekly from Nov. 10), Shreveport (twice-weekly from Nov. 15), Chattanooga (four-times-weekly from Oct. 31), Huntington (twice-weekly from Nov. 3) and Greenville-Spartanburg (four-times-weekly from Nov. 14).
VEM, acquired from Varig by a TAP Portugal-led consortium last year ( ATWOnline, Jan. 16), changed its name to VEM Maintenance & Engineering. The change reflects the company's alignment with TAP Maintenance & Engineering.
Yes, indeed, Airbus and EADS have jointly completed the full review of the A380 programme. And, of course, we studied the Airbus' overall situation in depth.
Mesaba Airlines employees said they have a plan that will save the bankrupt carrier. The Mesaba Labor Coalition, representing pilots, flight attendants and mechanics, is proposing a concessions package it believes will cut labor costs by 15% over the next three years.
Skyway Airlines, the Midwest Airlines subsidiary, plans to upgrade to 328JETs from turboprops on three Midwest Connect routes out of Milwaukee in November. From Nov. 1, midday Milwaukee-Columbus service will be reinstated with a 382JET, making all flights on the route jet except for a Saturday morning flight that will be upgraded to the 32-seat RJ on Nov. 18. From Nov. 16 the carrier will upgrade to 328JETs on service from Milwaukee to both Dayton and Appleton.
EgyptAir yesterday exercised options for six additional 737-800s for delivery in 2009, bringing its total order for the type to 12 valued at $850 million. It took delivery of its first dash 800, part of the original order for six placed in August 2005, yesterday. That aircraft is the first 737NG dedicated to regular service equipped with Boeing's Class 3 Electronic Flight Bag. The airline's 737NGs also will be outfitted with Heads-Up Display systems. EgyptAir currently operates four 737-500s and five 777-200s.
Amadeus said that LAN Airlines announced the first phase of deployment of Altea Reservation Desktop for airlines, with full deployment planned for 1,500 LAN points-of-sale worldwide.
