FedEx Express, the airline unit of the global delivery giant, reported operating income of $467 million for its fiscal first quarter ended Aug. 31, widened from operating income of $285 million in the year-ago quarter, as revenues jumped 10% to $5.64 billion. Express operating margin in the quarter was 8.3%, up from 5.6% in the year-ago period. "Operating income and margin during the quarter improved due to revenue growth, revenue management and effective cost cuts," the company said.
Qantas plans to offer 12 weekly Sydney-Seoul flights (operated on Tuesdays, Thursdays and Sundays) aboard 767-300s from Jan. 2 to Jan. 28. It will continue to place its code on Asiana Airlines' daily Seoul-Sydney service. Separately, QantasLink will introduce two 72-seat Q400s on its Sydney-Canberra route by Oct. 29 and has opened a crew base in Canberra for 17 pilots and 16 cabin crew. The Q400s will operate 144 Sydney-Canberra flights per week, boosting Qantas's overall weekly seats on the short route 11%.
US airlines' domestic yield growth slowed in August, according to data from the Air Transport Assn. The seven largest US passenger airlines excluding Southwest had an average yield of 12.61 cents per RPM last month, up 10.3% compared to August 2005. This represented the smallest year-over-year increase since March and a 1-point sequential decline from the 11.3% year-over-year improvement recorded in July. Slowing yield growth, however, is being more than offset by falling fuel prices.
Boeing revealed yesterday that it has sold 16 more 787s and 30 additional 737s to unidentified buyers in deals cumulatively valued at about $4 billion. Combined with a Boeing Business Jet order for a 737 announced yesterday, the manufacturer has booked 632 net orders in 2006, including 102 for 787s and 477 for 737s, according to its online order book.
Emirates SkyCargo and Austrian Airlines Cargo reached a blocked-space agreement on Emirates' weekly A310 freighter service between Vienna and Dubai. EK will switch to an A340-500 from a 777-200 on its daily cargo flight to Nagoya Centrair from Oct. 29.
Jouve Aviation Solutions said US Airways selected its AirGTI suite of products to manage and distribute technical information. US is in the process of merging its technical content, including operating procedure and airframe and engine manuals, with those of America West.
Scandinavian Airlines will launch four-times-weekly Stockholm Arlanda-Beijing service in April using A340-300s. It currently serves China from Copenhagen. SAS Group airlines flew 3.54 billion RPKs in August, up 3.6% from the year-ago month. Capacity increased 3.1% to 4.73 billion ASKs and load factor rose 0.4 point to 74.7%. Scandinavian Airlines flew 2.46 billion RPKs, down 0.6%, against a 0.5% drop in ASKs to 3.21 billion, leaving load factor steady at 76.5%.
Aviapartner completed development and implementation of an automated wireless baggage reconciliation system in Brussels that allows baggage loaders to scan luggage labels with wireless hand-held devices. Separately, it signed a deal to provide cargo handling and catering services for Hainan Airlines 767-300ER flights arriving at BRU.
Go!, Mesa Air Group's Hawaiian startup, reached a codeshare agreement with Mokulele Airlines. The carriers signed an MOU to begin new services operating under the go!Express brand. Mokulele, which recently was granted authority from the US Dept. of Transportation to operate scheduled services, will fly a fleet of Cessna Grand Caravans.
Aeroflot CEO Valery Okulov said this week that the carrier will buy long-haul aircraft from both Boeing and Airbus, with plans to purchase 22 from each. A major Aeroflot stakeholder earlier this week signed a preliminary agreement with Boeing for 22 787s ( ATWOnline, Sept. 20).
Confirming speculation by BAE Systems Chairman Mike Turner and others, Airbus parent EADS admitted yesterday that there will be "further delays" to the beleagured A380 program owing to "continuing" issues related to aircraft wiring ( ATWOnline, Sept. 20).
Northwest Airlines flight attendants, prevented from engaging in work actions by a US federal judge last week ( ATWOnline, Sept. 18), yesterday declared negotiations with management at an "impasse" and asked the National Mediation Board for a release from further mediated talks with the carrier, the first step toward gaining legal authority to strike under US laws governing airline labor relations.
Finnair will launch daily Helsinki-Nuremberg service in April with Embraer 170s. Separately, the carrier said it flew 1.57 billion RPKs in August, an increase of 13.8% over the year-ago month. Capacity was up 10.6% to 2.04 billion ASKs. Load factor rose 2.2 points to 76.6%.
Airports Council International Europe appointed Olivier Jankovec as director general with immediate effect. He succeeds Roy Griffins, who retired in August.
China Cargo Airlines, the China Eastern Airlines/China Ocean Shipping Group joint venture, signed a 10-year, $28 million OnPoint Solutions agreement with GE covering overhaul and maintenance services on CF6-80C2 engines that will power the carrier's two 747-400Fs.
Oasis Hong Kong Airlines, preparing for an Oct. 25 launch, said yesterday it has sold an average of 1,100 tickets per day since it started accepting reservations two weeks ago.
American Airlines yesterday signed a five-year service agreement with the US Postal Service to deliver mail that the airline said potentially is worth $500 million in revenue. It is the largest single contract ever awarded to American Cargo. AA said it re-engineered its mail processes in 2003 and now "is the preferred carrier of the Postal Service and carries more mail than any other passenger airline."
Q Investments, a Fort Worth-based private equity fund, is putting Q Aviation on the block and has retained Deutsche Bank Securities to advise it. The company said it owns 53 Airbus and Boeing aircraft recently appraised at $1.2 billion. According to the Ascend CASE database, 26 are listed under the Q Aviation LP name. They comprise eight A319s, 10 757s, four A320s, two A330s, one 737-400 and one 737-500, all of which are in service. The 737-500 is leased to Bulgarian Airlines and the remaining 25 are leased to Northwest Airlines and US Airways.
Officials from Dallas/Fort Worth International Airport said yesterday that American Airlines' proposed DFW-Beijing service would generate $180 million annually for the state economy and plans to submit its own economic impact study to the US Dept. of Transportation in support of AA's application to win the new route authority. The DFW salvo is the latest volley in an all-out campaign by four US carriers competing for a new route to China made available in the most recent air services agreement between China and the US.
Etihad Airways took delivery of an A340-500, its 20th aircraft. It will operate the plane on its new daily Abu Dhabi-New York JFK service from Oct. 26.
Denver-based Frontier Airlines, which earlier this month announced orders for 10 Q400s as part of a plan to launch its own Regional airline subsidiary ( ATWOnline, Sept. 7), is ending its codeshare agreement with Horizon Air, an Alaska Air Group subsidiary. Horizon has been operating nine CRJ700s as Frontier Jet Express since January 2004. Officials from both carriers are continuing negotiations on a timeline for winding down the partnership.
