Bmi mainline and regional pilots represented by the British Airline Pilots' Assn. began voting yesterday on whether to authorize a strike action. Balloting at bmibaby started last week. The result of the former will be released on Aug. 24 and that of the latter on Aug. 16. The union said there are different issues facing pilots at each of the divisions but that they are united against the "imposition" of a 2.4% pay increase.
IATA said yesterday that global e-ticketing penetration in airline billing and settlement plans reached 54% as of June 30. The organization noted that 156 airlines, responsible for 87% of BSP ticket volumes globally, now issue e-tickets. Europe and the Americas lead the way, with 67% and 68% penetration by those regions' airlines respectively in June. Currently, 23 airlines issue 95% or more of their tickets electronically. IATA has set Dec. 31, 2007, as its goal for 100% e-ticketing worldwide.
Midwest Connect signed letters of intent to acquire two 328JETs formerly operated by defunct Atlantic Coast Airlines. The acquisitions will increase the fleet to a dozen aircraft. The Regional is a wholly owned subsidiary of Midwest Airlines. Terms were not disclosed.
AirAsia's shares have been sold down by 21% in the past month following the Malaysian government's decision to give Malaysia Airlines the green light to exercise pricing freedom on its domestic routes ( ATWOnline, July 12), allowing it to compete with AirAsia with cheaper fares.
American Airlines flew 13.3 billion system RPMs in July, a 2.3% decline from the year-ago month. Capacity fell 4.5% to 15.28 billion ASMs and load factor rose 1.9 points to 87%. Domestic RPMs dropped 4.9% to 8.5 billion against a 7.6% fall in ASMs to 9.63 billion, raising load factor 2.4 points to 88.2%. International traffic grew 2.7% to 4.81 billion RPMs, capacity increased 1.3% to 5.66 billion ASMs and load factor was up 1.2 points to 85%. Ryanair transported 3.9 million passengers in July, a 23.2% increase over the year-ago month. Load factor remained at 90%.
Lufthansa said yesterday that it has no plans to exercise its right to buy back shares as foreign control of the German flag carrier exceeded 40% for the first time. Under European law, a company would forfeit its operating license and rights to fly to destinations outside Europe if foreign shareholders hold the majority of its capital, Lufthansa said.
Cathay Pacific Airways will launch a fourth weekly Hong Kong-Dallas/Fort Worth-Atlanta 747-400F flight from Aug. 7. EasyJet will start double-daily Basel-Munich flights Oct. 30 and will compete against Lufthansa for the first time. It also will begin daily Bristol-Paris Charles de Gaulle service the same day and Geneva-Hamburg service by Dec 1. This week it launched thrice-weekly London Luton-Istanbul Sabhia Gokcen flights that will increase to daily on Sept. 4.
Boeing and SIA Engineering Co. said this week they have reached an agreement under which the MRO operator will participate in the manufacturer's Integrated Materials Management program. Using IMM, Boeing and other suppliers will own aircraft parts that will be stored at SIAEC's main maintenance base until needed. SIAEC will pay for the parts as it uses them, reducing inventory holding costs.
Swissport International acquired Japanese ground handling company ShinMaywa Ground Services from ShinMaywa Industries for an undisclosed price. SGS provides handling and line maintenance at Osaka Kansai, Tokyo Narita, Fukuoka and Nagoya, employing approximately 170 and generating some CHF11 million ($9 million) in annual operating revenue.
HNA Group, parent of Hainan Airlines, is negotiating to buy a stake in Hong Kong Express Airways, according to press reports. HKE, formerly Helicopters Hong Kong, was launched in 1997 and provided regular helicopter services between Hong Kong, Macao and the Pearl River Delta region. Last year it re-launched as Hong Kong Express with four Embraer 170s operating to five Chinese mainland cities. The move by HNA follows its ongoing negotiations to acquire up to 60% of Hong Kong's CR Airways.
Continental Airlines yesterday converted 12 existing firm orders for 737NGs to 737-900ERs, becoming the first US carrier to order the type. The aircraft are slated for delivery in 2008. "These new planes will have among the lowest operating costs in our fleet, allowing us to serve high-demand markets more efficiently," Chairman and CEO Larry Kellner said.
SkyWest Inc. reported second-quarter net income of $39.3 million, up 58.5% compared to $24.8 million in the same period a year ago. Operating revenues increased a whopping 105.8% to $790.4 million and operating income doubled to $89.6 million from $44.5 million during the second quarter of 2005.
Revenues, traffic, yields and load factor all rose at Iberia in the second quarter but not as fast as costs, which outstripped the carrier's operational progress and reduced its three-month profit to €35.7 million ($45.6 million), down 21.2% from earnings of €45.3 million in the year-ago quarter.
Continental Airlines said its June consolidated RASM increased 11% year-over-year and that it estimated the July figure to rise 9%-10% over the year-ago month. CO flew 8.74 billion RPMs in July, up 10.8%. Capacity increased 8.9% to 10.24 billion ASMs and load factor rose 1.5 points to 85.4%, matching its July record. Domestic RPMs were up 6.9% to 4.06 billion against a 5.9% gain in ASMs to 4.65 billion, lifting load factor 0.8 point to 87.3%.
SilkAir, Singapore Airlines' regional subsidiary, turned its back on regional jet offerings and issued an RFP for up to 20 737s/A320s. Sources at the airline tell ATWOnline the aircraft are for delivery from 2009. SilkAir once operated 737s but has replaced them with a fleet of 12 A320s/A319s, with three more deliveries scheduled through 2008.
American Airlines will launch daily Chicago O'Hare-Shannon service from Oct. 28 aboard a 767-300, replacing its 757 flight from Boston. The new flight will be an extension to AA's existing ORD-Dublin service. JetBlue Airways will launch daily Washington Dulles-West Palm Beach flights Oct. 3 aboard an A320. China Southern Airlines will operate daily Guangzhou-Lhasa service via Shangri-La through the summer schedule with 757s and A319s. It also began a thrice-weekly Guangzhou-Manila service.
World Air Holdings, parent of World Airways and North American Airlines, reported first-quarter net income of $3.5 million, a drop from net income of $9.9 million in the first quarter of 2005. The company, which finally reported its full-year 2005 earnings last month ( ATWOnline, July 11), continues to play catch-up with its financial reporting. Delays in filing required financial reports led to its de-listing by Nasdaq.
FMC Technologies said its Airport Equipment and Services operation in Orlando was selected by FedEx Express to develop and manufacture a new A380F main/upper deck cargo loader.
WestJet reported second-quarter net income of C$22.4 million ($19.8 million), widened from net income of C$2.3 million in the year-ago quarter, on a 30.3% rise in revenues to C$425 million.
Republic Airways Holdings, parent of Republic Airlines, Chautauqua Airlines and Shuttle America, enjoyed a 51.2% surge in net income during the second quarter to $20.3 million compared to a profit of $13.4 million in the year-ago quarter. The company said significant capacity increases helped drive a 33.3% gain in revenue to $284.3 million. Expenses rose 30% to $231.8 million and operating profit jumped 50.3% to $52.6 million. Since June 30, 2005, Republic has placed 48 Embraer 170s into service and removed seven ERJ-145s and 10 Saab turboprops.
ANA and JP Express, a joint venture between ANA and Japan Post, launched operations yesterday with a Tokyo-Shanghai service via Osaka. AJV has one 767-300F but will build that fleet over the next year, launching flights to the US this fall. The initial weekly schedule calls for 14 flights on 11 routes to seven overseas destinations from three Japanese cities.
ExpressJet Airlines reported second-quarter income of $23.3 million, a 4% drop from the year-ago period. Revenue increased nearly 8% to $419.4 million, expenses were up 10.2% to $383.8 million and operating income was $35.6 million, an 11.5% decrease. CEO Jim Ream attributed the decline to expenses related to the redeployment of 69 Embraer RJs dropped by Continental Airlines ( ATWOnline, May 8) and "challenging weather" in the Northeast.
VarigLog parent Volo do Brasil's acquisition of the troubled carrier hit another snag late Monday when a Brazilian court ruled that a $75 million cash payment originally intended to pay debts and keep Varig running during the transition instead must be used to pay employees, the Associated Press reported. In addition, TAM notified Brazilian authorities it would no longer honor Varig tickets on international flights. Varig reportedly owes TAM $1.5 million.
ICAO Council President Assad Kotaite retired Monday and was replaced by Roberto Kobeh Gonzalez of Mexico, who will finish the final year of Kotaite's three-year term ( ATWOnline, March 6). ICAO Secretary General Taieb Cherif also started his second three-year term.
