Norwegian reported a reversal of financial fortune yesterday as the LCC posted an annual profit of NOK26.8 million ($4 million) compared to a NOK109.8 million loss in 2004. Fourth-quarter earnings of NOK2.3 million reversed a NOK31.2 million deficit in the year-ago quarter. It marked the carrier's first yearly profit since launching its low-cost operation in 2002. Operating revenues in 2005 rose 63% to NOK1.97 billion while expenses increased 44.1% to NOK1.79 billion, driving operating result from a NOK32.7 million loss in 2004 to a NOK181 million profit.
SAS Group returned to profit in 2005 after four years of red ink, reporting net income of SEK255 million ($32.9 million) compared to a SEK1.77 billion loss in 2004. The group was profitable on an operating basis for the first time since 2002. CEO Jorgen Lindegaard attributed the positive results to "the biggest change in the group's history, Turnaround 2005," which has led to savings of SEK14 billion since 2002.
Iberia ratified the labor deal reached last week with unions representing some 18,500 ground staff ( ATWOnline, Feb. 3). The contract runs through Dec. 31. Air New Zealand said it will decide Feb. 13 whether to outsource its aircraft cleaning in Auckland, Wellington and Christchurch. The proposal would save "at least" NZ$1.5 million ($1 million) annually and affect 122 jobs.
Thales signed a deal with LAN Airlines for retrofit and line-fit installations of its TopSeries i-4000 video and audio on-demand system for 18 767s and four A340s, with options for three additional 767s. Delivery will begin next month.
Air Canada will install the Boeing Class 3 Electronic Flight Bag on the 777s and 787s it ordered last year ( ATWOnline, Nov. 10, 2005), becoming the first North American carrier to operate a Class 3 EFB. AC will take delivery of the first of 18 777s in 2007 and the first of 14 Dreamliners the following year. Boeing is making the EFB standard on the 787.
MAIR Holdings, parent of Mesaba and Big Sky Airlines, reported a net loss of $4.5 million for the third quarter ended Dec. 31 compared to net earnings of $1.5 million for the same period a year earlier. Mesaba, which operates as a Northwest Airlink partner, declared bankruptcy in October. Total operating revenues for the third quarter were $21.2 million and operating expenses were $28.3 million.
Aer Lingus signed a letter of intent to purchase two A330s for delivery in mid-2007. They will be powered by GE CF6-80E1s. Aer Lingus already operates seven A330s, four of which are leased. It continues to evaluate "new-generation long-haul fleet opportunities," according to CEO Dermot Mannion.
SkyWest Airlines reported a 2005 net income of $112.3 million, a 37% increase over 2004, owing to a 70% jump in operating revenue to $2 billion that was attributable in large part to the $426 million acquisition of Atlantic Southeast Airlines from Delta Air Lines last fall ( ATWOnline, Sept. 9, 2005). Operating income rose from $144.7 million in 2004 to $220.4 million in 2005. SkyWest operates as a Regional partner of Delta and United Airlines. For the fourth quarter ended Dec.
IATA helped resolve an escalating aeropolitical row at London Heathrow over allocation of scarce fuel supplies following the Dec. 11 fire at the Buncefield fuel depot.
United Airlines is adding ramp and customer service employees at its Chicago O'Hare hub as well as better IT tools to improve operational performance at the airport, according to Senior VP-Airport Operations Larry DeShon, who spoke to employees in a weekly taped message. United has allocated close to $1 million for radios, scanners, new computers for the Station Operations Control center and other tools. It also is expanding training on the ramp so more guidance people are available to receive and dispatch aircraft.
Delta Air Lines is seeking approval to become the only US airline operating scheduled service to Africa with the prospective launch of a daily Atlanta-Johannesburg service via Dakar beginning in December aboard two-class 777s. Delta said it received US approval to operate Atlanta-Quito-Guayaquil service from June 8 aboard 757-200s. It is awaiting Ecuadorian approval. Cathay Pacific said its thrice-weekly service to Manchester via Moscow has been postponed from a scheduled startup of March 27 owing to a delay in securing regulatory approval for the Manchester segment.
US Transportation Security Administration Assistant Secretary Kip Hawley told a Senate committee yesterday that the Secure Flight program, the successor to the ill-fated CAPS II initiative, "continues to be a source of frustration" and will be delayed as IT systems "go through a comprehensive recertification process." Hawley added: "We will move forward with the Secure Flight program as expeditiously as possible, but in view of our need to establish trust with all our stakeholders on the security and privacy of our systems and data, my priority is to ensure that we do it right. .
Avion Group, parent of wet-lease specialist Air Atlanta Icelandic, announced yesterday that it has acquired the entire issued share capital of French charter carrier Star Airlines. Purchase price was not disclosed, but the Icelandic transportation solutions group said it is financing the acquisition through equity and debt. Star was owned by Franco-Egyptian businessman Raymond Lakah.
Calgary-based WestJet returned to the black for the fourth quarter and full year 2005, earning C$1 million ($0.87 million) and C$24 million respectively against losses of C$46.3 million and C$17.2 million in the comparable 2004 periods. "WestJet achieved a significant turnaround during the last quarter. . .even though net income remained disappointing," President and CEO Clive Beddoe said during a webcast. "We remained profitable during a period when jet fuel prices escalated to unprecedented levels following one of the most violent hurricane seasons in history."
Ryanair will operate thrice-weekly Bournemouth-Pisa service beginning June 8. Etihad Airways will launch service to Islamabad, Peshawar and Manila on Feb. 13 and to Lahore on Feb. 20.
Jet Airways is expected to issue a secondary stock offering in both the Indian and international markets to fund its $500 million acquisition of Sahara Airlines ( ATWOnline, Jan. 20) and aircraft purchases. Jet advised Indian authorities it will hold an extraordinary general meeting Feb. 28 to address the issue.
Luxair SA said its scheduled airline is in a "fragile situation" and is expected to lose approximately €12 million ($14.4 million) in 2005. The company began reducing the carrier's schedule in October and has pared the number of annual flights by 1.7%. During the year the number of scheduled passengers dropped 1.6% to 808,863 and load factor climbed 0.7 point to 51.5%. Its Luxair Tour Operating and Cargo Handling subsidiaries are expected to turn a profit for 2005.
Grupo Ferrovial, a Spanish construction and services conglomerate whose portfolio of companies includes Swissport, said yesterday it is considering acquiring BAA, the world's largest operator of airports including London Heathrow, Gatwick and Stansted.
Japan Airlines and oneworld exchanged an MOU as a first step in the airline's effort to join the global alliance. The MOU was signed in Vancouver a little more than three months after JAL indicated its intention to join ( ATWOnline, Oct. 26, 2005) and "sets out a framework" for the remainder of the process. It is expected that JAL, sponsored by American Airlines, will be a full member within a year, expanding oneworld's network by 68 destinations or approximately 10%.
Icelandair selected the Rolls-Royce Trent 1000 to power its 787s. It placed an order for two firm aircraft and five options in February 2005 for delivery in 2010. The engine order is worth up to $650 million at list prices and includes a lifetime maintenance agreement. The Trent 1000 will run for the first time this month and is scheduled for its first flight on the Rolls-Royce flying testbed in the first quarter of next year.
Lufthansa denied rumors that it has plans to take over troubled German leisure airline LTU and transform it into a long-haul, low-cost carrier based in Dusseldorf. "That really does not fit into our concept. Lufthansa has enough capacity available, also on long-haul routes," a spokesperson told this website. LTU, which has struggled financially over the past few years, is 40% owned by Rewe, which said the airline is no longer part of its core business. It operates nine A320s, four A321s and 11 A330-200s/-300s and flies to 81 destinations.
Airbus received orders for 19 aircraft in January comprising one A319, nine A320s, five A321s, two A350-800s and two A350-900s. The orders for the A320s and A321s were placed by the same unidentified customer. ILFC ordered the A350s and the A319 order came from a private customer. Figures were down 50% on the year-ago month, when it booked orders for 38 jets--18 A320 family aircraft, four A330-200s, six A330-300s and 10 A340-600s.
British Airways reported a 3.3% January system traffic increase to 9.12 billion RPKs, a 3% capacity increase to 12.57 billion ASKs and a 0.2-point rise in passenger load factor to 72.5%. Delta Air Lines reported a systemwide 4.5% decline in January traffic to 8.57 billion RPMs. Capacity decreased 6.8% to 11.68 billion ASMs and load factor rose 1.7 points to 73.4%. Domestic RPMs dropped 7.3% to 6.43 billion as capacity fell 10.8% to 8.76 billion ASMs and load factor rose 2.7 points to 73.3%.
Lufthansa Systems' joint venture with Garuda Indonesia successfully implemented e-ticketing for the Indonesian carrier. Next steps are introduction of LHS solutions for pricing and network planning. Navitaire, a unit of Accenture, said AirTran Airways signed a business process agreement for its Open Skies hosted reservation system, renewing services provided under an existing five-year deal.
The sale of Thailand's Shin Corp., which owns 50% of Thai AirAsia, to an investment group led by Singapore's Temasek Holdings sent shockwaves through Kuala Lumpur-based AirAsia. Thai AirAsia was a joint venture between AirAsia (49%) and Shin, the telecom giant founded by Thailand's controversial Prime Minister Thaksin Shinawatra, with 50%. The remaining 1% of the discount airline is owned by Thai AirAsia CEO Tasapon Bijleveld.
