Alaska Air Group Chairman and CEO Bill Ayer credited "sacrifices by our employees, strong revenue performance and the benefits of our fuel hedging program" for the company's improved performance in 2005, which saw the parent of Alaska Airlines and Horizon Air narrow its net loss 61.4% to $5.9 million from a 2004 deficit of $15.3 million.
Midwest Air Group, parent of Midwest Airlines and its Regional affiliate Skyway Airlines, reported a loss of $64.9 million for 2005, widened from $43.1 million in 2004 on special items and higher fuel expense, but said its loss for fourth quarter narrowed to $13.9 million from $19.4 million last year. "The competitive environment and high fuel prices continued to challenge us in the fourth quarter, as they have throughout a difficult year," Chairman and CEO Timothy Hoeksema stated. Annual operating revenues rose 25.9% to $523 million with passenger revenue up 29.8% to $459.7 million.
Delta Air Lines will launch Raleigh/Durham-Los Angeles service daily except Saturday from June 8 aboard 737-800s. It will start daily service from Boston to Nashville and Savannah from April 3. Flights will be operated by Delta Connection carrier Comair aboard 50-seat CRJ200s. Iberia will launch a daily La Coruna-London Heathrow service from Feb. 1 aboard 150-seat A320s. JetBlue Airways announced it is seeking permission to start twice-daily flights from New York JFK to Bermuda in May.
World Airways and its pilots, represented by the International Brotherhood of Teamsters, are continuing to negotiate in advance of the Jan. 28 conclusion of the 30-day cooling-off period imposed by the National Mediation Board ( ATWOnline, Jan. 11). At that time, the 430 pilots may go on strike while the airline can impose a new contract. Pilots are barred from interrupting flights carried out on behalf of the US military, World's largest customer, but IBT said it could "make no promises" to other customers.
AirTran Airways announced the promotion of Director-Corporate Finance Arne Haak to VP-finance and treasurer and Director-Engineering Kirk Thornburg to VP-maintenance and engineering. Gulf Air named Rajeev Nambiar GM for India operations.
BAE Systems Regional Aircraft said it had "done well" in 2005 as it secured new business worth more than $320 million despite a highly competitive regional aircraft marketplace. The company concluded lease transactions in its BAe 146/Avro RJ and ATP portfolios for 68 aircraft, business worth just under $230 million. A further 28 aircraft were the subject of other financial transactions. The Jetstream 32 and 41 portfolios resulted in $12 million in business.
SAS Scandinavian Airlines and Alitalia each began returning to normal operations yesterday following several days of strikes. An SAS spokesperson told ATWOnline that the airline cancelled 500 flights between Monday and Wednesday when 200 pilots from SAS Denmark staged a strike and 80 pilots from SAS Braathens in Norway called in sick. Although the Norway group remained sick on Thursday, SAS was operating most of its schedule; through mid-afternoon it had cancelled 26 flights in Denmark and 47 in Norway.
WestJet is investing up to $30 million to develop a reservation system and other new technology that will enable it to begin codeshare operations with other carriers as early as 2007, CEO Clive Beddoe said yesterday at the Raymond James Growth Airline Conference in New York. "We see it as a growth opportunity for us," Beddoe told ATWOnline. Air Canada "has abandoned" a large numbers of carriers because of its relationship with Star Alliance, he added. Several airlines, including legacy carriers and LCCs, have expressed interest in a codeshare partnership with WestJet.
Ryanair yesterday said it will begin charging for checked baggage but that a 9% across-the-board fare reduction will offset the new fee for many customers who avail themselves of the ability to check in for their flights online. Although the carrier long has talked about charging passengers to check luggage, FlyBE beat it to the punch last month ( ATWOnline, Dec. 20).
Air New Zealand will suspend its twice-weekly nonstop Christchurch-Los Angeles service during the off season from April 3 to Oct. 28. Emirates will launch four-times-weekly service to Copenhagen from Oct. 3 aboard two-class A330-200s, increasing to daily on Oct. 29. It is the carrier's first passenger service to Scandinavia.
Cintra SA, Mexico's airline holding company, is changing its name to Consorcio Aeromexico, according to media repots. Cintra sold Mexicana and its Click LCC to hotel company Grupo Posadas last month ( ATWOnline, Dec. 20) but opted to retain AeroMexico.
Air Europa finalized its launch order for 10 A350-800s plus two options. The Spanish carrier became the first airline to commit to the aircraft when it signed an MOU with Airbus at the end of 2004 ( ATWOnline, Dec. 22, 2004). It also will lease three A350s from GECAS. The A350-800s, scheduled for delivery between 2010 and 2012, will be used for transatlantic service, be powered by GEnx-1As and seat 253 passengers in a two-class configuration.
Alitalia suffered a sixth day of strikes Wednesday as unrest continued over its restructuring and the sale of the majority of ground services arm AZ Services to Fintecna. Union leaders met with government ministers yesterday afternoon and presented a document claiming Alitalia is uncompetitive, does not possess a strategic industrial plan and is under poor management, according to La Stampa.
Mesa Air Group posted a $13 million net profit in the first fiscal quarter ending Dec. 31, a 6.4% decline from $13.9 million earned in the year-ago quarter. The drop occurred despite a 22.2% rise in operating revenue to $323.6 million, which the carrier attributed to the addition of 13 regional jets to its fleet during calendar 2005. Expenses climbed 24.6% to $294.8 million, driven by a 56.2% hike in fuel costs to $104.8 million. Operating income rose just 1.8% to $28.8 million.
Three unions representing American Airlines employees--the Allied Pilots Assn., the Assn. of Professional Flight Attendants and the Transport Workers Union--each filed presidential grievances yesterday protesting the cash bonuses that around 1,000 members of management are set to receive in April under the carrier's Performance Unite Plan, which links the payments to stock performance. The unions contend the bonuses are a violation of their collective bargaining agreements and also occurred despite that fact that American parent AMR Corp. lost $861 million last year.
International Air Transport Assn. expressed outrage at Aeroports de Paris' plan to raise charges at Paris CDG 5% per year for the next five years, calling ADP "greedy." According to IATA, the French government ignored airline pleas and the report of an independent consultant to approve "the ridiculously high increase" in airport charges. "This is yet another demonstration of how airlines are caught between a rock and a hard place in their relationship with airport monopolies," DG and CEO Giovanni Bisignani said. "ADP clearly does not understand the need for efficiency.
Delta Air Lines is moving forward with previously announced plans to cut its workforce ( ATWOnline, Sept. 23). According to media reports, 800-1,000 MRO jobs at Atlanta Hartsfield-Jackson International Airport will be eliminated. The cuts go into effect April 1 when the airline will close a hangar at Hartsfield.
ACE Aviation Holdings, parent of Air Canada and Jazz, moved forward Tuesday with previously announced plans for a partial sale of its Regional airline subsidiary ( ATWOnline, Nov. 29). Under an agreement between Jazz Air Income Fund and a group of underwriters, 23.5 million units of the fund will be sold at a price of $10 per unit, representing 19.1% of the airline. Based on the unit price, gross proceeds to ACE will total C$235 million before overallotments.
FAA yesterday said it has saved $1.4 million in overtime expenses and achieved a 75% reduction in operational errors at the troubled New York Terminal Radar Approach Control facility since reasserting authority over scheduling practices and taking a more hands-on management approach there ( ATWOnline, June 3, 2005).
Garuda Indonesia told a parliamentary commission it lost IDR672 billion ($70.7 million) in 2005, a narrowing of 17.1% from its 2004 losses, according to AFP. The carrier said the slight improvement came as cost cuts were offset by rising fuel prices and continued fallout from the Bali terrorist bombings, which ate into earnings by an estimated $14.7 million, according to an airline spokesperson cited by AFP. Garuda reportedly missed a $55 million debt repayment in December and remains $1.2 billion in the red.
SAS Scandinavian Airlines announced on its website yesterday afternoon the conclusion of the pilots strike and sickout that had grounded hundreds of flights in Copenhagen and at its Braathens division in Norway since Monday ( ATWOnline, Jan. 24). The pilots, who were protesting potential labor issues connected to SAS Group's split into national airline divisions, were expected back at work this morning. SAS estimated the strike cost it approximately DKK30 million ($4.9 million) per day, according to media reports.
KLM will launch a twice-weekly Amsterdam-Chengdu service from May 28 using 777 200ERs in cooperation with China Southern Airlines. Chengdu is KLM's fourth Chinese destination. United Airlines will launch weekly Chicago-Puerto Vallarta service from March 4. Service will become daily Dec. 15. Weekly Los Angeles-Cancun service also will begin March 4, increasing to daily service on Ted from June 8. All flights will be aboard A320s. UA is awaiting approval to begin Chicago-Cancun service and flights from LAX to San Jose del Cabo and Puerto Vallarta.
Qantas took delivery of the first of seven Q400s, which will enter service Feb. 26. The 72-seat turboprop will operate twice-daily service between Brisbane and Mackay replacing a single daily flight currently operated with a 737.
Volga-Dnepr Group said its first new-build IL-76TD-90VD freighter received Chapter 4 noise certification from ICAO. The company has ordered two of the 50-tonne freighters, which are equipped with PS-90a-76 engines and new avionics.
Sabre Holdings and Northwest Airlines signed a five-year, full content agreement to make available through the Sabre GDS all Northwest published fares and inventory, including special Web fares. Concurrent with the announcement, the companies said they agreed to settle all current litigation.
