SITA SC and SITA INC will be consolidated into a single SITA organization from July, ending the separate structure dating back to 2000. "The integration of the communications services business (SITA SC) and the IT systems, solutions and services business (SITA INC) with the Group Services into a single organization will make it much easier for our customers to do business with SITA. It will also make SITA easier to manage and should also save significant costs which will be passed on to our ATC customers," said Paul Coby, chairman of the boards of SITA SC and the SITA Group Foundation.
Lufthansa Group released an initial earnings projection yesterday indicating it expects to report a €550 million ($665.81 million) operating profit for 2005, well above its November projection of profits "significantly" higher than €400 million ( ATWOnline, Nov. 11) and a 43.6% rise over a 2004 operating result of €383 million. The company said the discrepancy between its 2005 projection and the result "is due to the good performance of the Passenger Business segment at the end of last year."
China Eastern Airlines said its 2005 net profit will narrow by more than 50% from its CNY514.1 million ($63.7 million) 2004 earnings, according to Shanghai Securities News cited by Reuters. China Eastern's results have fluctuated wildly--it reported a CNY471.4 million loss in the first half of 2005 but was CNY673.2 million in the black by the close of the third quarter. It lost CNY949.8 million in 2003.
Focus Aviation announced it completed the sale of two A300-600Rs on behalf of China Airlines to Avion Aircraft Trading, which will lease the aircraft to an unnamed Middle Eastern carrier. One will be converted into a freighter in October.
Star Flyer of Japan plans to launch operations with three 144-seat A320s by March, operating up to 12 daily flights from the new Kitakyushu Airport to Tokyo Haneda. "We will offer higher prices than Skymark but our fares will be around 20% lower than JAL or ANA," Senior Executive Director Yasushi Muto told this website. Launch capital for the new company is around $38 million. An IPO could be planned for 2008.
United Services Flight Training, a division of United Airlines, became the first foreign provider to receive CAAC certification to train Chinese airline pilots. It said it expects to train pilots from two carriers on 757s and A320s at its Denver Flight Training Center.
United Airlines' reorganization plan could be approved by the bankruptcy court today, putting the carrier on course to meet its timetable to complete Chapter 11 restructuring in early February.
US Airways said it reached a transitional agreement with the Assn. of Flight Attendants, representing its 11,000 cabin staff, that will "govern many merger-related aspects of the parties' relationship" until a single agreement can be reached covering all the merged airline's cabin staff. Among other items, the transition deal covers job protection for active members, seniority list integration, job opportunities for furloughed workers and participation by cabin staff from US Airways and America West in a profit-sharing plan.
British Mediterranean Airways, a franchise partner of British Airways, took delivery of the first of seven A321s yesterday. The aircraft, powered by IAE V2500s, seats 149 in a two-class layout. BMED currently flies three leased A320s and three leased A321s on routes from London Heathrow to the Middle East, central Asia and Africa.
Jet Airways yesterday announced it is buying much smaller Air Sahara for $500 million, a step that will give it more than half of India's domestic market based on 2005 boardings, according to press reports. The two carriers had been in talks for some time ( ATWOnline, Jan. 12). Both began flying in 1993 during the first phase of India's airline liberalization. Jet completed an initial public offering of 20% in early 2005, leaving Chairman Naresh Goyal holding 80%.
Viva Air, a proposed low-fare startup based in Macao, expects to announce a fleet decision within the next 10 days. The carrier is looking for up to 12 widebodies to support an international long-haul route network with service commencing in the June/July timeframe. "We are looking to Berlin, Lisbon or Milan with around three to four weekly flights," CEO Andrew Pyne told ATWOnline at the third Low Cost Airline Symposium in Singapore. The carrier has traffic rights out of Macau on 15 routes.
EDS and United Airlines signed a 10-year IT services deal providing desktop, helpdesk, managed services and an upgrade of the carrier's computing and communications environments.
China Eastern Airlines Wuhan's board approved the purchase of five ERJ-145LRs from Harbin Embraer, the joint venture between Embraer and AVIC II. China Airlines Jiangsu previously ordered five ERJ-145s ( ATWOnline, March 25, 2005).
CSA Czech Airlines named former power company executive Radomir Lasak as its new president. He replaces Jaroslav Tvrdik, who resigned earlier this month to enter politics ( ATWOnline, Jan. 5).
Despite $700 million in cost reductions achieved last year, AMR Corp. could not overcome the impact of record nominal fuel prices that cost it an additional $1.7 billion over what it spent in 2004, plus a handful of special items. The parent of American Airlines reported a net loss of $604 million in the fourth quarter and $861 million for the full year, compared to losses of $387 million and $761 million in the fourth quarter and full year of 2004 respectively.
SN Brussels Airlines launched what it called "a completely new pricing strategy which rewards early bookers." Fares will be reduced by up to 45% for tickets booked at least two months prior to departure date. The lower fares will be available to each of its 32 destinations for both one-way and return travel. The carrier said it will offer about 800,000 of its 5.5 million seats at the new discounted early booking fares this year.
On the heels of a chaotic year featuring surging fuel costs, perilous weather, the bankruptcy of two legacy carriers and the failure of a low-cost competitor, Southwest Airlines once again demonstrated a "record unmatched in this bruising commercial airline business," reporting net earnings of $548 million for 2005, a remarkable 75.1% increase over a 2004 profit of $313 million as its extensive hedges cushioned the impact of high fuel prices.
Boeing identified the suppliers that will provide propulsion systems for the 747-8, which is scheduled to enter service in September 2009 with Cargolux. In addition to the GEnx-2B67 powerplant, GE's Middle River Aircraft Systems unit will contribute the all-composite thrust-reverser system and Spirit AeroSystems, Boeing's former Wichita unit, will supply the engine struts and nacelles. The internal supplier team includes Boeing Winnipeg (aft pylon fairing), Boeing Portland (engine mounts) and Boeing Propulsion Systems (engine and strut build-up).
Thai low-fare airline Nok Air is eyeing an IPO by mid-2007 to help fund fleet renewal and expansion. "Currently we are looking at 737NGs and the A320 family," CEO Patee Sarasin told ATWOnline in Singapore. He noted, however, that owing to the unfavorable exchange rate of the Thai baht, the carrier will stay with 737-400s for the time being. Nok will add a fourth 737-400 by Feb. 1 and plans to add three more aircraft this year, supporting the addition of three new cities in Thailand that will boost its network to eight.
United Airlines reached an agreement with the Assn. of Flight Attendants on the terms of a new defined contribution pension plan that includes a 3% company match and a 2% direct contribution effective Jan. 1, escalating to a 2.5% direct contribution effective Jan. 1, 2007, and a 3% direct contribution effective the following year, for a total of a 6%, double the amount of the company's original proposal. The agreement also includes $20 million in convertible notes and immediate vesting for all flight attendants currently employed by United.
Rockwell Collins' eFlight initiative made sales to two key airline players, giving the program a big boost after years of development. EasyJet plans to go live in April with a fleetwide EFB for its 54 737s, according to Aircraft Operations Cost Manager Taylor Bradbury. This will allow electronic posting of technical and journey logs via Panasonic CF-18 laptops linked by cellphone wireless during base airport turnarounds while providing automated weight and balance computations.
Efforts by Richard Branson's Virgin Group to regain control of Virgin Blue may have suffered a fatal setback when Australia's Competition and Consumer Commission said it was opposed to Toll Holdings' proposed takeover of Patrick Corp., which holds 62.4% of the Australian low-fare airline. Toll launched a A$4.6 billion ($3.5 billion) hostile takeover of Patrick last August. Assuming the takeover had been successful, Toll would have sold enough Virgin Blue shares to raise Virgin Group's holding from 25% to 40.6%, making it the largest shareholder in the carrier ( ATWOnline, Aug.
Norwegian Air Shuttle signed a purchase agreement with Bavaria International Aircraft Leasing for a 737-300. It will be the carrier's first fully owned aircraft.
