Finnair reported a net profit of €26.4 million ($30.86 million) for the quarter ended Sept. 30, an impressive 193.3% rise over year-ago profits of €9 million. The carrier was able to keep expenses in check--they rose just 9%--as turnover increased 13.4% from €415.6 million to €471.2 million. Operating profit doubled from €16.1 million to €32.1 million.
US FAA yesterday issued a notice of proposed rulemaking to require operators "of more than 3,200 existing and certain new large passenger jets" to reduce flammability levels of fuel tank vapors "on the ground and in the air to remove the likelihood of a potential explosion from an ignition source," such as the one believed to have destroyed TWA Flight 800 in 1996.
Delta Air Lines pilots, represented by the Air Line Pilots Assn., offered concessions valued at an average of $90.7 million per year over four years, "considerably more than Delta needs to reach its goal of a 0.82 cents pilot CASM," according to the union. The proposal encompasses among other things a reduction in pilot pay by 9% commencing Dec.1 for seven months and then by 7% for six months and 5% thereafter, as well as changes to work rules and benefits.
Delta Air Lines reported a net loss to common stockholders of $1.13 billion for the third quarter ended Sept. 30 compared to a loss of $651 million in the year-ago period. Current-period results are net of $607 million in reorganization items related to the carrier's Sept. 14 bankruptcy filing. Delta said that if special items are excluded from both periods, the 2005 loss was $438 million, narrowed from $592 million in 2004. "Our results for the third quarter show the challenges we continue to face," said CEO Gerald Grinstein.
Korean Air's third-quarter profit rose 80.6% to KRW154.2 billion ($148.1 million) compared to KRW85.4 billion in the year-ago period. Growth was driven partly by fuel surcharges that lifted domestic and international yield 15% and 17% respectively. "Despite increasing fuel costs, we were able to contain our overall operating expenses. In fact, we saw lower rent, labor and maintenance costs and were therefore able to report an improved profit margin," President Jonghee Lee said.
SpiceJet ordered 10 737-800 Aviation Partners Boeing Blended Winglet shipsets for installation beginning in January. Separately, Aviation Partners Boeing said CEO Mike Marino resigned Nov. 11 "to pursue other interests." The search for a replacement will begin immediately.
United Airlines will hire new flight attendants for the first time since 2001, the carrier said last week. It began accepting applications Sunday for 2,000 positions to be based in Chicago and Washington and will begin training in January. The openings are a result of a decision not to return by approximately half of the 5,500 voluntarily furloughed flight attendants. All of those who chose to return were back as of Oct. 31, a United spokesperson told ATWOnline.
Norwegian reported a third-quarter net profit of NOK43.8 million ($6.6 million), a reversal of fortune from the year-ago quarter when the Scandinavian LCC lost NOK11.2 million. Operating revenue surged 77.8% to NOK589.9 million as the carrier added two aircraft to its fleet and saw a 91% increase in RPKs year over year, a 51% capacity increase to 1.033 billion ASKs and a record 86% load factor, up 17 points. Operating expenses rose 53.4% to NOK526 million compared to NOK342.9 million in the 2004 quarter.
Alitalia's long-awaited rights issue aimed at financing its restructuring plan and saving it from bankruptcy will be launched today and run in stages through Dec. 2 ( ATWOnline, Nov. 9). The share issue is expected to raise €1.01 billion ($1.18 billion), around 17% below the carrier's original goal of €1.2 billion. The Italian state will subscribe to just under half the shares issued, worth €489.2 million, diluting its stake to below 50% from the current 62.3%.
Ryanair announced Friday a $1 billion commitment to its operations at Frankfurt Hahn, which will become the carrier's second-largest base behind London Stansted by 2012 at which point the Irish LCC said it expects to have 18 aircraft operating more than 50 routes from Hahn carrying 8 million passengers annually and creating more than 8,000 jobs. Ryanair will have a maintenance facility at the airport and also plans to provide a €12.5 million ($14.6 million) loan toward a new passenger terminal.
US and Canada reached a full open skies agreement Friday "that removes all economic restrictions on air services to, from and beyond the other's territory by the airlines of both countries." The agreement was reached after three days of talks in Washington and builds on the liberalized accord reached in 1995 that dramatically boosted air services between the countries but "provided virtually no rights for airlines to fly beyond the other country and severely limited express cargo services," according to the US Dept. of Transportation.
FLYi, parent of Independence Air, reached tentative agreements on labor cost reductions with its flight attendants, represented by the Assn. of Flight Attendants, and its mechanics, represented by Aircraft Mechanics Fraternal Assn., as the carrier worked through its first week of bankruptcy ( ATWOnline, Nov. 8).
SAS is eager to sell its 20% stake in bmi and pull out of the loss-making joint venture with the British carrier and Lufthansa on European routes, the Financial Times reported. In an interview with the newspaper, SAS Chief Executive Joergen Lindegaard conceded that the JV cost the carrier SEK1.5 billion (£182.1 million) in losses between 2000 and September this year. It expects a further loss from the venture of SEK450 million for the current year.
British Airways signed an MOU with Tussauds Group for the sale of its entire interest in the British Airways London Eye including its one-third share and its outstanding loan for £95 million ($165.63 million). BA plans to continue its brand association with the attraction by extending its franchise agreement.
Cathay Pacific Airways reported October RPKs of 5.52 billion, a 10.8% rise over the year-ago month, and 7.23 billion ASKs, a 12.7% increase. Load factor dropped 1.3 points to 76.3%. The carrier said it hopes to launch daily service to Rome following the Hong Kong government's announcement that it has secured additional rights. Cathay currently flies to Rome five times weekly.
Hawaiian Holdings, parent of Hawaiian Airlines, reported a quarterly net income of $7.83 million in its first complete quarter since emerging from Chapter 11 protection in June. On a GAAP basis, the holding company lost $1.76 million in the year-ago quarter, but GAAP revenue and expense figures for 2004 were not supplied. Operating income in the quarter ended Sept. 30, 2005, was $17.93 million.
AirTran Airways announced four new daily flights between Boston Logan and Washington Dulles beginning Feb. 15 and two daily flights between Dulles and Orlando starting Jan. 4. Iberia increased frequency between Madrid and Rio de Janeiro from four-times-weekly to daily. It will use A340-300s and dash 600s.
Delta Air Lines pilots, represented by the Air Line Pilots Assn., offered a set of "comprehensive" concessions Wednesday in anticipation of a Nov. 16 hearing on the carrier's request to void its 11-month-old contract. ALPA formed a strike committee last week in response to the airline's Section 1113 filing ( ATWOnline, Nov. 4). Details of the concessions were not disclosed. Delta asked the court to permit it impose pay and benefit cuts and work rule changes worth $325 million annually. Delta pilots took a 32% pay cut last year that is saving the company $1 billion.
BAE Systems' Jeteye commercial airliner anti-Manpads system made its first flight on an American Airlines 767 yesterday. BAE is participating in the US Dept. of Homeland Security's Counter-Manpads Program. Installation of the laser-based infrared countermeasures system was done in partnership with American Airlines Maintenance and Engineering Services. Global Security Associates was selected by MAXJet Airways to provide ground aircraft security at New York JFK.
Air Canada will introduce new seats across its entire fleet including installing lie-flat seatbeds in its international Executive First premium cabins beginning next spring. Seats, designed and manufactured by Contour Premium Aircraft Seating, will offer 6 ft. 3 in. of length in bed configuration and provide up to 31 in. of width at the shoulders. They will be separated by 43-in.-high privacy screens. Cabins will feature individual IFE units, in-seat power supplies and multiple storage areas.
Lufthansa Group yesterday confirmed third-quarter net earnings of €416 million ($490 million) after a breakeven first half ( ATWOnline, Nov. 10). Results were boosted by pre-tax gains of €180 million from the sale of LH's remaining shareholding in Amadeus and €107 million from the sale of its interest in Loyalty Partner. It earned €125 million in the third quarter of 2004.
Regional Express of Australia took delivery of a Saab 340B from Skyways Aviation of Sweden. The aircraft previously was operated by Carpatair of Romania. REX began operations in 2002 following the merger of Hazelton and Kendell airlines. It operates a domestic network from bases in Sydney, Adelaide and Melbourne.
Boeing's 777-200LR Worldliner achieved a new distance record of 11,664 nm. (21,601 km.) when it touched down in London at 13:06 UTC yesterday, 22 hr. 42 min. after it departed Hong Kong Wednesday night at 10:30 p.m. local time. The GE90-110B1-powered aircraft took off at 711,000 lb., well under its MTOW of 766,000 lb. Liftoff was 40 sec. after power-up and it reached its initial cruising altitude of 29,000 ft. in just 18 min.
BAA would demolish Terminal 2 and the Queens Building at London Heathrow and replace it with a single state-of-the-art facility capable of handling up to 30 million passengers annually as part of its vision to continue the badly needed transformation of the airport.
Jet Airways of India will install first class cabins in its new 777-300ER fleet. Deliveries begin in 2007. Jet will continue to operate a two-class configuration in its A340-300Es and also in its 12 A330-200s on order.
