FedEx Corp. said net income for the fiscal first quarter ended Aug. 31 rose 3% to $339 million from $330 million on a 10% increase in revenue to $7.71 billion. Operating expenses grew 11% to $7.12 billion, propelled by a 51% jump in fuel expense. Operating income was up 1% to $584 million from $579 million last year.
Southwest Airlines announced a number of service additions. Beginning Oct. 2 it will add a daily nonstop departure in each of the following markets: Burbank-Las Vegas (new total of 13); Burbank-Phoenix (total of nine); Baltimore/Washington-St. Louis (total of four); BWI-Tampa Bay (total of seven); Las Vegas-Oakland (total of 14); Las Vegas-Portland (total of three), and Philadelphia-Raleigh/Durham (total of five). Also, it is introducing a new city-pair, Chicago Midway-San Antonio, with a single daily nonstop. Etihad Airways will add Johannesburg to its network on Dec 3.
MAXjet Airways, a proposed transatlantic premium airline, intends to commence service Nov. 1 operating six flights per week between New York JFK and London Stansted using a 767-200ER configured for just 102 passengers with 60-in. pitch. The Washington Dulles-based carrier, which began life as Skylink Airways in 2003, said it will offer "a high-quality, low-fare business class product" with everyday fares starting at $779 each way.
SN Brussels Airlines is preparing for a major management shakeup following the resignation, with immediate effect, of Management Committee Chairman Rob Kuijpers.
Sweden plans to impose a tax on airline tickets of SEK50-SEK100 ($6.50-$13) from May next year as part of efforts to help the environment, the government said Tuesday. According Reuters, airlines have protested the tax but the government said it is a necessary step as part of tax increases worth SEK3.6 billion to encourage more environmentally friendly energy use. "It is appropriate to introduce a system of taxing air traffic without unnecessary delay," it added.
Air Arabia signed up for SITA INC's Flight Briefing Services package. The Sharjah-based carrier is the first LCC to opt for the system, which emulates industry best practice for fuel and environmental management as recommended by IATA in its Fuel Action Plan.
A new form of airline operations is taking shape in Russia with five carriers putting their operating plans under the control of a single management company, AiRUnion, that may end up in a merger--but may not as well. Initially a December 2004 joining of KrasAir, Domodedovo Air Enterprise, Omskavia and regional carrier Sibaviatrans, the grouping later induced Samara Airlines to enlist. The name AiRUnion was announced in August at the Moscow Aerospace Show MAKS-2005, Deputy Commercial Director Alexey Marchukov told ATWOnline.
Turkish Airlines said it decided to buy five A340s it currently is leasing for a total $175 million. The carrier said in a statement that it will finance the purchases from its own resources. The lease periods are scheduled to expire between April 2006 and April 2011.
Gol and its Mexican business partners submitted a preliminary business plan to Mexican civil aviation authorities covering their proposal to create a low-cost carrier. Plans are to begin service in the second quarter of 2006.
TAP Portugal and bmi signed up to trial the commercial use of mobile phones onboard of some of their A320 family aircraft in partnership with OnAir, the Airbus-SITA joint venture. The trials will take place toward the end of 2006 based on the current timetable to have OnAir's onboard equipment "fully certified" with "the necessary telecommunications regulatory framework put in place."
China's airline industry will absorb 2,600 new airplanes worth $213 billion over the next 20 years, according to Boeing's "Current Market Outlook," making the PRC the largest market for aircraft outside the US. China's fleet will nearly quadruple to more than 3,200 aircraft by the end of the forecast period, according to Boeing. Single-aisle aircraft will account for 1,678 deliveries while "intermediate twin aisles" such as the 787 and 777 will comprise 568 airplanes. Boeing sees a market for just 73 units of 747 size and larger. Regional jets will total 293 units.
Focus Aviation, on behalf of Continental Airlines, arranged the sale of a third MD-82 to Khors Aircompany of Ukraine. Like the first two aircraft, this one will be put through a maintenance check by MNG in Turkey prior to delivery.
Boeing named Ahmed Jazzar to the new position of president of Boeing-Saudi Arabia. Jazzar joins Boeing after having spent 30 years with Saudi Arabian Airlines, where he retired as VP of its Technical Services Division.
US Airways Group, which is set to exit from Chapter 11 and merge with America West Airlines Holdings as early as next Tuesday ( ATWOnline, Sept. 19), cautioned yesterday in a filing with the US Securities and Exchange Commission that it expects "significant" operating losses "to continue through 2006." On a pro forma basis, the carriers had a combined operating loss of $101 million and a net loss of $272 million on revenue of $5.14 billion for the first half of 2005.
Garuda Indonesia and Boeing are in talks about an order for 10 787-8s and 18 737-800s potentially worth $2 billion. The order, if finalized, will replace a 1996 order for 777-200ERs. The 787-8s will be delivered between 2011 and 2013. The 737-800s will start the replacement of the airline's 737 Classic fleet. Garuda operates three 747-400s, an A330-300, 26 737-400s, 17 737-300s and five 737-500s.
Star Alliance chose UK-based Zero Octa as the preferred vendor for revenue recovery and protection services. Ten member carriers--Air Canada, Air New Zealand, Asiana Airlines, bmi, LOT Polish Airlines, Singapore Airlines, Spanair, United Airlines, US Airways and Varig--will be using Zero Octa.
Airbus said Alitalia will install its Future Air Navigation System B on 23 A321s, joining Aeroflot and Finnair as customers for the data link navigation system.
In a move aimed at "strengthening its competitiveness" in European point-to-point markets that do not involve its hubs at Frankfurt, Munich and Zurich (Swiss International), Lufthansa is creating a new organizational unit with responsibility for "strategic and infrastructure development as well as ground processes, procurement of airport services and business processes" at the 11 German stations.
US Transportation Secretary Norman Mineta and Thai Minister of Foreign Affairs Kantathi Suphamongkhon signed an open-skies aviation agreement in Washington yesterday. The accord, which was finalized earlier this month ( ATWOnline, Sept. 14), lifts restrictions on the number of passenger services that may be operated between the countries but has a five-year phase-in period for pricing and some beyond-country services.
Austrian Airlines Group raised its fuel surcharge for long-haul flights from €37 ($45) to €52 per leg and its surcharge for short-haul flights from €9 to €12 per leg. The new charges take effect from Sept. 26.
Aer Lingus, KfW IPEX-Bank and Calyon Corporate and Investment Bank closed structured debt financings for two A320s, jointly arranged with Babcock & Brown.
News from Travel Technology Update: Cendant Travel Distribution Services is in the implementation phase of its next-generation passenger services system, dubbed airRES. WestJet, Canada's answer to Southwest Airlines, will be the launch customer. The new system will replace WestJet's current reservations, scheduling and check-in systems, provided by Navitaire.
New Orleans Aviation Director Roy Williams is looking to the US government to make up much of the estimated $300 million in damages and lost revenue to the city's principal airport from Hurricane Katrina.
