Mediated negotiations between Northwest Airlines and its Aircraft Mechanics Fraternal Assn.-represented employees broke down Wednesday after the carrier "refused to move beyond unacceptable demands," the union said. "Northwest's continued refusal to engage in meaningful negotiations destroyed yesterday's session and left little hope for a consensual agreement needed to avert a strike," AMFA National Director O.V. Delle-Femine said. "There is no use scheduling another negotiating session unless both parties come prepared to negotiate."
Frontier Airlines named former ATA Senior VP John Happ as its new senior VP-marketing and planning and Bill Schuyler as its new director-schedules. It promoted Anne McCollum to senior director-reservations and customer support.
Southwest Airlines flew 5.96 billion RPMs in July, up 14.7% over same month last year. Capacity climbed 12.7% to 7.28 billion ASMs and load factor rose 1.4 points to 80.8%. For the seven months ended July 31, RPMs increased 10.7% to 34.68 billion, ASMs rose 12% to 48.95 billion and load factor dipped 0.9 point to 70.8%.
American Airlines flew 13.62 billion RPMs in July, up 8.1% over the year-ago period. Capacity climbed 3% to 16 billion ASMs and load factor was up 4.1 points to 85.1%. For the seven months ended July 31, RPMs increased 7.2% to 81.64 billion, ASMs rose 1.7% to 103.75 billion and load factor gained 4 points to 78.6%. Delta Air Lines flew 11.83 billion RPMs in July, up 6.1% over the year-ago period. Capacity climbed 5% to 14.07 billion ASMs and load factor was up 0.8 point to 84.1%.
AirTran Airways will launch daily nonstop flights from Flint to Ft. Myers Nov. 8 using 717s. Separately, AirTran flew 1.1 billion RPMs in July, up 39.4% over the year-ago period. Capacity climbed 32.6% to 1.36 billion ASMs and load factor was up 3.9 points to 80.8%. For the seven months ended July 31, RPMs rose 32.3% to 6.45 billion, ASMs increased 29.4% to 8.67 billion and load factor gained 1.6 points to 74.4%.
Rockwell Collins was selected by Hapagfly (formerly Hapag-Lloyd Flug) to provide its Programmable Audio Video Entertainment System on 10 new 737-800s with an option for 10 additional aircraft. Deliveries are expected to begin in January.
Barely a month after laying out a timetable leading to an exit from Chapter 11 bankruptcy protection this year ( ATWOnline, July 4), United Airlines again is seeking more time to reorganize. This time, however, the delay comes not from airline management but at the request of the carrier's creditors.
Gol reported a 73.4 million reais ($31.2 million) net profit for the second quarter ended June 30, barely up on income of R$73.2 million in the year-ago period. Operating income, however, dropped 8.4% to R$85 million from R$92.8 million. "Gol remains committed to its virtuous cycle of maintaining low costs, allowing us to offer the lowest fares and achieve the highest load factors in the Brazilian market, thereby driving industry-leading profitability," CEO Constantino de Oliveira Jr. said.
Ryanair shrugged off a doubling of its fuel bill to report a 31.2% profit rise to €69.9 million ($69.6 million) for the fiscal first quarter ended June 30 compared to net income of €53.1 million in the year-ago period. Current-period results include a gain of €5.2 million (net of tax) from the settlement of an insurance claim covering six 737-200s damaged during an overhaul. Operating profit also increased, jumping 23.4% to €79.9 million from €64.7 million in the 2004 period, although operating margin dipped from 21.6% to 19.7%.
Continental Airlines flew 7.88 billion RPMs in July, up 7.8% over the year-ago period. Capacity rose 9.6% to 9.4 billion ASMs and load factor was down 1.5 points to 83.9%. For the seven months ended July 31, RPMs increased 9.4% to 46.29 billion, ASMs climbed 5.5% to 58.47 billion and load factor gained 2.8 points to 79.2%. For July, Continental said both consolidated and mainline passenger RASM are estimated to have increased 4.5%-5.5% compared to July 2004.
Finnair Technical Services will perform landing gear overhauls on seven ATR 72s operated by Mount Cook Airlines under an agreement with Air New Zealand Group valued at more than €1.2 million ($1.5 million).
Singapore Airlines Group reported a net profit attributable to shareholders of S$235 million ($141.8 million) for the fiscal first quarter ended June 30, down 7.9% compared to a net profit of S$255 million in the prior-year period. Total revenue rose 11.7% to S$3.04 billion but total expenses climbed 15.3% to S$2.79 billion as higher fuel prices added S$363 million (before hedging) to expenditure. As a result, operating profit dropped 16.5% to S$253.1 million from S$303.1 million. SIA carried 4 million passengers in the quarter, up 5.7% over last year.
LAN Airlines is the customer for six 767-300s, Boeing confirmed yesterday. The aircraft, a mix of 767-300Fs and 767-300ERs, previously were listed on the Boeing website as having been sold to an unidentified customer. The orders are in addition to six 767s ordered by LAN in 2004.
An Air France A340-300 skidded off the runway at Toronto Pearson International Airport during a thunderstorm yesterday and broke into pieces, but there were only minor to moderate injuries among the 297 passengers and 12 crewmembers onboard, all of whom were evacuated safely before the aircraft wreckage caught fire.
Pinnacle Airlines reported net income of $13.8 million for the second quarter ended June 30, a 42.3% increase over net income of $9.7 million in the year-ago period. Total operating revenue rose 39.9% to $212.9 million while total operating expenses climbed 40.6% to $190.1 million, producing an operating income of $22.8 million, up 34.7% over operating income of $16.9 million in the year-ago period. "This quarter marks our tenth consecutive quarter of strong financial performance under our Airline Services Agreement with Northwest [Airlines]," President and CEO Phil Trenary said.
Austrian Airlines Group, in a strategy that complements its expanding network to Central and Eastern Europe, plans to boost its extensive presence in the Near East/Middle East and North Africa regions, adding up to five new destinations and increasing frequencies on established routes. "A good time to start new services to the Middle East will be in March/April next year.
CSA Czech Airlines Supervisory Board approved the decision of the board of directors regarding the winner of the tender for financing the purchase of 12 A320s/A319s. The banks are Ceskoslovenska obchodni banka a.s., BNP Paribas and Natexis Banques Populaires. CSA will finance its new airplanes valued at CZK10-CZK12 billion ($402.4-$482.9 million) through a 12-year financial leasing guaranteed by European export credit agencies. The aircraft will be delivered in 2006-08.
Cargo Connection Logistics Corp., a wholly owned subsidiary of Cargo Connection Logistics Holding, was chosen by Continental Airlines to provide over-the-road service between Newark and 10 points located in the US Northeast and South.
Delta Air Lines yesterday introduced its redesigned and upgraded website. According to the carrier, the new website provides customers with more control of online ticket changes, seat assignments and check-in; the ability to cancel certain tickets within 24 hr.; the ability to calculate award mileage; more international award travel booking capability, and the ability to check in when connecting from Delta to certain other airlines.
Dnata and PWC Logistics formed a new 50/50 joint venture company, Dnata-PWC Airport Logistics LLC, to provide inter-airport logistics services. Dubai-based Dnata, a member of Emirates Group, is an air cargo and airport services provider, while PWC Logistics is a global provider of end-to-end supply chain solutions. Operating from Dubai Cargo Village, the new company will offer air cargo operators road feeder service between airports in the Gulf region.
Connexion by Boeing and Intel Corp. reached agreement to "enhance and promote high-speed inflight wireless Internet service." As part of the accord, the companies have completed compatibility testing with common Intel Centrino mobile technology-based laptop configurations, making Connexion the first inflight Internet service to be verified through Intel's Wireless Verification Program.
Wizz Air signed an agreement to lease a new IAE V2500-powered A320 from ILFC. The aircraft will seat 180 in a single-class configuration. It will be delivered in April 2006 on a seven-year lease term. Volito Aviation added two A320s to its portfolio via a sale/leaseback with TACA. The aircraft are on lease with the Central American carrier through October. Financing was provided by DVB Bank AG. Volito placed a 1998 A320 with Sichuan Airlines on lease through July 2011. It is financed by PK Airfinance Luxembourg.
