Wizz Air is still very young and only time will tell if it will survive in Europe 's overcrowded low-cost arena, which already has claimed many victims over the past year including Air Polonia, V-Bird, Volare and Ciaofly. But its start has been strong, with 1.2 million passengers carried at an average load factor of 60% in its first full year of operations to May 19. Revenue in its first financial year, which covered the 11 months to March 31, amounted to E60 million.
You joined BA as chief executive in May 2000 and will leave the company next month. What do you feel was your biggest accomplishment during these five years? The single most important thing is that we are in substantially better shape than we were at 9/11, despite the effect of 9/11, SARS, the Iraq war . . .
National Mediation Board accepted an application from the pilots union at AirTran Airways for mediation services in its negotiations with management, the National Pilots Assn. said Friday. The application was filed earlier this month ( ATWOnline, July 29).
Wizz Air will launch service from Amsterdam to Katowice and Budapest Nov. 1 and Dec. 1 respectively. It will operate three weekly flights to Katowice and four to Budapest. The carrier said that in the coming winter season it will start flights on nine new routes and boost frequencies on most of the existing routes, representing in total a 65% increase in capacity compared to last year.
JAL Group recorded a net loss of ¥38.3 billion ($341.7 million) for its fiscal first quarter ended June 30, improved slightly from a net loss of ¥40.7 billion in the year-ago period. Total operating revenue was up 5% to ¥503.3 billion but operating expenses totaled ¥535.4 billion, resulting in an operating loss of ¥32 billion compared to an operating loss of ¥30.2 billion last year. The carrier said the loss is consistent with its performance over the past 12 years and it usually makes up the deficit with profits earned in the second quarter.
Iberia Group earned €45.3 million ($54.9 million) in the second quarter ended June 30, down 37.3% compared to a profit of €72.3 million in the year-ago period, while net earnings for the first half of 2005 fell 53% to €29.2 million from €62.2 million in 2004. The company said the decline in half-year results "stems from the 20% hike in fuel costs and the extraordinary income in 2004 from the divestment of Iberswiss and the flight simulator center, which increased first-half 2004 results by €33 million."
Assn. of Asia Pacific Airlines last week released preliminary traffic results for June. International passengers carried by AAPA members reached 10.6 million, an increase of 5.2% year-on-year. RPKs grew 6.7% on a slower capacity rise of 6%, resulting in a 0.5-point improvement in load factor to 74.7%. FTKs rebounded from last month's decline to increase 3.3% year-on-year. However, the increase in capacity outpaced FTK growth at 5.9%. As a result, load factor declined 1.7 points to 66.6%.
Pakistan opened up its air routes to the US, UK and Scandinavian countries to the nation's private airlines. Aero Asia, Shaheen Air International and Air Blue, which had been limited to Gulf and ASEAN destinations, are mulling further expansion to take advantage of the new opportunities. The government's move was prompted by the reported inability of Pakistan International Airlines to meet demand, which has been filled by Gulf carriers such as Emirates.
A380 completed 52 flights and accumulated a total of 178 hr. as of July 29, according to VP-Marketing Colin Stuart. Speaking to the Aero Club in Washington Friday, Stuart reiterated that Airbus needs to sell 250 aircraft "plus or minus 10%" for the program to achieve breakeven. The company has targeted 700 aircraft sales out of a total market in the size class for 1,250 aircraft. "So there is room for Boeing," he joked.
United Airlines cabin staff, represented by the Assn. of Flight Attendants, went on the offensive yesterday with coordinated demonstrations at airports in the US, Europe and Asia, threatening to strike in protest over the termination of their pension plan. "Current United management has held its employees and creditors hostage in Chapter 11 for nearly 1,000 days," union head Greg Davidowitch said. "We're hitting the streets around the globe to demonstrate our resolve. We want our pensions back, and we want this management team out."
Midwest Air Group reported an $8.2 million net loss for the second quarter ended June 30 compared to a $3.5 million net loss in the year-ago period. The company attributed the results primarily to the increase in fuel prices and some unusual items. Operating loss also widened from $2.9 million to $8.2 million. Despite the red ink, Chairman and CEO Timothy Hoeksema said he believes the company is making significant progress to return to profitability.
JP Morgan analyst Jamie Baker does not believe Delta Air Lines will file for Chapter 11 this year despite CEO Gerald Grinstein's Tuesday letter to employees warning them that the level of savings being achieved "is not enough" ( ATWOnline, July 28). In a report released after Grinstein's memo was made public Wednesday, Baker noted that, "market speculation appears largely focused on a bankruptcy as early as. .
Continental Airlines placed an order with Boeing for two additional 777-200ERs for its international expansion. The aircraft are scheduled for delivery in the first quarter of 2007 and Continental said Boeing agreed to provide backstop financing. Currently, the airline operates 18 777-200ERs in a two-class, 283-seat configuration.
China will allow its airlines to recruit foreign pilots to relieve the chronic shortage there. According to China Daily, CAAC has drawn up a policy for recruiting pilots. About 11,000 are employed to fly more than 770 aircraft operated by the major airlines. Another 145 aircraft will be delivered this year. According to CAAC, China needs 1,220-1,600 pilots per year, far more than the 660 turned out by Chinese flying schools. Okay Airways, the country's first private airline, is employing foreign nationals as copilots, the newspaper reported.
Hefty special charges overshadowed an improved operating performance at United Airlines during the second quarter as parent UAL Corp. reported a loss of $1.43 billion for the three months ended June 30 net of $1.39 billion in one-time reorganization items. In the year-ago period, UAL had a net loss of $247 million, a figure that included $144 million in reorganization items. Excluding one-time items in both periods, the company reduced its loss to $26 million from a deficit of $103 million in 2004.
Delta Air Lines yesterday unveiled some details of its upcoming fall schedule that it says is designed to improve its operational reliability at its Atlanta hub. Under the schedule that goes into effect Sept. 1, the carrier plans to reduce to 45 min. the minimum time narrowbody aircraft spend on the ground between flights--a 10-min. reduction over last year; make better use of aircraft by freeing up the equivalent of eight additional aircraft from the schedule, and adjust flights in off-peak periods to match capacity better with demand in the fall when air travel slows.
Integration teams representing General Electric, Airbus and Goodrich have defined the "key interfaces" between the GEnx engine and the A350 inlet, nacelle and thrust reverser, GE said yesterday. The team also has been engaged in defining the engine mounts, gearbox concepts and engine pneumatic bleed and electrical systems. "In freezing the initial product definition and launching the GEnx engine, we have essentially established the performance parameters for the GEnx engine on the A350," said program GM Tom Brisken.
IATA reported an 8.3% increase in RPKs for the industry in June compared to the year-ago period, with the Middle East (14.8%), Latin America (12.4%) and Africa (11.2%) showing the largest gains. Capacity rose 7% and load factor stood at 76.6%. In freight traffic, FTKs rose 2.9% on an ATK increase of 6.3%. For the first half, RPKs were up 8.8% over the first half of 2004 while ASKs rose 7.4%. As a result, load factor averaged 74%. FTKs during the period climbed 3.4% on an ATK increase of 7.2%. "The story for the first half of the year is cargo.
European Aeronautical Group announced that British Airways and BA CitiExpress will become launch customers for eAerad, EAG's electronic adaptation of Aerad aeronautical charts. The airlines initially will use eAerad for office, planning, and crew briefing purposes.
Munich Airport operator FMG announced it will start the planning process leading to the construction of a third runway. During peak periods the existing two runways are operating at full capacity of 89 movements per hr., FMG said. It believes that to keep Munich in the forefront of Europe's hub airports, it must be able to handle 120 aircraft per hr. For the first half of the year, passengers increased 7% and aircraft movements rose 6%. No timeframe was given for the third runway project.
Republic Airways Holdings posted net income of $13.4 million for the second quarter ended June 30, up 85.2% over net income of $7.2 million in the prior-year period. Total operating revenues rose 35.8% to $188.8 million primarily as a result of a 40.7% increase in ASMs and a 26.5% jump in block hours. These numbers reflect the addition of 36 regional jets that were placed into service in June 2004, the company said.
Delta Air Lines CEO Gerald Grinstein warned employees in a memo Tuesday that although the carrier's Transformation Plan is delivering anticipated results, "it is not enough" in light of record oil prices and intense fare competition from low-cost carriers. The memo, which was reported in its entirety by the Associated Press yesterday, goes on to state, "The high price of fuel, the interest expense on our debt and other factors have significantly outpaced our transformation initiatives and masked our progress."
KLM said it has seen a 45% increase in the usage of its website by UK passengers to book tickets and check in for flights over the past 12 months, and it now receives an average of 105,000 UK visitors per week. In addition, nearly 85% of UK flyers now travel on an e-ticket, the highest penetration in its network, the airline said. Separately, KLM said it appointed CIO Peter Somers to succeed Ad Rutten as executive VP-KLM Engineering & Maintenance, effective Sept. 1. Boet Kreiken, currently senior VP and area manager-Asia/Pacific, will take over as CIO.
Although Boeing recorded double-digit revenue growth in both its Integrated Defense Systems and Commercial Airplanes segments for the second quarter ended June 30, special items pushed net income down 6.8% to $566 million from $607 million in the year-ago period.
