There's more truth than hyperbole in this observation, as can be demonstrated by comparing the profit margins of a random selection of suppliers to a like number of airlines over, say, a five-year period. Unless a Ryanair, Singapore Airlines or Southwest Airlines ends up in the airline draw, it probably won't even be close.
Airbus welcomed Gustav Humbert as its new president & CEO and announced several appointments. Executive VP-Operations Gerard Blanc is leaving the company and is succeeded by Karl-Heinz Hartmann, Charles Champion becomes COO and deputy to the CEO and remains head of the A380 program, John Leahy becomes COO-customers, Tom Williams is executive VP-programs, Alain Flourens succeeds Hartmann as executive VP & head-center of excellence, Henri Courpon becomes head of procurement and Olivier Andres becomes executive VP-strategy & cooperation.
The return of air traffic to the near-saturation levels that existed prior to 9/11-with virtually no corresponding increase in airport capacity-means that congestion and delays are on the rise again. Thus it is no surprise that airlines are looking for information technology solutions to manage aircraft better in the airport environment. A number of IT providers are offering integrated packages to do just that. Sensis Corp. and Preston Aviation Solutions, a Boeing subsidiary, are two major players.
North American Airlines bills itself as "America's Greatest Little Airline." Little it certainly is and greatness, like beauty, lies in the eyes of the beholder. But the New York JFK-based carrier, which was acquired by World Air Holdings in late April for $35 million, has been a consistent moneymaker since its first plane took to the skies in 1990.
When this magazine reviewed the status of elite and unconventional air travel two years ago (ATW, 6/03, p. 42), we talked quite a lot about a startup called Indigo, which planned to connect Chicago Midway with Teterboro using 16-passenger Embraer Legacy jets. Indigo, like so many all-premium airlines, is no longer with us, but that has not squelched enthusiasm for a different kind of air service aimed, as the Concorde was, at a premium market.
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.
Although it has shed billions in costs during its second restructuring, US Airways Group posted a $62 million net loss for the second quarter ended June 30, which included $26 million in one-time charges consisting of $19 million in professional fees, $6 million in damage and deficiency claims on rejected aircraft and $4 million of severance that was offset slightly by $3 million in interest on accumulated cash. This compares to a net income of $34 million in the year-ago period. Excluding one-time items, net loss for the 2005 second quarter totaled $36 million.
World scheduled passenger airline traffic is expected to reach 3.71 trillion RPKs this year, up 7.6% compared to 3.44 trillion RPKs in 2004, followed by 6.5% growth in 2006 and 6.2% in 2007, according to ICAO's latest medium-term forecast. The strongest growth is expected from Middle East airlines, with an average annual growth rate of 10.9% over the three-year forecast period.
Frontier Airlines posted a $2.7 million net loss in the fiscal first quarter ended June 30, improved from a $6.6 million net loss in the year-ago period. The 2005 first quarter included several one-time items such as a $3.3 million charge related to three leased 737-300s the carrier stopped using during the quarter and an unrealized loss on fuel hedges of $1 million.
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.
