Olympic Airlines' privatization has attracted bids from four companies. According to Reuters, which cited financial daily Imerisia , Aegean Airlines was the first to confirm its interest, while Germany's DBA, Dutch investment fund Sure Eastate and a consortium that calls itself Olympic Investors also tabled binding bids.
Aer Lingus posted a 29% increase in operating profit before employee profit-sharing to €107 million ($137.1 million) for the year ended Dec. 31, up from €83 million in 2003. Net profit, however, tumbled 98% to €1.2 million from €69.2 million owing to exceptional charges of €102.5 million, of which €97.9 million was related to voluntary severance and early retirement benefits as part of implementation of the carrier's three-year business plan.
Ryanair said it reached agreement with Infratil to base up to four new 737s and deliver up to 2 million passengers per year to Lubeck Airport. The city of Lubeck lies approximately 41 mi. northeast of Hamburg near the Baltic coast. The agreement is subject to successful completion of a conditional purchase deal between the city, which owns the airfield, and Infratil, an international airport and infrastructure investor that owns Wellington International and Glasgow Prestwick.
IAE and Spirit Airlines signed a 15-year fleet hour agreement covering the V2500s powering the airline's A320s. The deal also covers the 15 aircraft Spirit will purchase and the 20 it will take on lease in the future.
Air New Zealand Engineering Services signed a three-year maintenance contract with Virgin Blue, effective immediately. Under the deal, ANZES will perform heavy maintenance support for the carrier's fleet of 48 737NGs. It previously supported Virgin Blue's maintenance needs on an annual basis.
Air France-KLM Group currently has no plans to renew its regional fleet, it said in a statement in response to a report in Les Echos , which claimed it was considering an order for 80 new regional jets from either Embraer or Bombardier. According to the newspaper, it would be a combined order for several of the group's carriers including Regional, Brit Air and Cityjet.
Iberia said yesterday that it expects to book a pre-tax gain of €600 million ($775 million) through the sale of its Class A shares in Amadeus Global Travel Distribution. After the offer, Iberia will maintain an "indirect stake" in Amadeus representing a maximum of 11.44% through its investment in WAM Acquisitions, a newly incorporated company created as the vehicle for the Amadeus offering. Its investment in WAM will be €102 million.
In response to speculation that British Airways will be a launch customer for the 747ADV, CEO Rod Eddington told ATWOnline yesterday that "the most pressing aircraft acquisition project for BA is the 767 replacement." According to Eddington, BA currently is looking at both the A350 and 787. It was one of the airlines heavily involved in the evolution of the 7E7/787 from the Sonic Cruiser program, with Eddington arguing that efficiency was far better than speed.
Frontier Airlines announced yesterday that it has completed its four-year transition to an all-Airbus fleet. It estimated cost savings, primarily from efficiencies in maintenance and training activities, at approximately $11 million on an annual basis. It began the transition from a fleet of 737-300s and dash 200s when it signed a letter of intent in October 1999 to purchase 11 new Airbus aircraft with options for an additional nine. Shortly thereafter, it signed an LOI for an additional 15 leased A319s and in August 2003 it placed an order for 29 A319s and A318s.
Aided by its fuel hedges, Southwest Airlines reported a $76 million net income for the first quarter ended March 31, nearly tripling the $26 million earned in the year-ago period. However, 2004 first-quarter results included $18 million in pre-tax operating expenses related to the consolidation of reservations operations. "Considering the many challenges our industry continues to face, we are grateful to report first-quarter earnings of $76 million," CEO Gary Kelly said.
KLM and Portugalia Airlines will start codesharing next week. Under the agreement, KLM will add its code to PGA's daily service between Amsterdam and Oporto and PGA will codeshare on KLM's scheduled service between Lisbon and Amsterdam. The Portuguese carrier already operates under codeshare agreements with Air France and Air Europa.
India and China signed an MOU, which went into effect Monday, to expand capacity between the two countries. The MOU covers the phased introduction of an increase in passenger services and "open skies" cargo rights with a range of unlimited third, fourth and fifth freedom traffic rights for dedicated cargo operations. It also covers a range of other issues including codesharing and simplification of visa protocols. In addition, both countries agreed to examine a feasibility study on a Free Trade Area Agreement.
A war of words has erupted between United Airlines management and the union representing its cabin staff and it appears as though relations only will get worse.
Northwest Airlines will begin one daily nonstop flight between Minneapolis/St. Paul and Marquette, Mich., June 8. The new flight will be operated by Northwest Airlink partner Mesaba Airlines using a Saab 340.
Air France and KLM are raising their fuel surcharges. The fuel levy on Air France tickets issued in France will rise by €1 ($1.29) on domestic flights, €2 on medium-haul flights and €8 on long-haul flights from April 20. KLM is adding €6 on long-haul flights and €3 on European flights effective April 15.
Finnair flew 1.59 billion RPKs in March, up 12.1% over the year-ago period. Capacity climbed 8.5% to 2.15 billion ASKs and load factor gained 2.3 points to 74.1%. For the three months ended March 31, RPKs increased 7.4% to 4.32 billion, ASKs rose 5.3% to 5.89 billion and load factor grew 2 points to 73.4%.
BAE Systems will provide actuator control electronics units for 777s through 2012 under an agreement with Boeing. BAE has supplied this type of equipment to Boeing since 1990 under a contract that was set to expire at year end.
Global ePoint received an order from Lufthansa for additional cockpit door surveillance systems manufactured by Global's Airworks Division for installation on seven 737-300s, two 737-500s, three A330s and one A340, with two additional systems to be installed in flight simulators for the A330 and A340.
American Eagle will begin daily flights between Cleveland and New York JFK using 50-seat ERJ-145s; two daily nonstop flights between Mobile and Dallas/Ft. Worth using 44-seat ERJ-140s; two daily nonstop flights between Colorado Springs and Chicago O'Hare using 70-seat CRJ-700s, and daily nonstop flights between O'Hare and Nassau using CRJ-700s. All new flights will begin June 9.
Qantas said it will install CCTV surveillance equipment in baggage handling areas at terminals throughout Australia that are either owned or solely leased by the airline. CEO Geoff Dixon said the carrier also will place surveillance equipment in the holds of some of its aircraft and at other airport locations and increase "loss prevention measures," including increased inspections of staff entering and leaving the workplace. He said the decision to upgrade security measures was a result of "heightened public concern around security of baggage."
Continental Airlines will begin daily nonstop flights between Los Angeles and Queretaro June 9 and will launch four weekly nonstop flights between Los Angeles and Durango June 9, increasing to daily July 2. Continental Express will operate both routes with ERJ-145s.
