Singapore’s Changi Airport, challenged by changes in airlines’ long-haul strategies and its hub carrier’s stagnation, saw key metrics decline in September with a 0.5% reduction in passenger numbers and a 5% drop in aircraft movements compared to year-ago figures. Changi Airport saw 4.25 million passengers and just over 27,020 aircraft movements, down from 4.65 million passengers and 28,360 movements in August 2014. Cargo volumes, which saw upticks at other cargo hubs in the region, including Hong Kong, slipped 2.7%, to 147,800 tons.
XIAN, China—By mid-2015, Avic plans to begin detail design of the MA700, the first all-new turboprop airliner for more than 30 years, with a target to fly it two years later. The aircraft is due to enter service in 2019 as a larger alternative to the ATR 72 and Bombardier Q40, featuring new propulsion technology. Pratt & Whitney Canada is promising that its PW150C engine, when combined with the highly efficient Dowty R504 propeller, will “provide significant fuel-burn economics for the new aircraft.”
Qantas has struck a setback in its attempt to impose an 18-month wage freeze on all employee groups as its short-haul pilots rejected a new contract including the clause. Of the 554 pilots that voted on contract terms, 79% opposed the airline’s four-year offer. Qantas short-haul pilots are represented by the Australian and International Pilots Association (AIPA).
The U.S. Department of Transportation (DOT) assessed Air Canada Rouge with a $90,000 penalty late last month after determining the carrier violated a five-year old rule on tarmac delays.
Southwest Airlines says its merger with AirTran Airways is on target for year-end completion and that it has already integrated the frequent-flyer and booking programs. In addition, the Dallas-based carrier has fully taken over all of AirTran’s legacy-international routes and is operating them with Southwest aircraft. The final routes to be integrated — to Punta Cana, Dominican Republic and Mexico City — shifted to Southwest aircraft over the weekend.
Singapore Airlines’ (SIA) regional offshoot, SilkAir, will start daily flights to Bali’s Denpasar International from the start of December 2014, in time for the European winter holiday season. The SilkAir flights will complement SIA’s existing flight shedules to the tourist island destination’s newly revamped airport, but will offer point to point schedules rather than the parent carrier’s existing “last leg” options. SilkAir said the move was part of a plan to “synergize the networks of both airlines.”
Financially struggling carrier Air Berlin is taking more-drastic action in its efforts to turn around by replacing CEO Wolfgang Prock-Schauer with a veteran German airline executive, Stefan Pichler.
Ryanair will expand winter capacity by 16% compared to last year as well as increase frequencies on several domestic and international routes as it aims to gain market share from both full-service and low-cost competitors and raise passenger numbers by 9% during the fiscal year.
For a complete list of Aviation Week’s upcoming events, and to register, visit www.aviationweek.com/events Nov. 4-6—MRO Asia, Singapore EXPO Convention and Exhibition Centre, Singapore Nov. 19-20—A&D Programs, Wigwam Resort, Liltchfield Park, Ariz. Jan 13-14, 2015—MRO Latin America, Buenos Aires, Argentina Feb. 2-3, 2015—MRO Middle East, Dubai World Trade Center, Dubai, UAE
While Japan Airlines saw its profits slip slightly in the six months through September, falling fuel prices have prompted the carrier to raise its profitability guidance for its full fiscal year. JAL reported net income of ¥80.3 billion ($719.4 million) for its fiscal 2014 first half, down by 2% from the same period in the previous year. This contrasted with rival All Nippon Airways, which a day earlier announced its net profit rose 78% to ¥35.7 billion for the six-month period.
All Nippon Airways (ANA) recorded a healthy improvement in profits for the six months through September, as the airline’s rapid expansion in international markets provided a significant revenue boost. The carrier’s parent, ANA Holdings, reported a net profit of ¥35.7 billion ($327.3 million) for its fiscal 2014 first half, up 78.2% from the profit in the same period a year earlier. Operating revenue increased 9.1% to ¥854.8 billion, largely due to ANA’s international growth strategy.
Major U.S. airline strategies such as strict capacity discipline and growth through upgauging rather than adding aircraft or flights continues to create opportunities for ultra-low-cost carriers (ULCCs). “Airports are generally thirsty for more volume right now,” Spirit Airlines president and CEO Ben Baldanza said. “There are obviously some exceptions of airports that are still facility-constrained, but most airports . . . have a lot of space in them.”
Saying that bookings “did not meet expectations,” Frontier Airlines will not launch two new routes next month to the Bahamas as scheduled, an airline spokesman confirmed.
Hawaiian Airlines has made clear that it will not sit on the sidelines while American Airlines and Delta Air Lines duke it out over access to Tokyo’s close-in Haneda airport.
Australia’s competition watchdog has failed in its attempt to force legal penalties on Air New Zealand and Garuda Indonesia as part of a broader action against airlines over alleged collusion in freight pricing. An Australian federal court ruled in favor of Air New Zealand and Garuda, which were the only two of several carriers still fighting the allegations. Other airlines settled and agreed to pay hefty fines.
Mark Skidmore, a former head of Australia’s Royal Air Force and test pilot for Raytheon, has been tapped to lead the Civil Aviation Safety Authority (CASA) as its new director of Aviation Safety. The appointment, which is for a five-year term, comes as CASA is working to respond to the Australian government’s independent review of the country’s civil aviation regulations.
n Etihad Airways plan to take 49% shareholding in Alitalia will dilute Air France’s stake in the Italian carrier to less than 1%, according to Air France-KLM CFO Pierre-François Riolacci. Speaking on the group’s third-quarter results conference call on Wednesday, Riolacci said Air France-KLM will become a “very-definite minority shareholder” in Alitalia after the Etihad transaction. Air France-KLM was Alitalia’s primary shareholder, with a 25% stake.
International Airlines Group (IAG) continues to outperform its legacy peers and has increased its full-year earnings guidance on the back of a 30% hike in third-quarter operating profit. IAG—which comprises British Airways (BA), Iberia and low-cost carrier (LCC) Vueling—said on Friday it now expects to increase this year’s operating profit by between €550 million ($436.2 million) and €600 million from the €770 million it made last year, upping its previous forecast for an increase of at least €500 million.
