Bombardier's warnings of a potential slowdown are now reality, with the airframer cutting production of its larger CRJ-700/900 planes from a build rate of one plane per three days to one aircraft per five. During the company's last quarterly earnings call, executives said Bombardier's goal was to sustain a 75 plane-per-year build rate, but admitted hitting that target would be a challenge (DAILY, Aug. 31, 2006), even if new orders did materialize. Earlier this month, Northwest ordered 36 CRJ-900s.
Austrian Airlines Group returned to profitability in the third quarter, posting an even higher net profit for the period than most analysts expected. The airline's net income was EUR34.9 million (US$43.8 million), compared with a EUR21.5 million net loss a year earlier. The company attributed the turnaround mainly to higher passenger volumes and much-improved average yields. New CEO Alfred Oetsch said that Austrian will not post a profit for fiscal 2006 but aims to return to black figures in 2007.
Malaysia and China signed an enhanced air services agreement that will immediately boost the number of passenger flights between the two countries from 25 to 125 weekly with no restriction on aircraft type. The agreement also allows Malaysian cargo carriers to operate flights to selected points in Central and West Asia, Europe and the U.S., effective April 2007. MAS Kargo and Transmile Air are currently the two Malaysian cargo airlines operating to China.
By: Steve Lott, Aviation Daily The growth of U.S. regional airlines has come to screeching halt in the past year, and without some significant cost reductions, some regional carriers may lose the cost advantage they've held over their network partners.
Alaska Air Group swung to a $17.4 million third-quarter loss yesterday, compared with a $90.2 million profit last year largely due to several one-time charges, and executives acknowledged that unit revenue growth slowed in recent months. The results include previously announced charges related to the buyout of five MD-80 leases and a voluntary severance program in connection with a new labor contract. Excluding the unusual charges, the company would have reported a $77.9 million profit, up nearly 9% from last year.
Delta will push back the launch of its new Salt Lake City-Mazatlan and Salt Lake City-San Jose del Cabo services to around Feb. 10 pending U.S. Transportation Dept. approval. SkyWest, which will operate the flights under the Delta Connection banner, has had difficulty securing approval from the Mexican government for the flights. Salt Lake City-Mazatlan was to start on Oct. 1 and SLC-Los Cabos on Dec. 1, and the carrier needs dormancy waivers for the two exemptions [OST-2006-25495].
Virgin Blue's push to corral a larger number of business travelers appears to be gaining traction as the airline's profits for the nine months ending June 30 rose 12%. The purchase of the carrier's majority stakeholder Patrick Corp. by Toll Holdings led Virgin Blue to move the reporting of its yearend results from September to June to match Toll's financial calendar.
Ryanair will cut jobs at Aer Lingus, if its bid to takeover the carrier succeeds (DAILY, Oct. 6). The low-fare carrier said in its offer document it plans to reduce catering, ground-handling and sales staff to finance fare reductions. It also wants to improve productivity of flight crew and mechanics but remained unspecific about the number of jobs to be cut.
Boeing recently completed the first opening and closing of the tail section of its expanded 747 Large Cargo Freighter. The swing tail is one of the most important new features of the LCF, allowing sections of the 787 to be loaded into the aircraft. Since its first flight, the LCF has completed 55 flight hours and 270 hours of ground tests.
An Embraer official told investigators looking into last month's GOL Airlines crash (DAILY, Oct. 3) that the Legacy Jet now figuring prominently in the investigation passed tests meant to uncover problems in the aircraft's safety equipment, further fueling speculation that pilot error -- specifically, that of the Legacy jet's U.S. pilots -- caused the crash.
IATA yesterday reported that 25 of its 29 member airlines in sub-Saharan Africa are in the IATA Operational Safety Audit process in preparation for the 2008 deadline, when IOSA becomes a condition of IATA membership.
Mexican airport operator Grupo Aeroportuario del Sureste (ASUR) yesterday posted a sharp 53% drop in third-quarter profits as revenues slipped and costs rose by more than 13%.
Mexico's low-cost carriers accounted for 19% of the domestic market share between January and August, and in the past two months increased it by an additional 5%. "This is a remarkable and unprecedented accomplishment," said Dept. of Transportation official Rodolfo Salgado-Leyva told El Financiero. "And it has been done without jeopardizing other airlines because LCCs have engineered their own speedy growth in spite of more stringent airfare policies," he added.
Saab Aerotech signed a component deal with LOT Polish Airlines covering 50-seat Embraer ERJ-145s that transitions from ad hoc to total support, including engineering services. Saab pegged the value of the contract at SEK30 million (US$4 million).
By Kevin Mitchell, Chairman, Business Travel Coalition The U.S. Dept. of Transportation faces a decision that will benefit either passengers or a duopoly. This federal agency has to determine in the next few months which of four U.S. airlines will be awarded a highly coveted daily frequency to China. Increased competition from new competitors is paramount to achieving lower fares for business travelers and incentives for improved airline customer service.
All Nippon Airways (ANA) and InterContinental Hotels Group yesterday signed a joint-venture deal to create a hotel operating company in Japan, which is the world's second-largest hotel market. The joint venture will be named IHG ANA Hotels Group Japan and will officially launch Dec. 1. ANA already has its own brand of hotels but will sign new management contracts with the joint venture for its 13 owned and leased hotels, which have nearly 5,000 rooms.
Lloyd Aereo Boliviano CEO Franklin Taendler as part of the carrier's relaunch plan (DAILY, Oct. 19) is meeting with Pegasus Aviation to renegotiate unpaid leasing fees on two Boeing 767-300ERs that accrued while former President Ernesto Asbun controlled the carrier. Originally estimated at $29 million, the real value of the debt should be cut to $24 million after all contracts and relevant documents are reviewed and updated, union leader Gonzalo Viscarra told Los Tiempos.
The National Air Traffic Controllers Association is urging FAA to keep weather specialists at all its en route ATC centers nationwide. According to NATCA, FAA is considering eliminating on-site meteorologist positions from the 21 centers, and instead contract with a commercial weather company to provide meteorological service from one remote location.
The Minneapolis/St. Paul Airport last week decided to drop plans for a pilot program aimed at preventing travelers from being denied taxi service because they had possession of alcoholic beverages.
Asiana this week plans to unveil a new livery for its aircraft, sources told The DAILY in Seoul. There are already hints of the new logo and branding on billboards in its hometown, but the carrier plans to unveil one of its 777s soon with the more colorful livery. The carrier has had the same branding for about eight years, the airline says.
Caribbean Airlines, the replacement for BWIA West Indies Airways, last week unveiled its branding and set Jan. 1 as its official launch. "The livery and logo of Caribbean Airlines centers around the hummingbird," said BWIA CEO Peter Davies. "The hummingbird is found only in the New World, and early references to Trinidad are as the land of the hummingbird." The government of the Republic of Trinidad and Tobago decided last month to shutter the 66-year old BWIA and start from scratch by forming a new carrier to serve the islands (DAILY, Sept. 12).
