Alaska Airlines this week expects to report a third-quarter profit, excluding several charges the carrier will record. The airline is buying out five MD-80s under its fleet transition plan and is reducing the value of its fuel hedge portfolio because of lower oil prices. The airline will also record voluntary severance for IAM members.
The Transportation Security Administration (TSA) still needs to resolve some problems uncovered in program to provide biometric identification cards to transport workers before it begins issuing them, a congressional study says.
Raytheon, Northrop Grumman and L-3 Communications will split $7.4 million in contract awards to study technology alternatives to laser jammer countermeasures against shoulder-fired missile attacks on commercial aircraft, according to the Dept. of Homeland Security.
Data retrieved from the flight and cockpit recorders of the Legacy Jet that was clipped by a GOL Boeing 737-700 airliner that later crashed into the Brazilian jungle (DAILY, Oct. 3) show the transponder indicating the Legacy's position was not functioning at the time of collision, Brazilian Defense Minister Waldir Piris said.
The bankruptcy court judge overseeing Mesaba's Chapter 11 case should rule today on management's request for an injunction to prevent strikes by its labor groups and when it can impose concessions on pilots, mechanics and flight attendants. Management and labor have been negotiating intensely to reach consensual deals. Mesaba needs breaks in its labor contracts to access $24 million in DIP financing.
As Delta evaluates bids from regionals for flying up to 143 RJs, Mesa subsidiary Freedom Air continues to expand its flying for the airline under deals reached in 2005 and this year. Mesa CEO Jonathan Ornstein tells employees the 24th and 25th lines of Embraer ERJ-145 flying recently came on line. Two more lines of Dash 8 turboprop flying at JFK recently joined six lines of existing flights. Delta is expected to announce the structure of its regional network next month.
German construction and investment giant Hochtief last week confirmed it is negotiating to buy BAA's majority stake in Budapest Airport. A consortium led by Hochtief's airport subsidiary has signed a memorandum of understanding with BAA for the "potential acquisition" of BAA's Budapest stake, Hochtief said. Hochtief has a 50% share in the consortium, and the other members are Montreal-based Caisse de Depot et Placement du Quebec, and Frankfurt-based KfW.
Appointed Suzanne Stephensen director-people programs and recruitment, Ryan Quinlan director-employee relations, compensation and performance and Amber Hunter director-corporate communications, development and marketing.
Finnair's international flights were almost entirely grounded as a cabin staff went on strike Oct. 19 and 20 to protest the airline's plans to hire personnel through its Estonian subsidiary, Aero, where salaries are 30% lower.
Asmara Air, a new Malaysian airline offering charter and scheduled services, will start services at the end of the year. Asmara Air is 76% owned by Semarak Imej, while D'Fameux Corp. Malaysia holds 12%. Two local companies hold a 6% stake, as do Hilmy Othman and Jamaludin Mohd Jaan.
Continental expects to phase out all Boeing 737-300s by 2010, executives say. In the interim, some of the -300s will have winglets installed to reduce fuel consumption and add value for resale. The carrier plans to keep its -500s "substantially longer" than the -300s.
Singapore-based ST Aerospace's recently acquired subsidiary SAS Component won new fleet support business from U.K. wet-lease company Flightline. SAS's "Free2Fly" program supplies components on an exchange basis with loan and aircraft-on-ground services. ST Aero valued the three-year deal at S$3.9 million (US$2.4 million).
Continental yesterday posted a third-quarter net profit of $237 million, helped by 17% growth in passenger revenue and an easing in fuel prices. The profit was a significant turnaround from last year's third quarter, when Continental achieved a $61 million profit. Analysts expect that Continental will record a full-year profit, only the second since 2000. The airline also managed a net profit of $38 million in 2003, although that number was deceptive because without special items Continental would have recorded a $209 million loss.
SkyEurope is offering flights from Dublin to the Bulgarian capital Sofia through a connection in Bratislava, starting Oct. 30. Passengers will have to recheck baggage at Bratislava. The flight is part of SkyEurope's "SkyLink" product, which offers discounted fares on connecting flights.
Current ATA Executive VP and Chief Operating Officer Subodh Karnik will be elevated to president and CEO in January, taking the reins from John Dennison, who will remain as the carrier's chairman of the board. Karnik, a former Delta executive, joined ATA in May 2005.
Qantas CEO Geoff Dixon will become the next chairman of the Oneworld alliance, with effect from the alliance's meeting next week in Los Angeles. Dixon replaces Iberia CEO Fernando Conte, who held the position for more than two years. Dixon will oversee a major expansion for Oneworld, with Japan Airlines, Malev and Royal Jordanian all expected to join. -AS
Copa Airlines subsidiary AeroRepublica this week signed a deal with GE Commercial Aviation Services to lease an Embraer 190 aircraft to be delivered in the fourth quarter 2007.
