US Airways yesterday posted a $64 million first-quarter profit, including special gains and charges, and executives are growing bullish about results for the full year, predicting a profit even if one-time transition costs are included.
Comair is making a second appeal to the bankruptcy court to void its flight attendant contract, warning that its concession agreements with other labor groups could be jeopardy. Late last month, the court overseeing the bankruptcy of Comair parent Delta ruled that the $8.9 million in concessions management needs was too high, and told both sides to resume negotiations, which are scheduled this week.
The Transport Workers Union and the International Association of Machinists and Aerospace Workers yesterday decided that IAM will represent the 8,000 active and furloughed fleet service workers at the merged US Airways.
Europe's airlines lost 15.2 bags per 1,000 passengers in the first quarter of 2006, a slight increase from 14.7 bags lost in the same quarter last year, according to statistics released by the Association of European Airlines' (AEA) consumer report. The information was compiled from 26 European carriers. "The great majority of missing bags are traced and delivered to their owners with a minimum of delay," said the report.
Monday's Greater Washington Aviation Open raised $125.000 for the Corporate Angel Network. Nearly 300 people took part in the golf and tennis event at the Golf Club at Lansdowne in Ashburn, Va. In 18 years, GWAO has raised more than $1 milliion for CAN, which provides cancer patients free transportation on corporate aircraft to get to and from medical treatments.
Despite intense competition and the sharp rise in jet fuel prices, Singapore Airlines recorded a profit of S$1.24 billion (US$791 million) for the year ended March 31, down 8.3% over the previous year. Contributions from the airline's three major subsidiaries to the profit were 14.3% from SIA Cargo, 15.2% from Singapore Airport Terminal Services and SIA Engineering Co 11.1%.
Mendoza-based Argentine startup Silver Sky will launch operations late next month, initially linking Mendoza with Buenos Aires and later expanding service to Cordoba, Neuquen, Comodoro Rivadavia, Rosario, Rio Cuarto and Villa Mercedes. Local investor Ricardo Lasmartres, who is underwriting the project, said negotiations are progressing on the carrier's leased fleet but did not reveal details. -LZ
FAA has granted approval for extended range twin-engine operations for most of Airbus's A320 family, and Airbus expects the same approval to follow soon for the A318.
Low-cost cargo carrier Southern Air is on track to introduce two new all-cargo services to Hong Kong on Aug. 1 after winning exemption authority from the U.S. Transportation Dept. The carrier plans to use its Boeing 747 freighters to operate two weekly Chicago-Anchorage-Hong Kong flights and a weekly Los Angeles-Anchorage-Hong Kong service [OST-2006-24703].
Aeromexico will move to have its affiliate Aerolitoral operate the La Paz-Los Angeles route in place of its mainline service, as it believes "the market can be best served on an economic basis with small aircraft." Aerolitoral's proposed service would operate twice weekly with regional jets configured for fewer than 60 seats. Aeromexico, which won the authority in late March, currently operates the route twice weekly with 109-seat MD-87s. In April, it flew the route three times weekly with 121-seat Boeing 737s.
The first Airbus A380 destined to be delivered to Singapore Airlines by yearend took its first test flight this week. The aircraft took off from Toulouse Blagnac Airport and after a 2 hour 15 minute flight returned to the same airport. The test flight is part of a series of systems and operational tests that all new aircraft undergo after they are rolled out of the final assembly line, the company said. SIA's A380 will first fly on the "Kangaroo route" from London to Singapore and Sydney. -SL
EasyJet CEO Andrew Harrison says he really doesn't see how British Airways can offer sustainable low fares without a huge reduction in its cost base. He concludes that BA's recent restructuring of its short-haul fares is a "marketing gimmick."
Venezuela's recent upgrading from Category 2 to 1 in the U.S. FAA's IASA program (DAILY, April 26) is encouraging civil aviation authorities to further develop and refine the country's air safety and navigation infrastructure and systems, reports air transport regulator INAC.
The three Spaniards who own Aerolineas Argentinas met with Argentine President Nestor Kirchner to discuss the carrier's labor problems, stressing they are ready "to remain in Argentina until the labor crisis is solved," while pushing for government aid in the form of more flexible airfares (DAILY, May 9).
FedEx Express won from the U.S. Transportation Dept. authority to exercise fifth-freedom traffic rights between Hong Kong and Delhi on one of its Hong Kong-Paris frequencies (DAILY, May 4). The DAILY in error reported that the cargo carrier was seeking a new weekly Hong Kong-Delhi cargo frequency.
MRO specialist SR Technics is "well on track" for an initial public offering (IPO) before the end of the year, said Burkhard Brinkmann, a director for SR Technics' majority owner 3i Group. The company is Europe's largest independent MRO provider.
Copa Airlines last week unveiled plans to start flights to Maracaibo, Venezuela with six services per week, starting July 24. Maracaibo is Venezuela's second-largest city and the capital of the state of Zulia, "the most important oil-producing state," the airline said. The Panama-Maracaibo route will flown with an Embraer 190 with 94 passengers. The new flight to Maracaibo is in addition to two daily flights Copa offers between Panama and Caracas. -SL
United yesterday reported a loss of $306 million in the first quarter -- excluding one-time reorganization benefits -- and vowed to make major cost cuts beyond those already outlined in its restructuring plan.
American's April operating results, released last week, sounded a familiar refrain of shrinking domestic capacity offset by increases in international capacity. The airline's April load factor increased 4.3 points to 81.7%, with traffic up 5.5% and capacity essentially flat. Domestic traffic increased 3.3% with capacity down 2.3%, and international traffic grew 10.1% on a capacity hike of 4.4%. American Eagle reported traffic up 17.1%, capacity increasing 9.9%, and load factor rising 4.6 points to 74.4%. -AS
