B/E Aerospace's commercial aircraft business lifted the company's fourth-quarter and full-year profits, but operating earnings in its business jet sector grew a staggering 600%. That sector logged operating earnings of $2.1 million for the fourth quarter of 2005, up from $300,000 a year ago. B/E cited higher revenues tagged to a boost in production volumes and the general rebound in business aviation as reasons for the rise.
American could probably borrow up to $1 billion against its frequent flyer program if it wanted to, and could gain up to $2 billion if it were able to sell the program, a leading Wall St. analyst says. Although American has so far not signaled an intention to turn its frequent flyer program in cash, it remains an attractive "rainy day option," the analyst says.
JetBlue expects strong results from its planned Orlando-Puerto Rico service partly because Orlando has the second-largest Puerto Rican community in the U.S., says CEO David Neeleman. "We also have a great presence in Puerto Rico," he tells analysts. "With our cost and product, it makes a lot of sense.
CanJet plans to launch daily flights between Deer Lake and Toronto June 26, using a Boeing 737. The airline also plans to launch a new 8 a.m. Halifax-St. John's flight, as well as an 8 a.m. flight on the reverse leg June 5. -LR
Aloha Airlines on Friday won bankruptcy court approval on the changes it made to its reorganization plan, clearing the final hurdle before emerging from Chapter 11. The carrier is now expected to exit bankruptcy in two weeks, but the green light from the judge last week did not come without another round of last-minute drama. For the second time, the Pension Benefit Guaranty Corp. filed in opposition to Aloha's plan, telling the court that the carrier made too many changes to the tentative deal the two sides reached in late December.
The U.S. Dept. of Transportation is willing to consider mandatory code shares between airlines providing Essential Air Service and larger airlines if EAS carriers propose partnerships that quell objections posed by airlines and associations to the government-mandated tie-ups. DOT last year asked for comments on proposed mandatory code shares, noting the program was required by Congress in the Vision 100 aviation reauthorization act (DAILY, Sept. 14, 2005).
The U.S. hopes the European Union council of ministers will vote on the U.S.-EU open skies-deal at its June meeting, and "with a little luck and hard work," the deal could be signed by the end of June, predicts John Byerly, State Dept. deputy assistant secretary. A lot hinges on the Transportation Dept.'s final version of its foreign ownership proposal, to be released next month (DAILY, Jan. 25).
Brazilian carrier TAM on March 18 will start daily service between Sao Paulo Guarulhas Airport and Lima Jorge Chavez Airport, a route on which it will also code share with TACA Peru. TAM will use Airbus A320s for the service and charge introductory fares that start at $659 roundtrip.
Last month's wildcat strikes cost Alitalia EUR60 to EUR80 million (US$70 million-$100 million) in lost sales, Chairman Giancarlo Cimoli said at a parliamentary hearing last week. Cimoli stressed that the figure does not take into account the extreme weather conditions that affected operations in Northern Italy.
To list an event, send information in calendar format to Ingrid Lee at [email protected] (Bold type indicates new calendar listing in PDF format.) FEB. 15-17 -- ACI-NA Finance Symposium, The Roosevelt Hotel, New York, N.Y., 202-293-3028, email [email protected] FEB. 18 -- Aircraft Rescue Firefighting for Structural Firefighters Seminar, Cheswold Fire Company, Cheswold, Del., 914-962-5185, www.aviationjournal.com
Emirates will launch flights to Bogota before yearend, confirmed Colombian civil aviation department (Aerocivil) CEO Fernando Sanclemente, as part of an agreement signed between Colombia and the United Arab Emirates. The agreement authorizes Emirates to operate six weekly passenger frequencies with any type of aircraft between Bogota and Dubai, with service to start before yearend. Each designated airline also may operate up to six weekly cargo frequencies. Aerocivil will soon name the Colombian carriers to operate the new route.
Continental saw only a slight load factor increase in January and reported modest unit revenue growth of about 5%. Consolidated load factor increased 0.5 percentage points to 75.9%, and mainline loads grew 0.2 points to 76.4%. Domestic mainline loads were up 2.2 points to 78.3%, while international loads declined 2.2 points to 74.2%. Consolidated unit revenue grew 4.5%-5.5%, and mainline unit revenue rose 3%-4%. In December, consolidated unit revenue gained 7.5% and mainline unit revenue 6%.
Northwest's pilots union on Friday decided to take a strike vote of its members, and the dispute could come to a head this week, when the judge decides on management's request to impose new contract terms. The exact timing of the ballot was left to the discretion of Master Executive Council Chairman Mark McClain. The 1113(c) hearing, which opened Jan. 17, is expected to finish today. If the carrier's Air Line Pilots Association unit and management can't reach a deal, the judge will decide whether to reject the pilot contract by Feb. 16.
British Airways last week reported its December quarter pretax profit climbed 8.6% to GBP164 million (US$289 million), with cost increases almost off-setting a healthy revenue gain. Revenue for the third fiscal quarter was up 8.8%, driven partly by higher premium traffic, while costs increased 7.3%. Passenger yield dropped 1.5%, load factor rose 1.3 percentage points to 74.1%, and traffic grew 5.8% on a 3.9% capacity increase.
Fifty-four furloughed Comair pilots will soon return to work, ALPA leaders tell the union's airline members. About 23 pilots still remain on involuntary furlough, and 150 are on voluntary furlough. ALPA says it is determined to bring "every furloughed pilot back to work as soon as possible." Comair's pilots recently approved concessions to save the carrier about $17 million annually.
AVIATION WEEK Conferences & Exhibitions You can now register online for Aviation Week events. Go to www.AviationNow.com/conferences or contact Lydia Janow, 212-904-3225 or 800-240-7645 ext. 5 (U.S. and Canada only) APRIL 5-6 -- U.S. Defense Budgets and Programs Conference, Arlington, Va. APRIL 25-26 -- MRO Military Conference, Phoenix APRIL 25-26 -- MRO USA Conference & Exhibition 2006, Phoenix MAY 17-18 -- MRO Military Europe, Berlin SEPT. 19-21 -- MRO Asia, Xiamen, China
FAA says it has agreed to a request from the Federal Mediation and Conciliation Service for a media blackout regarding controller contract talks. Talks with the National Air Traffic Controllers Association on this issue are continuing, but the union would not comment on the progress of the blackout talks.
Jakarta's Soekarno-Hatta International Airport will be at expanded at a cost of IDR3.5 trillion (US$371 million). A third passenger terminal will be built and the apron expanded as part of the work. The upgrades will improve passenger handling capacity by 10 million to 20 million. Airport operator PT Angkasa Pura II, a government agency, plans to fund the project through loans from the government and local banks. Agency President Edie Haryoto said construction will start in the fourth quarter, with work to be completed in late 2008.
United is the new tenant for 35 gates at Dulles airport's Concourse A after FLYi abandoned them last month. A bankruptcy court approved United's taking over the leases last week.
Virgin Atlantic will add a sixth daily New York frequency on July 1, the airline said last week. The carrier will use an Airbus A340-600 on the route, offering 200,000 additional seats per year.
The first Arab civil aviation security conference is scheduled to start this week in the United Arab Emirates. Participants from more than a dozen countries, including Algeria, Egypt, Lebanon, Kuwait and Saudi Arabia, are expected at the gathering, which runs Feb. 7-9 in Abu Dhabi.
