Singapore Airlines' net profit sank 14.6% to S$397 million, as record revenues could not offset the hike in fuel prices. The carrier posted nearly $3.6 billion in revenue for the fiscal third quarter, a new record. The 11.1% in revenue was attributed to higher traffic and yields for passenger and cargo operations. Operating profit fell 9.1% to S$38 million as SIA paid 49% more in fuel. Executives noted fuel accounted for 37% of all expenses, up from 28% in the same quarter a year ago. Operating profit also fell because of foreign exchange rate changes.
India's prime minister held talks with the leaders of the airport workers group in an attempt to end a strike that started Jan. 31. The workers are protesting plans to privatize airports in Bombay and New Delhi. The strike, by about 22,000 airport workers, mostly cleaners and administrators, hasn't affected flight operations, the Associated Press reported; however, it forced airports to run on emergency electricity generators, without water or garbage collection.
Aerolineas Argentinas will proceed with a $530 million fleet renewal program that will see the carrier take delivery five Boeing 737-500s in February to replace older models in domestic and regional routes. AR will also gain two Airbus 310s to beef up service from Buenos Aires (Ezeiza) to Mexico City and Miami and a fourth 747-400 for the Buenos Aires-Madrid route. Most of these aircraft were acquired through leasing with options to buy. -LZ
AirTran will suspend its Akron-Las Vegas service May 7, spurred by fuel prices that shot up to nearly $70 a barrel. The carrier launched the route last August, offering flights on Thursday and Sunday with Boeing 737s. "With fuel costs at the rate they have gone to, we had to make a tough decision to eliminate the route," said an airline spokeswoman.
Reportable delays are down 3.9% at the top 35 airports in the 2005 calendar year, and average delay time is down by 1.64 minutes, FAA says. Mild weather from April to June last year contributed to the drop. Preliminary figures show that systemwide traffic volume is down 0.5%, and up 0.86% at the top 35 airports.
Southwest says it's boosted capacity at Chicago Midway more than 60% since the third quarter 2004, and it does not plan to slow its growth in the market. U.S. Transportation Dept. data show the carrier's highest-yield market from Midway in the third quarter of 2005 was Indianapolis at 24.52 cents, while the lowest was Oakland at 5.26 cents.
More lawmakers and business leaders in Peru increasingly are coming out in favor of the privatization of Pisco Airport, one of three remaining under air force control (DAILY, Jan. 27). Provincial entrepreneur Samuel Katz argues that Pisco is a major cog in moving Peru's southbound agricultural and wine exports. He called on the air force not to halt the healthy trend toward decentralization and release it so it can be bid out with other airports later in the year.
Appointed Ian Massey, executive VP at Republic Financial Corp., to its board. Massey will serve as an independent director and will sit on the audit committee and the nominating and corporate governance committee.
Jetstar last week unveiled the "Puff Plane," a Boeing 717 fully covered in a Domino's Pizza advertisement for the chain's new pizza, which features a puff pastry base. The plane will land at eight airports and carry about 800 passengers each day, as well as withstand flying at 31,000 feet altitude. Jetstar launched a similar arrangement with Hertz last year.
Venezuela's LaGuaira Chamber of Commerce asked the government to release as soon as possible the timetable and detailed construction plans for a new permanent bridge and temporary segment on the Costa Azul coastal highway, steps that may ease congestion on the roads between Caracas and Maiquetia (DAILY, Jan. 17). Information on current relief measures would help reduce dissatisfaction expressed by airliners, exporters and exporters and other area business people directly or indirectly jeopardized by the crisis, the chamber said.
Aircraft lessor AerCap, formerly known as debis AirFinance, last week formed a joint venture with Kuwait-based LoadAir for the acquisition, management and marketing of its order of 70 Airbus A320 family aircraft.
The pilots union at top Bolivian carrier Lloyd Aereo Boliviano (LAB) went on strike on Feb. 2 but without the support of other employee unions. The carrier was forced to suspend all domestic and international flights until further notice. Pilots are demanding immediate payment of retirement benefits and rehiring of pilots recently suspended by management, including the union's executive secretary, Richard Vaca, "who has been subject to charges that infringe on his labor leader immunity."
The National Air Traffic Controllers Association last week honored Sen. Frank Lautenberg (D-N.J.) for his services to aviation, and also named 20 controllers whose actions prevented potential accidents last year. NATCA presented its annual Sentinel of Safety award to Lautenberg for the many aviation safety initiatives he has championed in the Senate, and for his support of NATCA. The union also named Miami controller Jesse Fisher the winner of its annual President's Award, after Fisher prevented a potentially fatal runway incursion accident.
Porter Airlines is the new name for the Regco subsidiary that plans to launch flights from Toronto's City Center Airport this year, with former American CEO Don Carty lending his help as chairman of the new carrier and Regco Holdings. Regco unveiled its plans to fly from the airport about three years ago, and CEO Robert Dulce sued the city for $500 million after the current administration cut plans to build a bridge to the airport. Dulce reached an out-of-court settlement with the city in May.
The launch of Argentine airline Safe Flight could make it almost impossible for troubled carrier Southern Winds to keep flying, thanks to a hiring deal between the new airline and a local union.
SIA Engineering joint ventures helped the company boost its profits for its fiscal third quarter to SGD$53 million (US$32 million), up 46% from a year ago. Shares of profits from the company's 19 joint ventures grew 60.7% to SBD$28.6 million (US$16 million). Revenues for the quarter jumped 20% to SGD$235 million (US$143 million). SIA attributed the rise to higher levels of airframe and component work and more line maintenance work. Those two elements accounted for about 61% and 33% of SIA's third-quarter revenue.
Alaska Airlines, JetBlue and AirTran posted the worst on-time arrival rates among the top 20 U.S. airlines in 2005, showing that low costs and high productivity don't necessarily result in a reliable operation.
America West received exemption authority for El Salvador and Guatemala (DAILY, Nov. 23, 2005). At first, America West will use the rights to code share with US Airways, but it could eventually launch its own service [OST-2005-23098].
Aerolines Argentinas this week will extended its service from Buenos Aires to Bogota beyond to Mexico City. The airline operates the flights three times a week with Airbus A310s.
The U.S. State Dept. is pressuring the U.K. to change the fuel rationing system it imposed at London Heathrow Airport since December, which U.S. officials say unfairly discriminates against non-U.K. airlines and adds millions of dollars to airline fuel costs. The rationing was introduced at Heathrow after an explosion and fire at a nearby fuel storage facility drastically cut the airport's fuel supplies (DAILY, Dec. 16). Airlines using Heathrow have had to carry extra fuel on inbound flights to reduce refueling demand, a practice known as tankering.
