Finnair reported a modest EUR2.9 million fourth quarter loss, but the deficit could not prevent the airline from posting a strong EUR61.4 million full-year profit, up from a EUR25.6 million income in 2004.
Aloha Airlines on Friday formally exited Chapter 11 bankruptcy protection after the carrier dodged several last-minute objections that almost derailed its exit. The carrier first filed for protection on Dec. 30, 2004, and in a little more than a year, the carrier cut $75 million in operating costs. "We have secured favorable leases and with the elimination of unprofitable routes, Aloha now operates a highly efficient, customer-sensitive schedule, including daily nonstops between the U.S. West Coast and Honolulu, Maui and Kona," said CEO David Banmiller.
Mesaba says any strike by pilots would be an "academic" exercise, since the carrier couldn't survive it. VP-Finance Tom Schmidt says it's probably illegal for workers to strike now that Mesaba has asked the courts to reject labor agreements with pilots, flight attendants and mechanics, but he warns that any strike, legal or not, is "more than the carrier can bear; it would cease operations."
Cargo carrier Evergreen International Airlines asked the U.S. Transportation Dept. to waive the 90-day dormancy condition on its three U.S.-Russia cargo frequencies indefinitely, citing a downturn in the market after the Sept. 11 terrorist attacks. FedEx also asked for an indefinite waiver for its U.S.-Russia cargo frequencies, a fact that Evergreen notes in its application. Like Evergreen, FedEx suggests renewal of its two-year waiver in lieu of DOT's denial of an indefinite waiver.
Japan yesterday opened a new domestic airport in Kobe that will have a limited number of operations due to concerns over airspace congestion but will likely provide some new competition to the country's train system. The new airport in the Osaka area was proposed more than two decades ago and required the construction of an artificial island. The airport took six years to build and has a single 8,250-foot runway.
Northwest, through code shares with SkyTeam partners Delta and Continental, will add new destinations and boost service to cities in Latin America and the Caribbean. If it gets regulatory approval, Northwest will code share on Continental's flights from Houston to Buenos Aires, Cali, Colombia, and Quetaro, Mexico -- all new destinations for the Minneapolis-based carrier.
The European Commission will review the way airport charges are set in the European Union, in response to complaints from IATA. European Transport Commissioner Jacques Barrot told the Financial Times, "We need to put some order in the way fees are charged. I don't know yet what the best system would be, but it clearly needs to be a lot more transparent. It seems fees are a bit arbitrary." The commissioner is scheduled to meet representatives from major airlines and airport operators on April 6 to discuss the issue.
Thai Airways yesterday reported a 33% drop in its fiscal first quarter profit to 3.8 billion baht (US$96.6 million) due to a sharp rise in fuel prices. Total revenues rose 6.5% to 45.9 billion baht (US$1.2 billion), but expenses jumped 10.3% due to more capacity and the 25.3% increase in fuel prices. Executives noted that labor costs, marketing expenses and other costs fell from the previous year. The carrier recorded a foreign exchange gain of 1.4 billion baht thanks to a stronger Thai baht. During the quarter ended Dec.
The head of the House appropriations subcommittee that funds the Transportation Security Administration told the agency's head to come up with a Plan B if a proposed hike in passenger security fees fails to pass in Congress. The Fiscal Year 2007 Dept. of Homeland Security budget request, which includes TSA, seeks to raise an estimated $1.4 billion by doubling passenger security fees to $5 per trip (DAILY, Feb. 7). The airlines and many members of Congress oppose the plan, similar to one that failed to pass Congress last year.
Parts supplier Avio-Diepen recently signed a long-term deal to join Boeing's Integrated Materials Management (IMM) program. Through this program, Boeing and other suppliers maintain an airline's inventory of maintenance supplies, including spare parts, and provide items only as needed.
Northwest and two of its largest unions will have one more week to hash out new agreements after Judge Allan Gropper postponed his decision in the Section 1113 case until Feb. 24. Gropper was previously expected to decide today whether to abrogate existing contracts with pilots and flight attendants. "We appreciate Judge Gropper giving the parties additional time to work out their differences," Northwest said.
French Transport Minister Dominique Perben asked the European Union to include Air Comores Services in the black list of carriers banned from operating in the European Union. The airline "had been under surveillance since mid-November, which caused the suspension of its operations in France," said the French ministry, and so far has not "provided the responses which demonstrate the safety of its aircraft."
OnAir recently hired Adrian Gane as commercial director and as a member of the management board. Gane has responsibility for all commercial aspects of the business for the new mobile telephony, web and managed network services, as well as existing services, the company said. Gane spent 17 years at Cathay Pacific in different roles, including having responsibility for the U.K. and Europe at a time of a route restructuring, and running the operations in Japan and Korea as SARS struck. -SL
Italy signed a memorandum of understanding with India aimed at expanding traffic between the countries. The agreement allows seven weekly frequencies between Italy and Kolkata, in addition to existing routes serving Mumbai and Delhi. Both countries also decided to provide for the designation of additional carriers, aside from Alitalia and Air-India.
Note To Readers: Because of observance of the U.S. Presidents Day holiday, Aviation DAILY will not publish an issue dated Monday, Feb. 20. The next issue will be dated Tuesday, Feb. 21.
SAS unilaterally decided to implement new contracts for its pilots after talks with unions broke down, and the carrier could face social unrest in the spring as a result. "The danger of a strike after April 1, when the current [collective labor] agreement expires, is far greater today than it was yesterday," said Jack Netskar, head of the Norwegian SAS Pilots Union.
Embraer's 170 won approval from Brazilian and European authorities for Category IIIa autolanding operations. To win the certification, the plane's autopilot system has to safely land the aircraft at low visibility - 600 ft or 200 m Runway Visual Range in adverse weather conditions. Embraer expects certification by the U.S. FAA shortly. -LR
Qantas yesterday reported a 9.6% drop in net profit for the first six months of its fiscal year to A$352.6 million due to restructuring charges and high fuel prices, and executives warned that profits will likely drop further in 2006.
China Eastern picked EADS EFW to convert three Airbus A300-600 passenger planes to freighters. The first plane is scheduled to enter the EADS EFW Dresden center in December, and the second and third conversions are set for completion next year.
Etihad Airways plans to launch daily service between Abu Dhabi and Manchester on March 26, giving the airline its third U.K. destination. Etihad also serves London Heathrow and Gatwick airports. The new route will be the airline's 25th destination. "Demand for air travel between the north of England and the U.A.E is growing every year," says Geert Boven, VP-commercial. Competitor Emirates has two daily flights from Dubai to Manchester, along with Heathrow, Gatwick and Glasgow. The carrier on June 1 plans to start Birmingham service. -SL
