Topping analysts' forecasts for third-quarter profits, Ryanair upped its guidance for full-year net profit from EUR230 million (US$250 million) to EUR235 million (US$255.5 million). Net profits jumped 50% for the quarter ended Dec. 31 to EUR43.2 million (US$46.97 million). The airline carried 46% more passengers, but an 8% yield decline left revenues up only 37%. The after-tax profit margin nevertheless improved from 21% to 23%, as total operating costs were up just 28%.
Cockpit doors, air cargo security and who should pay the costs for increased federally mandated security will be among topics tackled at today's Senate Commerce aviation subcommittee hearing.
In April, Argentina's Southern Winds Airlines will upgrade its current four weekly flights from Buenos Aires to Madrid to daily service with Boeing 767-300 aircraft. The carrier wants to increase its market share on the route to 12%, investing in advertising and promotion in key European markets aimed at positioning Argentina as one of the world's last quality travel bargains. According to official government statistics, from nominal numbers in previous years, in 2002 some 1,918,052 foreign tourists visited Argentina.
Air France claims its operations program is "significantly higher" than planned on Monday despite the ongoing pilot strike. The carrier said yesterday 89% of long-haul and 87% of medium-haul flights were operated on Monday. Syndicat National des Pilotes de Ligne (SNPL), the majority pilots union, issued a statement yesterday asserting the flight cancellation rate was about 50% and accused the company's management of "disinformation". The union said the company was using chartered aircraft to compensate for part of the canceled services. -MT
Korean Air, during the Lunar New Year holiday, carried a record-breaking number of passengers. The results were especially significant at both Seoul Gimpo and Busan Kimhae airports. On Jan. 31, 141 flights, including 42 charter flights, departed Gimpo carrying 30,514 passengers. This record tops the previous one of 30,109 passengers carried during the Korean Thanksgiving holiday on Sept. 20, 2002. Kimhae performed "equally well," breaking the previous record of 14,921 passengers set on Sept. 22 by carrying 15,118 passengers on Feb. 2. -SL
Transportation Security Agency head Adm. James Loy said this week he expects to reduce the agency's work force by about 3,000 by the end of fiscal 2004. Loy told an audience at a Department of Homeland Security press briefing that the total number of employees would fall from 62,000 to 59,000 by reducing screening staff from 51,000 to 48,000.
SilkAir plans to suspend its once-a-week service to Makassar, Indonesia, previously known as Ujung Pandang, following a "network review to streamline our operations." The last scheduled flight will be on March 25. SilkAir CEO Subhas Menon reported the route was "unprofitable for a long time, and traffic between Singapore and Makassar has dropped further over the past year." -SL
Anticipating heavy flower exports for Valentine's Day, Colombian cargo carrier Tampa Airlines has leased an extra DC-10 trijet and will operate 243 flights to meet demand.
Air Tahiti Nui this week took delivery of two Airbus A340-300s it had on firm order, part of a fleet modernization and expansion program that will increase its A340 fleet to four.
Frontier Airlines executives likely will tell analysts today in an earnings conference call it faces significant cost challenges in its upcoming fiscal year, blaming its dual fleet infrastructure, high fuel costs and expenses related to the return of 11 Boeing 737-200s that will be gone by August. On the bright side, CEO Jeff Potter said in New York that Frontier completed one sale/leaseback deal in December to improve its liquidity and a second will close this month.
Lufthansa and public services union Ver.di agreed to let Klaus von Dohnanyi arbitrate their stalled talks on a new wage deal. Von Dohnanyi is a former education minister and mayor of the city of Hamburg. He is highly regarded as an independent political mind in the country. Ver.di demanded a 9% wage increase for Lufthansa's 52,000 ground staff and cabin crew plus a profit sharing plan. Lufthansa rejects the demands as unacceptable. -JF
Brussels-based low cost carrier Virgin Express and Belgian regional carrier VLM Airlines signed a code-share agreement on the Brussels-London City route, effective March 30. VLM had been cooperating with SN Brussels Airlines on that route. Virgin's agreement with VLM provides for five daily rotations between Brussels and London City Airport, which will be operated with VLM's Fokker 50s.
Rep. Ellen Tauscher (D-Calif.), member of the House Transportation aviation subcommittee, said she is concerned that cost overruns on FAA's Standard Terminal Automation Replacement System (STARS) will compromise other agency programs.
American told its labor groups it needs $1.8 billion in wage and work rule concessions, giving definition to warnings it has been making for weeks that it would be requesting large-scale concessions.
United filled all 704 flight-attendant job cuts it sought through a voluntary furlough program, meaning no layoffs will be needed, the flight attendants' union reports. The airline said earlier it would have to furlough attendants if response to its voluntary furlough and job-sharing offers was insufficient. The voluntary furloughs will begin Feb. 22.
Talks between the Greek government and Greek tycoon Stamatis Restis for the privatization of Greek flag carrier Olympic Airways broke down yesterday, the government's privatization advisers said. The previous attempt failed in 2001, when the preferred bidder, Axon Airlines, filed for bankruptcy. In December 2002, Greek authorities selected the Restis Golden Aviation consortium as preferred bidder in a renewed attempt to privatize the cash-strapped flag carrier. The candidate offered EUR150 million for a majority stake -- up to 70% -- in Olympic.
Forty-seven House Democrats are telling the White House they are concerned efforts to put air traffic controllers on the 2002 Commercial Activities list bring the ATC system one step closer to privatization. The letter was similar to one being circulated in the Senate that as of Friday had 24 signatures (DAILY, Feb. 3). "We find this very disturbing, as it appears to be an initial step towards privatizing our nation's air traffic control system," they said.
American Trans Air parent ATA Holdings yesterday reported a $57.6 million fourth-quarter loss, less than the $81.3 million deficit from last year but still "unacceptable," said CEO George Mikelsons.
Air France has requested authority from Colombia's civil aviation board to operate a fifth weekly frequency between Bogota and Paris. This flight, plus a code-sharing agreement with the Summa Alliance to be concluded in three months, would make the operation profitable after recently breaking even. It would also position Air France more favorably to capitalize on Lufthansa and Avianca's departure from the route.
Lloyd Aereo Boliviano (LAB) has renewed service to Manaus, after a year of suspended operations from Bolivia to the major hub in the center of the Amazon Basin. The route will be operated three times a week from Santa Cruz, with connections to other cities in Bolivia. -LZ
Brazilian no-frills carrier Gol Airlines revealed U.S. insurance conglomerate American International Group (AIG) is the undisclosed partner interested in acquiring a 20% stake in the carrier for $120 million (DAILY, Jan. 21). AIG operates in the aviation sector through subsidiaries AIG Aviation and ILFC Leasing. If the government gives final approval, it will be the first time a foreign company has invested in a Brazilian airline. -LZ
Figures issued by the Chilean Superior Tourism Council (CST) show a 21.4% jump in international air departures in 2002, setting a "historic precedent" attributed mainly to neighboring Argentina's recent emergence as a "budget destination," the group said. On the other hand, CST regretted international arrivals dropped as much as 17.1% below 2001, also due to Argentina's current economic depression. Travel officials from both countries are meeting to discuss ways and means of better balancing TransAndean vacation flows. -LZ
