Icelandair's net profit was divided by five in the first nine months of 2000, the Reykjavik-based airline said yesterday. Net profit plunged to 403 million Icelandic crowns (US$4.5 million) from 2.05 billion crowns (US$23 million) in the comparable 1999 period. The 100% privately held airline attributed the loss to higher fuel costs, an unfavorable exchange rate and rising domestic costs. Also, Icelandair cashed in 20 million crowns from asset sales in the first nine months of this year, down from 983 million crowns a year ago.
International Lease Finance Corp., confirming a July commitment, has signed firm orders of more than $5 billion for 62 A320 family and 20 A330 aircraft, Airbus said yesterday. The orders include 18 A319s, 27 A320s, 17 A321s and 20 A330-200s. Deliveries are scheduled to begin in 2002 and continue through 2009. Engine selections will be announced later. ILFC is Airbus's single largest customer, and its recent order for 50 aircraft last May brings the total number in its portfolio to 475.
Lauda Air founder and Chairman Niki Lauda resigned yesterday, prompted by two recent audit reports that revealed soaring financial losses at the struggling carrier and mounting pressure from its parent group, Austrian Airlines. The move was expected and the CEOs of Austrian said they intend to "carry out a long-term effective reorganization of Lauda Air" in addition to the integration of the airline in a "newly designed" group structure. Lauda Air is expected to become a fully owned subsidiary of Austrian, rather than merging with its parent.
DOT seeks comments, in Docket OST-00-7800, on its interim policy on alternative dispute resolution (ADR), under which the department would consider the use of ADR in seeking solutions in a wide range of matters. DOT is committed to the process as a means "to avoid costly litigation and lengthy administrative process," DOT Secretary Rodney Slater said.
Neither United nor Northwest, both of which are grappling with union troubles, is likely to face a strike over the holidays. Neither United's International Association of Machinists nor Northwest's Aircraft Mechanics Fraternal Association is likely to be released from federal mediation in time to launch a holiday job action. Meanwhile a district court on Monday granted Northwest's request for a temporary restraining order against AMFA, ordering the union to cease its alleged job actions. The order requires both sides appear Nov.
A business fare increase of as much as 10% initiated by United last week stuck over the weekend as other carriers followed suit. Airline analyst Samuel Buttrick of UBS Warburg in New York said United's initiation of the fare hike was "inconsistent" with an airline that has faced operational difficulties and is trying to win back passengers. Buttrick on Friday said the increase is $50-$100 each way per ticket. United also moved its prior existing walk-up fares into a "lightly capacity controlled" three-day advance purchase.
AIRCRAFT TRANSACTIONS FOR AUG 31 - SEPT 1, 2000 Seller/ New Type / Previous Operator Owner Engine Operator Airbus Finnair Finnair Airbus A319 CFM56-5B6/P Airbus TAP Air TAP Air Airbus Portugal Portugal A321-200/
LastMinuteTravel.com next year plans to introduce a new service called Last Minute Luxury, a collection of travel offers from deluxe hotels, resorts and other upscale travel providers. The Last Minute Luxury category will launch in January in conjunction with Summit Hotels&Resorts.
First Security Bank last week concluded an operating lease for one former Finnair MD-87 to AeroMexico. The transaction was arranged by Sigma Aircraft Management.
Grupo TACA carriers filed to gain rights to include Trans American Airlines -- Trans Am, operating as TACA Peru -- for reciprocal code sharing and wet-leasing in conjunction with authority already granted to other Grupo TACA carriers. TACA International Airlines, Aviateca, NICA and TACA de Honduras would wet-lease aircraft for code-share flights from carriers of Category 1 countries until their homelands are "advanced to Category 1" under FAA's International Aviation Safety Assessment program.
Korean Air placed a firm order for two Boeing 747-400 freighters that are scheduled for delivery in 2002. The new aircraft will boost the airline's already extensive cargo fleet, which consists of seven 747-200Fs, five 747-400Fs and four MD-11Fs. Korean Air also is one of the largest 747-400 passenger aircraft operators with 26. "Cargo shipments are -- and will continue to be -- a very important segment of our business," said CEO Yi-Taek Shim.
Ogden Corp. yesterday closed the sale of its Aviation Ground Services business to John Menzies with a cash payment of roughly $105 million. Ogden first unveiled a deal with Menzies in July and said the price reflects adjustments relating to capital expenditures, cash balances and net changes in the Ogden's customer base. Ogden also intends to sell the minority interests that were excluded from this sale in the near future. Ogden's ground services unit comprises ramp, passenger and cargo handling operations at 61 airports worldwide.
European Transport Commissioner Loyola de Palacio called for dialogue with the U.S. on hushkits in a statement issued yesterday in Brussels. Last week, ICAO rejected an European Union claim that the U.S. complaint against the ban of hushkitted aircraft in Europe was inadmissible. After this attempt to block the case on technicalities failed, the EU said it would prepare its defense on the substance of the issue, which could signal that the EU would not seek to file an appeal at the International Court of Justice.
France Telecom plans to take a majority holding in Equant in a deal unveiled yesterday that also includes a merger with Global One. To complete the deal, France Telecom will purchase the SITA Foundation's 34% holding in Equant to allow France Telecom to hold 54.3% of the new Equant.
Iberia is interested in buying Go, the low-cost carrier that British Airways put up for sale, a spokesman for the Spanish airline confirmed yesterday in Madrid. Iberia, seeking growth opportunities in Europe, is currently negotiating the takeover of its private competitor on the stock market, Air Europa. BA holds a 9% stake in Iberia, which is scheduled to launch an initial public offering in the next few months. Go, launched in 1998, operates 21 routes in Europe, including six services to Spain, where it competes head-on with Iberia.
Hotwire CEO Karl Peterson is "surprised" at the traffic on the site considering the company has not started marketing. Peterson told The DAILY that the early returns are positive, adding the site has sold "tens of thousands of tickets" since its Oct. 24 launch. He attributes the early success to "properly set expectations" and the fact that Hotwire did not rush the site to market before it was ready.
Emirates set Dec. 18 as the launch date for its new nonstop from Dubai to Birmingham, its fourth U.K. destination. The airline already operates three times daily to London Heathrow, once daily to London Gatwick, plus Manchester. The carrier first announced the new route in July and will operate Airbus A330-200s in a two-class configuration.
The Metropolitan Washington Airports Authority yesterday awarded Turner Construction a $95 million contract to build two parking garages totaling 2.9 million square feet at Washington Dulles. Construction is slated to finish in August 2002. The five-story North Flank parking garage will accommodate 4,750 cars, and the five-story West Flank garage will hold 3,800 cars. The architect is URS Greiner, Cleveland, and the construction manager is Parsons Management Consultants, Washington.
The Dutch government confirmed that it plans to sell its 75.8% stake in Amsterdam Schiphol Airport to private investors next year. The rest of the capital is split between the cities of Amsterdam, 21.8%, and Rotterdam, 2.4%. "With the privatization, the airport will be in a position for a sustainable international growth within the general conditions and the noise limitations that the government defined," according to a Dutch government statement issued last week. The decision to privatize Schiphol was first made in 1997.
U.S. Major Carriers Top 10 Airports Ranked By Total Passengers 12 Months Ended March 2000 Carrier/ Average Stage Onboard % of Change Rank Airport Length Miles Passengers Car. Total YR/YR Alaska 1 Seattle/Tacoma 884 4,083,514 31.10% 1.90% 2 Portland, OR 710 1,515,307 11.50% 5.30%
Northwest plans to start year-round nonstop service between Minneapolis and Honolulu. The airline, which has offered seasonal service between the two cities, believes the amount of Hawaii-bound leisure traffic from the upper Midwest "is strong and will support a convenient, reliable alternative." Jim Cron, VP-market planning, said, "We are confident this service will prove popular all year long." During the high-demand winter season from mid-December through April, Northwest will operate a Boeing 747 on the route.
Vietnam Airlines signed a letter of intent to purchase up to three Boeing 777-200ERs. Vietnam Minister of Finance Nguyen Sinh Hung and U.S. Secretary of Commerce Norman Mineta participated in the signing ceremony Friday between Vietnam Airlines and Boeing. The event was held in Hanoi as part of President Bill Clinton's visit to Vietnam. "The agreement is the first step toward contract and configuration discussions between Boeing and Vietnam Airlines," Boeing said in a statement.
FAA last week recertified KLM Engineering&Maintenance for one additional year. Though FAA surveyors considered the division eligible for recertification for a two-year period, they decided to extend certification for only 12 months because of the firm's current negotiations with United Technologies. FAA reached its decision following an intensive five-day audit of KLM's aircraft maintenance as a non-U.S. company certified to maintain U.S.-manufactured aircraft.
Northwest, following in United's footsteps, yesterday sought a temporary restraining order (TRO) against the Aircraft Mechanics Fraternal Association (AMFA), citing "clear evidence that a deliberate and organized job action orchestrated by AMFA's leadership is taking place." The National Mediation Board recessed talks between Northwest and AMFA recently, and the union has said it wants to seek release from mediation (DAILY, Nov. 15).
An American Airlines flight attendant died yesterday shortly after evacuating an Airbus A300 that returned to Miami less than 30 minutes after a takeoff. American Flight 1291 was scheduled to fly from Miami to Port-au-Prince, Haiti, but instead made a normal landing in Miami after a fire warning light came on in the cockpit. The aircraft stopped at the end of Runway 9L, and the 121 passengers and nine crewmembers left the aircraft using evacuation slides. Five persons, including one flight attendant, were reported injured during the evacuation process.
