Debis AirFinance confirmed that its current shareholders, DaimlerChrysler, Bayern LB, Dresdner Bank, DZ Bank and HypoVereinsbank, are in the process of selling the aircraft finance and leasing company to Cerberus Capital Management. Terms were not disclosed. Headquartered in Amsterdam, debis AirFinance has a fleet of 141 aircraft and manages a further 108 under full-service contracts for third-party owners. It provides financial and corporate services for 164 aircraft. The company employs 113 people.
Air Transport Assn. member airlines flew 60.35 billion RPMs in March, up 9% over the year-ago period. Capacity climbed 3.8% to 74.47 billion ASMs and load factor gained 3.9 points to 81%. For the three months ended March 31, RPMs rose 7.5% to 159.44 billion, ASMs increased 2.5% to 211.01 billion and load factor jumped 3.5 points to 75.6%.
G2 SwitchWorks Corp. signed long-term commitments with American Airlines, America West, Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines and US Airways that designate G2 as a provider of choice for alternative GDS distribution services between themselves and key agency clients.
Cathay Pacific Airways will launch a new freighter service to Dallas and Atlanta to help meet the growing demand in the US for exports shipped through Hong Kong, the world's busiest international air cargo hub. A 747-400F will operate three times a week from Nov. 19, stopping first in Dallas and continuing to Atlanta. With this new service, Cathay will operate 21 scheduled weekly freighter flights to six US cities.
GMF AeroAsia, the maintenance arm of Garuda Indonesia, and GE Transportation Aircraft Engines signed a two-year component repair contract worth roughly $10 million over the life of the deal.
Boeing reported net earnings of $535 million for the first quarter ended March 31, a 14% decline versus net earnings of $623 million in the 2004 period, as significantly higher noncash expenses for share-based plans, pensions and deferred compensation offset strong performance by its Commercial Airplanes and Integrated Defense Systems units. Total revenue rose just 0.3% to $12.99 billion and total costs and expenses declined 0.2% to $10.78 billion. Earnings from continuing operations fell 16.6% to $687 million from $824 million in the 2004 first quarter.
The 46th Paris Air Show will be larger than the 2003 event in terms of numbers of exhibitors and will feature both the A380 and the 777-200LR making their first air show appearances, officials confirmed at a briefing in Washington yesterday. According to Paris Air Show Chairman Louis Laport, the seven-day event (trimmed from nine days previously at the request of exhibitors) will bring together almost 1,800 exhibitors from 44 countries compared to 1,728 from 42 countries at the 45th show. Trade days are June 13-16 with the public invited June 17-19.
Lufthansa Systems and PortGround GmbH signed a contract under which PortGround will use a Web-based version of Lufthansa Systems' air cargo handling system ELWIS at Leipzig/Halle and Dresden airports from June.
Construction of Emirates' new engineering center is on target to be able to handle the carrier's future fleet of 45 A380s, the first of which arrives in October 2006. The $353 million complex, built on a 55-hectare (136-acre) site at Dubai Airport, will have seven hangars and one paint hangar, each capable of handling the A380, making it the biggest maintenance center in the world for the newest Airbus. Two bays can provide A380 heavy maintenance and all can handle a stretched A380-900 version. The complex will employ 3,000.
PolyVista announced that Southwest Airlines has implemented and deployed its Discovery solution to "enhance the analysis capability of its existing pilot reporting program data through the addition of PolyVista's text and data-mining analysis solution."
AirTran Airways became the first US low-cost carrier to spill red ink in the first quarter as it reported a net loss of $8 million for the three months to March 31. In the year-ago period, the Orlando-based airline posted net income of $4.1 million. "The first quarter challenged us on many fronts as we grew revenues and capacity while contending with escalating fuel prices," Chairman and CEO Joe Leonard said. "Nevertheless, we were able to increase our load factor compared to the prior year."
SAS said that passengers traveling from the UK to Denmark and Norway as well as onward to Finland and Eastern Europe now can combine fares across business, Economy Flex (premium economy) and economy classes. The minimum stay rule for business travelers flying on higher economy fares has been reduced to one night and the minimum stay for the lowest economy fares to two nights.
Boullioun Aviation Services reached a medium-term lease with Ukraine International Airlines for a CFM56-3C1-powered 737-300. The aircraft was delivered last week and brings the carrier's fleet to nine 737s.
Sabena Technics signed a contract with German charter operator Germania Fluggesellschaft for overhaul of the brakes on the company's fleet of 19 F100s over a period of five years. The F100s are operated by Germania Express, DBA, Air Berlin and Hapag-Lloyd.
European Commission said it has all the information necessary to make a decision on Alitalia's restructuring plan, but it refused to confirm rumors that it has given initial technical approval to a rescue plan for the carrier. The EC is waiting for Ernst & Young to complete an audit of part of the proposed restructuring plan; to receive comments from third parties, including competitors, and to get final details from the Italian government before ruling on the plan.
RightNow Technologies announced that Alaska Airlines and sister carrier Horizon Air have selected RightNow CRM to "enhance and streamline the sales, customer service and marketing functions of its air cargo business."
SIA Engineering Co. signed a joint venture agreement to form an aerospace hydraulic equipment MRO service center with Parker Hannifin Corp.'s Parker Aerospace covering aircraft such as 747-400s, 777s, A320s, A330s and A340s. It will be called Aerospace Component Engineering Services Co. and will be incorporated in Singapore.
Lufthansa Technik Composite Tulsa expanded its product portfolio with the launch of MRO services for the thrust reversers and inlets of the PW2000. It also started a program to service the inlets of the IAE V2500 and expects to complete it in the second quarter.
SkyWest Airlines posted a 1.3% decline in net income to $18.8 million for the first quarter ended March 31, down from net income of $19.4 million in the 2004 quarter. Total operating revenue rose 34.1% to $340.3 million, primarily owing to a 33.8% jump in capacity driven by an increase in fleet size year-over-year, along with increased fuel cost reimbursements by the company's Major partners that are recorded as operating revenues under contract flying arrangements. But operating expenses also increased, climbing 39.8% to $305.8 million during the quarter.
Mesa Air Group reported net income of $10.8 million for the fiscal second quarter ended March 31, up significantly over net income of $1.8 million in the year-ago period. Excluding a one-time gain of $0.6 million related to a settlement with a vendor and $1.6 million in net investment losses, pro forma net income was $11.9 million, a 23.5% increase over pro forma net income of $9.6 million in the 2004 period.
On the day that it celebrated the anniversary of the launch of the 787, Boeing wrapped up one of the longest sales campaigns in history as it won the widebody mandate from Air-India to supply up to 50 jets worth $6.8 billion. Yesterday's deal includes firm orders for five GE90-110B-powered 777-200LRs, 10 GE90-115B-powered 777-300ERs and 20 787-8s, with options on three 777-200LRs, five 777-300ERs and seven 787-8s. Engine selection on the 787s was not announced, but GE valued the 777 firm engine orders at more than $700 million.
China Southern Airlines blamed soaring fuel prices as it reported a loss according to International Financial Reporting Standards of RMB48 million ($6 million) for 2004. "Fuel costs rose substantially and accounted for more than 30% of the operating costs of the group," said Chairman Liu Shao Yong. Nevertheless, the results represented a significant improvement compared to 2003, when the SARS crisis pushed the airline into a deficit of RMB358 million.
