Airlines & Lessors

EasyJet (U2) has reported a record pre-tax profit of £317 million ($512.4 million) for the year ended 30 September, up 27.9% over the previous financial year, despite the challenging economic climate and a £182 million increase in unit fuel costs ( ATW Daily News, Oct. 3). After a tax charge of £62 million, profit for the year was £255 million, up from £225 million the previous year.

Turkish Airlines (TK) has reported a nine-month net profit of TRY868 million ($481.6 million), up 655% over the same period in 2011. Revenue increased 30% to TRY11.2 billion and operating profit was TRY1.08 billion. The carrier returned to profit in its 2012 first-half results ( ATW Daily News, Sept. 4). RPKs rose 27% and ASK 19% producing a load factor of 77.9 %, up 5.3 points.

Turkish Airlines (TK) has done a deal with GE Aviation to provide engines for its new Airbus A330-300s and Boeing 777-300ERs. A $1.4 billion contract covers GE90-115Bs to power the 777-300ERs and a long-term OnPoint maintenance agreement. TK in October ordered 15 777-300ERs with options for an additional five, scheduled for delivery beginning in 2014 ( ATW Daily News, Oct 22). The GE90 is the only engine available for the -300ER.

International Lease Finance Corporation (ILFC) delivered the 15th and final Boeing 737-800 to American Airlines (AA) as part of an aircraft sale and leaseback program. “ILFC…views this transaction as an important achievement in the execution of our strategy to increase ILFC’s market share in the Americas,” ILFC CEO Henri Courpron said. The program began in November 2011; at that time AA had taken delivery of two of the previously-ordered aircraft.

Regional carrier Augsburg Airways (IQ) faces an uncertain future if no investor or strategic partnership could be found.

Cargolux Airlines (CV) confirmed Monday that Qatar Airways (QR) will exit its 35% shareholding in the carrier. QR had reportedly sought to increase its shareholding to 49% ( ATW Daily News, March 28).

Kenyan carrier Jetlink Express (J0) suspended all scheduled flights Nov. 16 after its creditors cut off funding. In a statement, J0 said it has over $2 million in revenues in South Sudan, mainly in Sudanese pounds, although is unable to access this cash because of a scarcity of foreign currency in South Sudan. The airline’s credit lines in Kenya were based on these revenues.

SAS Scandinavian Airlines has reached agreements with all eight of its unions as the carrier seeks severe cost cuts so that it can avoid bankruptcy

Virgin Atlantic (VS) has won its bid to take all 12 pairs of London Heathrow (LHR) remedy slots demanded by the European Commission following the takeover by International Airlines Group (IAG) of British Midland (BMI). The giving up of slots was a condition of the takeover deal; IAG also owns British Airways (BA) ( ATW Daily News, April 2).

California-based Virgin America (VX) and Air China (CA) have signed an interline agreement offering seamless travel on the networks of both carriers across their respective routes in North America and Asia.

Virgin America (VX) posted a third-quarter net loss of $12.6 million, widened from a $3.3 million net loss in the year-ago quarter.

CSA Czech Airlines (OK) and its pilots have agreed to a year-long pay freeze as it heads toward the end of a three-year restructuring process.

TNT Express has agreed to sell its two airlines to ASL Aviation Group to overcome ownership restrictions triggered by its planned merger with UPS.

Interjet has added 10 options to its firm order for 20 Sukhoi Superjet 100 (SSJ100) aircraft, and Superjet International increasingly believes the Mexican carrier holds the key to the future success of the regional aircraft.

Air France Industries (AFI) has invested €43 million ($54.7 million) in a new 5,000 sq. m. engine test cell based at Paris Charles de Gaulle Airport (CDG).

Air Berlin (AB) reported a third-quarter net income of €66.6 million ($84.8 million), more than doubled from a €30.2 million profit in the year-ago period.

Brazil’s GOL has reported a third-quarter net loss of R$309.4 million ($149.6 million), improved from an R$516.5 million net loss in the year-ago period.

Airbus has become the first commercial aircraft manufacturer to deploy Radio-Frequency-Identification (RFID) part-marking to aircraft components on all its aircraft families. This innovation, which will bring value-chain visibility, error-proof identification and efficiency savings in component lifecycle management, will be progressively rolled out in 2013 to all seats and life vests for the A320, A330 and A380 aircraft families.

African low-cost carrier Fastjet will issue $2.4 million in new shares to seize an “earlier than expected opportunity” in Southern Africa.

Latin American airlines continue to enjoy strong growth, but the region’s aviation infrastructure—both airports and ATC—cannot adequately handle the rapid expansion in passengers and cargo, potentially suppressing demand, a number of officials have warned.

Colombia’s Avianca Airlines (AV) has ordered three additional Boeing 787s valued at $620 million at list prices.

LOT Polish Airlines has taken delivery of the first of eight Boeing 787 Dreamliners at Warsaw Chopin Airport (WAW).

Singapore Airlines regional affiliate SilkAir (MI) has finalized an order for 54 737s and 737 MAX 8s worth $4.9 billion at list prices.

Jazz Air parent Chorus Aviation reported third-quarter net income of C$37.2 million ($37.8 million), more than doubled from C$13.9 million year-over-year.

Air Berlin (AB) could cut workforce 10%, which is about 900 jobs, several German TV and newspapers are reporting.