Mexicana Airlines filed for protection from creditors in Mexico and the US late Monday, conceding in a statement that its "financial and labor situation is no longer sustainable."
Continental Airlines said it plans to offer $750 million of senior secured notes due in 2015. The notes will be guaranteed by its Air Micronesia and Continental Micronesia subsidiaries and secured by certain routes, airport slots and gate leaseholds utilized in connection with the routes. Approximately $350 million of the proposed offering will be used to retire an existing secured loan facility that is due in June 2011 with the remainder dedicated to general corporate purposes.
Aer Linguscabin crew, represented by the Impact union, last week announced it would ballot for strike action as part of an ongoing dispute over proposed cost-cutting measures. This would be the third ballot, following an initial 64% vote against the changes that encompass pay cuts, redundancies and productivity increases, and a subsequent 93% vote supporting the restructuring measures ( ATW Daily News, March 29).
Air China subsidiary Shenzhen Airlines has decided to purchase 10 A320s, worth $814 million at list prices, to boost its capacity in the southeast and southern parts of China. CA revealed the transaction in a stock filing released by the Shanghai Stock Exchange. Shenzhen will take delivery of the aircraft in 2012 and 2013. Shenzhen operates a fleet of 134 aircraft, which includes 32 A320 family aircraft.
Northwest Airlines has agreed to plead guilty to fixing prices on air cargo shipments and pay a $38 million criminal fine, the US Dept. of Justice announced.
Thai Airways International Public Company and Tiger Airways Holdings announced Monday that they will jointly launch a new low-fare airline venture, to be called Thai Tiger Airways, to offer service from Bangkok to domestic and international routes.
Virgin Atlantic Airways said Friday that the start of its current fiscal year “has been encouraging despite difficult trading conditions,” with revenue for its fiscal first quarter ended May 31 up 10% on the prior-year period to £513 million ($670 million) despite the impact of April’s volcanic ash cloud. Quarterly cargo revenue was up 36% to £52 million. Passenger load factor increased 5 points to 82%, it said, adding that it had 15% additional first-class passengers. It did not provide passengers carried or ASKs/RPKs.
British Airways reported a net loss of £122 million ($190.5 million) for its fiscal first quarter ended June 30, widened 15.1% from a £106 million deficit in the year-ago period, but noted that operating loss improved 23.4% year-over-year to £72 million.
ANA Group posted a net loss of ¥5.2 billion ($60.2 million) for its fiscal first quarter ended June 30, a significant improvement over the ¥29.2 billion loss in the year-ago period, as deflationary effects continued to exert downward pressure despite a recovery in the Japanese economy.
Southwest Airlines' second-quarter net income rose 23.1% year-over-year to $112 million from $91 million in the year-ago period and the LCC expressed confidence in "continued strong revenue performance" for the remainder of 2010.
As part of its largest order to date, OnAir will equip 90 Emirates A380s with connectivity that will enable passengers to make voice calls, send SMS text messages or use wireless data services ( ATW Daily News,July 21). "Major airlines now are starting to recognize the connectivity that had been a 'nice-to-have' historically has moved [beyond] that," OnAir CEO Ian Dawkins told ATW. "If you want to be a five-star airline, it's something you have to offer."
Lufthansa Group reported a first-half 2010 net loss of €104 million ($135.2 million), narrowed from a €178 million deficit in the year-ago period, but noted that it was profitable on an operating basis during the second quarter.
LOT Polish Airlines told ATW this week that it is making every effort to return to profitability. "The situation within the company is very difficult but improving,” President Sebastian Miskosz said in Warsaw.
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Alaska Airlines and its Horizon Air regional affiliate entered into a codeshare agreement with Icelandair under which the latter will place its code "on select Alaska and Horizon flights," the carriers said. Agreement also includes a reciprocal frequent flier partnership to be launched this fall.
TAM, the largest Airbus operator in Latin America, finalized an MOU for 20 A320 family aircraft and five A350-900s announced at the ILA Berlin Air Show in June. TAM's A350s will be powered by Trent XWBs; engine selection for the A320s was not announced ( ATW Daily News, June 9).
Hawaiian Airlines’ parent Hawaiian Holdings recorded a sharp drop in second-quarter net income, though it still remained in the black with a $9 million profit that compared to the year-ago period's $27.5 million in net income. CEO Mark Dunkerley said the results were “in line” with what HA had expected. “The second quarter was an eventful period as we successfully introduced our first and second A330s into revenue service in June," he said.
EasyJet posted a 5.3% rise in revenue to £759.2 million ($1.2 million) on a 3.5% increase in passengers carried to 12.3 million for its fiscal third quarter ended June 30.
