The era of double-digit growth and profit margins probably are over for US regional airlines. But opportunities still exist for those who can find them.
Virgin Blue and its associate airlines—V Australia and Pacific Blue—will be rebranded "Virgin Australia" after Singapore Airlines, 49% owner of Virgin Atlantic Airways, reached an agreement with Virgin Group Chairman Richard Branson regarding the use of the Virgin name on international services to/from Australia.
Qatar Airways plans to acquire a 33% stake in Cargolux Airlines International, QR CEO Akbar Al Baker told reporters in Dubai on Monday. “Yes we are, 33% ... We are to sign an agreement with them, in the next few weeks. We see there are synergies. Qatar Airways would like to expand and I always said we would only be interested [in other airlines] if they are healthy and well-established,” Baker reportedly told media. He did not mention the value of the planned transaction.
IATA reported that scheduled international passenger traffic (RPKs) rose 3.8% in March compared to the year-ago period, down sequentially from the 5.8% year-over-year increase recorded in February. Capacity growth of 8.6% pushed load factor down 3.5 percentage points to 74.6%
Airbus confirmed Korean Air has ordered five A330-200s, which brings KE’s orders for the type to 30, of which 23 have already been delivered ( ATW Daily News, Feb. 27, 2009). Airbus said the A330s will be powered by Pratt & Whitney PW4000s.
Republic Airways Holdings reduced its loss for the first quarter ended March 31, but its branded flying under the Frontier Airlines banner continued to be a drag on earnings as the parent of Republic, Chautauqua, Shuttle America, Frontier and Lynx posted a loss of $22.4 million, improved from a deficit of $36.5 million in the year-ago period.
WestJet reported first-quarter net income of C$48.2 million ($50.8 million), a big increase over a C$2.4 million profit in the year-ago period, as revenue jumped 24.7% year-over-year to C$772.4 million.
Embraer reported first-quarter net income of $106.3 million under IFRS accounting standards, an almost fourfold increase from a $27 million profit in the year-ago period.
WestJet reported first-quarter net income of C$48.2 million ($50.8 million), a big increase over a C$2.4 million profit in the year-ago period, as revenue jumped 24.7% year-over-year to C$772.4 million. The period marked the Calgary-based LCC's 24th straight quarter in the black.
Alaska Airlines will begin a major renovation project of its facilities at Los Angeles International this year, moving from Terminal 3 to Terminal 6 in late 2011 and integrating its "Airport of the Future" check-in process and "modernized" gate facilities. The new location will open for operations in spring 2012.
The Professional Aviation Maintenance Assn. Board of Directors said it named Dale Forton president. UPS Airlines named 34-year veteran UPS executive Matt Capozzoli VP of flight operations, replacing Capt. Rick Barr, who is retiring after 23 years.
The Virgin Blue Group will expand its codeshare agreement with Delta Air Lines to include more destinations in the US and within Australia and New Zealand. This will allow V Australia passengers to connect from Los Angeles to San Francisco, Las Vegas, Atlanta and Detroit as well as the current New York and Orlando. DL will codeshare on flights from Sydney to Perth, Adelaide, Canberra, Auckland and Christchurch.
Cebu Pacific, now the Philippines’ largest airline, flew more than 2.8 million passengers in the first quarter to March 2011, up 12% over the year-ago quarter ( ATW Daily News, June 10, 2010). According to CEB VP Marketing and Distribution Candice Iyog, the airline is on track to achieve its 12 million-passenger target for 2011, up 14% from the 10.5 million passengers carried last year.
Turkish Airlines said that changes made by the Turkish government will allow citizens from 46 countries in sub-Saharan Africa to be granted visas at Istanbul Ataturk if they also have valid Schengen, UK or US visas in their passports and possess a round-trip THY ticket.
Air India on Sunday said that nearly 90% of its domestic flights have been disrupted as the pilot strike wears on, forcing the carrier to “substantially curtail” its domestic flights through May 6.
China Eastern Airlines reported first-quarter net income of CNY1.01 billion ($155.8 million), up 31.5% over a CNY770 million net profit posted in the year-ago period.
Southwest Airlines on Monday completed its acquisition of AirTran Airways, a move that combines the world's largest LCC with the third largest LCC in North America and further accelerates the US industry's consolidation.
China Eastern Airlines reported first-quarter net income of CNY1.01 billion ($155.8 million), up 31.5% over a CNY770 million net profit posted in the year-ago period.
US Bureau of Transportation Statistics reported that US airlines employed 1% more workers in February compared to the same month last year. BTS said three network airlines (American Airlines, Alaska Airlines and United Airlines) decreased employment. Delta Air Lines reported 4.2 % more workers in February 2011 than in February 2010. Continental Airlines, which now includes employees who formerly worked for Continental Micronesia, reported a 1.1% increase, according to the report.
Transaero Airlines last week strongly denied a Kommersant Daily report that it had approached the Russian government about buying state-owned Orenburg Airlines. Privately-held Transaero, however, conceded that it is assessing the "idea of participating in other carriers' equity" but insisted its interest "lies outside Russia." Transaero General Director Olga Pleshakova said he has "never considered Orenburg Airlines as [Transaero's] competitor due to completely different business models."
Kazakhstan's Air Astana is in talks with Boeing to order up to six new 767-300ERs for a 2013-2014 delivery, President Peter Foster told ATW in Almaty. Foster said the aircraft could serve as an interim solution as it awaits the 787, the first of which it now does not expect to receive until 2019 owing to the program's multiple delays ( ATW Daily News, Jan. 19).
Allegiant Travel Company, parent of the airline, reported earnings of $17.2 million for the first quarter, down 24.1% compared to income of $22.6 million in the year-ago period in large part owing to a 38% rise in fuel costs.
All Nippon Airways posted a ¥23.3 billion ($284.4 million) net profit for its fiscal year ended March 31, reversed from a ¥57.3 billion net loss in the prior fiscal year.
