SkyTeam member airline CEOs meeting in New York this week to mark the alliance's 10th anniversary formally signed an agreement with China Eastern Airlines to begin its process for becoming a full member and upgraded the status of Air Europa and Kenya Airways from associate to full membership.
Malaysia Airlines said yesterday that it has made clear to Airbus its disappointment in the delayed delivery of its A380s and is seriously considering canceling its order. MAS has six A380s on order and originally was supposed to receive its first in May 2008. CEO Azmil Zahruddin told reporters yesterday following the carrier's AGM that the first A380 now is scheduled to be delivered in the 2012 second quarter, its fourth delivery date. "MAS hopes to make a decision this year on whether we'll cancel the A380 orders," he said. "We are not happy."
Qatar Airways announced that its expansion is continuing "with vigor" and it will launch five new routes from its base in Doha to Europe and Asia over a four-month period starting in October.
Australia's Virgin Blue is planning to change its name, introduce a business class and operate domestic routes with larger aircraft in a bid to become a more potent, direct competitor to Qantas, according to sources at the Brisbane-based carrier.
Swiss International Air Lines took delivery of its seventh A330-300 last week. The carrier expects its last two A330-300s on order for delivery to arrive in August and December respectively. The aircraft are replacing Swiss's A330-200s.
United Airlines launched its first-ever service to Africa over the weekend with a 767 flying from Washington Dulles to Accra. The service between the US and Ghanian capitals will be daily. "With the addition of service to Accra, United now offers customers nonstop service to points on six continents," Senior VP-Worldwide Sales and Marketing Jeff Foland said.
Calgary-based WestJet announced Friday that it cut its full-price fares by an average of 25% across its entire 68-city North American and Caribbean network. The successful LCC, which has an estimated 35%-40% share of the Canadian domestic market, said the introduction of "everyday value fares" will result in lower fares across its entire schedule up to 330 days ahead of departure.
China's airlines reported collective net income of CNY1.23 billion ($180 million) for the month of May owing to continuing domestic economic growth, according to CAAC.
Japan Airlines and American Airlines applied Friday to the Japanese Transport Ministry for antitrust immunity to operate as if they are one airline for commercial purposes on flights between North America and Asia, while ANA, United Airlines and Continental Airlines filed a similar application for ATI with the ministry.
Aer Lingus is "encouraged" by its financial performance in the first five months of the year but remains "cautious" about its full-year performanceowing to concerns about the broader economic environment, Chairman Colm Barrington told shareholders Friday at the airline's AGM.
Ryanair made further changes to its baggage policy, offering passengers the choice of buying a larger (up to 20 kg.) checked bag allowance for £25/€25 as an alternative to its standard 15 kg. allowance that costs £15/€15. In the July-August peak season, the charges will be £30/€30 and £20/€20 for a first bag respectively. A second checked bag of up to 15 kg. can be purchased for £35/€35 off-season or £40/€40 in summer.
Aerolineas Argentinas announced it has revamped its brand image. It appointed FutureBrand to lead the strategy, which features a redrawn version of the condor symbol, a new typeface and a different, lighter shade of blue. "Aerolineas Argentinas proudly presents its new image, having now regained confidence, regularity and timeliness and also increasing the number of frequencies as well as improving its service," President Mariano Recalde said, adding that its new "identity system" will be implemented gradually.
Air Mauritius Group reported a net loss of €6 million ($7.4 million) for its fiscal year ended March 31, narrowed from an €85.3 million deficit in the prior year, and said it would have posted a €32.6 million profit for the year absent €38.5 million in fuel hedge losses. Revenue declined 16.6% to €371.7 million owing to lower capacity and declining yields while expenses dropped 24.6% to €346.8 million, producing a €24.9 million operating profit before administrative expenses.
Royal Jordanian President and CEO Hussein Dabbas confirmed that delivery of the first of the carrier's 11 787s is now scheduled for September 2013. "Almost three years late," he pointed out to ATW last week on the sidelines of the IATA AGM in Berlin. He said the Dreamliners will open up new opportunities for the carrier. "For example, nonstop Amman-Hong Kong services" will be possible, he noted.
The UK's Advisory, Conciliation and Arbitration Service confirmed that it was unable to broker a deal between British Airways and the Unite union to end the long-running dispute between the airline and its flight attendants over pay and working conditions.
Excessive government fees and regulation, aging infrastructure and the emergence of major airlines in the Middle East and Asia are threatening European airlines' long-held position at the forefront of the global air transport industry, according to Swiss International Air Lines CEO Harry Hohmeister.
FedEx reported net income for its fiscal year ended May 31 of $1.18 billion, significantly improved over a $98 million profit in the prior year, despite a 2% dip in revenue to $34.73 billion. Total FY2009-10 expenses lowered 6% to $32.74 billion, helped in part by an 18% decrease in fuel costs to $3.1 billion. Operating income was $2 billion, well more than double $747 million in the prior year.
Spirit Airlines last night reached a tentative agreement on a new labor contract with its pilots, who agreed to return to work Friday following a six-day strike.
Hong Kong Airlines this week took delivery of its first Airbus aircraft, an A330-200 with which it intends to launch services to Europe by the end of the month, initially flying to Moscow. The A330 is the first of 53 Airbus aircraft it has on order comprising 23 A330s and 30 A320s. "The arrival of the A330 is a milestone for Hong Kong Airlines as we expand into the long-haul market," President Yang Jian Hong said. Aircraft are equipped with Panasonic Avionics' eX2 IFE and communication systems.
