Air Canada now plans to cut its annual cost base by more than the C$500 million ($489 million) it targeted earlier this year, CFO Michael Rousseau told reporters in Toronto yesterday. "We are not going to be satisfied hitting C$500 million. We know of some things within our control and there is an incredible effort within the entire company to drive out costs," he said, according to Reuters. AC intended to find the C$500 million in savings by the end of 2011
The public sniping between British Airways and the Unite union continued yesterday, while TAP Portugal and its pilots struck a more conciliatory tone and reached a deal that cancelled a potentially devastating six-day strike. TAP pilots represented by the SPAC union called off the March 26-31 work stoppage after agreeing to a new contract. "The agreement includes a pay rise of 1.8%, the same as for the other TAP unions, and equal sharing of productivity gains by pilots and the airline," TAP said.
EasyJet tapped media executive Carolyn McCall, who ran the UK's Guardian Media Group, as its new CEO, succeeding the departing Andy Harrison. The LCC said McCall "has a proven track record of successful operational delivery in a fast-changing online consumer facing business combined with extensive plc board and government and lobbying experience."
US Air Transport Assn. said February passenger revenue rose 4.5% year-over-year based on data provided by a sample of its member carriers. Passenger numbers fell 2.9%, largely owing to the February snowstorms, and the average price to fly 1 mi. climbed 5%. International passenger revenue rose 7.9%. January cargo revenue ton-miles were up 14% (2% domestically and 27% internationally). February data was not available.
AirTran Airways said it expects first-quarter unit revenue to rise 4.8%-5.3% year-over-year on a 6% lift in capacity. Nonfuel unit cost is expected to increase 4.5%-5%.
Ukraine International Airlines said it resold a 6% stake that it acquired from AerCap in December 2008 to an unnamed Ukrainian investment company. Other shareholders are the State Property Fund of Ukraine (61.6%), Austrian investor UIAB (22.5%) and the European Bank for Reconstruction and Development (9.9%).
South Korean Ministry of Land, Transport and Maritime Affairs reported that February passenger numbers and cargo volume recovered to pre-crisis levels, according to the Centre for Asia Pacific Aviation. International passenger numbers rose 12.6% year-over-year to 3.1 million while domestic numbers were up 26% (and by 14% compared to February 2008) to 1.5 million. Cargo gained 21.8% to 215,000 tonnes, with a 1.4% increase from February 2008.
Air France said it expects "normal" operations this weekend after the majority of the six unions representing cabin crew called off a proposed strike scheduled for March 28-31
FAA yesterday announced a proposed $1.5 million penalty against the former Northwest Airlines for operating 32 757s without required windshield wiring inspections. NWA was acquired by Delta Air Lines in late 2008 and the carriers began flying on a single AOC in December, but the flights in question took place between Dec. 1, 2005, and May 27, 2008.
British Airways yesterday said that more than 3,000 flight attendants crossed the picket line and worked during the March 20-22 strike, equivalent to 97% of the rostered crew at London Gatwick and 53% at Heathrow
SAS Scandinavian Airlines last week took delivery of its 69th and final 737NG, a -700, and now is "very attractive" to aircraft manufacturers "because we have an empty order book," CCO Robin Kamark told ATWOnline. Speaking onboard the 9 hr. 33 min. delivery flight from Seattle to Stockholm Arlanda, Kamark said the troubled airline still intends to make a decision regarding the composition of its future fleet, both short- and long-haul, by the end of next year.
Aegean Airlines remained well in the black last year, although net profit fell 22% to €23 million ($31.1 million) from the €29.5 million earned in 2008 as a result of the recession and the decline of the Greek economy during the final four months of the year. Revenue increased 2% to €622.7 million mainly due to what Aegean called a "significant" international network expansion, which included new routes from Athens to Brussels, Berlin Tegel, Barcelona, Venice, Istanbul Ataturk, Vienna and Madrid.
British Airways said the three-day flight attendants' strike, which ended last night, cost the carrier an estimated £21 million ($31.5 million) and that its contingency plans proved "very successful."
Air China will boost its profile in the Pearl River Delta region by taking control of Shenzhen Airlines with a CNY682.1 million ($99.8 million) investment that will see its stake in the country's fifth-largest carrier rise from 25% to 51%.
One month after suspending a four-day strike after the first day, Lufthansa pilots represented by Vereinigung Cockpit are planning another four-day stoppage, this one scheduled for April 13-16, after talks with the airline regarding the union's job security concerns reportedly broke down.
Delta Air Lines and US Airways have softened their stance and will give up 12% of the slots originally included in their New York LaGuardia/Washington National swap deal in order to secure approval from the US Dept. of Transportation.
Republic Airways Holdings has changed course and will abandon either the Frontier Airlines or Midwest Airlines name next month and combine its new subsidiaries into one company, new VP-Marketing and Branding Ian Arthur told American City Business Journals. "I think the name is very important. And certainly part of our decision is which customer base is more willing to migrate over to the other brand," Arthur said. "There's significant equity in both of them." Republic said it intended to keep both brands when it acquired the pair last year
Philippine Airlines expects to post another loss in its fiscal year ending March 31, President Jaime Bautista told reporters in Manila. PAL was $301.4 million in the red in 2008-09, but anticipates an improvement in 2009-10. It lost $40.2 million through the nine months ended Dec. 31. It expects to report more than 9 million passengers and revenue of approximately $1.4-$1.5 billion for the full fiscal year.
Royal Jordanian will take delivery of two A330-200s on May 21 and an E-175 in the fourth quarter. A330s will seat 24 in business class and 259 in economy and will operate to London Heathrow, Hong Kong, Bangkok, Colombo and Kuala Lumpur. A twice-weekly Amman-Madinah service will launch on March 28 and the thrice-weekly KUL flights begin in June. RJ currently operates 29 A330s and seven E-175s/195s. Delivery of its 11 787s is scheduled to start in 2013. It did not reveal the source of the aircraft it is receiving.
Jat Airways lost €23.5 million ($31.8 million) in 2009 and expects another deficit this year, CEO Srdjan Radovanovic told reporters in Belgrade. The carrier had expected a €15 million ($31.8 million) loss in December ( ATWOnline, Dec. 8, 2009). Full-year operating loss was €16.5 million.
ANA now expects to report a ¥65 billion ($720 million) consolidated net loss in its fiscal year ending March 31, compared to the ¥28 billion loss forecast last October, owing to a "slower than expected recovery," although it plans to return to profit in 2010-11.
Austrian Airlines will begin replacing regional jets and small turboprops with larger aircraft on its European routes from Sunday in order to bolster its competitiveness with higher volume and more attractive fares.
Air Berlin posted a €9.5 million ($13 million) loss in 2009, narrowed from a restated €83.5 million deficit in 2008, it reported in a preliminary earnings statement. Germany's No. 2 airline said full-year revenue dropped 4.4% to €3.24 billion and operating expenses were cut 6.2% to €2.78 billion. It said EBIT rose to €28.5 million from €2 million, while financial losses were reduced to €51 million from €72 million in 2008. Detailed full-year results are due for release Thursday.
Continental Airlines plans to take delivery of four 787-8s in the third quarter of 2011 and two more in the fourth quarter, it said in a US Securities and Exchange filing last week. It has 11 -8s and 14 787-9s on order. The fleet plan included in the filing anticipates the 2010 delivery of two 777-200ERs, three 757-300s, two 737-900ERs, 10 737-800s (one of which will not enter service until 2011) and three 737-500s, plus the disposal of six 737 Classics. By year end, CO will have 350 aircraft in the mainline fleet.
Denmark's Cimber Sterling cited "extraordinarily tough competition, falling demand and thus significant pressure on yield," as it reported a loss of DKK95.2 million ($17.4 million) for the fiscal third quarter ended Jan. 31 compared to income of DKK12 million in the year-ago period. Three weeks ago the carrier reduced its forecast for its fiscal year ending April 30 to an operating loss of DKK200-DKK220 million
