Air China, buoyed by a gradual rebound in international traffic owing to the economic recovery in Asia, is eyeing expansion. MD-International Affairs and Cooperation Lou Yongfeng told ATW Daily News last week on the sidelines of IATA's AGM in Berlin that the carrier is encouraged by the success of recently started routes. "This year we have opened two international routes. One is Shanghai-Chengdu-Bangalore and the other one is Beijing-Manila. So far both routes are operating quite well with an average load factor of more than 75%," he said.
Sichuan Airlines plans to launch Hebei Airlines on June 29 using the assets of subsidiary Dongbei Air. Sichuan this month took over troubled Dongbei by investing CNY400 million ($58.7 million) to increase its ownership stake to 97% from 33.5% ( ATWOnline, June 7). The launch of Hebei will be done in conjunction with the Hebei provincial government represented by Hebei Jizhong Energy Group.
JetBlue Airways said May RASM rose 13% from the year-ago month. It flew 2.3 billion RPMs, up 9.8%, while ASMs climbed 4.5% to 2.83 billion. Load factor increased 3.9 points to 81.3%. Gol flew 2.19 billion RPKs in May, up 14.5% year-over-year. Capacity rose 13.6% to 3.74 billion ASKs and load factor increased 0.5 point to 58.4%. Ryanair transported 6.44 million passengers in May, a 17% increase year-over-year. Load factor stayed flat at 81%.
AirBaltic and TAV Airports Holding signed an MOU to become joint venture partners for the possible development, construction and operation of a new passenger terminal at Riga International. The JV would be on a 50:50 shareholding basis. AirBaltic has lobbied for a new terminal able to handle 7 million passengers by 2014, which reportedly would require an investment of more than €92 million ($127.5 million) from the private sector ( ATW, Feb. 1).
Air Canada said yesterday that that it has "received a commitment" from GE Japan Corp. for a senior secured term loan facility of "up to $170.5 million" that will allow it to finance "a portion of the purchase price" for 16 aircraft that it currently leases and operates. The leased aircraft comprise 12 A319s and four 767-300ERs. It said it plans to buy eight of the A319s and the 767s next year and four of the A319s in 2012.
Aer Lingus, which left oneworld in 2007, wants to re-join an alliance and is considering all three global airline groupings. EI has received "some very strong interest" from members of each of the three alliances, CEO Christoph Mueller told ATWOnline on the sidelines of the IATA AGM in Berlin this week. An announcement, however, is not imminent, he said, adding that the process is still "in a very early stage."
El Al reported a first- quarter net loss of $16.5 million, narrowed 59% from a $39.8 million loss in the year-ago period, on a 21% rise in revenue to $420.5 million. President and CEO Elyezer Shkedy said the financial improvement is owing to "increased passenger traffic, strategic commercial planning, aggressively facing increased competition, reducing expenses, as well as significantly improving and expanding cargo activities." He added, "We will do everything possible to change the trend and turn losses into profits."
Airbus completed a busy ILA Berlin Air Show with commitments from Finnair and Germania for five A321s and five A319s respectively, completing a three-day period that featured $15.3 billion in new business including Emirates' mega 32-unit A380 buy.
SAS Group airlines flew 2.38 billion RPKs in May, up 4% year-over-year, while capacity fell 1.6% to 3.15 billion ASKs. Load factor was up 4.1 points to 75.6%. SAS Scandinavian Airlines flew 2.17 billion RPKs, up 3%, against a 3.1% cut in capacity to 2.84 billion ASKs. Load factor rose 4.5 points to 76.5%. United Airlines flew 10.26 billion consolidated RPMs in May, a 7.5% increase year-over-year. Capacity grew 3.3% to 12.31 billion ASMs and load factor increased 3.3 points to 83.3%.
Air France confirmed it will take delivery of its fourth A380 by the end of August and will operate it on a thrice-weekly Paris Charles de Gaulle-Tokyo Narita route starting Sept. 1. The flight moves to daily from Oct. 5. Tokyo will be the first destination in Asia to be served by Air France using an A380.
Cebu Pacific noted this week that it is now the Philippines' largest airline based on number of passengers flown on domestic and international routes. According to Civil Aeronautics Board data, CEB flew 2.45 million total passengers in the first quarter, nearly 110,000 more than Philippine Airlines, which carried 2.34 million systemwide during the period. CEB became the No. 1 domestic carrier last year when it captured just over 50% of the market and it held a 51% domestic share in the first quarter.
While claiming he did not want to make yet another controversial comment, Qatar Airways CEO Akbar Al Baker did just that at the IATA AGM this week when he said there is no need for consolidation among Persian Gulf airlines because the majority will "just disappear."
New Air India COO Gustav Baldauf told ATWOnline on the sidelines of the IATA AGM in Berlin that the carrier should return to profitability in 2-3 years. The merger between AI and Indian Airlines will be completed this year, he said, adding that the carrier will become a full member of the Star Alliance in 2011. AI units such as maintenance, catering and ground operations will be spun off as separate entities but will remain under the "Air India Group" umbrella, he said, explaining that "the system [will be] similar to Lufthansa."
AirAsia X will be spun off into a standalone, publicly traded company with an IPO targeted for the second half of 2011, subject to market conditions, AirAsia Group said yesterday. The long-haul arm was launched in November 2007 "and is now reaching sufficient scale economies to stand on its own instead of relying on services provided by AirAsia," the company stated. AirAsia also will seek separate listings for its Thailand- and Indonesia-based affiliates.
TAM yesterday signed an MOU with Airbus at the Berlin Air Show for 20 new A320 family aircraft and five additional A350-900s. If finalized, the deal would bring TAM's total number of A320 family aircraft on order for future delivery to 64 and its A350 orders to 27. It also has three A330-200s on order. The five A350-900s will be powered by Rolls-Royce Trent XWB engines. TAM did not select an engine for the 20 A320s.
Emirates' ambitions to build Dubai into "a central gateway to worldwide air travel" took another major step forward yesterday as it ordered 32 additional A380svalued at $11.5 billion at list prices, the single biggest order for the aircraft to date and bringing EK's total orders for the type to 90. The order agreement was signed in a ceremony yesterday at the Berlin Air Show witnessed by German Chancellor Angela Merkel, EK Chairman and CEO Ahmed bin Saeed Al-Maktoumand Airbus President and CEO Tom Enders.
Southwest Airlines flew 6.66 billion RPMs in May, up 3.5% from the year-ago month. Capacity climbed 0.05% to 8.63 billion ASMs while load factor rose 2.6 points to 77.2%. Delta Air Lines operated 16.28 billion system RPMs in May, up 2.7% year-over-year. Capacity rose 0.6% to 19.39 billion ASMs and load factor climbed 1.6 points to 83.9%.
