Porter Airlines expects to turn a profit in 2009, President and CEO Robert Deluce told Reuters. The Toronto-based regional is privately held and does not release its financial results. Deluce also said that "there is likely to be a follow-on aircraft order of some sort" to its commitment for 20 Q400s ( ATWOnline, June 30). It will be operating 18 Q400s by next month, the news service reported.
Aer Lingus may stop operating its loss-making routes to the US, especially those from Shannon, and transfer them to a third party or codeshare partner as part of initiatives to address its long-haul deficits, according to Irish press reports. EI CEO Christoph Mueller stated that he appreciates the "national importance" of the carrier's American routes but said his airline is "not a charity," suggesting that the Shannon-New York JFK route has survived only because of pressure from the Irish government, IrishCentral reported.
US National Air Traffic Controllers Assn. elected Executive VP Paul Rinaldi as president for a three-year term beginning Oct. 17. Rinaldi works at Washington Dulles. Jazz Air promoted Senior VP-Employee Relations Colin Copp to CAO and Senior VP-Operations Support Jolene Mahody to COO.
Naverus said China Eastern Airlines, supported by CAAC, successfully completed an RNP-validation flight at Yushu Airport in the Himalayas using an A319 on Sept. 15.
Lufthansa Flight Training last week took delivery of an A380 cockpit simulator from Thales. Training sessions at its Frankfurt center will begin in January.
Airports Council International-North America came out in support of limits to runway and tarmac delays, with President Greg Principato saying the organization "supports airlines working with Congress and the Dept. of Transportation to determine specific deadlines," and that "airlines should be held accountable for adhering to the predetermined deadlines." ACI-NA has filed motions with DOT supporting enhanced protections for passengers, such as increased compensation for delayed or cancelled flights and lost baggage.
American Airlines parent AMR Corp. yesterday announced concurrent offerings of 30 million shares of common stock and $250 million principal amount of its convertible senior notes due 2014. AMR said it would grant underwriters of both offerings 30-day options to purchase up to 4.5 million additional shares and $37.5 million principal amount of notes to cover any overallotments. It said it would use the net proceeds for general corporate purchases.
Lufthansa plans to cut 15% of the 1,800 employees working in central operations, such as those in the communications and financial departments, a spokesperson confirmed to ATWOnline. The company will reduce the number of positions by 5% annually in 2010-12. "During the same period, we want to reduce our nonpersonnel costs by 7% annually," the spokesperson said.
Finnair announced the issue of a €120 million ($176.7 million) domestic hybrid bond with a coupon rate of 9% per year. The bond was oversubscribed, the company said, and will be used to "finance the investment program and to strengthen the group's capital structure." Nordea Markets was appointed sole bookrunner. A hybrid bond is subordinate to the company's other debt obligations and is treated as equity on IFRS statements, Finnair said.
International Bureau of Aviation said at last week's SpeedNews Annual Aviation Industry Suppliers Conference in Toulouse that the value of new single-aisle aircraft has dropped 8% in the past year. New 737-800s were valued at $42.2 million in the 2009 second quarter, down from $45.9 million in the 2008 quarter, while the value of a new A320 declined to $40.2 million from $43.5 million. Average lease payments also fell, to $340,000 per month from $415,000 per month for the -800 and to $320,000 from $395,000 on the A320, IBA said.
Virgin Blue is hoping to take advantage of the global downturn to order up to 50 new 737s at "bargain prices," CEO Brett Godfrey told ATWOnline. "Now is a great time to buy. We are in the market because the market is right and we don't want to miss the opportunity," he said. Blue operates 65 aircraft comprising 50 737-700s/-800s and 15 E-Jets. It now is considering the -900ER, which can seat up to 215 passengers, 26 more than its largest current aircraft.
Mexicana and its MexicanaClick and MexicanaLink subsidiaries officially will become part of oneworld on Nov. 10, the alliance announced yesterday ( ATWOnline, April 11). Mexicana's network spans 67 destinations in 14 countries (including 37 in Mexico). Addition of the mainline and the two subsidiaries, which will join as affiliate members, will add 26 destinations to the oneworld map--24 in Mexico along with Oakland and Edmonton. Oneworld airlines currently serve 13 Mexican destinations.
Air France KLM Group will trim winter ASKs by 2% year-over-year, comprising a 1.8% reduction in its long-haul network and a 2.9% cut in medium-haul flying. Air France and its subsidiaries will lower winter capacity by 1.7%, while KLM will cut by a more comprehensive 4%. The carriers insisted that connectivity at their Paris Charles de Gaulle and Amsterdam hubs will be maintained.
Continental Airlines said mainline domestic advanced booked seat factor for the next six weeks is running 1-2 points higher than the year-ago period, with transatlantic bookings 6-7 points higher. It now expects third-quarter consolidated and mainline load factors to be up approximately 3 points year-over-year to 84%-85% and 85%-86% respectively, it said in an investor update.
British Airways said Friday that it has gotten involved in American Airlines' talks with Japan Airlines as part of an effort to keep JAL in the oneworld fold, while Japan's new government indicated it may not be fully supportive of the carrier's restructuring plan.
American Airlines expects third-quarter consolidated unit revenue to fall 14.3%-15.3% year-over-year, it said in a US Securities and Exchange filing Friday. Mainline RASM is forecast to fall 14.5%-15.5%, it said, and parent AMR Corp. expects to end the period with a cash and short-term investment balance of at least $3.7 billion, including some $460 million in restricted cash and short-term investments. Last week the company said it had obtained $2.9 billion in new liquidity and aircraft financing ( ATWOnline, Sept.
Southwest Airlines Chairman, President and CEO Gary Kelly said the chances of reporting a full-year profit "are better today than they were 60 days ago," Dow Jones reported. "We haven't conceded that we will lose money for the year," he said. SWA was $37 million in the red through the first six months of 2009 and said in late July that "based on weak travel demand and fuel price volatility, we cannot predict a profitable third-quarter 2009." Kelly said SWA's 2009 result will hinge on fuel costs.
Jet Airways lost approximately $80 million in revenue during the six-day work action by its pilots that ended early last week, Executive Director Saroj Datta told CNBC ( ATWOnline, Sept. 15).
Amsterdam Airport Schiphol said it will not raise its airport charges on April 1, 2010, "in view of the current economic situation." It set its charges as of April 1, 2009, in late 2008 and said those were reduced by an average 10% from the prior year.
AerCap Holdings and Genesis Lease Ltd., two midsize operating lessors, announced Friday that they will merge in an all-stock transaction valued at $1.75 billion. Genesis will become a wholly owned subsidiary of Amsterdam-based AerCap and its stockholders will receive one share of AerCap stock for each Genesis ADS (each ADS represents one Genesis common share). AerCap's ordinary shares were valued at $8.81 at the market close on Sept. 17.
Amadeus IT Group is considering an IPO and has retained Rothschild & Sons to evaluate the possibility, sources close to the deal told Bloomberg News. No decision has been taken, but an IPO would allow current shareholders to sell their shares. Amadeus has been majority owned since 2005 by WAM Acquisition, whose shareholders are private equity firms BC Partners and Cinven. WAM owns nearly 53%, Air France holds 23% and Iberia and Lufthansa each have about 12%. All shareholders declined comment, Bloomberg said.
