Southwest Airlines sees a future for the long-haul, low-cost model and can envision someday operating intercontinental routes, Director-Network Strategic Planning Lee Lipton told ATWOnline at the World Route Development Forum in Beijing, while emphasizing that there is "no timetable" for such a move.
Ryanair will open bases at Bari and Brindisi early next year, its 35th and 36th, with a combined three aircraft and an investment of $210 million. The LCC will base two aircraft at Bari in January and launch flights on Jan. 14 to Brussels South Charleroi, Paris Beauvais (each four-times-weekly) Treviso (six-times-weekly), Genoa (thrice-weekly) and Karlsruhe/Baden (twice-weekly). In February it will begin serving Trapani (four-times-weekly), Dusseldorf Weeze, Valencia (each thrice-weekly) and Cagliari (twice-weekly). It will operate 16 routes in total from the airport.
Jet Airways' pilots ended a five-day sickout over the weekend after the airline agreed to reinstate pilots it had fired. About half of the carrier's 760 pilots called in sick Sept. 8-12, forcing the cancellation of more than 1,000 flights ( ATWOnline, Sept. 11). The airline said in a statement that an agreement reached with the National Aviators Guild union after two days of talks was "amicable."
Delta Air Lines now expects a 3%-4% operating margin in the third quarter, up from the 1%-3% forecast in July, and a breakeven margin for the full year, it said in a US Securities and Exchange filing released yesterday.
Air China and China Eastern Airlines are sticking to their fuel hedges despite the government's concern over heavy losses suffered last year and recent indications that Beijing intends to impose tighter control on the practice.
William DeCota, aviation director of the Port Authority of New York and New Jersey, died suddenly on Sept. 11. He was 51. DeCota joined the PA in 1982 as a financial analyst. He was named head of the aviation division in January 2000. In that role, he was responsible for running the world's largest airport system, comprising New York JFK, LaGuardia, Newark, Stewart and Teterboro Airports. Earlier this year, DeCota and Air Transport Assn.
Bahrain Air plans to place a firm order for three A320 family aircraft in January, MD Ibrahim Abdulla Al Hamer told reporters. "The company had planned to buy about four Airbus planes. Due to the current international financial issues there is a delay in the purchasing process and a reduction in the number to three airplanes." It signed a letter of intent for up to six aircraft last summer ( ATWOnline, Aug. 27, 2008).
Boosted by a gradual economic recovery, the global airline industry is expected to recover in 2010, industry players concluded at yesterday's Global Strategy Summit, part of the World Route Development Forum in Beijing.
Hawaiian Airlines pilots represented by the Air Line Pilots Assn. voted to authorize a strike in case contract talks with the carrier break down and the National Mediation Board declares an impasse. HA and ALPA are scheduled to meet with a mediator on Oct. 12. "There has never been a strike in the 80-year history of our airline, and we don't want one now. But if that's what it takes to win a fair and reasonable contract, our pilots have told us loud and clear that they're ready to take that final step," HA ALPA unit Chairman Eric Sampson said.
Qantas will operate three sightseeing flights over Antarctica during the southern summer with its new A380. It has partnered with Antarctica Sightseeing Flights of Melbourne since 1994 using 747-400s. The first A380 flight is scheduled for Dec. 31 from Melbourne, the second on Jan. 24 from Sydney and the third on Feb. 14 from MEL. The New Year's Eve flight will be under the command of Capt. John Dennis, who has flown more than 40 of QF's 85 747 flights to the ice. Fares start from A$999 ($859) for the 14-hr. flight, which includes two meals.
China Southern Airlines is applying for another capital injection from the government, according to Chairman Si Xianmin. Beijing gave the airline CNY3 billion ($438.7 million) last year ( ATWOnline, July 30). "We hope to get more government capital, but we don't have the final say," Si said.
Anxious for a financial boost in the wake of a ¥99 billion ($1.08 billion) loss in its fiscal first quarter ended June 30 and an increasing debt burden, Japan Airlines launched negotiations with oneworld partner American Airlines and SkyTeam rival Delta Air Lines concerning a potentially significant investment, according to multiple sources.
FedEx Corp. expects earnings for its fiscal first quarter ended Aug. 31 to exceed its previous guidance of $0.30-$0.45 per diluted share. It now expects earnings of $0.58 per diluted share, which would represent a 53% decline from the year-ago quarter. Fiscal second-quarter earnings are expected to be $0.65-$0.95 per diluted share thanks in part to "a continued modest recovery in the global economy," it said. CFO Alan Graf Jr.
WestJet said it expects its third-quarter unit revenue to be down 16%-18% year-over-year. It flew 1.33 billion RPMs in August, down 4.7%, against a 0.4% fall in capacity to 1.57 billion ASMs. Load factor dropped 3.9 points to 84.5%. Aer Lingus flew 1.72 billion RPKs in August, a 2.3% increase year-over-year. Capacity fell 0.7% to 2.07 billion ASKs, lifting load factor 2.4 points to 83%. Gol flew 2.03 billion RPKs in August, a 6.9% year-over-year increase, against a 4.2% hike in capacity to 3.43 billion ASKs. Load factor rose 1.4 points to 59%.
US President Barack Obama announced his intention to nominate Erroll Southers as assistant secretary, Dept. of Homeland Security-Transportation Security Administration. Southers is assistant chief for Los Angeles World Airports' Office of Homeland Security and Intelligence and associate director of the University of Southern California's Center for Risk and Economic Analysis of Terrorism Events. Lufthansa CFO Stephen Gemkow was named chairman of the supervisory boards at Lufthansa Cargo, Lufthansa Technik, LSG Lufthansa Service Holding and Lufthansa Systems.
Air France KLM is preparing an in-depth restructuring of its cargo business including a further reduction of its freighter fleet, transfer of all remaining freighters to its Martinair subsidiary and a 20%-30% increase in rates, according to Les Echos. When contacted by ATWOnline, AF KLM said it would not comment on the substance of the report while contradicting several figures used by the newspaper.
Avient, the Zimbabwe-based DC-10 freighter operator, said it has moved its European hub from Vatry to Liege. It said services are uninterrupted by the abrupt move and that it will continue to specialize in Europe-Africa flights.
AirBaltic said it "very much appreciates and welcomes" a meeting between the transport ministers of Latvia, Lithuania and Estonia and their discussions regarding a pan-Baltic flag carrier, while claiming that it already fits that profile. The Riga-based airline plans to expand its Tallinn operation with flights to Turku beginning Oct. 1 and is "prepared to become involved in future negotiations," according to President and CEO Bertolt Flick. "If the airline's capital base is expanded, airBaltic will expand even more rapidly than before in the Baltic states," he said.
WestJet announced an offering of 13.4 million common and variable voting shares, with an overallotment option of up to 2 million shares, which it expects to produce proceeds of C$150-C$172.5 million ($139-$159.9 million). A syndicate of underwriters led by CIBC will sell the shares at C$11.20 each, and the offer is expected to close on Sept. 30. Frontier Airlines Holdings said its plan of reorganization, which includes its purchase by Republic Airways Holdings, was confirmed yesterday by the US Bankruptcy Court.
Korean Air launched the second phase of its $200 million fleet upgrade and this month will begin installing new seats and an on-demand inflight entertainment system across all classes in its 777s and A330s. Work on 70 aircraft is expected to continue through April 2011. New deliveries will come with the product already installed. By 2014, all 96 of KE's mid- and long-haul aircraft will feature the upgrades.
Air Transat parent Transat A.T. reported net income of C$30.5 million ($28.3 million) for its fiscal third quarter ended July 31, reversed from a net loss of C$895,000 in the year-ago period, on a 4.7% decline in revenue to C$819.4 million. The primary driver of the improved result was a C$44.4 million noncash fuel hedge gain in the period compared to a C$4.7 million hedging loss in the 2008 quarter.
LAN Airlines is feeling the effects of the industry crisis but said it expects to report a profit this year thanks to its domestic strength in Chile, Argentina, Peru and Ecuador and a robust cash position. Company officials in Santiago said the company generated $248 million in net income in the 12 months ended June 30 and they expect some $4 billion in revenue in 2009 on a 15% increase in passenger numbers to 15 million. LAN claimed its cash position is strong, with $700 million in cash and equivalents. It was $69.2 million in the black through the first six months.
Jet Airways and the National Aviators Guild representing the carrier's 760 pilots will meet in New Delhi at the behest of top government labor officials in an effort to resolve the dispute that has led to nearly half Jet's pilots calling in sick for the past three days, severely disrupting its flight schedule. Jet Chairman Naresh Goyal, who has accused the pilots of holding the airline "hostage" with an "illegal" work action ( ATWOnline, Sept. 10), met yesterday with Indian Labor Minister Mallikarjun Kharge.
Southwest Airlines and negotiators for the Southwest Airlines Pilots Assn. reached a new tentative labor agreement, though the union's board has not decided whether to endorse the accord. In June, the LCC's pilots narrowly rejected ratification of a prior deal ( ATWOnline, June 4). The agreement reached yesterday would last two years before becoming amendable.
