Assn. of European Airlines expressed concern over "the continuing trend on the part of airports across Europe to increase the fees they charge to their airline customers in order to compensate themselves for lower traffic levels during the current recession." It said the practice particularly is evident in Germany, where Frankfurt Airport is proposing an 8.4% boost next January to fund future expansion on top of a 4.6% hike for "central infrastructure." Munich announced a 4% increase in charges.
Niki wants 50% of the traffic rights between Vienna and Eastern Europe if Lufthansa's acquisition of Austrian Airlines Group is confirmed, President Niki Lauda told ATWOnline. "So far AAG has all the traffic rights to Eastern Europe, except our daily Vienna-Moscow DME service," Lauda said. "We have no idea how and if the merger will be completed. My company has to answer an additional 40 question from the European Commission regarding the process" by July 27.
Ryanair said it "will continue to explore the concept of 'fare-free standing' flights with Boeing and the relevant aviation authorities in the US and EU" after 66% of 120,000 passengers participating in an online poll said they would be willing to stand in the cabin on flights 1 hr. or shorter if the fare was free. The LCC said 42% would stand for half price and 60% felt standing should be an option ( ATWOnline, July 7).
Delta Air Lines posted a second-quarter net loss of $257 million, narrowed from a $1.04 billion deficit in the year-ago period, with results for both quarters heavily affected by special charges. For the current period, $58 million in expenses related to DL's acquisition of Northwest Airlines and fuel hedge losses of $390 million pushed it into red. Absent these charges, it would have reported a net profit of $191 million. In the year-ago period, it would have earned $137 million excluding $1.3 billion in special charges largely related to goodwill impairment.
Ryanair will reduce winter schedule capacity at London Stansted by 40%, operating just 24 aircraft from the airport compared to the present 40. CEO Michael O'Leary said the decision "shows just how much [UK Prime Minister] Gordon Brown's £10 ($16.46) tourist tax and the BAA Monopoly's high airport charges are damaging London and UK tourism and the British economy generally," while reiterating that STN is one of Ryanair's two most expensive bases (along with Dublin).
Continental Airlines reported a second-quarter net loss of $213 million, widened from a $5 million deficit in the year-ago quarter, and announced it will cut 1,700 additional jobs "across the company" to mitigate the impact of "significant declines in high-yield traffic." Speaking to analysts and reporters, CO executives said business passengers have "curtailed travel" or switched to economy-class tickets. Compounding the 27% year-over-year dip in premium tickets are demand-stimulating low fares on economy seats, President and COO Jeff Smisek said.
Snecma won a six-year engine service per hr. contract from WindJet covering the CFM56-5As powering the Italian airline's A319s and A320s. AJ Walter Aviation signed a power-by-the-hr. contract with Belle Air covering the Albanian airline's A320 family aircraft. Belle plans to operate up to seven Airbus narrowbodies within three years.
East Star Airlines asked CAAC for permission to resume operations despite a Wuhan court's rejection of takeover offers from China National Aviation Fuel Holding Co. and Shanghai YuField. East Star was forced to suspend operations and enter bankruptcy owing to its heavy debt burden and the March collapse of a share sale deal with Air China parent CNAC ( ATWOnline, July 17).
Delta Air Lines is adding a $5 charge for each of the first two pieces of luggage checked at an airport ticket counter, kiosk or curbside on domestic tickets purchased on/after July 16 for travel from Aug. 4. Bag fees paid online (DL charges $15 for the first bag and $25 for the second) will not be subject to the $5 fee.
United Airlines parent UAL Corp. posted a second-quarter net profit of $28 million largely owing to $305 million in noncash mark-to-market fuel hedge gains, much improved over a $2.74 billion loss in the year-ago period when goodwill impairment charges dragged down the bottom line.
Southwest Airlines returned to profit after three consecutive quarters in the red, earning $54 million in the second quarter, down 83.2% from $321 million in the year-ago period, although it warned that "based on weak travel demand and fuel price volatility, we cannot predict a profitable third quarter 2009."
Lufthansa Systems reached three-year deals with Bulgaria Air and Hemus Air to provide its Lido Airport/Obstacle data. It also renewed its contract with Avianca for the use of its ProfitLine/Price pricing solution for another two years.
Boeing joined the forward and aft fuselage sections of the first 747-8 freighter with the wing and center section in Everett. The horizontal stabilizer also was installed, with the tail cone and vertical fin expected to be added today. Nine customers have placed orders for 78 aircraft.
Lufthansa is considering cutting one flight attendant from each long-haul flight, according to an internal document cited by Neue Rhein Zeitung. The move, if enacted, would save the airline approximately €42 million ($59.6 million) and affect 750 fulltime jobs. It also is looking at ways to increase its ability to reduce its cabin staff on flights with lower load factors. A spokesperson would not confirm or deny the report but told ATWOnline that LH is "calculating everything" in terms of cutting costs but that "nothing is decided now. Everything is in flux."
TAM said it will issue 600 nonconvertible bonds worth a combined BRL600 million ($313 million) on July 24, scheduled to expire on July 24, 2013. It said the proceeds will be used to "reinforce" its working capital.
US National Transportation Safety Board Chairman Mark Rosenker announced his resignation yesterday, effective when a new chairman/member is appointed. He is the second member of the five-member board to announce their departures this week ( ATWOnline, July 21) and the third this year ( ATWOnline, Feb. 23).
Air France KLM Group rebuffed French media reports claiming the company will report a higher operating loss in the fiscal year ending March 31, 2010, than the €129 million ($1.15 billion) deficit suffered in 2008-09 ( ATWOnline, May 20) and that it will run low on cash in 2010 amid declining demand and higher fuel prices.
Rex Regional Express sold its 1.8% stake in Brisbane-based Virgin Blue. The regional confirmed yesterday to The Australian that its Singaporean investors have "completely exited" from their investment in Blue. The move comes amid continuing speculation that Virgin is courting a strategic investor, and the airline declined to comment on fresh claims that it is pursuing a Middle Eastern carrier. Rumors have surrounded Blue for the past three months, with various analysts and investment houses linking it to a variety of Middle East airlines and Air New Zealand.
Cargoitalia received its AOC from Italian civil aviation authority ENAC allowing for the start of operations with its recently delivered MD-11F. The carrier, which relaunched under the new ownership of ALIS (66.7%) and Intesa SanPaolo (33.3%), will take delivery of a second MD-11F in the coming weeks and a third before year end. It has orders for eight A330-200Fs that will enter service beginning in 2012.
US National Transportation Safety Board Member Kathryn O'Leary Higgins has resigned effective Aug. 3. She joined the five-member board in January 2006.
Air Canada said it received approval from retirees, managers and administrative, technical and support employees for a 21-month moratorium on pension fund contributions and fixed payments for the 2011-13 period similar to the deals ratified last week by its five Canadian unions ( ATWOnline, July 17).
Gol flew 2.07 billion RPKs in June, a 7.1% decline year-over-year. Capacity fell 4.9% to 3.25 billion ASKs and load factor dropped 1.6 points to 63.8%. Austrian Airlines flew 1.44 billion RPKs in June, down 17.9% year-over-year. Capacity dropped 15.9% to 1.97 billion ASKs and load factor slipped 1.8 points to 73%. Hawaiian Airlines flew 701.6 million RPMs in June, up 7.4% year-over-year, against a 3% rise in capacity to 825.3 million ASMs. Load factor rose 3.5 points to 85%.
Shanghai-based Juneyao Airlines is targeting CNY50 million ($7.3 million) in net earnings this year, a result that would dwarf the CNY11.5 million profit reported in 2008, according to Chairman Wang Junjin.
