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.
British Airways said Friday that it plans to raise £600 million ($985 million) in cash "to ensure it has strong liquidity" to enable it to manage through "the current difficult trading conditions." CEO Willie Walsh, who has said several times recently that the airline is in a "fight for survival" ( ATWOnline, July 15), told reporters that the increased liquidity "puts to bed any suggestion that BA is in any sort of risk short term."
Emirates will operate one of its two daily Dubai-Birmingham flights with an A380 on Sept. 9 to celebrate Birmingham International's 70th anniversary. "We hope that many travelers from around the region will take advantage of this opportunity to fly on the superjumbo for the first time," President Tim Clark said.
Aer Lingus on Friday named Christoph Mueller CEO, replacing Dermot Mannion, who stepped down in April. Mueller, 47, most recently served as TUI Travel's aviation director, a position that gave him responsibility for the company's seven airlines. He joined TUI in early 2006 ( ATWOnline, Oct. 1, 2008). Prior to that, he was DHL Worldwide's CFO and a member of Duetsche Post's executive committee. EI said he also has held senior positions with Daimler Benz Aerospace, Lufthansa and Sabena.
Indian Civil Aviation Minister Praful Patel said the government is strongly considering providing a INR25 billion ($512 million) capital injection to Air India.
WestJet and Air France KLM launched their interline partnership, allowing AF KLM passengers to connect to Calgary-Vancouver WS flights as well as flights from both cities to Edmonton. In February the airlines said they had signed an MOU signaling their intention to codeshare by late 2009 or early 2010 ( ATWOnline, Feb. 5).
Acculynk announced that AirTran Airways has started offering customers the option to pay for online purchases with its PaySecure software, which offers users a PIN debit system that does not require enrollment or a password.
American Airlines is reevaluating the future of 757-200s in its fleet, Chairman and CEO Gerard Arpey revealed this week. Speaking to reporters and analysts following the release of second-quarter results highlighted by a steep revenue drop ( ATWOnline, July 16), he said the carrier is continuing to look for ways to operate more cost efficiently. While emphasizing that no decisions have been made, AA is trying to determine whether it wants its more than 120 757s to play a prominent role in its long-term future.
TAM flew 1.97 billion domestic RPKs in June, up 0.8% year-over-year. Capacity rose 4.7% to 3.05 billion ASKs and load factor fell 2.5 points to 64.7%. International traffic was up 18.1% to 1.42 billion RPKs, capacity rose 25.5% to 2.08 billion ASKs and load factor slipped 4.3 points to 68.3%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.63 billion RPMs in June, up 4.9% year-over-year, against a 1.9% rise in capacity to 1.98 billion ASMs. Load factor climbed 2.3 points to 82.3%.
Copa Airlines signed up for 13 additional 737-800s yesterday, an order worth approximately $1 billion at list prices, while Boeing said it has inked orders for eight more 737s from unidentified customer(s). The Copa commitment also includes eight options and brings to 27 the number of 737NGs the Panamanian carrier has on firm order. Delivery of the 13 new aircraft is scheduled to run from 2012 into 2015, with the eight options available between 2015 and 2017. Aircraft will be outfitted with Boeing's Sky Interior, designed to mimic the more modern cabin of the 787.
Lufthansa is moving forward with its effort to achieve €1 billion ($1.4 billion) in cost savings through the end of 2011, according to an internal letter to employees sent by Lufthansa Passenger Airlines Chairman and CEO Cristoph Franz.
Additional East Star Airlines debtors have applied to take over the troubled carrier despite the fact that China National Aviation Fuel Holding Co. and Shanghai YuField have made no progress in their appeals to acquire the Wuhan-based airline. The newly interested debtors include five CNAF subsidiaries and airports in Zhengzhou, Guangzhou, Wuhan, Nanjing, Qingdao, Shenzhen and Hangzhou.
Continental Airlines Chairman and CEO Larry Kellner will leave the airline at year end after five years at the helm and 14 with the Houston-based carrier and will be succeeded by President and COO Jeff Smisek, CO announced late yesterday.
Air Canada said all five of its domestic unions have ratified cost-neutral agreements on labor stability and pension relief following the International Assn. of Machinists and Aerospace Workers vote Wednesday. The union had rejected the deal two weeks ago ( ATWOnline, July 2).
International passengers traveling on premium tickets decreased 23.6% year-over-year in May, marking the 12th consecutive month in which premium traffic was in decline, IATA said yesterday, warning that a "de-globalization" may be occurring that could discourage international business travel and trade even as economies recover.
Singapore Airlines is retrofitting seven 777-300s with new first and business class seats and improvements to the economy cabin including new seat covers and IFE systems. It said the remainder of the 777 fleet will be upgraded "at a later date." First aircraft is due to enter service with the enhancements on July 22, with the rest introduced before year end.
American Airlines parent AMR Corp. said a "very difficult revenue environment" drove a second-quarter net loss of $390 million, narrowed 73.3% from a $1.45 billion deficit in the year-ago period when heavy noncash impairment charges dragged down the bottom line. But the loss actually was widened from a $298 million deficit last year absent special charges. The quarter was "obviously disappointing," Chairman and CEO Gerard Arpey said. "We've got to continue to anticipate a tough environment."
Virgin Atlantic Airways is asking passengers to register their disapproval of the planned increases in the UK's Air Passenger Duty, set for November 2009 and 2010 ( ATWOnline, Nov. 25, 2008). "The UK government has been quietly increasing APD by huge amounts and claiming it is an environmental tax. Yet, there's not a shred of evidence to suggest the £2 billion-plus currently raised is going towards environmental or sustainable projects," Virgin President Richard Branson said.
A Caspian Airlines Tu-154M crashed yesterday morning shortly after takeoff from Tehran, killing all 156 passengers and 12 crew onboard in the fourth major fatal commercial accident this year and the third in just a little over six weeks. Caspian Flight 7908 was on its way to Yerevan but slammed into the earth near Qazvin some 16 min. after takeoff, creating a 10-m.-deep crater, according to the Flight Safety Foundation's Aviation Safety Network. The 22-year-old aircraft "exploded on impact and disintegrated," it said.
Continental Airlines will record $44 million in special charges for the second quarter, $43 million of which comprises noncash impairments on owned 737-300/-500 aircraft and related assets ($31 million) and noncash charges related to the disposal of three -300s ($8 million) and "certain obsolete spare parts" ($4 million). CO decided one year ago to retire all -300s and a "significant portion" of its -500 fleet by January 2010 ( ATWOnline, June 6, 2008).
Air China expects its first-half profit to jump by more than 50% year-over-year from the CNY1.28 billion ($187.3 million) reported in the first six months of 2008. CA credited "stable growth of the domestic market" and lower fuel prices for the improvement. It transported 13.9 million passengers in the first five months of 2009, up 13.7% year-over-year, which included an 18.2% surge in domestic passenger boardings to 11.2 million. It also cited "favorable policy" from Beijing, cost control and gains on its fuel hedges.
Austrian Airlines Group yesterday said it agreed with all works councils to reduce personnel expenses by 5% from 2010 to 2015, saving the company €150 million ($209.6 million). "The details of the package are rapidly being negotiated by the social partners. It will not include any extra job cuts beyond the 1,000 posts already announced," AAG said ( ATWOnline, July 3).
Cathay Pacific Airways and Dragonair flew 6.67 billion RPKs in June, down 14.1% from the year-ago month. Capacity fell 9.1% to 8.67 billion ASKs, dropping load factor 4.5 points to 76.8%. Iberia flew 4.34 billion RPKs in June, down 5.1% year-over-year. Capacity fell 7.3% to 5.23 billion ASKs and load factor rose 1.9 points to 83%. EasyJet transported 4.1 million passengers in June, up 0.8% year-over-year. Load factor dipped 0.6 point to 86.3%.
