Air New Zealand said May yield rose 7.1% year-over-year, due largely to foreign exchange gains. Excluding those, yield climbed 1.7%. It flew 1.72 billion RPKs during the month, down 11.4%, against a 13.9% decline in capacity to 2.28 billion ASKs. Load factor rose 2.2 points to 75.7%. Allegiant Air flew 381.1 million RPMs in May, up 23.9% from the year-ago month. Capacity rose 22.9% to 420.5 million ASMs and load factor increased 0.7 point to 90.6%.
United Airlines said it will cut an additional 600 flight attendant positions this year, bringing the total number of flight attendant job reductions planned in 2009 to more than 2,000. The cuts reportedly will begin Aug. 31. "We will offer our flight attendants a voluntary package and hope to receive enough responses to prevent any involuntary furloughs," the airline said. UA and cabin staff represented by the Assn. of Flight Attendants-CWA in April launched negotiations on their labor contract that is amenable Jan.
Clear program, which offered passengers the opportunity to speed through designated security lanes at 18 US airports for a $200 annual fee, abruptly ceased operations Monday night. Parent Verified Identity Pass said on its website that it "has been unable to negotiate an agreement with its senior creditor to continue operations" and that it "will continue to secure [customer data] and will take appropriate steps to delete the information." However, it said it could not issue refunds "because of its financial condition."
Republic Airways Holdings has offered to buy bankrupt Frontier Airlines Holdings for $108.8 million, which if approved would allow Frontier to exit bankruptcy and increase Republic's stable of carriers.
US Air Transport Assn. said yesterday that US airline passenger revenue dropped 26% year-over-year in May, the seventh straight month of decline. The number of passengers traveling on US airlines fell 9.5% year-over-year while the average price to fly 1 mi. decreased 17.6%. "Revenue declines extended beyond the mainland United States to the transatlantic, transpacific and Latin markets," ATA said.
Ryanair will "freeze growth" at its nine UK bases "with immediate effect" in response to a drop of 4.5 million passengers at BAA's seven UK airports through the year's first five months. The LCC blamed both the airports operator and the country's £10 ($16.43) air passenger duty for the decline.
SkyEurope Airlines received court permission to operate and reorganize under creditor protection, during which it will continue to fly its full schedule. CEO Jason Bitter said the LCC will operate "without disruption" and that suppliers "will be fully paid" during the restructuring period, which was not defined. It appointed Reynolds Partners to help it secure new investment.
Air Canada and flight attendants represented by the Canadian Union of Public Employees reached agreement on a 21-month labor agreement extension, finalizing the carrier's effort to secure "labor stability" and pension relief from its workforce ( ATWOnline, June 17). "These tentative agreements will allow us to move forward to the next milestones--obtaining the necessary governmental measures and approvals for the pension funding arrangement and raising new financing.
Singapore Airlines and Air Line Pilots Assn.-Singapore reached an agreement under which pilots will take one day of leave without pay each month and a cut of 65% from an additional day's pay effective July 1. The groups reached a similar deal in May that now is superseded ( ATWOnline, May 5). SIA plans to decommission 16 aircraft and cut capacity by 11% during the current fiscal year ending March 31, 2010.
BAE Systems Asset Management announced the sale of one BAe 146-100 and three ATPs to Miami-based lessor Regional One. The three ATPs are on operating lease with SATA Air Acores.
Virgin Atlantic Airways and AerCap yesterday announced a deal that will see 10 A330-300s join the fleet in 2011-12 as the carrier moves to fill the gap caused by the delayed introduction of its 15 787-9s, now scheduled to begin arriving in 2013.
British Airways will press ahead with the launch of its new business class-only service between London City and New York JFK, setting Sept. 29 as the date of the first flight. There will be a daily return service except Saturdays when LCY is closed, and flights will increase to twice-daily from mid-October. Tickets go on sale today. "In the harshest trading environment airlines have experienced, we believe it is more important than ever to embrace the future and innovate. That is what this historic new route is all about," CEO Willie Walsh said.
Lufthansa took significant steps toward its acquisition of both bmi and Brussels Airlines yesterday, resolving a financial dispute with the former and receiving European Commission approval for the latter. LH announced an out-of-court settlement with the UK company regarding its purchase of Chairman Michael Bishop's 50%-plus-one-share stake, a transaction placed in jeopardy last month when Bishop took LH to court over the German company's demand for a recapitalization ( ATWOnline, May 22).
Austrian Airlines Group flew 1.38 billion RPKs in May, down 18.8% year-over-year, against a 13.9% fall in capacity to 1.95 billion ASKs. Load factor slipped 4.2 points to 70.8%. Norwegian said May unit revenue fell 2% year-over-year to NOK0.46 (7.17 cents) while yield was steady at NOK0.59. It flew 909 million RPKs during the month, up 19%, against a 21% increase in ASKs to 1.18 billion. Load factor fell 2 points to 77%.
The Japanese government is preparing to extend a loan of approximately ¥100 billion ($1.04 billion) to Japan Airlines, Finance Minister Kaoru Yosano said. Speaking to reporters yesterday, Yosano said he received a request from Transport Minister Kazuyoshi Kaneko for the loan through the Development Bank of Japan. "We hope to cooperate through DBJ loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said.
Air India announced the formation of a four-member committee that will examine its labor agreements and identify INR5 billion ($102 million) in annual savings. AI said employee costs currently exceed INR30 billion per year. "Besides reduction in wage cost[s], Air India is also looking at improving productivity of employees, elimination of restrictive work practices and reducing wasteful expenditure," it said. The committee will issue its report by July 15.
Iberia Maintenance signed a three-year engine MRO agreement with Russia's Yakutia Airlines covering two Rolls-Royce RB211-535-E4s and a contract with India's Blue Dart Aviation for MRO on three RB211-535-C37s powering its 757-200 freighters.
The Argentine government outlined its plans to "modernize" newly nationalized Aerolineas Argentinas and Austral Lineas Aereas in a statement released Friday and indicated its commitment to a long-haul Airbus order. The airlines were brought under state control six months ago ( ATWOnline, Dec. 22, 2008). AR recently took delivery of a new 737-700, the first new aircraft purchased for the carrier in 16 years. A second will arrive before July and nine "similar aircraft" will be added on lease this year.
Airbus announced aircraft MOUs with Turkish Airlines and Paramount Airways Friday, concluding a reasonably successful Paris Air Show week with firm orders for 58 aircraft worth nearly $6.4 billion and MOUs for an additional 69 planes worth $6.5 billion. THY signed its MOU for five A330-300s and two A330-200s (increased takeoff weight version) for delivery starting in August 2010. Its Airbus fleet currently comprises 46 A320 family aircraft, five A310s, seven A330s and nine A340s. It said its commitment also includes three options.
Boeing is expected to start slow-speed taxi tests of its first 787 on June 25, according to factory insiders. There had been some suggestions that the first fight would be around that date but the company now may opt for the morning of June 27 or 28. The second 787, ZA002, already is in ANA livery, has started its APU and is expected to be in the air shortly after ZA001.
Lufthansa's forecast of a "distinctly positive" full-year operating profit is in jeopardy, it said Friday, and it now is focused on "avert[ing] an operating loss in the current financial year." Chairman and CEO Wolfgang Mayrhuber told ATWOnline two weeks ago that the company expected a 10% drop in passengers and a 20% fall in revenue this year ( ATWOnline, June 10). It reported a €256 million first-quarter net loss and a €44 million deficit on the operating level.
Assn. of European Airlines released winter schedule (November-March) performance data indicating a slight improvement in baggage handling to 13 missing pieces per 1,000 passengers compared to 15.5 in the 2007-08 winter. Passenger numbers fell 6% year-over-year and flights dropped 9%, AEA noted. Of the 26 members reporting baggage data, Turkish Airlines performed the best at 4.5 missing bags per 1,000 passengers, followed by Air Malta (4.6) and Virgin Atlantic Airways (4.9). Iberia fared worst at 19.2, followed by Air France (18.9) and TAP Portugal (17.3).
Qatar Airways allegedly is considering plans to cancel the entirety of its Boeing order owing to repeated 787 delays, according to Dow Jones. It has orders for 60 787s including options and 24 777s including freighters and options. "The writing is in the wall for Boeing and they don't care. They're too busy having lunches and dinners," CEO Akbar Al Baker told the news service, adding that QR's issues have "gone way beyond" compensation. "Boeing doesn't realize how much they're hurting their customers' plans.
Air France KLM last week launched a convertible bond issue for pricing on June 23 designed to raise €575-€661 million ($801.8-$921.7 million), which it will use to fund fleet expansion and extend debt maturity. AF already has an outstanding €450 million convertible bond issue that matures in 2020. Citi recently indicated in an investment research report seen by ATWOnline that Europe's three largest flag carriers may have to raise new capital over the next 1-2 years due to heavy capital expenditure commitments and poor operating cash flow in the near term.
