TUI Travel is expecting annual savings of €40 million ($54 million) thanks to the new alliance between its TUIfly LCC and Air Berlin, TUI CEO Michael Frenzel said last week in Hanover. AB will take over 17 aircraft from TUIfly in order to operate scheduled shuttle services, while TUIfly will operate 21 aircraft on charter routes ( ATWOnline, March 31). Each company took a 19.9% share in the other and the cooperation is set to start on Oct. 1, pending approval from competition authorities.
Emirates said it was "surprised at the revelations" in the EU report last week regarding the online ticket sales "blacklist" on which it was named as one of 12 airlines not fully complying with all transparency and clarity requirements for selling tickets via its website. "As a responsible international company, Emirates adheres to all regulations and requirements of the countries in which we operate," Divisional Senior VP-Commercial Operations Worldwide Richard Vaughan told ATWOnline via e-mail.
Lufthansa Technik and eJet Services said they will expand their existing relationship offering comprehensive maintenance and operating support for private VIP-converted CRJ aircraft to include air transport CRJs operated by smaller airlines. Program will be expanded to other types as well. Launched in 2008, the joint program offers low-utilization and small-fleet operators "a comprehensive, global package of nose-to-tail maintenance and operating support."
Turkish Airlines posted a 24% first-quarter net income increase to TRY155 million ($98.5 million) on a 17% rise in revenue to TRY1.28 billion. Passengers carried lifted 8% to 4.9 million and cargo transported rose 7% to 48,000 tons. Passenger traffic heightened 9% on a 15% lift in capacity. Load factor fell 3.7 points to 66.1%. THY said lower fuel prices are "a positive signal" and it believes it can "sustain positive results for the coming periods."
Gol reported first-quarter net income of BRL61.4 million ($29.1 million), reversed from a net loss of BRL20.5 million in the year-ago period, despite a 5.4% drop in revenue to BRL1.52 billion. The carrier said its profit resulted from lower fuel costs, "cost control and yield management" and synergies from Gol/Varig "operational consolidation" ( ATWOnline, Oct. 13, 2008). Expenses lowered 9.2% to BRL1.41 billion and operating income more than doubled to BRL105.1 million from BRL49.2 million last year.
Singapore Airlines blamed a severe deterioration in operating conditions in its fiscal fourth quarter ended March 31 and losses on fuel hedges for a 48.2% drop in its fiscal full-year net profit to S$1.06 billion ($722.9 million).
OAG Cargo Solutions signed an agreement with IBS Software Services to develop AFRA-2, its next-generation Air Freight Rates application. The application enhances interaction between airlines, GSAs and freight forwarders on the distribution, management and selection of real-time airfreight rates.
US Airways Group said last week that it expects to raise $234 million, up from $150 million, in aggregate net proceeds from the sale of common stock and convertible notes after underwriters exercised in full their options to purchase additional securities to cover overallotments ( ATWOnline,May 7).
Airbus parent EADS reported first-quarter net income of €170 million ($232 million), down 40% from €285 million last year, as net commercial aircraft orders dropped precipitously year-over-year to eight compared to 395 in last year's first three months.
SR Technics appointed Andre Wall as COO. He also will become a member of the SR Technics Group executive board. SRT said that "the newly formed Operations Division will be home to all operating units within the group." Prior to joining SRT, Wall spent two years as COO of Jet Aviation in Zurich. Before that, he spent three years as president and CEO of MTU Maintenance in Berlin-Brandenburg.
Air China and China Eastern Airlines insisted that fuel hedging is a solid long-term strategy and pledged to continue with it to insulate them from price fluctuation despite huge hedging losses for full-year 2008 and the 2009 first quarter. CA and CEA reported CNY948 million ($138.8 million) and CNY916 million fuel hedge losses respectively in the first quarter, which followed hedging losses of CNY7.47 billion and CNY6.2 billion respectively by the two carriers for full-year 2008.
Greek air traffic was suspended for about 6 hr. yesterday when controllers joined a national public sector strike protesting the government's handling of the recession. Numerous flights were cancelled as no air travel within, to or from Greece was possible during the period.
CSafe said Continental Airlines Cargo selected its AcuTemp RKN air cargo container with both cooling and heating capabilities as part of its structured cold chain program.
Colgan Air attempted to push back against allegations that the pilots of the Q400 that crashed Feb. 12 near Buffalo did not get adequate rest prior to the flight because of possible overscheduling, and the US Senate announced it will hold hearings next month to examine "stunning" issues raised by National Transportation Safety Board hearings on the accident.
First Officer Rebecca Shaw had been up for nearly 36 hr. prior to taking the right seat of the Colgan Air Q400 that crashed on the night of Feb. 12, the National Transportation Safety Board estimated at a hearing yesterday.
Ryanair said all new bookings from May 20 will be online check-in and bag-drop only as part of its policy to phase out the use of check-in desks at its 146 airports by Oct.1. The compulsory online check-in will come with a £5/€5 fee per person per flight. The LCC also will introduce a €40/£40 so-called "boarding card re-issue fee" for passengers arriving at the airport without a boarding pass. Additionally, it announced that it will not accept bookings for unaccompanied minors (under 16 years old) from May 20.
Continental Airlines announced yesterday that it will close its Tampa reservations office on July 19 with the elimination of 500 jobs. CO said it is offering "a number of voluntary programs to employees, including an early-out severance program and Company Offered Leaves of Absence. Tampa employees who would not otherwise be furloughed will have the option of transferring to other reservations centers located in Houston and Salt Lake City." The airline said the step is necessary in "response to reduced call volumes" caused by a "shift towards Web self-service" and the global recession.
China Eastern Airlines is expected to receive a further CNY2 billion ($294 million) capital injection from the Chinese government to help the struggling carrier survive. The Shanghai-based carrier was allocated CNY7 billion from Beijing at the end of 2008, which was approved by minority shareholders in February and is awaiting approval from the China Securities Regulatory Commission.
Lufthansa Technik supervisory board reappointed executive board chairman August Henningsen to continue serving in that capacity for another five years until March 31, 2015. He was named to the position in January 2001.
Aegean Airlines is expected to become a Star Alliance member. An event will be held by the end of this month in Athens, a source from the alliance told this website. Newest member is EgyptAir which joined Star last year as No. 21. Star CEO Jaan Albrecht told ATWOnline earlier that the alliance is working on a long-term project to become an alliance of the 50s, meaning up to 50 members.
Shanghai Airlines is expected to reduce capacity in its unprofitable cargo operation and expand into the South China market by establishing a second domestic base at Fushan in Guangdong Province for its subsidiary China United Airlines as it seeks to return to profit after losing CNY1.25 billion ($182.8 million) in 2008. "Our main task for this year is to survive the current difficult time," Chairman Zhou Chi said. Fushan is a military airport.
Lufthansa said yesterday that its takeover offer for Austrian Airlines has been accepted by "over 85%" of AUA shareholders including the 41.56% stake held by OIAG and "the syndicate of Austrian core shareholders" consisting of LVBG, RIG and WSV-AG Vienna Insurance Group. The purchase is still subject to the approval of antitrust authorities and the provision of €500 million in restructuring aid by the Austrian government ( ATWOnline,May 12).
