Japan Airlines Friday conducted the latest biofuel test flight, operating a 747-300 partially powered by fuel derived primarily from the camelina plant. The 90-min. flight from Tokyo Haneda followed recent biofuel demonstration flights conducted by Air New Zealand and Continental Airlines ( ATWOnline, Jan. 8). A 50/50 blend of traditional jet fuel and camelina-based biofuel powered one of the aircraft's four Pratt & Whitney JT9Ds. It was the first biofuel test flight using Pratt engines.
"Clearly the pension issue is foremost in our minds," AC President and CEO Montie Brewer recently told analysts and reporters. "Pension rules in Canada are not aligned with the US. . .The rules have to be realigned."
Japan Airlines joined the exclusive biofuel club on Jan. 30 when one of its Pratt & Whitney JT9D-powered 747-300s took off from Tokyo Haneda with one engine powered by a 50/50 biofuel/jet fuel blend. The biofuel was a cocktail of camelina (84%), jatropha (16%) and algae (less than 1%). JAL reported that the 90-min. flight went off without a hitch. As with other biofuel test flights, "no modifications to the aircraft or engine were required," the airline said in a statement. Capt. Keiji Kobayashi said, "Everything went smoothly.
IT IS OBVIOUS WE ARE FIGHTING FOR THE AIR FRANCE GROUP. BUT IN actual fact, we are also fighting for France." Former Air France Chairman Christian Blanc's 1996 expression of an inextricable link between France's soul and its national airline may belong to a vanishing mindset in Europe, but it is very much the kind of thinking that shapes the view of
British Airways announced an environmental target of halving net CO2 emissions by 2050. The target, one of the most ambitious by an airline, was announced last month in Hyderabad by CEO Willie Walsh. He said, "While some people say that in economic times as desperately tough as these we can afford to put climate change issues on one side, I could not disagree more. Halving CO2 by 2050 is an extremely challenging target. But it is one I am sure we can achieve."
US Airways posted a 2008 net loss of $2.21 billion, reversed from a $427 million profit in 2007, as it contended with a roller-coaster oil market that led to significant losses on fuel hedges. In addition to $496 million of unrealized losses on mark-to-market hedging adjustments, US recorded a $622 million noncash charge to write off goodwill created by the America West Airlines merger. The carrier has moved quickly to reduce its hedging position in 2009. Executive VP and CFO Derek Kerr said 14% of its fuel consumption is hedged for the year, with none in the fourth quarter.
JetBlue Airways yesterday reported partial full-year and fourth-quarter results, including a $76 million pre-tax loss that represented a reversal from a $41 million pre-tax profit in 2007. It said it refrained from reporting net results because it is evaluating the tax deductibility of a $53 million noncash charge taken in the fourth quarter related to the valuation of its auction rate securities. It plans to report complete results in mid-February. Full-year operating revenue climbed 19.2% year-over-year to $3.39 billion against a 22.7% increase in expenses to $3.28 billion.
WestJet has chosen SabreSonic Customer Sales and Service as its new reservations system, bringing an end to a search that began with its 2003 decision to replace Navitaire's Open Skies and included a two-year detour with aiRES. WS Executive VP-Commercial Distribution Hugh Dunleavy said SabreSonic's scalability--"We've been growing very quickly"--and its bidirectional marketing and operational capabilities for codeshare agreements were among the features that sealed the deal.
European Commission accepted measures taken by France to end the differentiation in passenger charges between domestic flights and those from/to Schengen countries.
Continental Airlines reported a 2008 net loss of $585 million, reversed from a profit of $459 million in the year-ago period, citing a deteriorating demand environment, a severe and "unprecedented" December winter storm at its Houston Intercontinental hub and special charges related to fuel hedging contracts and pension settlements.
Fuel hedge losses, restructuring charges and special items sank Alaska Airlines and Horizon Air parent Alaska Air Group to a $135.9 million net loss in 2008, reversed from a $124.3 million profit in 2007.
Austrian Airlines Group CEO Alfred Oetsch resigned yesterday. He will leave the company on Jan. 31, which would make him the shortest-tenured CEO in the carrier's history. He took over in May 2006. COO Peter Malanik and CCO Andreas Bierwirth will fill in for Oetsch temporarily and Austrian media are speculating that Swiss International Air Lines Chief Network & Distribution Officer Harry Hohmeister could succeed Oetsch, 55, who said the company's takeover by Lufthansa necessitated a new start on the personnel side. Swiss and AAG both are Lufthansa subsidiaries.
Lufthansa supervisory board Chairman Juergen Weber told Frankfurter Allgemeine Zeitung that "if the conditions are right, SAS will become interesting for us" as an acquisition target.
Fraport plans to sell its 65% stake in loss-making subsidiary Frankfurt-Hahn next month, CEO Stefan Schulte said during a German Luftfahrt Presse Club event.
Russia's S7 Airlines has canceled its order for 15 787s, it confirmed yesterday, becoming the first carrier to terminate a major deal for Boeing's delayed next-generation widebody.
Sun Country Airlines reported a $21.4 million loss in 2008, narrowed from a $35 million deficit the year before. Chairman and CEO Stan Gadek called the result "a significant improvement based upon the successful turnaround" of the company. "Based on current booking and revenue trends, we expect to be profitable in first quarter and full-year 2009," he claimed. Fourth-quarter net profit of $955,000 compared to an $18 million loss in the year-ago period and was SY's first profitable fourth quarter in five years.
AirTran Airways reported a 2008 net loss of $273.8 million, reversed from a $52.7 million profit in 2007, citing "multiple financial challenges" and noting that the result included nonoperating losses of $150.8 million related to its "out-of-the-money" fuel hedge contracts.
Lufthansa canceled 80 flights Wednesday owing to a 6-hr. strike by the UFO cabin crew union at Frankfurt, Berlin Tegel and Berlin Schoenefeld. UFO now has staged two strikes in four days and is pushing for a 15% wage increase for its 16,000 members. LH has lifted its offer to 10%.
Iberia will report net income of €32 million ($42.2 million) for 2008, a 90.3% plunge from the prior year, it announced at an investors conference yesterday. It will suffer a €79 million operating loss on a 1.3% decline in revenue to €5.45 billion. Passenger revenue fell 2.5% to €4.22 billion. Operating costs rose 5.5% to €5.53 billion on a 45.5% surge in fuel expenses to €1.67 billion. Capacity dropped 0.5% year-over-year and load factor was down 1.6 points to 80%. IB will release its complete full-year and fourth-quarter results on Feb. 27.
Alliant Techsystems yesterday announced it won a contract with Rolls-Royce to produce composite aft fan cases for the Trent XWB that will power the A350. Contract is valued at more than $200 million and includes integration of additional components to support Rolls' assembly. Fan case delivery is slated to begin later this year. Trent XWB ground testing is expected in 2010.
Ryanair yesterday announced the formal withdrawal of its €748 million ($987.4 million) cash offer for Aer Lingus, which followed the Irish government's refusal to sell its stake to the LCC. "Ryanair acknowledges that its offer cannot now be successful," it said. The carrier also announced the launch of a daily London Gatwick-Marseille service, its seventh route from LGW, on March 30.
Emirates will operate the A380 to Incheon beginning in November. It will be EK's fifth A380 market after London Heathrow, New York JFK and soon-to-be-launched Sydney and Auckland. It also said it will commence its deferred Dubai-Durban service on Oct. 1 and will resume its third daily DXB-Johannesburg flight on Feb. 1. Durban flights had been scheduled to launch Dec. 1 but were delayed due to aircraft deployment issues.
ANA and Japan Airlines yesterday each released plans for their fiscal years beginning April 1 that feature network cutbacks and a greater focus on operational efficiency. ANA said it intends to "minimize the risk of falling revenue" and is focusing on opportunities "afforded by the expansion" of Tokyo Haneda and Narita in 2010. International capacity is expected to fall 8% in the upcoming fiscal year while domestic ASKs decline 4.3%. It will suspend flights from Nagoya to Tainjin and Guangzhou from March 29 and temporarily suspend and/or decrease frequency on five other Asian routes.
