AirAsia dismissed rumors that it is discussing a potential merger with Qantas low-cost subsidiary Jetstar Airways, although the speculation remains an interesting development for the Australian carrier, whose discussions with British Airways collapsed last week ( ATWOnline, Dec. 19). First reported in Malaysia's The Star, the rumor was called "pie in the sky" by AirAsia X CEO Azran Osman-Rani. "It's the first time I have heard about it.
Adria Airways expects to report a 2008 operating profit of €1.9 million ($2.7 million), down approximately 34% from 2007, on a 17% climb in passengers to 1.3 million, the STA Slovenian Press Agency reported. Through November, Adria carried 1.2 million passengers, up 16% year-over-year, on a 15% rise in the number of flights.
Austrian Airlines CEO Alfred Oetsch told ATWOnline that the carrier is expecting a "single-digit" drop in passengers next year and that further adjustments in capacity and costs are possible if demand continues to fall, including moving some workers to part-time status, but he ruled out layoffs. However, he said the company is facing declining traffic "in all classes" ( ATWOnline, Dec.
Brussels Airlines is considering repositioning itself again as a full-fledged network airline and reintroducing a business class on its European network, steering away from the "new generation carrier" concept introduced in March 2007 when it merged the operations of full-service SN Brussels Airlines with low-cost Virgin Express, a company source told ATWOnline.
Air Berlin named German Federal Ministry for Transport, Construction and Urban Development Secretary of State Matthias von Randow as its new director-global traffic rights & political affairs. Von Randow also was a member of Fraport's supervisory board.
Southwest Airlines reached a sale and leaseback deal with an unnamed lessor for 10 737-700s. Under the agreement's first tranche closed yesterday, SWA sold five -700s for "approximately" $175 million and immediately leased them back for 12 years. It will make monthly payments of around $7.8 million during the first six months of the leases, with the amount scheduled to reset every six months based on the six-month LIBOR rate. In the first quarter of 2009, SWA will sell the five remaining -700s and lease them back for 16 years under "similar terms."
AirBridgeCargo Airlines reported sales of $423 million through the first 11 months of 2008, up 55% year-over-year. Traffic rose 31% to 121,000 tons of cargo.
Libyan authorities rescinded permission allowing Swiss International Air Lines to serve Tripoli. A Swiss spokesperson said the carrier was informed that "technical reasons related to a project for Tripoli airport" was the cause, although widespread speculation has pointed to strained relations between the countries that began when a son of Libyan leader Muammar Gaddafi was arrested last summer in Geneva.
Lufthansa Cargo announced a 10% capacity reduction from Jan. 1 in response to the decline in the global cargo business and a "distinct falloff in demand." It will suspend the wet-lease of two MD-11Fs and one 747-400F from World Airways and transfer those routes to 747-400ERFs operated by Jade Cargo International, in which LH holds a minority stake. LHC will continue operating its 19 MD-11Fs and, from the middle of next year, also will have access to capacity onboard newly delivered 777-200LRFs operated by AeroLogic, its joint venture with DHL Express.
Southwest Airlines said yesterday that it submitted an application to the US Dept. of Transportation for Canadian route authority, which is required in order to implement its codeshare agreement with WestJet ( ATWOnline, July 9). SWA said it hoped to receive approval next quarter and that it had no intention to fly to Canada with its own aircraft "at this time."
Virgin Atlantic Airways is not interested in acquiring bmi regional or bmibaby and is negotiating with Lufthansa solely about the acquisition of bmi's mainline operation at London Heathrow, Virgin CFO Julie Southern confirmed to ATWOnline.
Air Tanzania suspended operations following the Dec. 8 suspension of its AOC by the Tanzania Civil Aviation Authority, which said the move was a "precautionary but very necessary action to avoid the possibility of the airline compromising flight safety." It said TC's aircraft were airworthy and that passenger safety never was at risk, and that the carrier has submitted "about half" of the documentation required for recertification.
British Airways placed a firm order for six E-170s and five E-190SRs, plus options on a further three 190SRs, for its wholly owned BA CityFlyer regional subsidiary. The firm aircraft are worth $376.5 million at list prices "based on January 2008 economic conditions," and the deal could reach $489 million if all options are confirmed, Embraer said.
Iberia flew 3.95 billion RPKs in November, a 10.6% decline from the year-ago month. Capacity dropped 7.7% to 5.12 billion ASKs and load factor fell 2.5 points to 77.1%. Austrian Airlines Group flew 1.31 billion RPKs in November, down 6.7% year-over-year, against a 5.7% drop in ASKs to 1.81 billion. Load factor was down 0.8 point to 72.8%. Copa Airlines flew 484.2 million RPMs in November, up 15.3% from the year-ago month. Capacity rose 17.1% to 627.1 million ASMs and load factor fell 1.2 points to 77.2%.
Five passengers remained in the hospital yesterday as the US National Transportation Safety Board's Go Team continued to investigate the Saturday evening crash of a Continental Airlines 737-500 that veered from Denver International Airport's runway 34R while on its takeoff roll, crossed a field and a taxiway, careened down a 40-ft. hill and caught fire.
ANA confirmed the postponement of selection of its future large aircraft type ( ATWOnline, Nov. 19), citing the "unforeseen changes to its operating environment since the financial crisis of September this year." The airline is considering the A380, 747-8 and 777-300ER as its future long-haul flagship. It said its "New Aircraft Selection Committee will remain on hold until the company deems market conditions conducive to resuming the selection process."
Frontier Airlines launched a new fare structure last week called AirFairs featuring three fare levels. Classic Plus is fully refundable or changeable to a seat on a different flight the same day at no charge. It also features priority boarding, two checked bags, free IFE, a snack and beverage and 150% mileage credit. Classic allows for advanced seat assignments, two checked bags, IFE and 125% mileage credit. Itinerary changes will cost $50 and same-day changes $75.
Aer Lingus will establish its first base in Great Britain in April at London Gatwick, with four A320s operating to Dublin, Knock, Malaga, Munich, Zurich, Nice, Faro and Vienna. EI's only other base outside the Republic of Ireland is at Belfast International, which it opened one year ago ( ATWOnline, Dec. 11). "The Gatwick operation will complement our existing services out of London Heathrow and position Aer Lingus for growth as we roll out new routes and bases in future years," CEO Dermot Mannion said.
Argentine Senate signed off on the expropriation of Aerolineas Argentinas and Austral last week in a 42-20 vote, following the Chamber of Deputies' approval early this month ( ATWOnline, Dec. 5). AR owner Grupo Marsans has filed for arbitration at the World Bank's International Center for Settlement of Investment Disputes in response. Senators said last week that AR is losing ARS27 million ($7.9 million) per month, Reuters reported.
CAE sold one 787 simulator and one 777-300ER simulator to Air New Zealand. The 777 device will be delivered in 2010 to coincide with arrival of ANZ's first -300ER, with the 787 FFS to follow in 2012. CAE is providing a suite of Simfinity training devices for each aircraft type, to be used for both pilot and maintenance training.
Etihad Airways is considering taking a stake in Air Berlin, according to Munich's Suddeutsche Zeitung, which cited sources from several unidentified banks. The size of the stake was not revealed. EY management has been studying the plan for weeks but has yet to come to a decision, the paper reported. It currently serves both Munich and Frankfurt, but AB does not serve the Middle East. AB's capitalization is approximately €281million. Separately, EY was awarded the right to operate a five-times-weekly Abu Dhabi-Tokyo Narita service beginning in March.
Turkish Airlines said it extended the deadline of its RFP for 25 widebody and 50 single-aisle aircraft plus 10 widebody and 10 narrowbody options by one month until Jan. 19 "at the request of the manufacturing companies." The planned order was announced two months ago and the tender was scheduled for completion on Dec. 17 ( ATWOnline, Oct. 15).
FedEx reported net income of $493 million for its fiscal second quarter ended Nov. 30, up 3% compared to $479 million in the year-ago period, and announced it is initiating "broad cost reduction actions" to contend with a "decline in shipping trends" and "very difficult" economic conditions. The company implemented a hiring freeze, a 7.5%-10% salary reduction for senior executives and a 5% pay cut for salaried personnel exempt from labor contracts. Chairman, President and CEO Frederick Smith said his salary would be lowered by 20%.
