AirAsia said Friday that majority shareholder Tune Air is "unable to secure financing" for its bid to acquire the remaining shares of the carrier and take it private owing to "tight credit market conditions." Tune Air, which holds a 30.9% stake in AirAsia, said in October it was "considering" the step ( ATWOnline, Oct. 10). But the global credit crunch means that it "is unable to form a firm intention to proceed," AirAsia said in an announcement to the Bursa Malaysia.
European Commission is expected to announce on Dec. 16 its decision on the proposed merger of Vueling Airlines and Clickair. Competition authorities were notified of the merger on Nov. 11 ( ATWOnline, Aug. 1).
Kartika Airlines of Jakarta signed a deal with Sukhoi Civil Aircraft for 15 firm Superjet 100s worth $448 million plus 15 options, the manufacturer announced Friday, according to press reports from Moscow. Deliveries of the 95-seat aircraft are scheduled to begin in 2011. Kartika operates 737-200s.
Continental Airlines completed installation of Panasonic eFX on-demand inflight entertainment systems in the economy cabins of its 39 757-200s. All aircraft will be in service by Dec. 23. In-seat power ports also were installed. IFE installations continue on CO's 777s, with 14 of 20 aircraft outfitted and the remainder scheduled to be complete by May. CO also announced an agreement with LiveTV allowing it to offer 80 channels of DirectTV programming throughout its 737NG and 757-300 fleets.
SkyEurope Airlines reported a €59.4 million ($75.4 million) loss in the fiscal year ended Sept. 30, more than double the €24.1 million suffered in the prior year, as benefits from a restructured and streamlined network failed to materialize in time to offset record fuel costs.
Abu Dhabi Aircraft Technologies will provide Dubai-based Silver Air with MRO services on three 737-200s and a 737-300 under a Total Care Solution agreement.
US Air Transport Assn. announced the election of United Airlines Chairman, President and CEO Glenn Tilton as chairman, effective immediately. He will serve two years and succeeds former Northwest Airlines Chairman and CEO Doug Steenland. CFM International named Chaker Chahrour executive VP, effective Feb. 1. He is currently head of sales and pole executive for GE Aviation in the Asia/Pacific based in Singapore. He will succeed Bill Clapper, who will be on special assignment as he transitions to retirement later in 2009, CFM said. Chahrour joined GE Aviation in 1979.
Compagnia Aerea Italia's purchase and relaunch of Alitalia received final approval by Italian and European competition authorities yesterday, with the former stipulating that at least 10% of seats on each flight be available at the "cheapest price." Those fares would be based on the lowest prices offered by AZ and Air One in the previous travel season. The Italian authorities also reserved the right to issue an additional ruling once CAI chooses either Lufthansa or Air France KLM as its foreign investor.
In an effort to win support from Aer Lingus shareholders, particularly the Irish government and employees who hold 25.1% and 14.2% stakes respectively, for its renewed all-cash takeover offer, Ryanair yesterday committed to recognizing EI's unions, restoring daily Shannon-London Heathrow service and ceding control of EI's LHR slots to the government.
Sun Country Airlines received US Bankruptcy Court approval for a line of credit that will allow it to restore employees to full pay and meet other financial obligations. The Minneapolis-based carrier, which is working its way through Chapter 11 restructuring ( ATWOnline, Oct. 20), was paying workers just 70% of their salaries. SCA did not reveal the origin of the debtor-in-possession financing, but news reports named Elite Landings, another subsidiary of SCA parent Petters Group Worldwide.
Turkish Aerospace Industries reached a $500 million deal with Airbus to produce parts for A350s. Agreement will create 400 direct jobs and indirectly employ 1,200, the companies said.
Finnair said the one-week closure of Bangkok Suvarnabhumi (see story above) will cost the carrier approximately €4 million ($5.1 million), with "consequential effects. . .expected to increase the final cost total further."
Bombardier Aerospace reported a 3.5% increase in operating profit to $199 million for its fiscal third quarter ended Oct. 31 despite a 4.2% decline in revenue to $2.3 billion.
British Airways faces some turbulence in its bid to take major equity stakes in both Iberia and Qantas, with IB CEO Fernando Conte claiming that BA's ambitions are "too complex." Speaking Wednesday at an Aviation Club lunch in London, Conte reportedly argued that it would be "more reasonable" and "more rational" for BA to focus on intra-continental consolidation before trying to strike a transcontinental deal. He also revealed that BA CEO Willie Walsh told him about the Qantas discussions only an hour before the UK carrier publicly confirmed them.
Denmark's Cimber Air acquired bankrupt Sterling Airlines' operating certificate, slots and brand, among other assets, and plans to relaunch the carrier and extend its European presence. Purchase does not include aircraft, leases of which will be negotiated with present owners. Cimber plans to put two 737s back into service in January and 6-8 in the long term. It will operate the airline under the Sterling name and said it hopes to rehire a portion of Sterling's former workforce.
Lufthansa's supervisory board yesterday approved the acquisition of Austrian Airlines Group, starting with the purchase of state holding company OIAG's 41.56% share for €366,000 ($463,000). LH said it also will issue a debtor warrant potentially worth up to €163 million, "depending on Austrian Airlines' economic performance and the Lufthansa share outperforming its competitors."
GE Capital estimates a pre-tax exposure of $300-$550 million for megalessor GECAS owing to the anticipated traffic downturn in 2009. In an investor presentation this week, GE Capital estimated that a 1%-2% decline in global airline traffic would result in the smaller exposure, while the "downside case" assumes a 3% decline in RPKs and the liquidation of two airlines, resulting in the higher figure. GECAS represents 7% of GE Capital's assets. Its aircraft portfolio is worth $47 billion and it has earned $6 billion since 2001, according to the parent.
Tianjin-based Okay Airways will shut down for one month owing to conflicts between airline management and controlling stakeholder Juneyao Group, which sent a letter to CAAC claiming it no longer is able to guarantee Okay's operational safety. The carrier will suspend operations from Dec. 15 to Jan. 15, as instructed by CAAC, which will send staff to audit Okay's safety standards. It has delayed taking delivery of its second MA60 ( ATWOnline, Oct. 21).
US Air Transport Assn. named Delta Air Lines GM-Security Technology, Compliance and Facilitation Eric Thacker as director-security operations responsible for daily coordination with the Transportation Security Administration, effective immediately. It also appointed DL Director-Government Affairs Sametta Barnett as MD-security effective next month.
Air Berlin reported a €45.6 million ($57.7 million) third-quarter profit, up 43.2% from the €31.9 million earned in the year-ago period, on an 8.6% year-over-year lift in revenue to a company record €1.06 billion. Operating profit rose 57% to €89.1 million from €56.8 million. AB said its efficiency program "is bearing fruit," citing an 8.8% fall in passenger numbers to 8.6 million but a 15.3% lift in unit revenue to 7.66 euro cents. Nine-month EBIT swung to a €35.1 million profit from a €9.5 million loss in the year-ago period.
British Airways flew 8.71 billion RPKs in November, down 5.9% from the year-ago month. Capacity fell 3.1% to 11.72 billion ASKs and load factor dropped 2.2 points to 74.4%. American Airlines flew 9.53 billion system RPMs in November, down 14.5% year-over-year, against a 9.3% drop in capacity to 12.45 billion ASMs. Load factor was down 4.6 points to 76.6%. American Eagle flew 568.1 million RPMs, down 21.5%, while capacity fell 15.9% to 844.2 million ASMs. Load factor dropped 4.8 points to 67.3%.
Proposed merger of British Airways and Qantas announced Tuesday already is generating controversy in Australia, some 19 months after similar sentiments helped derail a leveraged buyout of QF by a multinational consortium.
Southwest Airlines won US Bankruptcy Court approval to purchase ATA Airlines' 14 slots at New York LaGuardia for $7.5 million ( ATWOnline, Nov. 20), Bloomberg News reported. Sale will be finalized when ATA's bankruptcy plan is approved. SWA currently flies to Chicago Midway, Baltimore, Las Vegas and five Florida destinations from Long Island Islip. SWA flew 5.26 billion RPMs in November, down 8.3% year-over-year. Capacity rose 0.4% to 8.33 billion ASMs, dropping load factor 6.1 points to 63.2%.
Delta Air Lines said yesterday that systemwide capacity for both it and new subsidiary Northwest Airlines will be down 6%-8% in 2009, comprising a 3%-5% international cut and an 8%-10% domestic reduction. The capacity down-gauging from 2007 to 2009 collectively will total around 20%, equaling the capacity slashed by United Airlines over the two-year period. It likely will necessitate further job cuts, DL CEO Richard Anderson and President Ed Bastian told employees in a memo.
Nordic Aviation Capital and KIRK Kapital announced a sale and leaseback deal with AMR Leasing Corp. covering 39 ATR 72s operated by San Juan-based Executive Airlines, which flies as American Eagle. NAC and KIRK, both based in Denmark, established a joint venture called NK Aviation Ltd., Ireland that will lease the aircraft back to Executive. AMR said the deal was worth approximately $200 million, according to press reports.
