Air France KLM Chairman and CEO Jean-Cyril Spinetta "evoked the possibility of zero growth in capacity for the company in 2009 and 2010" while meeting with trade unions this week, an AF KLM spokesperson told Reuters. Regarding reports that the company was looking to trim jobs, the spokesperson said it "remained determined to keep jobs whenever possible." AF KLM projected a 2% year-over-year capacity increase for both the upcoming winter schedule and summer 2009, according to press reports, but dropped the winter guidance to 1.7% last month.
Iberia raised its stake in British Airways to 9.07%, or 104.6 million shares, the UK carrier said yesterday. Increase comes one week after IB had upped its holding to 8.07%.
Aeroflot informed Russia's Ministry of Transport that it wishes to bid for the state's 25.5% stake in rival S7 Airlines. SU CEO Valery Okulov wrote in a letter to Transportation Minister Igor Levitin, "For the consolidation of domestic flights, we are working out the possibility of obtaining the S7 airline," Russian media reported. An S7 spokesperson told reporters that the carrier had received no notification from Aeroflot.
AirTran Airways posted a third-quarter net loss of $107.1 million, reversed from a $10.6 million profit in the year-ago period, due in part to losses of $41.5 million related to its fuel hedging program owing to the recent fall in oil prices.
Record revenue helped JetBlue Airways minimize its third-quarter losses as the New York JFK-based LCC reported a $4 million deficit that represented a reversal from the $23 million profit posted in the year-ago quarter but a sound result compared to its domestic competitors.
US Airways reported a third-quarter net loss of $862 million, reversed from a profit of $177 million in the year-ago period, and like other US carriers cited fuel hedging charges as a principal cause.
Gol and Varig parent Gol Linhas Aereas Inteligentes said losses on its fuel hedges and gains on currency hedges would result in a BRL48 million ($22.1 million) charge against its third-quarter results, which it is scheduled to report Oct. 27. It expects to report an operating margin of -1% to 1%.
Alaska Air Group, like several US counterparts, suffered a third-quarter loss owing to a decline in the mark-to-market value of its fuel hedges, reporting an $86.5 million deficit that compared to an $81.8 million profit in the third quarter of 2007. Excluding special items, which also included fleet transition costs from the phaseout of Alaska Air's MD-80s and the CRJ700s at Horizon Air and gains related to the deletion of inactive loyalty program accounts, AAG posted net earnings of $39.9 million, down 49.4% from a similarly calculated $78.8 million last year.
Indian Ministry of Civil Aviation announced yesterday that airlines will have until March 31 to pay their present outstanding fuel bills to the Ministry of Petroleum and Natural Gas and, in addition, will be able to procure their fuel on credit until that date ( ATWOnline, Oct. 20).
Boeing's third-quarter net income plunged 38% to $695 million from $1.11 billion last year, and Chairman, President and CEO Jim McNerney conceded that the machinists' strike "had a major impact" on earnings.
Austrian Airlines Group's privatization continued to be in doubt yesterday as reports that Lufthansa presented the only offer for state holding company OIAG's 42.75% stake went unconfirmed by both AAG and LH. Austrian has said it will make an announcement Monday. A Federal Ministry for Transport, Innovation and Technology spokesperson said on Austrian radio that there is one potential bidder, while other reports suggest LH, S7 Airlines and even Air France KLM want more time or further talks before presenting a bid.
Mokulele Airlines was flying again yesterday, one day after shutting down following a US FAA inspection that revealed cabin crews were not properly trained on the use of life preservers and fire extinguishers. "They grounded all the planes and conducted intensive training for all of their staff," an FAA spokesperson told ATWOnline. Mokulele recently signed an agreement with Republic Airways to operate up to four E-170s for inter-island service in Hawaii. It currently operates 56 daily flights to seven Hawaiian destinations.
JetBlue Airways operated its first flights from New York JFK's new Terminal 5 yesterday, with an arrival from Burbank at 5:05 a.m. inaugurating the facility. All JetBlue departures, in addition to all domestic and international arrivals that pre-clear US customs, will operate out of the new facility. The 635,000-sq-.ft. terminal has 26 gates on three concourses, 65 self-serve kiosks, 40 check-in counters and a central security checkpoint with 20 screening lanes. It can accommodate up to 250 daily departures.
Vueling Airlines reported an €18.7 million ($24.8 million) operating loss through the first nine months of 2008, reduced from a €38.4 million negative EBIT in the year-ago period, Reuters reported. Sales rose 32.2% year-over-year to €354.4 million and passenger numbers were up 2.1% to 4.7 million.
Northwest Airlines reported a third-quarter net loss of $317 million, reversed from a $244 million profit in the year-ago period, citing a $410 million noncash charge related to fuel hedging as the reason.
SkyWest Airlines and Atlantic Southeast Airlines parent SkyWest Inc. said it expects third-quarter net income "to be lower than previously anticipated" and fall between $24.2 million and $26.5 million. It posted a $42.9 million profit in the third quarter of 2007. SkyWest said the lowered forecast was the result of the elimination of nine aircraft from ASA's agreement with Midwest Airlines and a larger-than-expected reduction in block hr. scheduled by partners of both subsidiaries.
Gulf Air secured a $25 million unsecured loan from BMI Bank, which it said will be "infused into the working capital of the company" and used for financing "various development plans."
SpiceJet named former Flight Options COO and Chief Strategy Officer Sanjay Aggarwal as CEO, effective immediately. Flight Options is a private aviation provider based in Cleveland. Aggarwal previously was manager-financial planning at US Airways. SpiceJet operates 15 737NGs to 16 Indian destinations USA3000 Airlines named IndiGo COO Steven Harfst as its new president and CEO, succeeding the retiring Angus Kinnear. Before joining IndiGo, Harfst was North American Airlines COO. USA3000 operates 11 A320s to 13 destinations.
United Technologies Corp. announced that Hamilton Sundstrand President David Hess will succeed Stephen Finger as president of Pratt & Whitney on Jan. 1 when Finger retires. Alain Bellemare, currently president of Pratt & Whitney Canada, will succeed Hess at Hamilton Sundstrand. Hess and Bellemare will report to UTC President & CEO Louis Chenevert. Hess, 53, joined UTC in 1979 and has been with Hamilton Sundstrand since 1995. He has held his current position for three years.
Goodrich inked a deal with US Airways to refurbish half its CFM56-5B thrust reversers and provide initial exchange units to facilitate a maintenance program. Contract will run through 2012 under the Goodrich Aerostructures Prime Solutions program. Work will take place in Foley, Ala.
United Airlines parent UAL Corp. reported a third-quarter net loss of $779 million, reversed from a net profit of $334 million in the year-ago period, blaming the bulk of the result on a $519 million noncash net loss on fuel hedge contracts caused by the recent drop in oil prices.
United Airlines parent UAL Corp. promoted Senior VP-Marketing Dennis Cary to senior VP and chief marketing and customer officer. In addition, it named Chief Customer Officer Graham Atkinson as president of UA's Mileage Plus loyalty program.
The Russian government is moving ahead with forging a state-owned airline alliance to replace defunct AiRUnion, with the first board meeting of the new nine-carrier grouping scheduled for Nov. 11. The company will be 51% owned by Russian Technology Corp., a source close to the negotiations confirmed to ATWOnline, with Russia Airlines (or some derivative thereof) reportedly the preferred name. RIA Novosti reported that the Moscow city government will hold the remaining 49% ( ATWOnline, Oct. 2).
Delta Air Lines intends to reduce its number of regional partners as the merger with Northwest Airlines approaches. "If you add everyone up together now you have nine [regional partners]," Delta Connection Senior VP Don Bornhorst told the The Atlanta Journal-Constitution. "I think the right answer is going to be along the lines of seven or eight. We have too much lift in Delta Connection." He said there no longer is a "seller's market" for regionals.
Ryanair will open bases in Alghero and Cagliari in March, creating eight domestic and 11 international routes to/from Sardinia. AHO and CAG become the LCC's sixth and seventh Italian bases. It will base two new 737s at CAG and launch service to Brussels Charleroi, Genoa, Karlsruhe Baden, Paris Beauvais, Rome Ciampino, Trieste, Brescia (all start March 30), Cuneo, Dusseldorf Weeze, Edinburgh, Marseille, Seville, Treviso (March 31), and Manchester (April 1).
