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).
Iberia Group unveiled a broad cost-cutting plan intended to save more than €200 million this year as it reported a first-quarter consolidated net loss of €92.6 million ($122.3 million), a steep deterioration on the €0.4 million lost in the year-ago period.
AirTran Airways will leapfrog its competitors to become the first US major airline to offer wireless broadband Internet access across its entire fleet, the carrier said yesterday. It selected Aircell's Gogo Inflight to provide the Wi-Fi connection after spending about a year evaluating the offerings from four main suppliers, according to AirTran Senior VP-Marketing and Planning Kevin Healy. American Airlines, United Airlines, Delta Air Lines and others already are offering inflight broadband connectivity on selected aircraft but have not introduced it across their fleets.
Japan Airlines blamed the economic downturn for a net loss of ¥63.1 billion ($651.2 million) for the fiscal year ended March 31, an ¥80 billion reversal from a net profit of ¥16.9 billion in the prior year.
The captain and first officer of the Colgan Air Q400 that crashed Feb. 12 near Buffalo were carrying on a "nonessential conversation" for at least 3 min. before the disastrous end of the flight, the National Transportation Safety Board revealed yesterday. Under FAA rules, pilots are to operate a sterile cockpit environment below 10,000 ft., confining any discussion to matters related directly to flight operations. During the conversation, both pilots voiced concerns about flying in icing conditions.
ABX Air parent Air Transport Services Group reported first-quarter net income of $11.1 million, a nearly threefold increase from a $3.8 million profit in the year-ago period, as the loss of a good portion of its DHL business led to expense cuts that outpaced lost revenue. DHL, for which ABX provides US air lift, ceased domestic US service on Jan.
The European Commission received notification of Lufthansa Group's proposed acquisition of Austrian Airlines Group and set a June 17 deadline to complete a first-phase review of the deal. LH launched a public offer for AAG on March 2 after reaching agreement with state holding company OIAG to buy its 41.56% stake for €366,000 ($498,843) plus an "earn-out option" that could amount to as much as €164 million depending on AAG's future economic performance and LH's share outperforming its competitors.
SunExpress, the Lufthansa-Turkish Airlines JV, said it will buy three additional 737-800s and lease five -800s to bring its fleet to 25 of the type by the end of next year, by which time it will phase out three 757-200s.
Mesa Air Group reported a net loss of $36.7 million for its fiscal second quarter ended March 31, reversed from net income of $9.4 million in the year-ago period, as revenue plummeted 27.3% to $233 million.
Oxford Aviation Academy said it received UK CAA "agreement" for its first Multi-Crew Pilot License course to be launched in partnership with Flybe. According to OAA, it "will be the first MPL to be delivered using instructors, aircraft and simulators based in the UK." Students selected to launch the program will benefit from a joint sponsorship under which Flybe and OAA will prove £20,000 ($30,100) per student in funding.
American Airlines flew 10.28 billion system RPMs in April, a 4.7% decline from the year-ago month. Capacity dropped 6.1% to 12.64 billion ASMs, lifting load factor 1.2 points to 81.3%. American Eagle's RPMs fell 5.5% to 644.4 million against a 7.8% drop in capacity to 887.7 million ASMs. Load factor rose 1.8 points to 72.6%. Continental Airlines said April consolidated RASM fell an estimated 12.5%-13.5% year-over-year while mainline RASM dropped an estimated 10.5%-11.5%.
United Airlines Chairman, President and CEO Glenn Tilton called upon regulators to press ahead with liberalization, warning that "this is hardly the time for further protectionism in our industry." Speaking last week to the European Aviation Club in Brussels, Tilton stressed that airlines are doing their part to move beyond the current recession, "but we need governments to work with us, to partner with us, across the globe to put policies in place, and the infrastructure in place, to allow us to meet the demands that will be placed on us."
Ukrainian government intends to sell its 62% stake in Ukraine International Airlines, according to a government statement cited by Reuters. Existing shareholders Austrian Airlines (22.5%) and European Bank for Reconstruction and Development (10%) will have rights of first refusal.
Air China launched a mobile check-in service Friday, becoming the second Chinese carrier after China Southern Airlines to offer the option ( ATWOnline, April 9). CA started trialing the service on April 30 and said it received positive feedback from passengers. It will be available on all domestic routes from Beijing save Tibet, while CZ offers it only on Guangzhou-Zhengzhou flights.
Air Canada reported a first-quarter net loss of C$400 million ($342 million), widened 38.9% from a C$288 million loss in the year ago period, and new President and CEO Calin Rovinescu said the carrier is urgently seeking relief from its pension funding obligations.
Alitalia Chairman Roberto Colaninno told La Repubblica that load factors have climbed to 65%-66% from 43% in January, according to Reuters. He said breakeven load factor is 67%-68% and that AZ's market share in Italy has risen from January's 54% to 61%-62%. Delta Air Lines flew 15.41 billion system RPMs in April, a 7.7% decline from the year-ago month. Capacity dropped 7.1% to 18.94 billion ASMs and load factor fell 0.5 point to 81.4%.
Pinnacle Airlines Corp. parent of Pinnacle Airlines and Colgan Air, reported a first-quarter profit of $18.8 million compared to $1.2 million in the year-ago period, thanks largely to a one-time gain of $16.5 million relating to an income tax settlement and other nonrecurring items. Excluding those gains, its profit was $2.7 million. It also took a $600,000 charge related to the loss of the Colgan Q400 that crashed near Buffalo in February ( ATWOnline, March 26).
Copa Airlines and Aero Republica parent Copa Holdings reported a $71.6 million profit in the first quarter, up an impressive 81.3% from the $39.5 million earned in the year-ago period. Operating revenue climbed 4.3% year-over-year to $308.8 million but unit cost fell 16% to 9.9 cents and 11% to 6.8 cents excluding fuel. Operating income of $68.9 million was a 33.3% improvement over the $51.7 million reported last year. Copa said it recorded both a $16.2 million noncash gain and a $19.9 million loss on its fuel hedges during the quarter.
Air Berlin will keep its order for 25 787s, a spokesperson told ATWOnline, and now expects the first aircraft in 2013. Its long-haul plans remain in flux. AB management is talking with employees at its LTU subsidiary about a possible integration of its long-haul operation into AB and the spokesperson said the future of both carriers' long-haul operations "depends on the results of these talks." Discussions with the Vereinigung Cockpit union are scheduled later this month.
TAM reported first-quarter net income of BRL56.9 million ($26.7 million), up 21.8% from BRL46.7 million in the year-ago period, citing increased revenue generated by new long-haul flying and lower fuel costs. First-quarter revenue lifted 17.1% to BRL2.74 billion including a 29.9% hike in gross international passenger revenue to BRL796.9 million. Expenses heightened 13.1% to BRL2.45 billion owing to higher maintenance costs and real depreciation. It said operating profit more than doubled to BRL187.8 million from BRL83.4 million last year.
Korean Air posted a first-quarter net loss of KRW526 billion ($413 million), widened 61% from a net loss of KRW326 billion in the year-ago period, marking its sixth consecutive quarter in the red. Chairman and CEO Yang Ho Cho said the "deepening global economic crisis [in addition to] the weakening Korean won [and] sliding travel and cargo demand" had a "direct impact" on KE's bottom line.
Jazeera Airways earned a net profit of KWD4.5 million ($15.2 million) in 2008, nearly double the KWD2.3 million reported in 2007, on a 40.3% increase in operating revenue to KWD48.7 million. Chairman Marwan Boodai said yield rose 18.5% and unit cost was down 8%. "The strategic initiative to de-leverage the business in 2008 with the sale and leaseback of some assets has strengthened our balance sheet at exactly the right time, considering the current credit crisis," he said. Jazeera, which operates eight aircraft to 25 destinations, will increase 2009 capacity by 51%.
