Aeroflot board "decided to continue the study on the rationale of acquiring" Alexander Lebedev's 49% stake in Blue Wings, according to a statement cited by Reuters ( ATWOnline, May 6).
IATA said France has adopted one-stop security protocols allowing passengers screened at a European airport to bypass a second screening when connecting in France. One-stop security will begin at Lyon and selected Paris Charles de Gaulle terminals, then expand. IATA estimated it will save $30 million a year.
ExpressJet Holdings reported a first-quarter net loss of $11.4 million, narrowed 68.1% from a net loss of $35.7 million in the year-ago period, saying it benefited "from the cost-cutting performed during the second half of 2008 in response to record-breaking fuel prices and its amended capacity purchase agreement with Continental [Airlines]."
US Airways Group announced the sale of 15.2 million shares of common stock and $75 million in convertible senior notes due 2014, which are expected to raise approximately $150 million combined. US said it intends to grant the underwriters an option to purchase an additional 2.3 million shares and $11.3 million in notes to cover any overallotments. Citi and Morgan Stanley are joint book-running managers.
EasyJet nearly doubled its fiscal first-half net loss to £85.9 million ($129.3 million) from the £43.3 million posted in the six months ended March 31, 2008, citing high fuel costs linked to poor hedging and the later Easter holiday.
Foul weather and maintenance problems contributed to a 68% decline in SkyWest Inc.'s first-quarter profit to $9.4 million from $29.1 million in the year-ago period. Revenue fell 22.5% to $672.6 million. The company and its SkyWest Airlines and Atlantic Southeast Airlines affiliates provide regional flying for United Airlines, Delta Air Lines and Midwest Airlines with a fleet of 440 aircraft.
Southwest Airlines said that current revenue and booking trends "continue to be adversely impacted by the weak economic environment" and continuing swine flu concerns, leading the LCC to predict that second-quarter unit revenue will fall more than the 2.8% decrease reported in the first quarter. April RASM is expected "to be in line" with the year-ago month. SWA flew 6.52 billion RPMs last month, up 4.1% year-over-year, against a 1.9% decline in capacity to 8.46 billion ASMs. Load factor rose 4.4 points to 77%.
Finnair and its Helsinki Vantaa-based Northport Oy ground handling subsidiary reached a cost-savings agreement worth some €3.5 million that will include the layoff of 15 employees, the two-week furlough of 87 more and the shift of 183 full-time positions to part-time status. Northport employs 858. Separately, Finnair will launch a seasonal twice-weekly Helsinki-Pisa flight on May 8.
TAM CEO David Barioni said at a conference in Sao Paulo that the company's "financial result is going to be positive this year" and that "the worst is over," Reuters reported. The carrier posted a BRL1.34 billion ($628.3 million) loss in 2008. Barioni also said, "We might ask [Airbus] to push the deliveries back, but no way would we cancel them."
Republic Airways Holdings reported an 89.3% drop in first-quarter earnings to $2.2 million from $20.2 million in the year-ago period. Revenue was down 10.6% to $325.3 million. The company operates as Chautauqua Airlines, Shuttle America and Republic Airlines in partnership with American Airlines, US Airways, Continental Airlines, Delta Air Lines, United Airlines, Midwest Airlines and Mokulele Airlines. Operating expenses dropped 5.9% to $280.5 million from $298 million a year ago. Expenses included $3.1 million related to the cost of returning CRJ200 aircraft.
China Airlines reported TWD23.08 billion ($698.1 million) in first-quarter sales revenue, down 25.6% from the year-ago quarter. March revenue fell 30% year-over-year to TWD7.62 billion.
China Eastern Airlines signed a five-year, CNY590 million ($86.3 million) sale and leaseback contract with Bank of Communications Finance Lease Co. for two A340s. The aircraft, delivered in 1996, will be leased back for CNY17 million per quarter. "We can not only improve our cash flow and reduce debt ratio by a sale and leaseback of these two A340s but we also can optimize our fleet makeup," CEA Board Secretary Luo Zhuping explained. He said CEA's high debt ratio remains its biggest problem.
Emirates Chairman and CEO Ahmed bin Saeed Al Maktoum told reporters in Dubai that the carrier will report a profit for the fiscal year ended March 31 and that it has no plans to defer any aircraft deliveries scheduled through 2011.
A first quarter that was "difficult in the extreme" ended for Austrian Airlines Group with an €88.1 million ($117.3 million) loss, widened 45.9% from the €60.4 million deficit reported in the year-ago period. The company has said it has enough cash to maintain operations until its anticipated merger with Lufthansa ( ATWOnline, April 8), which executive board member Peter Malanik said is "going ahead as planned" and should close by the middle of this year.
Air Canada is seeking to lessen the burden of its C$3.2 billion ($2.7 billion) pension solvency deficit in order to gain "financial certainty" and is asking unions "for a moratorium" on funding its defined benefit plans.
WestJet reported first-quarter net income of C$37.5 million ($31.7 million), down 28.7% from C$52.5 million in the year-ago period, citing a weak demand and pricing environment.
Qatar Airways announced that it has joined the Aviation Global Deal Group, the consortium of Air France KLM, British Airways, Cathay Pacific Airways, Virgin Atlantic Airways and UK airports operator BAA that is pushing for a unified global policy covering aviation emissions trading ( ATWOnline, April 8).
Allegiant Air parent Allegiant Travel Co. announced that PAR Investment Partners, its second-largest shareholder, is offering 2.25 million shares for sale, leaving it with more than 1.9 million following the transaction. Chairman, President and CEO Maurice Gallagher is the largest shareholder.
Air France reached a sale and leaseback deal with BOC Aviation for two 777-300ERs and two 777-200LR freighters. The latter closed last week and the former is expected to close next month. Financial terms were not disclosed.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, posted first-quarter net income of $23.4 million, reversed from a $5.3 million loss in the year-ago period, as it benefited from the first full quarter of Polar's operating as a DHL Express carrier. The Polar ACMI contract pushes much of AAWH's fuel and maintenance expense to DHL. AAWH also retired seven 747-200 freighters last year (half of its -200F fleet), assets that previously were a big expense burden.
Air Fiji shut down last week, according to widespread press reports from the island nation. The carrier no longer is accepting bookings on its website. The Fiji Times reported that the airline's fourth-quarter revenue plunged 75% to FJD450,000 ($204,844). It launched operations in 1967 and served 13 destinations with eight 15-seat aircraft and one six-seat aircraft.
TNT reported first-quarter net income of €76 million ($101.9 million), down 53% from a €179 million profit in the year-ago period, saying that "international express volumes are under significant pressure." Operating income fell 40.8% to €163 million on a 7.8% rise in revenue to €2.44 billion. TNT Express, the expedited delivery segment that relies heavily on air operations, was affected by "continued recessionary pressure on volumes, though decline seems stable since February," the Netherlands-based company said.
Air India parent National Aviation Co. of India named Karnataka state government Infrastructure Development Dept. Principal Secretary Arvind Jadhav as its chairman and MD replacing Raghu Menon. Ministry of Civil Aviation Joint Secretary and Financial Adviser Bharat Bhushan had held the post on an interim basis ( ATWOnline, April 28).
Air China is expected to establish a branch company in Wuhan, capital of Hubei Province, following the collapse of parent CNAC's deal with East Star Airlines.
GE Aviation signed a 10-year OnPoint solution agreement with Gulf Air covering the CFM56-5Bs the airline ordered to power 15 A320s scheduled for delivery between 2009 and 2013 ( ATWOnline, April 28). Contract is valued at more than $100 million.
