Aeroflot remains interested in expanding its footprint in Europe, yet "it is a great myth that Aeroflot is shopping around for airlines," Deputy DG-Corporate Communications Lev Koshliakov noted during a presentation at last week's North Hub Riga conference organized by airBaltic.
Royal Jordanian reported a JOD8.5 million ($11.9 million) first-quarter loss, nearly double the JOD4.4 million deficit reported in the year-ago period. Revenue fell 11% year-over-year to JOD124 million. Yield was down 5% and passenger boardings slipped 11.2% to 491,000. Load factor dropped 6 points to 62%. RJ said it expects to "compensate" for the first-quarter result with "growth in bookings on all sectors" during the second and third quarters.
Ryanair confirmed it will not scale back operations at Dusseldorf Weeze following the issuance of a new operating licence for NRN that allows the airline to operate its full flight schedule. Last month it threatened to close the base after the OVG Court in Munster decided to reduce operating hours at the airport ( ATWOnline, April 23). Ryanair currently operates six aircraft at NRN.
News from Travel Technology Update: Continental chief Larry Kellner hinted that the carrier may migrate to the Star Alliance Common IT Platform at some point after it joins the alliance in October. In a conference call to discuss first-quarter earnings, Kellner said, "I and other members of the Continental management team meet regularly with Glenn Tilton [United chairman, president and chief executive officer] and his team at United as we develop plans to co-locate at airports, deliver mutual cost savings, share airport lounges, bring benefits to each other's elite customers and ult
Continental Airlines said April consolidated RASM dropped 12.5%-13.5% and mainline unit revenue fell 10.5%-11.5%. It flew 7.57 billion consolidated RPMs, down 3.4% from the year-ago month, against a 6.8% fall in capacity to 9.19 billion ASMs. Load factor rose 2.9 points to 82.3%.
British Airways officials are heralding the success of London Heathrow's Terminal 5, which they say is contributing to improved operations and ontime performance just a little more than a year after its very troubled opening. The March 2008 debut of the £4.3 billion ($6.37 billion) facility was ruined when the baggage system broke down, forcing cancellation of hundreds of flights. The fiasco cost BA an estimated £16 million, reflecting the costs associated with the disruption as well as lost revenue opportunities.
Pegasus Airlines parent ESAS Holding confirmed that its stake in Air Berlin is 15.3%, making it the German carrier's largest shareholder ( ATWOnline, April 29). Pegasus Chairman Ali Sabanci will join the AB board.
National Air Traffic Controllers Assn. President Patrick Forrey said he welcomed former FAA Administrator Jane Garvey's role in helping to oversee mediation of the union's contract talks with the regulator ( ATWOnline, May 1), calling it a "bold step. . .that will guide a positive way forward in which aviation safety professionals will be included as valued stakeholders."
EasyJet announced that Group Finance Director Jeff Carr will leave the company and Mandala Airlines CEO Warwick Brady will join the LCC as procurement director Wednesday.
CSA Czech Airlines reached agreements with seven of nine unions to reduce salaries to last year's levels, which will save the carrier approximately CZK250 million ($12.4 million) this year. CSA said it "initiated redundancies" targeting 28 positions held by employees represented by the Trade Union of Aviation Mechanics, with which there was no agreement on pay cuts that will bring about the necessary 5% reduction in costs. Negotiations with the CZALPA pilots union are continuing.
GREAT SUCCESS STORIES IN AVIATION ARE a rarity even in good times, and noteworthy accomplishments are even less likely when an airline has had to rise from the ashes of a fallen parent. Sydney-based Regional Express, known as Rex to locals, has done all this and more and remains profitable in the worst economic downturn in at least four decades.
TO SAY THAT THE PAST YEAR HAS BEEN A challenge for the US regional airline industry understates the case for a group of carriers buffeted by financial losses, capacity reductions imposed by mainline partners and efforts by those partners to restructure longstanding contracts. SkyWest Inc. Executive VP and CFO Brad Rich could have been speaking for the entire industry when he said, "This is the most challenging time we've faced in the 21 years I've been at SkyWest."
United Airlines launched a carbon offset program that complements its existing efforts to reduce its impact on the environment. Its environmental initiatives include fleet enhancements, an EcoPower engine wash system and alternative-fuel ground support equipment vehicles. Last year it was the only US airline to participate in the environmental program ASPIRE, using 11 fuel-savings initiatives in a single transpacific flight to save more than 32,000 lb. of carbon emissions.
The guilty verdict and a two-year jail sentence handed down in early April to Capt. Marwoto Komar, the pilot-in-command of Garuda Flight GA200, a 737-400 that crashed at Yogyakarta, Indonesia, on March 7, 2007, killing 21, has become the case du jour in the continuing debate regarding criminal action against flight crews involved in airline accidents.
HE GLOBAL ECONOMIC DOWNTURN IS TAKING A TOLL on all sectors of the commercial aviation business and regional aircraft sales are no exception. While manufacturers of regional jets and turboprops continue to speak confidently about the long-term market prospects for their products, there is no sugarcoating the near-term pain. Both Embraer and Bombardier have announced major workforce cutbacks and are hunkering down to ride out the financial storm.
Continental chief Larry Kellner hinted that the carrier may migrate to the Star Alliance Common IT Platform at some point after it joins the alliance in October.
Finnair and Qatar Airways have joined the Aviation Global Deal Group that was launched in February to take leadership of the climate change debate and develop a global policy for tackling aviation emissions. Air France KLM, British Airways, Cathay Pacific Airways, Virgin Atlantic Airways, airport operator BAA and international nongovernmental organization The Climate Group formed the organization to present a united front to fast-track an industry response and last month presented their ideas during a UNFCCC session in Bonn. Attendees at the ATW-Leeham Co.
Aer Lingus said Chairman Colm Barrington will assume temporarily the duties of CEO Dermot Mannion, who resigned. Aeroflot named Vitaly Savelyev CEO. Air Canada appointed Calin Rovinescu president & CEO, replacing Montie Brewer, who resigned, and promoted Duncan Dee to executive VP & COO. Airline Services Group chose Dan Hepworth as group dir.-sales & marketing. Air Mauritius tapped Andre Viljoen as CFO & CIO. AirTran Airways named Christopher White dir.-PR. A J Walter Aviation selected John Avery as dir,-supply chain services.
US airport privatization appears to be another casualty of the worldwide recession as investors back away from facilities with falling traffic and revenue. Collapse of the deal to sell a 99-year lease on Chicago Midway for an up-front payment of $2.52 billion leaves US FAA's pilot privatization program without a major airport.
ANA Group blamed an "unprecedented fall in demand for domestic and international air travel--in particular high-yield business travel," for its first full-year net loss in six years, a ¥4.2 billion ($43.4 million) deficit in the fiscal year ended March 31 that compared to a ¥64.1 billion net profit in 2007-08. Executive VP-Finance Tomohiro Hidema said 2008-09 "was a disastrous year for business in general, with airlines around the world hit by the lack of consumer confidence and commercial activity, and ANA was no exception."
Hainan Airlines posted a net loss of CNY1.42 billion ($208.3 million) in 2008, a big reversal from the CNY626.9 million profit reported in 2007, on a 19% lift in operating revenue to CNY13.55 billion. Operating expenses climbed 18.2% to CNY12.52 billion. The Haikou-based carrier blamed "the global financial crisis, domestic natural disasters, declining market demand and soaring fuel prices" for the result.
LIAT said Brian Challenger will serve as interim CEO, succeeding the departing Mark Darby, while a permanent replacement is sought. Challenger joined the board in 2006.
Qantas suffered one of its worst-ever collapses in yield on international flights in March, according to a Centre for Asia Pacific Aviation analysis. QF's international yield plunged 11% year-over-year in March following a 2.4% fall in February. CAPA said yesterday that March domestic yield dropped 10.1% after falling 9.7% the prior month. March international passenger numbers were down 15.8% and domestic numbers declined 2.6% to 1.4 million. Low-cost subsidiary Jetstar Airways saw international passengers rise 36.3% to 186,000 and domestic increase 1.8% to 686,000.
