Jet Airways reported a INR1.43 billion ($33.7 million) profit in the fiscal first quarter ended June 30, more than four times the INR309 million earned in the year-ago period. Revenue rose 46.2% to INR28.99 billion as passenger numbers climbed 18% to 3.2 million. The Indian carrier's domestic operation posted a INR5.02 billion pre-tax profit, nearly four times greater than the INR1.31 billion reported last year, while internationally the company suffered a pre-tax loss of INR2.83 billion, widened from an INR817 million deficit in the June 2007 quarter.
JetBlue Airways CEO Dave Barger will take a 50% cut in his base salary for the July 1-Dec. 31 period "in recognition of the challenges faced by the company and its employees in the current industry environment," the airline said. Barger makes $500,000 per year.
Honeywell delivered the nitrogen generation system for the 737NG, which it said "is the first fully FAA-certified fuel tank inerting solution for commercial transport aircraft." Two weeks ago, US FAA announced that within two years all new aircraft must include technology designed to reduce significantly the risk of center fuel tank explosions such as the one that is believed to have resulted in the 1996 loss of TWA 800 ( ATWOnline, July 17), and all passenger aircraft built after 1991 must be retrofitted.
Australian Transport Safety Bureau pointed to an exploding oxygen cylinder as the likely culprit in last week's Qantas 747-400 decompression and fuselage hole incident ( ATWOnline, July 28). ATSB Senior Investigator Neville Blyth told media in Manila, where the aircraft made an emergency landing, that parts of the valve of a missing oxygen cylinder and its handle were found near the 1.5-m. breach in the aircraft's hull. However, the full cylinder itself was missing.
Sichuan Airlines is preparing the launch of a new business jet joint venture with European Flight Services despite the decline in domestic demand that has accompanied surging fuel prices. Shanghai-based Genesis Investment Management also is expected to be a stakeholder in the new company, which will be named EFS Asia Pacific and will adopt the Legacy 600 as its main fleet type.
Iberia flew 4.58 billion RPKs in June, down 2.3% year-over-year, against a 0.9% lift in ASKs to 5.65 billion. Load factor fell 2.7 points to 81.1%. SAS Group airlines flew 4.13 billion RPKs in June, up 3.5% from the year-ago month. Capacity rose 5.9% to 5.53 billion ASKs and load factor fell 1.8 points to 74.7%. SAS Scandinavian Airlines flew 2.73 billion RPKs, up 3.8%, against a 7.4% lift in ASKs to 3.54 billion. Load factor fell 2.7 points to 77.1%.
Ryanair reported an 85% plunge in its fiscal first-quarter profit to €21 million ($33 million) from the €139 million earned in the three months ended June 30, 2007, as a near doubling in oil prices and falling yield overshadowed a 19% increase in passengers.
Emirates took delivery of its first A380 in Hamburg yesterday and during the handover ceremony signed a letter of intent to firm options on 30 A350 XWBs and order 30 A330-300s.
Hedging gains helped insulate Singapore Airlines parent SIA Group from the difficult operating environment during the fiscal first quarter ended June 30 as it reported a S$358.6 million ($263.5 million) profit that represented just a 15.4% decline from the S$424.1 million reported in the year-ago period. "The outlook for the airline industry remains uncertain," it said. "Under these circumstances, the companies in the group are tracking trends closely and are in a good position to react nimbly."
As Qantas continued to investigate last Friday's 747-400 incident (see next item), it continued to plan for its future with the announcement that Jetstar Airways CEO Alan Joyce, 42, will replace outgoing CEO Geoff Dixon effective Nov. 28. Joyce, a Dublin native who also holds an Australian passport, has led QF's no-frills subsidiary since 2003. He previously worked at Aer Lingus and Ansett Australia.
Embraer unveiled plans for two new industrial facilities to be located in Evora. One will manufacture complex airframe structures and the other will focus on metallic assemblies and other composites. It will invest up to €148 million over the next six years to develop the new facilities. Sites were selected based on access to qualified labor, logistical infrastructure and a planned technological center dedicated to aeronautics, the manufacturer said.
Southwest Airlines Chairman, President and CEO Gary Kelly said last week that the LCC's recently announced partnership with WestJet ( ATWOnline, July 9) likely will not be its last codeshare tie-up with another airline as it seeks to expand its reach beyond the continental US. While the deal with WS gives SWA extensive access to the Canadian market, "we're working very hard on a Hawaiian solution and also a Mexican and Caribbean solution," Kelly told analysts.
Iberia announced a labor agreement with 16,500 ground staff represented by the CC.OO. and UGT unions that will run through 2008. Deal includes a 3.5% wage increase and "new productivity and flexibility measures to streamline administration in all company areas."
Air Canada announced an agreement in principle with Continental Airlines as part of the latter's pending transition to Star Alliance ( ATWOnline, July 24). Accord includes a proposed codesharing deal, reciprocal loyalty program and lounge access and other terms.
Jet2.com parent Dart Group reported an £8.7 million ($17.3 million) profit in the fiscal year ended March 31, up from £700,000 the prior year, as the Leeds Bradford-based LCC expanded considerably. Jet2.com added 19 new routes during the year, bringing its total to 133, and enjoyed a 32% year-over-year increase in passengers to 4 million.
A missing oxygen cylinder from the rear of the forward cargo compartment has emerged as the prime focus for investigators of a decompression incident involving a Qantas 747-400 (VH-OJK) operating as QF30 from Hong Kong to Melbourne with 365 passengers and crew Friday.
Emirates will take delivery of the first of 58 GP7200-powered A380s today in Hamburg before flying it to Dubai Tuesday. The interior design has been a closely guarded secret, but insiders in Dubai have told ATWOnline that there is some "clever use of space" on the upper deck, where first and business classes are located. There is a lounge at the rear of the deck, along with two showers. First commercial flight is scheduled for Aug. 1 to New York JFK.
British Airways announced the completion of its £54 million ($107.5 million) purchase of French all-business-class carrier L'Avion Friday. The airline will be integrated into BA's OpenSkies startup by early next year. The combined carrier will operate up to three daily flights between Paris Orly and New York JFK/Newark aboard 757s.
Frontier Airlines announced the receipt of a $75 million commitment in post-petition debtor-in-possession financing from Perseus LLC, a Washington-based investment firm that also will serve as equity sponsor for Frontier's plan of reorganization.
Lufthansa ground and cabin staff represented by ver.di voted to go on indefinite strike from 11 p.m. local time Sunday evening. "Our members are ready for a strike in all areas of the company. From Monday we will be taking industrial action," union chief Erhard Ott said on German television. The strike will affect operations such as maintenance and catering initially and will not start simultaneously throughout Germany, instead affecting airports in stages.
Italian Prime Minister Silvio Berlusconi said Friday that the capital required to fund Alitalia's relaunch has been secured, although he did not disclose the origin of the money. "For now, we have two things--the necessary capital and the slogan 'I love Italy. I fly Alitalia," he told reporters following a cabinet meeting.
Air New Zealand CEO Rob Fyfe told Radio New Zealand listeners last week that further cost-cutting and capacity reductions are on the agenda as the carrier faces fuel costs that doubled to approximately NZ$2 billion in its fiscal year ended June 30. "We'll be doing everything we can to mitigate the deterioration of financial performance on our business,'' Fyfe said, adding, "There are routes where we may look at reducing capacity if we can't cover our costs.
Hawaiian Airlines flew 653.4 million RPMs in June, down 3.7% year-over-year, against a 2.8% lift in capacity to 801.5 million ASMs. Load factor fell 5.5 points to 81.5%. Mesa Air Group airlines flew 526.2 million RPMs in June, down 15.3% from the year-ago month. Capacity fell 12.7% to 669.3 million ASMs and load factor dropped 2.4 points to 78.6%.
Delta TechOps clinched a seven-year deal with Alaska Airlines to provide MRO on CFM56-7s powering 737-700s and -900s. Contract is worth more than $200 million and is expected to draw on Delta's partnership with Chromalloy for engine solutions, quality assurance and economics.
EasyJet enjoyed a 32% year-over-year increase in revenue to £641 million ($1.28 billion) in the fiscal third quarter ended June 30 and said it has offset more than 50% of the expected full-year fuel cost increase with new revenue and cost-cutting initiatives. However, the new fiscal year will dawn with a winter that "will be challenging for the whole airline sector," and the LCC said it will cut capacity growth to 4%-6%, "with flexibility to scale back further."
