South African Airways reported a ZAR1.09 billion ($142.5 million) loss in the fiscal year ended March 31, widened from ZAR833 million the previous year, Bloomberg News reported. The result reportedly was driven by costs related to a restructuring program that included the grounding of its 747-400 fleet and nearly 2,000 layoffs ( ATWOnline, May 26). Excluding the restructuring costs, it was ZAR123 million in the black.
iSeatz launched its standalone booking engine developed for Delta Air Lines and featured on DL's website. Technology offers advanced travel purchasing options and ancillary service connections.
Expansion and fuel costs weighed heavy on Norwegian's bottom line in the second quarter as the LCC reported a NOK62.2 million ($12.3 million) loss that represented a reversal from a NOK44.7 million profit in the year-ago period.
Spanair yesterday unveiled a "feasibility plan" designed to negotiate the "economic crisis" and rising fuel prices that will generate an estimated €90 million ($143.4 million). It will ground 15 aircraft in September and October, lay off 900 fulltime employees and permanently cancel service from Madrid to Vienna, Munich, Girona, San Sebastian, Granada and Oviedo as well as Barcelona-Zurich, Bilbao-Malaga and Bilbao-Jerez. It still will operate more than 80% of its network, equal to 260 daily flights to 48 destinations.
Such is the state of the US airline industry that Delta Air Lines CEO Richard Anderson found a silver lining to the $1.04 billion second-quarter loss announced yesterday, which represented a reversal from the $164 million earned in the year-ago quarter.
TAP Portugal will reduce capacity by approximately 40 flights per week during the coming winter season, CEO Fernando Pinto confirmed to ATWOnline last week. Reductions will be a mix of intercontinental and European frequencies and no destinations or aircraft are expected to be cut.
Finnair is investigating importing jet fuel to Finland as prices are increasing and competition among fuel providers is limited. It expects this year's fuel bill to top €600 million ($956.3 million).
In conjunction with its effort to enhance its "Beijing hub" strategy and boost domestic and international frequencies from the capital, Air China plans to order 15 777s and 30 737s. According to a CA statement released yesterday by the Shanghai Stock Exchange, the airline negotiated a deal less than the $6.3 billion list price for the 45 aircraft, which will be delivered between 2011 and 2015 and will boost its capacity by 35%. The order still requires approval from CA shareholders and the Chinese government.
ILFC announced the following lease agreements: One used 737-800 to Miami Air International for four years; four new A321-200s and two used A330-200s to Vietnam Airlines for 10 and eight years each respectively; three used A330-200s to Gulf Air for eight years each; one new A321-200 to Air France for six years; one used 737-800 to Caribbean Airlines for three years; two new A321-200s to Aegean Airlines for six years each; one new 737-800 to Oman Air for 10 years; two used 737-800s to Orenburg Airlines for five years each; two used A320-200s and three used 767-300ERs to Rossiya for five a
Ryanair will cut its winter schedule at Dublin, reducing based aircraft to 18 from 22 and the number of weekly flights to 1,190 from 1,352. It estimated a passenger decline of around 500,000 from winter 2007-08. It said DUB is the second most expensive of its base airports and that a written request to the airport to have fees reduced was "dismissed by the DAA monopoly." It said the airport charges up to €15 ($23.84) per departing passenger.
Sama, the year-old Dammam-based carrier, said shareholders have agreed to contribute an additional SAR200 million ($53.3 million) in financing. SAR300 million was invested at startup and the company said its revenue rose more than 250% in the first half of 2008. It serves 12 Saudi and 10 Middle Eastern destinations.
Dublin-based Aergo Capital reached agreement to acquire the aviation assets of South African Imperial Holdings, comprising Safair and Safair Lease Finance. Aergo currently has 65 commercial aircraft on its portfolio on lease to 20 carriers and will add 31 with the Safair acquisition.
US Airways Group took a $622 million noncash charge in the second quarter to write off the goodwill it had recorded on its balance sheet that was created by the merger of the old US and America West Holdings three years ago. It said the charge was the result of an interim period goodwill impairment test performed due to the high fuel prices "that have adversely impacted the company's business." It said it also will report an $18 million noncash charge related to the decline in value of specific 737 spares. It will announce its second-quarter results on July 22.
US Air Transport Assn. said airlines' composite cost index in the first quarter rose 31.3% year-over-year to 228.7, the fastest growth since the second quarter of 1980 and greater than the US Consumer Price Index increase of 4.2%. Fuel climbed 28.7% and accounted for 29.4% of first-quarter operating costs. Overall unit cost rose 12.4% to a record 13.72 cents while yield climbed 2.6%.
Delta Air Lines CEO Richard Anderson will run the merged DL/Northwest Airlines out of Atlanta, the carriers announced yesterday as they unveiled the senior management team for what would be the world's largest airline, saying the team will "ensure the seamless transition of Northwest's operations into Delta over the next 12-24 months."
Vietnam Airlines reported a loss of $5 million in the first half of 2008, Reuters reported from Hanoi. It posted a pre-tax profit of $13.3 million in the year-ago semester. Revenue in the recently completed six-month period climbed 28% year-over-year to $733 million and passenger numbers rose 15% to 4.4 million.
SAS Group likely will announce a new cost savings program featuring further "dramatic" cuts as it grapples with high fuel prices and weakening demand, CEO Mats Jansson told Sweden's Dagens Industri. SAS announced in April the removal of 11 aircraft from the fleet and a workforce reduction of 1,000 employees ( ATWOnline, April 30).
GMT Global Republic Aviation announced the acquisition of four A320-200s worth $68 million from Aercap Holdings. Aircraft are on lease to TAM until 2012. Dublin-based GMT now owns 16 aircraft.
The SpiceJet board yesterday announced that asset management firm WL Ross & Co. will invest approximately $80 million in the New Delhi-based LCC as Kingfisher's efforts to acquire the carrier were rebuffed.
Chinese carriers experienced declining market demand in June owing to slowing domestic economic growth and the continuing effect of natural disasters, according to CAAC. Passenger numbers fell 3.8% year-over-year to 14.2 million and load factor was down 2.1 points to 72.3%. Daily utilization dropped sharply, falling 10.5% to 8.5 hr. due to route cancellations caused by rising fuel prices. Half-year passenger numbers grew 5.4% to 91.8 million and load factor remained level at 74.1%. Utilization rate fell 6.3% to 9 hr.
Continental Airlines said it will report a $22 million special gain when it announces its second-quarter results Thursday. The gain is the result of a variety of special items. CO took a $58 million charge representing impairment charges recorded for owned aircraft and related spare parts, including a $51 million writedown in the value of its 737-300/-500 aircraft and related assets ( ATWOnline, June 6).
Air Macau has become another victim of surging oil prices and is clinging to survival as it awaits help from parent Air China Group. According to China Business News, the Macau carrier posted a net loss in excess of MOP200 million ($24.6 million) in the first six months of this year, more than half of its registered capital of MOP400 million.
Republic Airways Holdings will cut 10% of its employees, or 500, "in response to changing market conditions and expected reductions in its small jet contract flying," it said Friday. It said cuts will take place over the next several months and that "a portion will occur through normal attrition." Chairman, President and CEO Bryan Bedford said the reductions "reflect our response to the actions our network partners are taking to reduce the size of their domestic hub operations in light of sustained, high fuel prices.
Lufthansa Chairman and CEO Wolfgang Mayrhuber told ATWOnline at last week's Star Alliance meeting in Cairo that "we face heavy headwinds and will have a very close look at capacity for the coming winter schedule," with several options for reductions already available should demand weaken. "Thanks to our writeoff policy [after 12 years aircraft are written off the balance sheet], we can ground in a worst-case scenario up to 80 aircraft without suffering cash losses in terms of leasing contracts," Mayrhuber said. LH owns 80% of its fleet.
