Clickair and Vueling Airlines shareholders likely will produce an MOU in the coming weeks that will trigger the merger of the two Barcelona-based LCCs, Iberia Chairman and CEO Fernando Conte told ATWOnline during the IATA AGM in Istanbul.
Shanghai Airlines expects a turnaround this year "as long as the rising oil price doesn't get out of control," VP Chen Zhuofu told ATWOnline yesterday at the IATA AGM in Istanbul. "Our cargo subsidiary will narrow its loss by a big margin this year, which definitely will relieve our operating pressure," Chen explained. Shanghai Airlines Cargo International, launched in July 2006, was cited as one of main drivers of SAL's CNY497.6 million ($71.7 million) loss in 2007 ( ATWOnline, April 29).
ExpressJet Holdings, which rejected a takeover offer from SkyWest Inc. in April ( ATWOnline, April 28), said it will return to the bargaining table to seek a new capacity purchase agreement with Continental Airlines. The renegotiation is part of a "full range of strategic" alternatives ExpressJet said it would consider when it rejected the SkyWest approach. It also will seek stockholder approval to issue additional common stock. The company announced last month that it will cut capacity by an estimated 30% until Nov.
Aeromexico reached a labor agreement with ASSA, which represents nearly 1,500 cabin staff, including a 4.5% salary increase and concessions allowing the airline "to have access to greater crew availability," it said. The union had threatened to strike and the deal was reached "after several days of intense negotiations," AM said last weekend.
Sun Country Airlines will lease an additional 737-700 for use "during its busy summer travel season" and said it will recall pilots impacted by its April furloughs ( ATWOnline, April 15). Lessor was unidentified.
Icelandair reported a ISK1.7 billion ($22.6 million) loss in the "normally negative" first quarter, deepened from a ISK1.2 billion loss in the first three months of 2007. Revenue rose 18% to ISK14 billion and operating loss was ISK1.7 billion. A year-ago comparison was not provided. Icelandair Group CEO Bjorgolfur Johannsson said the quarter still "was somewhat better than anticipated in much more difficult conditions than last year." Fuel costs increased by ISK1 billion year-over-year and the 2007 result also was boosted by ISK1.2 billion in proceeds from aircraft sales.
Italy's Air One has just released its 2007 results, calling its €6.8 million ($10.6 million) net profit "satisfactory." It reported a €6 million profit in 2006.
One-time items, including a huge writedown of its stake in Aer Lingus, resulted in a rare profit drop at Ryanair in the fiscal year ended March 31, when it earned €390.7 million ($607.2 million), down 10.3% from the €435.6 million net posted in the preceding 12 months.
Air France KLM Chairman and CEO Jean-Cyril Spinetta said the company remains very keen on participating in European consolidation, but he denied rumors the group is looking at acquiring Austrian Airlines.
Kenya Airways reported a net profit for its fiscal year ended March 31 of KES3.87 billion ($60.7 million), down 5.6% from KES4.1 billion earned in the prior year, a drop it attributed to political violence in the country during the final quarter following a disputed election in late December.
China Southern Airlines signed a framework agreement with Air France KLM to launch a cargo joint venture, CZ President Liu Shaoyong told ATWOnline yesterday at the IATA AGM in Istanbul.
Dubai Aerospace Enterprise is in talks to order an additional 50 aircraft worth approximately $2.5 billion in the next 18 months, DAE Capital CEO Bob Genise told Reuters. "Despite the rise in jet fuel prices, there are pockets of strong performance," he said. The lessor committed to 200 aircraft at last year's Dubai Air Show ( ATWOnline, Nov. 13, 2007).
Aloha Airlines, which shut down in March after declaring bankruptcy ( ATWOnline, April 1), is trying to sell off a legal claim filed in 2006 against Mesa Air Group, according to the Honolulu Star-Bulletin. Aloha said it will file a motion with the court next week, anticipating an auction the following week. "A lawsuit is no different than a propeller," said James Wagner, an attorney for Aloha Chapter 7 trustee Dane Field.
Italian government authorized Finance Minister Giulio Tremonti to organize the sale of its 49.9% stake in Alitalia, with Intesa Sanpaolo serving as adviser.
Iberia decided to withdraw its bid for Spanair last week, shortly after telling reporters at its annual shareholders meeting that it had decided to "consider what the future of our offer is within this new market environment" ( ATWOnline, May 30), Reuters reported. It then submitted a stock exchange filing indicating it would withdraw the bid. Spanair parent SAS Group did not comment.
AirTran Airways will defer the delivery of 18 737-700s from 2009-11 to 2013-14, it announced Friday. President and CEO Bob Farnaro said the deferment will "accomplish a substantial portion" of the carrier's previously announced plan to reduce 2008-09 growth from 10% to "no more than flat" ( ATWOnline, April 23). It currently operates 54 -700s and 87 717-200s.
Turkish Airlines reported a first-quarter net profit of $104 million, which it said represented a 260% increase over the year-ago result. Revenue rose 33% to $910 million and operating profit was up 1% to $84 million. THY did not offer details on the reason for the surge in net result. Passenger numbers increased 16% year-over-year to 4.5 million, with 76% of scheduled revenue coming from international traffic. RPKs climbed 15% against a 10% increase in ASKs, lifting load factor 3 points to 70%.
While United Airlines and US Airways both reiterated that they are strong believers in consolidation, the two carriers announced on Friday that they will not enter into a merger "at this time."
Swiss International Air Lines named Peter Spring CCO of its Edelweiss Air subsidiary effective Aug. 1. BAA and Ferrovial named Stephen Peat MD of its new airports division with responsibility for running six of BAA's seven UK airports (excluding London Heathrow). He currently is director-operations for Ferrovial subsidiary Amey's Tube Lines consortium.
JetBlue Airways increased the offering size of its 5.5% convertible debentures due 2038 to $175 million from the $160 million announced earlier last week ( ATWOline, May 29). Sale of the two series of debentures worth $87.5 million each is expected to close Wednesday.
A TACA A320-200 overran the runway at Tegucigalpa's Toncontin International Friday morning, crashing into a street and buckling and cracking as it collided with a billboard, an embankment and several cars, according to published photos and reports. A pilot, two passengers and a motorist reportedly died and 81 people were injured, according to the Associated Press. The carrier confirmed the incident on its website but did not report the deaths. It said there were 124 passengers onboard.
Frontier Airlines lost $16.5 million in its first three weeks of bankruptcy to April 30, it reported in a filing to the US Securities and Exchange Commission. Revenue of $69.1 million was offset by expenses of $81.4 million, resulting in an operating loss of $12.3 million. Frontier also announced an agreement with First Data Corp., the credit card processor whose decision to increase customer receipt holdback drove the Denver-based carrier into bankruptcy ( ATWOnline, April 14).
Unable to secure critical funds from UAE-based investment group Viceroy Holdings, all-business-class carrier Silverjet shut down Friday, following Eos Airlines and MAXjet Airways into the history books.
US and Kenya announced an open skies agreement in Washington Friday. Deal is effective immediately and allows US carriers to fly to another African country from Kenya after three years. Kenya is the US's 20th open skies partner in Africa.
