Oman Air transported 445,923 passengers in the first quarter, a 49.9% increase from the year-ago period. It said it lost money during the quarter "because of the foremost expansion programs to make the airline competitive."
CAE won orders for full-flight simulators and related Simfinity training devices valued at more than C$56 million ($56.6 million) from Aeroflot, Ansett Aviation Training, Skymark Airlines and a JV company that owns 50% of CAE's training center in Bangalore. SU purchased a CAE 5000 Series A320 FFS slated for delivery to its Moscow facility this year, while Skymark ordered a CAE 7000 Series 737-800 FFS for 2009 delivery. AAT committed to a CAE 7000 Series A320 FFS.
JOACHIM BUSE BELIEVES good procurement is a consummate balancing act--trying to drive the lowest possible cost without letting that cost cripple contenders. "It's our job to reduce costs and be aggressive pricewise," says Lufthansa Passenger Airline's corporate procurement VP. But in the end analysis suppliers have got to make a decent living.
THERE IS MAGIC IN THE AIR AT SOUTH KOREA'S ASIANA Airlines. Whether it is flight attendants trained to entertain passengers with sleight-of-hand tricks or the industry-leading reliability of its aircraft and engines, the magic is working. But everything has not always worked like magic for Asiana, which turned 20 in February.
Aer Lingus appointed Greg O'Sullivan group company secretary succeeding Laurence Gourley, who becomes head-legal affairs. AJ Walter promoted Conrad Vanderluis to MRO director. Alaska Air Group elected Joe Sprague VP-Alaska Air Cargo and Ann Ardizzone VP-inflight services, Alaska Airlines. Aviareto elevated Rob Cowan to MD. AWAS welcomed J.T. Foo as VP-sales-Asia/Pacific. Billund Airport named Jesper Klausholm marketing mgr. Blue Sky Network tapped Carlton van Putten as senior VP-sales & marketing.
Robust demand and a 10% increase in its average fare helped AirAsia avoid the pitfalls plaguing most of the industry during the first quarter as the Malaysian LCC reported a MYR161.3 million ($49.7 million) net profit that represented an 86% improvement over the MYR86.9 million profit earned in the year-ago quarter.
Mesa Air Group yesterday won a preliminary injunction in US District Court when a judge blocked Delta Air Lines from terminating its contract with Mesa subsidiary Freedom Airlines, which operates 34 ERJ-145s for Delta Connection. Delta notified Mesa in late March that it would end the service agreement, claiming that Freedom had failed to maintain an acceptable completion rate.
Austrian government, which holds 38% of Austrian Airlines Group via state holding company OEIAG, demanded that the carrier determine whether it will continue as a standalone enterprise or look to align with a strategic partner such as Lufthansa or Air France KLM ( ATWOnline, May 16). A survival plan should be presented this summer, or by autumn at the latest. AAG, which has debts of close to €1 billion, has been hit by high fuel prices, a relatively old fleet (average 9.2 years) and high employee costs.
Air One will outsource its international cargo business to Cargo Counts, a subsidiary of Lufthansa Cargo, as part of a three-year Total Cargo Management agreement encompassing sales, marketing, freight handling, accounting, IT and controlling as well as flight data, yield and capacity management. Collaboration begins June 14 with the launch of AP's five-times-weekly Milan Malpensa-Boston service and subsequent six-times-weekly MXP-Chicago O'Hare flights aboard A330-200s.
DHL's plan to shift its US air lift from ABX Air and Astar Air Cargo to rival UPS leaves the fate of both airlines and the DHL-owned Wilmington, Ohio, air hub in limbo, with thousands of job losses and dozens of aircraft sales possible. The transition from ABX and Astar to UPS likely will take 12-18 months ( ATWOnline, May 29). DHL hopes to finalize a contract with UPS within the next three months and likely won't be able to make any definitive moves until the exact language is determined.
ACE Aviation Holdings, which was created in 2004 as part of Air Canada's restructuring and subsequently spun off AC and regional Jazz as independent entities, said yesterday that it has sold its remaining stakes in Aeroplan and Jazz as part of its plan to wind down operations within the next 3-6 months pending disposal of its assets ( ATWOnline, May 12). It sold 19.9 million Aeroplan shares for C$349.3 million ($351.7 million) and 11.7 million Jazz units for C$85 million.
Air Berlin narrowed its first-quarter net loss to €59 million ($92.5 million) from €66.4 million as rising sales and hedges helped offset the "significant" jump in fuel costs. Sales revenue for the group, which includes LTU and Belair, rose 4% to €654.5 million and its operating loss of €67.7 million represented a 20% improvement from an €85 million deficit in the year-ago period.
Iberia might reassess its offer for Spanair, which it launched in February ( ATWOnline, March 26). "The truth is the clock is ticking. The environment is changing. We have to consider what the future of our offer is within this new market environment," Chairman Fernando Conte told a news conference before IB's annual shareholders meeting, Reuters reported.
Cathay Pacific Airways plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. COO John Slosar told Hong Kong media that the carrier is considering a variety of replacement aircraft and that "the A380 is also an option." In the interim, it will raise its fuel surcharge 37% from June 1 in an effort to negate 40%-50% of the increase in fuel prices. CEO Tony Tyler said fuel now accounts for 40% of CX's total operating costs, up 10 points from last year.
Mesa Air Group will file for bankruptcy by July 20 if Delta Air Lines is allowed to terminate its service agreement with the Phoenix-based regional, according to a report by the Associated Press. "We are prepared to file for bankruptcy," Mesa President and COO Michael Lotz reportedly told a US district judge at an Atlanta hearing Tuesday.
Record revenue was not enough to offset a difficult economic environment and a one-time provision related to potential liability for anticompetitive cargo activities as El Al sank to a $49.9 million first-quarter loss that was more than three times the $15.3 million lost in the year-ago period.
Former EADS co-CEO Noel Forgeard was detained by French police yesterday in relation to the ongoing probe into insider trading allegations regarding the June 2006 A380 delay announcement.
JetBlue Airways will defer delivery of 21 A320s to 2014-15 from 2009-11 to "help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations," CEO Dave Barger said.
Dnata Cargo, Kanoo and SDV International Logistics yesterday entered into a JV to bolster logistics services in the UAE. Kanoo and Dnata will split 51% of the venture and 49% will be owned by SDV.
Qantas will slash capacity by 5% due to rising fuel prices and warned the Australian Stock Exchange yesterday that it plans to cut its fleet, network and workforce as it expects its fuel bill to increase by more than A$2 billion ($1.92 billion) in the 2008-09 fiscal year.
Gulf Air ordered 20 A330-300s and 15 A320s, a commitment that will more than double the Bahraini carrier's Airbus fleet, the manufacturer announced yesterday. The airline already operates 10 A320s, six A330-200s and nine A340-300s and in January signed a contract with Boeing for 16 787s ( ATWOnline, Jan. 21).
Iberia Maintenance signed a long-term agreement with DHL to overhaul more than 80 RB211-535C37 engines powering 34 aircraft operated by DHL Air and European Air Transport.
Italian administrative court ordered that a new tender be organized for Volare within 15 days, confirming that Alitalia's 2006 acquisition of the LCC violated procedure, Reuters reported. AZ rival Air One also wanted Volare and brought the case to court ( ATWOnline, June 6, 2006).
