Shanghai-based Spring Airlines and Juneyao Airlines stood out among China's struggling privately held airlines and reported a profitable 2008. Spring posted a CNY21 million ($3.1 million) net profit last year, down 70% from the more than CNY70 million earned in 2007. It credited the result partly to a CNY20 million civil aviation infrastructure payment imposed in the second half of last year. Its operating revenue climbed 32% year-over-year to CNY1.62 billion as it transported 2.9 million passengers, up 26%, with an average load factor of 93.3%.
Air Canada and Jazz Air said yesterday that they reached agreement on "new rates for controllable costs" to be paid by AC to Jazz as part of the capacity purchase accord under which the regional operates flights on behalf of the flag carrier. The rates, which were not disclosed, are retroactive to Jan. 1 and will extend to the end of 2011. Additionally, AC announced that it concluded a secured financing transaction valued at $37 million with Norddeutsche Landesbank Girozentrale that increases a previously announced facility for $78 million with Calyon New York Branch and NLG.
Austrian Airlines Group is facing massive challenges to liquidity, with COO Mepeter Malanik saying Friday, "Demand is collapsing and the outlook offers very little reason to be optimistic." He added, "We expect to see a reduction in revenue of up to 15% at the Austrian Airlines Group in 2009, equivalent to approximately €225 million ($294.4 million)." The announcement came a day after the dismissal/resignation of CEO Alfred Oetsch ( ATWOnline, Jan. 27)
Southwest Airlines announced a tentative five-year deal with the Southwest Airlines Pilot Assn. that will run through Aug. 31, 2011, if approved by the union's board and membership. SWA has been negotiating with the pilots since September 2006. According to a statement from the airline, the agreement "delivers raises and increased benefits" to its pilots. It is subject to approval by the SWAPA board after which it will be submitted to union membership for ratification. WN also announced that 2,500 mechanics represented by the Aircraft Mechanics Fraternal Assn.
Boeing resumed production on the fifth 787 flight test aircraft, ZA005, joining the fuselage and wings on Jan. 29 ( ATWOnline, Jan. 28). It is the first GEnx-powered 787. VP-787 Final Assembly and Change Incorporation Jack Jones said the join marked the company's "return to a steady production rhythm." Five of the six flight test aircraft now are in production, with first flight scheduled for the second quarter. Assemblies for 30 787s, including the sixth test aircraft, currently are in production.
EASA awarded type certification to the Tu-204-120CE, a dedicated cargo version of the aircraft powered by two RB211-535E4s. It also offers an "English-language cockpit" with operations documentation in English. The certificate is valid in the EU, Switzerland, Norway, Iceland and Liechtenstein, where the aircraft now can be registered and operated legally. It is the first EASA approval for a transport aircraft designed by an organization from Russia/CIS. EASA Executive Director Patrick Goudou said he was "confident it will serve as a model for future projects."
BAE Systems Regional Aircraft said its lease portfolio and support business remained strong in 2008 despite the increasingly difficult economic climate. "The Regional Aircraft team has performed well, winning significant new business across all sectors despite a worsening trading environment," MD Alan Fraser said. Last year 75 aircraft were placed through new leases, extensions and sales. There were 41 separate BAe 146/Avro RJ transactions in 2008. BAE ended production of its line of regional jets in November 2001 but has remarketed aircraft and support services actively since then.
A ¥12.6 billion ($140 million) loss in its third fiscal quarter ended Dec. 31, reversed from a ¥12.4 billion profit in the year-ago period, combined with "the likelihood of the situation worsening in the foreseeable future," led ANA to predict its first full-year deficit since 2002-03.
SAS Group announced the completion of its sale of a majority share in Spanair and its entire stake in airBaltic. A consortium of Spanish investors led by Consorci de Turisme de Barcelona and Catalana d'Inciatives acquired an 80.1% stake in Spanair for €1 ($1.31), leaving SAS with the remainder ( ATWOnline, Dec. 19, 2008). SAS took a SEK712 million ($87.9 million) loss on the deal that will reflect on its fourth-quarter balance sheet.
British Airways Chairman Martin Broughton indicated the airline soon will decide whether to proceed with its planned merger with Iberia "I would be very concerned if we weren't able to make a call at least in the first [fiscal] quarter" starting April 1, Broughton told The Wall Street Journal.
Japan Airlines Friday conducted the latest biofuel test flight, operating a 747-300 partially powered by fuel derived primarily from the camelina plant. The 90-min. flight from Tokyo Haneda followed recent biofuel demonstration flights conducted by Air New Zealand and Continental Airlines ( ATWOnline, Jan. 8). A 50/50 blend of traditional jet fuel and camelina-based biofuel powered one of the aircraft's four Pratt & Whitney JT9Ds. It was the first biofuel test flight using Pratt engines.
"Clearly the pension issue is foremost in our minds," AC President and CEO Montie Brewer recently told analysts and reporters. "Pension rules in Canada are not aligned with the US. . .The rules have to be realigned."
Japan Airlines joined the exclusive biofuel club on Jan. 30 when one of its Pratt & Whitney JT9D-powered 747-300s took off from Tokyo Haneda with one engine powered by a 50/50 biofuel/jet fuel blend. The biofuel was a cocktail of camelina (84%), jatropha (16%) and algae (less than 1%). JAL reported that the 90-min. flight went off without a hitch. As with other biofuel test flights, "no modifications to the aircraft or engine were required," the airline said in a statement. Capt. Keiji Kobayashi said, "Everything went smoothly.
IT IS OBVIOUS WE ARE FIGHTING FOR THE AIR FRANCE GROUP. BUT IN actual fact, we are also fighting for France." Former Air France Chairman Christian Blanc's 1996 expression of an inextricable link between France's soul and its national airline may belong to a vanishing mindset in Europe, but it is very much the kind of thinking that shapes the view of
British Airways announced an environmental target of halving net CO2 emissions by 2050. The target, one of the most ambitious by an airline, was announced last month in Hyderabad by CEO Willie Walsh. He said, "While some people say that in economic times as desperately tough as these we can afford to put climate change issues on one side, I could not disagree more. Halving CO2 by 2050 is an extremely challenging target. But it is one I am sure we can achieve."
US Airways posted a 2008 net loss of $2.21 billion, reversed from a $427 million profit in 2007, as it contended with a roller-coaster oil market that led to significant losses on fuel hedges. In addition to $496 million of unrealized losses on mark-to-market hedging adjustments, US recorded a $622 million noncash charge to write off goodwill created by the America West Airlines merger. The carrier has moved quickly to reduce its hedging position in 2009. Executive VP and CFO Derek Kerr said 14% of its fuel consumption is hedged for the year, with none in the fourth quarter.
JetBlue Airways yesterday reported partial full-year and fourth-quarter results, including a $76 million pre-tax loss that represented a reversal from a $41 million pre-tax profit in 2007. It said it refrained from reporting net results because it is evaluating the tax deductibility of a $53 million noncash charge taken in the fourth quarter related to the valuation of its auction rate securities. It plans to report complete results in mid-February. Full-year operating revenue climbed 19.2% year-over-year to $3.39 billion against a 22.7% increase in expenses to $3.28 billion.
WestJet has chosen SabreSonic Customer Sales and Service as its new reservations system, bringing an end to a search that began with its 2003 decision to replace Navitaire's Open Skies and included a two-year detour with aiRES. WS Executive VP-Commercial Distribution Hugh Dunleavy said SabreSonic's scalability--"We've been growing very quickly"--and its bidirectional marketing and operational capabilities for codeshare agreements were among the features that sealed the deal.
European Commission accepted measures taken by France to end the differentiation in passenger charges between domestic flights and those from/to Schengen countries.
Continental Airlines reported a 2008 net loss of $585 million, reversed from a profit of $459 million in the year-ago period, citing a deteriorating demand environment, a severe and "unprecedented" December winter storm at its Houston Intercontinental hub and special charges related to fuel hedging contracts and pension settlements.
Fuel hedge losses, restructuring charges and special items sank Alaska Airlines and Horizon Air parent Alaska Air Group to a $135.9 million net loss in 2008, reversed from a $124.3 million profit in 2007.
Austrian Airlines Group CEO Alfred Oetsch resigned yesterday. He will leave the company on Jan. 31, which would make him the shortest-tenured CEO in the carrier's history. He took over in May 2006. COO Peter Malanik and CCO Andreas Bierwirth will fill in for Oetsch temporarily and Austrian media are speculating that Swiss International Air Lines Chief Network & Distribution Officer Harry Hohmeister could succeed Oetsch, 55, who said the company's takeover by Lufthansa necessitated a new start on the personnel side. Swiss and AAG both are Lufthansa subsidiaries.
Lufthansa supervisory board Chairman Juergen Weber told Frankfurter Allgemeine Zeitung that "if the conditions are right, SAS will become interesting for us" as an acquisition target.
Fraport plans to sell its 65% stake in loss-making subsidiary Frankfurt-Hahn next month, CEO Stefan Schulte said during a German Luftfahrt Presse Club event.
