European low-cost carrier seat capacity grew 22% in 2007 compared to 2006 and LCCs accounted for 35% of all intra-European capacity last year, up from 31% two years ago, according to the 2008 edition of RDC Aviation's Low Cost Monitor. Number of routes operated by LCCs increased 28.9% year-over-year to 2,999 while the number of airports served rose by six to 287. In comparison, 466 airports received service from conventional carriers, down from 477.
Austrian LCC Niki will add its ninth aircraft, a 212-seat A321, on May 9 and has an additional nine A320 family aircraft on order for delivery by 2014 ( ATWOnline, Jan. 14). "The average age of the fleet is now between 1.5 and two years," founder and majority owner Niki Lauda told ATWOnline.
Ramco said El Al selected its Maintenance & Engineering & MRO Suite featuring legacy system transformation, best-of-breed business process improvement and compliance and conformance for Regional Regulatory Aviation Administration reporting and control requirements.
Frontier Airlines last Friday became the fourth US carrier to file for bankruptcy protection, although unlike recent predecessors Aloha Airlines, ATA Airlines and Skybus Airlines it intends to continue flying while undergoing reorganization. Founded in 1994, the Denver-based carrier blamed "an unexpected attempt by its principal credit card processor to substantially increase a holdback of customer receipts" for its situation, and said it will operate a full schedule, meet its obligations and maintain employment levels and benefits during reorganization.
American Airlines cancelled 595 MD-80 flights Friday and said it expected to be operating 60% of its MD-80 schedule by late that afternoon. It had 226 of its 300 aircraft in service in the morning and said last week it expected to have its full fleet inspected and flying by Saturday evening ( ATWOnline, April 11).
Aer Lingus confirmed a June order for six A350 XWB-900s and six A330-300s following receipt of shareholder approval for the purchase. Ryanair, which holds 29% of EI, voted against the acquisition and had insisted on a renegotiation or cancellation of the contract, saying it was negotiated at an all-time high in the last aircraft value cycle. "We would strongly urge your board and management. .
Allegiant Air parent Allegiant Travel Co. announced the purchase from Finnair of six MD-80s and three spare engines that currently are on lease to FlyNordic, which was sold by Finnair to Norwegian last year. "Our strong financial condition permits us to purchase aircraft for cash," Allegiant Chairman and CEO Maurice Gallagher Jr. said. The airline claimed to be one of only two in the US to carry more cash than debt as of Dec. 31.
Virgin Blue said it expects its profit for the fiscal year ending June 30 to fall more than 50% to approximately A$100 million ($93.2 million), according to a statement cited by press reports. It posted a A$216 million profit in the year ended June 30, 2007 ( ATWOnline, Aug. 22, 2007).
AirTran Airways forecast first-quarter passenger RASM to increase 6%-6.5% from the 9.2 cents it reported in the first three months of 2007, while CASM excluding fuel will rise 0.5%-1% year-over-year from 6.24 cents.
Mexicana yesterday accepted a formal invitation to join the oneworld alliance, giving the group 11 members and a second Latin American foothold; LAN Airlines joined in 2000.
JetBlue Airways founder and Chairman David Neeleman will not stand for reelection at the May 15 annual shareholders meeting and will leave the company in order to focus on his new Sao Paulo-based carrier ( ATWOnline, March 28). Neeleman launched JetBlue in 1998 and ceded his position as CEO following the airline's operational troubles in February 2007 ( ATWOnline, May 11, 2007).
Silverjet yesterday said it is involved in takeover talks with unidentified parties, according to widespread press reports. In a statement cited by Bloomberg News, the all-business-class carrier said it "is currently in discussions which may or may not lead to an offer."
Virgin Nigeria said it was granted US Dept. of Transportation approval to operate transatlantic commercial flights to and from Lagos, pending a signed aviation services agreement between the countries, although the aircraft must be wet-leased from a "duly authorized and properly supervised US or foreign carrier." CEO Conrad Clifford said VK will unveil its schedule "in a few months time." It filed its application in December 2005 and was opposed by some US airlines who claimed it was not a Nigerian-controlled carrier.
Air New Zealand and Qantas yesterday confirmed they would be seeking financial compensation from Boeing as a result of the newly announced delays to the 787 program. Other customers preferred to remain quiet following the manufacturer's Wednesday revelation that the 787's first flight would be delayed an additional six months to the 2008 fourth quarter ( ATWOnline, April 10). Meanwhile, both ANZ and QF said they expected the announcement.
Brussels Airlines said its 2007 net profit nearly doubled to €23.1 million from €13.9 million the previous year, but warned that "high fuel prices, rising inflation, decreasing consumer confidence and increasing competition will have a negative influence on results in the current financial year." Revenue grew 2% to €921 million. It did not disclose its operating result. Number of revenue seats on both SN and codeshare operations increased 1.8% to 5.8 million.
AirAsia will introduce a fee for all checked baggage on flights booked from April 21. Passengers who pre-book their bag will pay MYR3 ($0.94) for each piece up to 15 kg. and those paying at the check-in counter will pay MYR5 per piece. Bags weighing more than 15 kg. will cost extra, although there is no limit on the number of bags that can be checked, while the restriction to one piece of carry-on luggage will remain. "AirAsia believes that guests should be given the option to choose the services they require and pay only for those services.
Aviapartner reported consolidated turnover of €378.6 million ($595.6 million) in 2007, up 35% from 2006. The Brussels-based handler did not release net or operating profit, but CEO Peter Oostenenk told ATWOnline that "operational performance is on track. . .Our profitability is above the sector average," although he conceded that "margins in the market are under pressure." The airport services company, which is majority controlled by 3i, is confident it can maintain strong growth this year.
Alitalia said late Tuesday that its financial situation allows it to continue operations in the "short term" and reiterated the need for "substantial financial support" as forecast in both its budget and the takeover proposal by Air France-KLM. "Only by means of such support will it be possible to regain the required confidence to pursue the company's business plan and hence to confirm continuity of operations," the carrier said following a board meeting. Union representatives are scheduled to meet with AZ management today.
Air France-KLM flew 17.68 billion RPKs in March, up 3.2% from the year-ago month. Capacity rose 4.8% to 21.83 billion ASKs, dropping load factor 1.3 points to 81%. Northwest Airlines flew 7.16 billion consolidated RPMs in March, up 2% over the year-ago month, against a 0.6% lift in capacity to 8.24 billion ASMs. Load factor rose 1.3 points to 87%.
Hit hard by surging oil prices and fierce competition from Cathay Pacific Airways, Oasis Hong Kong Airlines, the 17-month-old low-cost, long-haul carrier, ceased operations yesterday. Oasis CEO Stephen Miller said the airline applied for a voluntary liquidator and that two representatives of KPMG were appointed by the Hong Kong Court to oversee the liquidation.
UPS lowered its first-quarter earnings forecast to $0.86-$0.87 per diluted share from $0.94-$0.98. "The US economy has continued to weaken, causing a reduction in domestic package volume and a shift away from premium products. Significantly increased fuel costs in the quarter also contributed to the lower-than-expected results," the company said. It will release first-quarter earnings on April 23.
North American Airlines and World Airways parent Global Aero Logistics named Executive VP and Chief Commercial and Planning Officer Robert Binns as CEO and Executive VP and Chief Airline Officer Charles McDonald as president. Chairman John Denison had been filling both roles on an interim basis. VP-Market Planning for Global Jeff Sanborn was promoted to chief marketing officer.
American Airlines cancelled "several hundred" flights yesterday in order to conduct additional MD-80 inspections and "ensure precise and complete compliance with the FAA's airworthiness directive related to the bundling of wires in the aircraft's wheel wells." AA said the cancellations could number as many as 500 by the end of yesterday and that additional cancellations are likely today.
US Dept. of Transportation named Marie Kennington-Gardiner as its New York Aviation Czar. She will direct the newly formed New York Integration Office and "coordinate regional airspace issues and all projects and initiatives addressing problems of congestion and delays in New York." Creation of the position was part of a December compromise reached between DOT and US airlines ( ATWOnline, Dec. 20, 2007).
