Delta Air Lines flew 8.91 billion system RPMs in November, a 4.9% decrease from the year-ago month. Capacity fell 5.3% to 11.5 billion ASMs, lifting load factor 0.3 point to 77.4%. Northwest Airlines flew 5.67 billion system RPMs in November, down 7.4% year-over-year. Capacity dropped 4.7% to 7.08 billion ASMs and load factor fell 2.3 points to 80.1%. Republic Airways flew 727 million RPMs in November, down 6.5% year-over-year. Capacity declined 0.2% to 1.08 billion ASMs and load factor was down 4.6 points to 68.8%.
Qantas CEO Alan Joyce warned that there is "no guarantee" of any deal with British Airways and there will be no three-way combination including oneworld partner and BA merger target Iberia. In his first public speech since taking over as CEO, Joyce told attendees at the Australia-Israel Chamber of Commerce luncheon in Sydney yesterday that there are "a number of significant matters that still need to be resolved, including agreeing on an appropriate merger ratio and resolving issues around BA's pension fund and the broader economic outlook."
The Brazilian Air Force is set to release a final report on the Sept. 29, 2006, midair collision between a Gol 737-800 and an ExcelAire Legacy 600 that led to the deaths of all 154 aboard the 737, and reportedly it will cite as primary causes the ExcelAire pilots' negligence in inadvertently turning off the aircraft's transponder and a series of mistakes by air traffic controllers. The report is expected to be released officially tomorrow after victims' families have been given an opportunity to review it. Brazilian media reported the findings over the weekend.
A J Walter Aviation opened a Dubai office to support hubs in London, Singapore, Miami and Prague. Site will advance management services across the region.
EADS said Friday that it will "simplify" Airbus's corporate structure by merging the Airbus France unit into the Airbus SAS entity next year, but denied European news reports that it would be forced to inject as much as €2 billion ($2.54 billion) collectively into Airbus's French, German, British and Spanish units to cover cost overruns. "We are simply going to move the Airbus France capital into the Airbus SAS holding company," an EADS spokesperson told Agence France Presse. "There is no EADS money involved in this process.
China Eastern Airlines appealed to China's Ministry of Finance for a reduction in its tax liabilities as it reported a CNY1.83 billion ($265.5 million) fuel hedging loss as of Oct. 31. CEA CFO Luo Weide said the carrier's tax burden includes a business tax, import tax, value-added tax and civil aviation fees. It paid approximately CNY20.6 billion to the Beijing government from 2002 through the first half of this year.
Aer Lingus said Friday that a "sufficient" number of SIPTU employees accepted voluntary leave at Dublin, Cork and Shannon to deliver the carrier's targeted savings of €25 million ($31.7 million), which also will include work rule and pay changes accepted by the union last week ( ATWOnline, Dec. 5). EI CEO Dermot Mannion said the restructuring "will provide an excellent platform for growth at each base in the future."
Ryanair transported 4.3 million passengers in November, up 11% year-over-year. Load factor rose 1 point to 79%. EasyJet transported 3 million passengers in November, up 3.4% year-over-year. Load factor rose 3.1 points to 83.9%.
Austrian state holding company OIAG's supervisory board approved the sale of its 41.56% stake in Austrian Airlines Group to Lufthansa for €366,268.75 ($464,865) on Friday, continuing the German airline's aggressive European shopping spree.
AirAsia said Friday that majority shareholder Tune Air is "unable to secure financing" for its bid to acquire the remaining shares of the carrier and take it private owing to "tight credit market conditions." Tune Air, which holds a 30.9% stake in AirAsia, said in October it was "considering" the step ( ATWOnline, Oct. 10). But the global credit crunch means that it "is unable to form a firm intention to proceed," AirAsia said in an announcement to the Bursa Malaysia.
European Commission is expected to announce on Dec. 16 its decision on the proposed merger of Vueling Airlines and Clickair. Competition authorities were notified of the merger on Nov. 11 ( ATWOnline, Aug. 1).
Kartika Airlines of Jakarta signed a deal with Sukhoi Civil Aircraft for 15 firm Superjet 100s worth $448 million plus 15 options, the manufacturer announced Friday, according to press reports from Moscow. Deliveries of the 95-seat aircraft are scheduled to begin in 2011. Kartika operates 737-200s.
Continental Airlines completed installation of Panasonic eFX on-demand inflight entertainment systems in the economy cabins of its 39 757-200s. All aircraft will be in service by Dec. 23. In-seat power ports also were installed. IFE installations continue on CO's 777s, with 14 of 20 aircraft outfitted and the remainder scheduled to be complete by May. CO also announced an agreement with LiveTV allowing it to offer 80 channels of DirectTV programming throughout its 737NG and 757-300 fleets.
SkyEurope Airlines reported a €59.4 million ($75.4 million) loss in the fiscal year ended Sept. 30, more than double the €24.1 million suffered in the prior year, as benefits from a restructured and streamlined network failed to materialize in time to offset record fuel costs.
Abu Dhabi Aircraft Technologies will provide Dubai-based Silver Air with MRO services on three 737-200s and a 737-300 under a Total Care Solution agreement.
US Air Transport Assn. announced the election of United Airlines Chairman, President and CEO Glenn Tilton as chairman, effective immediately. He will serve two years and succeeds former Northwest Airlines Chairman and CEO Doug Steenland. CFM International named Chaker Chahrour executive VP, effective Feb. 1. He is currently head of sales and pole executive for GE Aviation in the Asia/Pacific based in Singapore. He will succeed Bill Clapper, who will be on special assignment as he transitions to retirement later in 2009, CFM said. Chahrour joined GE Aviation in 1979.
Compagnia Aerea Italia's purchase and relaunch of Alitalia received final approval by Italian and European competition authorities yesterday, with the former stipulating that at least 10% of seats on each flight be available at the "cheapest price." Those fares would be based on the lowest prices offered by AZ and Air One in the previous travel season. The Italian authorities also reserved the right to issue an additional ruling once CAI chooses either Lufthansa or Air France KLM as its foreign investor.
In an effort to win support from Aer Lingus shareholders, particularly the Irish government and employees who hold 25.1% and 14.2% stakes respectively, for its renewed all-cash takeover offer, Ryanair yesterday committed to recognizing EI's unions, restoring daily Shannon-London Heathrow service and ceding control of EI's LHR slots to the government.
Sun Country Airlines received US Bankruptcy Court approval for a line of credit that will allow it to restore employees to full pay and meet other financial obligations. The Minneapolis-based carrier, which is working its way through Chapter 11 restructuring ( ATWOnline, Oct. 20), was paying workers just 70% of their salaries. SCA did not reveal the origin of the debtor-in-possession financing, but news reports named Elite Landings, another subsidiary of SCA parent Petters Group Worldwide.
Turkish Aerospace Industries reached a $500 million deal with Airbus to produce parts for A350s. Agreement will create 400 direct jobs and indirectly employ 1,200, the companies said.
Finnair said the one-week closure of Bangkok Suvarnabhumi (see story above) will cost the carrier approximately €4 million ($5.1 million), with "consequential effects. . .expected to increase the final cost total further."
Bombardier Aerospace reported a 3.5% increase in operating profit to $199 million for its fiscal third quarter ended Oct. 31 despite a 4.2% decline in revenue to $2.3 billion.
British Airways faces some turbulence in its bid to take major equity stakes in both Iberia and Qantas, with IB CEO Fernando Conte claiming that BA's ambitions are "too complex." Speaking Wednesday at an Aviation Club lunch in London, Conte reportedly argued that it would be "more reasonable" and "more rational" for BA to focus on intra-continental consolidation before trying to strike a transcontinental deal. He also revealed that BA CEO Willie Walsh told him about the Qantas discussions only an hour before the UK carrier publicly confirmed them.
Denmark's Cimber Air acquired bankrupt Sterling Airlines' operating certificate, slots and brand, among other assets, and plans to relaunch the carrier and extend its European presence. Purchase does not include aircraft, leases of which will be negotiated with present owners. Cimber plans to put two 737s back into service in January and 6-8 in the long term. It will operate the airline under the Sterling name and said it hopes to rehire a portion of Sterling's former workforce.
Lufthansa's supervisory board yesterday approved the acquisition of Austrian Airlines Group, starting with the purchase of state holding company OIAG's 41.56% share for €366,000 ($463,000). LH said it also will issue a debtor warrant potentially worth up to €163 million, "depending on Austrian Airlines' economic performance and the Lufthansa share outperforming its competitors."
