Cathay Pacific Airways unveiled new measures to "help the airline deal with a serious downturn in business as a result of the global financial crisis," including scaling back capacity growth and grounding two freighters. It also is offering unpaid leave to pilots and flight attendants and requesting a two-year delay in the completion of a new cargo terminal at Hong Kong International.
Malaysia Airlines said it "proved its resilience" with a MYR38.6 million ($10.3 million) third-quarter profit that, while representing an 89.4% plunge from the MYR364.6 million profit reported in the year-ago period, was the ninth straight quarter in the black for the restructured airline.
US airline financial woes deepened in the third quarter as even good news--per-barrel crude oil prices dropping significantly--was tinged with frustration: Carriers hedged fuel at prices that turned out to be much higher than actual prices as the quarter wore on, leading to big noncash charges that contributed to heavy net losses. The 10 largest passenger airlines posted a cumulative net loss of $2.52 billion, reversed from a $1.67 billion profit in the year-ago period, with only American Airlines in the black thanks to the sale of its asset management subsidiary for $432 million.
OVER THE PAST SEVERAL YEARS, Flybe has chosen the road less traveled, yet the trail it has blazed has become a popular thoroughfare for the rest of the industry. Building a fleet dominated by high-speed turboprops in an era of regional jets, becoming the first carrier to charge for checked baggage, focusing on developing ancillary revenue and offering passengers an environmental report card for each flight they take: These are some of the things that Flybe pioneered.
ON AUG. 6, 1947, IN THE FIRST of several such appearances, Howard Hughes told an emotion-charged and sometimes heated US Senate hearing that he had put the sweat of his life and his reputation into his H4 Hercules "Spruce Goose" and if it was a failure he would leave the country and never return. During the hearings, which lasted several months, Hughes snuck in the aircraft's one and only flight on Nov. 2, 1947--about three years after it was contracted to fly.
ONE WAY TO PROCURE PRODUCTS and services is to focus on the destination of nickels and dimes and let the dollars take care of themselves. Then there's this one: Build strong strategic partnerships and everything else tends to fall into place.
The world's first sustainable biofuel flight now is expected to take place as early as Dec. 18 or possibly over Christmas with a jatropha-based fuel powering one engine on an Air New Zealand 747-400 on a 3-hr. gate-to-gate flight from Auckland. The fuel is a 50/50 blend of standard Jet A1 and synthetic paraffinic kerosene derived from jatropha oil.
HERE'S A FAMILIAR STORY LINE: The airline industry is bracing for what it expects will be a serious traffic downturn in 2009 as it prepares to accept a record number of new aircraft at the very point at which the global credit crisis means that capital to finance those aircraft is on indefinite holiday. To paraphrase Yogi Berra, "It's deja vu all over again."
AAR Corp. elected Donald J. Wetekam group VP-maintenance, repair & overhaul. Air Namibia appointed Helen Adamou UK sales & marketing mgr. AirPlus International welcomed Colleen Black as VP-key account sales and John Callahan as regional sales dir.-northern Midwest. Alaska Air Group elected Thomas Nunn VP-safety. Arab Air Carriers Organization elected Saudi Arabian Airlines CEO Khalid Abdullah Almolhem president. Aviapartners named Henning Dieter GM-cargo services-Germany.
Continental Airlines announced that along with Boeing, UOP and GE it will fly a 737-800 on Jan. 7 using a biofuel blend including from algae to power one of the CFM56-7B engines. Like the Air New Zealand flight, the fuel is a 50/50 blend of kerosene jet fuel and renewable biofuel, but in this case the biofuel component is a cocktail of jatropha and algae.
In the next 24 hr., deforestation, mainly in the tropics, will release as much CO2 into the atmosphere as 12.5 million people flying from London to New York. That is the stark reality of the effect of deforestation outlined in a new report from Oxford-based Global Canopy Program, an alliance of 38 leading scientific institutions in 19 countries that forms a collaborative program of research, education and conservation addressing biodiversity, climate change and poverty alleviation.
Emirates will use the launch of nonstop service between Dubai and San Francisco on Dec.15 to demonstrate its green credentials with what is claimed to be the world's longest green flight. Group Chairman and CEO Sheikh Ahmed bin Saeed Al-Maktoum will be on the flight.
Air Canada and Jazz flew 3.9 billion combined RPMs in October, down 3.9% from the year-ago month. Capacity fell 5.9% to 4.86 billion ASMs, lifting load factor 1.6 points to 80.2%.
Mexicana CEO Manuel Borja, who saw his company's takeover bid for rival Aeromexico rejected by Mexican authorities last year ( ATWOnline, Oct. 19), said he remains a "firm believer that the Mexican market should become consolidated." Speaking at last week's ALTA Airline Leaders Forum in Cancun, Borja said he was in favor of competition but only among airlines "that have differentiating points." He said Mexico needs "different models in the market.
Thales signed a contract with Aviation Training Centre of Tunisia for a second A320 full flight simulator to be combined with a Thales Formation System Trainer.
UK's revised Air Passenger Duty, under which passengers will be charged ascending fees based on distance traveled, continued to be criticized heavily around the world following its Nov. 24 unveiling. The scheme, effective Nov. 1, 2009, is designed to hold passengers accountable for the "environmental impact" of their travel ( ATWOnline, Nov. 25). "This is another cash grab by the [UK] Treasury, thinly disguised as an environmental measure," IATA DG and CEO Giovanni Bisignani said.
Virgin Atlantic Airways is considering additional aircraft orders, possibly for 777s or the A350 XWB, while it is in talks with Boeing on compensation for the delay of its 787s. A potential new order is separate from discussions regarding replacement/interim lift for the delayed Dreamliners ( ATWOnline, Nov. 11), although part of an order could substitute the options and purchase rights the carrier has on an additional eight and 20 787s, respectively.
KLM appointed Air France KLM GM-Singapore Vincent Knoops as senior VP-corporate communications effective Dec. 1. American Airlines named Southwest Division MD-Line Maintenance Ken Durst as the carrier's new VP-line maintenance, succeeding the retiring Danny Martinez.
El Al reported a third-quarter net profit of $30.4 million, down 25.3% from $40.7 million in the year-ago period, a result President Haim Romano called "remarkably gratifying in light of the difficult business situation and the signs of international economic recession." The Tel Aviv-based airline said high fuel costs and "effects of exchange rates" owing to the dollar's weakness against the shekel during the quarter were the primary drivers of the profit decrease.
Icelandair Group reported a third-quarter net profit of ISK4.39 billion ($30.5 million), up 65% on a pro forma basis from ISK2.66 billion last year, but warned that "the future outlook is uncertain" because of the slowing global economy ( ATWOnline, June 30). Revenue rose 51% to ISK41.47 billion while expenses increased 53% to ISK35.28 billion owing in part to a 110% jump in fuel costs to ISK9.98 billion. EBITDA lifted 40% to ISK6.18 billion.
Virgin Atlantic Airways asked the European Commission to reject what the carrier called the "virtual merger between two of the world's biggest airlines" and yesterday submitted a document to competition authorities outlining its objection to the antitrust alliance between American Airlines and British Airways. The Commission opened its investigation into the tie-up, which also includes Iberia, in August ( ATWOnline, Sept. 1).
Lufthansa opted not to wait for a decision on a foreign partner for the restructured Alitalia and will be launching its own subsidiary at Milan Malpensa, called Lufthansa Italia, in February. Six former Germanwings A319s will comprise the venture, designed to take advantage of AZ's cutbacks in Lombardy. LH originally had planned to base Air Dolomiti E-195s at MXP but instead has decided to pursue its own Italian Air Operator Certificate ( ATWOnline, April 29).
Siem Reap Airways International, the Cambodian carrier blacklisted by the EU this month ( ATWOnline, Nov. 17), suspended domestic services on Nov. 22 and will suspend international flying on Dec. 1 as it works to "clarify" the EU ban. Siem Reap GM Lao Santi said the airline was forbidden to fly aircraft registered in Cambodia into the EU but that its flights "are entirely operated on a wet-lease basis, at and to international standards."
Bangkok's Suvarnabhumi International, which suspended takeoffs Tuesday after antigovernment protesters stormed the airport ( ATWOnline, Nov. 26), was closed completely yesterday as the political crisis deepened and governments throughout the world warned citizens against traveling there. The protesters, calling themselves the People's Alliance for Democracy, claimed they had taken control of BKK and that airlines would have to seek their direct authorization to land.
