Delta Air Lines pilots represented by the Air Line Pilots Assn. rejected arbitration as a way to break the impasse with Northwest Airlines pilots over the integration of their respective seniority lists, the Associated Press reported ( ATWOnline, March 19). Union leaders at NWA reportedly suggested the option to members.
Emirates yesterday said the new Dubai low-cost carrier established this week by the government "will be initially supported by Emirates during the setup period [but] will not be part of the Emirates Group." On Tuesday, UAE VP and Prime Minister Mohammed bin Rashid Al-Maktoum called for the launch of a new carrier "to cater for the growing passenger traffic from and to the UAE," the state WAM news agency reported.
Air Canada and WestJet said the Canadian airline market has been insulated from the US economic slowdown that this week drove Delta Air Lines and United Airlines to announce domestic capacity cuts ( ATWOnline, March 19).
JetBlue Airways yesterday unveiled its new premium seating option, which will be available on both its A320s and E-190s beginning April 1. The Even More Legroom program will make use of its reconfigured A320 cabin ( ATWOnline, Feb. 20) and offer customers 38 in. pitch, or four extra in., in rows 2-5 and emergency exit rows 10-11. Price will start at $10 and will vary according to stage length.
Delta Air Lines has focused increasingly on building its international operations since its emergence from bankruptcy restructuring last year and, when announcing a 10% domestic capacity cut in the second half of 2008 earlier this week, emphasized that its domestic operations' most important function will be to feed its expanding global network.
British Airways announced the purchase of 28.7 million shares of Iberia at an average price of €2.34 ($3.69) per share, lifting its stake in its oneworld partner to 13.15%. BA CEO Willie Walsh said, "We will consider further opportunities to increase our stake."
Global Aero Logistics, parent of ATA Airlines, North American Airlines and World Airways, named Chairman John Denison as interim president and CEO following the resignation of Subodh Karnik. A search for a permanent replacement is underway.
Indonesia's transport ministry, as expected, grounded low-fare carrier Adam Air over safety issues following an incident last week when a 737-400 skidded off the runway at Batam Island's Hang Nadim Airport, injuring five of the 176 passengers and crew onboard. The right wing, hydraulic system and main landing gear were damaged. The incident was Adam's third in 18 months ( ATWOnline, March 12).
Delta TechOps, the maintenance arm of Delta Air Lines, next month will begin reporting financial results "as a standalone business with our own profit and loss sheet," TechOps President Tony Charaf said Tuesday at the SpeedNews Commercial Aviation Industry Suppliers Conference in Los Angeles. TechOps intends to build its third-party MRO business in engines and components and views itself as competing with giants such as Lufthansa Technik and Air France Industries in an increasingly globalized market for MRO services.
EasyJet yesterday said rising fuel costs have forced it to reduce its full-fiscal-year forecast of a 20% year-over-year increase in pre-tax earnings ( ATWOnline, Feb. 8). The LCC said that at the time of its forecast, forward fuel price for summer 2008 was $840 per tonne but now has risen to more than $1,000 per tonne.
Driven by a growing domestic economy and the appreciation of the yuan, Air China and Air Macau parent Air China Ltd. posted a net profit of CNY4.23 billion ($595.5 million) in 2007, up 57.3% over the CNY 2.69 billion reported in 2006, on a 14.2% lift in operating revenue to CNY 51.33 billion.
Singapore Airlines launched its Singapore-London Heathrow A380 service yesterday. Flight SQ308 with 449 passengers took off from Changi Airport just after 9 a.m. local time. The return flight, SQ319, is scheduled to arrive back in Singapore this afternoon.
ABX Holdings, parent of US cargo carriers ABX Air, Air Transport International and Capital Cargo International Airlines, reported a 78.2% drop in net income for 2007 to $19.6 million compared to $90.1 million the previous year. The company downplayed the earnings decrease, attributing it in large part to "the effect of noncash tax items," and noting that its acquisition of ATI and CCIA parent Cargo Holdings International at year end would pay dividends in the future. ABX enjoyed a noncash tax benefit of $54 million in 2006 but incurred a tax expense of $13 million in 2007.
Delta Air Lines announced yesterday that it will follow United Airlines and US Airways in charging passengers $25 for a second checked bag starting May 1. The move comes as US carriers are scrambling to contend with rising fuel prices and a weak domestic economy (see story above) and looking for "revenue enhancement" measures to help offset escalating expenses ( ATWOnline, Feb. 27).
Delta Air Lines and United Airlines yesterday announced a domestic downsizing to help negotiate rising fuel costs and a slowing US economy, with each carrier planning to ground 15-20 mainline aircraft this year and DL also aiming to slash its workforce by approximately 2,000. UA plans to reduce domestic capacity by an unspecified amount later this year as it grounds 15-20 737-500s, while DL said it will cut domestic capacity by 10% year-over-year in the second half of 2008.
Delta Air Lines and Northwest Airlines pilots have been unable to reach an agreement on the merger of their respective seniority lists ( ATWOnline, March 7), perhaps delivering the final blow to a potential combination of the carriers, DL Air Line Pilots Assn. MEC Chairman Lee Moak said in a letter posted on the union's website.
Wings Aviation Beechcraft 1900D crashed en route from Lagos to Obudu Saturday, killing all three occupants. Wings is a charter carrier based in the Nigerian capital and the flight was a positioning operation with no passengers aboard. Aircraft first flew in 1998, according to Flight Safety Foundation's Aviation Safety Network.
Babcock & Brown Aircraft Management announced the delivery of a new 737-800 to Transavia France. It is the third of five new -800s the lessor will lease to the Air France KLM subsidiary. Final two are scheduled for delivery in April and May.
The Alitalia board on Saturday unanimously agreed to accept an offer by Air France KLM to acquire control of the ailing Italian carrier--subject, however, to a number of what the parties call "effectiveness conditions" that must be fulfilled by March 31.
Cathay Pacific Airways and Dragonair flew 7 billion RPKs in February, up 19% from the year-ago month, against a 15.7% increase in capacity to 9.01 billion ASKs. Load factor rose 2.1 points to 77.6%. JetBlue Airways flew 2.03 billion RPMs in February, a 16.7% rise from the year-ago month. Capacity was up 21.5% to 2.64 billion ASMs, lowering load factor 3.2 points to 76.8%. AirTran Airways flew 1.42 billion RPMs in February, a 28.2% rise from the year-ago month. Capacity rose 14% to 1.82 billion ASMs and load factor soared 8.6 points to 78.1%.
Continental Airlines and Northwest Airlines chiefs hinted that downsizing may be necessary to offset escalating fuel costs. With the per-barrel crude oil price topping $110, analysts have warned that cost cuts achieved during the US industry's restructuring earlier this decade are in danger of being swamped by high energy expenses ( ATWOnline, March 13). CO Chairman and CEO Larry Kellner said in a message to employees that the carrier's fuel costs could rise by as much as $1.5 billion year-over-year in 2008.
Alaska Air Group board authorized the repurchase of an additional $50 million in common stock. It recently bought back 10% of its outstanding stock for $100 million. New acquisition will be financed with cash on hand.
After suffering from continuous setbacks on its trunk routes, Tianjin-based Okay Airways will shift its focus to the regional market when it takes delivery of its first MA60 turboprop this month, according to Chairman Liu Jieyin. Its second MA60 is expected to be introduced in April. Last summer, Okay signed an aircraft lease agreement with AVIC I for 10 MA60s ( ATWOnline, July 6, 2007). It currently operates five 737s to 22 domestic destinations.
Airbus projected last week that Russian airlines will need more than 900 passenger aircraft valued at $79 billion over the next 20 years to meet demand for both replacement and fleet growth. Russian passenger traffic is expected to increase 6.2% annually on average over the next two decades, faster than the world average of 4.9%, Airbus said.
