China Southern Airlines and China Eastern Airlines have started to ground aircraft and cut flights as there is little sign of a recovery in the slumping domestic market. According to CAAC, Chinese carriers again suffered from falling demand last month despite the "golden week" travel period surrounding Oct. 1 National Day. Passenger load factor fell 2.2 points year-over-year to 76.9% while daily aircraft utilization was down 2.1% to 9.2 hr ( ATWOnline, Sept. 17).
Hawaiian Airlines announced the acquisition of an additional 298-seat A330-200 on lease from CIT. It reached an agreement to lease two others from AWAS last month and has six of the type on order from Airbus ( ATWOnline, Oct. 28). HA will take delivery of two of the leased A330s in the 2010 second quarter, beginning its "transition to a new long-range fleet two years earlier than originally planned." The second AWAS aircraft will join the fleet in 2011 and the Airbus deliveries will begin the following year.
International Air Carrier Assn. urged the European Parliament to reject amendments adopted last month by its Committee on the Environment, Public Health and Food Safety relating to the inclusion of aviation in the continental emissions trading scheme ( ATWOnline, Oct. 13), and said the gradual increase in the percentage of emissions certificates auctioned (to 100% in 2020) will cost affected airlines "an unaffordable" €8 billion ($10.04 billion) per year.
Joy Air, the Xi'an-based regional launched by China Eastern Airlines and China Aviation Industry Corp. in March, will commence operation by year end, according to CAIC President and CEO Lin Zuoming ( ATWOnline, March 31). Joy plans to operate 50 MA60 series turboprops within the next 6-7 years. It has three MA60s on firm order and scheduled for delivery starting next month and has signed a letter of intent for 10 MA600s to be delivered from 2010. It also plans to order 50 ARJ21s. Chinese regionals are still losing money.
World travel is projected to grow an average of 5% per from 2009 through 2028, with China leading at 7.5%, according to Embraer's 20-year market forecast for commercial aircraft. Emerging markets in Latin America and Russia/CIS will grow a projected 6% annually, Asia/Pacific and Africa will grow about 5% and Europe and North American 4%. Some 6,750 jets in the 30/120-seat range will be required, generating sales of $220 billion over the next two decades.
Air France KLM flew 18.41 billion RPKs in October, up 9% from the year-ago month, against an 8% increase in ASKs to 22.65 billion. Load factor rose 0.7 point to 81.3%. United Airlines flew 8.68 billion system RPMs in October, a 9.7% year-over-year decrease. Capacity dropped 9.9% to 10.68 billion ASMs and load factor rose 0.2 point to 81.3%. Alaska Airlines flew 1.42 billion RPMs in October, down 1% year-over-year. Capacity fell 3.7% to 1.92 billion ASMs, lifting load factor 2 points to 73.6%.
United Airlines will operate the second ASPIRE (Asia and South Pacific Initiative to Reduce Emissions) flight on Nov. 14 from Sydney to San Francisco, following in the footsteps of Air New Zealand, which flew "ASPIRE 1" with a 777-200ER two months ago ( ATWOnline, Sept. 15).
Delta Air Lines and Northwest Airlines, which closed their merger last month, said they are aiming to integrate their flight schedule by next summer as DL unveiled new flights intended to increase connectivity between the two networks and expand its global reach. DL plans to launch 15 new international routes in June to coincide with the network integration. It will start daily 777-200ER flights between JFK and Tokyo Narita as well as five-times-weekly A330-200 Salt Lake City-NRT and daily 757-200 NRT-Ho Chi Min services. It will add a second-daily Atlanta-NRT flight on May 4.
Iberia reported consolidated third-quarter net income of €30.4 million ($38.6 million), down 79.5% from €148.2 million in the year-ago period, on rising fuel costs and weaker demand. Operating revenue slipped 0.6% to €1.45 billion while costs rose 8.7% to €1.43 billion. EBIT fell 88.4% to €16.2 million from €139.3 million last year. Yield lifted 0.5% to 7.43 euro cents
Lufthansa suspended talks regarding a possible takeover of SAS Group ( ATWOnline, Sept. 24), Germany's dpa news agency reported, citing sources close to the negotiations who said a steep loss at SAS subsidiary Spanair is a primary reason for the retreat. An LH spokesperson contacted by ATWOnline would not comment on the report.
FedEx said yesterday that it intends to reduce carbon dioxide emissions from its aircraft fleet by 20% by 2020. It said it already has reduced CO2 emissions by 3.7% per ATM since 2005. Key to the increased efficiency will be the replacement of its 90 727Fs with at least 87 757-200 converted freighters by 2016. The 757s will reduce "fuel consumption up to 36% while providing 20% more payload capacity," it said.
CAE won orders for full-flight simulators and related CAE Simfinity training devices valued at C$63 million ($52.6 million) from American Airlines, Air New Zealand, Suzuyo and Embraer CAE Training Services. AA purchased a CAE 7000 Series 737NG FFS and CAE Simfinity 737NG Integrated Procedures Trainer. ANZ ordered a 787 FFS and a 777-300 FFS as well as a suite of CAE Simfinity training devices for each aircraft type including IPTs and virtual simulators. Suzuyo bought a CAE 7000 Series E-170 FFS and an E-170 IPT. ECTS committed to a CAE 5000 Series Phenom 100/300 FFS.
Cathay Pacific Airways CEO Tony Tyler said the current industry downturn will last longer than the one associated with SARS in 2003 but that there will be little, if any, cross-border consolidation, particularly in Asia, as a result. "It's already looking difficult and the question is how long and how deep it will be," Tyler told ATWOnline at the Australian Airports Assn. national convention in Perth. But relief will not come through consolidation, which did not occur during the 1997 Asian financial crisis or SARS, as many analysts predicted.
Fuel costs and the weakening won combined to drag Asiana Airlines to a KRW47.9 billion ($36 million) loss in the third quarter, reversed from a KRW37 billion profit in the year-ago period.
The world's first commercial aviation test flight powered by a sustainable second-generation biofuel will take place on Dec. 3 on an Air New Zealand 747-400 with a jatropha blend powering one of the Rolls-Royce RB211 engines.
LAN Airlines signed a contract for four 767-300s for delivery in 2012 plus two options, according to a Nov. 10 stock market filing cited by both Reuters and the Associated Press. Neither Boeing nor the carrier confirmed the order, which LAN said was worth approximately $636 million. It has 26 787s on order.
Aegean Airlines reported net income for the first nine months of 2008 of €26.5 million ($34 million), down 21% from €33.4 million in the year-ago period, saying the results were "solid" given "unprecedented" oil prices earlier this year and "deteriorating economic conditions." The carrier did not provide quarterly results, but ATWOnline calculated that it posted a €21 million third-quarter profit on €205.5 million in revenue. Earnings were hurt by valuation losses on US dollar aircraft loans and fuel hedges.
IBM reached a deal with TAM for technology services, including installation of IT infrastructure and associated help desk and field support. Contract is expected to improve the carrier's server as well as its check-in system and tickets and reservation software.
Air Arabia reported a AED214 million ($58.2 million) third-quarter profit, up 29.7% from the AED165 million earned in the year-ago period. The Sharjah-based LCC enjoyed a 69% year-over-year increase in revenue to AED625 million on a 34% rise in passengers to 978,794. Load factor was level at 87%. Nine-month profit of AED374 million was up 34% from AED280 million in the first three quarters of 2007. The airline celebrated its fifth anniversary two weeks ago.
Tunisair, SITA and Medsoft, a Tunisian IT company, have launched Aviation IT Services Africa, which will provide all information and computer technology services (both administrative and operational) to the airline over the next 10 years using adapted SITA solutions. The venture has launch capital of $3 million and will be held jointly by Tunisair (50%), SITA (49%) and Medsoft (1%). "This is the largest outsourcing deal SITA has ever signed with an airline," CEO Francesco Violante said at the recent Arab Air Carriers Org. meeting in Tunis.
Aer Lingus yesterday said its full-year operating loss will be "closer" to the lower end of the projected €20-€30 million ($25.7-$38.5 million) range forecast previously but that it expects another operating loss in 2009. Operating loss through the first half of 2008 was €22.3 million.
American Airlines flew 10.51 billion system RPMs in October, an 8.8% decline from the year-ago month. Capacity fell 7% to 13.3 billion ASMs and load factor was down 1.5 points to 79%. American Eagle flew 641.7 million RPMs, down 15.5%, against a 10.8% fall in ASMs to 921.3 million, dropping load factor 3.9 points to 69.6%. US Airways Group flew 4.89 consolidated RPMs in October, a 3.5% decrease year-over-year, against a 5% fall in ASMs to 6.02 billion. Load factor increased 1.3 points to 81.3%.
Emirates blamed fuel prices for an 88% plunge in fiscal first-half profit to AED284 million ($77.3 million) from the AED2.36 billion earned in the six months ended Sept. 30, 2007. Chairman and CEO Ahmed bin Saeed Al-Maktoum said the semester "has been very tough for the airline industry" and that EK "has worked hard to manage the impact of high fuel prices on our unit costs while continuing to grow our business."
