Thai Airways reported a THB1.84 billion ($59 million) profit in the three-month period ended Dec. 31, a sharp decline from the THB4.03 billion earned in the year-ago quarter. The airline changed its fiscal year as of Jan. 1 to match the calendar, so what previously has been the first fiscal quarter (Oct.-Dec.) now will not impact its full-year results. Revenue for the December quarter climbed 23.3% year-over-year to THB53.49 billion against a 15.9% increase in costs to THB49.77 billion. Operating profit was THB3.72 billion.
Cyprus Airways, which had endured losses for four straight years, yesterday reported a €1.2 million ($1.8 million) profit for 2007, reversed from a net loss of €7.4 million the previous year. "After four difficult years of recording losses in the tens of millions, it appears that Cyprus Airways has finally been able to win the bet over its survival," Chairman Kikis Lazarides said at a news conference. "Prospects are favorable for registering a profit in 2008."
Alaska Airlines flew 1.41 billion RPMs in January, a 9.9% rise from the year-ago month, against a 6.2% increase in ASKs to 2.05 billion. Load factor was up 2.4 points to 68.9%. Austrian Airlines Group flew 1.32 billion RPKs in January, down 19.9% from the year-ago month. Capacity fell 15.9% to 1.9 billion ASKs and load factor declined 3.5 points to 69.6%.
CAE won Level D certification from UK CAA for its first 5000 Series A320 FFS developed to address training requirements for high-volume narrowbodies. The simulator will be used for A320 training at CAE's Burgess Hill facility.
Airlines likely will face higher insurance renewals this year compared to 2007, according to Aon Corp.'s "Airline Industry Market Review." The culprit is higher hull and liability claims last year even as premiums were falling. Aon stated that insurers incurred $1.72 billion in claims for hull, liability and estimated "attritional losses" in 2007 while taking in just $1.51 billion in premiums, down 11% compared to 2006 and the lowest figure since 2000.
Germanwings and TUIfly are not expected to conclude negotiations to merge their LCC operations by the time the boards of Germanwings parent Lufthansa and travel conglomerate TUI meet in mid-March, delaying the prospective combination ( ATWOnline, Jan. 30). German magazine Focus reported that the talks will not conclude before summer and that antitrust approval could take an additional four months.
China Eastern Airlines and Shanghai Airlines expanded their codeshare arrangement with an eye toward solidifying their presence at their increasingly competitive Shanghai hub. The new accord, which goes into effect March 1, will see each carrier place its code on the other's flights to Harbin, Tianjin, Chengdu, Chongqing and Shenzhen for a probationary period lasting until March 29. At that point, if the airlines agree, the cooperation will be extended to the end of the summer schedule.
Lufthansa yesterday released select preliminary 2007 financial results indicating that the German airline group achieved a net profit of €1.66 billion ($2.46 billion) last year, more than double the €803 million reported in 2006. Revenue rose 13.1% to €22.4 billion and group operating profit climbed 63.1% to €1.38 billion from €845 million the prior year.
Ryanair's website came back online yesterday, one day ahead of schedule, after closing down for the weekend to update the system and bring it in line with UK Office of Fair Trading regulations requiring that airline websites include fixed, nonoptional taxes, fees and charges in advertised prices on both their homepages and during the booking process ( ATWOnline, Feb. 14). Ryanair said its new website offers enhancements such as the possibility to change flights up to 4 hr.
RAK Airways, the United Arab Emirates-based startup that launched service from Ras Al Khaimah in November, selected Boeing to provide its narrowbody fleet. It placed an order yesterday for four 737-800s plus two options worth AED1.65 billion ($449.2 million), it said in a statement cited by numerous press reports from UAE.
Vueling Airlines reported a sharp widening in full-year net loss to €63.2 million ($93.7 million), nearly six times worse than the €10.8 million loss posted in 2006, citing falling fares and record fuel costs as causes. The Spanish LCC's average fare dropped more than 20% in 2007 to €37.65 owing to strong competitive pressure from "traditional and low-cost carriers alike," it said, noting that the negative impact on its bottom line amounted to €60 million.
BOC Aviation signed agreements with Qantas for the lease of eight A320s. Aircraft will be delivered from Airbus between the third quarter of 2010 and first quarter of 2011 and will be operated by low-cost subsidiary Jetstar Airways.
Three years after facing bankruptcy, Malaysia Airlines is enjoying record-breaking profits, saying yesterday that it achieved an MYR852.7 million ($260.7 million) net income in 2007, reversed from a MYR133.7 million loss in 2006 and the best result in the company's 60-year history.
Frontier Airlines reported a 0.3% year-over-year increase in January yield to 10.28 cents while RASM climbed 11.7% to 7.46 cents. It flew 753.7 million RPMs last month, up 18.3% over the year-ago month. Capacity rose 6.4% to 1.04 billion ASMs, boosting load factor 7.3 points to 72.5%. Copa Airlines flew 484.7 million RPMs last month, up 16.4% over the year-ago month. Capacity climbed 17.4% to 592.1 million ASMs and load factor slipped 0.7 point to 81.9%.
Virgin Atlantic Airways on Sunday operated a 747 demonstration flight from London Heathrow to Amsterdam partially powered by biofuel. Boeing, GE Aviation and Imperium Renewables partnered on the test, which came three weeks after Airbus conducted an A380 flight test using a liquid fuel processed from gas ( ATWOnline, Feb. 4). The Virgin test used biofuel composed of babassu oil and coconut oil. "These oils are environmentally and socially sustainable," the airline said.
Allied Pilots Assn., which represents American Airlines pilots, said it met with airline CEO Gerard Arpey and CFO Tom Horton along with the Assn. of Professional Flight Attendants and the Transport Workers Union "to discuss the airline industry's current drive toward consolidation." APA said management "spoke in general terms" about consolidation and the union "clearly communicated our concern about the effect that mergers have on employees."
Austrian Arrows Q400 operating as Flight OS142 from Nurnberg to Vienna with 67 passengers made an emergency landing yesterday in the capital after the pilot noticed a problem with the main display indicating landing gear position. The aircraft climbed and entered a holding pattern, and with the main and alternative displays functioning properly touched down approximately 2.5 hr. after takeoff. All onboard were safe. Austrian Airlines Group said the aircraft will undergo a thorough technical examination in Innsbruck and results are expected within two days.
GE Aviation announced a $30 million project to expand GEASO, its engine repair facility in Singapore, to 76,200 sq. m. The expansion is projected to more than double last year's $250 million revenue by 2013. Construction will begin in April and is slated for completion next year.
BOC Aviation, formerly SALE, place an order for five A330-200Fs on the last trade day of the Singapore Airshow. It is BOCA's first freighter order placed directly with a manufacturer. CEO Robert Martin said the commitment "reflects our confidence in strong future demand for widebody production freighter aircraft." No delivery dates or engine choice were announced. Airbus said the -200F can carry up to 64 tonnes more than 7,400 km. in its standard configuration, or 69 tonnes up to 5,930 km. in an optional configuration.
Singapore Aero Engine Services signed a $20 million deal with Abu Dhabi Aircraft Technologies covering MRO module services on four Trent 700s from a Middle East operator's fleet. SAESL also will handle engine MRO on 12 aircraft covered by a Rolls-Royce TotalCare agreement.
The prospect of a link-up between AirAsia and Australia's Virgin Blue appears to be gathering momentum, with the world's lowest-cost operator flagging the launch of a joint venture with Blue to establish an "ultra-low-cost" carrier in Australia. Blue has been searching for ways to counter low-cost entrants Jetstar Airways and Tiger Airways as it focuses more on the corporate market. Speaking to News Ltd. in Australia, Toll Holdings, which owns 62% of Virgin Blue, said it has received expressions of interest for its majority stake.
Airways New Zealand, Airservices Australia and US FAA signed a trilateral agreement to accelerate development of air traffic control procedures among the three countries that will reduce aviation's environmental footprint. Dubbed ASPIRE--Asia and South Pacific Initiative to Reduce Emissions--the accord aims to provide a regional platform for a host of technologies pioneered by the trio.
China Southern Airlines announced sale and leaseback deals covering 10 A330s ordered in December 2005. Eight aircraft now will be owned by and leased from Shenzhen Financial Leasing, with the remaining two owned by HSBC. CZ said the deals were "for the purpose of reducing the tremendous need of capital and relieving the pressure on the manufacture and operation of the company caused by the high asset/liability ratio."
