Hainan Airlines will increase its 2007 net profit by more than 200% from the prior year when it earned CNY181.6 million ($25.2 million), parent HNA Group said. It credited the "rising value of [the yuan] and continuous development of [the] aviation industry" for the projected result. Hainan Airlines is set to be merged into Grand China Air ( ATWOnline, Nov. 30, 2007).
Air France KLM will have to wait until at least Feb. 20 to conclude negotiations with Alitalia following an Italian court's decision to hold a hearing that day on Air One's challenge to the exclusive discussions ( ATWOnline, Feb. 5). AZ Chairman Maurizio Prato said AF KLM had intended to begin meeting with AZ unions starting Feb. 15, according to Reuters. Doubts about the sale's progress already had risen with the recent resignation of Prime Minister and AF KLM supporter Romano Prodi.
United Airlines flew 8.73 billion system RPMs in January, a 5.3% decrease from the year-ago month. Capacity declined 3.4% to 11.41 billion ASMs, dropping load factor 1.5 points to 76.5%. British Airways flew 8.61 billion RPKs in January, down 1.6% from the year-ago month, as capacity fell 0.6% to 12.45 billion ASKs. Load factor dropped 0.7 point to 69.2%. Southwest Airlines flew 5.49 billion RPMs in January, up 5.9% from the year-ago month. Capacity rose 5.3% to 8.55 billion ASMs and load factor improved 0.4 point to 64.2%.
Clickair CEO Alex Cruz declined to comment publicly on rumors that his carrier has launched merger negotiations with Vueling Airlines. Rumors of a tie-up between the two Barcelona-based LCCs are not new but gained momentum this week after Inversiones Hemisferio, Vueling's largest shareholder, claimed it was talking with various airliness including Clickair.
Finnair reported a net profit of €101.6 million ($150.5 million) for 2007, turned around from a net loss of €13.6 million in 2006, on a 9.6% lift in revenue to €2.18 billion. President and CEO Jukka Hienonen said one-time restructuring costs were "evident" in the 2006 results but changes made to the operating model that year "laid a solid foundation" for the strong profit earned in 2007. Finnair's 2007 results also were helped by the sale of Swedish subsidiary FlyNordic.
SkyEurope Airlines' new CEO said the carrier is in a "turnaround" and hopes to stem its losses and ensure financial viability. It launched out of Bratislava in February 2002 with a single Brasilia. By last September it was operating 14 737-500s and serving 44 destinations in 10 countries. It lost €24.1 million ($35.7 million) in the fiscal year ended Sept. 30, 2007 ( ATWOnline, Dec. 3, 2007), and €57.3 million in the prior year.
Aeroflot said its net profit through the first nine months of 2007 nearly doubled to $357.3 million according to International Financial Reporting Standards, from $186.3 million in the year-ago period. Consolidated revenue climbed 31.9% year-over-year to $2.8 billion against a 21.9% rise in expenses to $2.28 billion. In a statement, Deputy DG-Finance and Planning Mikhail Poluboyarinov cited "effective control of fuel costs, favorable market conditions and profitable currency exchange rates." SU now operates a fleet of 83 aircraft to 93 destinations in 47 countries.
Blue Air, Romania's first LCC, placed an order for two 737-800s plus two purchase rights valued at $150 million at list prices, Boeing announced. The airline has a 787-800 arriving on lease later this year. "We have doubled our passenger traffic every year since starting our operations [in December 2004]," GM Gheorghe Racaru claimed. It currently operates one 737-500, two 737-400s and two 737-300s. Separately, Blue Air will launch thrice-weekly Bucharest Baneasa-Berlin Schoenefeld on March 31.
Ryanair net income for the fiscal third quarter ended Dec. 31, 2007, slipped 1.2% to €47.2 million ($69.8 million) from €47.7 million earned in the year-ago period, but the LCC maintained its forecast for a 17.5% rise in full-year earnings to €470 million for the year to March 31. Third-quarter operating profit fell 22.7% to €44.2 million compared to €57.2 million in the year-ago period. Revenue per passenger declined 4% year-over-year "in line with the decrease in average passenger fares," the airline said.
Deucalion Aviation Funds signed an LOI with Air France to acquire six 747-400 passenger aircraft for conversion and subsequent delivery in 2009 and 2010. Deucalion will convert the aircraft to full freighters at the IAI/Bedek conversion facility with the first expected to be available in September 2009. Marketing of the freighters is being undertaken by DVB Bank, which manages Deucalion.
Italian Economy Minister Tommaso Padoa-Schioppa, who remains at his post despite the resignation of Prime Minister Romano Prodi, told Il Sole 24 Ore he is "firmly confident" that Alitalia's acquisition by Air France KLM "will conclude positively despite all these tensions," which include Air One's effort to submit its own binding offer through the courts ( ATWOnline, Feb. 4) despite AZ's decision to negotiate exclusively with AF KLM. Air One was scheduled to have its hearing yesterday.
Neolane was contracted by Continental Airlines to provide customer marketing software featuring digitized profiles, automated campaigns and other outreach tools. Technology will target frequent business and leisure fliers.
China Eastern Airlines and AVIC I unveiled terms of their regional airline joint venture, which will be called Happy Air and eventually will fly a fleet of 50 MA60s and 50 ARJ21s, although regulatory approval may be delayed. CEA MD Cao Jianxiong said that the new venture has yet to secure CAAC approval although it submitted its plan to the regulator last August ( ATWOnline, Oct. 16, 2007). "We are still in preparations, although there is no specific timetable on when we will get approval," Cao said.
Lloyd Aereo Boliviano 727-200 en route from La Paz to Cobija crash-landed approximately 2 mi. short of an airport in Trinidad, Bolivia, where it was attempting to divert owing to poor weather. All 159 passengers and crew survived the hard landing in a jungle clearing but the aircraft sustained serious damage, according to reports. Flight Safety Foundation's Aviation Safety Network said "fuel exhaustion" was a possible reason the 727 was forced to land so far short of the airport.
Hawaiian Airlines was able to sign definitive purchase agreements for six A330-200s and six A350 XWB-800s, plus purchase rights for six of each, following the conclusion of "key labor agreements" with its pilot and cabin staff unions. A dispute with pilots had threatened to scuttle the up-to-$4.4 billion deal ( ATWOnline, Jan. 21). HA said it now will endeavor to lease additional aircraft for entry into service in the 2009-12 period.
United Airlines will charge economy passengers traveling on discounted fares on its North American network $25 to check a second bag beginning May 5. The fee will apply to passengers buying nonrefundable economy tickets who do not have status in either UA's loyalty program or that of a Star Alliance partner. It will apply to domestic flights and service to Canada and also some Caribbean destinations.
SkyWest Airlines is interested in future acquisitions, but it has no plans to bid on Delta Air Lines subsidiary Comair, Chairman and CEO Jerry Atkin said. "It would be a stretch. Consolidation in Delta is not one we would have an interest in," he told ATWOnline. "There are other regionals out there." The largest regional carrier in the US, SkyWest operates a fleet of 437 aircraft in partnership with DL, United Airlines and Midwest Airlines.
Japan Airlines Group released its latest corporate plan covering the April 1, 2008-March 31, 2009, period and said the expansion of Tokyo's downtown Haneda Airport, downsizing of the fleet and the introduction of more premium products are pivotal. It plans to operate flights between Haneda and Beijing Nanyuan during this summer's Olympics as well as to increase the number of international "charter" flights from the airport. JAL currently operates flights from Haneda to downtown airports in Seoul (Gimpo) and Shanghai (Hongqiao).
Korean Air posted 2007 net income of KRW11 billion ($11.7 million), a 97.1% drop from KRW383 billion earned in the prior year that it attributed to high fuel costs and the won's weakness. KE said it is hopeful new surcharges aimed at offsetting fuel costs and a surge in demand related to this year's Beijing Olympics will help it turn around its financial fortunes in 2008. Operating revenue for 2007 rose 9.1% to KRW8.8 trillion while expenses increased 7.8% to KRW8.18 trillion, producing operating income of KRW637 billion, up 28% over KRW497 billion the prior year.
AirTran Airways will curb its growth for 2008 by delaying aircraft deliveries or selling some aircraft, President and CEO Robert Fornaro said at last week's Raymond James Growth Airline Conference in New York. The carrier is forecasting a growth rate of 10% for 2008, down from 19% last year. "You make better decisions when you have fewer airplanes," he said. AirTran will continue to expand its network, Fornaro said, pointing to its recent move into Midwest Airlines' Milwaukee hub. "If you put lower prices into Milwaukee, the market will grow substantially.
US Airways named Northwest Airlines VP-Inflight Services Suzanne Boda as senior VP-East Coast, international and cargo operations and American Airlines New York LaGuardia MD Robert Ciminelli as VP-Philadelphia operation.
Alitalia said last week that it has released an unidentified number of summer slots at Milan Malpensa as it moves toward consolidating its operation in Rome ( ATWOnline, Feb. 1). Milan airport operator SEA reportedly countered with a lawsuit seeking €1.25 billion ($1.86 billion) in damages, which SEA Chairman Giuseppe Bonomi said was based on the "serious damage" AZ's decision would cause and the alleged violation of a hub agreement, Thomson Financial reported.
JetBlue Airways and Aer Lingus unveiled details of their strategic partnership Friday, nearly one year after the alliance initially was revealed ( ATWOnline, Feb. 7). The tie-up will take effect April 3 and will feature a booking engine on EI's website that will allow customers to purchase tickets on EI flights to the US and JetBlue services from New York JFK in one transaction.
