China National Aviation Holding Co. and Air China announced yesterday that CNAC will make its own bid for China Eastern Airlines in two weeks if the latter's stake sale to Singapore Airlines is vetoed by shareholders at a meeting scheduled for today.
Finnair shut down Estonian subsidiary Aero Airlines Sunday as part of its strategy to concentrate on its mainline business and development of its Asian route network. The closure also ends its propeller aircraft era, as the ATR 72s owned by Finnair Aircraft Finance and operated by Aero have been sold ( ATWOnline, Jan. 7). Finnair took control of Aero in 2001, hoping to develop a cost-effective model for a regional operator while increasing its market share in the Baltic.
UPS is launching a "simplified global portfolio for shipping airfreight" that appears to leverage the company's position as both a cargo airline and a freight forwarder. In recent years, UPS has built up its express delivery airline operation and its supply chain management business significantly, attempting to become a wide-ranging service provider for all forms of time-sensitive cargo transport.
US Aerospace Industries Assn. elected Rockwell Collins Chairman, President and CEO Clayton Jones as its 2008 chairman, succeeding Raytheon Chairman, President and CEO William Swanson, who held the post last year.
Pinnacle Airlines announced the purchase of its Class A Preferred Share from Northwest Airlines for $20 million ( ATWOnline, Dec. 3, 2007). "This is the last step in the process of becoming independent that began with our IPO in 2003, and well positions us to take advantage of future opportunities," President and CEO Phil Trenary said. "We remain firmly committed to Northwest Airlines, our largest customer."
Virgin Atlantic Airways and the Unite union reached agreement yesterday on a two-year pay deal for cabin crew, averting the first flight attendant strike in the carrier's history. Unite planned 48-hr. strikes on Jan. 9-10 and Jan.16-17 ( ATWOnline, Jan. 7). "The outcome is a triumph of common sense," Virgin's Richard Branson said. Agreement includes a 4.8% pay increase in the first year and a guarantee of RPI in the second.
Emirates will quit its management contract with SriLankan Airlines following a public spat after the Sri Lankan government withdrew the work permit of Peter Hill, Emirates' secondee and CEO of the Colombo-based carrier. The trouble started when SriLankan refused to offload 35 passengers on a London Heathrow-Colombo flight in order to accommodate President Mahinda Rajapaksa and his entourage. The government owns 51% of the airline while Emirates holds 43.6%, and negotiations have been underway for 18 months to renew an eight-year-old management contract.
Poland's Treasury Ministry plans to sell its 68% stake in LOT Polish Airlines, Deputy Treasury Minister Zdzislaw Gawlik said last week, although there first must be changes to current regulations that permit the sale of only a minority stake, Reuters reported. "There are no rational grounds for the carrier to remain state-owned. We want to change the law in order to sell the shares," Gawlik said. The ministry plans to float the carrier this year on the Warsaw Stock Exchange, possibly in the third quarter.
United Airlines flew 9.23 billion system RPMs in December, down 1.2% from the year-ago month. Capacity fell 0.1% to 11.76 billion ASMs, dropping load factor 0.8 point to 78.8%. A record 19 "severe" weather days during the month will result in a 1% year-over-year drop in fourth-quarter capacity rather than the forecast 0.8%, UA said. Ryanair transported 3.95 million passengers in December, up 18% from the year-ago month. Load factor slipped 2 points to 79%.
Finnair said it intends to buy back up to 600,000 shares through public trading on the Helsinki Stock Exchange, with the purchase beginning on Feb. 5 at the earliest and ending April 1. Separately, the carrier announced the sale of the last three ATR 72s operated by its Aero subsidiary to Russia's Utair. Aero's four other ATR 72s were sold last year to ATR Leasing ( ATWOnline, July 25, 2007).
Fraport Cargo Services said the German Civil Aviation Authority granted it final accreditation as a regulated agent. Awarded until December 2011, accreditation follows efforts by FCS to observe EU Directive 2320/2002 including measures to enhance air cargo handling safety, operating area security, warehouse entrance efficiency and various training initiatives.
China Southern Airlines will report a nearly tenfold increase in full-year pre-tax profit under domestic accounting standards, to CNY3 billion ($411.9 million) in 2007 from CNY306 million the year before, GM Liu Shaoyong told the state Xinhua news agency. Revenue rose 13.6% to a record CNY50 billion on a 15.3% year-over-year increase in passenger numbers to 56.7 million.
Air China plans to raise its stake in Air China Cargo to 76% from 51% in order to pave the way for its joint venture with Cathay Pacific Airways ( ATWOnline, April 17, 2007).
Turkish Airlines said it will lease two A340-300s from ILFC for six years each beginning in February and April. It currently operates seven of the type. Separately, THY is targeting a net profit margin of 10% for 2007 and 20% passenger growth in 2008, CEO Temel Kotil told Reuters. The carrier expects 24 million passengers this year. It plans to join Star Alliance in March.
Vietnam Airlines earned a pre-tax profit of VND370 billion ($22.8 million) in 2007, according to a company statement cited by press reports, a 6.4% improvement over the 2006 figure. Revenue climbed 15.5% to VND20.37 trillion as passenger numbers eclipsed 8 million and load factor rose 4.2 points year-over-year to 75.4%. International traffic comprised 40% of its operations. GD Pham Ngoc Minh told Agence France Presse that VN is targeting 14% revenue growth in 2008 and 9 million passengers.
EasyJet now is selling tickets on its website for 32 routes operated by GB Airways. The LCC's purchase of the London Gatwick-based carrier is expected to close this month ( ATWOnline, Oct. 26, 2007). GB will cease operating under the British Airways banner on March 29.
SkyEurope Airlines secured a €15 million ($22 million) loan from York Global Finance, the LCC's largest shareholder. It said it will use the funds "to continue with the execution of its turnaround plan without diluting shareholders' interests through the issuance of new capital." It lost €24.1 million in the fiscal year ended Sept. 30.
Yemenia Yemen Airways signed an agreement with Djibouti Airlines to help the African carrier renovate its eight aircraft and upgrade its operation, the Yemeni government news agency reported. Djibouti Airlines reportedly has secured financing from "a number of foreign investors" and would receive $12 million in a first phase.
The China Eastern Airlines/Singapore Airlines deal appears increasingly less likely to go through, with Air China stating yesterday that it is planning a counterbid while a change in CAAC leadership signaled that Beijing may be cooling to the stake sale. Li Jiaxiang, president of Air China parent China National Aviation Holding Co., was promoted to head China's aviation ministry on Dec. 28 and is known to be skeptical about foreign investment in Chinese airlines.
Monarch Airlines carried 3.7 million passengers on its scheduled services last year, a 15.8% increase over 2006. The launch of eight new routes contributed to the surge, the airline said, noting it will continue its eastern Mediterranean expansion and will launch a new Manchester-Murcia service next month.
Martinair's supervisory board elevated Diederik Pen to COO. Mesa Air Group named Freedom Airlines President Jorn Bates as COO-Mesa Airlines and Joe Serratelli, most recently VP-operations and productivity for Delta Air Lines subsidiary Song, as COO-Freedom Airlines. Mesa Airlines VP-Flight Operations Mickey Morman was promoted to VP-safety and regulatory compliance for MAG, Mesa Airlines VP-Safety and Regulatory Compliance Eric Gust was named to succeed Morman and Mesa Airlines Senior Director-Dispatch Zaka Khogyani was named the carrier''s director of operations.
Continental Airlines said mainline and consolidated unit revenue each climbed 5.5%-6.5% in December compared to the year-ago month. Consolidated traffic rose 1.9% to 7.62 billion RPMs against a 3% climb in ASMs to 9.69 billion. Load factor fell 0.8 point to 78.7%.
TAM signed a loan agreement with BNP Paribas to finance up to $117.1 million in pre-delivery payments on 30 Airbus aircraft scheduled to arrive through 2010. Separately, TAM launched daily Sao Paulo Guarulhos-Madrid service aboard an A330. The Spanish capital is its fifth European destination.
Assn. of European Airlines elected KLM President and CEO Peter Hartman as chairman for 2008. Hartman takes over from Iberia Chairman and CEO Fernando Conte.
