Niki is in talks with Embraer and Bombardier about a regional jet order. "We are evaluating which smaller aircraft between 88 and 114 seats is ideal for us below the A320 family. The A318 is a not useful airplane, so we are studying what else is on the market. But nothing is concrete," President Niki Lauda told ATWOnline in Ibiza. The Austrian carrier would use smaller aircraft to increase frequencies on routes such as Zurich or Frankfurt. Lauda said high oil prices are forcing the airline to consider more cost-effective aircraft. Niki has hedged 35% of its fuel needs.
US FAA Assistant Administrator-Aviation Policy, Planning and Environment Dan Elwell will leave the agency to become US Aerospace Industries Assn. VP-civil aviation effective July. 7. Aer Lingus named Ryanair Director-Scheduled Revenue Sean Coyle as its new CFO. He will join EI on Aug. 11.
Claiming it has a "much different story to tell today than our competitors," Southwest Airlines yesterday unveiled a schedule adjustment that will see it add a net nine roundtrip flights to its network.
Lufthansa Group airlines flew 13.61 billion RPKs in May, up 27.1% year-over-over. Capacity increased at the same rate to 17.33 billion ASKs, leaving load factor level at 78.6%.
Flow International signed a multimillion-dollar contract with Airbus to manufacture and install multiple Composite Machining Center abrasive waterjet and routing machine tool systems for A350s. CMC systems will be used to cut wings, fuselage, wing spars, keel beam and other parts.
Qantas said it is experiencing strong forward bookings from the US for its Melbourne-Los Angeles A380 service set to launch on Oct. 20. It has configured its A380 for just 450 passengers with 14 seats in first class, 72 in business, 32 in premium economy and 332 in economy. A Qantas spokesperson told the Australian Associated Press that US sales, which began June 16, are progressing. "Our forward bookings are positive for the US market on both our 747s and the A380," the spokesperson said.
Gol Linhas Aereas Inteligentes received permission to complete its acquisition of VRG (formerly Varig) "with no restrictions" from the Brazilian Administrative Board for Economic Defense, the final agency from which it needed to gain approval for the transaction. It appears that the two carriers will continue to operate separately, but Gol President and CEO Constantino de Oliveira Jr. said the ruling "will allow us to consolidate our investments and improve synergies between the airlines' operations. . .
Air France KLM, Cathay Pacific Airways, Martinair and SAS Group all reached agreement with the US Dept. of Justice to plead guilty in US court and pay criminal fines "for participating in a multiyear conspiracy to fix prices for air cargo rates," DOJ said yesterday.
AerCap Holdings said it closed a $1 billion aircraft securitization through Aircraft Lease Securitisation II Ltd. The deal will provide "long-term nonrecourse funding" for 30 new A320 family aircraft, according to the company. The jets are part of a 70-aircraft order placed by AerVenture Ltd., AerCap's joint venture with two Kuwait-based partners, LoadAir and Al Fawares.
ALAFCO reached a deal with Saudi Arabian Airlines for the sale and lease of 17 aircraft for delivery from 2009 through 2015, the Arab Air Carriers Org. reported. Agreement comprises the sale of eight 787-9s worth $1.6 billion, the 12-year lease of an additional four -9s and eight-year leases on five A320-200s. Separately, Saudi Arabian and Singapore Airlines signed a marketing and cooperation MOU under which they will explore codesharing, schedule coordination, loyalty program linkups and cargo and marketing coordination.
Air Berlin is reconsidering its acquisition of Condor Airlines from Thomas Cook, CEO Joachim Hunold said at AB's annual shareholder meeting this week, according to Reuters. The deal was announced last fall. "Because of the significant delays in the approval process and the changing economic circumstances, we are currently examining whether the Condor transaction is still sensible," Hunold said. AB was scheduled to acquire 75.1% of Condor next February and the remaining share in February 2010.
American Airlines and Aircell yesterday tested their inflight Internet product on two 767-200 flights between New York JFK and Los Angeles, while the carrier announced that its fourth-quarter capacity cuts will include cessation of service at eight airports.
Lufthansa yesterday said it still expects its 2008 operating profit to match the €1.38 billion ($2.15 billion) reported in 2007 despite an economic environment that "represent[s] a considerable challenge for the airline industry." It expects fuel costs to reach approximately €5.6 billion this year but is confident "that the demand for mobility will continue to increase and that despite fluctuations air traffic will carry on growing." It said "efficiency gains" and cost cuts, along with surcharges, will soften the fuel impact and that increasing partnerships with other carrie
United Airlines flew 9.8 billion RPMs in May, down 4.1% year-over-year, against a 1.7% decline in capacity to 11.87 billion ASMs. Load factor slipped 2 points to 82.6%. US Airways Group consolidated passenger RASM rose 2%-4% in May compared to the year-ago month. Consolidated traffic grew 0.3% to 5.58 billion against a 0.1% fall in ASMs to 6.83 billion. Load factor was up 0.3 point to 81.8%.
Chinese airlines carried 15.4 million passengers in May, down 1.1% year-over-year, as the devastating Sichuan Province earthquake and surging oil prices impacted demand, according to CAAC. Air China passenger boardings dropped 10.7% to 2.7 million and load factor fell 4.5 points to 71.3%, which CA attributed to the earthquake and the dedication of some capacity to relief efforts. China Eastern Airlines saw passenger numbers plunge 8% to 3 million. Operating expenses rose with fuel prices.
Air Mauritius Group returned to profit in its most recent fiscal year, posting €17 million ($26.4 million) in earnings in the 12 months ended March 31 compared to a €6.7 million loss in the prior year. Yesterday, the carrier also announced that current shareholders including the Mauritius government reached agreement with British Airways to purchase its 10.5% stake in the airline for £3.2 million ($6.3 million). BA had held the stake, comprising a 13.24% share of Air Mauritius Holding Co. and a 3.84% share in Air Mauritius Ltd. since 1973.
Aer Lingus flew 1.53 billion RPKs in May, up 18.7% from the year-ago month. Capacity rose 25.3% to 2.01 billion ASKs, dropping load factor 4.2 points to 76.1%.
UPS issued a profit warning yesterday, projecting earnings per share for the second quarter of $0.83-$0.88, down from the $0.97-$1.04 per share originally anticipated. It cited "slow US economic growth and an unprecedented increase in the cost of fuel," resulting in lower US package volume than expected and an "accelerating contraction in the use of premium air products."
Alaska Airlines flew 1.62 billion RPMs in May, up 2.2% year-over-year, against a 1.3% increase in capacity to 2.08 billion ASMs. Load factor rose 0.7 point to 77.8%. Unit revenue climbed 1.7% to 11.64 cents. It is forecasting a 1.2% year-over-year increase in second-quarter capacity to 6.2 billion ASMs and a 1.2% hike in full-year capacity to 24.5 billion ASMs. Second-quarter unit cost is expected to rise 11%-12% to 11.5-11.6 cents. It also said it expects to incur a charge of approximately $30 million this quarter related to the retirement of two leased MD-80s.
United Airlines said it will furlough 950 pilots, about 14% of its flight deck workforce, blaming "high oil prices and a softening US economy." In a message to workers, UA management explained that its previously announced plan to cut 100 aircraft from its mainline fleet by the end of 2009 ( ATWOnline, June 5) led to the decision to eliminate 950 pilot positions, which are in addition to 1,400-1,600 salaried and management positions that it also has said it will cut.
Chinese government last week raised the domestic fuel price more than 25% to CNY7,450 ($1,082) per ton, which China Securities aviation analyst Li Lei reported would lead to a CNY3.6 billion increase in annual expenses for China Southern Airlines--which operates the largest domestic network--a CNY1.8 billion rise for Air China, CNY2.2 billion for China Eastern Airlines and CNY700 million for Hainan Airlines. However, Li said the increase will not have a significant influence on second-quarter financial performance, as yuan appreciation will continue to drive profits.
Virgin Blue CEO Brett Godfrey decided that the best form of defense is attack and warned that some airlines face imminent shutdown because of soaring fuel prices. Three weeks ago Godfrey was forced to defend Blue from reports that it risked bankruptcy ( ATWOnline, June 6). JP Morgan, author of the possible scenarios that prompted the press speculation, later clarified that it did not believe Blue faced bankruptcy.
