A significant swing to the red in its fiscal fourth quarter ended March 31 helped drag India's Jet Airways to a full-year loss of INR2.53 billion ($58.9 million), a reversal from the INR280 million profit it reported in the year ended March 31, 2007, and its JetLite subsidiary suffered even heavier losses.
Airbus began transporting A320 segments from Hamburg to the new Tianjin FAL, where the first aircraft (headed for Sichuan Airlines) will be assembled starting in August for delivery in the first half of next year. Airbus will hold 51% of the Tianjin joint venture with the Chinese Industry Consortium comprising the Tianjin Free Trade Zone, AVIC I and AVIC II holding the remainder.
Delta Air Lines and Northwest Airlines pilots reached a tentative agreement yesterday with DL management on a joint contract, a major milestone in the carriers' planned merger.
Malaysia Airlines will reduce capacity by 6% and enact other cost-saving measures, according to MD Idris Jala, who said MAS will "freeze. . .recruitment, defer spending, adjust fares and review routes and flights which are losing money," Thomson Financial reported from Kuala Lumpur. He said MAS also may decline to exercise its option for 20 737-800s that accompanied its firm order for 35 in March ( ATWOnline, April 1).
FedEx Express received a US FAA supplemental type certificate for a new avionics system that combines Honeywell's Head Up Display and Elbit Systems of America's infrared Enhanced Flight Vision System and plans to install it on its MD-10 freighters.
Cargo carrier MK Airlines recommenced flight operations after administrators secured funding last Friday from Transatlantic Aviation Ltd., part of The Belfairs Management Group. MK suspended service June 10 and was in discussions with several parties regarding investment that would help it renew its fleet of 747-200Fs and DC-8Fs.
Sudan government grounded flag carrier Sudan Airways and suspended its operating certificate yesterday for breaching unidentified rules and noncompliance, according to widespread press reports from Khartoum. A civil aviation authority official was quoted as saying the grounding was for "an undefined period" and was unrelated to the A310 accident that killed at least 30 two weeks ago ( ATWOnline, June 12).
Air Berlin unveiled a cost reduction package that will include removal of 14 aircraft from service by year end and the closure of the Munich administrative offices of dba. "The organizational restructuring contributes significantly to lowering cost and maintaining competitiveness," CEO Joachim Hunold said. AB reported a slightly narrowed €59 million ($91.5 million) first-quarter loss ( ATWOnline, May 30).
SkyEurope Airlines added Vienna-based ASP as an investor. The firm purchased 7.24% of the LCC on the bourse for approximately €7 million ($10.9 million). ASP reportedly was attracted by the fact that SkyEurope has reduced its costs 17.7% over the past six months. However, it still faces a first-half loss of around €28.5 million.
TUI Travel signed an agreement with AerCap Holdings and Deucalion Aviation Funds for the sale and leaseback of 19 owned aircraft within the TUI Travel fleet for $526 million. Aircraft will be acquired through a 50/50 joint venture between AerCap and Deucalion and will be managed by AerCap, which will receive servicing fees. TUI Travel will continue to operate the 11 737-800s, six 757-200s and two 767-300ERs on 1-7-year operating leases with TUIfly, Thomsonfly, TUIfly Nordic and Jet4You.
Continental Airlines announced a public offering of 11 million shares of class B common stock priced at $14.80 per share. It granted underwriter UBS Investment Bank a 30-day option to purchase an additional 1.65 million shares to cover any overallotments. Issuance and delivery of the shares is scheduled for June 25.
Austrian Airlines Group CCO Andreas Bierwirth said the carrier is considering establishing an even greater presence in Central and Eastern Europe. It already holds a 22.5% share in Ukraine International Airlines and would strengthen its foothold with investments in other carriers in the region. "If AAG is earning positive results and we have enough cash available, then we can be more active in this region," Bierwirth told ATWOnline in Vienna. He claimed Austrian will be more assertive in the region. "Even with our share in UIA, other airlines grew as well.
TAM flew 2.11 billion domestic RPMs in May, up 16% year-over-year, against a 10.2% increase in ASMs to 2.89 billion. Load factor rose 3.7 points to 73.1%. International traffic climbed 34% to 1.25 billion RPMs while capacity rose 23.5% to 1.68 billion ASMs. Load factor was up 5.8 points to 74.5%.
Delta Air Lines will offer a rebate of the $25 second-checked-bag fee to customers who purchased tickets before April 9 and traveled on or after May 5, making a "one time exception" to its policy of enforcing rules effective on the date of travel. It said the decision was "in response to customer feedback and as a matter of goodwill." It announced the new policy on April 9 and it became effective May 5. Separately, DL will launch five-times-weekly New York JFK-Buenos Aires on Dec. 18.
SAS Group yesterday abandoned its effort to sell Spanair, saying that as a result of the "challenging market conditions in the Spanish aviation market coupled with record oil prices and pressure in the financial sector," it has been unable to "reach its targeted terms and conditions on the divestment." CEO Mats Jansson said Spanair is "a company with a competitive cost position" and that SAS is committed to its future.
Aeroflot finally has released its 2007 full-year results under IFRS standards, reporting a $313.4 million profit that represented a 21.4% increase over the $258.1 million earned in 2006. However, it is predicting a drop this year, as "fuel prices are having a colossal effect on us," according to comments from SU Deputy Director Mikhail Poluboyarinov cited by Reuters. Revenue should rise 30%, driven partly by an 8%-10% increase in fares.
Continental Airlines and United Airlines yesterday signed a "framework agreement to cooperate extensively, linking their networks and services worldwide," and CO revealed that it will leave SkyTeam to join Star Alliance with UA and CO planning to form joint venture operations with other Star carriers for transatlantic services as well as flights to Latin America and Asia.
Governments around the world must work alongside airlines and manufacturers that are trying to make a difference in the environment, according to Air New Zealand's Rob Fyfe, CEO of one of the industry's greenest carriers.
Southwest Airlines will invest $175 million to implement RNP fleetwide for use at 64 US airports, the LCC announced yesterday at the Eco-Aviation conference presented by Air Transport World and Leeham Co. in Washington.
Japan Airlines said the JAL Flight Crew Union (1,100 members), JAL Japan Pilots Union (600) and Japan Air Commuter union (113) staged a strike yesterday, forcing cancellation of 86 flights (all related to the JAC walkout). JAL added that the pilots' action was "for a variety of reasons, including the summer bonus." It said JPU and JAC may continue the strike today, which would affect more flights.
British Airways flew 9.24 billion RPKs in May, down 0.7% year-over-year, against a 1.3% increase in capacity to 12.87 billion ASKs. Load factor dropped 1.5 points to 71.8%.
European Commission initiated a formal investigation into whether funding of Frankfurt Hahn Airport by two regional authorities and publicly owned company Fraport, its airport charges and its contracts with Ryanair break EU state aid rules. The Commission said its investigation follows complaints "from a competing airline and from an association of airlines" and noted that after an initial assessment of evidence it concluded that Flughafen Frankfurt Hahn may have behaved like a private market investor.
US airline executives yesterday stressed the debilitating nature of rising fuel prices and said further capacity reductions may be warranted, while Delta Air Lines announced that it is raising its second-half year-over-year domestic mainline capacity reduction from a previously announced 10% to 13%.
