Austrian Airlines Group issued a profit warning projecting a loss of up to €90 million ($141.8 million) in 2008 owing to high fuel costs and tough competition.
Aer Lingus said it will reduce its long-haul capacity by 15% for the 2008-09 winter season owing to "unprecedented" fuel costs, the weak US dollar and a slowing economy. The carrier conceded that based on current fuel prices and the uncertain economic outlook, it expects "at best" to break even for 2008. The reduction will include suspension of its five-times-weekly Dublin-Los Angeles service from Nov. 2. It also decided to take two A330s out of service in 2009 when it takes delivery of two new A330s, keeping the fleet to nine rather than expanding to 11 as had been planned.
Dublin Airport Authority awarded Siemens a €40 million ($63 million) contract to design and build a baggage handling system for Dublin Airport's new passenger terminal T2. The project is scheduled to open in spring 2010. DUB's €395 million T2 will be capable of handling up to 15 million passengers per year.
Delta Air Lines yesterday told regional partner Pinnacle Airlines that the capacity purchase agreement the two carriers signed in April 2007 will be terminated as of July 31, claiming that the Memphis-based airline has failed to meet ontime performance standards.
Aviareps will provide Delta Air Lines with ticketing services and sales for Malaga-New York JFK service. DL began the new route on June 4 and will operate it four-times-weekly.
JetBlue Airways subsidiary LiveTV yesterday reached an agreement to purchase Verizon's Airfone network, a move that the company said will "anchor [its] inflight e-mail and messaging platform." Financial terms of the purchase were not disclosed. LiveTV plans to enhance and expand Airfone's Kiteline service, an inflight e-mail and messaging service targeted at the commercial aviation market. JetBlue already offers inflight e-mail on a single A320 on a trial basis via the Airfone network.
Amadeus said it reached an agreement with Singapore Airlines to replace the carrier's existing passenger service systems with its Altea Customer Management Solution. Technology is expected to enhance sales and reservations as well as global inventory management and departure control operations. Decision follows a comprehensive review of Amadeus's experience in migrating from legacy applications and platforms to newer technologies.
Emirates said it will operate its first A380 commercial flight on Dubai-New York JFK service Aug. 1 and from Aug. 8 will operate the route with the aircraft thrice-weekly. The flights are in addition to the twice-daily service it already offers on the route. The aircraft, the first to be powered by Engine Alliance GP7200s, will be configured with 489 seats: 14 first class, 76 business and 399 economy. It also will provide 13 tons of belly hold capacity for cargo.
SkyWest said it ended its quest to acquire ExpressJet Holdings after the latter announced a new service agreement with Continental Airlines last week ( ATWOnline, June 9). In April, ExpressJet rejected an unsolicited buyout offer from SkyWest Inc. valued at $3.50 per share or around $180 million, claiming that the offer undervalued the carrier ( ATWOnline, April 28).
Hainan Airlines is joining with the Yunnan local government in southwestern China to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air, an HNA subsidiary launched in 2006 that apparently will cease to exist. Based on an agreement signed between HNA and the Yunnan government, another HNA subsidiary, Grand China Air, will be the controlling stakeholder of the new Yunnan Airlines. The entity is reported to have a registered capital of more than CNY3 billion ($43.3 million).
CAE said it acquired Sabena Flight Academy for an undisclosed amount of cash with the aim of expanding its pilot training capability. It will gain control of Sabena's training center in Brussels equipped with FFSs for A320s, A330s, A340s, 737 Classics and 737NGs. It also will take over Sabena's pilot training school in Mesa, Ariz., equipped with 40 aircraft.
Airbus last week released a forecast for Central Europe that projected the region will require approximately 460 new aircraft worth $32 billion through 2026. Single-aisle aircraft "will dominate deliveries," it said. Traffic in the region is expected to grow 6.7% annually through 2026, faster than the global average of 4.9%, the manufacturer said.
ExpressJet Friday signed a new seven-year capacity purchase agreement with Continental Airlines that CO said included lower rates comparable to those charged by other regional providers. Under the new contract, which will take effect July 1, ExpressJet will operate a minimum of 205 aircraft for CO the first year and a minimum of 190 in following years. The deal enables the regional to swap out some of its 37-seat jets for larger 50-seat RJs to be operated under the CO agreement.
Swiss Aviation Training said it will acquire an E-190 full-flight simulator to train Lufthansa Group cockpit crews. CAE is expected to deliver the simulator by year end.
Telair will provide SilkAir with its Sliding Carpet Loading System for A319s and A320s under a recent deal. Airbus will install the systems prior to delivery.
Air New Zealand CEO Rob Fyfe said the carrier is growing increasingly confident that commercial quantities of environmentally sustainable fuels that meet all its stringent criteria will become available over the next few years.
Air Astana President Peter Foster told ATWOnline last week that the carrier is well positioned to weather the current economic environment, insisting that conditions in Central Asia will remain strong.
Aeroflot last week confirmed that it plans to lease an additional 19 A320 family aircraft. No other details were provided. Interfax reported that the carrier plans to add up to 65 Airbus aircraft in the future. It already operates 36 narrowbody Airbus aircraft. It reportedly wants to double its current level of domestic services by 2014. CEO Valery Okulov told ATWOnline at the IATA AGM in Istanbul last week that SU is looking for a European airline with which it can form a strategic partnership. "We are considering Austrian Airlines. .
Qantas Group announced a series of changes to its international network owing to fuel expense. CEO Geoff Dixon said Japan and Southeast Asia will be most affected. "The Japan-Far North Queensland market has also been particularly difficult for Qantas for a number of years," he noted.
Virgin Blue CEO Brett Godfrey expressed "profound disappointment" with an Australian JP Morgan report that claimed in one of its scenarios that the airline "could collapse under the weight of higher fuel prices." The gloomy forecast was reported widely in Australia by most major papers with alarmist headlines. Speaking to ATWOnline from Brisbane, Godfrey pointed out, "The doomsday scenario was only one of three in the JP Morgan report and the report actually forecast that the airline's share price would rise and its profit would be 600% higher than the 2008-09 profit."
Gol and VRG parent Gol Linhas Aereas said Executive VP and CFO Richard Lark will be elevated to the board effective June 16 and serve as an "adviser" to CEO Constantino de Oliveira Jr. He will transition his former responsibilities to Treasurer Anna Bettencourt, who will become finance director and investor relations officer, Controller Fabio Pereira and Accounting and Tax Director William Cattan, who also will serve as principal accounting officer. Schiphol Group appointed Jos Nijhuis president and CEO effective Jan. 1, 2009.
Emirates will receive its first A380 on July 28 at a ceremony in Hamburg. First service will be from Dubai to New York JFK, possibly as early as Aug. 1. At the recent IATA AGM in Istanbul, EK President Tim Clark made waves when he announced that the airline had no plans to reduce flying because of soaring fuel prices and the softening of the market. "We are not cutting back but in fact are looking to expand," he told delegates. The expansion could include the conversion of an order for 10 787-8Fs to the passenger version, according to some observers in Dubai.
The 787 delay is having a "quite dramatic" effect on Royal Jordanian's long-haul growth strategy, Chairman and CEO Samer Majali told ATWOnline at this week's IATA AGM in Istanbul. "The [787] delay hits our strategy," he said, noting that the carrier's regional and mid-haul fleet renewal will be finalized by next year.
Oneworld airlines generated "record" revenues from the alliance's sales activities in 2007, Managing Partner John McCulloch said during a presentation at this week's IATA AGM.
