Iberia might reassess its offer for Spanair, which it launched in February ( ATWOnline, March 26). "The truth is the clock is ticking. The environment is changing. We have to consider what the future of our offer is within this new market environment," Chairman Fernando Conte told a news conference before IB's annual shareholders meeting, Reuters reported.
Cathay Pacific Airways plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. COO John Slosar told Hong Kong media that the carrier is considering a variety of replacement aircraft and that "the A380 is also an option." In the interim, it will raise its fuel surcharge 37% from June 1 in an effort to negate 40%-50% of the increase in fuel prices. CEO Tony Tyler said fuel now accounts for 40% of CX's total operating costs, up 10 points from last year.
Mesa Air Group will file for bankruptcy by July 20 if Delta Air Lines is allowed to terminate its service agreement with the Phoenix-based regional, according to a report by the Associated Press. "We are prepared to file for bankruptcy," Mesa President and COO Michael Lotz reportedly told a US district judge at an Atlanta hearing Tuesday.
Record revenue was not enough to offset a difficult economic environment and a one-time provision related to potential liability for anticompetitive cargo activities as El Al sank to a $49.9 million first-quarter loss that was more than three times the $15.3 million lost in the year-ago period.
Former EADS co-CEO Noel Forgeard was detained by French police yesterday in relation to the ongoing probe into insider trading allegations regarding the June 2006 A380 delay announcement.
JetBlue Airways will defer delivery of 21 A320s to 2014-15 from 2009-11 to "help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations," CEO Dave Barger said.
Dnata Cargo, Kanoo and SDV International Logistics yesterday entered into a JV to bolster logistics services in the UAE. Kanoo and Dnata will split 51% of the venture and 49% will be owned by SDV.
Qantas will slash capacity by 5% due to rising fuel prices and warned the Australian Stock Exchange yesterday that it plans to cut its fleet, network and workforce as it expects its fuel bill to increase by more than A$2 billion ($1.92 billion) in the 2008-09 fiscal year.
Gulf Air ordered 20 A330-300s and 15 A320s, a commitment that will more than double the Bahraini carrier's Airbus fleet, the manufacturer announced yesterday. The airline already operates 10 A320s, six A330-200s and nine A340-300s and in January signed a contract with Boeing for 16 787s ( ATWOnline, Jan. 21).
Iberia Maintenance signed a long-term agreement with DHL to overhaul more than 80 RB211-535C37 engines powering 34 aircraft operated by DHL Air and European Air Transport.
Italian administrative court ordered that a new tender be organized for Volare within 15 days, confirming that Alitalia's 2006 acquisition of the LCC violated procedure, Reuters reported. AZ rival Air One also wanted Volare and brought the case to court ( ATWOnline, June 6, 2006).
DHL yesterday unveiled a $2 billion restructuring of its loss-making US express business that includes shifting its air lift capacity in the market to rival UPS, a potentially devastating blow to ABX Air and Astar Air Cargo, which currently provide the German express giant's US lift.
Air New Zealand announced that its pre-tax profit for the year ending June 30 will fall by more than 23% because of soaring jet fuel prices. It said earnings will be less than NZ$200 million ($157.8 million), down from NZ$259 million the previous year. Last month ANZ reduced its full-year profit forecast to NZ$200-NZ$220 million ( ATWOnline, April 28). It raised fares last month and from September it is cutting capacity on its Auckland-London Heathrow service by switching to 777-200ERs from 747-400s.
Wataniya Airways is the name of a new short-haul premium carrier based in Kuwait that will launch service next January and offer point-to-point flights to Persian Gulf and Middle East destinations. It initially will operate two A320s with 122 seats and what it claimed will be the "lowest seat density of an A320 of any scheduled airline in the world."
Regional Express (Rex) of Australia reported an A$8.2 million ($7.9 million) pre-tax profit in the fiscal third quarter ended March 31, up 7.9% from the A$7.6 million earned in the year-ago period. Executive Chairman Lim Kim Hai said Australian regional aviation "encountered a veritable tsunami in the past few months" with rising oil prices, economic difficulties and a pilot shortage ( ATWOnline, May 8). Lim said Rex "performed beyond our expectations" in part because it remains debt free.
SAS Scandinavian Airlines said it requested a 10% price reduction on goods and services it receives from its suppliers as part of its Profit 2008 program ( ATWOnline, April 30).
AirAsia founder and CEO Tony Fernandes hit back at suggestions that his airline is exposed to surging oil prices, with analysts souring on the company's stock as it hit its lowest level--MYR1.02 ($0.32)--since it listed in November 2004. Speaking yesterday to ATWOnline, Fernandes argued, "There are opportunities, in a slower economy, whereby travelers who might have flown on a legacy airline will now choose a lower-cost, better-value option. People still need to travel."
Air Berlin will reduce its Dusseldorf-Shanghai service to thrice-weekly from five-times-weekly from the end of June owing to a "drop in demand for the Chinese market and the high fuel costs," CEO Joachim Hunold said. Separately, AB announced the sale of its Dusseldorf-based "LTU plus" service center to former LTU partners Jurgen Marbach (55%) and Rudolf Worhl (45%) for an undisclosed sum. The center employs 65 and provides services to AB under a two-year deal.
Republic Airways flew 874.4 million RPMs in April, a 28.1% increase over the year-ago month. Capacity climbed 28.5% to 1.15 billion ASMs and load factor slipped 0.3 point to 75.9%.
News from Travel Technology Update: Of all the actions taken by the airlines to defend against high fuel costs, none has brought the gravity of the fuel crisis home to consumers quite like American Airlines' plan to charge most coach passengers $15 each way for the first checked bag. The high fuel costs are "the biggest threat to the world's airlines ever," Henry Harteveldt, vice president and principal analyst at Forrester Research, said. Even in the dark days following 9/11, "we knew demand would return."
SITA reached agreement with Bogota's El Dorado International to provide its AirportConnect Open technology for agent and self-service passenger check-in. CUTE system allows passengers to check in at any kiosk or desk. Investment is part of a $650 million expansion program at BOG.
El Al said it is making a $20 million provision in its financial reporting for a "possible settlement" with the US Dept. of Justice regarding antitrust activities related to cargo transport. Carriers throughout the world are contending with a wide-ranging multinational probe conducted by DOJ, EU antitrust authorities and other governments into alleged price fixing on cargo carriage in 2000-06.
Anatolia Jet, Turkish Airlines' wholly owned low-cost subsidiary, launched successfully last month. "We already have an 80% load factor, and the carrier is getting better, as we expected," THY CEO Temel Kotil told ATWOnline. He said Anatolia, which operates five 737-400s from its Ankara hub, could increase its fleet to a possible 10 aircraft this year. "Public response to this product is very good," he said ( ATWOnline, March 31).
Swiss International Air Lines last week unveiled new business class seats to be installed on its long-haul aircraft beginning next year, part of the airline's concerted effort to distinguish itself from parent Lufthansa.
