Hainan Airlines began construction of a new base at its Urumqi hub that will feature a hangar, warehouses, catering facility, flight crew and office building and a maintenance facility. First phase of construction on the 153-acre site is scheduled to be completed by the end of 2008. Hainan operates 13 routes within and from the Xinjiang region in northwest China. The carrier said it intends to operate routes to Central Asia and Eastern Europe from the airport. Separately, Hainan launched four-times-weekly Tianjin-Ningbo service aboard 737s.
ILFC is planning an imminent announcement of an order for 20 A350 XWBs valued at about $4 billion, Les Echos and Bloomberg News reported Friday. While there was no official confirmation, Airbus COO-Customers John Leahy last week said he was in talks with the lessor regarding the revamped aircraft, while Airbus North America Chairman Allan McArtor said ILFC was "very comfortable" with the redesigned aircraft and the manufacturer would be "thrilled" with an order from the lessor.
Chalk's Ocean Airways, which suffered a fatal crash of a Grumman Turbo Mallard in December 2005 ( ATWOnline, May 31), lost its operating license and has not operated since early last month, the South Florida Sun-Sentinel reported. Chalk's had been leasing aircraft from Big Sky Airlines but failed to secure FAA re-approval for its own aircraft or acquire new ones, the paper said, so it lost its license.
Air India Chairman V. Thulasidas said Friday that the carrier remains in negotiations with Star Alliance but has not reached a final decision to join, The Economic Times reported. "We can announce our alliance only after a formal agreement is reached," he told the paper.
The European Commission is seeking comments from interested parties on commitments proposed by SkyTeam members hoping to obtain antitrust immunity, including the ceding of slots at certain EU airports to competitors.
Middle East Airlines announced that it earned a net profit of $39 million in 2006 despite the hardships it faced when Beirut Rafik Hariri International was closed for 36 days that summer during hostilities between Lebanon and Israel. The result was down 36.5% from the $61.4 million earned in 2005. Chairman Mohammed Hout said the carrier partially offset a $32.5 million revenue decline with the leasing out of its aircraft, which netted $13.3 million. He said MEA will float a 25% stake "when the time is ripe."
Consolidation appears to be the development trend in China's airline industry, but Hainan Airlines Group President Chen Feng said that the "super carrier" idea promoted by some officials will not work. Chen was speaking yesterday after attending the Communist Party of China's national congress in Beijing. He noted that Air China, China Southern Airlines, China Eastern Airlines and Hainan have controlled 90% of the domestic market since 2002 despite the increase in new entrants. "I don't think there is a possibility that these four bigger airlines will merge," he said.
ANA yesterday confirmed a report in The Wall Street Journal that it will take a one-time charge of ¥66 billion this fiscal year owing to a change in accounting related to aircraft and equipment depreciation, although it has not changed its full-year guidance of ¥64 billion in net earnings ( ATWOnline, Aug. 1). Qantas yesterday said it is "looking at restructuring opportunities" for Qantas Holidays, its wholesale holidays business.
Southwest Airlines reported a third-quarter profit of $162 million, more than triple than the $48 million earned in the year-ago period, even as operating income fell slightly. Special gains more than made up the difference, and CEO Gary Kelly promised that barring an economic slowdown, revenue and schedule initiatives will bear fruit in the fourth quarter.
BAE Systems Regional Aircraft announced the following deals: Blue1 signed long-term lease extensions on four RJ85s. It currently operates a fleet of nine Avros along with three MD-90s. CityFlyer, a wholly owned subsidiary of British Airways that operates a fleet of 10 RJ100s, signed a lease for two RJ85s. Spanish charter carrier Orion Air signed a long-term lease for a BAe 146-200.
The highest quarterly revenue in company history helped boost Continental Airlines to a third-quarter net profit of $241 million, which represented a 1.7% increase over the $237 million earned in the year-ago quarter.
Mexico's government agreed to sell its 62% stake in AeroMexico to a group of investors led by Banamex, the Mexican arm of Citigroup, for MXN2.7 billion ($249 million) following an intensifying bidding war.
American Airlines, which has seen significant growth at Miami International Airport, said it is working with local officials to speed up construction of a new North Terminal. In September, AA reported a 14.4% year-over-year increase in passengers at MIA. As the project progresses, the airport will close Concourse A and American will operate out of C, D and E.
In a deal clearly inspired by the KLM-Northwest Airlines transatlantic joint venture, Air France and Delta Air Lines yesterday confirmed the creation of 50-50 JV to share revenues and costs on their transatlantic operations.
Alaska Airlines launched the first phase of an $18 million check-in facility dubbed the Airport of the Future at Seattle-Tacoma International. The system, shared with Horizon Air, replaces traditional ticket counters with a series of kiosks and bag check stations designed to reduce customer wait times. The first of three check-in "islands" features 11 kiosks and 16 bag check stations. Remaining islands will enter service by mid-2008.
EgyptAir Chairman Atef Abdel Hamid expects tough work ahead as the carrier readies itself for Star Alliance membership. "I read all the 52 requirements to be a member by myself. We still have a great challenge to meet the standards of a Star Alliance member," he admitted. The airline already has started, even though its commitment to join the group was announced just this week ( ATWOnline, Oct. 17).
Banamex and the Saba family continued their bidding war for AeroMexico yesterday, with both upping their bids to at least MXN2 billion ($185 million). The Mexican government indicated it was leaning toward accepting the bid of Banamex, the Mexican arm of Citigroup, unless the Sabas had outbid their rival clearly by the close of business yesterday. Moises Saba Masri vowed to win the bidding, saying in a radio interview that "If we have to make a higher counteroffer, then we'll do it.
Singapore Airlines' first A380 touched down at Changi International Wednesday evening at 18:42 local time, starting a new era in commercial aviation. The giant jet, which had departed Toulouse 13 hr. before, docked at the essentially complete and spectacular S$1.75 billion ($1.19 billion) Terminal 3, which is due to go into full-scale commercial operation on Jan. 9. Prime Minister Lee Hsien Loong and more than 500 guests were in attendance.
American Airlines parent AMR Corp. posted third-quarter net income of $175 million, more than 10 times net earnings of $15 million in the year-ago quarter, and insisted it is seeking ways to increase shareholder value following complaints that the company is doing too little to stop its stock price from sinking.
CFM International named Olivier Savin, VP of Snecma Services' component repair business unit, executive VP. He replaces Francois Planaud, who was named VP and GM of Snecma's Commercial Engine Division.
US Dept. of Transportation will include several foreign carriers in the meetings called for Oct. 23-24 to address congestion issues, specifically in the New York market ( ATWOnline, Oct. 15), Reuters reported, mentioning Air France KLM, British Airways, Lufthansa, Japan Airlines and Virgin Atlantic Airways.
Delta Air Lines reported third-quarter net income of $220 million, more than quadrupling net earnings of $52 million in the year-ago quarter when it was operating under bankruptcy protection, and said it actively is seeking ways to cut costs further, including the possible sale of regional subsidiary Comair.
Bidding for AeroMexico intensified yesterday as both the Saba family and Banamex boosted their rival offers for the carrier and Mexicana urged stakeholders not to dismiss its bid despite a rejection by regulatory authorities on antitrust grounds. Father and son Alberto Saba Raffoul and Moises Saba Masri increased their bid to MXN1.89 billion ($174.7 million) while Banamex, the Mexican arm of Citigroup, said the group of investors it is leading have upped their bid to MXN1.85 billion.
Jet Airways yesterday finalized its order for 20 winglet-equipped 737-800s placed last week ( ATWOnline, Oct. 9). The aircraft are worth nearly $1.5 billion at list prices, Boeing said. Engine choice was unannounced.
Despite its abrupt withdrawal from the deal to purchase a major stake in China Eastern Airlines in conjunction with Cathay Pacific Airways last month, Air China still is considering a merger and will evaluate its options over the next three months, President Li Jiaxiang told reporters yesterday after attending the Communist Party of China's national congress in Beijing.
