Merged Air India holding company National Aviation Co. of India is planning to sell as much as 15% of the airline in an IPO next year, Chairman V. Thulasidas told reporters in Kolkata. The carrier currently is state-owned. Civil Aviation Minister Praful Patel confirmed the move in the Economic Times. He told the paper that "we are yet to take a view on the exact mode of equity dilution.
EasyJet concluded its financial year on Sept. 30 and said it now expects pre-tax profit for the 12 months to be "towards the top end" of its projected improvement of 40%-50% and that it will exceed that guidance if it includes a one-off benefit of £11 million ($22.4 million) associated with the writeback of its investment in The Airline Group. The LCC reported net earnings of £94.1 million and a pre-tax profit of £129.2 million in the year ended Sept. 30, 2006. It plans to announce its 2006-07 performance on Nov. 20.
Turkish Technic, a wholly owned subsidiary of Turkish Airlines established in May 2006, is preparing to launch an aggressive marketing campaign in mid-2008 to promote its new 200,000-sq.-m. MRO center at Istanbul Sabiha Gokcen. The facility, scheduled to begin operating in 2009, will accommodate six widebody and nine narrowbody aircraft and required an investment of around $200 million, GM Ismail Demir told ATWOnline in Istanbul.
Gol, which operates the LCC of the same name and Varig, issued a revised full-year guidance Friday indicating a significant decline in projected earnings due to "flight network alterations and higher fuel prices." Full-year revenue is expected to be BRL5.2-BRL5.4 billion ($2.83-$2.94 billion), down from the previously forecast BRL5.5-BRL5.7 billion, while load factor is expected to fall to 64%-66% from 68%-70%. As a result, operating margin should drop to 7%-11% from the previous guidance of 12%-15% and earnings per share will fall to BRL1.60-BRL2.10 from BRL3-BRL3.50.
SkyEurope Airlines will sell two 737-700s scheduled for delivery this month and next for a profit of $10 million that it will use to boost its sagging financial base during the winter season, Austrian media is reporting. The company reportedly also will sell its aircraft handling unit at Budapest ( ATWOnline, Sept. 6), where it will close its base this month, for an additional €3.5 million ($4.9 million).
Oasis Hong Kong Airlines secured a $30 million investment from funds managed by Value Partners Ltd. and affiliates, the Centre for Asia Pacific Aviation said. Oasis currently operates three 747-400s with a fourth set to arrive this year and a fifth in early 2008. CAPA said Oasis plans to operate 14 -400s on eight routes by 2011.
US Airways Group airlines flew 4.86 billion RPMs in September, up 2% from the year-ago month. Capacity fell 5% to 6.26 billion ASMs and load factor was up 5.4 points to 77.6%. Frontier Airlines flew 776.6 million RPMs in September, a 26% increase from the year-ago month. Capacity rose 9.4% to 996.9 million ASMs and load factor increased 10.3 points to 77.9%. Mainline yield fell 5.7% year-over-year to 9.79 cents while RASM rose 8.7% to 7.63 cents.
Mexicana late Wednesday submitted a takeover bid for AeroMexico valued at MEX2.17 billion ($199 million), topping recent bids made by the Saba family and Banamex.
VGS Aircraft Holding (Ireland) acquired two 757-200s from GECAS. Aircraft are leased to Thomas Cook until April 2013. VGS is owned jointly by Volito Aviation and an affiliate of the Goldman Sachs Group.
Snecma Services Brussels entered into a three-year time-and-materials engine MRO agreement with KD Avia based in Kaliningrad covering the CFM56-3s powering the airline's seven 737 Classics. Under the agreement, Snecma also will ensure the availability of a replacement engine.
Shanghai-based Junyao Airlines, benefiting from robust domestic growth and yuan appreciation, earned a net profit of CNY18 million ($2.4 million) from January to August operating with an average load factor of 80%, President Wang Junjin revealed this week on the occasion of the carrier's one-year anniversary. He expressed satisfaction with the result considering the company's youth. Buttressed by the solid result, Junyao is seeking to sell a 20%-25% stake to an international investor. "We hope to reduce our debt ratio through private placement," Wang explained.
JetWorks Leasing entered into a comprehensive Aircraft Portfolio Management contract with TAIL Finance covering four MD-88s, six 757-200s and nine 767-300s, all of which currently are on lease.
Spanair yesterday confirmed that Chairman Gonzalo Pascual resigned in order to launch a full bid for the airline, which is owned by SAS, according to press reports from Madrid. Pascual is chairman of Grupo Marsans, the largest tourism conglomerate in Spain, and co-founder of Spanair. The airline also said that Gerardo Diaz Ferran, Pascual's business partner and a main shareholder in Marsans, resigned as CEO of Spanair and D.
United Airlines flew 9.18 billion system RPMs in September, down 0.8% from the year-ago month. Capacity dropped 1.7% to 11.44 billion ASMs and load factor was up 0.7 point to 80.2%. Delta Air Lines flew 9.79 billion system RPMs in September, up 7.8% from the year-ago month, against a 3.6% rise in capacity to 12.61 billion ASMs. Load factor rose 3 points to 77.6%. Northwest Airlines flew 6.24 billion consolidated RPMs in September, a 1.1% increase from the year-ago month. Capacity declined 1.7% to 7.45 billion ASMs and load factor rose 2.3 points to 83.7%.
Alitalia scheduled a board meeting for Oct. 8 during which it will discuss a report from Citi Group "regarding a survey of potential investors who are in a position to acquire control of the company."
EasyJet will open two new bases in France next year and invest €600 million ($849.5 million) to 2011 to reinforce its position as the country's "only significant low-cost airline" and its second-largest carrier. "With a low-cost penetration of 17% at half the European average [33%], France's air transport market still suffers from a lack of affordable, direct air links and therefore offers huge opportunities for easyJet," the LCC said.
EU transport ministers gave the European Commission a mandate to start negotiations with Canada on a comprehensive air transport agreement "aimed at establishing an open aviation area between the EU and Canada, opening market restrictions and achieving a high level of regulatory convergence." Currently, 17 of the 27 EU member states have bilateral aviation agreements with Canada but none "are in conformity with Community law," the ministers noted.
Island Air has managed to stay above the fray, at least for now, as skirmishes continue in the Hawaiian aviation market ( ATWOnline, Oct. 1). "There's been a total change of our operation," CEO Rob Mauracher told ATWOnline. "We've dropped the number of daily departures from 107 to 75 and we've let go staff down from 450 to 280. We've cut the fleet in half from 14 [37-seat Dash 8s] to seven.
SAS said it will initiate discussions with Bombardier regarding compensation of approximately SEK500 million ($76.7 million) for the costs and lost income incurred due to the three-week grounding of its Q400s, according to German news agency DPA.
Aer Lingus asked the European Commission to consider ordering Ryanair to reduce its stake, both EI and the EC confirmed yesterday. According to MarketWatch, EI accused the EC of failing to act within the EU merger regulations by allowing Ryanair to keep its sizable stake in Aer Lingus despite its failed merger attempt. DG Competition spokesperson Jonathan Todd said EU competition authorities received the notice about failure to act two weeks ago and would respond by Oct. 17.
DayJet Corp. yesterday formally launched what it described as the world's first "per-seat, on-demand" jet service within Florida using PW600-powered Eclipse 500 very light jets. DayJet, which said it has more than 1,500 members, initially is offering same-day travel among Boca Raton, Gainesville, Lakeland, Pensacola and Tallahassee with VLJs accommodating two pilots and three passengers. Airline service between those cities typically involves a connection ( ATWOnline, June 15, 2006).
SAS Group will sell its 55% holding in Spanish ground handling services company Newco Airport Services to Teinver, which now will hold 100% of Spain's second-largest handling concern. SAS said the transaction value and positive effect on net debt and cash for the company is SEK400 million ($61.4 million).
Cathay Pacific Airways today will place its first 777-300ER into service between Hong Kong and Seoul Incheon. The first of 23 ordered by CX will transition to long-haul routes next month and is scheduled to fly to New York JFK on Nov. 15, expanding the route into a thrice-daily service. CX will take a total of five -300ERs this year, five in both 2008 and 2009, three in 2010 and five in 2011. It currently operates 89 passenger aircraft and 19 freighters.
