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.
Aer Lingus, saying it is in "a regrettable position where we have no option," imposed an immediate pay freeze on all staff, citing labor unions' rejection of its "Program for Continuous Improvement" cost-saving initiative. Until it can implement the program, EI said it is forced to withhold a series of promised raises. CEO Dermot Mannion said, "Aer Lingus cannot continue to wait indefinitely to achieve essential savings. It is within this context that the decision to suspend increases has been taken." He said the carrier is open to talks with unions "at the earliest possible date."
Vueling Airlines, as expected ( ATWOnline, Oct. 2), cut its profit forecast yesterday and said it would not meet its 2007 financial targets. It is the LCC's second profit warning in three months. In a statement to the Spanish stock exchange regulator, the Barcelona-based carrier said EBITDAR could fall to a loss of up to €10 million compared with a previous profit forecast of €23-€42 million.
Aeroflot's first-half profit plunged 25.2% year-over-year to RUB3.2 billion ($128.6 million) according to Russian Accounting Standards, although the airline said that "in general, revenues continue to be higher than costs," RIA Novosti reported. Turnover climbed 21.7% to RUB33.5 billion against a 15.4% increase in costs to RUB31.9 billion as SU transported approximately 3.8 million passengers during the six-month period, up 17.9%. Separately, the Russian flag carrier announced that it is offering a 3% discount on tickets reserved or purchased through its website.
China Airlines added chairman to the title of President Chao Kuo-shuai, replacing Philip Wei, who resigned in the wake of the August engine fire and explosion on a CI 737-800 in Okinawa ( ATWOnline, Aug. 24), according to press reports from Taipei.
Vietnam Airlines confirmed yesterday that it will acquire 12 additional 787-8s following Boeing's Monday announcement that the carrier had promised to "move forward" with additional acquisitions ( ATWOnline, Oct. 2).
China Eastern Airlines is making preparations for the sale of a 24% stake to Singapore Airlines to be approved at a shareholders meeting to be held before the end of the year, Board Secretary Luo Zhuping said.
American Eagle Airlines will invest $10 million in its maintenance facility at Northwest Arkansas Regional Airport in Highfill. The carrier has operated an MRO facility at the airport since 2004 and said the investment will facilitate a move to a larger hangar and add 100 employees to a workforce that currently numbers 120. The expansion "will enable the airline to maintain more aircraft every night and to take on additional maintenance responsibilities," it said.
Spain's stock market regulator CNMV yesterday suspended trading in Vueling Airlines following reports that the Barcelona-based LCC might issue another profit warning in the coming days. The airline said in early August that it would not meet its 2007 targets after cutting its average second-quarter fare by 23% in response to aggressive pricing by competitors.
Sensis Corp. said its Airport Surface Detection Equipment, Model X system at Charlotte Douglas International is operational. ASDE-X uses a combination of surface movement radar, transponder multilateration and ADS-B sensors to provide controllers with an accurate picture of the location and identity of aircraft and vehicles on the airport surface.
Airbus yesterday announced that Vietnam Airlines signed an MOU for acquisition of 10 A350-900 XWBs and 20 A321s, while Boeing acknowledged that the carrier "has indicated its plan to move forward with additional [787] procurements."
Megadata announced that Kansas City International purchased a subscription to PASSUR Pulse, which will help increase its capture of landing fee revenue.
Turkish Airlines CEO Temel Kotil told ATWOnline in Istanbul that THY's heavy investment in new routes and aircraft finally is paying off with figures he called "nice and amazing." Revenue for the first semester rose 29% year-over-year to TRY2.2 billion ($1.81 billion), boosting the carrier's net profit to TRY125.4 million and its net margin to 9%, Kotil said. Load factor for the first nine months climbed 4 points to 73%.
American Airlines parent AMR Corp. yesterday said it will prepay $545 million in aircraft debt in the fourth quarter as part of an effort to "buttress its financial foundation," but the company continued to contend with criticism over its declining stock price. AMR has achieved six straight quarters in the black after years of losses, but its share price has decreased by about 50% since the beginning of the year. Citigroup yesterday downgraded it from "buy" to "hold" and lowered its per-share price target to $24 from $34.
IT WAS THE BEST OF TIMES AS CHINA'S FAST-GROWING ECONOMY generated strong market demand for her airlines in recent years. It was the worst of times as the airline industry at large was hit hard by a succession of external shocks after 9/11 such as SARS, Avian flu and the dramatic run-up in fuel costs since 2004. China's air transport industry also has struggled with the rise of new entrants and domestic competition and the aftereffects of the government-mandated consolidation that saw the big three carriers absorb many of the smaller regional lines.
COORDINATING THE PURCHASING activities of seven airlines within a group is no simple task, but it is one that David Rowell, head of purchasing-Aviation Flight & Ground Operations with TUI Travel PLC, believes is crucial for any large airline assemblage dealing with a complex supply chain.
