Surging passenger numbers and its entry into oneworld provided a significant financial boost to Royal Jordanian, which reported a JOD20.4 million ($28.6 million) profit in 2007 that represented a more-than-threefold increase from the JOD6.1 million earned the prior year. Operating revenue climbed 21.5% to JOD543 million, with operating profit nearly tripling to JOD33 million from JOD13 million in 2006. Passenger numbers rose 18% to 2.4 million and load factor was up 4 points to 71%.
Japan Airlines parent JAL Group in its FY2008-2010 Medium Term Plan raised its profitability target for its 2010-11 fiscal year to ¥96 billion ($932 million) from ¥88 billion in last year's Medium Term Plan. The decision to increase the target is owing to early successes in its ongoing restructuring program, which also contributed to its raising its operating profit forecast for the current year ending March 31 to ¥48 billion from ¥35 billion.
Emirates unveiled its initial A380 schedule yesterday, announcing that the aircraft will enter service on its Dubai-New York JFK route Oct. 1. Flights to London Heathrow follow on Dec. 1 and service to Sydney begins Feb. 1, 2009. Aircraft on these routes will seat 14 in first class, 76 in business and 399 in economy. "While we are still debating our first commercial A380 route, it has always been our intention to fly the aircraft on capacity-constrained trunk routes. The cities that we have now scheduled for A380 services bring our plans to fruition," President Tim Clark said.
Aeroflot on the occasion of its 85th birthday said it intends to double its annual passenger numbers by 2015 to approximately 16 million and acquire at least one European competitor. "Aeroflot's future growth will focus on the development of the route network between Europe and Asia involving strategic alliances, infrastructure improvements and an ambitious aircraft acquisition program," CEO Valery Okulov said.
Transaero took delivery of a 767-300ER and a 747-300, bringing its long-haul fleet to 17 aircraft and its total fleet to 32. It said it is planning to add "several" long-haul routes this year including Saint Petersburg-Tokyo Narita on April 24 and flights to the US from Moscow.
Air New Zealand, Air Transport World's Passenger Service Award winner for 2008, posted a 58% increase in net profit to NZ$115 million ($93.7 million) for the six months ended Dec. 31 on a 9.6% rise in operating revenue to NZ$2.33 billion.
LTU German Airlines MD Jurgen Marbach resigned on Feb. 29 and will be replaced by former dba MD Helmut Weixler. Marbach sold his 45% stake in LTU to airberlin in August.
CSA Czech Airlines posted a CZK111 million ($6.7 million) pre-tax profit in 2007, an impressive reversal from a CZK396 million loss the previous year and nearly three times greater than its forecast result under its OK 2006-2008 strategy.
Norwegian is taking its low-cost model long-haul and will launch twice-weekly flights from Oslo Gardermoen and thrice-weekly flights from Stockholm Arlanda to Dubai on Oct. 26 aboard new 737--800s. "We see no reason not to launch long-haul routes based on our low-cost model," CEO Bjorn Kjos said. "Our new fleet of 737-800s from Boeing enables us to look even further when analyzing future markets and we aim to make good use of the opportunities the extra range gives us."
Hainan Airlines is in crisis following the appeal of six pilots to the Haikou arbitration committee to have their labor contracts terminated. The six resigned at the end of last year, bringing to 20 the number of HNA pilots who have walked out since 2006. The carrier has accepted none of the resignations and their disputes remain unresolved. Luo Zulin, one of the six who asked for arbitration yesterday, said the resignations were a result of "frequent overtime" and "long delays in getting their salary."
Delta Air Lines took delivery of the first of eight 777-200LRs Friday, becoming the first US carrier to add the type to its fleet. Aircraft will enter service March 8 on Atlanta-Los Angeles and will operate ATL-Tokyo Narita the following day. President and CFO Edward Bastian said it was DL's first new delivery from Boeing in six years.
Finnair placed an order for three additional E-190s for delivery in 2010-11. "Through the order we have ensured the availability of capacity under present conditions. The airline manufacturers' order books are full for years ahead and we forecast that our European traffic will grow in the wake of Asian traffic," Senior VP-Finnair Scheduled Passenger Traffic Henrik Arle said. It took delivery of its seventh E-190 last week and will take one more this year plus two in 2009. It also has seven E-170s on order.
Jettainer signed a five-year agreement with United Airlines to provide unit load device management services including worldwide tracking and tracing, inventory fulfillment, ULD repairs and performance monitoring.
AAAE named Sean Broderick staff VP-external communications and Barbara Cook editor-Airport Magazine. Airbus appointed Harald Wilhelm CFO. AirTran Airways promoted Peggy Sauer-Clark to VP-inflight services. American Airlines tapped Robert J. Friedman as president-AAdvantage Marketing Programs and Mark E. DuPont as VP-airport services planning. Aon Risk Services welcomed Roger Maldonado as southeast region practice leader and Christopher Barnes as assistant leader. ASIG selected Carmine Testa as GM-JFK Terminal One ground services operations.
Dunlop Aircraft Tyres signed a joint venture with Hong Kong Aircraft Engineering Co. and Taikoo Aircraft Engineering Co. to build a retreading facility in Jinjiang, Fujian Province. Dunlop will command a 63% stake, HAECO will take 28% and TAECO will hold a 9% share.
On Jan. 1, for the first time in six years, the US airline industry began a new year with no carriers operating under bankruptcy protection. The 10 largest were all in the black in 2007 and the nine that had reported full-year income as of this writing posted a cumulative net profit of $5.88 billion. Costs finally have been reined in, with overall 2007 expenses growing just 3.2% and CASM rising a mere 0.4%.
Jervis B. Webb Co. reached a $41 million deal with Hoffman Construction Co. to install a new outbound baggage handling system with in-line EDS at Portland International. "Our first step is to install interim equipment in order to relocate existing airline baggage makeup operations to free up space for the new screening systems," Webb Airport Systems VP Ken Hamel told AP. Installation includes an automated baggage screening process and involves moving screening systems from the ticket lobby to the terminal's lower level.
AAR Corp. acquired Miami-based third-party MRO provider Avborne Heavy Maintenance and renamed it AAR Aircraft Services-Miami. Avborne offered maintenance checks, modifications, installations and painting services to commercial airlines, international cargo carriers and major aircraft leasing companies. Financial terms of the deal were not disclosed, but AAR will gain 226,000 sq. ft. of hangar space at Miami International and increase its overall MRO space by 22%.
Telair International will provide Boeing with its cargo-handling system for 747-8s including main deck and lower hold systems for the 747-8 freighter and lower hold systems for the 747-8 intercontinental. Features include control system networking and two-way communication between intelligent power drive units.
Merger talks between Delta Air Lines and Northwest Airlines apparently have stalled owing to a lack of progress in negotiations between the carriers' pilot groups.
VRG and Japan Airlines inked an interline agreement that will allow passengers to purchase single tickets for flights serving all destinations of both carriers. Passengers traveling under VRG's Smiles frequent-flier program will only accumulate miles on flights operated by VRG, formerly Varig.
Hawaiian Airlines parent Hawaiian Holdings reported net income of $7.1 million for 2007, reversed from a net loss of $40.5 million the previous year, on 10.7% boost in revenue to $982.6 million.
