Cyprus Airways reported an €11.7 million ($16 million) loss in the first six months of 2007, narrowed from a deficit of €40 million in the year-ago period that included the results of charter subsidiary Eurocypria Airlines, which was sold to the Cypriot government last year ( ATWOnline, July 12, 2006). Revenue fell 15% year-over-year to €126.5 million but rose 12.3% if Eurocypria's contribution is excluded from the comparison figure. Expenses declined 21.6% to €135.9 million.
Philippine Airlines reported a "better than expected" $34.5 million profit in the first fiscal quarter ended June 30, double the $17.2 million earned in the year-ago period. crediting its "ability to capitalize on strong passenger demand during this peak travel quarter" for the result.
Following three months of waiting during which trading in its stock was suspended, China Eastern Airlines finally received approval from the State Council to sell a stake to Singapore Airlines, a CEA insider told ATWOnline yesterday. "We expect to sign a strategic cooperative contract with SIA and announce the relevant details of the deal on Sept. 2," the source said, adding that the carrier's stock will resume trading the following day.
Kuwait Airways' lease deal with ALAFCO for 12 787s and seven A320s, worth a reported $3 billion, has been canceled because the airline was unable to secure government approval, the lessor said in a filing with the Kuwait Stock Exchange cited by numerous press reports.
Alteon Training said it will open a training center at Shanghai Pudong by year end that eventually will house China's first 787 full flight simulator and a 757/767 FFS for center partner Shanghai Airlines and "other regional operators." The 787 simulator will be ready in the first half of next year.
Alitalia will end up in foreign hands, Unicredito Italiano CEO Alessandro Profumo predicted in an interview with Il Sole 24 Ore, in which he blamed Italian protectionism. "We've defended Alitalia so well that it will disappear as an Italian company since thanks to protection, more protection, and yet more protection, the company is no longer able to stand on its own feet," he said.
Australia and South Korea announced an expanded air services agreement under which Korean carriers initially will be allowed to operate up to 8,500 seats each way each week to Brisbane, Sydney, Melbourne and Perth, up from the previous limit of 7,500. Capacity to other Australian airports is unrestricted, and Australian airlines will be able to operate the same number of seats to Korea. The deal provides for a further 1,000-seat increase when the 8,500 limit is reached. All restrictions on cargo services were removed.
Hf. Eimskipafelag Islands, formerly Avion Group, reached agreement for the disposal of its remaining 49% holding in Avion Aircraft Trading to Artic Partners. Artic, which is controlled by AAT Chairman Hafthor Hafsteinsson, AAT board member Arngrimur Johannsson and other AAT managers, acquired an initial 51% last October. Eimskip said sales proceeds amounted to $28 million and the profit on disposal before tax is estimated to be $24 million.
SpiceJet reported a INR185.4 million ($4.5 million) profit in the quarter ended June 30, reversed from a pro forma INR36.8 million loss in the year-ago period. The Indian LCC reconfigured its fiscal calendar to a year ending March 31 from a year ending May 30. The year-ago figures presented with the most recent results were not audited or reviewed, it said. Revenue soared 77.4% to INR3.11 billion while expenses climbed 66.6% to INR2.9 billion. Pre-tax result swung to a INR188.7 million profit from a INR34.2 million loss.
News from Travel Technology Update: American Airlines took Google to court over the sale of its keywords to other companies for use in Google searches. In its complaint, filed in U.S.
EgyptAir signed a contract for five firm A330-200s plus three options, Airbus announced. The airline said the purchase will allow it "to continue its impressive route network growth." No engine choice or delivery schedule were announced.
Turkish Airlines yesterday reached a pay agreement with the Hava-Is union, which represents thousands of aviation workers and had voted to strike following an earlier collapse in negotiations, the government told reporters in Ankara. Separately, THY will launch thrice-weekly services from Istanbul Ataturk to Johannesburg and Cape Town on Sept. 17 aboard A340-300s.
Hawaiian Airlines flew 728.5 million RPMs in July, up 16.8% on the year-ago month. Capacity rose 19.2% to 833.3 million ASMs, dropping load factor 1.9 points to 87.4%.
Malaysia Airlines recorded a second-quarter net profit of MYR113 million ($32.4 million), improving its performance from a MYR177 million loss a year earlier and marking its fourth straight profitable quarter since the February 2006 launch of its Business Turnaround Plan ( ATW, May 2007).
Kang Pacific Airlines will become the United Arab Emirates' fifth airline. Established by Indian aviation tycoon Paul Kang, the new carrier will be based in Fujairah and plans to start operations in October, Gulf News reported. The LCC will fly to the Philippines, Sri Lanka, Bangladesh, the UK and India. The paper said Kang will invest $10 million of his own money in the airline, which will start with two leased DC-10s and one 747.
ILFC announced the following lease contracts: Bangkok Airways for one new A319-100 for six years with delivery in January 2009; Zoom Airlines for one used 757-200ER for four years and eight months with delivery in February 2008; Air Austral for two new 777-300ERs for eight years each with delivery in February and March 2009; Kenya Airways for one new 737-800 for eight years with delivery in October 2008; Eos Airlines for one used 757-200ER for five years with delivery in April 2009; Aerolineas Argentinas for one used A340-300 for six years with delivery this October; Iberia for one used
Ryanair's effort to simplify the check-in and boarding process, cut costs and increase ancillary revenue will include a new £2/€3 ($4.00-$4.07) fee charged to each person using an airport check-in desk beginning Sept. 20.
Volga-Dnepr Group, Motor Sich and Antonov Design Bureau signed an agreement at the MAKS air show outside Moscow last week to resume production of An-124-100 freighters and modernize existing aircraft of the type. VD and Motor Sich, a Ukrainian company, last winter announced the formation of a joint venture company to manage the re-launch of the An-124-100F ( ATWOnline, Feb. 8). ADB said last week it will join the venture, known as GLA Cargo Aircraft. Production timelines were not announced.
Austrian Airlines Group carriers flew 1.99 billion RPKs in July, down 19.2% on the year-ago month. Capacity fell 18.7% to 2.5 billion ASKs and load factor dropped 0.4 point to 79.5%. Jat Airways carried 186,480 passengers in July, up 11% from the year-ago month. Load factor soared 8.5 points to 77%.
Delta Air Lines will launch daily Salt Lake City-Paris Charles de Gaulle service starting June 2, 2008. The 767-300ER flight will be the first transatlantic operation ever from the Utah capital, Delta said. The aircraft will have capacity for up to 214 passengers and 5 tons of cargo.
Alitalia flew 3.75 billion RPKs in July, the same number as the year-ago month. Capacity fell 0.1% to 4.72 billion ASKs, lifting load factor 0.1 point to 79.5%. WestJet flew 1.05 billion RPMs in July, up 17% on the year-ago month. Capacity grew 16% to 1.27 billion ASKs and load factor rose 1.1 points to 82.6%. Air New Zealand reported a 6.7% year-over-year growth in July passenger numbers and an 11.4% rise in RPKs to 1.4 billion. Load factor was up 6.2 points to 82.2% and yield increased 0.2%.
Alaska Air Group said in a filing to the US Securities and Exchange Commission that it expects to incur a full-year operating loss from its regional operation in excess of the $13.2 million suffered in the first six months, "but not a multiple of it." Horizon Air capacity is expected to increase 15%-16% in the third quarter, with unit cost falling 6%-7% to 16.7-16.8 cents. Revenue will exceed expenses during the period, but AAG expects costs to surpass revenue in the fourth quarter.
Norwegian will open its seventh base at the new airport in Rygge just south of Oslo. It initially will launch operations with a 737-800 on Feb. 14, with a second aircraft entering service March 13. It will serve Alicante, Athens, Barcelona, Belgrade, Bergen, Budapest, Istanbul Sabiha Gokcen, London Stansted, Malaga, Marrakech, Palanga, Szczecin, Valencia and Warsaw from the airport. "We expect further expansion, both in the form of new routes and more planes," CEO Bjorn Kjos said, adding that RYG will be "state of the art. .
