SkyWest Airlines is interested in future acquisitions, but it has no plans to bid on Delta Air Lines subsidiary Comair, Chairman and CEO Jerry Atkin said. "It would be a stretch. Consolidation in Delta is not one we would have an interest in," he told ATWOnline. "There are other regionals out there." The largest regional carrier in the US, SkyWest operates a fleet of 437 aircraft in partnership with DL, United Airlines and Midwest Airlines.
Japan Airlines Group released its latest corporate plan covering the April 1, 2008-March 31, 2009, period and said the expansion of Tokyo's downtown Haneda Airport, downsizing of the fleet and the introduction of more premium products are pivotal. It plans to operate flights between Haneda and Beijing Nanyuan during this summer's Olympics as well as to increase the number of international "charter" flights from the airport. JAL currently operates flights from Haneda to downtown airports in Seoul (Gimpo) and Shanghai (Hongqiao).
Korean Air posted 2007 net income of KRW11 billion ($11.7 million), a 97.1% drop from KRW383 billion earned in the prior year that it attributed to high fuel costs and the won's weakness. KE said it is hopeful new surcharges aimed at offsetting fuel costs and a surge in demand related to this year's Beijing Olympics will help it turn around its financial fortunes in 2008. Operating revenue for 2007 rose 9.1% to KRW8.8 trillion while expenses increased 7.8% to KRW8.18 trillion, producing operating income of KRW637 billion, up 28% over KRW497 billion the prior year.
AirTran Airways will curb its growth for 2008 by delaying aircraft deliveries or selling some aircraft, President and CEO Robert Fornaro said at last week's Raymond James Growth Airline Conference in New York. The carrier is forecasting a growth rate of 10% for 2008, down from 19% last year. "You make better decisions when you have fewer airplanes," he said. AirTran will continue to expand its network, Fornaro said, pointing to its recent move into Midwest Airlines' Milwaukee hub. "If you put lower prices into Milwaukee, the market will grow substantially.
US Airways named Northwest Airlines VP-Inflight Services Suzanne Boda as senior VP-East Coast, international and cargo operations and American Airlines New York LaGuardia MD Robert Ciminelli as VP-Philadelphia operation.
Alitalia said last week that it has released an unidentified number of summer slots at Milan Malpensa as it moves toward consolidating its operation in Rome ( ATWOnline, Feb. 1). Milan airport operator SEA reportedly countered with a lawsuit seeking €1.25 billion ($1.86 billion) in damages, which SEA Chairman Giuseppe Bonomi said was based on the "serious damage" AZ's decision would cause and the alleged violation of a hub agreement, Thomson Financial reported.
JetBlue Airways and Aer Lingus unveiled details of their strategic partnership Friday, nearly one year after the alliance initially was revealed ( ATWOnline, Feb. 7). The tie-up will take effect April 3 and will feature a booking engine on EI's website that will allow customers to purchase tickets on EI flights to the US and JetBlue services from New York JFK in one transaction.
AirAsia, Tiger Airways and Jetstar Asia launched service Friday on the previously protected Singapore-Kuala Lumpur route, propelling the region's commercial aviation industry into a new era of liberalization.
Air Astana said it enjoyed record growth in 2007 as revenue rose 48% year-over-year, passenger numbers increased 46% to 2.1 million and capacity climbed 42% to 6.5 billion ASKs. It took delivery of two 767-300ERs, two A320s and two A321s, lifting its fleet to 18 aircraft ( ATWOnline, June 1, 2007). Late last year the airline placed firm orders for three 787-8s and six A320s ( ATWOnline, Jan. 3).
Singapore Airlines reported net income of S$590 million ($416.1 million) for its fiscal third quarter ended Dec. 31, essentially flat compared to S$589.2 million earned in the year-ago period, on a 13.2% boost in revenue to S$4.28 billion. SIA noted that the prior fiscal year's third-quarter profit benefited from a S$198 million one-time gain owing to its sale of a 35.5% stake in Singapore Aircraft Leasing Enterprise, adding that the recently ended quarter's income was a 50.7% increase if that gain is excluded.
Southwest Airlines will continue its efforts to tap into the business travel market following the introduction of its Business Select product, CEO Gary Kelly said at last week's Raymond James Growth Airline Conference in New York.
THROUGHOUT HISTORY, THE FORTUNES OF NATIONS have been linked to access to trade and control of trade routes, with prosperity not always going to the strongest but to the most flexible. In the 21st century with globalizationand open skiesin full swing, airlines in the Persian Gulf region are not only financially strong but flexible and because of their geographic location they can offer passengers and freight forwarders the fastest routings between Southeast Asian and European city-pairs.
Air New Zealand appointed Stephen Jones GM-Domestic Airline and Glen Sowry GM-Tasman Pacific Airline. Airports Council International tapped Jeff Letwin as chair of the legal committee. Air Transport Assn. elected Northwest Airlines President & CEO Douglas M. Steenland as chairman of its board of directors. Alaska Airlines named Gary Beck VP-flight operations and Elizabeth Ryan MD-labor relations. American Airlines selected Fred Cleveland as VP-base maintenance and Kurt Stache as VP & general sales mgr.
OVER THE PAST FEW YEARS, CHINA'S major carriers have undergone a transformation in their attitude toward foreign competitors. Their long-held pessimism and concern, perhaps best understood in the local saying "wolves are coming," has been replaced by a recognition that seeking cooperative partners among counterparts abroad is a way to boost competitiveness and create a win-win situation.
China Eastern Airlines signed an aircraft purchase agreement with Boeing for 30 737NGs yesterday in Shanghai, according to a statement released by the Shanghai Stock Exchange. Boeing did not acknowledge the specifics of the order, saying only that CEA "announced the selection of additional" aircraft and that it will issue a statement "when the order process is completed." The deal is worth CNY13.98 billion ($1.94 billion) at list prices, but CEA said it will pay less.
The Alitalia board met this week to approve its 2008 budget and said it would look to raise about €750 million ($1.1 billion) over the next five months in order to maintain its cash in hand "at adequate operating levels" as speculation swirled in Italy about the effect that the fall of Prime Minister Romano Prodi's government will have on AZ's merger with Air France KLM.
Scotland's City Star Airlines announced Wednesday that it has ceased operations until further notice. The airline said in a statement that it was forced to ground one of its four Dornier 328s following a November collision with mobile passenger steps. According to press reports, a second aircraft was impounded at Aberdeen Airport Wednesday. "Unfortunately, the [November] incident has had a major knock-on effect and we have simply not been able to recover from this," MD Runar Fossadal Arnason said. City Star served three Norwegian destinations and operated charter services.
ANA Group net profit for the fiscal third quarter ended Dec. 31, 2007, climbed 33.9% to ¥12.4 billion ($115.9 million) from ¥9.3 billion in the year-ago period. Revenue fell 0.9% to ¥378.2 billion against a 2% decline in costs to ¥351.3 billion, resulting in a 17.2% lift in operating profit to ¥26.8 billion from ¥22.9 billion. In the quarter, the air transport segment reported a ¥24.5 billion operating profit, up 28.9% from the year-ago period's ¥19 billion.
Malaysia Airlines unveiled a five-year growth plan dubbed BTP2 (Business Transformation Plan 2) in Kuala Lumpur yesterday, targeting a minimum full-year net profit of MYR1.5 billion ($463.6 million) by 2012.
VLM Airlines carried 745,781 passengers last year, up 9% over 2006. Scheduled passengers rose 6% to 697,781 while the number flying on charter or ACMI flights climbed 62% year-over-year.
Austrian Airlines Group announced that Saudi investor Mohamed bin Iassa Al-Jaber is in talks with airline management about a plan to invest €150 million ($221.7 million) in the flag carrier, which is intent on protecting its independent status. Discussions regarding an investment are ongoing and there are no results to report, AAG said. Al-Jaber owns two luxury hotels in Vienna. According to financial sources, AAG's value on the stock exchange is nearly €450 million.
Virgin Group is in talks with a potential Russian partner about launching an airline in the market, Chairman Richard Branson said in Moscow yesterday. "Now is the time for Virgin to come to Russia," he said at a news conference during an investor conference he is attending. His remarks were reported widely. "We are in discussions with a Russian partner," he said. "We will announce in three months who that partner will be." Branson added that it would be better to do "something from scratch" rather than partner with an existing carrier.
Midwest Airlines parent Midwest Air Group said yesterday that the US Dept. of Justice has completed its investigation of the company's acquisition by TPG Capital and Northwest Airlines, clearing the way for the sale's closing as early as last night ( ATWOnline, Dec. 10, 2007). Trading of Midwest Air Group stock on the American Stock Exchange concluded as of the close of trading yesterday. "Shareholders of record. .
L'Avion celebrated its first anniversary this month and said it transported more than 34,000 passengers in its first year, with a 79% load factor achieved last month. It will introduce a second 757-200 configured with 90 business class seats on Jan. 20, when it will operate Paris Orly-Newark.
