Aloha Airlines reported a first-quarter net loss of $24.2 million, widened from a deficit of $20.3 million in the year-ago quarter. Revenue was down 10% to $88 million, a spokesperson confirmed to ATWOnline. The privately held airline has been locked in a taxing fare war with Mesa Air Group subsidiary go!, which entered the inter-island market last year.
Low-cost carriers will fly approximately 25% of seats available in the Asia/Pacific region within five years, double their current penetration, thanks to the raft of new orders placed at last week's Paris Air Show, the Centre for Asia Pacific Aviation estimated. AirAsia, Tiger Airways, and Mandala Airlines each placed significant A320 orders while Lion Air ordered 737s. CAPA said that the region's LCCs will see their combined fleet grow from about 300 aircraft with 45,000 seats to approximately 870 aircraft with 170,000 seats by 2012, representing a nearly fourfold increase.
ATR and Malaysia Airlines signed a contract for 10 ATR 72-500s plus options for 10. The deal is valued at $183 million. The aircraft will be used to expand MAS subsidiary FireFly and to establish hubs in Penang, Subang, Yohoar Bahaurau and Kota Kinabalu. They gradually will replace F50s. Deliveries begin next year. The deal also marks the sale of ATR's 900th aircraft.
Virgin Group head Richard Branson may be moving to take a stake in new long-haul startup AirAsiaX, according to India's Economic Times. The paper quotes both industry officials and Dow Jones and states that Branson may buy the stake from Tony Fernandes and Kamarudin Meranum, who control 60% of the FlyAsianExpress holding company. AirAsiaX plans to launch low-cost flights from Malaysia to India, China and Europe later this year and ordered 10 A330s at last week's Paris Air Show ( ATWOnline, June 20).
Lufthansa Technik and Rolls-Royce concluded an agreement enabling the engine-maker to offer On-Wing Care services at Frankfurt and remote sites with the assistance of LHT's Airline Support Teams AST Engines. Services range from video borescoping and blade changes up to complete module changes or installation of accessory gearboxes. Through the joint initiative, LHT is extending the scope of its Airline Support Teams AST Engines to include the Trent family.
Brazilian President Luiz Inacio Lula da Silva took to the airwaves yesterday to assure citizens that the country's ATC system, which has been beset by extensive delays and cancellations over the past week owing to a controller slowdown, is safe and back to normal operations.
Le Bourget may have emptied out but the Paris Air Show still is going on for Airbus, which yesterday announced yet another major order, this time for 35 A319s for easyJet. The converted options, scheduled for delivery in 2011 and 2012, lifted the LCC's Airbus firm order book to 120 aircraft worth more than $7 billion at list prices. The newly ordered A319s will be powered by CFM-56s. EasyJet holds purchase rights for a further 88 Airbus aircraft. It said the order will support its intention to carry 65 million passengers per year and deploy 229 aircraft by 2012.
Northwest Airlines, which emerged from Chapter 11 protection at the end of last month ( ATWOnline, June 1), admitted yesterday that "crew shortages" are leading to numerous flight cancellations. It declined to say how many flights have been grounded or to confirm reports that several hundred flights have been cancelled over the past four days.
Component Control's Quantum Control enterprise resource planning software was selected by Embraer as its global maintenance, repair and overhaul management solution.
ANA and Tokyo-based Overseas Courier Service announced they jointly will develop a new international express delivery service called BEAM that will focus primarily on Asian deliveries. BEAM initially will offer overnight express delivery from Osaka and Tokyo to Shanghai by using ANA cargo flights on the Tokyo Haneda-Osaka-Shanghai route and later will expand to other Chinese cities.
Alaska Air Group last week confirmed its concerns about the second quarter ( ATWOnline, May 24), revealing in a filing to the US Securities and Exchange Commission that May mainline passenger unit revenue fell 2.3% year-over-year on a 1.8% decline in yield. April passenger RASM had dropped 2.8% from the year-ago month. In addition, the company said advance bookings for June indicate a 1-1.5-point year-over-year drop in load factor.
ACE Aviation Holdings, parent of Air Canada, agreed to sell a 70% interest in its wholly owned maintenance, repair and overhaul subsidiary ACTS to an investment consortium that includes Sageview Capital and KKR Private Equity Investors in a transaction valuing ACTS at approximately C$975 million ($912.2 million).
VLM Airlines denied rumors that it is in takeover talks with Air France KLM. De Telegraaf reported last week that the regional carrier, the largest operator at London City, was negotiating a possible sale to AF KLM.
Martinair will initiate a restructuring program that includes ending European short-haul passenger operations and the start of negotiations to bring the company under a single shareholding, preferably KLM. Martinair reported a €7 million ($9.4 million) loss in 2006, reversed from a profit of €14 million the prior year.
Seventeen months after taking over Swiss International Air Lines as part of the AirTrust joint venture, Lufthansa last week announced it will acquire all remaining shares in the carrier effective July 1.
American Airlines said it expects second-quarter mainline passenger RASM to increase 3%-4% over the 10.58 cents posted in the year-ago quarter. That figure marked an 11.7% year-over-year improvement. Consolidated passenger unit revenue is expected to climb 2.2%-3.2% year-over-year. Mainline unit cost is expected to be 11.14 cents for the quarter and the full year. AA reported CASM of 10.85 cents in the 2006 second quarter. Nonfuel CASM is expected to come in at 7.64 cents for the quarter and 7.67 cents for the full year.
KLM appointed Paul Elich executive VP-ground services effective July 1. He will succeed Frank de Reij, who will become project leader-procurement for Air France KLM. Marjan Rintel will succeed Elich as VP-hub operations.
Canada's Porter Airlines, whose launch from Toronto City Centre Airport last October caused some consternation at Air Canada Jazz, this week won official clearance from the US Dept. of Transportation to expand its regional service south of the border.
Enviro.aero is the name of a new industry-supported website that launched two weeks ago under the umbrella of the Air Transport Action Group. The site, which has received financial support from IATA, ACI, air navigation service providers and airframe and engine OEMs contains information about industry efforts to reduce emissions and airlines' overall impact on the environment.
Italian government extended the bid deadline for its stake in Alitalia to July 12 from July 2 following this week's decision to allow US equity firm MatlinPatterson back into the auction ( ATWOnline, June 20). Meanwhile, Air One partner Intesa Sanpaolo said it was open to accepting new partners into the consortium, Reuters reported. It was unclear whether MatlinPatterson was in line to join the Air One group or would bid independently.
Gol, which operates the LCC of the same name as well as the recently acquired Varig, issued updated second-quarter and full-year guidance this week that reflects the difficulty of integrating the floundering flag carrier.
As one of the few profitable Chinese LCCs, Spring Airlines maintained impressive growth during the first half its fiscal year, posting an 85% rise in net profit for the six months ended April 30 and a 27% year-over-year increase in operating revenue to CNY430 million ($56.4 million). The profit figure has not been released. As the only Chinese airline that opts to sell tickets directly from its own website rather than through the Chinese Travelsky GDS and ticket agents, Spring enjoyed a 235% lift in direct sales revenue during the fiscal semester to CNY230 million.
United Airlines yesterday said the computer outage that disrupted its schedule for 2 hr. Wednesday morning was the result of employee error, according to a statement from UA executives to employees cited by the Associated Press. Nearly 300 flights were delayed or canceled when the Unimatic system shut down after "an employee made a mistake and caused the failure of both Unimatic and our backup system," COO Pete McDonald said without elaborating, according to AP.
