Aloha Airlines yesterday confirmed press reports of a $15.1 million loss in the third quarter, widened from a $9.9 million deficit in the year-ago period. The carrier now has suffered a loss in each of the past 16 quarters, the Honolulu Star-Bulletin calculated. Third-quarter revenue rose 4.6% to $104.4 million, but higher fuel prices and lower fares continued to plague Aloha, according to President and CEO David Banmiller. Expenses climbed 5.1% to $116.1 million and operating loss deepened to $11.7 million from $10.6 million in the third quarter of 2006.
Despite rising fuel prices, Chinese commercial airlines posted a collective profit of CNY9.1 billion ($1.23 billion) in the third quarter ended Sept. 30, up 65.4% over the CNY5.5 billion reported in the year-ago period, according to CAAC statistics. Operating revenue rose 12.5% year-over-year to CNY73.57 billion against an 8.3% increase in operating expenses to CNY65.07 billion.
ANA signed an MOU yesterday with Tokyo-based international freight forwarders Nippon Express and Kintetsu World Express to establish a joint venture global business-to-business express delivery company with operations to start April 1. ANA will own the largest share of the yet-to-be-named company at 34%, according to a joint statement. Nippon Express and KWE each will own 28% and smaller unidentified forwarders will hold the remaining 10%.
Alitalia board once again delayed its decision regarding a negotiating partner for the Italian government's 49.9% stake in the carrier, this time to Friday, by which time it said it expects to have a recommendation from its adviser Citigroup.
Tiger Airways converted 20 A320 options, completing the firming of its 50-aircraft order (30 firm and 20 options) announced at the Paris Air Show ( ATWOnline, June 22). Aircraft will seat 180 passengers in an all-economy configuration. Tiger currently flies 12 A320s and will take eight more through 2009. The final aircraft now will be delivered in 2016.
Cebu Pacific Air ordered four more ATR 72-500s, converting options from an earlier order and bringing its firm commitment to 10 of the type. It still holds four options ( ATWOnline, May 25). The carrier said only about one-third of the Philippines' 75 airports can accommodate its A319/A320 fleet. The first 72-seat turboprop will enter service to Caticlan Feb. 29. Cebu will take delivery of six ATRs next year and four in 2009. An additional four A320s added next year will lift its fleet to 25 aircraft by year end.
CAE won orders for full-flight simulators and related CAE Simfinity training devices valued at more than C$126 million ($124.1 million) from Continental Airlines, US Airways, Etihad Airways, Air Algerie and Alteon Training. CO purchased a CAE 7000 Series 787 FFS and a set of CAE Simfinity training devices. US ordered two CAE 7000 Series A320 FFSs, one CAE 7000 Series A330/A340 FFS, nine CAE Simfinity Integrated Procedures Trainers and CAE Simfinity VSIMs for A320 and A330/A340 platforms.
Austrian Airlines Group carriers flew 1.41 billion RPKs in November, down 15.4% from the year-ago month. Capacity dropped 16.3% to 1.92 billion ASKs and load factor rose 0.8 point to 73.4%. Alaska Airlines flew 1.51 billion RPMs in November, a 7.6% increase from the year-ago month. Capacity rose 4.5% to 1.96 billion ASMs, lifting load factor 2.2 points to 76.7%. WestJet flew 923.5 million RPKs in November, an 18.3% increase from the year-ago month, against a 14.8% rise in ASKs to 1.2 billion. Load factor climbed 2.2 points to 75.6%.
Aviapartner Handling won a contract from Lufthansa and Swiss International Air Lines for provision of full handling services in Venice. The contract, effective Jan. 1, covers some 5,000 flights per year for both airlines combined.
Mesa Air Group will appeal to the US District Court in Hawaii after US Bankruptcy Court Judge Robert Faris denied last week's request for a new trial, the Honolulu Star-Bulletin reported. Faris had ordered Mesa to pay $80 million in damages to Hawaiian Airlines for using confidential information provided by Hawaiian when Mesa established its go! subsidiary ( ATWOnline, Nov. 21). In requesting a new trial, Mesa said it had discovered information that was not presented during the initial trial.
Lufthansa is considering placing two wet-leased PrivatAir A319LRs, which are outfitted with all-business-class cabins and fly out of Dusseldorf to Newark and Chicago O'Hare, on a new Beijing service beginning next summer, a source close to the carrier told ATWOnline. They would be the first all-business-class flights between Europe and China. Separately, LH will launch a weekly Frankfurt-Luanda service on April 1 aboard an A340-300. It will be LH's 15th African destination.
SAS Group, which is endeavoring to simplify and narrow its business to focus on its "core" activity of transporting passengers in northern Europe, conceded yesterday that it has been unable to reach a consensus on the future of its noncore subsidiaries. Decisions on the "future structure" of SAS Ground Services, SAS Technical Services and Spirit (terminal management within SAS Cargo) were postponed until at least Feb. 5, the next time SAS's board is scheduled to meet.
As Shanghai-based China Eastern Airlines' stake sale to Singapore Airlines draws near completion, Shanghai Airlines is planning to introduce a strategic investor of its own in order to boost its competitiveness.
EasyJet will establish a base at Manchester, building on the presence of GB Airways, which currently has two aircraft based at MAN operating on six routes. The LCC intends to add another three aircraft by 2010, although final plans will depend on the regulatory approval of its acquisition of GB ( ATWOnline, Oct. 26), which it expects by the end of January. It also plans to develop its base at Liverpool with an additional two aircraft by 2010.
China Eastern Airlines applied to the Chinese government to be allocated 40 of the 110 A320 family aircraft Beijing recently agreed to purchase from Airbus and is contemplating ordering a similar number of 737s. It also plans to give Singapore Airlines executives significant management roles following next month's expected closing of SIA's and parent Temasek's 24% stake purchase, according to Chairman Li Fenghua.
News from Travel Technology Update: Amadeus will provide Virgin Blue with distribution, e-ticketing and interline solutions that work alongside the carrier's existing passenger services system, Navitaire's OpenSkies, while in addition, V Australia, Virgin Blue's new long-haul airline, will adopt the Amadeus Altea Customer Management System. The standalone solutions for the company's short-haul operations will manage connectivity on behalf of Virgin Blue's interline and GDS partners.
Virgin America lost $34.8 million during the third quarter, its first full quarter of operation, according to statistics released by the US Dept. of Transportation and cited by Dow Jones. Operating revenues totaled $16.2 million against $51.6 million in expenses.
In anticipation of the decision of the Alitalia board expected today on the bidder with which AZ will enter exclusive talks for sale of the government's 49.9% stake, Air France KLM and Air One each outlined their plans for the loss-making flag carrier.
Republic Airways Holdings board authorized the purchase of up to $100 million of the company's common stock over the next 12 months. "Our business model is structured to provide Republic with long-term, secure and predictable earnings and cash flows regardless of whether or not the major airlines undertake consolidation," Chairman, President and CEO Bryan Bedford said. RAH is scheduled to take delivery of 31 aircraft by the end of the 2009 first quarter.
Asiana Airlines will reach "a final decision soon" on fleet expansion, a spokesperson confirmed to ATWOnline. The airline is considering 787s, 747-8s, A350 XWBs and A380s. The order could be for as many as 20 long-haul aircraft. It is unclear if it will be mixed or will focus on one type.
AWAS Friday announced an order for 31 firm 737NGs plus 19 purchase rights, raising to 39 the number of aircraft the lessor has on order with Boeing. The order is worth $2.3 billion at list prices. President and CEO Franklin Pray called the deal "an appropriate way for AWAS to finish off what has been a very exciting and redefining year for the company . . .This time a year ago AWAS would not have been in a position to place an order of this magnitude." Based in Dublin, it currently owns and manages 315 aircraft.
Norwegian flew 459 million RPKs in November, up 45% from the year-ago month, against a 31% rise in ASKs to 604 million. Load factor rose 7 points to 76%.
Engine Alliance GP7200-powered A380 received type certification from US FAA and EASA, the GE Aviation/Pratt & Whitney joint venture announced. The GP7200 accumulated 2,855 engine flight hr. along with extensive ground testing and is scheduled to enter service next year with Emirates.
While JetBlue Airways executives continued to insist that Lufthansa's eye-opening $309.6 million investment in the New York-based LCC was nothing but a financial transaction, Lufthansa revealed Friday that it may have more strategic goals in mind. "They're a premium product supplier. They have a stronghold along the East Coast that we wouldn't find elsewhere, and they're very complementary to our routes and our alliance partners," LH CEO Wolfgang Mayrhuber was quoted as saying at a Friday news conference.
The grounding and disposal of its 27 Q400s continues to be a major issue at SAS Group, which is faced with choosing a replacement while pursuing compensation from Bombardier and deciding what to do with the employees charged with operating the turboprops, CEO Mats Jansson said during last week's Star Alliance meeting in Beijing.
