Northwest Airlines received final US Bankruptcy Court approval of its reorganization plan Friday and said it will exit Chapter 11 on May 31, ending a 20-month restructuring process in which it slashed annual expenses by $2.5 billion including $1.4 billion in annual labor costs.
Sichuan Airlines and TransAsia Airways of Taiwan are in negotiations to launch a new carrier based in Shanghai, according to Lin Xiaoxin, president of Goldsun Group, TransAsia's biggest shareholder.
After several years of improved performance, British Airways Friday reported its first quarterly loss in two years as well as a 34.9% decline in consolidated net profit to £304 million ($600.8 million) for its fiscal year ended March 31, and admitted it has set aside £350 million to settle fines and claims relating to alleged price-fixing on long-haul passenger and cargo fuel surcharges.
SITA and China Southern Airlines reached an agreement under which the carrier will employ the IT service provider's integration platform to enhance its e-ticketing and global distribution capabilities. CZ CIO Hu Chenjie said SITA's solution can optimize the airline's IT capability and help it grow into one of the top carriers in Asia, noting the significance of SITA's worldwide GDS reach. CZ will link SITA's solution with the Chinese GDS monopoly run by Travelsky and other Chinese airlines.
Airline Partners Australia dropped a bombshell on Qantas stockholders yesterday by announcing that is not going to make another bid for the airline, which some investors reportedly counted on when they rejected APA's A$5.45 ($4.52) per share offer. At the same time, Chairman Margaret Jackson, who backed APA's effort, reportedly announced her intention not to seek reelection at November's annual meeting.
Citing the domestic market's "slow revenue growth and excess capacity," United Airlines yesterday announced it will reduce 2007 domestic mainline ASM growth by around 2% from previously planned levels. "We believe removing marginal capacity is an appropriate response" to the sluggish domestic trends, Executive VP and Chief Revenue Officer John Tague commented.
TAP Portugal plans to expand its African and Brazilian services this summer as it adds three former Austrian Airlines A330-200s to its fleet, CEO Fernando Pinto told ATWOnline in Copenhagen this week. A fourth aircraft may follow but no decision has been made ( ATWOnline, Dec. 12, 2006). Increased frequencies to Luanda, Brasilia and potential nonstop services to Maputo, Johannesburg and an eighth Brazilian destination are in the offing, Pinto said.
AirTran Holdings extended its tender offer to Midwest Air Group shareholders to June 8 following Wednesday's expiration, the third time it has pushed back the deadline on a bid that repeatedly has been rejected by the Milwaukee-based carrier since it first was made public last December. Meanwhile, Midwest strengthened its position by entering into a codeshare agreement with longtime rival Northwest Airlines.
Icelandair Group's first-quarter loss more than doubled to ISK1.23 billion ($19.5 million) from ISK588 million in the year-ago quarter as the expanding airline invested in network growth, aircraft introduction and training. The company said the result was "in accordance with our plans" and that it still expected to surpass the ISK2.62 billion pro forma profit earned in 2006. Icelandair Group split from investment firm FL Group last November ( ATWOnline, March 2).
WestJet flew 936.5 million RPMs in April, up 23% on the year-ago month. Capacity climbed 16% to 1.13 billion ASMs and load factor rose 4.3 points to 82.8%.
Southwest Airlines, following up on its announcement that it will configure its entire fleet for RNP ( ATWOnline, May 9), announced this week an agreement with Naverus to "develop and implement [RNP] tailored approach and departure procedures at each of the airports Southwest serves." Executive VP and Chief of Operations Mike Van de Ven said, "We recently commissioned Naverus to illustrate the benefits of RNP for Southwest Airlines.
Northwest Airlines moved closer to emerging from Chapter 11 after a US Bankruptcy Court judge this week approved a $5 million settlement between the airline and a shareholder group that opposed the reorganization plan that is expected to receive court approval soon, clearing the way for next month's exit ( ATWOnline, May 10).
Southwest Airlines signed a 10-year distribution agreement with Galileo, the second-largest GDS in the US, and will begin participating in the system later this year after technical work is completed.
Copa Holdings, parent of Panama's Copa Airlines and Colombia's Aero Republica, reported a first-quarter net profit of $48.6 million, up 50.5% over the $32.3 million posted in the year-ago period, on a 26.6% jump in revenue to $242.7 million.
SAS Scandinavian Airlines will unveil a new long-term plan next month called Strategy 2011 that will outline its future fleet and efficiency goals. CEO Mats Jansson, who took the helm Jan. 1, told ATWOnline in Copenhagen this week that the plan will focus on "cutting costs further, planning growth for the future and improving the structure of our nine SAS airlines." It will target €2.7 billion ($3.66 billion) in cost savings within five years, according to press reports. But an improved cost structure could be undermined by labor unions, Jansson warned.
HNA Group, parent of Hainan Airlines, revealed that it is preparing to launch an aircraft leasing company with AVIC II, with which it reached a strategic partnership agreement ( ATWOnline, May 4). HNA noted that leasing is a "promising business" in China as few domestic companies have a foothold in the field.
Alitalia reported a pre-tax loss of €147.5 million ($199.9 million) in the first quarter, down slightly from a €156.6 million deficit in the year-ago period. Operating revenues, including income generated through Volare Airlines, rose 7.4% to €1.06 billion, with passenger revenue up 8% to €824.8 million. Operating expenses increased 5.3% to €1.11 billion and operating loss declined to €107 million from €129 million. RPKs grew 5.6% against a 2.7% increase in ASKs.
KLM named Executive VP-Corporate Center Jan Ernst de Groot as one of three MDs effective July 5. Other MDs are new President and CEO Peter Hartman ( ATWOnline, Nov. 28) and CFO Frederic Gagey.
Bmi Group Chairman Michael Bishop confirmed the March transfer of 51 slots at London Heathrow to British Airways for £30 million ($59.4 million) but said the transaction was not a sale, as reported in the mainstream press, but a condition of bmi's acquisition of BMED. "They weren't our slots," Bishop explained. "The deal was that BA had a right to cancel their franchise with British Mediterranean and operate the routes themselves in the case of financial default, which is what happened, and they also had a preemptive right on the slots."
Finnair said it will sell the last two MD-11s it owns to Aeroflot. The aircraft will be transferred in November 2008 and July 2009. Value of the sale is at least €30 million ($40.6 million). Finnair operates seven MD-11s, five of which are under leasing agreements that expire by the end of 2010, when it plans to have retired all MD-11s and operate a long-haul fleet of A330s and A340s.
China Southern Airlines and Air France KLM have entered into exclusive talks to launch a joint venture cargo carrier in China, AF KLM Vice Chairman and KLM President and CEO Leo van Wijk revealed recently in Beijing.
LAN Argentina pilots, maintenance personnel and ground employees staged a surprise strike beginning Monday that forced the cancellation of all of the carrier's domestic flights for the past two days. Labor leaders showed no signs of backing down yesterday. "The strike will continue," a pilots union representative told the Buenos Aires Herald. Management appeared to be caught off guard by the workers' absence and reportedly is seeking assistance from Argentina's Labor Ministry to resolve the dispute.
ABX Air, the Ohio-based all-cargo carrier that supports DHL's US air network, reported first-quarter net income of $4.3 million, down 46.9% from $8.1 million earned in the year-ago quarter, on a 22% drop in revenue to $288.1 million.
