Southwest Airlines yesterday introduced a "business select" fare category that will provide passengers paying more for tickets with guaranteed early boarding, more frequent-flier credits and a free cocktail, a move that is part of the LCC's ongoing effort to alter its traditional single-class service to attract more business travelers.
Schiphol Group appointed Maarten de Groof chief commercial officer effective Feb. 1. Silver Air of the Czech Republic named Steffen Harpoth as its new CEO.
A combination of rising demand and higher yields helped boost Emirates to "another record performance" in the first fiscal semester ended Sept. 30 as the ambitious airline reported net profits of AED2.36 billion ($642.6 million), double the AED1.18 billion earned in the year-ago period.
Canada and Singapore announced an open skies agreement allowing any carrier from either country to operate passenger and cargo flights to any city at any frequency, as well as to codeshare.
BRA Transportes Aereas said it intended to suspend all flights as of yesterday pending a cash infusion it said it required to maintain operations, according to a Portuguese statement on its website and press reports from Sao Paulo. The airline operated eight 737s and two 767s to 26 domestic and three international destinations, Reuters reported. It signed a contract for 20 E-195s over the summer ( ATWOnline, Aug. 23).
Delta Air Lines maintenance arm Delta TechOps signed a 10-year, $1 billion-plus deal with Chromalloy Gas Turbine Corp. that represents "the largest and most significant [PMA] agreement in the airline industry," adds the CFM56-5 to DTO's portfolio and will result in 250 additional engine overhauls, DL announced yesterday.
Big Sky Airlines parent MAIR Holdings reported a $2.5 million loss in the fiscal second quarter ended Sept. 30, unchanged from the year-ago period. Revenue climbed 46.4% to $9.05 million while expenses rose 29.9% to $12.5 million, resulting in a flat operating loss of $3.4 million. Big Sky, which serves 26 cities with 13 Beech 1900Ds as a Delta Connection partner and in codeshare with Northwest Airlines, Alaska Airlines, Horizon Air and US Air, flew 14.8 million RPMs during the quarter, up 63.5%. Capacity rose 28.8% to 28.5 million ASMs, lifting load factor 11 points to 52%.
Kenya Airways reported a KES1.97 billion ($29.5 million) profit in the six months ended Sept. 30, down 18.8% from the KES2.43 billion earned in the year-ago semester. Revenue rose 6.4% to KES30.3 billion while costs climbed 10.3% to KES26.88 billion. Operating profit fell 16.3% to KES3.42 billion from the KES4.09 billion reported in the six months ended Sept. 30, 2006.
JAL Group reported a better-than-fivefold increase in net income for the first half of its fiscal year ended Sept. 30 to ¥7.3 billion ($63.7 million) compared to ¥1.5 billion a year earlier, crediting "cost reforms" such as aircraft downsizing, reduced spending on personnel and the elimination of money-losing routes for the improvement.
Northwest Airlines flew 6.47 billion consolidated RPMs in October, down 0.2% from the year-ago month. Capacity dropped 1.3% to 7.73 billion ASMs and load factor rose 1 point to 83.8%. Air Canada and Jazz flew 4.06 billion RPMs in October, a 2.7% increase from the year-ago month. Capacity rose 2.4% to 5.16 billion ASMs and load factor was up 0.2 point to 78.6%. JetBlue Airways flew 1.99 billion RPMs in October, up 7% from the year-ago month. Capacity climbed 11.1% to 2.52 billion ASMs, dropping load factor 2.9 points to 75.9%.
Airports Council International elected Aeroports de Montreal President and CEO James Cherry chairman for a two-year term. He replaces Ghanem Al Hajri, who held the role on an interim basis following the August retirement of Niels Boserup.
Lufthansa, which is set to take delivery this week of the first of 60 A320 family aircraft to be used on European flights, will feature a new cabin design with increased "usable. . .width which will especially benefit passengers in window seats, giving them more room at shoulder height," the airline said. Also included will be new window surrounds that "make the windows appear larger" and enlarged overhead bins, LH added.
Jordan Airline Training and Simulation signed an agreement with S7 Airlines under which the Russian carrier will send 20 pilots to train on JATS' two A320-200 full flight simulators with JATS instructors ( ATWOnline, Sept. 6). The pilots also will receive safety and emergency training, while one will take a simulator instructor course. S7 ordered 25 A320s at last summer's Paris Air Show ( ATWOnline, June 19).
Citing "targeted management of sales and marketing," CSA Czech Airlines said yesterday that its ability to sell higher-priced tickets was the primary driver behind a profit of CZK563 million ($30.2 million) in the first nine months of 2007, reversed from a CZK323 million deficit in the year-ago period.
News from Travel Technology Update: EasyJet will participate in Amadeus and Galileo, becoming the first major European low-fare carrier to sign deals with GDS companies. The carrier said the move is designed to tap into the $90 billion corporate travel market in Europe. EasyJet said it will add a point-of-sale fee to fares booked through the GDSs, ensuring that its Web site "remains our primary distribution channel and fares will always be cheapest when booking direct online."
Finnair Group ground handling subsidiary Northport Oy signed an agreement to sell the entire share capital of its Swedish and Norwegian subsidiaries, Finnhandling AB and Northport Norway AS, to Menzies Aviation. The sale will create a slightly more than €5 million one-time boost to Finnair's fourth-quarter results.
Air Arabia reported third-quarter net income of AED165 million ($44.9 million), more than triple the AED48 million earned in the year-ago period, as revenue rose 65% to AED369 million on a 49% increase in passengers to 729,745. The carrier operated nine A320s at the end of the quarter to 35 destinations, flying 1.3 billion RPKs against a capacity of 1.5 billion ASKs. Load factor was 92%.
Mesa Air Group appointed VP-Finance William Hoke as interim CFO. He replaces former CFO Peter Murnane, who was terminated after it was revealed that he deleted confidential records related to the carrier's recent legal problems with Hawaiian Airlines ( ATWOnline, Sept 28).
Chinese carriers responded to climbing oil prices by raising fuel surcharges on domestic services 20%-25% from yesterday. The levy on flights of fewer than 800 km. increased to CNY60 ($8.04) from CNY50 per ticket while the fee on flights of 800 km. or more went from CNY80 to CNY100. China raised the domestic price of jet fuel by CNY500 per ton starting Nov. 1, a move that industry insiders said was the catalyst for the surcharge hike. The fourth quarter is considered the domestic low season.
Ryanair yesterday released yet another set of stunning results, with net income for the second fiscal quarter ended Sept. 30 rising 26% year-over-year to €268.7 million ($389.9 million) on a 25% increase in total revenue to €861.3 million. The LCC also raised its full-fiscal-year forecast. Its half-year profit climbed 24% to €407.6 million from €329 million earned in the year-ago period.
American Airlines flew 11.53 billion system RPMs in October, up 3.6% from the year-ago month. Capacity fell 0.2% to 14.31 billion ASMs, lifting load factor 3 points to 80.6%. Continental Airlines flew 7.69 billion system RPMs in October, a 6% increase over the year-ago month. Capacity rose 5.7% to 9.68 billion ASMs and load factor improved 0.2 point to 79.5%. Consolidated unit revenue was up an estimated 6%-7% year-over-year.
Australia's Rex said it is suspending its recently announced Brisbane-Maryborough service because of its ongoing pilot shortage. "This suspension is the result of a network review to identify the routes that have the lowest load factors so as to inconvenience the least number of regional travelers and follows similar initiatives that we have undertaken on the Cooma and Wagga Wagga services in New South Wales," MD Geoff Breust said.
LAN Airlines finalized its July order for 32 787s, with 26 purchased directly from Boeing and an additional six leased from ILFC ( ATWOnline, July 16). Boeing said the Chilean company also has committed to acquiring four 777 freighters, two from the manufacturer and two from GECAS. The purchased 787s are a mix of -8s and -9s and are valued at around $4.5 billion at list prices, while those leased from ILFC will be -9s. The 777Fs are valued at approximately $250 million apiece.
China Eastern Airlines suspended trading in its stock yesterday, saying its deal to sell a 24% stake to Singapore Airlines is pending ( ATWOnline, Oct. 12). CEA said its stock will not resume trading until the SIA deal is sealed. In September, SIA and parent Temasek agreed to purchase stakes of 15.7% and 8.3% respectively, giving them a combined 24% holding valued at HK$7.15 billion ($921.8 million).
