ILFC and Airbus confirmed that the lessor has ordered 20 A350 XWBs valued at $4 billion. The order was reported earlier this month ( ATWOnline, Oct. 22), but confirmation did not come until Friday. It provides a boost to the next-generation aircraft program, particularly considering ILFC Chairman and CEO Steven Udvar-Hazy's public criticism of the initial A350 design ( ATWOnline, Oct. 25, 2006).
Kuala Lumpur-Singapore service is set to see a major price war erupt after the Malaysian government decided to abandon its protection of the route and several others well ahead of the originally scheduled January 2009 date.
Midwest Air Group, parent of Midwest Airlines and Midwest Connect, fell to a $3.9 million loss in the third quarter, reversed from a $1.7 million profit in the year-ago period. Revenue climbed 20.2% to $202.6 million but costs were up 24.1% to $208.7 million, leaving the company at an operating loss of $6.1 million compared to the $427,000 profit earned in the three months ended Sept. 30, 2006. Group airlines flew 1.31 billion RPMs, up 25.1%, against a 23.7% increase in capacity to 1.66 billion ASKs. Load factor rose 0.9 point to 79%.
Frontier Airlines Holdings reported net income for its fiscal second quarter ended Sept. 30 of $17.3 million, improved over a net profit of $509,000 in the year-ago quarter, on a 19.4% increase in revenue to $372 million. Expenses rose 13.3% to $350.4 million and operating income was $22.8 million, a more than fivefold increase over $4 million last year.
Alaska Airlines and Horizon Air Group parent Alaska Air Group reported third-quarter net income of $85.8 million, reversed from a net loss of $17.4 million in the year-ago quarter, on a 6.3% rise in revenue to $995.1 million.
US Airways reported net income of $177 million, a turnaround from a net loss of $78 million in the year-ago quarter, and said "capacity constraint" will allow for continued profitability despite rising fuel prices. Chairman and CEO Doug Parker said it marked a "momentous change in the industry" for US carriers to earn profits despite per-barrel crude oil prices rising above $80. "This is a big deal," he told analysts and reporters yesterday. "We are happy to see our industry acting rationally" by taking a conservative approach regarding capacity growth.
Lufthansa Group released its full third-quarter and nine-month figures yesterday, confirming a €586 million ($834.7 million) profit that represented a 78.1% increase over the year-ago period (before the integration of Swiss International Air Lines), and promised that it wants to "consolidate and extend our leadership in the industry." Third-quarter revenue rose 17.7% to €6.28 billion and operating profit was up 25.3% to €586 million.
Sabena Flight Academy and GMR Group signed an MOU to create a joint venture aviation training academy at New Rajiv Gandhi International Airport in Hyderabad by January 2009. The academy will offer "complete training packages for aviation-related activities" covering pilot and cabin crew training, engineers, technicians and aviation consultants. Training for airport operations staff such as passenger and ramp services agents also will be provided.
Caribbean transport ministers signed the San Juan Accord this week in Puerto Rico, committing to "liberalize air transport services and harmonize aviation safety and security measures" with the ultimate goal of creating "an umbrella policy for air transport" and "a single regional airspace." A forum of tourism and air transport ministers will be convened no later than Feb. 15 to discuss security and other issues pertaining to liberalization of civil aviation in the region.
EasyJet propelled itself into the top spot among Europe's low-cost carriers and consolidated its presence at London Gatwick through the purchase of GB Airways from Bland Group for £103.5 million ($212.1 million) in cash. The deal does not include GB's four London Heathrow slots. This is easyJet's second major airline acquisition; it acquired British Airways' low-fare subsidiary Go Fly in May 2002.
JetWorks Leasing on behalf of a group of institutional investors arranged the sale of a 747-400 on lease to United Airlines to Top Flight Holdings, a company controlled by Babcock & Brown Aircraft Management.
Royal Jordanian is returning its two Q400s to Bombardier and converting orders for two E-195s into the smaller 175, CEO Samer Majali confirmed to ATWOnline at the Arab Air Carriers Organization AGM in Damascus. RJ placed an order for seven E-195s in March 2006, with five being delivered so far.
Lufthansa yesterday reported a nine-month net profit of €1.58 billion, implying third-quarter net earnings of €586 million that represent a 78.1% improvement over a year-ago profit of €329 million as calculated by ATWOnline.
Etihad Airways will issue an RFP next year for an aircraft order "of a good size," CEO James Hogan revealed to ATWOnline at the Arab Air Carriers Organization AGM in Damascus. The order will be for both short- and long-haul types and will be for "at least 20-25 aircraft," he said without revealing further details. "The order will cover in part the recycle needs of our current fleet and in part incremental requirements," he noted. Hogan added that it is premature to conclude if Etihad will move toward an all-Airbus fleet.
Taca Group placed an order for 11 E-190s plus 15 options, Embraer announced. The order, which had been on the manufacturer's books as unidentified, is worth $379.5 million at list prices and could reach $897 million if all options are exercised. Aircraft will be configured with 88 economy and eight executive class seats, with deliveries planned to begin in the second half of next year.
China Southern Airlines posted a net profit of CNY1.88 billion ($249.5 million) in the third quarter, up 49% from the CNY1.29 billion earned in the year-ago quarter, on a 16.9% lift in operating revenue to CNY16.5 billion and a 10.2% increase in expenses to CNY12.33 billion.
LAN reported third-quarter net income of $78.8 million, up 52.9% over a net profit of $51.5 million in the year-ago quarter, on a 15.2% increase in revenue to $878 million. "This result reflects significant margin improvements resulting mainly from capacity expansion and strong traffic growth as well as effective control of operating costs," the company said.
Singapore Airlines flew 7.48 billion RPKs in September, up 4.1% on the year-ago month, as capacity fell 0.5% to 9.23 billion ASKs. Load factor rose 3.6 points to 81%.
JetBlue Airways reported a $23 million third-quarter profit that, while representing a turnaround from a $500,000 loss in the year-ago period, did not sway the carrier from its continuing commitment to streamlining its operation.
Finnair said the sale of its FlyNordic subsidiary to Norwegian will result in a €14.1 million ($20.1 million) net gain in its third-quarter operating profit resulting from a €18.6 million capital gain recognized for the summer transaction ( ATWOnline, July 3), an additional €3 million in depreciation on six FlyNordic MD-80s owned by Finnair Aircraft Finance and a €1.5 million amortization.
Mxi Technologies said MRO Teknik Servis Sanayi Ticaret A.S. (myTechnic), a startup maintenance facility in Turkey, chose to implement its Maintenix maintenance management software.
Airline fares are expected to trend upward in 2008 in response to continued strong demand, generally tight capacity and higher fuel prices, according to the "Global Business Travel Forecast" released by American Express Travel Advisory Services yesterday. US domestic and short-haul economy fares will rise 1%-5% while international/long-haul business fares climb 5%-10%. Domestic/short-haul fares in Canada should rise 2%-5% while international/long-haul business fares climb 5%-8%.
United Airlines parent UAL Corp. reported third-quarter net income of $334 million, up 75.8% from $190 million in the year-ago quarter, and said it will continue to maintain "discipline in capacity planning" as it implements a five-year strategic plan that focuses on its "core business" and contemplates selling off noncore businesses such as its Mileage Plus frequent-flier program.
Air Mauritanie, which ceased operations last month, has been liquidated owing to its inability to pay off $2.7 million in debt related to aircraft leased from ILFC. Two 737-700s are grounded in France while one F28 and one 727 have been stored at Nouakchott, leaving Mauritania without a national carrier for the time being. A new airline called Mauritanie Airways is scheduled to start operating Nov. 8. That company will be owned 51% by Tunisair, 39% by Groupe Boumatou and 10% by the Mauritanian government. No details have been released regarding its aircraft or network.
UPS reported third-quarter net income of $1.08 billion, up 3.7% over a net profit of $1.04 billion in the year-ago quarter, as a strong performance in the international sector compensated for a slowing US market. "Once again, UPS's balanced network around the globe produced solid results even in the face of a lackluster US economy," Vice Chairman and CFO Scott Davis said.
