The highest quarterly revenue in company history helped boost Continental Airlines to a third-quarter net profit of $241 million, which represented a 1.7% increase over the $237 million earned in the year-ago quarter.
Mexico's government agreed to sell its 62% stake in AeroMexico to a group of investors led by Banamex, the Mexican arm of Citigroup, for MXN2.7 billion ($249 million) following an intensifying bidding war.
American Airlines, which has seen significant growth at Miami International Airport, said it is working with local officials to speed up construction of a new North Terminal. In September, AA reported a 14.4% year-over-year increase in passengers at MIA. As the project progresses, the airport will close Concourse A and American will operate out of C, D and E.
In a deal clearly inspired by the KLM-Northwest Airlines transatlantic joint venture, Air France and Delta Air Lines yesterday confirmed the creation of 50-50 JV to share revenues and costs on their transatlantic operations.
Alaska Airlines launched the first phase of an $18 million check-in facility dubbed the Airport of the Future at Seattle-Tacoma International. The system, shared with Horizon Air, replaces traditional ticket counters with a series of kiosks and bag check stations designed to reduce customer wait times. The first of three check-in "islands" features 11 kiosks and 16 bag check stations. Remaining islands will enter service by mid-2008.
EgyptAir Chairman Atef Abdel Hamid expects tough work ahead as the carrier readies itself for Star Alliance membership. "I read all the 52 requirements to be a member by myself. We still have a great challenge to meet the standards of a Star Alliance member," he admitted. The airline already has started, even though its commitment to join the group was announced just this week ( ATWOnline, Oct. 17).
Banamex and the Saba family continued their bidding war for AeroMexico yesterday, with both upping their bids to at least MXN2 billion ($185 million). The Mexican government indicated it was leaning toward accepting the bid of Banamex, the Mexican arm of Citigroup, unless the Sabas had outbid their rival clearly by the close of business yesterday. Moises Saba Masri vowed to win the bidding, saying in a radio interview that "If we have to make a higher counteroffer, then we'll do it.
Singapore Airlines' first A380 touched down at Changi International Wednesday evening at 18:42 local time, starting a new era in commercial aviation. The giant jet, which had departed Toulouse 13 hr. before, docked at the essentially complete and spectacular S$1.75 billion ($1.19 billion) Terminal 3, which is due to go into full-scale commercial operation on Jan. 9. Prime Minister Lee Hsien Loong and more than 500 guests were in attendance.
American Airlines parent AMR Corp. posted third-quarter net income of $175 million, more than 10 times net earnings of $15 million in the year-ago quarter, and insisted it is seeking ways to increase shareholder value following complaints that the company is doing too little to stop its stock price from sinking.
CFM International named Olivier Savin, VP of Snecma Services' component repair business unit, executive VP. He replaces Francois Planaud, who was named VP and GM of Snecma's Commercial Engine Division.
US Dept. of Transportation will include several foreign carriers in the meetings called for Oct. 23-24 to address congestion issues, specifically in the New York market ( ATWOnline, Oct. 15), Reuters reported, mentioning Air France KLM, British Airways, Lufthansa, Japan Airlines and Virgin Atlantic Airways.
Delta Air Lines reported third-quarter net income of $220 million, more than quadrupling net earnings of $52 million in the year-ago quarter when it was operating under bankruptcy protection, and said it actively is seeking ways to cut costs further, including the possible sale of regional subsidiary Comair.
Bidding for AeroMexico intensified yesterday as both the Saba family and Banamex boosted their rival offers for the carrier and Mexicana urged stakeholders not to dismiss its bid despite a rejection by regulatory authorities on antitrust grounds. Father and son Alberto Saba Raffoul and Moises Saba Masri increased their bid to MXN1.89 billion ($174.7 million) while Banamex, the Mexican arm of Citigroup, said the group of investors it is leading have upped their bid to MXN1.85 billion.
Jet Airways yesterday finalized its order for 20 winglet-equipped 737-800s placed last week ( ATWOnline, Oct. 9). The aircraft are worth nearly $1.5 billion at list prices, Boeing said. Engine choice was unannounced.
Despite its abrupt withdrawal from the deal to purchase a major stake in China Eastern Airlines in conjunction with Cathay Pacific Airways last month, Air China still is considering a merger and will evaluate its options over the next three months, President Li Jiaxiang told reporters yesterday after attending the Communist Party of China's national congress in Beijing.
American Airlines flew 10.85 billion RPMs in September, up 2.4% on the year-ago month. Capacity fell 1.4% to 13.83 billion ASMs and load factor rose 2.9 points to 78.4%. American Eagle Airlines flew 709.4 million RPMs, up 1.8%, against a 1% increase in ASMs to 1.01 billion. Load factor lifted 0.5 point to 70.2%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.44 billion RPMs in September, a 14% increase over the year-ago month. Capacity was up 12.9% to 1.9 billion ASMs and load factor rose 0.8 point to 76%.
SkyTeam partners Air France KLM and Delta Air Lines today will announce a wide-ranging agreement on the joint operation of transatlantic flights, including a number of flights from London Heathrow to US destinations, as the carriers seek to challenge British Airways directly when the EU-US open skies accord takes effect at the end of March.
Lufthansa is making inquiries about purchasing a 25% stake in LOT Polish Airlines from receivers of the old Swissair, Polish Deputy Treasury Minister Dawid Jackiewicz said in comments to reporters cited by Thomson Financial. "We would prefer that it not be a sector investor because any existing player could be opposed to the expansion and development of LOT. If it is Lufthansa, we will be every unhappy," he said.
Virgin Atlantic Airways plans to conduct a 747 biofuel test flight next year, parent Virgin Group Chairman Richard Branson said. At a recent appearance in Amsterdam and again yesterday during a speech in Boston, he said that Virgin will "early next year. . .fly one of our 747s without passengers with [an alternative fuel] we have developed." No other details were revealed. Virgin has said in the past that it is working with Boeing and GE to develop biofuels.
Aer Lingus CEO Dermot Mannion announced that the airline reached an agreement with pilots over issues concerning the opening of EI's Belfast base and that "the threat of disruption of services this week has been lifted." Mannion had threatened to suspend noncompliant pilots beginning today ( ATWOnline, Oct. 11). EI said the base will open on time with "staff employed on local terms and conditions" and that the agreement with the Irish Air Line Pilots Assn.
Kitty Hawk Inc., which operates air cargo and ground handling services, filed for Chapter 11 bankruptcy protection. The company, which operates 727-200 and 737-300 freighters, said it would continue to pay employee wages and benefits while it attempts to reorganize and secure interim financing. Kitty Hawk officials said the move was taken in "the best long-term interests" of employees, vendors and customers.
Cathay Pacific Airways will start a second-daily Hong Kong-San Francisco flight Oct. 18 aboard a 777-300ER. CX and Dragonair flew a combined 6.57 billion RPKs in September, up 5.2% from the year-ago month. Capacity rose 0.6% to 8.32 billion ASKs and load factor was ahead 3.4 points to 79%.
Ancra International said Cargo Aircraft Management placed an order for its 757-200 Cargo Loading System. Installation is scheduled to take place during the ongoing Precision Conversions passenger-to-freighter modification at Flightstar in Florida.
Finnair said yesterday it has approved a new long-term plan that focuses on developing Europe-Asia services with a future goal of also boosting North America-Asia service by turning Helsinki Vantaa into a significant connecting hub. "We will take advantage of Helsinki's geographical location even more extensively," President and CEO Jukka Hienonen said. "In years to come, the airspace and terminal facilities of large European airports are likely to become increasingly congested while Helsinki-Vantaa Airport has plenty of room for construction and possibilities for development."
S7 Airlines said revenue through the year's first nine months rose 27% year-over-year to $845 million and full-year turnover will reach $1.17 billion compared to RUB24.97 billion ($1 billion) in 2006. The company expects full-year EBITDA of $57 million. Nine-month passenger numbers grew 10% year-over-year to 4.3 million, with RPKs up 5% to 10.42 billion and load factor ahead 3.6 points to 81.9%.
