Claiming it "is assuming again the leadership in fleet modernization," Lufthansa yesterday announced a commitment for 15 CRJ900s and took over commitments for 30 Embraer regional jets from Swiss International Air Lines, now an LH subsidiary.
VLM Airlines yesterday reported a full-year profit of €3.2 million, a 143% increase over its 2005 earnings and its ninth consecutive year in the black. Revenue rose 12.5% to €99.6 million and operating costs climbed 10.9% to €95.3 million. VLM said it was able to offset rising fuel expenses with "a number of initiatives" including foreign currency hedging. Passenger numbers were up 9% to 681,751 and are forecast to grow to 900,000 this year.
Flight attendants from American Airlines, United Airlines and Southwest Airlines are joining forces to protest executive compensation they consider unfair when measured against the benefits and wages lost by front-line employees over the past few years. While the pay packages of airline CEOs have made headlines, employee groups are coming forward to ask Congress to bring more transparency to executive compensation, according to James Little, international president of the Transport Workers Union. Rep.
China Southern Airlines returned to profit for the first time in four years in 2006, reporting CNY188 million ($24.3 million) in net earnings under international accounting standards, a reversal from a loss of CNY1.85 billion in 2005, according to a filing with the Shanghai Stock Exchange cited by press reports.
Admitting it is losing more than $1 million daily, Gulf Air yesterday released details of an extensive $825 million restructuring that will see it transition from a mixed fleet of 34 aircraft to an all-Airbus fleet comprising 28 aircraft and refocus its long-haul international network to one centered mostly on serving the Middle East.
Singapore Airlines flew 7.82 billion RPKs in March, a 9.8% increase over the year-ago month. Capacity climbed just 0.9% to 9.49 billion ASKs, lifting load factor 6.6 points to 82.4%.
Jet Airways, whose agreement last week to acquire Air Sahara will give it control of about half of India's domestic market ( ATWOnline, April 13), yesterday unveiled major re-branding initiatives for both carriers, including a fleet expansion to support Jet's international services that eventually will incorporate an order for 10 787s valued at $1.6 billion.
Sun Country Airlines named Champion Air President and CEO Stephen Spellman as its new CFO and COO. Flybe named Group Finance Director Andrew Knuckey as CFO, replacing Chris Simpson.
Airline Partners Australia's plan to pay itself approximately A$4 billion ($3.33 billion) in the first year following its proposed takeover of Qantas ( ATWOnline, April 13) has thrust the deal back into the headlines, with the move being slammed by politicians, unions and pundits. Outspoken Sen. Barnaby Joyce (National-Queensland) led the political charge, telling The Sydney Morning Herald that APA is "not playing with their money.
Delta Air Lines said yesterday that more than 95% of its creditors cast ballots in favor of its Plan of Reorganization. It is eyeing emergence from bankruptcy on April 30. The results are unofficial, with the final tally to be filed later this week with a US Bankruptcy Court. DL will ask the court to confirm and approve its reorganization plan at an April 25 hearing, which is widely expected given the overwhelming support from creditors.
Air China unveiled details of the new cargo airline it plans to operate in partnership with Cathay Pacific Airways ( ATWOnline, Jan. 11), to be based on the existing China Cargo Airlines that flies out of Beijing.
Etihad Airways revealed select details of what CEO James Hogan called a "remarkable" first quarter during which passengers nearly tripled year-over-year to 1.03 million and revenue soared to AED712 million ($193.9 million) from AED230.6 million in the year-ago period. Profit and loss figures were not supplied. Hogan cited "extraordinary" growth in both network and fleet over the past three years and "growing awareness of Etihad in key markets around the world" for the improvement.
Grand China Air, the company established in 2004 combining HNA Group's Hainan Airlines, Xinhua Airlines, Changan Airlines and Shanxi Airlines ( ATWOnline, Oct. 18, 2005), received its operating license from CAAC, the Centre for Asia Pacific Aviation said. The way now is paved for Grand China to complete a listing in Hong Kong, possibly as early as the second half of this year. CAPA Executive Chairman Peter Harbison said the listing could raise up to $500 million.
Kuwait's Jazeera Airways said it posted an $8.7 million profit in 2006, its first full year of operations, after breaking "Middle East governments' 50-year monopoly of the aviation sector."
Lufthansa Technik said it will become the first international MRO provider to establish an Indian base when it opens a 20,000-sq.-m. facility outside Hyderabad at the end of next year.
ANA Group announced the sale of its 14 hotel subsidiary companies, including 13 hotels, to YK Shiroyama Properties, a fund managed by Morgan Stanley, for ¥281.3 billion ($2.36 billion). The company had revealed its intention last December to dispose of the hotels ( ATWOnline, Dec. 13, 2006).
Fraport and Turkey's IC Holding combined to pay €2.37 billion ($3.19 billion) for the concession to run all three passenger terminals at Antalya Airport until 2024. The pair will operate the domestic terminal and one of the Fraport-operated international terminals from mid-September, then take over the IC-operated international terminal in September 2009. AYT reported passenger throughput of 14.8 million in 2006.
Iberia has yet to open its books to Texas Pacific Group and wants more information on the US firm's partners in its €3.4 billion ($4.58 billion) bid for the airline, specifically if there are any Spanish companies or airlines involved, an IB spokesperson said last Thursday, according to Reuters ( ATWOnline, April 11). A non-EU interest currently cannot acquire more than 49% of an EU airline ( ATWOnline, April 2).
Hainan Airlines bounced back into the black last year, posting a CNY181.6 million ($23.5 million) profit that represented a reversal from a CNY215.7 million loss in 2006. Xinhua Financial Network reported that the carrier's "core business revenue" climbed 23.7% to CNY12.45 billion against a 26.2% increase in costs to CNY10.36 billion. Passenger numbers grew 12.4% to 14.4 million, but the airline said it is targeting 12.8 million passengers this year. No explanation for the decline was provided.
The board of Midwest Air Group reviewed and unanimously rejected AirTran Holdings' third merger proposal last week, prompting the Atlanta-based carrier to label its target "irresponsible" and "delusional" in a Friday statement.
GE's first-quarter financial results revealed strong performances from the company's aviation units. GE Aviation enjoyed a 17% year-over-year rise in net earnings to $755 million on a 16% increase in revenue to $3.51 billion. It was the most profitable segment in GE's Infrastructure division. GE Aviation Financial Services' profit jumped 88% to $338 million on a 34% climb in revenue to $1.25 billion. The overall company's three-month profit grew 8% to $4.51 billion.
Air One suffered a 62.5% decline in full-year earnings to €6 million ($8.1 million), compared to a 2005 profit of €16 million that was boosted by €14 million in special gains, according to a statement cited by AFX News. The Italian carrier's operating profit soared 76% to approximately €26 million on a 24% rise in sales to €611.5 million.
Hawaiian Airlines flew 679 million scheduled-service RPMs in March, a 22.1% increase from the year-ago month. Capacity climbed 17.2% to 745.4 million ASMs, lifting load factor 3.6 points to 91.1%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.53 billion RPMs in March, up 10.9% on the year-ago month. Capacity rose 13% to 1.91 billion ASMs and load factor fell 1.6 points to 79.8%.
Lufthansa will make an announcement this spring regarding the long-awaited renewal of its regional fleet, CEO Wolfgang Mayrhuber told ATWOnline last week. "We are currently in talks with the manufacturers. After that, we will provide details," he said. He did not indicate the size of the order or if it would include aircraft for its Swiss International Air Lines subsidiary.
