Airbus named Executive VP-Customer Services Patrick Gavin as executive VP-engineering, replacing the retiring Alain Garcia. A380 program head Charles Champion will succeed Gavin.
TAM flew 1.77 billion domestic RPKs in March, up 26.5% from the year-ago month. Capacity rose 26.3% to 2.56 billion ASKs and load factor lifted 0.1 point to 69%. International RPKs grew 68.7% to 807 million against an 85.9% increase in ASKs to 1.15 billion, dropping load factor 7.2 points to 70.5%. Alaska Airlines flew 1.53 billion RPMs in March, a 0.5% increase from the year-ago month. Capacity was up 2.3% to 1.99 billion ASMs and load factor dropped 1.4 points to 76.8%.
AirTran Holdings, parent of AirTran Airways, expects to report a "small" first-quarter profit when it releases its results on April 25, it said yesterday. The company suffered a $4.6 million loss in the first three months of 2006. It cited RASM that is expected to be "slightly better" than the latest guidance of a 1%-2% year-over-year decline, nonfuel CASM that will drop "in excess" of the forecast 3% and fuel costs of $2.00-$2.03 per gal. for the improved outlook in this year's quarter.
Northern Lights Airlines is the name of a new charter carrier being established in Canada, led by majority investor ICBS Ltd., which will own 50%. ICBS said the airline will launch in October and "exploit a gap in the long-haul international travel market that exists in low-cost, high-comfort and high-quality service originating in Montreal and Toronto." It said the market remains underserved despite the presence of Skyservice Airlines, Zoom Airlines and Air Transat. No information was provided regarding equipment.
British Airways yesterday began selling tickets for the first 380 scheduled flights to depart or arrive at London Heathrow's new Terminal 5, which will open March 27. The first scheduled departure is BA302 to Paris Charles de Gaulle. BA's move to its new facility is planned in four phases. Initially, more than 70% of its flights will transfer to T5, followed by an additional 20% at the end of April 2008. In June and October certain short-haul and BA/Qantas codeshare flights will move to Terminal 3 in order to collocate with oneworld partners.
The regional joint venture between Shenzhen Airlines and Mesa Air Group, announced last December, will be called Kunpeng Airlines and will launch operations in Xi'an with three CRJ200s at year end. The new carrier is expected to be approved soon by CAAC. The news came shortly after Hainan Airlines parent HNA Group unveiled its own regional subsidiary, Grand Xinhua Express, which also will fly to Xi'an. HNA said it intends to capture two-thirds of China's regional market by 2012 ( ATWOnline, April 2).
Texas Pacific Group reportedly is considering raising its bid for Iberia from €3.60 per share to €4.03, which would lift its valuation of the Spanish carrier to €3.8 billion, according to airline sources cited by El Mundo. The IB board is scheduled to decide this week on TPG's approach and request for information ( ATWOnline, April 2).
Hawaiian Airlines led US carriers with a 93.8% ontime percentage in March, according to data compiled by FlightStats. Among continental carriers, Horizon Air (86.8%) and Southwest Airlines (84.4%) were the most punctual of the 39 measured. Worst ontime rates belonged to Midwest Connect (13.3%) and US Airways (56.6%). Sun Country Airlines was the only carrier not to cancel a single flight, while Midwest Connect cancelled 8.7% and Northwest Airlink 4.9%.
Continental Airlines announced the sale of $1.15 billion worth of pass-through certificates, issued in three separate series, that will be used to finance its purchase of 30 737-800s and 737-900ERs scheduled for delivery in the January 2008-March 2009 timeframe. The proceeds initially will be held in escrow by an unidentified depository institution. The escrowed funds will be used to acquire equipment notes issued by CO to finance the aircraft. The three classes have coupons of 5.983%, 6.903% and 7.339% per annum.
Air Canada flew 3.94 billion RPMs in March, up 5% on the year-ago month. Capacity rose 2% to 4.7 billion ASMs, lifting load factor 2.4 points to 83.8%. AirTran Airways flew 1.48 billion RPMs in March, up 22.2% from the year-ago month. Capacity rose 22.9% to 1.9 billion ASMs and load factor fell 0.4 point to 77.7%. Gol flew 1.48 billion RPKs in March, up 42.9% from the year-ago month. Capacity climbed 59.2% to 2.4 billion ASKs, dropping load factor 7 points to 61.8%.
European Commission approved public financing of infrastructure developments at Lodz Airport. Cost of the project is PLN34.8 million ($12.1 million), with a maximum contribution by the Polish state of 71.85 %. Lodz increased passenger throughput to 216,861 in 2006 from 35,460 the prior year. Separately, the EC will allow the Italian government to grant startup aid for new domestic and European air routes from airports in the Puglia region of southeast Italy. The measure will last three years and provides for a total of €63 million ($84.3 million) to airlines.
Transaero plans to sell a 10%-17% stake in an IPO next year, Russia's AK&M reported. The company reported turnover of RUB13.63 billion in 2006, up 37.8% from the prior year.
China unveiled more details of its plan to build "jumbo aircraft," which it defines as passenger jets with more than 150 seats or freighters with a takeoff weight of more than 100 tons, saying it will begin assembling the planes in 10 or more years in Shanghai and Xi'an, according to the official state Xinhua News Agency.
Xiamen Airlines is negotiating with Boeing to order 25 737-800s valued at $2.1 billion, with the aircraft to be delivered in the 2011-13 timeframe if a deal can be reached. "We will offer a favorable price to Xiamen Airlines, as its fleet is virtually all Boeing," Commercial Airplanes President Scott Carson noted during his recent trip to Xiamen. Currently the carrier operates 43 Boeing aircraft comprising four 737-300s, six 737-500s, 15 737-700s, nine 737-800s and nine 757-200s. One additional 737-800 will be delivered in August.
Despite a rough winter in the US Northeast and glitches related to last month's reservation system migration, US Airways Group still expects to report a first-quarter profit.
Republic Airways Holdings announced the sale of its $91 million pre-petition unsecured creditor claim in Delta Air Lines' bankruptcy for $44.6 million. The transaction will close April 11. Republic subsidiaries Chautauqua Airlines and Shuttle America operate as Delta Connection.
Silverjet announced an underwritten placing, subject to shareholder approval, designed to raise £27 million ($53.1 million) gross. Shares are being placed at £1.80 each, a discount of 3.49% from the closing market price, the startup carrier said. The money will be used for "general working capital purposes." The all-business-class airline sold 3,293 revenue seats in March, representing a 59% load factor. In addition, last month it began offering cargo services on its daily London Luton-Newark 767 flight.
Fraport announced an investment of "approximately" €50 million ($66.9 million) to take a 24.5% share of Xi'an Airport. The transaction is scheduled to be completed in the third quarter and marks the first investment by a foreign airport operator in an unlisted Chinese airport, Fraport said. It will take charge of Xi'an's "operational optimization and commercial development."
Airbus said US Airways has joined America West Airlines in using the Airman real-time maintenance tool to monitor its fleet of Airbus aircraft. US becomes the largest Airman user.
Airline consolidation in the US began last week on a smaller scale than the failed mega-merger between US Airways and Delta Air Lines and AirTran Airways' contentious pursuit of Midwest Air Group as ATA Airlines parent ATA Holdings bought out World Air Holdings, parent of World Airways and North American Airlines, for $315 million in cash or $12.50 per share.
Air France KLM flew 17.13 billion RPKs in March, up 7.5% on the year-ago month. Capacity rose 3.8% to 20.83 billion ASKs, lifting load factor 2.8 points to 82.3%. Northwest Airlines flew 7.02 billion consolidated RPMs in March, a 1.3% rise from the year-ago month, as domestic traffic climbed 3.1% and international rose 1.4%. Regional traffic declined 12.9%. Capacity was up 1.8% to 8.19 billion ASMs on a 2.6% domestic increase and a 3.7% rise in international ASMs. Load factor fell 0.4 point to 85.7%.
Lufthansa CEO Wolfgang Mayrhuber told ATWOnline that his company is keeping a close watch on the sales and consolidation rumors circulating through Europe, especially those involving Iberia and Alitalia, but that it will err on the side of caution regarding its own involvement. "Both carriers would theoretically fit us," he said aboard a flight from Munich to Busan last week. "But conditions have to be proper, otherwise one can get into financial difficulties."
Garuda Indonesia 737-400 that crashed last month, killing 21 people ( ATWOnline, March 12), was traveling at 410 kph when it hit the runway at Yogyakarta Airport, nearly twice normal speed, according to a report by Indonesia's Transport Committee obtained by Australian media.
