Gol received approval yesterday from Brazil's National Civil Aviation Agency for its planned acquisition of Varig ( ATWOnline, March 29). "Varig will incorporate modern concepts of efficient administration and reduce operating costs to become a competitive company," Gol CEO Constantino de Oliveira Jr. said. The transaction, valued at $320 million, still requires approval from the Brazilian antitrust authority.
Mobiqa and Nok Air are partnering to make tickets available for download on customers' mobile phones via an SMS containing a barcode that can be scanned at check-in. Separately, Nok launched twice-daily Bangkok-Krabi service aboard a 737-400.
American Airlines filed an application with US DOT to operate daily Chicago O'Hare-Buenos Aires service beginning Oct. 28 onboard 219-seat 767-300s. AA already serves EZE from Dallas/Fort Worth, Miami and New York JFK. The US and Argentina signed an expanded air services agreement last week ( ATWOnline, April 2).
Shandong Airlines posted net income of CNY44 million ($5.7 million) in 2006, a reversal from the prior year's loss of CNY273.6 million, on a 45.2% lift in operating revenue to CNY 4.2 billion.
Northwest Airlines' full reorganization plan, filed Monday with the US Securities and Exchange Commission, includes detailed P&L projections through 2010. It projects net income of $794 million this year on $12.77 billion in revenue, a reversal from its $2.84 billion loss in 2006 ( ATWOnline, Feb. 7). Net earnings in 2008 are expected to fall 12.6% to $694 million on rising expenses and taxes, but 2009 profit will be back up 21.6% to $844 million on revenues of $13.94 billion.
Air Arabia's 10-day IPO closed with approximately 40,000 subscribers buying up 2.57 billion shares representing 55% of the company's share capital ( ATWOnline, March 19). It said the AED2.57 billion ($698.8 million) offering was 150% oversubscribed and that share allocation will occur April 8, with refunds distributed April 11 and 14. Shares will be listed on the Dubai Financial Market.
CAE said yesterday that it sold two 7000 Series 787 full-flight simulators to Japan Airlines valued at C$36 million ($31.2 million). The first will be delivered to JAL's Tokyo Haneda training center in 2008.
American Airlines flew 11.93 billion system RPMs in March, down 1.4% from the year-ago month. Capacity fell 2.9% to 14.48 billion ASMs, lifting load factor 1.3 points to 82.4% United Airlines flew 10.32 billion system RPMs in March, up 1.6% on the year-ago month. Capacity rose 0.5% to 12.14 billion ASMs and load factor improved 1 point to 85%.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, reached a settlement with the US Securities and Exchange Commission regarding accusations of inaccurate financial reporting from 2000 to 2002, agreeing to make no future misleading financial statements while paying no penalty for alleged transgressions that took place under previous management. SEC said AAWW failed to "report accurately its financial results, maintain requisite accounting records and implement adequate internal accounting controls" in fiscal years 2000, 2001 and the first half of FY02.
Gulf Air said former Crossair and Swiss International Air Lines CEO Andre Dose officially took over as CEO this week ( ATWOnline, Feb. 2). It added that Dose will be "unveiling a new long-term business plan" in a few weeks after spending time studying the airline and its operations.
Japan Airlines ordered five additional 787-8s, bringing its total to 35 and pushing Boeing's total Dreamliner sales to more than 500 if new orders from unidentified customers are included. JAL placed an order for 30 787s in December 2004, nine months after Boeing launched the program. The manufacturer said yesterday that it has sold 514 Dreamliners to 43 customers, meaning 23 new orders from four customers including JAL have been received since the end of last week.
ANA applied for permission to wet-lease two 767-200SFs from ABX Air, each with a 40-tonne payload, for use on an expanded summer freighter schedule. It plans to increase flights to China from Osaka Kansai by 90% and ATKs by 72% compared to summer 2006. New services will include a four-times-weekly KIX-Beijing flight. Separately, ANA signed a general terms agreement with Thai Airways under which Thai will perform heavy MRO on 11 ANA 747-400s at its new maintenance center at Suvarnabhumi. Work will be completed by next year.
Skybus Airlines, which aims to start domestic low-fare A319 service out of Columbus this spring, late Monday announced the completion of a second round of financing worth $72.2 million, bringing the amount raised by the company to $160 million. "The confidence shown in Skybus by the business community in Columbus and major financial institutions in New York and Boston is a terrific endorsement of our business model, which uniquely focuses on delivering great destinations at extremely affordable prices with brand new aircraft and nonstop flights," CEO Bill Diffenderffer said.
Etihad Airways will add three A330-200s and two A340-600s to its fleet through the summer and increase its flying program 18%. New services are from Abu Dhabi to Sydney (now thrice-weekly aboard A340-500s, becoming daily June 29), Dublin (four-times-weekly from Aug. 3) and Milan Malpensa (thrice-weekly from Sept. 1), while 40 weekly flights will be added to existing routes on its network. An increase in its London Heathrow service to twice-daily has resulted in suspension of its Gatwick operation.
Japan Airlines completed oneworld's spring expansion Sunday, joining Malev Hungarian Airlines and Royal Jordanian as members of the alliance ( ATWOnline, March 30). JAL subsidiaries JALways, Japan Asia Airways, JAL Express, J-AIR and Japan Transocean Air are new oneworld affiliate members. JAL was the largest airline in the world outside one of the three major alliances, oneworld said. It adds nearly 50 airports to the grouping's network and one new country, Guam.
ExpressJet Airlines launched operations yesterday under its own name in eight markets--Ontario (Calif.), Austin, Boise, Kansas City, Omaha, San Antonio, Spokane and Tucson--aboard 50-seat ERJ-145s. The airline, which announced details of its independent operation two months ago ( ATWOnline, Feb. 5), also unveiled its JetSet loyalty program.
Virgin Blue converted options for three E-170s to firm orders and took purchase rights on three additional E-190s, Embraer announced yesterday. The transaction adds to last fall's order for 14 aircraft ( ATWOnline, Nov. 3, 2006). "This added flexibility initially provides a range of new operating opportunities in Australia and, potentially, for short-haul routes to New Zealand and the South Pacific islands," Virgin Blue CEO Brett Godfrey said.
British Airways selected Trent 800s to power the four 777-200ERs ordered last week ( ATWOnline, March 28) for delivery in 2009. It also signed a long-term maintenance agreement. Of BA's 43 777s, 15 are Trent-powered -200ERs with the remainder outfitted with the GE90.
Alitalia has attracted the interest of SkyTeam partner Aeroflot, Italy's Ministry of Economy and Finance confirmed yesterday. The Russian carrier will team up with Italian bank UniCredit, which will control 5% of the bidding group, although UniCredit and Aeroflot reportedly are open to another airline joining the consortium. The Moscow Times reported that SU's bid is worth up to €700 million ($934.5 million).
Already a significant presence in Italy, Air One is committed to enhancing its international profile and expanding its European network. "Our growth in the next three years will be mainly in Europe," VP-Network and Marketing Giorgio De Roni told ATWOnline. Last year the carrier captured a 30% share of the domestic market, carrying 6.3 million passengers on more than 1,900 weekly flights to 23 Italian and 13 European destinations. By the end of next year it plans to serve 20 European cities and expects a 10% increase in total passenger numbers.
United Airlines signed a contract with the US Postal Service to carry domestic mail from April 28 through Sept. 30, 2011. The deal is worth up to $400 million, UA said.
EU's first written submission in its WTO challenge to US government subsidies to Boeing details "massive, long-standing and WTO-inconsistent" federal, state and local government support totaling $23 billion, the EU announced. It cited NASA and Dept. of Defense research and development support and tax beaks and infrastructure support from the states of Kansas and Washington as examples. A nonconfidential version will be released in "due course," the EU said. The US is scheduled to present its written defense on June 14 with the first panel hearing set for July 11.
AirTran Holdings raised the stakes once again in its bid to acquire Midwest Air Group by offering to purchase each outstanding Midwest share for $15 in cash and stock ($9 in cash and 0.5842 share of AirTran common stock), up from an October offer of $11.25 and a January bid of $13.25.
Delta Air Lines plans to make cash and stock payments valued at $480 million to its 39,000 noncontract employees--those not covered by a collective bargaining agreement or a management compensation program--upon emergence from bankruptcy. It will distribute 3.5% of common stock, initially valued at $350 million, and lump sum cash payments totaling $130 million to the workers following its planned May exit.
Delta Air Lines Friday unveiled a new board of directors, including the appointment of former Eastman Kodak CEO Daniel Carp as chairman, that will begin sitting upon the company's emergence from bankruptcy, expected during the second quarter. CEO Gerald Grinstein will be the lone current DL executive on the 11-person board.
