Decks are now clear for the merger of Air India and Indian, the country's two state-owned carriers, which will combine under the newly formed National Aviation Co. Ltd.
US and Argentina reached an expanded air services agreement last week that will raise the number of possible weekly passenger flights between the countries from 56 to 77 immediately and to 112 by March 2009. Airlines from both countries also will have access to more follow-on international destinations.
Niki, the Austrian low-cost carrier and Air Berlin partner, took delivery of its first CFM56-5B-powered A319 last week, the first A320 family aircraft fitted with Airbus's enhanced cabin that is derived from the A380 and features 15% more bin volume, more passenger space at shoulder level, enhanced lighting and noise reduction features. Onboard the delivery flight, President Niki Lauda told ATWOnline that the carrier continues to achieve 30% annual passenger growth.
Considered to be a merger or acquisition target following approval of the EU-US open skies agreement, Iberia on Friday received a takeover approach from Texas Pacific Group, which values the Spanish flag carrier at about €3.4 billion ($4.53 billion).
Lufthansa Technik and Cathay Pacific Airways signed a 10-year Total Engine Support contract last week under which LHT will serve 15 CX PW4056-3 powered 747-400s, including six spares. The companies said they are in "final preparations" for another deal covering PW4062s on six new 747-400ERFs set to arrive in May 2008.
Hainan Airlines parent HNA Group launched its Grand Xinhua Express Airlines Friday in Tianjin just southeast of Beijing, from where it initially will operate five 32-seat regional jets. HNA holds 81% of the new carrier with an investment of CNY81 million ($10.5 million), while Hainan Airlines invested CNY19 million for the remaining stake. GXE is aiming to be China's top regional airline in both passenger and cargo traffic.
South African Airways "needs a full-scale restructuring to return to profitability," CEO Khaya Ngqula said last week while announcing the start of a "comprehensive" revamp "that will include all levels of the organization." SAA previously announced it will eliminate 1,000 positions this year ( ATWOnline, Dec. 4, 2006). A restructuring committee has been formed and the "process to develop a new business plan" approved, it said.
Buried deep within the filing cabinets in some airline analyst and CEO offices around Asia are reports that confidently predicted low-cost carriers never would succeed in the region. The rationale was simple and, to most, convincing: Cathay Pacific and Singapore Airlines had similar unit costs to Ryanair and easyJet so how could a budget airline work in Asia? Fortunately for 30 million passengers (through February 2007) who enjoy the world's lowest airfares every day, AirAsia founder and CEO Tony Fernandes never saw those reports.
Air France Industries-KLM Engineering & Maintenance promoted Jonathan Soesman to VP-sales-USA & Canada. AJ Walter Aviation appointed Vicky Gallagher-Brown dir.-human resources. American Airlines promoted Ron Olson to GM-Las Vegas McCarran Int'l. Airport. Boeing named Ian Thomas VP-Boeing Int'l. & president-Boeing India. CIT Aerospace tapped Graham Niven and Angus Greene as VPs-marketing, Commercial Airlines Group. Niven will be based in Singapore and Greene in Dublin. Darwin Airlines chose Fabio Parini as CEO.
American Airlines parent AMR Corp. is planning to invest up to $100 million into its Maintenance Services group in an effort to bolster third-party business. It said the funding will be used to update facilities, invest in new technology and increase efficiencies. "In the past three years, we have worked with our [Transport Workers Union] partners to reduce costs, streamline processes and keep the vast majority of our own aircraft maintenance work in-house," said Senior VP-Technical Operations Bob Reding.
Delta Air Lines posted net earnings of $55 million in February compared to a loss of $209 million in the year-ago month, which Executive VP and CFO Edward Bastian said "demonstrate[s] the significant momentum we have created with our restructuring." However, DL recorded a $43 million loss excluding reorganization items, narrowed from a $138 million deficit in February 2006, and reported a $5 million operating loss owing to a negative impact of fuel hedges. Consolidated passenger unit revenue rose 1.4% year-over-year.
Qantas will boost its domestic operation with nine new A320s to be delivered over a 15-month period from late 2007 and used by Jetstar. The company is girding itself for the arrival of Tiger Airways Australia, which aims to challenge QF with a low-cost product ( ATWOnline, March 16). In addition, Qantas said four 767-300s used in international operations and scheduled to be sold instead will be transferred to domestic routes in the middle of this year.
Avianca Airlines placed a firm order for 10 787s valued at $1.5 billion, becoming the first airline in South America to order the aircraft. The Colombian carrier also holds purchase rights for 10 more 787s. Boeing previously credited the order to an unidentified customer in its listing of orders and deliveries and announced the order late Wednesday.
IATA reported 6.8% industrywide RPK growth in February and a 6.1% year-over-year rise in capacity, which lifted load factor 0.5 point to 73.3%. Highest load factor of 74.4% was in North America, while largest RPK growth was the Middle East's 18%. Next highest was Africa at 9.4%.
47th Paris Air Show June 18-24 will feature as many as 2,000 exhibitors, officials said during a briefing in Washington this week, up from 1,926 in 2005. A total 128,801 sq. m. of static displays, halls and chalets will be occupied at the world's largest aviation exhibition. The 2005 show attracted some 137,000 trade visitors and 257,000 members of the general public, with 238 aircraft displayed. New exhibitors this year include Spirit Aerostructures (formerly Boeing's Wichita division), Dubai Aerospace Enterprise and Cessna.
KLM Engineering & Maintenance appointed former Sabena Technics President and CEO Peter de Swert as senior VP-operations. Lufthansa Technik named Head of EASA Approved Design Organization Bernhard Conrad as Chief Technology Officer.
Malev Hungarian Airlines followed Royal Jordanian into oneworld yesterday ( ATWOnline, March 29), becoming the group's 10th member. "It is vital in today's airline industry for a medium-sized airline like Malev to have the best of the best as partners to achieve long-term efficiencies and sustainable profitability," Chairman Boris Abramovich said. Malev adds 10 cities to oneworld's network, which will include Macedonia and Montenegro for the first time.
JetBlue Airways launched daily White Plains-Orlando International service Wednesday and will start a second daily HPN-MCO flight and daily flights to West Palm Beach and Fort Lauderdale on April 2, all aboard A320s. HPN is JetBlue's 51st destination and 7th in New York. Separately, the carrier took delivery of its 100th A320 last week. The aircraft will have stylized 100s painted on the tail.
Northwest Airlines announced the withdrawal of a $129 million salaried employee unsecured claim from its reorganization plan. Under a new salaried equity plan covering 5,200 salaried and management employees, those below director level will receive cash and restricted stock worth $77.4 million. "This salaried equity plan will help ensure that Northwest retains a team of experienced salaried employees, and ties the interests of that team to the financial performance of our company," President and CEO Doug Steenland said.
European Commission cleared KarstadtQuelle's acquisition of Lufthansa's 50% share in Thomas Cook. The German retailer, which already owned 50%, reached agreement with Lufthansa to buy its stake for €800 million ($1.07 billion) in December ( ATWOnline, Dec. 25, 2006). LH will raise its stake in Condor Airlines from 10% to 24.9% as part of the deal.
Air Canada President and CEO Montie Brewer said 48% of customers in the 2006 fourth quarter "willingly bought a higher fare" when purchasing tickets through AC's Web-based branded fare domestic pricing structure ( ATW, February 2007). Speaking yesterday at the National Bank Financial Transportation and Logistics Conference in Toronto, available via webcast, Brewer added that 25% of customers buying the lowest fare purchased an additional amenity. "We've found that customers will buy up," he said.
Delta Air Lines, which plans to exit bankruptcy at the end of next month ( ATWOnline, March 28), yesterday announced its application to list its new common stock on the New York Stock Exchange under the symbol DAL.
Sensis said Continental Airlines has subscribed to its Aerobahn Service of Web-based tools to monitor and manage taxiway and ramp traffic at Houston Intercontinental.
American Airlines yesterday said it will expedite both the delivery of the 47 737-800s it has on order and the replacement of a portion of its MD-80 fleet. It will take three aircraft in early 2009 that originally were scheduled to arrive in 2016 and "intends to continue pulling forward deliveries" from the current 2013-16 timeframe to 2009-12. It said it hopes to improve the entire fleet's fuel efficiency by more than 20% by 2020.
Shenzhen Airlines posted a record profit of CNY360 million ($46.5 million) in 2006, more than triple the previous year's result, on a 40.1% lift in operating revenue to CNY6.45billion.
