US Airways lost its bid to merge with Delta Air Lines ( ATWOnline, Feb. 1), but US Chairman and CEO Doug Parker remains convinced that the "facts are irrefutable and compelling in favor of consolidation" among US carriers. Speaking to the International Society of Transport Aircraft Trading 24th annual conference in Phoenix Monday, Parker cited the experience of America West Airlines and the old US Airways as evidence of consolidation's benefits.
News from Travel Technology Update: British Airways signed a new three-year agreement with Galileo, the GDS unit of Travelport. It is the first GDS agreement announced by the carrier since its previous pacts expired at the end of February. The new deal, which goes into effect April 10, is basically a "continuation" of Galileo's travel agency opt-in program that was launched in 2004, according to the carrier. The program gives Galileo subscribers in the U.K. and Ireland access to all publicly available fares, provided they opt in to the program.
CSA Czech Airlines released its full-year results Friday, confirming last week's report of a CZK397 million ($18.5 million) loss ( ATWOnline, March 9), narrowed from a CZK496 million deficit in 2005. Revenues rose 5.9% to CZK23.48 billion and expenses fell 1.5% to CZK23.59 billion. CSA said it achieved cost reductions by "centralizing its purchasing and by re-bidding tenders for outsourced services," such as switching insurance brokers and ground handlers at foreign airports.
Atlas Air and Polar Air Cargo parent Atlas Air Worldwide Holdings posted net income of $59.8 million for 2006, down 19.1% from $73.9 million earned in the prior year, on an 8.6% decrease in revenue to $1.48 billion. But the company reported a 66.2% fourth-quarter profit gain to $45.7 million and projects strong growth going forward, pointing to 12 747-8 freighters it has on order and a partnership deal with DHL that will see the express cargo giant take a stake in Polar ( ATWOnline, Oct. 17, 2006).
SkyWest Airlines parent SkyWest Inc. announced a plan to repurchase 5 million shares of outstanding common stock, saying it is "a good use of financial resources and. . .will further the advancement of certain corporate objectives." The company reported a 29.9% rise in 2006 net income to $145.8 million ( ATWOnline, Feb. 8).
Gulf Air named former Galileo International executive John Matthews manager-global distribution system strategies and former Alitalia Commercial Web Development Manager Nicola Simionato e-commerce manager.
Continental Airlines flew 6.48 billion RPMs in February, up 7.6% from the year-ago month. Capacity rose 6.2% to 8.42 billion ASMs, lifting load factor 1 point to 77%. Domestic RPMs climbed 5.8% to 3.19 billion against a 6.2% lift in ASMs to 3.96 billion, dropping load factor 0.3 point to 80.7%. International RPMs grew 11.1% to 2.56 billion, ASMs were ahead 7% to 3.5 billion and load factor rose 2.7 points to 73.2%.
Citing strict cost control and increased revenues mainly from customers outside Lufthansa Group, Lufthansa Technik Group reported net income of €153.1 million ($167.6 million) in 2006, a healthy 17.7% increase compared to the €127.6 million earned in 2005. Revenues rose 9.4% to €3.4 billion, with revenues from group airlines ahead 5.1% to €1.4 billion, representing 40% of total sales. Revenues generated from external customers grew 12.5% and represented 60% of sales, up from 58.3% in 2005.
Caribbean Star Airlines negotiated a merger agreement with LIAT, an Antigua-based carrier that has been in business for 50 years. The airlines announced their intentions in October ( ATWOnline, Oct. 12, 2006). Stanford Financial Group, which owns Caribbean Star, will lend $55 million to LIAT's shareholder governments (Antigua and Barbuda, Barbados and St. Vincent and the Grenadines) intended to liquidate the airline's liabilities and provide working capital.
The restructuring of its long-haul network, lack of fuel hedges and other "extraordinary effects" created an environment in which "it proved impossible to achieve a positive result," according to Austrian Airlines Group CEO Alfred Oetsch, whose company reported a widened net loss of €49.1 million ($64.5 million) for 2006 compared to a €29.6 million deficit in 2005.
AirTran Holdings extended the deadline on its offer to Midwest Air Group shareholders in hopes the two sides will reach a deal. The $345 million stock and cash exchange offer was due to expire yesterday but was pushed back to April 11. Meanwhile, AirTran continues its campaign to win over Midwest shareholders and has nominated three candidates for Midwest's board, none of whom are connected to either airline but who have experience in "corporate business issues," Senior VP, General Counsel and Secretary Richard Magurno told ATWOnline.
Cathay Pacific Airways CEO Philip Chen will step down effective July 1 to lead Swire Pacific's China investment strategy as chairman of John Swire & Sons (China), Swire and CX announced yesterday. Chen will be replaced as CEO by COO Tony Tyler, who has been with the airline since 1978. Chen will remain on the board as nonexecutive deputy chairman. "The appointments open up new horizons for me to help drive the group forward in areas that hold the greatest potential," he said. Swire Pacific Executive Director and Swire Beverages MD John Slosar will succeed Tyler as COO.
DayJet yesterday announced the receipt of $50 million in capital resulting from the completion of its third round of private equity financing. The company said the money will allow it to launch its delayed on-demand VLJ service, to be based in Florida, in the second quarter ( ATWOnline, June 15, 2006).
Lufthansa Group, as projected in last month's earnings preview, posted record net income of €803 million ($1.05 billion) for 2006, a 77.3% increase over net income of €453 million in 2005, on a 9.9% lift in revenue to €19.85 billion, its highest-ever annual total.
IATA DG Giovanni Bisignani opened this week's World Cargo Symposium in Mexico City by pointing to "concerns" raised by cargo operators' heavy investment in Asia, including imbalanced trade flows, overcapacity and China's lack of standardized business practices. He noted that rapid growth in China and surrounding markets is driving air cargo's strong expansion rate, expected to average 6% annually over the next 20 years, but said, "Asia is exporting more than it is importing. . .So the planes are full leaving Asia but half empty coming in.
CSA Czech Airlines reported a 2006 net loss of CZK397 million ($18.5 million), lower than the forecast CZK493 million loss and narrowed from a CZK496 million deficit in 2005, the Associated Press reported. CSA expects to return to the black in 2007 with a CZK42 million profit. Separately, the airline said it will lease an A310 to Air India for one year.
The pilot of the Garuda Indonesia 737-400 that crashed in Yogyakarta said a major, unexpected downdraft caused the accident, according to the president of the Garuda Pilots Assn.
Finnair yesterday made the first firm commitment for the new A350 XWB powered by the Rolls-Royce Trent XWB, signing a contract for 11 of the type along with a flexible mix of seven A330s and A340-300s.
Australian Transport Minister Mark Vaile conceded that some Qantas jobs may head offshore if the carrier's sale to Airline Partners Australia goes through following the receipt of government approval Tuesday. He also told viewers of the National Nine network that the government would not "micromanage" the new owners. Meanwhile, controversy over the government's refusal to extract job guarantees from APA continued ( ATWOnline, March 7).
Accommodations Plus International of New York signed a multiyear deal with JetBlue Airways to provide hotel accommodations and services for crewmembers. API also will furnish an integrated crew management system transferring crew information from the airline to hotel and transportation partners.
British Airways said at its Investor Day yesterday that the impact of August's terror alert, fog, baggage belt failures at London Heathrow and January's planned cabin crew strike will cost it £200 million ($385.1 million). CFO Keith Williams also revealed that the sale of BA Connect to Flybe ( ATWOnline, March 6) will cost the carrier an additional £130 million, including £96 million in cash paid to Flybe.
JetBlue Airways yesterday named Russell Chew COO effective March 19. Formerly COO at US FAA and before that MD at American Airlines, Chew had been named executive VP-operations at Hawaiian Airlines less than a month ago ( ATWOnline, Feb. 13).
GE Aviation signed a five-year OnPoint Solutions maintenance agreement with North American Airlines covering CF6-80C2s powering five 737-300ERs. Deal is valued at more than $20 million.
Copa Holdings, parent of Copa Airlines and AeroRepublica, said it posted record net income of $134.2 million in 2006, up 61.7% from $83 million the prior year, on a 39.9% jump in revenue to $851.2 million. "We continue to see solid economic growth in the region and we continue to see solid passenger growth," CFO Victor Vial said. Fourth-quarter net income was $41.8 million, more than double the $17.7 million earned in the year-ago quarter. Full-year operating income jumped 51.8% to $166.9 million from $109.2 million in 2005.
LAN Airlines' board approved a capital increase of 22.1 million ordinary shares this week, replacing the increase of 7.5 million shares approved in January ( ATWOnline, Jan. 4). Proceeds will help finance LAN's fleet expansion, comprising five unidentified long-haul aircraft, four freighters and 15 A320 family aircraft scheduled for delivery through 2011.
