The Chinese government is considering an injection of up to $2 billion into the country's three major airlines to address balance sheet debt problems brought on by high fuel prices. Sources in the government confirmed to ATWOnline the existence of a financial injection plan, first revealed in the Asian Wall Street Journal.
Alaska Airlines and regional affiliate Horizon Air will spend $18 million to bring the Airport of the Future check-in concept to Seattle-Tacoma International by the end of 2007. The company, which introduced the concept in 2004, said it will eliminate traditional ticket counters at the airport and replace them with "customer-friendly islands of check-in kiosks and bag-check stations." The design will allow passengers "to get from curbside to planeside in record time," Alaska VP-Real Estate Ed White said.
Airbus said it reached agreements this week to sell 26 A330-200 freighters, with 20 going to US lessor Intrepid Leasing and six to India's Flyington Freighters, marking the first sales of an aircraft type launched last summer.
China Southern Airlines said it carried 49.21 million passengers last year, up 11.5% over 44.12 million carried in 2005. In addition, China's largest airline added 64 new aircraft in 2006, bringing its total fleet to 298 planes. SN Brussels Airlines and Virgin Express, which will merge into Brussels Airlines on March 25, carried a combined 5.94 million passengers in 2006, up 8% over the combined total in 2005.
AirAsia could be the next major takeover target in Asia, according to the Centre for Asia Pacific Aviation. "The Asian market is a fertile breeding ground for investor opportunities, with equal doses of liberalization and new travelers opening up massive traffic expansion opportunities," CAPA Executive Chairman Peter Harbison said. "AirAsia has the attractions of a large and expanding market share, the lowest airline costs in the world, a brand name to die for, and unquestionable recent profitability."
Former Swissair executives and board members went on trial yesterday for their alleged roles in the historic 2001 collapse of the airline, the largest bankruptcy in Switzerland's history. Nineteen executives, including former CEOs Philippe Bruggisser and Mario Corti, will mount their defense in a Swiss court near Zurich, responding to a 100-page charge sheet submitted by prosecutors that includes accusations of false accounting and unlawful management.
British Airways is holding critical talks with representatives of the Transport & General Workers Union following Monday's vote by the union's cabin staff in favor of industrial action that could begin as early Jan. 31. T&G, which represents more than 20,000 BA employees, including 11,000 flight attendants, said that more than 8,000 cabin crew, or 96%, voted in favor of a series of three-day walkouts to protest sick leave policies, pay grading and onboard staffing levels.
Aeroflot announced that it increased its share in its OJSC Aeroflot-Don subsidiary from 51% to 100%. Aeroflot-Don, based in Rostov-on-Don, carried 600,000 passengers in 2006 and has a fleet of 15 aircraft including 737-500s and Tu-154s.
Claiming that US Airways' bid for Delta Air Lines "represents a clear and present danger to the careers of all Delta employees," MEC Chairman Lee Moak told Air Line Pilots Assn. members in a letter last week that the MEC pledged to spend $15 million in an effort to derail the takeover, which he said "simply ignores the implications of our contract."
British Airways' hopes to resolve its pension deficit issue were dashed Friday when the GMB Union rejected its latest proposal, which included a one-time company contribution of £800 million ($1.55 billion) into its New Airways Pension Scheme and annual contributions of about £280 million for the next 10 years subject to the unions' acceptance of benefit changes.
Cathay Pacific Airways flew 6.33 billion RPKs in December, a 4.6% increase over the year-ago month. Capacity climbed 3.3% to 7.8 billion ASKs and load factor rose 1 point to 81.2%. Delta Air Lines flew 9.44 billion system RPMs in December, a 3.5% rise over the year-ago month. Capacity grew just 0.2% to 12.12 billion ASMs, lifting load factor 2.5 points to a December record 77.8%. Domestic RPMs fell 4% to 6.59 billion against a 7.3% decline in capacity to 8.46 billion ASMs, raising load factor 2.7 points to 77.9%.
TUIfly is scheduled to launch services under its new name today. The carrier is the result of the merger announced last month of Hapagfly and Hapag-Lloyd Express, whose brands will disappear from the market ( ATWOnline, Dec. 18, 2006). TUIfly expects to fly 13.5 million passengers in 2007, up 22% from the number transported by HLX and Hapagfly together last year.
Northwest Airlines plans to emerge from Chapter 11 as an independent company in the second quarter and to eliminate unsecured debt by paying unsecured creditors with common stock in the reorganized carrier, according to its reorganization plan filed Friday.
AirTran Holdings yesterday launched an exchange offer for shares of Midwest Air Group, announcing it would pay $13.25 including $6.25 in cash and 0.5884 shares of AirTran stock for each outstanding Midwest share. The new offer values the Milwaukee-based parent of Midwest Airlines at $345 million and represents an 18% hike compared to AirTran's previous offer of $11.25 per share or $290 million.
Tiger Airways secured a $100 million loan facility to finance pre-delivery deposits for eight new A320s on order ( ATWOnline, Oct. 18, 2006). The facility was arranged and underwritten by BNP Paribas. Deliveries are scheduled for 2008-10.
Northwest Airlines reported a $274 million net loss in November but a positive operating result of $52 million. Revenues were $981 million and expenses came to $929 million. American Airlines parent AMR Corp. announced that its 4.5% Senior Convertible Notes due 2024 have become convertible into shares of AMR common stock.
British Airways said it will change its baggage policy from Feb. 13 by placing restrictions on the number and size of bags that can be checked and charging customers fixed fees of up to £120 ($232) per excess bag.
CAE received an order for two A320 and two 737NG Level D full-flight simulators valued at C$52 million ($44.2 million) from Flight Simulation Co. of the Netherlands. Delivery is scheduled for the second half of this year.
DaimlerChrysler will sell a 7.5% stake in Airbus parent EADS to a consortium that reportedly includes Deutsche Bank, Commerzbank, KfW and Goldman Sachs. A company spokesperson told German media this week that an agreement had been reached and "final details" were being settled. DaimlerChrysler will hold a 15% stake in EADS after the sale, which is expected to net nearly $2 billion.
Iberia flew 4.28 billion RPKs in December, an 11.6% increase from the year-ago month. Capacity climbed 3.8% to 5.45 billion ASKs and load factor rose 5.5 points to a December record 78.5%. Air Canada and Air Canada Jazz flew a combined 3.9 billion RPMs in December, up 6.7% from the year-ago month. Capacity grew 4.5% to 4.98 billion ASMs, lifting load factor 1.6 points to 78.3%. Copa Airlines flew 398.5 million RPMs in December, up 30% from the year-ago month. Capacity rose 24.1% to 502.1 million ASMs and load factor was ahead 3.6 points to 79.4%.
WestJet yesterday finalized a term sheet with Singapore Aircraft Leasing Enterprise to lease two 737-700s for delivery in July and August 2009. Meanwhile, the LCC suspended its aiRES contract, saying it hopes to negotiate new installation terms with aiRES provider Travelport but conceding it may have to scrap the system altogether.
SR Technics opened a line maintenance station at Paris Orly with Air Caraibes as the first customer. SRT said "easyJet and further customers are expected to follow soon." The station will offer services for A320s, A330s, A340s, 737s and a variety of engines.
AirCell named Frances Phillips senior VP-airline solutions. She most recently was at Connexion by Boeing. US Airways promoted MD-Inflight Services Sherri Shamblin to VP-inflight services, succeeding the retired Ron Cole. SITA named Rob Watkins regional VP-sales and relationship management for Northern Europe.
