Saudi Arabian Airlines is negotiating with both Boeing and Airbus to buy up to 60 aircraft worth up to $12 billion, London's The Business reported. The purchase should bolster its current fleet of 139 planes. Local sources said Saudi Arabian, which is government-owned, is expanding rapidly and needs a variety of new aircraft. Press reports indicate the order will be split between the two manufacturers but delivery will not happen in time for the carrier's proposed flotation in 2008 ( ATWOnline, Aug.
Southwest Airlines flew 5.51 billion RPMs in December, a 10.3% increase over the year-ago month. Capacity was up 8.3% to 7.99 billion ASMs and load factor rose 1.3 points to 68.9%. US Airways Group flew 5.09 billion consolidated RPMs in December, up 4.8% from the year-ago month. Capacity inched up 0.4% to 6.75 billion ASMs and load factor rose 3.2 points to 75.4%. Domestic RPMs climbed 4.4% to 4.29 billion and capacity was level at 5.68 billion ASMs. International traffic was ahead 6.9% to 799.6 million RPMs against a 2.4% gain in capacity to 1.07 billion ASMs.
AirBridge Cargo last week became the 22nd member of the Cargo 2000 alliance. It is the first Russian carrier to join the group. AirBridge serves both Moscow airports, Krasnoyarsk, Frankfurt, Amsterdam, Shanghai, Beijing, Hong Kong and Nagoya. Parent Volga-Dnepr Group VP Stan Wraight said ABC will add three new 747-400ER freighters in 2007 and 2008 and launch service to Toronto and Houston later this year.
Northwest Airlines said Friday that it has reached an agreement to acquire its regional Airlink partner Mesaba Airlines. The offer must be approved by the bankruptcy court and Mesaba parent MAIR Holdings. Both Mesaba and Northwest have been in bankruptcy for more than a year. Mesaba operates a fleet of 46 Saab 340s as an Airlink partner.
FlyAsianExpress will operate flights to destinations in Asia and Europe as AirAsia X, a new long-haul, low-cost carrier launched Friday by AirAsia CEO Tony Fernandes, who owns 50% of FAX, a small Malaysian domestic airline that operates seven 50-seat F50s and five 19-seat Twin Otters on short-haul routes.
Italian government's offer to cede control of Alitalia ( ATWOnline, Dec. 7, 2006) has domestic media buzzing about potential suitors. Finanza Mercata said Air France KLM, which always has been considered a potential buyer, will join with SkyTeam partners Korean Air, AeroMexico and CSA Czech Airlines to bid for AZ.
Sama, a Saudi Arabian startup, said it was granted an operating license by the civil aviation authority ( ATWOnline, Aug. 28, 2006). The airline plans to offer 737-300 service throughout the country and eventually to destinations in the Middle East. It has no plan to operate long-haul routes. "Our priority is to serve as many cities in Saudi Arabia as we can with up to 35 aircraft over the next few years," board member Hatim Mouminah said on the carrier's website.
Delta Air Lines is seeking permission from the US Bankruptcy Court to finalize an order with Bombardier for 30 firm CRJ900s plus 30 options that it said will be used to expand its network and upgrade service, according to documents filed yesterday with the court. The aircraft are scheduled to begin arriving in September with deliveries continuing through February 2010. They will be configured for 76 seats in two classes. The manufacturer "has committed to provide, or cause to be provided, firm backstop financing for Delta's purchase of the aircraft," the airline said.
FlyAsianExpress yesterday received approval from the Malaysian government to operate low-cost long-haul service to Asia, Australia and Europe, the national Bernama news agency reported. FAX, which is 50% owned by AirAsia CEO Tony Fernandes, reportedly may partner with the larger LCC to offer the service. Rumors of a tie-up with Virgin Atlantic Airways and/or easyJet have been denied ( ATWOnline, Jan. 4).
Asiana Airlines reportedly will add both Airbus and Boeing aircraft to its fleet, but press reports yesterday differed on whether the acquisitions involve purchased and/or leased planes. The Associated Press said the Korean carrier agreed to purchase two 777-300ERs, two A321-200s, one A320-200 and one A330-300 and that it is "considering ordering two additional planes from the [A320] family this year," according to an Asiana spokesperson.
American Airlines flew 11.36 billion system RPMs in December, down 1.1% from the year-ago month. Capacity fell 1.3% to 14.35 billion ASMs and load factor rose 0.2 point to 79.1%. Domestic RPMs were down 1.9% to 7.4 billion against a 2.2% decline in capacity to 9.22 billion ASMs. Load factor climbed 0.2 point to 80.2%. International traffic rose 0.4% to 3.95 billion RPMs, capacity was up 0.3% to 5.13 billion ASMs and load factor inched up 0.1 point to 77%. British Airways flew 9.12 billion RPKs in December, a 0.5% drop from the year-ago month.
Pegasus Aviation Finance of California ordered two A350 XWBs and six A330-200s in a deal representing the lessor's first Airbus order and the first public commitment to the new A350 since the program was relaunched last month ( ATWOnline, Dec. 4, 2006).
AirAsia is expected to place another large order for A320s, possibly as early as today. Sources confirmed to ATWOnline that the airline will double its A320 fleet; it operates 15 and has 70 on order ( ATWOnline, July 20, 2006). Part of the pending buy will be the exercise of existing options. The LCC also has 35 737-300s in service that all will be replaced by A320s.
Malev Hungarian Airlines acquired a Mechtronix FFS X Non Zero Flight Time simulator for recurrent pilot training at Budapest Ferihegy. Malev said it is the first FFS X operating in Europe.
ATR delivered an ATR 72-500 equipped with IFE to Kingfisher Airliners. The IFE equipment, provided by Vision Systems of France, features 17 drop-down LCD screens.
Assn. of European Airlines announced that Iberia Chairman and CEO Fernando Conte will chair AEA in 2007. Conte headed the oneworld governing board for two-plus years before being succeeded by Qantas's Geoff Dixon in October ( ATWOnline, Oct. 20, 2006).
Vietnam Airlines posted an estimated VND304.5 billion ($18.5 million) profit in 2006, 8% below the carrier's guidance, according to VietNamNet. Year-ago figures were unavailable. Revenues were VND17.5 trillion and passenger numbers climbed 17.2% to 6.8 million. The airline said oil prices that surged 18% higher than expected and high airport fees contributed to the profit shortfall.
Boeing Commercial Aviation Services and Goodrich Aerostructures Service Center Europe reached an agreement to perform thrust reverser component MRO on 737NGs and 777s. The Goodrich site is in Prestwick.
AirAsia is planning to establish a long-haul budget airline, according to local press reports, through regional affiliate FlyAsian Xpress, in which AirAsia CEO Tony Fernandes holds 50%. AirAsia Executive Director Kamarudin Meranum holds a 30% stake in FAX and Raja Azmi, AirAsia's former CFO and current FAX CEO, owns the rest. FAX flies throughout east Malaysia using seven F50s and five Twin Otters. For the moment, all of its flights are domestic, but according to its website, "it will extend services to international destinations in the future."
Air Madrid, which declared bankruptcy and suspended operations last month ( ATWOnline, Dec. 18, 2006), was unable to reach a rescue deal with Germany's LTU but remains confident a buyer will emerge, according to Spanish press reports cited by AFX News.
Indian airlines are preparing for INR180-200 million ($4.1-$4.5 million) in combined losses resulting from days of heavy fog in Delhi, according to The Economic Times. Runway visibility was down to 100 m. as 35 arrivals and 50 departures were cancelled Tuesday, with another 61 diverted. The three-day total of cancellations and diversions reached 300, the paper said. Air Deccan said it has canceled 15-20 flights on each of the past three days and faces losses of more than INR40 million.
Continental Airlines, the highest earning US carrier in the 2006 third quarter with $237 million in net income, said it expects to report a "modest loss" for the fourth quarter, adding that consolidated RASM likely will increase 4.1%-4.4% with mainline RASM growing 5.5%-6.5%.
ExpressJet Airlines flew 861.1 million RPMs in December, up 5.4% from the year-ago month. Capacity climbed 3% to 1.12 billion ASMs and load factor rose 1.7 points to 77.1%.
Cyprus Airways said it has completed its restructuring process ( ATWOnline, Jan. 11, 2006) and is expecting to turn a profit this year. It lost CYP23.2 million ($53.1 million) in 2005 and has not announced its 2006 results. The carrier cut 500 employees from a staff of 1,800 and implemented salary cuts of up to 25% but in line with an increase in productivity. It also announced the addition of Sofia, Heraklion and Rhodes to its network.
Delta Air Lines reported a $49 million net loss for the month of November, or a $12 million loss excluding reorganization items. The result compares to a $181 million net loss and a $164 million loss excluding reorganization items in November 2005. "November's results continue the momentum that will deliver a nearly $2 billion year-over-year improvement in Delta's net income excluding reorganization items for 2006," VP and CFO Edward Bastian said.
