Hainan Airlines expects its profit for the first six months of 2006 to soar by an estimated 750% over the CNY20.8 million ($2.7 million) in net income it earned in the year-ago period, according to a preliminary announcement released yesterday by the Shanghai Stock Exchange. The carrier credited lower domestic oil prices and the appreciation of the yuan for the performance, but did not elaborate further.
SriLankan Airlines Group, parent of the namesake airline and SriLankan Catering, posted a net profit of LKR862.2 million ($7.7 million) in the financial year ended March 31, marking its fifth consecutive profitable year but a 50% plunge from the prior 12-month period.
Russia's S7 Airlines said it has been negotiating a potential oneworld membership with British Airways. "Members of oneworld alliance are interested in having a reliable partner in the Russian aviation market, which today is one of the most promising and rapid-growing markets," S7 said. "S7 can become such a partner, as it possesses a unique and the most developed route network in Russia." Aeroflot is a member of SkyTeam and AiRUnion, which said it intends to join an alliance by 2015 ( ATWOnline, Feb.
Australian domestic market is heading for intense price competition as Singapore-based Tiger Airways announced more domestic routes and fares for its Australian launch in late November ( ATWOnline, June 29). Tiger's latest route announcement is Melbourne-Launceston with fares starting at A$39.99 ($34.87). Its Australian operation will be based in Melbourne and destinations include Perth, Mackay, Rockhampton, Alice Springs and Darwin.
Four US legacy carriers that announced Monday their intention to compete for the right to operate new routes to China ( ATWOnline, July 17) have been joined by American Airlines, United Airlines and a surprise entrant--all-business-class carrier MAXjet Airways. AA proposed to add a daily Chicago O'Hare-Beijing flight to its daily ORD-Shanghai service beginning March 25, 2009.
Air Canada and Air Canada Jazz flew a combined 4.5 billion RPMs in June, up 2% on the year-ago month. Capacity climbed 1.8% to 5.43 billion ASMs and load factor rose 0.2 point to 82.8%. Singapore Airlines flew 7.51 billion RPKs in June, up 1.7% from the year-ago month, against a 1.4% decline in capacity to 9.11 billion ASKs. Load factor climbed 2.5 points to 82.4%.
Air One parent AP Holding late yesterday withdrew from the bidding for Alitalia, leaving the Italian government scrambling ahead of the July 23 deadline for final offers. According to an AP Holding release cited by widespread press reports in Italy, the company said it determined that turning around the flag carrier would "require different acquisition conditions that would make possible Alitalia's sustainable and competitive growth." It did not elaborate, and the government did not release a statement last night.
Continental Airlines, Delta Air Lines, Northwest Airlines and US Airways yesterday launched formal bids to operate new services to China that will become available as the result of the expanded aviation agreement with the US signed last week. The US Dept. of Transportation will award six new routes between 2007 and 2009 ( ATWOnline, May 24) and each of the aforementioned carriers filed official applications yesterday.
Magellan Group and Mercury Aviation Partners signed an MOU to create M&M Services, a 50/50 joint venture LLC that will build an operating lease portfolio of "mature aircraft subject to lease with part-out being the long-term goal for each aircraft." M&M said it plans to acquire up to $100 million worth of aircraft such as 737 Classics, 757s, 767s, A320s, ATR 42/72s, Dash 8s and Brasilias.
Chinese carriers posted a collective profit of CNY900 million ($118.7 million) in the first four months of 2007, reversed from a net loss of CNY4 billion in the year-ago period, according to CAAC statistics. CAAC cited an "effective cost-saving" policy as the main reason for the improved performance.
United Airlines yesterday said it will accept applications for approximately 100 new pilot positions expected to be filled this year--the first such additions since 2001. "We're investing in our business, and our expansion in international markets enables us to add to our team," VP-Flight Operations Hank Krakowski said. New hires will begin training at UA's Denver training center as early as October and are scheduled to be flying by year end, the airline said.
Virgin Blue announced the A$61 million ($53.1 million) purchase of a "campus-style" development in Brisbane to serve as its new national headquarters. The development is scheduled to be completed next March.
Astar Air Cargo Chairman. President and CEO John Dasburg yesterday said that ABX Air has not yet responded to Astar's "indication of interest" in acquiring its fellow DHL subservice carrier for $450 million in cash and set a deadline of the close of business July 18 for a response.
Etihad Airways and Abu Dhabi Commercial Bank signed a $180 million sale and leaseback facility that will finance the acquisition of two A330-200s, the Arab Air Carriers Organization reported. The facility is structured as a lease with repayment spread over 12 years and a terminal balloon payment of 30% upon final maturity. Ethiopian Airlines leased two 235-seat 767-300ERs from Deutsche Structured Finance. Lease agreement is for six years effective May 31. The aircraft joined the fleet on June 1 and July 7.
Alaska Airlines flew 1.72 billion RPMs in June, a 4.9% increase from the year-ago month. Capacity was up 5.2% to 2.12 billion ASMs and load factor down 0.2 point to 81.3%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.63 billion RPMs in June, up 14.5% on the year-ago month, against a 15.9% climb in ASMs to 1.99 billion. Load factor slipped 1 point to 81.7%.
Air France KLM confirmed yesterday that it is looking at Iberia as a possible merger target as it revealed its aspiration to participate in Europe's continuing airline consolidation.
Pakistan International Airlines reported a PKR3.95 billion ($65.4 million) loss in the first quarter, widened from a PKR3.08 billion loss in the first three months of 2006. Revenue climbed 5% to PKR17.68 billion against a 6.5% increase in costs to PKR20.18 billion.
SITA signed an agreement with the Saudi Arabian General Authority of Civil Aviation to automate passenger and baggage processing for foreign airlines' departing passengers at Jeddah, Riyadh, Dammam and Medina airports. SITA valued the five-year program, including installation of departure control, passenger check-in and baggage management systems, at $16.8 million.
Skyways Aviation, working on behalf of Sky Wings Airlines of Greece, placed an MD-82 on ACMI lease with Air Moldova. Aircraft was delivered May 15 and is operating on a five-month contract.
Calling it "the largest investment in the company's history," LAN Airlines last week announced that the board of directors decided to purchase 26 787s and acquire an additional six on lease. The commitment, which also includes 10 options, will require an investment of $3.2 billion and would make the carrier Latin America's largest Dreamliner operator. LAN said it will take delivery between 2011 and 2016 and that the options will be available in 2017 and 2018. Type and engine were not announced.
Air Madagascar is expecting a year-over-year passenger increase of least 10% in 2007, CEO Ulrich Link told ATWOnline. "About one-third of our total of 600,000 passengers comes from international routes," Link said, adding that the carrier achieves load factors of up to 95% on some international services. For example, he said it enjoyed a "perfect" start on its new weekly Antananarivo-Marseille service. MD is looking to expand on that success with increased strategic cooperations and is contemplating joining SkyTeam as an affiliate.
British Airways flew 10.08 billion RPKs in June, down 1.4% from the year-ago month, as capacity rose 0.4% to 12.51 billion ASKs and load factor slipped 1.4 points to 80.5%. Midwest Airlines and Midwest Connect flew a combined 447.4 million RPMs in June, up 18.4% from the year-ago month. Capacity climbed 15.4% to 518.3 million ASMs and load factor was up 2.2 points to 86.3%. Yield fell an estimated 5.4% year-over-year to 14.2 cents and unit revenues dropped an estimated 2.9% to 12.2 cents.
Ryanair has been told by Italian authorities that it must transfer its Rome operation to Fiumicino from Ciampino, Transport Minister Alessandro Bianchi told Thomson Financial. Regional authorities reportedly decided to reduce daily operations at CIA to 100 flights from 138 effective with the next winter schedule. Biancho told TF that CIA's annual passenger throughput has risen to 5 million from 800,000 in the past five years and that neighboring airports at Latina, Viterbo and Frosinone are being studied as possible alternatives.
