US Airways Chairman and CEO Doug Parker said yesterday that the assumptions underlying Delta Air Lines' standalone reorganization plan are "out of whack" and that warnings of a US/DL merger being derailed by antitrust issues are "misleading" and "superficial."
Midwest Airlines signed a deal with SkyWest Airlines to operate up to 25 50-seat CRJs in a move that would expand operations and open new markets. The agreement calls for SkyWest to operate 15-25 aircraft over a five-year period, with the first 15 delivered between April and October 2007. The delivery schedule for additional aircraft has yet to be determined.
CFM International said its CFM56-5B Tech Insertion Package was certified by both US FAA and EASA. Aircraft certification is expected to occur early next year.
Delta Air Lines reached agreement with Massport, the airport authority for Boston Logan, to pay off construction debts related to the airport's rebuilt Terminal A, which was constructed exclusively for Delta but not used to the degree originally planned. According to The Boston Globe, DL will give up more than one-third of its 22 gates at the $500 million terminal, which opened in March 2005, leading to speculation about who will enter the new facility.
FedEx reported net income of $511 million for its fiscal second quarter ended Nov. 30, up 8% over earnings of $471 million in the year-ago quarter, on a 10% jump in revenues to $8.93 billion. "Earnings...were better than forecast primarily due to lower-than-expected fuel prices, [strong growth in ground delivery services] and insurance proceeds related to Hurricane Katrina," Executive VP and CFO Alan Graf said.
A380 launch customer Singapore Airlines gave the beleaguered aircraft program a boost yesterday by ordering nine more of the type along with six options, bringing to 19 the number of A380s it has on firm order. The nine new aircraft are worth a combined $2.7 billion. SIA also ordered 11 A320s plus nine options to be delivered to regional affiliate SilkAir from 2009 to 2012 and said it is planning to lease 19 A330-300s. The SilkAir order is valued at $1.33 billion. The regional said it will use the aircraft for flights in Asia.
JetBlue Airways cut its 2007 capacity guidance again yesterday, announcing in a filing with the US Securities and Exchange Commission that it expects to post 11%-14% ASM growth next year rather than the 14%-17% it forecast earlier this month ( ATWOnline, Dec. 5). The figure accounts for the carrier's plan to remove one full row of seats from each of its A320s by March. It expects to be operating 108 A320s and 33 E-190s by the end of next year compared to 96 A320s and 23 E-190s at the close of 2006.
Royal Jordanian selected the 787 as the replacement aircraft for its aging A340s and also decided to add four new A320 family aircraft. RJ President and CEO Samer Majali previously had told ATWOnline that the carrier was considering the 787 as well as the A350 XWB for its future long-haul fleet. It confirmed yesterday that it is negotiating with Boeing and several leasing companies to introduce four or five 787-8s as a first step. It may increase its commitment depending upon how it opts to replace its A310s, which are due to be phased out from 2011.
Delta Air Lines' Official Creditors' Committee declined to give a swift thumbs-up to the airline's proposed Plan of Reorganization and accompanying Disclosure Statement released Tuesday ( ATWOnline, Dec. 20).
Aloha Airlines suffered a $9.9 million loss in the third quarter ended Sept. 30, more than four times greater than its $2.2 million deficit in the year-ago quarter, according to a Bureau of Transportation Statistics filing cited by press reports. The privately held carrier's nine-month loss was $33 million. "During the third quarter Aloha faced a new inter-island competitor [go!] who priced its product below its operating cost.
Alaska Airlines flew 1.4 billion RPMs in November, a 2.5% increase over the year-ago month. Capacity climbed 3.5% to 1.88 billion ASMs, dropping load factor 0.7 point to 74.5%. Air Berlin and its dba subsidiary transported 1.4 million passengers in November, up 8.5% on the year-ago month. Load factor rose 1.1 points to 68.7%. AirTran Airways flew 1.13 billion RPMs in November, up 15.4% from the year-ago month. Capacity climbed 19.1% to 1.63 billion ASMs and load factor fell 2.2 points to 69.2%.
Air New Zealand confirmed the purchase of an additional four 787-9s to meet growth plans over the next decade. The order takes the airline's 787 commitment to eight aircraft plus eight options. The order is a firming up of price rights secured when ANZ ordered eight 777s and two 787s along with 42 price rights in 2004.
AirTran Airways employees threw their support behind the proposed merger with Midwest Airlines. AirTran said a letter addressed to Chairman and CEO Joe Leonard and signed by three unions and two internal employee organizations cited "the common cultures and entrepreneurial spirit" at both carriers and offered "to meet with our counterparts at Midwest" and "to stand together to help make this merger a reality."
If any more cracks appear in their bid to buy Qantas, the Airline Partners Australia consortium members may have to put the deal back in the hangar for an overhaul.
China's civil aviation industry is expected to post bigger profits in 2006 despite a CNY640 million ($81.7 million) loss during the first half due to high fuel prices, China Daily reported. Chinese airlines recorded a CNY5.5 billion profit in the third quarter and enjoyed a 22.2% rise in revenue to CNY65.4 billion on double-digit passenger and cargo growth.
US Airways yesterday dismissed Delta Air Lines' intention to remain a standalone carrier, with US Chairman and CEO Doug Parker saying that DL's reorganization plan (see story above) is nothing more than a "benchmark against which to evaluate the competing proposals" and that it is DL's creditors who remain "the ultimate authority in this process."
Saying that US Airways' $8 billion unsolicited takeover proposal is plagued by "overwhelming" antitrust and labor issues, Delta Air Lines' board of directors formally rejected the offer and submitted its own plan of reorganization that calls for it to emerge from bankruptcy in spring 2007 as a standalone airline with a disciplined cost structure and a heavy emphasis on international flying.
SkyEurope Airlines yesterday confirmed its intention to open a base at Vienna International Airport ( ATWOnline, Nov. 21) just 60 km. from its Bratislava hub, basing two 737-700s at VIE starting March 25 and flying to 16 European destinations.
Los Angeles Board of Airport Commissioners voted unanimously to increase cumulative rents and fees at Terminals 1 and 3 at Los Angeles International to $292.8 million over five years from $76 million, according to press reports. The two terminals serve primarily low-cost carriers, with Southwest Airlines operating the most routes. In addition, maintenance fees will double, the Los Angeles Times reported. The increases will go into effect Feb. 1 and will equal a $4.19 increase in cost per boarded passenger to $9.89 in T1 and a $5.45 increase to $11.60 in T3.
Air France KLM flew 15.54 billion RPKs in November, a 4.1% increase over the year-ago month. Capacity rose 4.2% to 19.8 billion ASKs and load factor dropped 0.1 point to 78.5%. Continental Airlines flew 7.03 billion RPMs in November, up 9.8% from the year-ago month. Capacity grew 7.1% to 8.71 billion ASMs and load factor increased 2 points to 80.7%. Domestic RPMs rose 8.1% to 3.53 billion against a 4.2% increase in capacity to 4.19 billion ASMs, raising load factor 3 points to 84.2%.
Royal Jordanian last week confirmed that the government will proceed with the announced privatization of the carrier next year. The government will sell 74% of the company to the private sector and retain the balance. The shares to be sold to non-Jordanian investors will not exceed 49% in order to maintain traffic rights.
Qatar Airways announced an order for two 777-200 freighters to add to its incoming fleet of 14 777-300ERs and six dash 200LRs ( ATWOnline, Sept. 13). The first freighter will be delivered in 2009 and will be used on long-haul routes to the Far East and Europe. The airline uses A300-600Fs for regional feed into Doha. Deliveries of the entire 777 order will begin next November and continue through the middle of 2010.
Former American Airlines Chairman and CEO Robert Crandall yesterday said that Pogo, the air taxi business he is launching built around very light jets, will begin offering on-demand flights out of small airports in the US Northeast in 2008.
AirTran Airways said it intends to bring new jobs and flights to Milwaukee if its $290 million bid for Midwest Airlines is successful ( ATWOnline, Dec. 15). It said its recent growth--it has added 2,800 jobs in the past five years--compares favorably to Midwest's, which AirTran said has cut 500 jobs during the same period, citing SEC filings. It also has 60 737s on order and said it is preparing to add 3,000 positions in the next five years. Midwest has two MD-80s on order, AirTran said.
