United Airlines announced last week that it refinanced approximately $1 billion in existing leases and mortgages through the issuance of $694 million in Enhanced Equipment Trust Certificates and $270 million in Special Facility Revenue Refunding Bonds at Denver International Airport. It said the proceeds from the debt offerings will refinance existing aircraft lease and mortgage debt associated with 13 widebody aircraft and the existing SFRBs at DEN.
Former Alaska Airlines Chairman and CEO Bruce Kennedy, 68, was killed last Thursday in the crash of a Cessna 182 he was piloting in central Washington State. His death was confirmed Friday by Quest Aircraft Co., where he served as chairman until the accident. He became a director at Alaska in 1972 and served as chairman, CEO and/or president from 1978 to 1991. He oversaw the acquisition of Horizon Air and Jet America and remained chairman emeritus. "Bruce's legacy extends far beyond his storied leadership of this airline," Alaska Air Group Chairman and CEO Bill Ayer said.
Astar Air Cargo last week made an unsolicited "indication of interest" to acquire ABX Air for more than $450 million in cash, calling the potential deal that would combine express delivery giant DHL's two largest US subservice airlines "an opportunity to realize extraordinary value."
Air Canada named Sean Menke executive VP-commercial strategy and Benjamin Smith executive VP-commercial. Air Deccan appointed Anand Ramachandran VP-finance. Air Greenland selected Michael Binzer as MD. Airline Capital Associates welcomed George W. Hamlin as MD. Air Transport Assn. introduced Laura A. McKee as MD-airport affairs. AJ Walter tapped Pierre Bonnichon as dir.-European sales. ATR named Stephane Mayer CEO. Aviapartner chose Andy Cruise as group commercial dir.-business line ground handling.
American Airlines yesterday announced it will accelerate deliveries of six 737-800s into the first half of 2009 in order to speed up replacement of its MD-80s. Three months ago it said it would bring forward the delivery of 47 -800s including three scheduled for 2016 delivery to 2009 ( ATWOnline, March 29). It now plans to take nine aircraft in 2009 under its existing purchase agreement with Boeing. Separately, parent AMR Corp.
RAK Airways, based at Ras Al Khaimah, operated its first flight on June 23, becoming the United Arab Emirates' fourth commercial airline. It currently has one 757 and is in the process of acquiring two or three 737-800s, according to the Arab Air Carriers Organization. First flight was to Turkey, with services to India, Pakistan, Egypt and Lebanon planned from Oct. 1.
Tiger Airways fired the first shots in what is expected to be one of the toughest domestic fare wars yet seen in Australia ( ATWOnline, May 4). Its opening fare of A$80 ($67.29) between Darwin, one of its two current entry points, and its domestic base of Melbourne is one-third the typical fare. The cities are 3,151 km. apart. Jetstar Airways responded immediately with a A$79 offering.
Philippine Airlines yesterday reported net income of $140.3 million for its fiscal year ended March 31, its largest-ever annual profit and a more than sixfold improvement over last year's $22.8 million profit. "These solid results. . .confirm that PAL is fully recovered and is now firmly on track towards long-term profitability," President Jaime Bautista said. "We are consolidating these gains by reinvesting them in the business in order to further improve our products and services, which is critical in shoring up our competitive position in the liberalized aviation milieu."
Assn. of Asia Pacific Airlines' 17 member carriers transported 11.4 million passengers on international routes last month, up 4% year-over-year. RPKs rose 3.2% over May 2006, capacity grew less than 1% and load factor gained 1.7 points to 72.2%. International FTKs increased 4.6% after two months of stagnant growth and capacity was up 3.9%, lifting cargo load factor 0.4 point to 65.9%. Through the year's first five months, passenger numbers were ahead 4.2% to 58.3 million.
EgyptAir subsidiary EgyptAir Express this week launched regional services from Cairo to Sharm El Sheikh and Hurghada using three E-170s. The new regional carrier plans to expand its network to Luxor, Borg El Arab and Marsa Matrouh beginning next month. Three additional E-170s are expected to arrive by September and Express is looking at moving into regional markets such as Jeddah, Amman and Beirut.
Northwest Airlines said yesterday it is "informally meeting" with its pilots union in an effort to resolve a "staffing issue" that has led to numerous flight cancellations ( ATWOnline, June 26).
A TAAG Angola Airlines 737-200 carrying 71 passengers and seven crew crashed yesterday at M'Banza Congo Airport on arrival from Luanda, killing four passengers and one crewmember, according to Flight Safety Foundation's Aviation Safety Network. According to press reports, the aircraft broke apart after hitting the runway and skidded into a house or building. TAAG reportedly was added to the EU's airline blacklist to be published next week, along with all Indonesian carriers and several from Eastern Europe.
LOT Polish Airlines and Boeing will open a training center for pilots and cabin crew in Warsaw, the carrier announced. The facility will be equipped with at least four flight simulators and a cabin simulator. No further details were provided, but LOT did say it would be "the largest and most state-of-the-art facility of this kind in Eastern and Central Europe." It said the agreement resulted from meetings with representatives of Boeing subsidiary Alteon Training at last week's Paris Air Show.
Qantas's announcement Wednesday that it "remained comfortable with its previous guidance that its 2006/07 profit before tax was in line with the average market expectations" ( ATWOnline, June 28) has emerged as a de facto profit upgrade, the fourth this financial year. In March the airline forecast a A$940 million ($790.7 million) pre-tax profit but robust traffic figures have had analysts preparing more bullish earnings.
DHL said it officially completed the previously announced transaction to form a strategic partnership with Atlas Air Worldwide Holdings subsidiary Polar Air Cargo ( ATWOnline, Oct. 17, 2006). DHL is investing $150 million for a 49% stake and 25% of voting rights in Polar.
LAN Airlines announced that its rights offering closed June 17 netted $320 million on the Chilean and US markets ( ATWOnline, March 8). The company placed 19.9 million shares, representing a 6.2% increase of its share count. An additional 2.2 million common shares have not been placed and are reserved for a stock option plan for employees, LAN said.
Qantas sold its 4.2% stake in Air New Zealand, which it acquired in early 2002 in association with the proposed Tasman Networks Agreement that was scuttled by regulators ( ATWOnline, Nov. 16, 2006). QF said it acquired the shares at NZ$2.23 each and sold them at NZ$2.70. Following the sale, it said it "remained comfortable with its previous guidance that its 2006/07 profit before tax was in line with the average market expectations."
Austrian Airlines Group plans to announce an order for 10 long-haul aircraft, with additional options possible, by autumn. "Now we have the latest technical details about the A350. The race will be between the A350 and the 787," CEO Alfred Oetsch told ATWOnline last week in Chicago. The new long-haul aircraft will replace the current fleet of six 767-300ERs and four 777-200ERs in the 2013-2015 timeframe. Oetsch said the carrier is not in a hurry.
WestJet, which launched its first scheduled Caribbean service with Toronto-Nassau flights last November, announced additional international operations yesterday, with new seasonal flights planned from YYZ to Montego Bay, Puerto Plata and Punta Cana. The destinations are part of an expanded schedule that includes increased winter service to Hawaii and the launch of a number of routes, including daily YYZ-Los Angeles service from Dec. 15.
Three weeks after insisting it would see the process through to the end, Aeroflot yesterday announced it would withdraw from the bidding for the Italian government's stake in Alitalia.
Southwest Airlines said yesterday that it will slow its growth to contend better with weak economic conditions and fuel costs, lowering capacity growth to 6% from 8% for the 2007 fourth quarter and full-year 2008, dropping unprofitable routes, adding new ones (including five new destinations from Denver) and taking delivery of 19 net aircraft next year instead of the previously planned 34. Additionally, in what may be a bid to win more business fliers, it will unveil a new "boarding/seating method" in the fourth quarter, replacing its open seating policy.
Tiger Airways' impending entry into the Australian market ( ATWOnline, May 30) is altering the dynamics of the country's route structure. This week, Qantas low-cost subsidiary Jetstar Airways announced plans to operate on the major Sydney-Brisbane route from December. The move represents a departure from the convention of not linking major capital city airports, a policy that protected QF from direct competition.
