Delta Air Lines signed an agreement with Bombardier for 30 firm CRJ900s plus 30 options. Firm aircraft are worth $1.1 billion at list prices and the deal's value will increase to about $2.3 billion if all options are exercised. The order was approved by the US Bankruptcy Court. "The acquisition of these aircraft will help Delta meet its network and operational needs for 2007 and 2008," VP-Delta Connection Shawn Anderson said.
Malev Hungarian Airlines will be sold to AirBridge, a Hungarian company backed by Russia's KrasAir, according to a statement from the state privatization agency cited in press reports from Budapest. No information was provided by the agency about the terms of the sale. It marks the seventh time the government has put Malev up for bid. The Russian government holds a 51% stake in KrasAir, according to the Associated Press.
JetBlue Airways said it expects net savings of $30 million over five years by removing six seats, or one row, from each of its A320s ( ATWOnline, Dec. 21, 2006). The figure includes estimated lost revenue. Inflight cabin crew will be reduced to three and aircraft weight will fall 904 lb. Modifications are expected to be completed by March, at which time the cabin will feature 36-in. pitch in rows 1-11 and 34-in.
MAIR Holdings, parent of Mesaba Aviation and Big Sky Transportation, reported a net loss of $1.1 million for the third fiscal quarter ended Dec. 31, narrowed from a loss of $4.5 million in the year-ago period. Operating revenues fell sharply to $6 million from $21.2 million and expenses dropped to $8.4 million from $28.8 million. "This quarter aptly illustrates the complexity of our industry," MAIR President and CEO Paul Foley said. Mesaba Aviation reported a net loss of $30.8 million for the quarter compared to net income of $636,000 in the year-ago quarter.
Qantas scotched rumors that it is contemplating cutting its investment in Singapore-based Jetstar Asia Airways. Qantas CFO and Jetstar Asia Chairman Peter Gregg said in a statement that "Jetstar Asia is, and will continue to be, an important part of the Qantas Group's diversification strategy." Local press reports have expressed concerns over the airline's future following a number of operational cancellations and claims regarding pilot shortages.
Qantas yesterday delivered relatively good news to the Airline Partners Australia consortium bidding for the flag carrier, raising its profit forecast and reporting a A$358.5 million ($278.7 million) net profit for the six months ended Dec. 31, a 1.7% increase from the A$352.6 million earned in the year-ago period.
A sharp improvement in earnings toward the end of the year, boosted mainly by the November sale of its 65% holding in the Rezidor Hotel Group, drove SAS Group's full-year 2006 net profit to SEK4.74 billion ($676 million), significantly widened from net income of SEK255 million the prior year.
Pakistan International Airlines posted a PKR9.19 billion ($150.7 million) loss in 2006, Chairman Tariq Kirmani said at a press conference in Karachi, according to news reports. Comparison to 2005's final result was not provided, but he did say that revenue rose 10% to PKR70 billion and passenger numbers climbed 5.1% to 5.7 million. PIA's year was soured by the July crash of an F27 that killed all 45 onboard ( ATWOnline, July 11, 2006).
Lamar Muse, who co-founded Southwest Airlines with Rollin King and Herb Kelleher and served as its first president and CEO, died Feb. 5 of cancer. He was 86. Muse was hired by King and Kelleher to bring their idea for a Texas intrastate airline from the napkin to the runway.
Volga-Dnepr Group and Motor Sich of Ukraine announced the formation of a joint venture company "to manage the relaunch of serial production of the An-124-100" Ruslan freighter with the aim of developing and producing a new version, "the An-124-100M-150," and increasing the operating life of existing An-124s. Target goals for the new version are increases in payload capacity from 120 to 150 tonnes and in operating life of the aircraft to 60,000 hr. and later to 80,000 flight hr. The flight control system also will undergo significant improvements.
British Airways said yesterday that it reached an agreement with the trustees of its New Airways Pension Scheme to address its £2.1 billion ($4.12 billion) deficit. The accord, which was reached in principle last year but rejected by the GMB Union last month ( ATWOnline, Jan. 15), includes a one-off injection of £800 million, annual company contributions of £280 million for the next 10 years and an additional £150 million over the next three years subject to BA's financial performance.
SkyWest Inc. reported net income of $145.8 million for 2006, a 29.9% increase over the $112.3 million earned for 2005, as revenue soared 58.6% to $3.11 billion. Costs climbed 59.2% to $2.78 billion but operating profit still rose 53.9% to $339.2 million. Numbers would have been more impressive for the parent of SkyWest Airlines and Atlantic Southeast Airlines if not for a 19.2% drop in fourth-quarter earnings to $31.2 million, largely the result of December's weather-related shutdown of Denver International Airport.
Thai Prime Minister Surayud Chulamont ordered Bangkok's Don Muang International Airport reopened to both international and domestic flights in order to prevent overcrowding at the new Suvarnabhumi International.
Flybe said the UK Office of Fair Trading approved its acquisition of British Airways regional subsidiary BA Connect ( ATWOnline, Nov. 6, 2006). OFT asked Flybe to grant access to one of the 13 parking stands it currently uses at Southampton Airport.
A US Bankruptcy Court yesterday approved Delta Air Lines' disclosure statement, clearing the way for the document and DL's plan of reorganization to be sent to creditors for the approval that would allow the carrier to emerge from Chapter 11 protection as an independent company, possibly by late April.
EasyJet reported a 14.9% jump in fiscal first quarter revenue to £366.2 million ($719.3 million) compared to the £318.8 million earned in the three months ended Dec. 31, 2005. The LCC does not release full quarterly results. Passenger numbers were up 9.8% to 8.1 million and revenue per seat rose 4% to £36.79 as passenger revenue climbed 2% and ancillary revenue grew 22% over the year-ago quarter. The airline said it expects a "slight [year-over-year] increase" in passenger revenue in the current quarter.
Air France KLM flew 16.12 billion RPKs in January, up 2.3% from the year-ago month. Capacity rose 2.4% to 20. 4 billion ASKs and load factor was level at 79%.
European Travel Agents and Tour Operators Assns., which comprise associations from 29 countries, once again is calling for a system that will protect passengers from airline failure or default and suggested that it be funded through a €1 ($1.29) contribution per ticket paid by all carriers, including ones from outside the EU, flying to/from an EU airport. ECTAA's effort to establish the passenger protection fund is not new, but recent bankruptcies highlight the need, President Jan Van Steen said.
Ryanair announced yesterday that its 19th base will be at Airport Weeze about 50 mi. north of Dusseldorf. The LCC will invest €140 million ($181.2 million) in the facility, where it will base two new aircraft from June that will operate to 10 destinations. It is expecting to transport 1 million passengers in the first 12 months, rising to 2 million per year from 2008.
Air Berlin said the dba brand will disappear from the market by April 1 once the subsidiary is fully integrated. AB acquired dba last summer ( ATWOnline, Aug. 18, 2006). Dba's network, check-in facilities and administration already have been combined with AB's. The airlines flew a combined 1.2 million passengers in January, up 8.7% from the first month of 2006. Load factor rose 1.9 points to 64.9%.
Slovak Airlines said yesterday that it will enter bankruptcy following majority owner Austrian Airlines Group's decision to take possession of two of its three aircraft ( ATWOnline, Jan. 31). The remaining aircraft, a 737-200, reportedly is not available to fly. An AAG spokesperson told this website that Austrian is expecting a double-digit-million euro loss on its Slovak Airlines investment.
JetBlue Airways spokesperson confirmed to ATWOnline yesterday that the airline is committed to launching an online partnership with Aer Lingus under which the carriers will make their combined networks available to customers visiting their respective websites. The exact nature of the tie-up, which will be unique among low-fare airlines, has not been determined and eventually may include a booking facility or interline agreement. Aer Lingus, which will exit the oneworld alliance on April 1 ( ATWOnline, Feb.
JAL Group's comprehensive restructuring is starting to take effect with the company reducing its loss in its third fiscal quarter ended Dec. 31 to ¥13.0 billion ($107.1 million), narrowed from the ¥20.6 billion deficit in the year-ago quarter. In conjunction with that announcement, JAL released a Medium Term Revival Plan covering the next four years that will include an increased commitment to safety and elimination of 4,300 jobs.
