Qantas confirmed to ATWOnline that it is considering an equity stake in Vietnam's Pacific Airlines, which is relaunching as a low-cost carrier with fares as low as $1. Pacific is majority owned by Vietnam's Ministry of Finance, which wants to sell 30% to a foreign airline. Pacific was positioned as a "value airline" with fares 25% below Vietnam Airlines, but the success of LCC competitors like AirAsia has prompted a rethink.
Korean Air said yesterday that it posted a 2006 net profit of KRW344.7 billion ($363.7 million), a 72% increase over the KRW200.4 billion earned in 2005, the Associated Press reported from Seoul. Sales climbed 6.5% to a company-record KRW8.08 trillion and operating profit rose 15% to KRW497.4 billion. "Despite high oil prices, demand for travel to foreign countries increased," KE said in a regulatory filing cited by AP. Foreign exchange gains also were a factor in the result.
Air Arabia applied to UAE economic and regulatory authorities for approval to launch an IPO this quarter, becoming the first airline in the Gulf region to go public, according to the Arab Air Carriers Organization. SHUAA Capital of Dubai was appointed financial adviser.
AirTran Holdings went to court yesterday in an attempt to force Midwest Air Group to release its list of shareholders. AirTran claimed that Midwest management is withholding the list in an attempt to thwart AirTran's effort to present its takeover offer ( ATWOnline, Jan. 19), and it asked the New York State Supreme Court to direct Midwest to show cause as to why it is not complying with state law. A hearing is set for Jan. 30.
Goodrich said it now is capable of offering total nacelle support for the GEnx and that the service will be available to GE OnPoint Solutions customers via a marketing agreement with GE-Aviation.
AeroSvit Airlines named Aron Maiberg DG. He has been with the carrier since 1994, when it launched with one aircraft. AeroSvit now operates 11 737s and two 767s on 12 Ukrainian and 60 international routes. The airline said it intends to triple its fleet by 2011.
Aer Lingus could be facing industrial action after CEO Dermot Mannion warned in a letter to union employees that they must accept new work rules because the airline is facing "commercial challenges and threats that are unprecedented in the history of the company." In the letter, widely reported by the Irish press, Mannion stated that EI's costs are out of line compared to its competitors in "some critical areas," adding, "Given our significant growth and expansion plans, this is no longer sustainable."
Airbus announced yesterday that Spirit Airlines finalized an order for 30 A319s last month that along with a previous order for seven A319s and seven A321s will more than double the budget carrier's fleet. The 144-seat, two-class aircraft will be powered by IAE V2500s and deliver from October 2009 through mid-2013. Rolls-Royce said its share of the engine order is worth $200 million. Spirit currently operates 25 A319s and six A321s from its Fort Lauderdale hub, a mix of purchased and leased aircraft.
MAIR Holdings' deal with Northwest Airlines announced Monday ( ATWOnline, Jan. 23) will see bankrupt Mesaba Airlines become a wholly owned subsidiary of NWA under a stock purchase and reorganization agreement. Mesaba said it intends to emerge from Chapter 11 this spring, having reduced annual costs by $68 million. It will have a $145 million unsecured claim in NWA's bankruptcy case in exchange for the entirety of Mesaba's new common stock.
United Airlines parent UAL Corp. reported net income of $25 million for the 11 months after it exited bankruptcy on Feb. 1, 2006, a turnaround from a net loss of $398 million excluding reorganization items for the corresponding 11 months in 2005 when it was operating under Chapter 11 protection.
Finnair will report a negative operating result for 2006 "due to costs from structural arrangements and changes in fuel derivative market value," CEO Jukka Hienonen said yesterday. He cited a €100 million ($129.6 million) year-over-year increase in fuel costs and more than €15 million in one-off costs from Finnair Technical Division, "which had a hard year," he admitted. "The year 2006 will be an interim year in Finnair's result development," he said at an industry forum in Kirkkonummi.
Alaska Airlines flew 1.47 billion RPMs in December, a 2% increase over the year-ago month. Capacity climbed 3.1% to 1.96 billion ASMs and load factor fell 0.8 point to 75.1%. LAN Airlines flew 1.93 billion RPMs in December, a 23.7% increase from the year-ago month. Capacity was up 18.7% to 2.55 billion ASMs and load factor rose 3.1 points to 75.8%. Dragonair flew 560.1 million RPKs in December, down 1% from the year-ago month. Capacity dipped 0.3% to 885.1 million ASKs and passenger numbers dropped 2.1% to 423,036.
The competition for an alliance foothold in India may have started in earnest yesterday with reports that Air France extended an invitation to Indian Airlines to join SkyTeam. According to The Hindu Business Line, AF President and COO Pierre-Henri Gourgeon met with Indian Chairman and MD Vishwapati Trivedi Saturday and tendered the invitation. Indian said its pending merger with Air India ( ATWOnline, Jan. 18) and its ongoing IOSA audit would prevent an immediate decision, The Hindu said.
Singapore Airlines flew 8.05 billion RPKs in December, a 7.8% increase from the year-ago month. Capacity rose 2.9% to 9.59 billion ASKs and load factor climbed 3.8 points to 84%. SAS Group carriers flew 2.58 billion consolidated RPKs in December, a 2.2% decline from the year-ago month. Capacity fell 0.5% to 3.9 billion ASKs and load factor dropped 1.2 points to 66.1%. SAS Scandinavian Airlines flew 1.77 billion RPKs, down 8.9%, against a 9.1% decline in capacity to 2.52 billion ASKs, lifting load factor 0.1 point to 70.3%.
Boeing said yesterday that GE Commercial Aviation Services booked a 39-aircraft order in 2006 valued at $5.34 billion comprising seven 777-300ERs, eight 777Fs and 24 737-800s. The aircraft, previously listed in Boeing's 2006 order ledger as belonging to an unidentified customer, will begin delivering next year and continue through 2010. The order boosts GECAS's 2006 order book with Boeing to 69.
MAIR Holdings, parent of Mesaba Airlines, late yesterday finalized its agreement with Northwest Airlines reached earlier this month ( ATWOnline, Jan. 8) under which Mesaba will exit bankruptcy as an NWA subsidiary and MAIR will purchase all of its stock currently owned by NWA for approximately $35 million.
Continental Airlines 757 en route from Houston Intercontinental to Puerto Vallarta was diverted to McAllen, Tex., Saturday after the pilot became ill and died. The copilot landed the aircraft safely. The pilot reportedly collapsed at the controls and was pronounced dead a short time later at a local medical facility. CO did not release a cause of death but The Houston Chronicle, citing the McAllen Fire Dept., said he suffered a heart attack. A replacement flight crew was dispatched from Houston to resume the flight, which landed at PVR several hours late.
WestJet named Vito Culmone executive VP-finance and CFO, replacing interim CFOs Janice Paget and Derek Payne, who took over when Sandy Campbell retired last July. Culmone, VP-commercial finance for beer giant Molson Canada, will join the Calgary-based LCC March 1. Grupo Aeroportuario del Sureste appointed Chairman Fernando Chico Pardo as interim CEO effective immediately, filling the hole left when Kjeld Binger resigned last month ( ATWOnline, Dec. 25).
Aviation Partners Boeing announced yesterday that Shanghai Airlines and China Eastern Airlines have ordered Blended Winglets for aircraft purchased as part of last year's combined order for 150 737-700s/-800s. Shanghai is taking 13 aircraft and China Eastern 20 through 2010 ( ATWOnline, Sept. 15, 2006). APB said the orders will bring to 190 the number of winglet-equipped 737NGs in China. "We are realistically targeting to install winglets on every eligible aircraft in China," CEO John Reimers said.
British Airways asked the publicly funded UK-based Advisory, Conciliation and Arbitration Service to help avert a three-day strike by cabin staff called for next week. "A strike would be completely unnecessary and unjustified. I am convinced we can settle the issues at the center of this dispute through sensible discussion and negotiation," BA CEO Willie Walsh said.
AMR Corp., parent of American Airlines, yesterday announced a public offering of 13 million newly issued shares of common stock. The company said it expects to grant underwriters Credit Suisse, UBS and Merrill Lynch a 30-day option to purchase up to 1.95 million additional shares to cover any overallotments. AMR will use the proceeds "for general corporate purposes."
Brazilian officials investigating the Sept. 29 midair collision between a Gol 737-800 and an ExcelAire Legacy 600 that led to the deaths of all 154 aboard the 737 said Sunday that air traffic controllers were at least partly at fault in the accident. The two ExcelAire pilots, who were detained in Brazil for more than a month after the crash, were charged last month with endangering aircraft safety and face the prospect of a criminal trial ( ATWOnline, Dec. 11, 2006).
Alitalia called an ordinary shareholders meeting to appoint a new board on Feb. 22. The second call for the shareholder meeting is for Feb. 28. The embattled airline was forced to cancel a board meeting scheduled for last Friday after two members, including Air France KLM Group Chairman and CEO Jean-Cyril Spinetta, resigned. The departures reduced the number of board members to two, below the three-member quorum needed to hold the meeting ( ATWOnline, Jan. 18, 2006).
Delta Air Lines watched from the sidelines as four US legacy rivals vied over the past few months for the right to operate a new daily route to China. United Airlines and its bid to fly from Washington Dulles to Beijing won out earlier this month ( ATWOnline, Jan. 10), but Delta yesterday signaled its intention to compete hard for the US Dept. of Transportation's 2008 award, presenting a proposal to operate a daily Atlanta-Shanghai service beginning next March.
