Southwest Airlines, following up on its announcement that it will configure its entire fleet for RNP ( ATWOnline, May 9), announced this week an agreement with Naverus to "develop and implement [RNP] tailored approach and departure procedures at each of the airports Southwest serves." Executive VP and Chief of Operations Mike Van de Ven said, "We recently commissioned Naverus to illustrate the benefits of RNP for Southwest Airlines.
Northwest Airlines moved closer to emerging from Chapter 11 after a US Bankruptcy Court judge this week approved a $5 million settlement between the airline and a shareholder group that opposed the reorganization plan that is expected to receive court approval soon, clearing the way for next month's exit ( ATWOnline, May 10).
Southwest Airlines signed a 10-year distribution agreement with Galileo, the second-largest GDS in the US, and will begin participating in the system later this year after technical work is completed.
Copa Holdings, parent of Panama's Copa Airlines and Colombia's Aero Republica, reported a first-quarter net profit of $48.6 million, up 50.5% over the $32.3 million posted in the year-ago period, on a 26.6% jump in revenue to $242.7 million.
SAS Scandinavian Airlines will unveil a new long-term plan next month called Strategy 2011 that will outline its future fleet and efficiency goals. CEO Mats Jansson, who took the helm Jan. 1, told ATWOnline in Copenhagen this week that the plan will focus on "cutting costs further, planning growth for the future and improving the structure of our nine SAS airlines." It will target €2.7 billion ($3.66 billion) in cost savings within five years, according to press reports. But an improved cost structure could be undermined by labor unions, Jansson warned.
HNA Group, parent of Hainan Airlines, revealed that it is preparing to launch an aircraft leasing company with AVIC II, with which it reached a strategic partnership agreement ( ATWOnline, May 4). HNA noted that leasing is a "promising business" in China as few domestic companies have a foothold in the field.
Alitalia reported a pre-tax loss of €147.5 million ($199.9 million) in the first quarter, down slightly from a €156.6 million deficit in the year-ago period. Operating revenues, including income generated through Volare Airlines, rose 7.4% to €1.06 billion, with passenger revenue up 8% to €824.8 million. Operating expenses increased 5.3% to €1.11 billion and operating loss declined to €107 million from €129 million. RPKs grew 5.6% against a 2.7% increase in ASKs.
KLM named Executive VP-Corporate Center Jan Ernst de Groot as one of three MDs effective July 5. Other MDs are new President and CEO Peter Hartman ( ATWOnline, Nov. 28) and CFO Frederic Gagey.
Bmi Group Chairman Michael Bishop confirmed the March transfer of 51 slots at London Heathrow to British Airways for £30 million ($59.4 million) but said the transaction was not a sale, as reported in the mainstream press, but a condition of bmi's acquisition of BMED. "They weren't our slots," Bishop explained. "The deal was that BA had a right to cancel their franchise with British Mediterranean and operate the routes themselves in the case of financial default, which is what happened, and they also had a preemptive right on the slots."
Finnair said it will sell the last two MD-11s it owns to Aeroflot. The aircraft will be transferred in November 2008 and July 2009. Value of the sale is at least €30 million ($40.6 million). Finnair operates seven MD-11s, five of which are under leasing agreements that expire by the end of 2010, when it plans to have retired all MD-11s and operate a long-haul fleet of A330s and A340s.
China Southern Airlines and Air France KLM have entered into exclusive talks to launch a joint venture cargo carrier in China, AF KLM Vice Chairman and KLM President and CEO Leo van Wijk revealed recently in Beijing.
LAN Argentina pilots, maintenance personnel and ground employees staged a surprise strike beginning Monday that forced the cancellation of all of the carrier's domestic flights for the past two days. Labor leaders showed no signs of backing down yesterday. "The strike will continue," a pilots union representative told the Buenos Aires Herald. Management appeared to be caught off guard by the workers' absence and reportedly is seeking assistance from Argentina's Labor Ministry to resolve the dispute.
ABX Air, the Ohio-based all-cargo carrier that supports DHL's US air network, reported first-quarter net income of $4.3 million, down 46.9% from $8.1 million earned in the year-ago quarter, on a 22% drop in revenue to $288.1 million.
Royal Jordanian said yesterday that it posted a 2006 net profit before deducting "taxes and staff incentives" of JOD7.4 million ($10.4 million), its third consecutive profitable year but down 64.8% from the record JOD21 million earned in 2005 before distributing a profit share to staff.
China's airlines reported a collective first-quarter net loss of CNY820 million ($106.7 million), narrowed from a CNY2.14 billion deficit in the year-ago quarter, according to figures released by CAAC. Operating revenue rose 19.9% to CNY40.5 billion while costs increased 16.5% to CNY41.2 billion. Chinese analysts credited "drop of fuel price" and "strong market demand" for the improved performance. The government slashed the price of jet fuel by CNY180 per ton at the beginning of the year, according to the official state Xinhua News Agency.
American Airlines' business class upgrade for its 767-300s is progressing as planned, the carrier said last week in Brussels during a tour to present the new cabin. By summer, all 767-300s operating on Europe-New York JFK routes will be refurbished with the "next-generation" business class and at year end the process should be completed on its entire fleet of 58 -300s, which in addition to transatlantic services are operated on select routes within the US and to Latin America.
AerCap, the Dutch aircraft lessor, signed a firm order with Airbus yesterday for an additional 10 A330-200s valued at $1.6 billion, bringing to 30 the number of the type it has on order. "Since AerCap ordered 20 new [A330-200s] in December last year, we have already lined up customers for 13 out of the 20 aircraft," CEO Klaus Heinemann said. "The order for an additional 10 aircraft will help us to further expand our portfolio in the attractive market for modern, smaller widebody aircraft."
Northwest Airlines and China Airlines signed a cooperation agreement, to be implemented Aug. 1, that will include reciprocal frequent-flier benefits and lounge access as well as "one-stop check-in" for connecting passengers.
Icelandair Group signed a letter of intent Friday to acquire Travel Service, the largest private airline in the Czech Republic and owner of LCC Smart Wings. Travel Service operates charter flights to and from Prague and Budapest in addition to Smart Wings. Its revenue in 2006, when it carried more than 1.8 million passengers, totaled €190 million ($256.9 million). Its fleet comprises 12 737s. No acquisition price was released.
Iberia Group posted a first-quarter net profit of €12.2 million ($16.5 million), reversed from a €57.2 million loss in the year-ago period, owing to continued network restructuring and cost-cutting initiatives. Revenue rose 8.5% to €1.31 billion while costs increased 2.4% to €1.30 billion. Fuel expense, which represented 20% of total operating cost, lifted just 1.2% to €261 million. Fuel costs actually fell 1.4% in unit terms as the airline benefited from fuel consumption efficiency improvement associated with its fleet renewal.
Terra Firma, a European private equity firm, added to its portfolio of operating lease companies with the purchase of San Francisco-based Pegasus Aviation Finance. Price was not disclosed. Sellers were investment funds managed by Oaktree Capital Management and Pegasus senior management. Last year, Terra Firma acquired AWAS from Morgan Stanley for $2.5 billion in cash plus the assumption of liabilities.
Jet Airways appointed Emmanuel Menu GM-Continental Europe. He replaces Abraham Joseph, who is relocating to Toronto to lead the airline's expansion into Canada.
Air Canada reported a first-quarter net loss of C$34 million ($30.7 million), narrowed from a net loss of C$126 million in the year-ago quarter, on a 5.9% increase in revenue to C$2.53 billion. President and CEO Montie Brewer, noting that the first quarter is "traditionally the industry's weakest period" and that fuel costs were high, called the results "solid" and pointed to year-over-year improvement. "Performance in the domestic market, in particular, excelled," he said.
Record revenue and the proceeds from the sale of its stakes in Singapore Aircraft Leasing Enterprise and the SIA Building helped carry Singapore Airlines Group to a stunning S$2.13 billion ($1.4 billion) profit for the fiscal year ended March 31, a 71.6% surge over the S$1.24 billion earned in the prior 12-month period.
