Southwest Airlines flew 5.2 billion RPMs in September, up 9.8% on the year-ago month. Capacity increased 10.1% to 7.73 billion ASMs, dropping load factor 0.2 point to 67.2%. JetBlue Airways flew 1.64 billion RPMs in September, an 8.2% rise over the year-ago month. Capacity increased 15.8% to 2.26 billion ASMs and load factor fell 5.1 points to 72.6%. AirTran Airways flew 949.9 million RPMs in September, an 11.6% increase over the year-ago month. Capacity surged 28.6% to 1.54 billion ASMs and load factor dropped 9.4 points to 61.8%.
Smiths Detection said it was awarded a $10 million contract to supply a comprehensive integrated security system for Thai Airways at the new Suvarnabhumi Airport. Smiths is partnering with EMC Group Public Co., a Thai electrical and mechanical engineering contractor.
Aer Lingus's life as a publicly traded company got off to a surprisingly rocky start with archrival Ryanair announcing yesterday the launch of a hostile €1.48 billion ($1.88 billion) bid for the Irish flag carrier. The LCC confirmed it already has acquired more than 16% of the issued share capital of Aer Lingus Group, which listed on the Dublin and London stock exchanges Monday at €2.20 per share. Ryanair will pay €2.80 per share in cash for the remaining shares if it is able to acquire at least a majority of them.
SR Technics reached a five-year deal with Cathay Pacific Airways for the remaining 18 CFM56-5Cs in CX's fleet. The companies already had a contract covering 49 engines of the same type powering A340-300s running until 2013. SRT will provide MRO on the engines out of its Zurich service center.
Northwest Airlines yesterday set the stage for post-bankruptcy operations and the launch of its Compass regional subsidiary with orders for 36 CRJ900s and 36 Embraer 175s, plus an undisclosed number of options, which the carrier said will allow it "to pursue growth opportunities in important markets, including in the Heartland of the US, and provide Northwest with improved aircraft economics."
Southwest Airlines launched its Washington Dulles service yesterday. The carrier will use two gates on the B Concourse and operate 12 daily flights to Chicago Midway (seven), Orlando International (two), Tampa (two) and Las Vegas (one). It will base 40 employees at IAD.
Rolls-Royce announced that Monarch Airlines selected the Trent 1000 to power its order for six firm 787s scheduled for delivery from 2010 ( ATWOnline, Aug. 21). The deal includes four purchase rights and a lifetime TotalCare service agreement and is worth $1 billion at list prices.
Delta Air Lines named Kenneth Khoury executive VP and general counsel. Atlas Air Worldwide Holdings named Adam Kokas VP, general counsel and secretary effective Oct. 9.
Turkish Airlines 737-400 hijacking ( ATWOnline, Oct. 4) came under increased scrutiny yesterday as it became clear the hijacker acted alone and was able to penetrate the flight deck despite possessing no weapons, a striking security breach given the institution of post-9/11 measures such as hardened cockpit doors and the restriction of passenger access to cockpits.
Ryanair Holdings said it hedged its fuel requirements for January-March 2007 at a rate equivalent to $73 per barrel of Brent crude. The LCC hedged most of its requirements to the end of 2006 at $74 a barrel. Separately, Ryanair transported 3.5 million passengers in September, up 14.5% from the year-ago month. Load factor fell 1 point to 86%.
Travel Service of the Czech Republic placed an order for two firm 737-900ERs plus two purchase rights, Boeing announced this week. The order is valued at $150 million at list prices and deliveries to the Prague-based carrier will commence in the fourth quarter of 2009. Travel Service operates a fleet of 10 737s including seven dash 800s, offering scheduled services through its Smart Wings brand and charter services to more than 230 destinations.
The ExcelAire Legacy 600 pilots in control of the aircraft when it clipped a Gol 737-800 last week ( ATWOnline, Oct. 3) have been ordered to remain in Brazil but have not been arrested while authorities investigate the cause of the accident that killed 155 people, according to press reports.
Air France-KLM merger could deliver up to €1 billion ($1.27 billion) in savings to the airlines by 2009, double the initially anticipated cost benefit of €500 million, Air France KLM Vice Chairman and KLM President and CEO Leo van Wijk told Dutch magazine Zakenreis. Since the 2004 merger, the carriers have realized savings of €660 million, he noted. He also revealed that he is considering relinquishing his titles at KLM when his contract expires in May 2007 in order to take a strategic role in the merged company.
British Airways yesterday cut its forecasted growth in full-year revenue to 5%-6% from 6%-7% as a result of the increased security measures that followed the August terrorist threat.
Continental Airlines estimated its consolidated September RASM increased 4%-5% over the year-ago month as it reported a 7.2% year-over-year rise in August unit revenues. It flew 6.9 billion consolidated RPMs in September, up 11.5%. Capacity grew 9.9% to 8.83 billion ASMs and load factor rose 1.2 points to 78.2%. Domestic RPMs climbed 10% to 3.3 billion against a 7.1% hike in ASMs to 4.06 billion, lifting load factor 2.1 points to 81.2%. International traffic was up 11.6% to 2.81 billion RPMs, capacity rose 11.2% to 3.72 billion ASMs and load factor increased 0.3 point to 75.7%.
Details of FL Group's plan to spin off Icelandair ( ATWOnline, Feb. 13) were revealed yesterday by Glitnir, an Icelandic bank that will underwrite an offering of 51% of the carrier. The sale is expected to net FL Group ISK26 billion ($364.1 million). Icelandair Group, which employs 2,700, will be listed on the Iceland Stock Exchange by the end of 2006, Glitnir said, with a public share offering to occur prior to the listing. It said the enterprise value of Icelandair Group is ISK43 billion.
Russia will increase air traffic control fees to foreign carriers next year, the head of the Federal Air Navigation Service told Russian media yesterday. "We would like to establish fair tariffs," Alexander Neradko said, adding that the body has yet to consult with IATA. "We are not expecting the prices for tickets to go up more than RUB60-70 ($2.20-$2.60)," he said, adding that domestic carriers face a 90% increase in charges effective Nov. 1 that also will not have a significant effect on ticket prices. He told reporters that a 747 currently is charged $87 per 100 km.
Bombardier reached a low point in asset management last January when it realized it had 107 parked 50-seat CRJs, VP-Asset Management Rod Sheridan said at the 13th annual Valuation Conference organized by Commercial Aviation Media in Washington this week.
Austrian Airlines Group plans to reduce its workforce by 350, including 80 pilots, and lease out two A340-300s and three F70s after several weeks of talks with the Betriebsrat union concerning the introduction of more flexible work rules did not produce a deal. "Now it is time to react," CEO Alfred Oetsch said at a news conference yesterday. "We plan to do this without layoffs, but I cannot rule that out." Savings as a result of the move should reach double-digit million euros.
SES Americom, a satellite communications company, said it received a $70 million payment from Boeing relating to the cancellation of Connexion by Boeing inflight internet service ( ATWOnline, Aug. 18).
Turkish Airlines 737-400 en route from Tirana to Istanbul Ataturk was hijacked yesterday by a lone Turkish national who forced the pilots to land in Brindisi, where he surrendered to authorities and released all 107 passengers and six crew unharmed. The aircraft was undamaged.
VEM, acquired from Varig by a TAP Portugal-led consortium last year ( ATWOnline, Jan. 16), changed its name to VEM Maintenance & Engineering. The change reflects the company's alignment with TAP Maintenance & Engineering.
Mesaba Airlines employees said they have a plan that will save the bankrupt carrier. The Mesaba Labor Coalition, representing pilots, flight attendants and mechanics, is proposing a concessions package it believes will cut labor costs by 15% over the next three years.
Skyway Airlines, the Midwest Airlines subsidiary, plans to upgrade to 328JETs from turboprops on three Midwest Connect routes out of Milwaukee in November. From Nov. 1, midday Milwaukee-Columbus service will be reinstated with a 382JET, making all flights on the route jet except for a Saturday morning flight that will be upgraded to the 32-seat RJ on Nov. 18. From Nov. 16 the carrier will upgrade to 328JETs on service from Milwaukee to both Dayton and Appleton.
