Jet Airways and Air Sahara signed an acquisition agreement yesterday, with Jet agreeing to pay INR14.5 billion ($338.2 million) in a deal that will give it control of about half the Indian domestic market ( ATWOnline, April 12). The purchase price is 32.4% below what the carriers originally agreed to early last year and which Jet ultimately deemed too high. Jet said it will unveil details of the merger plan next week.
Societe de Promotion d'une Compagnie Aerienne Regionale is the name of a new consortium of West African banks and private investors that intends to fund and launch a multinational airline by December. The carrier, which has yet to be named, will be a replacement for defunct Air Afrique and will operate flights from West and Central Africa to Europe, the US and East Asia as well as intra-continental services. SPCAR is headed by Ecobank Chairman and former Togolese government minister Gervais Djondo. It said it conducted a feasibility study with Alan Stratford and Assoc.
Having altered commercial aviation in Europe with its low-fare, no-frills service and brazen style, Ryanair appears prepared to make its mark on the newly opened skies over the Atlantic.
The struggle for control of Qantas took a new twist yesterday with Airline Partners Australia's announcement that it will lower the threshold for its takeover bid to 70% of shares tendered from 90% and is extending its A$11.1 billion ($9.16 billion) offer by two weeks to May 4.
Chinese airlines remain interested in aligning with global alliances despite the difficulties associated with joining up or integrating. With Air China and Shanghai Airlines committed to Star Alliance and China Southern Airlines set to join SkyTeam, speculation has turned toward oneworld and Hainan Airlines, which recently opened a new Beijing-Osaka service in cooperation with Japan Airlines. Hainan parent HNA Group told China Business that it established a working group in January to start preparing the carrier to join an alliance.
Saudi Arabian Airlines confirmed that it will privatize its cargo unit by year end. The airline is inviting expressions of interest this week in a maximum 49% share of its cargo unit, the Arab Air Carriers Organization said. Saudi Arabian has outlined its intention to privatize its individual business units separately, including the catering, ground handling and technical units, in addition to pilot training and cargo.
SAS Group carriers flew 3.36 billion RPKs in March, up 5.7% on the year-ago month. Capacity rose 3% to 4.7 billion ASKs and load factor climbed 1.8 points to 71.4%. SAS Scandinavian Airlines flew 2.34 billion RPKs, up 0.2%, against a 1.6% decline in ASKs to 3.13 billion. Load factor rose 1.3 points to 74.8%. LAN Airlines flew 2.01 billion RPKs in March, up 30.7% on the year-ago month. Capacity rose 25.4% to 2.64 billion ASKs and load factor gained 3 points to 76.1%.
Jet Airways' attorneys confirmed yesterday that a new acquisition deal for Air Sahara has been reached ( ATWOnline, April 11). The lawyers told reporters in Mumbai that the sides have agreed to an undisclosed purchase price and submitted the accord to an arbitration panel that is resolving disputes related to the carriers' failed merger last year. The panel is expected to sign off on the deal, paving the way for a merger that will give Jet control of about half the Indian domestic market.
Claiming it has "no other option," United Airlines will add a $10 surcharge to tickets for flights originating from Los Angeles International Airport with immediate effect owing to a rent increase ( ATWOnline, Feb. 28). "We have a great interest in LAX developing into a world-class airport, supported by a long-term modernization plan, but we have no interest in paying higher fees without greater benefit for our customers," UA Senior VP-Planning Kevin Knight stated.
Virgin America this week asked the US Dept. of Transportation to reconsider its ruling that CEO Fred Reid must have his employment with the airline terminated within 90 days of receipt of its certification.
Iberia filed a €2 million ($2.7 million) lawsuit against Ryanair over a Barcelona marketing stunt last fall in which the Irish LCC offered free tickets to people willing to carry signs through the city expressing their preference for Ryanair over IB, according to press reports. Ryanair said the suit was IB's "latest tactic to contribute to protect its dominance in the Spanish market" and that it expects to transport 9 million passengers to and from Spain this year.
Nok Air announced a codeshare and branding partnership with regional carrier SGA Airlines under which Nok passengers will have access to SGA's Cessna 208B Grand Caravan flights from Chiang Mai to Chiang Rai, Pai and Phrae and from Bangkok to Hua Hin. SGA aircraft will be repainted in Nok colors.
Skybus Airlines, which expects to launch service later this spring, yesterday unveiled an A319 displaying the logo and slogan for the Columbus-based Nationwide insurance company as part of its livery. The carrier said it is "believed to be" the only US airline currently selling ad space on aircraft exteriors. It also is making interior advertising available and said Nationwide will be featured on tray tables, overhead bins and restroom doors. "Our goal is to provide outrageously low fares to our passengers," Skybus CEO Bill Diffendorfer said.
Gulf Air continued its restructuring under new CEO Andre Dose ( ATWOnline, April 5), announcing approval this week of a plan "aimed at significantly reducing company losses over the next few years." Details will be revealed next week, but the carrier said the plan does include a fleet reduction from 34 to 28 aircraft.
Airbus named Executive VP-Customer Services Patrick Gavin as executive VP-engineering, replacing the retiring Alain Garcia. A380 program head Charles Champion will succeed Gavin.
TAM flew 1.77 billion domestic RPKs in March, up 26.5% from the year-ago month. Capacity rose 26.3% to 2.56 billion ASKs and load factor lifted 0.1 point to 69%. International RPKs grew 68.7% to 807 million against an 85.9% increase in ASKs to 1.15 billion, dropping load factor 7.2 points to 70.5%. Alaska Airlines flew 1.53 billion RPMs in March, a 0.5% increase from the year-ago month. Capacity was up 2.3% to 1.99 billion ASMs and load factor dropped 1.4 points to 76.8%.
AirTran Holdings, parent of AirTran Airways, expects to report a "small" first-quarter profit when it releases its results on April 25, it said yesterday. The company suffered a $4.6 million loss in the first three months of 2006. It cited RASM that is expected to be "slightly better" than the latest guidance of a 1%-2% year-over-year decline, nonfuel CASM that will drop "in excess" of the forecast 3% and fuel costs of $2.00-$2.03 per gal. for the improved outlook in this year's quarter.
Northern Lights Airlines is the name of a new charter carrier being established in Canada, led by majority investor ICBS Ltd., which will own 50%. ICBS said the airline will launch in October and "exploit a gap in the long-haul international travel market that exists in low-cost, high-comfort and high-quality service originating in Montreal and Toronto." It said the market remains underserved despite the presence of Skyservice Airlines, Zoom Airlines and Air Transat. No information was provided regarding equipment.
British Airways yesterday began selling tickets for the first 380 scheduled flights to depart or arrive at London Heathrow's new Terminal 5, which will open March 27. The first scheduled departure is BA302 to Paris Charles de Gaulle. BA's move to its new facility is planned in four phases. Initially, more than 70% of its flights will transfer to T5, followed by an additional 20% at the end of April 2008. In June and October certain short-haul and BA/Qantas codeshare flights will move to Terminal 3 in order to collocate with oneworld partners.
The regional joint venture between Shenzhen Airlines and Mesa Air Group, announced last December, will be called Kunpeng Airlines and will launch operations in Xi'an with three CRJ200s at year end. The new carrier is expected to be approved soon by CAAC. The news came shortly after Hainan Airlines parent HNA Group unveiled its own regional subsidiary, Grand Xinhua Express, which also will fly to Xi'an. HNA said it intends to capture two-thirds of China's regional market by 2012 ( ATWOnline, April 2).
Texas Pacific Group reportedly is considering raising its bid for Iberia from €3.60 per share to €4.03, which would lift its valuation of the Spanish carrier to €3.8 billion, according to airline sources cited by El Mundo. The IB board is scheduled to decide this week on TPG's approach and request for information ( ATWOnline, April 2).
Hawaiian Airlines led US carriers with a 93.8% ontime percentage in March, according to data compiled by FlightStats. Among continental carriers, Horizon Air (86.8%) and Southwest Airlines (84.4%) were the most punctual of the 39 measured. Worst ontime rates belonged to Midwest Connect (13.3%) and US Airways (56.6%). Sun Country Airlines was the only carrier not to cancel a single flight, while Midwest Connect cancelled 8.7% and Northwest Airlink 4.9%.
