Austrian Airlines Group said it raised €367 million through the offer of up to 51.68 million bearer shares that concluded Dec. 1 ( ATWOnline, Nov. 29) with a final offer price of €7.10 per share. "With the successful completion of our transaction, we have taken an important step in our restructuring program," CEO Alfred Oetsch said in a statement.
The Italian government on Friday confirmed its intention to reduce its controlling interest in Alitalia in an effort to lift the carrier out of the red and into an alliance.
Northwest Airlines reported a $37 million consolidated October profit on $1.03 billion in revenues. Year-ago figures were not available, but the airline did lose $346 million in the six weeks following its entry into bankruptcy on Sept. 14, 2005. NWA's October expenses came to $980 million and its operating profit was $52 million. It has forecast a "modest profit" for 2006 excluding reorganization items ( ATWOnline, Oct. 3).
Atlas Air Worldwide Holdings and DHL announced the finalization of DHL's acquisition of a 49% stake in AAWH subsidiary Polar Air Cargo and a 20-year blocked-space agreement announced in October ( ATWOnline, Oct. 17). The stock purchase agreement was executed Nov. 28.
SN Brussels Airlines will add a fifth daily frequency on its Brussels-Berlin Tempelhof route as it anticipates increased demand owing to Germany's January ascendancy to the EU presidency. Partner Virgin Express continues its daily service to Berlin Schoenefeld. Cargolux will add a fifth weekly flight to Budapest from Dec. 14. The new service will operate Taipei-Bangkok-Budapest-Luxembourg.
Swissport International named Philipp Joeinig executive VP-operations, Michel Jansen executive VP-cargo and Adrian Melliger head of Swissport Station Zurich.
Aer Lingus presented its unions with a 12-point cost-cutting plan Friday as part of its continuing effort to thwart Ryanair's floundering takeover bid and succeed as an independent carrier. According to press reports, EI has promised not to cut jobs without workers' consent. It also intends to simplify pay grades, enact standard work rules, renegotiate airport and ground handling contracts, introduce a fuel efficiency plan and look into the establishment of overseas bases, according to The Irish Times.
TAM Director of Institutional Relations Paulo Castello Branco has thrown cold water on recent reports that TAM is set to join one of the three major airline alliances.
South African Airways said it will lay off 1,000 employees, or approximately 9% of its workforce, next year in a cost-cutting measure, according to widespread South African press reports citing a statement from CEO Khaya Ngqula, who said the airline is enjoying increased traffic and revenue but cannot hold down its expenses. SAA's profit for the fiscal year ended March 31 plunged 90% year-over-year ( ATWOnline, July 7). Separately, SAA announced that it will start serving Chicago in May.
US PASSENGER AIRLINES' SOLID financial year continued in the third quarter as the 10 largest carriers again kept capacity growth to a minimum and strictly controlled nonfuel costs, reporting an aggregate operating profit of $1.64 billion, significantly widened from operating income of $241.5 million in the year-ago quarter. The airlines did report a collective net loss of $737.2 million, but the figure was dragged down by bankrupt Northwest Airlines' heavy restructuring costs. Excluding NWA, the other nine companies reported a collective net profit of $441.8 million.
Alaska Airlines named Bob Bernicchi MD-maintenance engineering. Alteon Training appointed Sherry Carbary president. ATA Airlines elevated Subodh Karnik to president & CEO succeeding John G. Denison, who remains chairman. Aviareps selected Nadja Frank as PR mgr. British Airways tapped Robert Boyle to replace Martin George as commercial dir. and Thomas Coops to succeed Iain Burns as head of communications. Crane Aerospace & Electronics chose Tom Berghan as site leader-Redmond, Wash.
IF THERE IS A SILVER LINING TO the pall that high fuel prices have cast over the airline industry during the past three-and-a-half years, it is that it has forced carriers to say a final goodbye to hundreds of old aircraft that have lingered far too long. Absent $70-per-barrel crude that made those metallic fossils economically as well as technologically obsolete, carriers well might have surrendered to the primal urge to add marginal-cost capacity at the first sign of rising travel demand, thereby snatching defeat from the jaws of a still-fragile victory.
THE WORD SCIENCE, WHEN USED TO DESCRIBE the selection of a fleet of transport aircraft, means not only the collection of data and evaluation of guarantees by verifiable methods but also refers to "social science" or the study of human behavior. History shows that decisions involved in aircraft purchases more often have been swayed by the latter.
TEN YEARS AGO THIS MONTH, TAM was awarded the right to fly trunk routes in Brazil. It was a major step for the airline, which had begun life as a regional carrier in 1976 during the era of fare and route regulation. Henceforth TAM could serve the top markets nationwide, competing head-to-head with the country's leading carriers: Varig, Vasp and Transbrasil. Owing to the drive and commitment of its visionary founder, the late Capt.
THE TRAVEL POSTERS PORTRAY a world of blue skies, waving palm trees, tropical beaches and rolling surfan archipelago of peace and tranquility unspoiled by the unpleasant realities of the outside world. But there is trouble in paradise as the two mainline carriers, Hawaiian Airlines and Aloha Airlines, wage a battle against an upstart from the mainland, go!, which began inter-island services last June. A fourth combatant, privately owned turboprop operator Island Air, is caught in the crossfire and recently ditched expansion plans in the face of new competitive realities.
Pratt & Whitney Canada said yesterday it will open a new parts distribution center in Amsterdam to provide "rapid parts deliveries" for its engine customers in Europe, the Middle East and Africa. The facility will carry "a large inventory of new parts, accessories and line-replaceable units for all P&WC engine models" and will assume responsibility for parts orders previously processed by its Southampton facility.
Avianca Chairman German Efromovich said the company is in the final stages of negotiating a "big" fleet purchase expected to be completed before the end of January. Speaking at ALTA's third annual Latin American Airlines Leaders Forum in Cancun, Efromovich, who also is CEO of Brazil's Synergy Group, said the value of the order excluding options is in the area of $2.5 billion and comprises single- and twin-aisle aircraft. They will be divided between Avianca and OceanAir of Brazil, which both are under the Synergy Aerospace umbrella. He said he was talking to Airbus and Boeing.
Kingfisher Airlines posted a INR1.07 billion ($23.9 million) loss for the first six months of its fiscal year ended Sept. 30, The Economic Times reported. CEO Vijay Mallya said Indian LCCs are undercutting the market by offering low fares from which even the LCCs cannot earn profits. He has complained formally to India's Directorate General of Civil Aviation, writing in a letter to the agency that the fares are "not sustainable" and that "cash losses will only keep mounting."
AirAsia reported MYR5.7 million ($1.6 million) in net income for its fiscal first quarter ended Sept. 30, reduced from an MYR8.7 million profit in the year-ago quarter, a 34.5% drop the airline attributed to more than MYR5 million in deferred taxation that negatively impacted otherwise strong results.
Ethiopian Airlines signed an agreement with ILFC to lease a 220-seat, two-class 767-300ER for five years effective Dec. 8. The carrier recently extended its network from Addis Ababa and now offers twice-daily services to Dubai, 11 weekly flights to Lagos, eight weekly flights to Accra, a daily service to Khartoum and Johannesburg, six-times-weekly flights to Dakar, five to N'djamena and four to Lome.
Airlines of Latin America and the Caribbean region are enjoying strong traffic demand and face a bright future, Merrill Lynch airline analyst Michael Linenberg told attendees at the third annual Latin American Airlines Leaders Forum sponsored by ALTA (Asociacion Latinoamericana de Transporte Aereo) yesterday in Cancun.
TAM has changed its approach to ticketing, launching a new "fare profiles" system yesterday that will allow passengers to purchase tickets based on specific needs. For flights to Brazilian destinations, passengers "will be able to choose promotional prices or other benefits pertaining to a given profile," the carrier said in a statement. Each of the five profiles (Promo, Light, Flex, Max and Top) presents "clear characteristics and rules" from which customers can choose.
Qantas said late yesterday in a stock exchange filing that it expects its pre-tax profit for the fiscal year ending June 30, 2007, to be 25%-30% higher than the A$480 million ($377.3 million) earned in the 12 months ended June 30, 2006. The increase comes "as a result of strong trading conditions and subject to fuel prices remaining around current levels," the carrier said.
Iberia appears to be more eager to participate in European airline consolidation than oneworld partner and shareholder British Airways, although the Spanish carrier dismissed reports that it is dissatisfied with its UK partner.
US Airways presented its case for a takeover of Delta Air Lines yesterday to DL management and representatives of its creditors' committee ( ATWOnline, Nov. 29). US Airways Chairman and CEO Doug Parker said, "We reviewed our offer and had a chance to engage in discussions on the many facets of this proposal. While we recognize the steps that Delta management has taken, we are confident that our proposal for a 'New' Delta will create more value than a standalone plan."
