Singapore Airlines flew 7.76 billion RPKs in July, a 5.5% increase over the year-ago month. Capacity climbed 2.3% to 9.56 billion ASKs, raising load factor 2.5 points to 81.2%. Horizon Air flew 249 million RPMs in July, up 4.8% over the year-ago month, against a 2.9% rise in capacity to 318.8 million ASMs. Load factor rose 1.4 points to 78.1%. Finnair said July RPKs increased 15.6% over the year-ago month, with capacity rising 10.5% and load factor improving 3.6 points to 82.4%.
Assn. of European Airlines members posted a 99% completion rate on short/medium-haul flights in the second quarter with an 81.1% ontime performance, down 2.2 points from the year-ago period, according to data supplied by 26 of the 31 member carriers. Long-haul flights were completed 99.7% of the time with 72.7% punctuality, down 4.2 points. Baggage irregularities rose to 13.3 missing bags per 1,000 passengers from 11.9 in the second quarter of 2005. The reporting carriers flew approximately 93 million passengers during the quarter on 980,000 flights.
Northwest Airlines and Air France, SkyTeam partners who were rebuffed by the US Dept. of Transportation as part of the alliance's bid for transatlantic antitrust immunity last December ( ATWOnline, Jan. 12), opted to move forward with a codeshare agreement announced yesterday.
Ryanair said it intends to operate a full schedule from London Stansted even if the Bank Holiday strikes against Swissport International occur next weekend ( ATWOnline, Aug. 21). The carrier said it will allow all passengers to use Web check-in and may require them to travel without checked luggage.
American Airlines launched a website, www.flytochinaonaa.com, on which passengers and businesses can learn about and register support for the carrier's application to operate nonstop service between Dallas/Fort Worth and Beijing beginning in March. Following Northwest Airlines' announcement last week that it applied to operate Detroit-Shanghai service, there now are four carriers competing for the award of one transpacific route ( ATWOnline, Aug. 21).
Hainan Airlines posted an CNY8.7 million ($1.1 million) profit in the second quarter, a reversal from a CNY3.4 million loss in the year-ago period, the carrier said in a filing with the Shanghai stock exchange cited by press reports. Revenues climbed 26% to CNY2.95 billion. Six-month profits doubled to CNY20.8 million on a 16% increase in passenger volume and 20% growth in freight. Turnover was up 26% to CNY5.75 billion against a 29% surge in costs to CNY4.61 billion.
Avion Group said it formed a joint venture with Australasian airline group Advent Air Ltd. calling for Avion subsidiaries Star Airlines of France and Star Europe of Germany to provide up to four A320s to Advent Air subsidiary Skywest, a Perth-based Regional. Skywest will operate the aircraft from November to April, which is its peak season and Avion's low season.
Virgin America, the proposed LCC startup that is 25% owned by Virgin Group, is being held up by objections over its US citizenship from legacy carriers urging the US Dept. of Transportation to reject its application for an operating certificate.
Monarch Airlines placed an order for six 787-8s with purchase rights on an additional four. The order is worth $916 million at list prices. The UK airline said the Dreamliners will form the core of its future long-haul fleet, which currently comprises A330s, A300s and 767s. The 787s are scheduled for delivery from the end of 2010 though 2013. "Operating successfully in the leisure market requires flexible and innovative products. With the 787's longer-range capabilities, we will be opening up new destinations in the Americas, Asia and Africa," CEO Peter Brown said.
Lufthansa Systems signed a contract with Virgin Atlantic Airways to provide the UK carrier with its ProfitLine/Price IT pricing solution. Separately, Lufthansa said it has developed a new "corporate sound" that will be played for customers holding on the phone and on radio and TV ads, as well as when passengers board aircraft.
Ryanair revealed its intention to take on both "terrorists and extremists" and the UK government in a single press release Friday. Its battle against evil will be waged with the week-long sale of 1 million seats across more than 100 routes for £25 ($47.40) one way including taxes and fees. "Ryanair is releasing these cheap seats to get Britain flying again, which is the best way to defeat terrorists and extremists," the combative airline said.
MAIR Holdings, parent of Mesaba Airlines, filed claims totaling $281 million in bankruptcy court last week charging partner Northwest Airlines with breach of contract and fraud. Mesaba followed NWA into bankruptcy last October. According to an Aug.
LTU German Airlines MD Juergen Marbach said the leisure airline's cooperation with dba will continue after the latter is acquired by Air Berlin in deal announced last week. LTU will maintain its program of network expansion, focusing on the long-haul side. Marbach said that in the past six month all synergies with dba have been realized with savings expected to reach double-digit million euros.
Aircastle Investment Holdings said Friday that one of its subsidiaries agreed to acquire six 737-700s leased to Danish LCC Sterling Airlines from affiliates of AP Moeller-Maersk Group for an estimated $165 million. Four of the acquisitions were completed Aug. 17 and Aircastle expects to finalize the remaining two by Aug. 31.
Delta Air Lines said Friday that new security regulations have resulted in an approximately 20% increase in checked baggage on the mainline and a "negligible increase" aboard Delta Shuttle. The carrier has increased staffing to handle the additional workload and said that baggage operations "have returned to normal."
Austrian Airlines Group flew 2.46 billion RPKs in July, a 4.9% drop from the year-ago month. Capacity declined 2.5% to 3.08 billion ASKs and load factor fell 2 points to 79.9%.
US President George Bush, as expected, signed comprehensive pension reform legislation into law yesterday, completing a system overhaul that is expected to save the defined retirement programs of airlines and other companies ( ATWOnline, Aug. 7). The new law gives US carriers that have frozen their plans, such as Northwest Airlines and Delta Air Lines, 17 years from 2008 to fund their plans fully. Others get 10 years.
Air Berlin, Germany's second-biggest carrier after Lufthansa, said yesterday that it will take over 100% of dba, the country's No. 3 airline. The contract was signed late Wednesday in Munich by dba owner Hans Rudolf Woehrl and Air Berlin CEO Joachim Hunold after several weeks of secret negotiations and is subject to approval from competition authorities. Dba acquired LTU German Airlines just two months ago ( ATWOnline, June 12) and that carrier is expected to follow its new parent under the AB umbrella.
Qantas Group blamed an additional A$818 million ($626.2 million) in fuel costs net of hedging benefits for a 30.4% drop in net profit to A$480 million for the fiscal year ended June 30 despite an 8.6% increase in sales to A$13.64 billion. The fuel hike sent the company's costs up 11.9% to A$12.92 billion. The result was impacted further by one-off restructuring costs of A$182 million under the carrier's Sustainable Future Program and recognition of A$104 million in damages paid by Airbus related to delayed deliveries of A380s.
Northwest Airlines flight attendants, represented by the Assn. of Flight Attendants-CWA, will not be prevented from striking by the US Bankruptcy Court, which yesterday denied a preliminary injunction request from NWA. The union said it could exercise its right to strike as early as the evening of Aug. 25 ( ATWOnline, Aug. 14). "While we are disappointed with Judge Gropper's ruling and will appeal it, we remain committed to continuing to serve our customers," NWA President and CEO Doug Steenland said.
Norwegian flew 535 million RPKs in July, up 67% on the year-ago month. Capacity rose 70% to 595 million ASKs and load factor fell 1 point to 90%. ExpressJet flew 976.5 million RPMs in July, a 13.3% increase over the year-ago month. Capacity rose 10.6% to 1.21 billion ASMs and load factor improved 1.9 points to 80.6%.
China Southern Airlines reported a CNY784 million ($98 million) net loss for the first half of 2006, narrowed from a CNY964 million loss in the first half of 2006. "As jet fuel prices kept rising and the interest rates of US dollar-denominated loans climbed up during the period, the cost pressure that [China Southern] faced in its business operations did not ease, resulting in a net loss," the airline said.
Middle East Airlines operated an Amman-Beirut A321-200 flight carrying 149 passengers yesterday, the first commercial flight to arrive at Rafik Hariri International Airport in 36 days and signaling at least a partial lifting of Israel's air blockade of Lebanon. Royal Jordanian also operated an Amman-Beirut flight yesterday. MEA Chairman Mohammed Hout and Lebanon Transportation Minister Mohammed Safadi said Israel has agreed to allow limited flights from Jordan, according to press reports from Beirut.
British Airways spokesperson told reporters the carrier is giving "no consideration" to suing the UK government to recoup the nearly £50 million ($94.7 million) some analysts say it lost as a result of the past week's cancellations and delays at London airports. Ryanair reportedly is feeling otherwise and has contacted other carriers about challenging the government. EasyJet denied it was interested in suing the government, AFX News reported.
