Bankrupt Northwest Airlines said yesterday that it anticipates recording a loss for September through December due to a "softening in revenue" and will earn a "modest profit" for full-year 2006 excluding reorganization items on more than $12 billion in revenues. The carrier previously reported a $50 million profit, excluding restructuring costs, for the first six months of 2006.
SITA said that Northport, a European ground-handling company, will deploy its BagManager baggage reconciliation system under a seven-year agreement that covers deployment at Helsinki Airport by the end of January followed by installation at 14 Finnish domestic airports, Stockholm Arlanda, Oslo Gardermoen and Copenhagen. It is the first time that a ground handler has chosen to employ the system, which traditionally has been marketed to airports.
CSA Czech Airlines said yesterday it will initiate the sale of its catering operation and cargo terminal at Prague Airport. The announcement followed the completion of the first stage of an analysis of possible divestments that led the airline to conclude that those assets do not fit with its strategy to give "full focus on the mainline."
Alteon Training yesterday began operations at its Singapore Training Center, which will open officially in early 2007. "With this latest addition, Alteon now offers seven training locations in the Asia/Pacific region," President Patrick Gaines said. Located near Changi Airport, the Singapore center will be capable of training more than 6,000 pilots and flight attendants annually.
Ethiopian Airlines plans to increase its cargo activities to meet the demands of the nation's fast-growing export market. It will construct a new state-of-the-art cargo terminal in Addis Abeba with cold storage facilities and a total annual capacity of 250,000 tonnes and lease an MD-11 freighter for a daily Addis-Brussels flight with a capacity of 85 tonnes.
British Airways revealed Friday that the actuarial deficit in its main pension scheme reached about £2.1 billion ($3.95 billion), more than double the £928 million deficit at the last valuation in early 2003. The new figure follows an actuarial review carried out earlier this year and is higher than previously estimated. "The deficit is massive and we must deal with it," Chief Executive Willie Walsh said. "I believe our proposal is a fair solution which addresses the funding problem and shares the cost of securing the future of our pensions and BA."
UAL Corp., parent of United Airlines, on Friday said it has extended Chairman, President and CEO Glenn Tilton's contract through 2011, replacing a previous agreement that would have expired on Sept. 1, 2007. The UAL board also approved a new four-year deal for Executive VP and COO Pete McDonald and promoted Senior VP-Worldwide Sales and Alliances Graham Atkinson to the position of executive VP and chief customer officer. VP-North America Sales Jeff Foland was named to succeed Atkinson.
Ryanair on Friday raised its full-year net profit guidance to approximately €335 million ($426 million) and said it firmed options on 32 737-800s valued at $2.25 billion, bringing its total number of firm orders for 737-800s to 281. Deliveries are scheduled between September 2008 and June 2009. Ryanair said the price it is paying for the jets will give it "the lowest per seat operating cost of any European airline."
Delta Air Lines said it lost $11 million in August, which compared to a loss of $158 million in August 2005. The information was contained in its monthly operating report to the bankruptcy court. It said mainline nonfuel CASM was 6.66 cents, down 7.6% from August 2005, while consolidated passenger RASM climbed 12.8% to 10.64 cents. At the end of the month it had $3.9 billion in cash, of which $3 billion was unrestricted. Executive VP and CFO Edward Bastian called the results encouraging and said the carrier "is on track with our restructuring plan."
US Airways named Scott Kirby, 39, to the position of president effective Oct. 1. Kirby, an 11-year veteran of America West, which acquired and merged with US Airways last year, was executive VP-sales and marketing. He will continue to report to Chairman and CEO Doug Parker. The carrier also promoted Ed Bular to senior VP-flight operations/inflight. Bular joined the US Airways side of the family in 1980, three years before America West came into existence. In tandem with the appointments, the company announced a management reorganization.
Hapagfly and Hapag Lloyd Express integration is reflected in the release Friday of a joint flight schedule for 2007, according to parent TUI Group ( ATWOnline, Sept. 1). "With the joint flight schedule for summer 2007 we have reached the first major milestone on the path to integrating Hapagfly and HLX," said Hapagfly Executive Board Chairman Christoph Mueller, who also sits on the executive board of TUI.
IATA reported that international passenger traffic growth continued to soften in August as member airlines reported a 4.8% increase in international RPKs compared to August 2005. According to IATA, this is the smallest monthly passenger traffic increase since the end of 2003 "and marks the fourth consecutive month of declining growth in passenger demand." With ASKs up 4.3%, load factor was 79.4%.
GATX Corp. last week announced it will sell the majority of its aircraft leasing business to a consortium of investors including Macquarie Bank and investment fund Och-Ziff Capital Management Group in a transaction expected to close by year end. GATX has been in the aircraft leasing business since 1968. The value of its aircraft assets, including its joint-venture investments, is approximately $1.5 billion in net book value and includes 87 aircraft.
AerCap Group named Keith Helming CFO and Heinrich Loechteken chief investment officer. Airbus promoted Mario Heinen to senior VP & A380 Program head, replacing Charles Champion, and Alain Flourens to succeed Heinen as head-Single Aisle Program. Air Canada elevated Daniel Shurz to VP-network planning and Charlie McKee to VP-marketing. AirTran Airways elected Mark W. Osterberg as VP & chief accounting officer. Aloha Airgroup tapped Gordon Bethune as chairman and named Mike Malik CIO of Aloha Airlines. ATA Airlines appointed Gary Ellmer senior VP-operations & GM-charter.
A profit in the airline industry these days is not so rare, but when you increase profits and every other significant parameter against soaring fuel prices and a new robust competitor, that certainly is something to celebrate. However, Australia's Virgin Blue is not celebrating. Like its latest advertising campaign, "Getting into Business," the airline's management is getting on with the job of attracting more traffic from the business end of town.
As 2005 drew to a close, European Commission VP for Transport Jacques Barrot and Moroccan Minister for Equipment and Transport Karim Ghellab met in the attractive Moroccan holiday resort city of Marrakech to initial a comprehensive air transport agreement between the EU and Morocco. The setting was appropriate: Marrakech has the largest souk, or traditional market, in the country, and what was being traded was nothing less than access to the air market between the 25 EU member nations and the North African nation of 33 million.
Six years ago this month, then Continental Airlines Chairman and CEO Gordon Bethune responded to a reporter's query about rising business fares by pointing out that higher prices weren't discouraging corporate travelers from buying tickets on his airline. Noting that Continental's load factor was up by more than a point on a 4% lift in capacity and a 9% gain in yield during the 2000 third quarter, he could not resist cracking: "Maybe fares aren't high enough."
Spring is the time of year associated with renewal, but this year it is the holiday season that will herald regeneration for inflight connectivity. By year end, a host of new services for airline passengers are scheduled to be springing to life. Counterbalancing the arrivals will be the departure of the 800-lb. gorilla of connectivity: Connexion by Boeing.
Only the COLOR is the SAME. In 1996, All Nippon Airways, "Japan's second airline," operated 17 550-seat domestic 747SR-100s and flew through clouds of red ink to a host of international destinations to try and match rival Japan Airlines. Today, ANA is at the cutting edge of aircraft efficiency and flies only where it can make money, as it has done in each of the past three fiscal years.
JetBlue Airways is returning to all four GDSs with a new five-year, full-content agreement with Worldspan and participation in Amadeus in the works. Worldspan said its agreement with JetBlue will provide access to the carrier by "business travelers who book trips online using Worldspan Trip Manager XE, as well as travel buyers who purchase opaque flights or travel packages at designated Worldspan-connected travel Web sites," in addition to travel agencies.
Regional Express of Australia will lease 25 Saab 340Bs from Saab Aircraft Leasing as part of its fleet modernization and expansion program. The first aircraft will arrive in January.
Ryanair said it will add four new 737-800s to its base at Girona Barcelona and launch 17 routes from March, bringing to 40 the number of routes it operates from the airport, which is located some 103 km. (64 mi.) northeast of Barcelona. The LCC said the expansion represents a $280 million investment. New routes from GRO include three-times-weekly service to Altenburg, Brescia, Fuerteventura, Gothenburg, Marrakech, Pescara, Teesside and Trapani; four-times-weekly flights to Aarhus Bologna, Bristol, Faro, Malmo, Newcastle, Oslo and Tenerife, and a daily to Porto.
Cathay Pacific Airways completed its acquisition of Dragonair and also the shareholding realignment involving Cathay, Air China, China National Aviation Company, CITIC Pacific and Swire Pacific. Dragonair is now a wholly owned subsidiary of Cathay but retains its brand and market position. After years of an often testy relationship, Cathay said it intends to begin immediately to "maximize the synergies and opportunities of its international network" with Dragonair's China network of 22 destinations.
Silverjet, a proposed UK startup that plans to offer transatlantic low-fare, all-business-class service, named Katherine Gershon launch and international development director, George Henderson IT director and Tamarah Khatib UK marketing manager. The airline is planning for a winter 2006 start.
