JetBlue Airways last week lowered its full-year guidance on pre-tax profit margin to -2%-0%, down 1 point from guidance provided in July, and lowered its third-quarter RASM growth outlook to 13%-15% from 18%-20% previously. Merrill Lynch warned that the LCC "faces significant revenue challenges." The airline also said last week that it plans to close the sales of two of its A320s this month and three more in October, resulting in a $6 million gain in the third quarter.
Mesa Air Group named Paul Skellon VP-corporate communications and international operations. Etihad Airways appointed Josephine Boulus country manager for the US.
Cathay Pacific Airways used the occasion of its 60th anniversary celebration in Hong Kong Friday to unveil a radical upgrade of its first, business and economy class products. New economy seats, set in a slight recline position that cannot be moved, aim to establish a new standard for the industry. By pushing a button, passengers can move the seat cushion forward and the seatback cushion down, producing greater recline than conventional seats. Passengers get more legroom because magazine holders have been moved from seatbacks to the front of the seat beneath travelers' knees.
Emirates will launch daily 777-300ER service between New York JFK and Dubai via Hamburg Oct. 29. The carrier enjoys fifth freedom rights between the US and Germany and is offering an introductory New York-Hamburg roundtrip fare of $425. Also, from Oct. 1 Emirates will substitute a 777-300ER for an A340-500 on one of its two daily nonstop services between New York and Dubai.
Cimber Air Maintenance Center acquired a hangar at Billund Airport in Denmark from Sterling Airlines. CAMC plans to use the facility to expand its CRJ200 support activity and eventually offer MRO services to third-party customers. It already provides line maintenance for sister company Cimber Air, which operates a fleet of nine CRJ200s. This fall, CAMC will undertake four-year checks on two Cimber CRJs.
FedEx Express, the airline unit of the global delivery giant, reported operating income of $467 million for its fiscal first quarter ended Aug. 31, widened from operating income of $285 million in the year-ago quarter, as revenues jumped 10% to $5.64 billion. Express operating margin in the quarter was 8.3%, up from 5.6% in the year-ago period. "Operating income and margin during the quarter improved due to revenue growth, revenue management and effective cost cuts," the company said.
US airlines' domestic yield growth slowed in August, according to data from the Air Transport Assn. The seven largest US passenger airlines excluding Southwest had an average yield of 12.61 cents per RPM last month, up 10.3% compared to August 2005. This represented the smallest year-over-year increase since March and a 1-point sequential decline from the 11.3% year-over-year improvement recorded in July. Slowing yield growth, however, is being more than offset by falling fuel prices.
Emirates SkyCargo and Austrian Airlines Cargo reached a blocked-space agreement on Emirates' weekly A310 freighter service between Vienna and Dubai. EK will switch to an A340-500 from a 777-200 on its daily cargo flight to Nagoya Centrair from Oct. 29.
Scandinavian Airlines will launch four-times-weekly Stockholm Arlanda-Beijing service in April using A340-300s. It currently serves China from Copenhagen. SAS Group airlines flew 3.54 billion RPKs in August, up 3.6% from the year-ago month. Capacity increased 3.1% to 4.73 billion ASKs and load factor rose 0.4 point to 74.7%. Scandinavian Airlines flew 2.46 billion RPKs, down 0.6%, against a 0.5% drop in ASKs to 3.21 billion, leaving load factor steady at 76.5%.
Aviapartner completed development and implementation of an automated wireless baggage reconciliation system in Brussels that allows baggage loaders to scan luggage labels with wireless hand-held devices. Separately, it signed a deal to provide cargo handling and catering services for Hainan Airlines 767-300ER flights arriving at BRU.
Go!, Mesa Air Group's Hawaiian startup, reached a codeshare agreement with Mokulele Airlines. The carriers signed an MOU to begin new services operating under the go!Express brand. Mokulele, which recently was granted authority from the US Dept. of Transportation to operate scheduled services, will fly a fleet of Cessna Grand Caravans.
Aeroflot CEO Valery Okulov said this week that the carrier will buy long-haul aircraft from both Boeing and Airbus, with plans to purchase 22 from each. A major Aeroflot stakeholder earlier this week signed a preliminary agreement with Boeing for 22 787s ( ATWOnline, Sept. 20).
Northwest Airlines flight attendants, prevented from engaging in work actions by a US federal judge last week ( ATWOnline, Sept. 18), yesterday declared negotiations with management at an "impasse" and asked the National Mediation Board for a release from further mediated talks with the carrier, the first step toward gaining legal authority to strike under US laws governing airline labor relations.
Finnair will launch daily Helsinki-Nuremberg service in April with Embraer 170s. Separately, the carrier said it flew 1.57 billion RPKs in August, an increase of 13.8% over the year-ago month. Capacity was up 10.6% to 2.04 billion ASKs. Load factor rose 2.2 points to 76.6%.
Airports Council International Europe appointed Olivier Jankovec as director general with immediate effect. He succeeds Roy Griffins, who retired in August.
China Cargo Airlines, the China Eastern Airlines/China Ocean Shipping Group joint venture, signed a 10-year, $28 million OnPoint Solutions agreement with GE covering overhaul and maintenance services on CF6-80C2 engines that will power the carrier's two 747-400Fs.
American Airlines yesterday signed a five-year service agreement with the US Postal Service to deliver mail that the airline said potentially is worth $500 million in revenue. It is the largest single contract ever awarded to American Cargo. AA said it re-engineered its mail processes in 2003 and now "is the preferred carrier of the Postal Service and carries more mail than any other passenger airline."
Q Investments, a Fort Worth-based private equity fund, is putting Q Aviation on the block and has retained Deutsche Bank Securities to advise it. The company said it owns 53 Airbus and Boeing aircraft recently appraised at $1.2 billion. According to the Ascend CASE database, 26 are listed under the Q Aviation LP name. They comprise eight A319s, 10 757s, four A320s, two A330s, one 737-400 and one 737-500, all of which are in service. The 737-500 is leased to Bulgarian Airlines and the remaining 25 are leased to Northwest Airlines and US Airways.
Officials from Dallas/Fort Worth International Airport said yesterday that American Airlines' proposed DFW-Beijing service would generate $180 million annually for the state economy and plans to submit its own economic impact study to the US Dept. of Transportation in support of AA's application to win the new route authority. The DFW salvo is the latest volley in an all-out campaign by four US carriers competing for a new route to China made available in the most recent air services agreement between China and the US.
Etihad Airways took delivery of an A340-500, its 20th aircraft. It will operate the plane on its new daily Abu Dhabi-New York JFK service from Oct. 26.
Denver-based Frontier Airlines, which earlier this month announced orders for 10 Q400s as part of a plan to launch its own Regional airline subsidiary ( ATWOnline, Sept. 7), is ending its codeshare agreement with Horizon Air, an Alaska Air Group subsidiary. Horizon has been operating nine CRJ700s as Frontier Jet Express since January 2004. Officials from both carriers are continuing negotiations on a timeline for winding down the partnership.
Boeing yesterday concluded its purchase of aviation parts and aftermarket services provider Aviall for $1.7 billion and the assumption of $448 million in debt. Aviall will report to Boeing Commercial Aviation Services and operate as a wholly owned subsidiary. It employs around 1,000 and maintains customer service centers in North America, Europe and Asia. It is considered the largest independent provider of new aviation parts and related aftermarket services, distributing products for approximately 220 manufacturers.
