HNA Group, parent of Hainan Airlines, is negotiating to buy a stake in Hong Kong Express Airways, according to press reports. HKE, formerly Helicopters Hong Kong, was launched in 1997 and provided regular helicopter services between Hong Kong, Macao and the Pearl River Delta region. Last year it re-launched as Hong Kong Express with four Embraer 170s operating to five Chinese mainland cities. The move by HNA follows its ongoing negotiations to acquire up to 60% of Hong Kong's CR Airways.
Continental Airlines yesterday converted 12 existing firm orders for 737NGs to 737-900ERs, becoming the first US carrier to order the type. The aircraft are slated for delivery in 2008. "These new planes will have among the lowest operating costs in our fleet, allowing us to serve high-demand markets more efficiently," Chairman and CEO Larry Kellner said.
SkyWest Inc. reported second-quarter net income of $39.3 million, up 58.5% compared to $24.8 million in the same period a year ago. Operating revenues increased a whopping 105.8% to $790.4 million and operating income doubled to $89.6 million from $44.5 million during the second quarter of 2005.
Revenues, traffic, yields and load factor all rose at Iberia in the second quarter but not as fast as costs, which outstripped the carrier's operational progress and reduced its three-month profit to €35.7 million ($45.6 million), down 21.2% from earnings of €45.3 million in the year-ago quarter.
Continental Airlines said its June consolidated RASM increased 11% year-over-year and that it estimated the July figure to rise 9%-10% over the year-ago month. CO flew 8.74 billion RPMs in July, up 10.8%. Capacity increased 8.9% to 10.24 billion ASMs and load factor rose 1.5 points to 85.4%, matching its July record. Domestic RPMs were up 6.9% to 4.06 billion against a 5.9% gain in ASMs to 4.65 billion, lifting load factor 0.8 point to 87.3%.
World Air Holdings, parent of World Airways and North American Airlines, reported first-quarter net income of $3.5 million, a drop from net income of $9.9 million in the first quarter of 2005. The company, which finally reported its full-year 2005 earnings last month ( ATWOnline, July 11), continues to play catch-up with its financial reporting. Delays in filing required financial reports led to its de-listing by Nasdaq.
WestJet reported second-quarter net income of C$22.4 million ($19.8 million), widened from net income of C$2.3 million in the year-ago quarter, on a 30.3% rise in revenues to C$425 million.
Republic Airways Holdings, parent of Republic Airlines, Chautauqua Airlines and Shuttle America, enjoyed a 51.2% surge in net income during the second quarter to $20.3 million compared to a profit of $13.4 million in the year-ago quarter. The company said significant capacity increases helped drive a 33.3% gain in revenue to $284.3 million. Expenses rose 30% to $231.8 million and operating profit jumped 50.3% to $52.6 million. Since June 30, 2005, Republic has placed 48 Embraer 170s into service and removed seven ERJ-145s and 10 Saab turboprops.
ExpressJet Airlines reported second-quarter income of $23.3 million, a 4% drop from the year-ago period. Revenue increased nearly 8% to $419.4 million, expenses were up 10.2% to $383.8 million and operating income was $35.6 million, an 11.5% decrease. CEO Jim Ream attributed the decline to expenses related to the redeployment of 69 Embraer RJs dropped by Continental Airlines ( ATWOnline, May 8) and "challenging weather" in the Northeast.
ICAO Council President Assad Kotaite retired Monday and was replaced by Roberto Kobeh Gonzalez of Mexico, who will finish the final year of Kotaite's three-year term ( ATWOnline, March 6). ICAO Secretary General Taieb Cherif also started his second three-year term.
Latin American Air Transport Assn. said yesterday that its member airlines reported a combined net loss of $141 million for full-year 2005. Consolidated revenues increased 20.4% to $16 billion as overall RPKs grew 12.1% on an 8.1% rise in capacity. Load factor increased 2.5 points to 70%.
FedEx yesterday extended its contract with the US Postal Service to provide domestic airport-to-airport carriage of mail aboard its aircraft. The new seven-year deal replaces the last two years of a seven-year agreement reached in 2001 and runs through 2013. FedEx predicted the contract, which calls for it to fly more than 4 million lb. of mail daily, will generate $8 billion in revenue over the seven-year period.
A one-time gain from the sale of property in Singapore and record traffic helped lift Singapore Airlines Group to a S$575.1 million ($364.3 million) profit in the first fiscal quarter ended June 30, more than double the S$234.6 million earned in the year-ago period.
CSA Czech Airlines flew 2.5 million passengers in the first six months of 2006, an increase of 6% over the year-ago period. The carrier credited increased service to Russia.
Air China secured approval last week from the China Securities Regulatory Commission for the sale of up to 2.7 billion shares, or 28.6% of its existing share capital, on the Shanghai stock exchange. The airline said it is in the process of conducting a required preliminary price consultation to determine the exact number of shares to be issued as well as an offer price. An Air China official previously told reporters the carrier plans to raise CNY8 billion ($1 billion) through the sale ( ATWOnline, June 15).
Austrian Airlines Group will launch a wholly owned subsidiary that will offer third-party MRO work at its 1,200-employee maintenance facility. "Our primary goal is to make better use of our quite expensive resources at the base in Vienna," CEO Alfred Oetsch told ATWOnline. Currently, AAG is doing work for Lufthansa and a few other carriers. Oetsch said Austrian Technik can compete in the tough MRO business. Further details about the project will be available in September.
Dniproavia of Ukraine said yesterday it has filed suit against the State Service for Aviation Security Supervision for creating "privileged conditions" for Lufthansa by failing to enforce the 1999 bilateral between Ukraine and Germany. It said German authorities prohibited it from operating Dnipropetrovsk-Frankfurt service in March based upon "deceptive allegations" from LH and Ukrainian aviation authorities did nothing to respond.
Pinnacle Airlines is feeling the effects of Northwest Airlines' decision to remove 15 aircraft from its partner's fleet. Pinnacle reported net income of $11.9 million for the quarter ended June 30, down 13.1% from $13.7 million in the 2005 quarter. Operating revenue fell 4% to $204.5 million and operating income was $19.5 million, a 14% drop from the year-ago period.
Ryanair warned of possible fourth-quarter losses and a winter season "characterized by much more difficult trading conditions" and said it did not expect "yield buoyancy to be maintained at similar levels" in the next six months but at least it will be negotiating those hurdles from a position of strength, as it announced a record €115.7 million ($147.6 million) profit in the first fiscal quarter ended June 30, a 79.7% improvement from the €64.4 million earned in the year-ago period.
Boeing named Jim Jamieson senior VP-engineering, operations and technology, adding to his role as senior VP, chief technology officer and head of Boeing Technology. It also announced that Judge J. Michael Luttig of the US Court of Appeals for the 4th Circuit will replace the retired Douglas Bain as senior VP and general counsel. Luttig resigned from the bench. Mesa Air Group yesterday named CD Lauritsen COO of go!, its Hawaii inter-island subsidiary, and Joe Bock chief marketing officer.
Air Botswana said in a statement that it will conclude its privatization in September, with the government considering eight prospective partners. The airline carries 150,000 passengers per year across seven routes, generating $20 million in revenues.
Raytheon Aircraft Services signed a three-year extension with International Flight Training Academy to continue its Bonanza and Baron pilot training program in California for ANA.
Aerospace Industries Assn. named Cord Sterling VP-legislative affairs. AeroTurbine welcomed Michael King as senior VP-material sales. Air Astana chose Richard Ledger as regional GM-EU, USA & Canada. Air France tapped Florence Parly as dir.-strategy & investments. Air Wisconsin introduced James P. Rankin as president & CEO. Alaska Airlines elected Chris Glaeser VP-safety. Aviation Partners Boeing appointed Jerome David CFO. AWAS announced the departure of Crispin Maunder as head of strategic planning.
There is a new breed of airline emerging in Europe that defies conventional pigeonholing. It is neither a low-cost carrier in the strictest definition of the term nor is it a legacy airline. Nor is it a charter carrier, but it is emerging from the demise of the charter business that once was the mainstay of the holiday package industry.
