Caribbean Sun Airlines will shut down on Jan. 31, according to company officials, and close its operational hub at Luis Munoz Marin International Airport in San Juan. Sister carrier Caribbean Star Airlines was granted permission by US FAA in October to expand service to US destinations. "When Caribbean Star was launched in 2000 it could not serve San Juan and other US destinations, which of course hindered growth," Star and Sun President and CEO Skip Barnette explained.
US Airways named Morgan Stanley as joint lead arranger, joining Citigroup, to underwrite the carrier's $7.2 billion in debt financing for its proposed merger with Delta Air Lines.
MAIR Holdings minority shareholder Riley Investment Management, which reportedly holds 5.2% of the Mesaba Airlines parent, said last weekend that Northwest Airlines' offer to acquire Mesaba ( ATWOnline, Jan. 8) is "grossly inadequate" and that it will attempt to block or change the deal. Riley said NWA deliberately "destroyed value for MAIR shareholders" and is now trying to buy the bankrupt regional below fair market value.
Gol is lowering its full-year earnings per share and revenue forecasts following a plunge in December load factor. The Brazilian LCC now predicts revenues of BRL3.85 billion ($1.79 billion) rather than BRL3.9 billion and EPS of BRL3.15-3.30 rather than BRL3.40-3.65. It flew 1.53 billion RPKs in December, up 48.4% from the year-ago month, but capacity soared 65.4% to 2.26 billion ASKs, dropping load factor 7.8 points to 67.4%.
United Airlines expects to post a "modest operating loss" in the fourth quarter after it was hit hard by blizzards at its Chicago and Denver hubs. United and United Express canceled about 3,900 flights last month, resulting in a $40 million drop in anticipated revenue. December traffic fell 0.8% year-over-year to 9.38 billion RPMs against a 1.5% decline in ASMs to 11.77 billion. Load factor dipped 0.4 point to 79.6% and passenger numbers were down 2.5% to 5.4 million.
British Airways appeared to take an important step toward resolving its pension deficit ( ATWOnline, Nov. 20, 2006) last week after the British Airways Forum, which represents the airline's four unions, agreed to recommend BA's latest proposals to union members. "We have come a long way with our staff, trustees and trade unions on this issue," BA CEO Willie Walsh said. "We can now move forward on our plans for fleet renewal and replacement."
Assn. of Asia Pacific Airlines' 17 members reported a 6.2% year-over-year increase in November passenger numbers to 11.2 million. RPKs rose 3.3% to 44.72 billion against a 0.2% fall in capacity to 59.46 billion ASKs, lifting load factor 2.5 points to 75.2%. Cargo jumped 6.2% to 4.89 billion FTKs, capacity grew 5.7% to 7.1 billion ATKs and load factor was up 0.4% to 68.9%. Northwest Airlines flew 6.38 billion RPMs in December, up 1.1% from the year-ago month. Capacity rose 0.1% to 7.9 billion ASMs and load factor went up 0.7 point to 80.7%.
Indonesian officials were attempting to determine late yesterday whether metal detected on the ocean floor off the coast of Sulawesi Island could be the wreckage of the missing Adam Air 737-400 that disappeared Jan. 1 in a heavy rainstorm ( ATWOnline, Jan. 5). More than 100 passengers and crew aboard flight 574 are feared dead.
Singapore Aircraft Leasing Enterprise yesterday ordered 20 A320 family aircraft and exercised 20 options and purchase rights with Boeing for 737NGs in deals valued at a combined $2.8 billion, with all 40 aircraft to be delivered between the 2009 second quarter and the 2012 first quarter.
Australia Deputy Prime Minister and Minister for Transport and Regional Services Mark Vaile hosed down media reports that the government only will approve Airline Partners Australia's A$11.1 billion ($8.64 billion) takeover of Qantas if the airline guarantees that jobs and maintenance facilities remain in Australia.
LTU German Airlines named Michael Grimme as its new director-marketing and international sales. SAS Executive VP-Corporate Administration & Support Bernhard Rickardsen has been let go by new President and CEO Mats Jansson, who said he "would like to renew such areas as human resources." SAS Braathens Head of Human Resources Svein Oppegaard will take over Rickardsen's HR duties, with the rest of his responsibilities redistributed among company management.
Saudi Arabian Airlines is negotiating with both Boeing and Airbus to buy up to 60 aircraft worth up to $12 billion, London's The Business reported. The purchase should bolster its current fleet of 139 planes. Local sources said Saudi Arabian, which is government-owned, is expanding rapidly and needs a variety of new aircraft. Press reports indicate the order will be split between the two manufacturers but delivery will not happen in time for the carrier's proposed flotation in 2008 ( ATWOnline, Aug.
Southwest Airlines flew 5.51 billion RPMs in December, a 10.3% increase over the year-ago month. Capacity was up 8.3% to 7.99 billion ASMs and load factor rose 1.3 points to 68.9%. US Airways Group flew 5.09 billion consolidated RPMs in December, up 4.8% from the year-ago month. Capacity inched up 0.4% to 6.75 billion ASMs and load factor rose 3.2 points to 75.4%. Domestic RPMs climbed 4.4% to 4.29 billion and capacity was level at 5.68 billion ASMs. International traffic was ahead 6.9% to 799.6 million RPMs against a 2.4% gain in capacity to 1.07 billion ASMs.
AirBridge Cargo last week became the 22nd member of the Cargo 2000 alliance. It is the first Russian carrier to join the group. AirBridge serves both Moscow airports, Krasnoyarsk, Frankfurt, Amsterdam, Shanghai, Beijing, Hong Kong and Nagoya. Parent Volga-Dnepr Group VP Stan Wraight said ABC will add three new 747-400ER freighters in 2007 and 2008 and launch service to Toronto and Houston later this year.
Northwest Airlines said Friday that it has reached an agreement to acquire its regional Airlink partner Mesaba Airlines. The offer must be approved by the bankruptcy court and Mesaba parent MAIR Holdings. Both Mesaba and Northwest have been in bankruptcy for more than a year. Mesaba operates a fleet of 46 Saab 340s as an Airlink partner.
FlyAsianExpress will operate flights to destinations in Asia and Europe as AirAsia X, a new long-haul, low-cost carrier launched Friday by AirAsia CEO Tony Fernandes, who owns 50% of FAX, a small Malaysian domestic airline that operates seven 50-seat F50s and five 19-seat Twin Otters on short-haul routes.
Italian government's offer to cede control of Alitalia ( ATWOnline, Dec. 7, 2006) has domestic media buzzing about potential suitors. Finanza Mercata said Air France KLM, which always has been considered a potential buyer, will join with SkyTeam partners Korean Air, AeroMexico and CSA Czech Airlines to bid for AZ.
Sama, a Saudi Arabian startup, said it was granted an operating license by the civil aviation authority ( ATWOnline, Aug. 28, 2006). The airline plans to offer 737-300 service throughout the country and eventually to destinations in the Middle East. It has no plan to operate long-haul routes. "Our priority is to serve as many cities in Saudi Arabia as we can with up to 35 aircraft over the next few years," board member Hatim Mouminah said on the carrier's website.
Delta Air Lines is seeking permission from the US Bankruptcy Court to finalize an order with Bombardier for 30 firm CRJ900s plus 30 options that it said will be used to expand its network and upgrade service, according to documents filed yesterday with the court. The aircraft are scheduled to begin arriving in September with deliveries continuing through February 2010. They will be configured for 76 seats in two classes. The manufacturer "has committed to provide, or cause to be provided, firm backstop financing for Delta's purchase of the aircraft," the airline said.
FlyAsianExpress yesterday received approval from the Malaysian government to operate low-cost long-haul service to Asia, Australia and Europe, the national Bernama news agency reported. FAX, which is 50% owned by AirAsia CEO Tony Fernandes, reportedly may partner with the larger LCC to offer the service. Rumors of a tie-up with Virgin Atlantic Airways and/or easyJet have been denied ( ATWOnline, Jan. 4).
Asiana Airlines reportedly will add both Airbus and Boeing aircraft to its fleet, but press reports yesterday differed on whether the acquisitions involve purchased and/or leased planes. The Associated Press said the Korean carrier agreed to purchase two 777-300ERs, two A321-200s, one A320-200 and one A330-300 and that it is "considering ordering two additional planes from the [A320] family this year," according to an Asiana spokesperson.
American Airlines flew 11.36 billion system RPMs in December, down 1.1% from the year-ago month. Capacity fell 1.3% to 14.35 billion ASMs and load factor rose 0.2 point to 79.1%. Domestic RPMs were down 1.9% to 7.4 billion against a 2.2% decline in capacity to 9.22 billion ASMs. Load factor climbed 0.2 point to 80.2%. International traffic rose 0.4% to 3.95 billion RPMs, capacity was up 0.3% to 5.13 billion ASMs and load factor inched up 0.1 point to 77%. British Airways flew 9.12 billion RPKs in December, a 0.5% drop from the year-ago month.
Pegasus Aviation Finance of California ordered two A350 XWBs and six A330-200s in a deal representing the lessor's first Airbus order and the first public commitment to the new A350 since the program was relaunched last month ( ATWOnline, Dec. 4, 2006).
AirAsia is expected to place another large order for A320s, possibly as early as today. Sources confirmed to ATWOnline that the airline will double its A320 fleet; it operates 15 and has 70 on order ( ATWOnline, July 20, 2006). Part of the pending buy will be the exercise of existing options. The LCC also has 35 737-300s in service that all will be replaced by A320s.
Malev Hungarian Airlines acquired a Mechtronix FFS X Non Zero Flight Time simulator for recurrent pilot training at Budapest Ferihegy. Malev said it is the first FFS X operating in Europe.
