Delta Air Lines on Friday filed for final US Bankruptcy Court clearance to terminate its pilots' pension plan effective Sept. 2. The move, which the pilots union has agreed not to oppose, would affect 13,000 active and retired workers and is part of the carrier's effort to cut costs in order to emerge from Chapter 11 bankruptcy protection. Defined retirement programs for 91,000 active and retired flight attendants and ground employees will not be terminated, the airline said.
US Dept. of Transportation said the 20 US carriers reporting ontime performance posted a 72.8% ontime arrival rate in June, down 2.4 points from the year-ago month. They canceled 1.7% of scheduled domestic flights, up 0.1 point. The mishandled baggage rate of 6.28 reports per 1,000 passengers fell from 6.32 in June 2005. Hawaiian Airlines posted the best ontime arrival rate of 94.6% while Atlantic Southeast Airlines' 63.5% was the worst. Mesa Airlines canceled 5% of its flights and JetBlue Airways and Frontier Airlines canceled just 0.1% each.
Slovak Airlines ownership faces an uncertain future. Austrian Airlines Group, which holds 62% of the Slovakian carrier, is evaluating its relationship with the subsidiary, which it took over in 2005. "We rescued Slovak Airlines and in doing so, we did the government a favor. But with that deal, there were commitments from the government, which so far have not been met," Austrian CEO Alfred Oetsch told ATWOnline. The deal included a commitment from the Ministry of Transport, which promised to assume debts when Austrian bought in.
Hainan Airlines parent HNA Group took a 45% stake in Hong Kong Express Airways following receipt of approval from the Hong Kong Economic Development and Labour Bureau. The expected move ( ATWOnline, Aug. 4) will see the balance of the airline remain with the original shareholders.
Gol flew 1.46 billion RPKs in July, a 52.3% increase over the year-ago month. Capacity rose 44.8% to 1.74 billion ASKs and load factor went up 4.2 points to 84.1%. Kenya Airways flew 1.65 billion RPKs during the first fiscal quarter ended June 30, a 19% rise over the year-ago quarter. Capacity grew 20% to 2.34 billion ASKs and load factor fell 0.4 point to 70.4%.
European Commission is formally investigating the restrictions placed on flights between Sardinia and mainland Italy by the Italian Transport Ministry and Civil Aviation Authority, which have designated the routes PSO protected and therefore unavailable to non-Italian carriers. Airlines such as Ryanair and easyJet have complained about the restrictions ( ATWOnline, May 15), which they claim violate EU rules that grant EU-based carriers liberal route access.
Air Traset An-28 crashed in eastern Democratic Republic of Congo Thursday, killing all 14 passengers and three crew, according to press reports. The aircraft was attempting to land in Bukavu when it clipped a mountain and went down in a forest 9 mi. short of the runway. DRC was one of five countries subjected to a total ban on the most recent EU airline safety blacklist ( ATWOnline, June 21).
Embraer announced Friday that Frederico Fleury Curado has been appointed by the company's board to succeed retiring President and CEO Mauricio Botelho when he retires in April. Curado, a 45-year-old aeronautical engineer, has been with Embraer since 1984 serving in a variety of positions. For the past eight years he has been executive VP-airline marketing. After he retires, Botelho will continue to serve as chairman. The manufacturer said it made the succession announcement nine months in advance to ensure a "smooth and harmonious transition process."
US Cargo Sales Joint Venture, which handles US cargo sales and marketing for SkyTeam Cargo carriers Air France, Delta Air Lines and Korean Air, yesterday named Chang-Hoon Kang as its new CEO. Kang, previously managing VP-cargo network and revenue management for Korean Air Cargo, replaces J.D. Cha, who was reassigned to Korean Air Cargo's Seoul headquarters.
SAS Group announced that Gunnar Reitan assumed the post of acting president and CEO on Aug. 1. He fills the position vacated by Jorgen Lindegaard, who resigned in May ( ATWOnline, May 17). The company said Reitan has been a member of SAS Group management since 2001, responsible for the Subsidiary & Affiliated Airlines and Hotels and the Alliances & Partnerships divisions. He joined SAS in 1988 as director-station services in Oslo.
Saudi Arabian Airlines finalized a privatization program for five of its units--catering, cargo, ground handling, pilot training and technical services--and is preparing to submit its plan to national authorities for certification. According to the Arab Air Carriers Organization, the airline said the new units will be financially and managerially independent and sold through a public offering.
Bmi mainline and regional pilots represented by the British Airline Pilots' Assn. began voting yesterday on whether to authorize a strike action. Balloting at bmibaby started last week. The result of the former will be released on Aug. 24 and that of the latter on Aug. 16. The union said there are different issues facing pilots at each of the divisions but that they are united against the "imposition" of a 2.4% pay increase.
AirAsia's shares have been sold down by 21% in the past month following the Malaysian government's decision to give Malaysia Airlines the green light to exercise pricing freedom on its domestic routes ( ATWOnline, July 12), allowing it to compete with AirAsia with cheaper fares.
American Airlines flew 13.3 billion system RPMs in July, a 2.3% decline from the year-ago month. Capacity fell 4.5% to 15.28 billion ASMs and load factor rose 1.9 points to 87%. Domestic RPMs dropped 4.9% to 8.5 billion against a 7.6% fall in ASMs to 9.63 billion, raising load factor 2.4 points to 88.2%. International traffic grew 2.7% to 4.81 billion RPMs, capacity increased 1.3% to 5.66 billion ASMs and load factor was up 1.2 points to 85%. Ryanair transported 3.9 million passengers in July, a 23.2% increase over the year-ago month. Load factor remained at 90%.
Lufthansa said yesterday that it has no plans to exercise its right to buy back shares as foreign control of the German flag carrier exceeded 40% for the first time. Under European law, a company would forfeit its operating license and rights to fly to destinations outside Europe if foreign shareholders hold the majority of its capital, Lufthansa said.
Boeing and SIA Engineering Co. said this week they have reached an agreement under which the MRO operator will participate in the manufacturer's Integrated Materials Management program. Using IMM, Boeing and other suppliers will own aircraft parts that will be stored at SIAEC's main maintenance base until needed. SIAEC will pay for the parts as it uses them, reducing inventory holding costs.
Swissport International acquired Japanese ground handling company ShinMaywa Ground Services from ShinMaywa Industries for an undisclosed price. SGS provides handling and line maintenance at Osaka Kansai, Tokyo Narita, Fukuoka and Nagoya, employing approximately 170 and generating some CHF11 million ($9 million) in annual operating revenue.
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.
