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.
ANA cited continued economic recovery in Japan and "strong demand for individual and international business travel" for a more than threefold growth in net profit in the first fiscal quarter ended June 30. The carrier earned ¥7.6 billion ($66.3 million) compared to ¥2.1 billion in the year-ago period. It said it will not change its full-year forecast of ¥27 billion in earnings on revenues of ¥1.42 trillion because of fuel costs, which it said rose ¥9.5 billion in the first quarter.
Iberia's efforts to return its Barcelona operations to normal following Friday's action by ground workers ( ATWOnline, July 31) included the transfer of more than 100 employees from other airports, two additional aircraft and the placement of extra staff on all shifts until Wednesday, it said yesterday, adding that the airport "is now operating normally" although the carrier is still working on shipping baggage.
Northwest Airlines flight attendants set up a showdown with the bankrupt carrier late yesterday, rejecting the tentative agreement reached two weeks ago in "around-the-clock negotiations" between NWA and the Assn. of Flight Attendants-CWA ( ATWOnline, July 18) by a vote of 3,266 to 2,637. "Our members have spoken. These drastic cuts to our pay, benefits and work rules are simply unacceptable," AFA-CWA Interim MEC President Mollie Reiley said.
Heavy losses on its startup international operations dragged Jet Airways to a INR450 million ($9.7 million) loss in the first fiscal quarter ended June 30 from a INR953 million profit in the year-ago period. And the carrier issued a warning on the domestic front as well, saying that it has concern for the industry "in view of irrational pricing by airlines simply seeking to gain market share."
AirTran Airways will launch daily Gulfport/Biloxi-Fort Lauderdale service on Aug. 29 Bmi regional will increase frequency on its Edinburgh-Manchester route to six daily weekday flights from Sept. 4. It also canceled its Leeds Bradford-Cork service. Flyglobespan will launch daily Liverpool-Newark service on May 25, 2007.
Atlas Air Worldwide Holdings said yesterday it will pay off approximately $141 million of principal under two aircraft financing facilities using cash from existing balances and will terminate an existing revolving credit facility with no borrowings outstanding.
DHL yesterday signed a multimillion-dollar, two-year agreement with Electrolux, a leading producer of powered appliances, to serve as the company's exclusive global air express services provider.
Avion Group announced the following changes to its Aviation Services division, which comprises Air Atlanta Icelandic, Avion Aircraft Trading, Avia Technical Services and Southair: VP-Finance and assisting CEO Hannes Hilmarsson is the new CEO of Air Atlanta, replacing Hafthor Hafsteinsson, who will be the carrier's chairman. AAI VP-Sales and Marketing David Masson is the new CEO of AAT, replacing Hafsteinsson, who will become executive chairman and remain CEO of Aviation Services. Johann Karason is AAI's new VP-sales and marketing.
