Swiss World Cargo and Lufthansa Cargo Charter signed a marketing and sales cooperation agreement last week enabling Swiss to sell charter capacity on Lufthansa flights.
In its first year following its transfer from the Israeli government to Knafaim Arkia Holdings, El Al reported the highest annual net earnings in its history, a $64.1 million profit that represented a 94% increase over 2004 earnings of $33.1 million. Revenues rose 17% to $1.62 billion against a 9.7% decline in operating expenses to $1.2 billion. The airline said it realized $65 million in fuel hedge gains as fuel costs climbed 44% to $388 million. Operating profit jumped 53.7% to $89 million.
AirNet Systems, which operates 125 aircraft and provides air transport services to banks and time-critical small package shippers along with passenger charter services through its Jetride subsidiary, reported a 2005 net loss of $4.2 million, narrowed from a $34.1 million loss in 2004. It posted a fourth-quarter profit of $116,000. Tampa Cargo reported revenue of $160.7 million in 2005, a year-over-year increase of 16.6%. RTKs climbed 10.1% to 492 million and load factor rose 12.3 points to 81.4%.
US Airways is shutting down what remains of Regional subsidiary MidAtlantic Airways on May 28, resulting in 368 layoffs in Philadelphia and Pittsburgh, according to press reports. MidAtlantic was established in 2002 to operate 70-seat Embraer 170s and provide jobs for furloughed mainline pilots. US Airways already had sold off most MidAtlantic assets to Republic Airways, which will continue operating the aircraft and routes on behalf of the Major following the transfer.
Thai Airways and Lao Airlines signed an MOU Thursday designed to encourage tourism and travel to Laos while promoting Thailand as the gateway to the peninsula. The carriers eventually will codeshare on the Bangkok-Vientiane and Chiang Mai-Luang Prabang routes and interline on flights from the US, Australia, France and Japan into Laos.
Flybe reversed its financial fortunes in the fiscal year ended March 31, 2005, posting a profit before tax and exchange rate gains of £6.6 million ($11.5 million) compared to an FY04 loss of £3.2 million. The result fell short of Chairman and CEO Jim French's December projection of an £8 million pre-tax surplus ( ATWOnline, Dec. 19, 2005). Passenger numbers increased 19.2% to 4.03 million as the carrier introduced 29 new routes.
AMR board of directors announced a change to the compensation program for American Airlines management. It provides for a combination of stock and cash distributions for compensation granted under the 2003-05 Performance Share Plan, previously known as the Performance Unit Plan, AMR said. Cash payments will be consistent with AA's Annual Incentive Plan. The board made similar changes to the 2004-06 plan.
SITA named MD Francesco Violante CEO effective July 1. Air Transport Assn. named Sharon Pinkerton VP-government affairs. She joins ATA on April 17. She currently is FAA assistant administrator for aviation policy, planning and environment.
Swiss International Air Lines and Spanair, Star Alliance partners as of Saturday, entered into a codesharing arrangement effective May 1 covering flights from Zurich and Geneva to Barcelona, Madrid, Palma de Mallorca and Malaga.
Aer Lingus appointed Niall Walsh deputy chief executive, Greg O'Sullivan finance dir., Enda Corneille commercial dir., Stephen Kavanagh planning dir., Liz White human resources dir. and Dick Butler ground operations dir. AeroMexico promoted Kristian C. Anderson to national accounts mgr.-US. AirAsia welcomed Timothy Ross as executive VP-corporate affairs & strategy. Alaska Air Group named Karen Gruen MD-corporate affairs & asst. corporate secretary. Alteon Training elevated Marsha Bell to VP-first officer programs. American Airlines tapped Lynda Johnson as GM-Dallas Love Field.
It was not so long ago that India's skies were tightly controlled by a government that viewed air travel as an elitist business. Now they are opening up fast. Apart from the consumer, probably the biggest beneficiary of liberalization is Jet Airways. The Mumbai-based airline has chipped its way through a system in which everything from the choice of routes to the fares charged had to be cleared by the government. Following the acquisition of rival Air Sahara in January, Jet is in a dominant position and now controls about 50% of the domestic market.
Northwest Airlines expects to have its new Regional carrier, now named Compass Airlines, up and running by June, based on a filing with the US Dept. of Transportation asking DOT to transfer Independence Air's operating certificate to Compass. NWA acquired defunct Independence Air's certificate earlier this month.
Gol said its wholly owned Gol Finance priced its previously announced offering of $200 million aggregate principal amount of 8.75% senior unsecured perpetual notes. The notes have no fixed final maturity date but will be callable at par after five years. Proceeds will be used to finance acquisition of 737NGs "as a complement to its US Eximbank guaranteed bank financing." The transaction is expected to close April 5.
Copa Holdings, parent of Panama's Copa Airlines and Colombia's AeroRepublica, concluded "an excellent year" with yesterday's announcement of a record profit of $82.7 million for 2005, an increase of 20.6% over a 2004 profit of $68.6 million, and fourth fiscal quarter net earnings of $17.4 million, a 46.3% improvement over the $11.9 million earned in the year-ago period. Copa credited high demand, improved economic conditions in Latin America and the popularity of its "Hub of the Americas" at Tocumen International Airport for its performance.
Delta Air Lines will cut approximately 1,000 management and administrative jobs, according to an internal memo released last week cited by press reports. Last fall the bankrupt carrier targeted 7,000-9,000 positions throughout the company for elimination by next year ( ATWOnline, Sept. 23, 2005). Among the departures will be marketing head Paul Matsen. It is not clear if Matsen's departure is related to the cuts.
Austrian Airlines Group named Manfred Helldoppler as the new MD for its Tyrolean Airways subsidiary, which operates under the brand Austrian Arrows. He replaces the retiring Johann Messner.
American Airlines announced the signing of a five-year comprehensive content distribution agreement with Worldspan yesterday that will go into effect Aug. 1.
VLM Airlines reported its eighth consecutive annual profit, posting net earnings of €1.35 million ($1.6 million) in 2005, a 43% increase over 2004. Revenues rose 17% to €88.5 million and operating expenses climbed 16.5% to €85.9 million. Operating profit increased 42% to €2.5 million. At the end of the financial year, the airline's cash balance stood at a healthy €6.9 million, an increase of more than 200% from the previous year. "These are positive results, but we are eager to achieve more.
JAT is expected to decide by the end of this month that it will restart transatlantic service to New York and Toronto. It plans to use two 767-200ERs on the routes. It is also in the final phase of negotiations for the purchase of two Embraer 170s, sources close to the airline told ATWOnline. It will operate two 737-400s, five 737-300s and four ATR-72s on 177 weekly flights to 36 international and three domestic destinations during its summer schedule.
Virgin Atlantic opened a new £11 million ($19.2 million), 8,000-sq.-ft. club lounge at London Heathrow on Monday that features a spa pool, cinema, salon, rooftop garden, game room and other facilities and amenities. Architect was Softroom of London.
KLM named Senior VP-Operations Control & Fleet Services Michel Coumans MD of KLM cityhopper and CEO of KLM cityhopper UK effective April 1. He succeeds Elfrieke van Galen, who will take a new position within KLM Group. Amadeus named Mary Keagul North America VP-product strategy and operations responsible for the company's portfolio of e-commerce solutions.
Hooters Air is going bust after chipping steadily away at its flight schedule over the past three months. It will end scheduled service by April 17, according to the Myrtle Beach Sun News. The airline is owned by Robert Brooks, chairman of Atlanta-based restaurant chain Hooters of America. He launched Hooters Air in 2002 after acquiring Pace Airlines, a North Carolina-based charter carrier. Based at Myrtle Beach International Airport, Hooters was designed for leisure travelers. It eventually extended service to 15 destinations and operated up to seven aircraft.
ANA Group, on the back of higher traffic and strong long-haul premium class business to the US and Europe, raised its net profit forecast to ¥23 billion ($196.8 million) for the fiscal year ending March 31. The final quarter will be its 11th consecutive profitable quarter. On Jan. 31, ANA said it expected a consolidated operating profit of ¥78.5 billion on revenues of ¥1.35 trillion but it now expects an operating profit of ¥86 billion on revenues of ¥1.37 trillion.
As Boeing trumpets the early success of its Dreamliner program, the pressure on Airbus to counter its rival's offering continues to grow. ILFC Chairman and CEO Steven Udvar-Hazy, whose company ordered 12 A350s in November, surprised an audience at the International Society of Transport Aircraft Trading conference in Orlando yesterday by calling on Airbus to abandon its current A350 design plans, which are based partially on the A330, and build an all-new aircraft with a new fuselage and new wing that can compete with the technologically advanced 787.
Qantas said yesterday it plans to raise $400 million of unsecured debt through a Rule 144A/Regulation S offering of 6.05% 10-year notes due in 2016. The offering is priced at 133 basis points over the 10-year US benchmark treasury bond. "The notes were rated Baa1 by Moody's Investor Services and BBB+ by Standard & Poor's and were well received by investors," Qantas CFO Peter Gregg said.
