GE Commercial Aviation Services and Boeing announced an order yesterday for 30 firm and 30 option 737NGs, a deal worth approximately $4 billion at list prices.
AMR Corp., parent of American Airlines, reported in an SEC filing that it expects first-quarter consolidated unit revenue to increase 9.9%-10.9% over the year-ago quarter. Unit costs were 11.83 cents in February, or 8.57 cents excluding fuel. Quarterly CASM is expected to be 11.36 cents, or 8.13 cents excluding fuel. AA has hedged 32% of its first-quarter fuel consumption at $63 per barrel. Separately, AMR announced the return of Thomas Horton, who will become CFO and executive VP-finance and planning. Horton left AMR in June 2002 to join AT&T.
Lufthansa Technik Group, which saw its operating profit climb 26% to €258 million in 2005 ( ATWOnline, March 24), said growth should slow in 2006 as the competitive environment heats up. LHT Executive Board Member August Wilhelm Henningsen said at a press briefing that he expects 4%-5% growth in business this year, all of which should come from outside Lufthansa Group. Last year, 58% of LHT's work came from third-party clients as it increased its total global customer base by 4%. To compensate for the decline, it will continue to target cost savings.
Etihad Airways' owner, the government of the United Arab Emirates, expects a return on its investment by 2009, VP-Commercial Geert Boven told ATWonline. The government invested AED500 million ($136 million) to have its own national carrier, yet "we have to run the airline as a commercial enterprise. The government expects return on investment within the four or five years after its launch in 2003," according to Boven, who admitted the government is seeking recognition as an important player on the international business stage as well as financial return.
Delta Air Lines and its pilots, represented by the Air Line Pilots Assn., were told last week by a three-man arbitration panel to continue negotiating ahead of an April 15 deadline and to submit confidential progress reports on April 3 and 7, according to press reports. Arbitrator Richard Bloch said a ruling by the panel would constitute "an abandonment of responsibility that will and should haunt all of you." Meantime, ALPA's Strike Preparedness Committee will conduct a practice strike tomorrow.
Delta Air Lines announced yesterday that it will make a significant investment in improving passenger service at its Atlanta hub, adding 50% more lobby space, 24 self-service kiosks with international check-in capability, 14 lower-level check-in positions, redesigned gate seating and a new Crown Room Club on Concourse C. It has added 24 international routes from Atlanta since September and launched or expanded service in more than 30 domestic markets. Most changes will be completed next month.
Gol signed a contract with STG Aerospace to retrofit its 24 737s with the SafTGlo photoluminescent floorpath marking system by the end of the month. It will be installed on future deliveries as well.
Malaysia Airlines delivered the news its employees feared ( ATWOnline, March 24), announcing it will abandon all but 19 domestic routes to AirAsia, take 19 aircraft out of service and lay off approximately 6,500 employees, or about 28% of its workforce.
Cabin staff at Comair, a Regional partner of Delta Air Lines, will be in bankruptcy court this week attempting to stop a proposed $8.9 million in pay cuts the company has said it needs to survive. The flight attendants, represented by the International Brotherhood of Teamsters, balked at the pay cuts and voted Friday by a 93% margin to authorize a strike.
Swiss International Air Lines will add six RJ100s to its fleet during the summer schedule to replace its last ERJ-145s. Separately, Swiss will change terminals at Stockholm Arlanda and Tokyo Narita. In Stockholm it will move into Terminal 5, where most of its future Star Alliance partners are housed. From June 1 it will join its Star partners in the upgraded Terminal 1 at Narita.
Korean Air is boosting summer services and upgrading aircraft used on the Seoul-New York JFK route. Weekly flights to Seattle will increase from three to four and weekly frequencies to Toronto will rise from two to three. Other increases are Paris CDG from five weekly flights to daily, Amsterdam and Zurich to thrice-weekly and Moscow to four-times-weekly. From Aug. 1 Korean will introduce 777-200ERs with cocoon-styled sleeper seats on the JFK route. The aircraft also feature AVOD in all three classes, inflight Internet and revamped interiors.
Iberia said it is very satisfied with the situation at the new Terminal 4 at Madrid Barajas less than two months after it moved its operation into the €6 billion ($7.22 billion) facility. "In most operational parameters we are performing better now than before the move," said Iberia's Luis Garcia Ruiz, who coordinated the relocation. "We're scoring better in punctuality, overall customer satisfaction and baggage punctuality."
Singapore Changi opened its new Budget Terminal Sunday. Tiger Airways, which operates a fleet of four A320s, is the first and only airline currently operating out of the $27.5 million facility, construction of which was completed in January. Tiger operated 16 flights (eight departures and eight arrivals) Sunday. "We are happy to have so many flights on the first day of operations at the new Budget Terminal.
Royal Air Maroc will launch a major capacity increase with its summer schedule in an effort to bring more connecting traffic from North America and Europe into Africa. Total network ASKs will lift by more than 30% compared to summer 2005. In detail, RAM will offer 40% more capacity on international flights and 14% more on its domestic network aimed at consolidating traffic at its Casablanca hub. Capacity to France will rise 51% from April 1.
Assn. of Asia Pacific Airlines' preliminary traffic results for February showed a 4.1% growth in international passenger boardings. Passenger traffic (RPKs) rose at the same rate and that, combined with slower expansion of capacity--up 2.5%--pushed load factor up 1.1 points to 73.8%. International freight traffic was more robust, lifting 5.3% in FTKs. Again capacity growth was modest at 2.6%, resulting in a 1.7-point increase in load factor to 66.9%.
Austrian Regional carrier Styrian Spirit shut down operations Friday, stranding hundreds of passengers, and subsequently declared insolvency. The Graz-based airline had been hopeful of securing a potential partner who would have injected €5 million ($6 million), but the deal fell through and 152 employees will lose their jobs. CEO Andreas Roesslhuber told ATWOnline a few days prior to the closure that the carrier needed €6-€9 million in fresh capital. Total debts are estimated at around €44.4 million.
Avexus announced that Kitty Hawk Aircargo selected Avexus software solutions--hosted centrally through the Internet-based Avexus Hosted Solution Environment--to manage the end-to-end maintenance operations of its fleet. Included are Avexus Asset Management & Operations as well as its Maintenance, Repair & Overhaul software solutions. Additionally, the solutions will provide performance reporting and analytics.
Mesa Air Group yesterday announced the name and launch date of its new Hawaii-based inter-island carrier. The airline will be called go! and will commence operations June 9, flying regional jets and charging one-way fares of $39. "We are delighted to initiate service in Hawaii. Our goal is to provide local families, friends and business people with a fun, high-quality and low-cost airline for travel between the islands," Mesa Air Group Chairman and CEO Jonathan Ornstein said in a statement.
CIT Group placed a $165 million order for CFM56-5B installed and spare engines to power 12 firm A320 family aircraft scheduled to begin delivery in 2007.
BWIA West Indies Airways appointed Peter Davies CEO effective March 17, replacing interim CEO Nelson Tom Yew. Davies most recently was CEO of SN Brussels Airlines. Prior to joining SN Brussels, he spent 14 years at DHL.
Lufthansa Group overcame the effect of soaring fuel prices that added €843 million to expenses, along with tough competition from European low-fare airlines, as it reported net earnings for 2005 of €453 million ($547 million), up 12.1% over earnings of €404 million in 2004.
