Qantas plans to launch a domestic airfreight subsidiary in October called Express Freighters Australia. The airline said yesterday that the new subsidiary will wet-lease 737-300 converted freighters to Australian air Express, a Qantas/Australia Post joint venture, under a 12-year contract. The dash 300s will be converted to freighters by Qantas Engineering in Avalon.
Indonesian government is throwing state-owned Garuda Indonesia and Merpati Nusantara Airlines a lifeline as both carriers battle soaring fuel prices and newer, more efficient LCCs. According to Bisnis Indonesia, Garuda is to get IDR1 trillion ($110.1 million) and Merpati IDR450 million to assist with restructuring efforts. The Garuda bailout is not linked to its efforts to reschedule $500 million still owed to the European Export Credit Agency. Garuda's total debts top $800 million and its management plans to sell off assets including five DC-10s.
United Airlines yesterday said it applied to operate daily nonstop Washington Dulles-Beijing service beginning in March aboard 747s. It currently operates four daily flights between the countries and announced plans to add 40 weekly transpacific flights following its decision to sell New York JFK-London rights to Delta Air Lines ( ATWOnline, July 31) and transfer its JFK-Tokyo Narita route to IAD starting Oct. 28. Washington is the largest US market without nonstop service to China.
AirAsia secured a $230 million loan to be used to finance the acquisition of six A320s, according to press reports citing Deputy CEO Kamarudin Meranum. The carrier increased its commitment to the type last month with an order for 40 firm and 30 options ( ATWOnline, July 20). The loan was arranged largely by Kuwait Finance House and adheres to Islamic financing principles. AirAsia will lease the aircraft from the lender for 12 years, at which time it will purchase them.
Dragonair flew an all-time record 519,449 passengers in July but said its "bottom line continued to suffer" due to high fuel costs and low yields, which are expected to continue. "The low yields are the result of a more competitive market due to airlines putting on more capacity, both passenger and all-cargo, on China Mainland routes," CEO Stanley Hui said. Dragonair flew 666.6 million RPKs in July, up 14.5% over the year-ago month. Capacity climbed 3.7% to 929.5 million ASKs. Iberia flew 4.63 billion RPKs in July, up 0.6% from the year-ago month.
AeroRepublica signed a lease agreement with GECAS for two Embraer 190s for delivery next year. The carrier now has commitments for seven of the type, plus options and purchase rights for an additional 20 through 2011.
Regional Express Airlines of Australia said it has "fast tracked" merger discussions with Sunshine Express Airlines. Under the proposed transaction, all Sunshine shares will be transferred to Rex "for a nominal consideration." Rex MD Geoff Breust said the deal is in line with its "mission of connecting regional Australia" but cautioned that Sunshine is in a tenuous position and likely won't survive absent the proposed merger.
Jet Airways and Air Sahara planned merger, which collapsed in June ( ATWOnline, June 30), appears to be back on the runway, according to India's Economic Times. The newspaper reported that sources at both airlines maintain the deal is making progress. The carriers have sparred in court over the fate of a INR5 billion ($107.2 million) escrow account tied to Jet's aborted acquisition of its rival.
US Joint Planning and Development Office, the multiagency body charged with developing the Next Generation Air Transportation System, will be headed by Charles Leader, formerly of Hughes Aircraft, the Dept. of Transportation announced.
UAL Corp., parent of United Airlines, named former VP and Treasurer Kathryn Mikells as VP-financial planning and analysis replacing Amos Kazzaz, who becomes VP-cost management. Mikells will be replaced by Stephen Lieberman, formerly of General Motors.
ABX Air last week reported second-quarter net income of $6.5 million, down slightly from $6.8 million in the year-ago quarter, on a 13.6% decline in revenues to $303.6 million. The cargo carrier attributed much of the revenue drop to the May 1 transfer of its line-haul truck operations to DHL, the express delivery giant for which ABX provides US air service. DHL still accounts for the vast majority of ABX's business, but non-DHL charter operations did generate $5.4 million in revenues during the quarter, a 69% increase.
Cathay Pacific Airways flew 6.43 billion RPKs in July, a 7.4% increase over the year-ago month. Capacity rose 6.6% to 7.59 billion ASKs, lifting load factor 0.6 point to 84.6%.
India's Jet Airways, which launched service to London last year, confirmed in a weekend statement that it has suspended UK employee Asmin Tariq, who was one of 24 people arrested in London as a suspect in the terrorist conspiracy uncovered last week. Tariq was a security employee absorbed by Jet when the carrier ended its contract with his former employer, G4S, which has relationships with British Airways, Singapore Airlines, Thai Airways, SAS and others, according to Jet.
SpiceJet announced an operating profit of INR715.2 million ($15.4 million) for the fiscal year ended May 31 on a higher-than-expected INR4.53 billion in revenue and yesterday celebrated its first year under a new name by confirming the conversion of its 10 737NG options into firm orders for five dash 800s and five dash 900s.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, earned $10.7 million in the second quarter, narrowed 33% from $15.9 million earned in the year-ago period, on a 7.3% decrease in revenues to $366.4 million. President and CEO William Flynn attributed the lower results to reduced scheduled flying and substantially higher fuel prices in scheduled service.
Singapore Airlines and Virgin Atlantic Airways launched interline e-ticketing last week. The airlines already codeshare and have linked loyalty programs and a joint lounge arrangement. Separately, Virgin launched a route-specific inflight magazine called DXB available to passengers on flights between London Heathrow and Dubai.
Buoyed by a 39.6% increase in second-quarter net profit to C$236 million ($210.4 million), Air Canada parent ACE Aviation Holdings announced Friday its intention to launch an IPO of a minority stake in the mainline and to "monetize" Air Canada Technical Services later this year.
Origin Pacific Airways suspended passenger service on Aug. 10, saying that a "hoped for capital injection" did not occur but that its "profitable" freight business would continue, albeit with a "fraction" of its 260 employees. It announced Friday that it let go all passenger service staff and was unable to offer any assistance to stranded passengers. The nine-year-old airline said Air New Zealand reneged on an agreement to assist those passengers following comments made by a Member of Parliament from Nelson, OPA's home city. It served 11 destinations.
United Airlines flew 11.07 billion system RPMs in July, a 3.4% increase over the year-ago month. Capacity rose 1.9% to 12.62 billion ASMs, lifting load factor 1.3 points to 87.7%. Copa Airlines flew 372.9 million RPMs in July, a 14.2% increase over the year-ago month. Capacity rose 12.1% to 449.3 million ASMs and load factor was up 1.5 points to 83%. LAN Airlines reported a 4.7% increase in July system traffic and a 6.9% rise in capacity that dropped load factor 1.6 points to 77.5%.
Sabre Holdings signed a five-year, full-content distribution agreement with JetBlue Airways. Expedia signed a five-year contract with US Airways, making the carrier's inventory and services available on Expedia.com and its affiliated sites.
Boeing announced a 50/50 joint-venture agreement with VSMPO-AVISMA of Russia for the machining of titanium forgings for the 787. The companies have been working together since 1997 and signed an MOU on the titanium JV in April. VSMPO-AVISMA will perform rough machining in Verkhnaya Salda before final machining and processing is completed by Boeing in Portland, Ore.
Northwest Airlines flight attendants announced Friday that the deadline for commencement of targeted unannounced work actions against the carrier was extended to Aug. 25 from Aug. 15 as a result of last week's terrorist threat. "In order to devote our full attention to the immediate security situation and to reduce the stress level for flight attendants until the initial reaction of the security news subsides, we have decided to extend our strike deadline by 10 days," Assn. of Flight Attendants-CWA Interim Master Executive Council President Mollie Reiley said. The union set the Aug.
Quali-audit, an Air France Consulting subsidiary, launched operation as an IATA Operational Safety Audit Organization. It will employ 18 auditors from major airlines.
