Qantas shelved plans to establish intra-Asia freight services through a Thai-based joint venture amid deepening concerns about rising fuel prices and the medium-term outlook for air cargo. Executive GM-Associated Businesses Grant Fenn said the airline has "put back indefinitely" the start of flights by 49%-held Thai Air Cargo.
Northwest Airlines' tentative agreement with its pilots ( ATWOnline, March 6), if ratified, likely will curtail growth opportunities for Pinnacle Airlines, Northwest's primary Regional partner, said JP Morgan analyst Jamie Baker.
Gol exercised two more options from its order for 101 737-800s, increasing the number of firm orders to 67 from 65 and leaving 34 options. It currently operates 43 737s and will begin taking delivery of its 737NGs this year. By year end it will operate 12 dash 300s, 26 dash 700s and 20 dash 800s. By 2012 it plans a fleet of 90 aircraft comprising 19 dash 700s and 71 dash 800s.
Lufthansa was forced to cancel about 56 domestic and European flights Friday morning owing to heavy snowfall across Germany. Flights were delayed by up to an hour. The airline said that all long-haul flights were expected to operate on time.
Midwest Airlines partnered with rival Northwest Airlines on a loyalty program initiative that will allow members to earn and redeem miles on each other's flights. Midwest members can redeem miles on KLM flights as well.
British Airways flew 8.1 billion RPKs in February, up 3.6% on the year-ago month, against a 3% rise in capacity to 11.38 billion ASKs. Passenger load factor inched up 0.4 point to 71.2%. Southwest Airlines reported a 17.3% increase in February RPMs to 4.69 billion. Traffic climbed 8.5% to 6.85 billion ASMs, lifting load factor 5.2 points to 68.5%. Ryanair flew 2.6 million passengers in February, an improvement of 22%. Load factor declined 1 point compared to February 2005 to 78%.
SAS Cargo said it had its best-ever result last year as it reported a pre-tax profit of SEK68 million ($8.6 million), up from SEK14 million in 2004, on revenues of SEK3.3 billion, up 17%. EBIT jumped to SEK83 million from SEK35 million. Improvement was achieved in spite of a 5.4% decline in yield.
ANA's codeshare agreement with Skynet Asia Airways ( ATWOnline, Jan. 31) will commence April 1 and calls for the placement of ANA's code on SNA flights from Tokyo Haneda to Miyazaki, Kumamoto and Nagasaki. SNA flights will be available through ANA sales and reservation systems. In addition, SNA will move from Terminal 1 at Haneda to ANA's Terminal 2, where its customers will have access to ANA's self-serve check-in and ticketing kiosks.
IATA reported that the world's airlines continued their momentum into the new year as international passenger traffic rose 6.2% in January while airfreight grew 5.3%, suggesting that the world economy may be heating up after last year's second-half slowdown in FTKs. Total passenger capacity climbed 4.6% and cabin factor was 74.6%. Cargo capacity kept pace with the rise in traffic with ATKs up 5.2%. Strongest RPK growth was recorded by Middle East airlines, up 18.3% on an 11.7% rise in ASKs.
Business Turnaround Plan released last week by Malaysia Airlines charts a course for a return to the black by 2007 and outlines an economic, operational and philosophical overhaul of the underachieving carrier, which admitted that low yields and surging costs will exhaust its cash by April unless it implements drastic changes ( ATWOnline, Feb. 28). Following three consecutive loss-making quarters, MAS said its "primary obligation to the government and all other shareholders is to drive top-tier financial performance.
Northwest Airlines and negotiators for its pilots union reached a tentative agreement on a new contract Friday afternoon, postponing the near-term possibility that the US Bankruptcy Court will impose a settlement, potentially leading to a walkout by the pilots. In a statement, NWA said the agreement provides all of the $358 million in annual labor and benefit cost savings it is seeking from cockpit crewmembers. Further details were not provided.
Delta Air Lines reported a $300 million net loss for January including $87 million in reorganization charges, which compares to a $314 million deficit in January 2005.
Lufthansa Flight Training announced that it will have an A380 flight simulator from Thales available from early 2008. Currently, LFT operates 32 flight simulators of 20 different aircraft types and provides training outside the Lufthansa companies to 100 other airlines.
Aer Lingus announced the following appointments to its senior management team: COO Niall Walsh to deputy chief executive, Greg O'Sullivan to finance director, Enda Corneille to commercial director, Stephen Kavanagh to planning director, Liz White to human resources director and Dick Butler to ground operations director.
American Airlines reported a 2.7% increase in February traffic to 9.86 billion RPMs. Capacity dropped 1.2% to 13.14 billion ASMs, lifting load factor 2.8 points to 75%. Domestic RPMs increased 2.2% to 6.63 billion as capacity fell 3.5% to 8.5 billion ASMs and load factor rose 4.3 points to 78%. International traffic climbed 3.7% to 3.23 billion RPMs on a 3.4% rise in capacity to 4.65 billion ASMs. Load factor inched up 0.2 point to 69.4%. Continental Airlines said its estimated February consolidated RASM increased 8%-9% over the year-ago month.
International Aero Engines said Adria Airways, the launch customer for the V2500, signed on as the first European customer for the V2500Select aftermarket program, a combined engine upgrade and support initiative. The upgrades will be released in 2008 and retrofitted to Adria's three V2500-powered A320s. Mexicana Airlines also extended its V2500Select agreement to cover its 26 A320s and six spare engines.
Korean Air and AeroMexico announced a codeshare agreement effective March 1 allowing Korean Air passengers arriving in Los Angeles to connect to AeroMexico flights to Mexico City and Guadalajara. AeroMexico passengers will be able to connect through LAX to KAL's Seoul service. The airlines already share loyalty program reciprocity through SkyTeam.
Air Gabon International is the newly formed flag carrier of the Central African country. After the signing of a shareholder agreement between the transport minister of Gabon and Royal Air Maroc President and GM Driss Benhima, the new carrier will begin operations at the end of the first quarter with a fleet of two aircraft, probably 737-700s. It will provide services from Libreville to France, Morocco, South Africa, Malawi, Brazzaville and Angola. RAM was selected to participate following a consultation launched by the Gabonese government.
Delta Air Lines' denials notwithstanding, an analysis of its schedule filings reveals significant cutbacks in its Northeast-to-Florida service, according to JP Morgan's Jamie Baker. Late last week, Baker upgraded his full-year outlook for JetBlue from loss to profit owing to the Delta flight reductions ( ATWOnline, Feb. 28). But on Feb. 27, Delta vigorously denied it was cutting service and said that the inadvertent omission of Comair's services at LaGuardia had created a false impression.
Air Malta reported falling revenues through the first nine months of its fiscal year that shifted its operating result MTL2.3 million ($6.4 million) into the red for the period ended Dec. 31. It reported a MTL291,000 operating profit for the corresponding period in 2004. Operating revenue decreased 3.2% to MTL81.5 million. Revenues for the third fiscal quarter dropped 4.7% to MTL19.9 million. Despite a slight 0.8% reduction in costs to MTL24.5 million, operating loss widened to MTL4.6 million from a MTL3.8 million deficit in the year-ago quarter, ATWOnline calculated.
Heico Parts Group and China Aviation Import and Export Group Corp. entered into a partnership for the promotion of Heico Aerospace aircraft and engine replacement parts in China.
Northwest Airlines and its pilots continued to negotiate on a concessionary agreement yesterday even as a ruling by the bankruptcy court on the carrier's bid to impose a new contract was believed to be imminent. The parties originally had until Feb. 17 to reach an accord before Judge Allan Gropper was to have ruled on Northwest's request to cancel its labor agreements but were given an extension through March 1 ( ATWOnline, Feb. 27).
Burdened by the boardroom upheaval that cost CEO Toshiyuki Shinmachi his job this week, widening losses that reached ¥11 billion ($94.9 million) last quarter and several well-publicized safety-related incidents, Japan Airlines yesterday released an extended five-year, medium-term business plan designed to "win back the trust and confidence" of stakeholders and customers, create a more unified and open corporate culture and return the airline to profitability in the fiscal year ending March 31, 2007.
Embattled JAL Group CEO Toshiyuki Shinmachi, who stood fast against an attempted coup by four board members last month ( ATWOnline, Feb. 17), lost his battle to keep his position amid rising discontent and agreed yesterday to relinquish the CEO title and take over as group chairman. Shinmachi will be replaced as CEO following the June shareholders meeting by Senior VP-Finance and Purchasing Haruka Nishimatsu, a board member who joined the airline in 1972. Pending confirmation, Nishimatsu will be promoted to senior MD on all three JAL boards effective April 1.
