Despite a record fourth quarter, LAN Airlines' consolidated full-year net income slipped 10.4% to $146.6 million from $163.6 million earned in 2004. While operating revenues surged 19.8% to $2.5 billion, driven by a 24.9% increase in passenger revenue, expenses rose 23.1% and operating income fell 17.7% to $141.6 million from $172.1 million.
Aer Lingus reported summary financial results for 2005 yesterday showing that full-year operating profit from continuing activities decreased 32.3% to €72.4 million ($86 million) from €107 million in 2004 while pre-tax profit soared to €82.6 million from just €1.1 million the year before. Details were not provided. Revenue fell 2.6% to €883 million. The Irish carrier said overall expenses grew by €10.8 million, reflecting a €33.1 million rise in fuel cost, a 39.9% reduction in distribution cost and an 11% cut in its workforce to 3,475.
Air Canada Regional affiliate Jazz officially is out of Toronto's close-in City Centre Airport following a court ruling earlier this week clearing the way for startup Porter Airlines to begin operations this fall sans competition. "We are certainly looking at it as a temporary suspension," Jazz spokesperson Debra Williams told ATWOnline.
ACE Aviation Holdings named Chahram Boulouri president & CEO, Air Canada Technical Services. Air Berlin appointed Ulf Huettmeyer CFO. Air Security International promoted Steven M. Kellner to dir.-intelligence-Intelligence Div. AirTran Airways elected Arne Haak VP-finance & treasurer and Kirk Thornburg VP-maintenance & engineering. Alaska Airlines tapped Kevin Finan as executive VP-operations, Glenn Johnson as senior VP-customer service-airports, Robert Spero as chief pilot and Yvonne Daverin as MD-maintenance planning & material control.
Cyprus Airways narrowed its annual loss by 41.1% in 2005 to CYP23.2 million ($47.7 million) from a CYP39.4 million deficit in 2004 as cost reductions outpaced a slight drop in revenues. Turnover dipped 1.9% to CYP201.2 million as it shed one aircraft from its fleet. Expenses fell 4.7% to CYP229.3 million despite a CYP9.7 million rise in fuel costs.
Alitalia reported a net loss of €167.6 million ($198.7 million) in 2005, a dramatic 80.5% improvement over the €858 million it lost in 2004. Revenues increased 11.6% to €4.8 billion and passenger numbers rose 7.8% to 23.9 million. Labor costs fell 31% to €982 million as the number of employees as of Dec. 31 dropped 45.7% from the prior year to 11,174, according to press reports. Alitalia's management, unions and the Italian government are continuing to meet this week regarding the carrier's restructuring.
Northwest Airlines' first full quarter under bankruptcy protection ended Dec. 31 with a $1.31 billion loss, triple the $434 million deficit posted in the corresponding 2004 period.
An ill-timed expansion coupled with a lack of fuel hedges put an end to Austrian Airlines Group's profit hopes for 2005 as the company reported a net loss of €129.1 million ($153 million) compared to income of €43.9 million for 2004.
Propelled by €663 million in gains from the sale of its stake in Amadeus and its agency reservations system Savia, Iberia reported that full-year 2005 net income jumped 98% to €395.8 million ($469.2 million) from €199.9 million earned in 2004. Excluding the special gains, however, bottom-line results would have declined sharply, as full-year EBIT slumped 35.7% to €116.4 million from €181.1 million while the carrier fell into the red for the fourth quarter, losing €6 million versus income of €49.8 million in the comparable 2004 period.
ICAO reappointed Taieb Cherif of Algeria as secretary general. His second three-year term will begin Aug. 1. The US had nominated William Voss for the position. Voss, formerly head of the terminal business service of FAA's Air Traffic Organization, currently serves as director of ICAO's Air Navigation Bureau.
B/E Aerospace was contracted by China Southern Airlines to convert six A300-600s from passenger aircraft to freighters. Deliveries will begin in the latter part of 2007. B/E's Flight Structures arm will develop the engineering and certification packages and manufacture required components while China Southern affiliate Guangzhou Aircraft Maintenance Engineering Co. will perform the conversions.
Malaysia Airlines warned yesterday that "on its current business assumptions, course and speed, [it] will likely fail," exhausting its cash "in April 2006" and posting a MYR1.7 billion ($472 million) loss for the year. "A real business turnaround is an imperative for MAS. The management team and our staff believe strongly in our ability to transform the business and, indeed, to go beyond expectations," MD Idris Jala said as he revealed the company's Business Turnaround Plan aimed at returning the airline to profit by 2007, with net earnings of MYR500 million in FY08.
JetBlue, which earlier forecast a full-year loss for 2006, instead should see a return to profit, according to JP Morgan analyst Jamie Baker, who cited the positive impact of dramatic cutbacks by primary competitor Delta Air Lines in key north-south East Coast markets that should boost JetBlue system revenue by 5%.
Swissport finalized an agreement with Ukraine International Airlines to operate jointly the Interavia ground handling company. Swissport will hold 51% of Interavia, which was launched last year by UIA and Airline Business Handling and is the leading ground handler at UIA's Kiev hub. Swissport already works with the airline at other airports.
United Airlines and TACA reached a codeshare agreement giving UA passengers access to TACA's entire network and TACA customers the opportunity to connect to destinations through "several" UA hubs including Washington Dulles, Los Angeles and San Francisco. Regulatory approvals are expected by the second quarter.
South African CAA appointed Zakes Myeza as its new CEO effective March 16. The body has been without a permanent CEO for the past three years. Myeza currently serves as executive director-finance and support services at the Johannesburg Development Authority. Nordam Group named Brian Beair director-aircraft asset management. Beair, reporting to Meredith Siegfried, VP-global sales and marketing, will oversee the procurement, placement and sale of rotables to support Nordam's worldwide repair divisions.
Bawag Leasing of Austria sold an ex-Augsburg Airways Dash 8-314Q to Austrian LCC InterSky. Meridian Jet Prop was the seller's exclusive worldwide agent.
Star Navigation Systems Group signed an MOU with TAP Maintenance and Engineering under which, subject to a final agreement, TAP will market Star's In-Flight Safety Monitoring System to the airline's existing client base and provide installation. ISMS collects aircraft data inflight, analyses it for anomalies and transmits it to Star's ground station. An alert is sent to the airline if a problem is anticipated or an incident has occurred, according to Star. Separately, Star signed an MOU with Kharkov State Aircraft Manufacturing Co.
Egyptian government announced its intention to sell 20% of EgyptAir to the public after an ongoing commercial study is finalized. According to the Arab Air Carrier Organization, the government will maintain 80% control of the airline. Also, the government announced that EgyptAir's fleet will increase from 32 to 52 aircraft next year. It has ordered 12 737-800s with deliveries starting this year.
Northwest Airlines and the unions representing its pilots and flight attendants were granted a second extension, this time through March 1, by a US Bankruptcy Court judge Friday afternoon. The parties originally had until Feb. 17 to reach an accord before the court ruled on Northwest's request to cancel its labor agreements but were given an extension through yesterday ( ATWOnline, Feb. 17). Negotiations continued last week, prompting Judge Allan Gropper to give the parties still more time.
Singapore Technologies Aerospace and Airbus announced a three-year renewable agreement Friday enabling the airframer to place any aircraft for MRO work at any of STA's maintenance and modification sites around the world. Separately, STA announced a five-year, $5.9 million agreement with Pacific Airlines of Vietnam for complete component support and technical services for up to three 737s.
Jagson Airlines of India revealed details of the fleet upgrade first unveiled in January ( ATWOnline, Jan. 6). CEO Uttam Kumar Bose told reporters in India that the carrier has agreed to purchase up to 20 A321s in a deal worth $1.3 billion. The contract covers 14 firm orders and six options and will be finalized once delivery dates can be negotiated. Jagson is making the transition from a regional turboprop operator to a national carrier.
