Sterling, Europe's fourth-largest LCC, transported 2.7 million passengers in 2005 at a load factor of 77.3%. The carrier's September merger with Maersk Air renders year-over-year comparisons less meaningful. "Sterling's goal for 2006 is to consolidate the route network to strengthen its position. Sterling is also expected to show a profit in 2006 and that will be achieved by the turnaround we are undergoing now in connection with our corporate integration," Communications Manager Niels Brix said.
Northern Air Cargo of Alaska has been sold to Saltchuk Resources, a private US holding company. The purchase includes NAC's subsidiaries and its Fairbanks airport facility, among other items.
Northwest Airlines and its unions sparred in court for an eighth day Friday over the bankrupt carrier's request for permission to terminate labor contracts covering its pilot and flight attendant workforces and impose new terms and conditions. A spokesperson for the Professional Flight Attendants Assn. told the Associated Press that the union offered to reduce its pay by 22.5% and accept the elimination of 1,553 jobs through voluntary severance agreements. NWA wants to hire 800 non-US flight attendants, replacing 30% of cabin staff, to be domiciled in Asia.
Helvetic Airways, a Swiss low-fare airline, named former pilot Bruno Dobler CEO. He succeeds Peter Pfister, who will remain with the company as a member of the board of directors. Helvetic commenced operations in 2003 and operates four F100s.
Continental Airlines flew 6.63 billion RPMs in January, a rise of 13% over the year-ago month. Consolidated capacity climbed 12.2% to 8.72 billion ASMs. Load factor rose just 0.5 point to 75.9% as a 16.1% increase in international capacity, including a 21.4% hike in transatlantic capacity, dropped international load factor 2.2 points to 74.2%. Domestic load factor improved 2.2 points to 78.3%. Cargo traffic fell 1.4% to 80.3 million RTMs. CO's estimated January RASM rose 4.5%-5.5% over the year-ago month.
Qantas opened a new MRO facility at Los Angeles International Airport. The Australian carrier is the largest international operator at LAX. Qantas, which expects to begin the first A380 flights to the US in 2007, will use the facility as a base for full-service maintenance and engineering, including A checks on 747s. It will employ in excess of 80 service technicians.
Engine Lease Finance Corp. and Frankfurt-based DVD Bank agreed to co-invest in a package of 13 commercial aircraft engines acquired from the ELF portfolio through a new venture, Deucalion Engine Leasing (Ireland) Ltd. The portfolio, valued at $50 million, comprises three CF6-80s, three CFM56s, three V2500s, one AE3007, two JT8D-20s and one PW4000. Engines are leased out to 10 different airlines with lease termination dates ranging from 2006 to 2013.
Lufthansa Systems announced that Italian charter airline Eurofly opted for Lido RouteManual electronically generated navigation charts. In addition, it will rely on the Lido Operations Center for route planning and the FMS Flight Management Navigation Database Service LHS.
ANA and Interjet, a Mexican startup, each concluded CFM56-5B deals yesterday. ANA selected the engine to power five A320-200s in an order valued at $60 million. The aircraft, three of which were ordered last year and two of which will be leased ( ATWOnline, Jan. 30) are scheduled for delivery beginning in 2007. ANA already operates 28 CFM-powered A320-200s. Interjet's engine deal for its order of 10 A320s ( ATWOnline, Nov. 8, 2005) is valued at $120 million at list prices. The carrier also holds 10 A320 options.
Air New Zealand is poised to launch an aggressive growth phase as it nears completion of the makeover of its international product. According to CEO Rob Fyfe, the airline's eight 747-400s will be re-configured by June when ANZ will ramp up promotion of its new interior, which will offer 34-in. seat pitch in economy and 39-in. pitch in Premium Economy, along with the industry's longest (6 ft., 7.5 in.) flat bed in Business Premier. A major plank of the growth strategy is the 777-200ER. ANZ has three in service with a further five to be delivered this year.
Record revenues were not sufficient for Singapore Airlines Group to stave off soaring fuel costs during the fiscal third quarter ended Dec. 31 as the company reported a S$396.6 million ($244 million) net profit that represented a 14.6% decline from net earnings of S$464.6 million in the year-ago period. The latter total was boosted by the sale of SIA's remaining stake in Star Alliance partner Air New Zealand. Numbers from the 2004-05 fiscal year were recalculated according to new national accounting standards.
AerCap established a 50/50 joint venture with LoadAir, a Kuwait-based aviation entity, to acquire, manage and market 70 A320 family aircraft to which AerCap committed at the Dubai Air Show ( ATWOnline, Nov. 24, 2005). The new company, AerVenture, will be based in Ireland. It firmed the AerCap LOI with Airbus in December. AerCap (formerly debis AirFinance) will provide complete asset management services for the portfolio. LoadAir is the trading name for International Cargo Airlines Co., which was floated on the Kuwait stock exchange in 2005.
AeroMexico placed an order for three 737-700s and three 737-800s, Boeing announced yesterday. The aircraft are worth approximately $372 million at list prices and will begin delivery in 2007. "Since they were introduced to our fleet in 2003, the Boeing 737-700 has proved to be an exceptional airplane and with the acquisition of the 737-800 in 2006, we will continue our fleet renovation program with great success," said AeroMexico CFO Francisco Cuevas. The carrier is scheduled to take delivery of eight 737NGs and two 777-200ERs this year.
Indian startup IndiGo named former North American Airlines COO Steven Harfst as its COO. New Heights Aviation Services President Jeff Wehrenberg will succeed Harfst at NAA. Amadeus appointed former Director-Airline Sales Chris Barnes VP of e-commerce sales.
United Airlines formally, and finally, exited bankruptcy yesterday after 1,150 days during which it cut annual costs by approximately $7 billion including more than $3 billion in concessions from labor unions, reduced and reconfigured its fleet to fly more profitable international routes and launched its low-cost subsidiary Ted.
Frontier Airlines will become a subsidiary of Frontier Airlines Holdings, a new Delaware corporation, according to a reorganization plan approved Tuesday by the carrier's board. There will no anticipated effect on shareholders, who must approve the plan at a meeting tentatively scheduled for March 27.
JetBlue Airways' inability to control costs and misplaced capacity increases cost it dearly in the final quarter of 2005 as it suffered a net loss of $42.4 million--by far its worst quarterly performance since it started service in February 2000. JetBlue earned $1.5 million in the year-ago quarter. The surprising 2005 result plunged the carrier into the red for the fiscal year ended Dec. 31. It posted a $20.3 million annual loss compared to a $46.2 million profit in 2004. In addition, it is forecasting a loss in both the current quarter and for full-year 2006.
Bombardier signed a contract with Regco Holdings of Toronto for 10 Q400 70-seat turboprops, with options for an additional 10. The deal is valued at an estimated $250 million for the firm orders and brings the number of Q400 orders to 175.
Smiths Aerospace and Aviall Services announced an agreement under which Aviall will become a global distributor of Smiths Aerospace systems spare parts after a transition phase of several months. "Aviall will use its core competencies of inventory forecasting and management, product fulfillment, quality management and sales and marketing to ensure Smiths' commercial aftermarket customers' requirements are met," the companies said in a statement. The 10-year agreement is expected to be valued at up to $2 billion in sales.
Aeroxchange named Jim Taylor CFO. All Nippon Airways appointed Damion Martin to head all non-Japanese PR. Assn. of European Airlines selected Wolfgang Mayrhuber, CEO and chairman of the executive board of Lufthansa, as chairman for 2006. ATA Airlines Holdings announced that Subodh Karnick becomes COO, Senior VP John Graber adds GM-military & charter operations to his responsibilities and Doug Yakola becomes CFO. Aviapartner tapped Rob Kuijpers as nonexecutive chairman and Andrew Burnett as business development mgr.
Austrian Airlines Group will end all long-haul charter flying by its Lauda Air leisure subsidiary at the end of the current winter season, with its six 767-300ERs and 777-200ERs repainted in Austrian Airlines' livery. Some charter flights, such as those to Mauritius, will be terminated, while others will become scheduled services, CCO Josef Burger told ATWOnline.
Air One won its appeal to block Alitalia's takeover of Volare Airlines, La Stampa reported. A Roman civil court argued it would be improper for Alitalia to spend part of a €400 million ($483.7 million) state-guaranteed bridge loan to buy the bankrupt LCC rather than to address its own financial difficulties. Alitalia bid €38 million for Volare ( ATWOnline, Jan. 10). Air One said it was satisfied with the ruling, whereas Alitalia described the court's decision as "abnormal," claiming it did not respond directly to Air One's appeal.
LAN Cargo named Cristian Ureta CEO. He most recently was the carrier's COO. UAL Corp. named Cindy Szadokierski VP-Chicago O'Hare operations. Ajay Singh will replace her as VP-corporate real estate.
Triumph Composite Systems of Spokane was awarded a $200 million multiyear supply contract by Vought Aircraft Industries, a structural integration partner in the 787 program. Triumph will provide products including composite ducting, machined metal parts and fittings, window assemblies, hydraulic tubing and insulation to Vought.
