Austrian Airlines Group transported a record 10.1 million passengers in 2005, 7.6% more than in 2004. Yearly traffic in RPKs increased 7.6% to 22.8 billion, ASKs rose 5.7% to 30.8 billion and load factor improved 1.3 points to 74.1%.
Jet Airways' net profits fell 53% to INR610 million ($13.8 million) in the third fiscal quarter ended Dec. 31, a "positive result," according to Executive Director Saroj Datta, who cited "industrywide capacity addition that was far in excess of demand growth," surging fuel costs that outstripped fare increases and operating losses on Jet's new international routes. The report came on the heels of the carrier's $500 million acquisition of Air Sahara, which will create the country's largest domestic airline ( ATWOnline, Jan. 20).
China Eastern Airlines will acquire five 50-seat ERJ-145LRs from Harbin Embraer to be delivered between November 2006 and June 2007. Harbin Embraer is a joint venture between Embraer and China Aviation Industry Corp. II.
SAS Scandinavian Airlines said it was forced to cancel hundreds of domestic and European flights from Copenhagen and Norway yesterday and this morning due to a strike by its Denmark-based pilots and a sickout by pilots at its SAS Braathens subsidiary. An announcement on Copenhagen Airport's website said "most flights" were called off and that passengers holding tickets for all but the "few flights" unaffected by the work stoppage were "advised not to come to the airport."
UAL Corp., parent of United Airlines, received from the US Bankruptcy Court in Chicago the expected approval of its reorganization plan on Friday, positioning the company to emerge from more than three years of Chapter 11 protection early next month. UAL did not provide a specific exit date. Creditor distributions will commence shortly afterward, it said. The airline sought bankruptcy protection on Dec. 9, 2002, after it was turned down for a federally guaranteed loan by the Air Transportation Stabilization Board.
Qantas confirmed to ATWOnline last week that its evaluation of the 777-200LR is ongoing despite local media reports indicating it had been shelved. Qantas CFO Peter Gregg told this website that the 777-200LR is "definitely under serious evaluation," although he was coy on the finer details of the operational options under examination.
Southwest Airlines' board of directors authorized last week the repurchase of up to $300 million worth of common stock, which the carrier said represented approximately 17.9 million shares as of Jan. 18. It has about 804 million shares outstanding. Repurchased shares may be retired or used to fund the carrier's employee stock plans.
EasyJet's net profit for the fiscal year ended Sept. 30 increased 38.5% to £59 million ($103.82 million) based on International Financial Reporting Standards, according to its annual report released Friday. In November, the airline reported a year-end profit of £42.6 million according to UK GAAP standards ( ATWOnline, Nov. 23). Turnover remained static at £1.34 billion. IFRS operating profit climbed 35.9% over the GAAP number to £66.2 million. Group Finance Director Jeff Carr called the changes "relatively minor in the current fiscal year and going forward."
Lufthansa said Friday that AirTrust AG, a joint venture between LH (49%) and the Almea Foundation of Switzerland (51%), completed its acquisition of Swiss International Air Lines ( ATWOnline, June 6, 2005) in a deal reportedly worth €310 million ($374.9 million). The delisting of Swiss shares will occur Jan. 27. Shareholders keeping Swiss shares in bank safe-custody accounts automatically will be compensated CHF8.96 ($6.98) per share, the same amount offered during the public purchase offer period.
Aeroflot reported 2005 traffic of 20.75 billion RPKs, an "average 1%-2% decline" from 2004 "mainly due to reducing passenger load as prices rose as a result of rocketing fuel prices." Passenger load factor was 69.1%. Cargo volume grew 1.4% to 2.74 billion RTKs. Separately, Aeroflot transferred its Paris CDG flights from Terminal 2B to Terminal 2C on Tuesday. Departure and arrival times are unchanged.
Globespan Group, parent of Scottish LCC flyglobespan, reported an FY05 pre-tax profit of £6.2 million ($10.94 million), a 67.6% improvement over 2004 earnings of £3.7 million, according to media reports. The company's fiscal year ended Oct. 31, 2005. Turnover increased from £98 million to £163 million. Flyglobespan contributed half of the group's profits, up from £2 million in 2004, and flew nearly 1.5 million passengers, an increase of approximately 50%.
Lufthansa Group released an initial earnings projection yesterday indicating it expects to report a €550 million ($665.81 million) operating profit for 2005, well above its November projection of profits "significantly" higher than €400 million ( ATWOnline, Nov. 11) and a 43.6% rise over a 2004 operating result of €383 million. The company said the discrepancy between its 2005 projection and the result "is due to the good performance of the Passenger Business segment at the end of last year."
China Eastern Airlines said its 2005 net profit will narrow by more than 50% from its CNY514.1 million ($63.7 million) 2004 earnings, according to Shanghai Securities News cited by Reuters. China Eastern's results have fluctuated wildly--it reported a CNY471.4 million loss in the first half of 2005 but was CNY673.2 million in the black by the close of the third quarter. It lost CNY949.8 million in 2003.
Focus Aviation announced it completed the sale of two A300-600Rs on behalf of China Airlines to Avion Aircraft Trading, which will lease the aircraft to an unnamed Middle Eastern carrier. One will be converted into a freighter in October.
Star Flyer of Japan plans to launch operations with three 144-seat A320s by March, operating up to 12 daily flights from the new Kitakyushu Airport to Tokyo Haneda. "We will offer higher prices than Skymark but our fares will be around 20% lower than JAL or ANA," Senior Executive Director Yasushi Muto told this website. Launch capital for the new company is around $38 million. An IPO could be planned for 2008.
United Services Flight Training, a division of United Airlines, became the first foreign provider to receive CAAC certification to train Chinese airline pilots. It said it expects to train pilots from two carriers on 757s and A320s at its Denver Flight Training Center.
United Airlines' reorganization plan could be approved by the bankruptcy court today, putting the carrier on course to meet its timetable to complete Chapter 11 restructuring in early February.
Jet Airways yesterday announced it is buying much smaller Air Sahara for $500 million, a step that will give it more than half of India's domestic market based on 2005 boardings, according to press reports. The two carriers had been in talks for some time ( ATWOnline, Jan. 12). Both began flying in 1993 during the first phase of India's airline liberalization. Jet completed an initial public offering of 20% in early 2005, leaving Chairman Naresh Goyal holding 80%.
Viva Air, a proposed low-fare startup based in Macao, expects to announce a fleet decision within the next 10 days. The carrier is looking for up to 12 widebodies to support an international long-haul route network with service commencing in the June/July timeframe. "We are looking to Berlin, Lisbon or Milan with around three to four weekly flights," CEO Andrew Pyne told ATWOnline at the third Low Cost Airline Symposium in Singapore. The carrier has traffic rights out of Macau on 15 routes.
CSA Czech Airlines named former power company executive Radomir Lasak as its new president. He replaces Jaroslav Tvrdik, who resigned earlier this month to enter politics ( ATWOnline, Jan. 5).
Despite $700 million in cost reductions achieved last year, AMR Corp. could not overcome the impact of record nominal fuel prices that cost it an additional $1.7 billion over what it spent in 2004, plus a handful of special items. The parent of American Airlines reported a net loss of $604 million in the fourth quarter and $861 million for the full year, compared to losses of $387 million and $761 million in the fourth quarter and full year of 2004 respectively.
On the heels of a chaotic year featuring surging fuel costs, perilous weather, the bankruptcy of two legacy carriers and the failure of a low-cost competitor, Southwest Airlines once again demonstrated a "record unmatched in this bruising commercial airline business," reporting net earnings of $548 million for 2005, a remarkable 75.1% increase over a 2004 profit of $313 million as its extensive hedges cushioned the impact of high fuel prices.
Boeing identified the suppliers that will provide propulsion systems for the 747-8, which is scheduled to enter service in September 2009 with Cargolux. In addition to the GEnx-2B67 powerplant, GE's Middle River Aircraft Systems unit will contribute the all-composite thrust-reverser system and Spirit AeroSystems, Boeing's former Wichita unit, will supply the engine struts and nacelles. The internal supplier team includes Boeing Winnipeg (aft pylon fairing), Boeing Portland (engine mounts) and Boeing Propulsion Systems (engine and strut build-up).
Thai low-fare airline Nok Air is eyeing an IPO by mid-2007 to help fund fleet renewal and expansion. "Currently we are looking at 737NGs and the A320 family," CEO Patee Sarasin told ATWOnline in Singapore. He noted, however, that owing to the unfavorable exchange rate of the Thai baht, the carrier will stay with 737-400s for the time being. Nok will add a fourth 737-400 by Feb. 1 and plans to add three more aircraft this year, supporting the addition of three new cities in Thailand that will boost its network to eight.
