Antitrust motion filed by unsecured creditors of Delta Air Lines against certain aircraft bondholders "highlights the growing strength of lessors from the tightening of the worldwide aircraft market," according to debt and equity research firm CreditSights. Proposed lease rates for the 89 older aircraft "are above current market [rates] with return conditions significantly improved," CreditSights stated. The aircraft are a mix of MD-88s, 757s and 767s between 13 and 22 years old backed by Equipment Trust Certificates.
Taiwan's China Airlines acquired a 25% stake in China's Yangtze River Express Airlines. CAL Chairman Philip Wei attended a share transfer ceremony yesterday in Beijing finalizing the company's acquisition of shares in Yangtze River. The deal was valued at $38.7 million, according to media reports. Total share transfer among four investors was for 49%. Other partners include Yang Ming Marine Transport Corp., which holds a 12% stake; Wan Hai Lines with 6%, and China Container Express Lines with 6%.
American Airlines and United Airlines are objecting to BAA's handling of the ongoing fuel shortage situation at London Heathrow caused by the Buncefield oil depot fire last month ( ATWOnline, Dec. 15). The carriers state that BAA's rationing policy is "blatantly discriminatory" because "so-called 'base' carriers at Heathrow, including British Airways and Virgin Atlantic," are provided with 82% of their fuel requirements for long-haul services, while "so-called 'visiting' carriers," including American and United, receive only 70% of their requirements.
Italy's Air One, which operates an all-737 fleet to 23 domestic destinations, repositioned itself as a European player yesterday by signing a contract with Airbus for 30 A320s and 60 options. The deal reportedly is worth $1.8 billion at list prices. The CFM56-5B6/P-powered aircraft will be configured in a two-class layout seating 159 and gradually will replace the carrier's leased fleet of 21 737-400s, six dash 300s and three dash 200s.
United Airlines' Ted low-cost subsidiary said it will become the first carrier to use the DoubleDocker Bridge boarding system, an over-wing bridge that allows passengers to enter or exit an aircraft from front and/or rear doors. An earlier version of the bridge was used in Canada. Ted initially will install the system at Denver International Airport's Concourse B and expects to have five bridges in place by year end. Dewbridge Airport Systems of New York designed the bridge mainly for use on narrowbody aircraft. Ted operates A320s.
Finnair Group named Executive VP-Scheduled Passenger Traffic Henrik Arle to the position of deputy CEO. Arle has been with Finnair since 1976 and is a member of the group management board. Also, Kaisa Vikkula was appointed senior VP-leisure and travel services and member of the management board from March 1. Vikkula previously was MD of Mascus Oy and head of corporate communications and a member of the management board at Partek. She has been a member of the Finnair board since 2003.
Air Berlin once again is considering an IPO and will make its decision in the spring, according to a company spokesperson cited by Reuters. Handelsblatt reported that the carrier plans to launch an IPO designed to raise up to €700 million ($845.6 million). Separately, Air Berlin said it transported 13.5 million passengers in 2005, up 12.45% compared to 2004. Turnover grew 17.1% to €1.23 billion ($1.49 billion). During 2006 it expects to take delivery of nine A320s and a further 49 through 2011. It currently operates a fleet of 52 aircraft.
SITA was contracted by Beijing Capital International Airport to equip the new Terminal 3 with its passenger check-in platform. T3 will more than double the airport's passenger capacity from 27 million to 68 million in time for the 2008 Olympic Games. The $10.8 million contract covers installation of SITA's common-use check-in platform AirportConnect CUTE and will support up to 500 CUTE workstations at BCIA's T3A and T3B terminal buildings. In addition, SITA will install and maintain BagMessage and AirportConnect Platform Services.
UAL Corp., parent of United Airlines, reached agreement with the Official Committee of Unsecured Creditors ahead of next week's bankruptcy court hearing to affirm UAL's Plan of Reorganization. According to a statement from the company, the committee will "withdraw all objections to the POR." The creditors objected to the amount of stock set aside for 400 United managers and executives under the proposed Management Equity Incentive Plan ( ATWOnline, Jan.
LAN Airlines said December traffic rose 12.6% over the year-ago month against a capacity increase of 8.5%, sending load factor up 2.7 points to 72.8%. Domestic traffic dropped 5.3% alongside a 2.8% decline in capacity and load factor fell 1.7 points to 66.6%. LAN was stronger internationally as traffic rose 16.4%, capacity increased 11% and load factor climbed 3.4 points to 73.9%. Separately, LAN finalized a 10-year component support agreement with Air France Industries and KLM E&M covering its 24 767-300ERs. It is planning to add 10 more 767-300ERs through 2008.
ATA Holdings and ATA Airlines announced an immediate restructuring of senior management designed "to drive accountability down" to its core scheduled service and military/charter operations in advance of its planned emergence from bankruptcy this quarter. Heading the changes was the elevation of Senior VP and CCO Subodh Karnik to executive VP and COO. Reporting to Karnik will be newly promoted GM-Military/Charter and Senior VP-Operations John Graber, Senior VP-CFO Doug Yakola and a yet-to-be-named senior VP-scheduled service.
Monarch Airlines said it posted a "record-breaking" 2005, flying more than 2.6 million passengers compared with 1.9 million in 2004. The low-cost/charter carrier opened a new base in Birmingham last year and introduced a host of new routes--London Gatwick to Lisbon and Granada, Manchester to Almeria, Birmingham to Alicante, Faro, Malaga and Tenerife, and to Malaga from Blackpool, Aberdeen and Newquay. It acquired four new aircraft--three A320s and a 767. Traffic for December was up 18.15% to 148,968 passengers.
United Airlines' cabin staff, represented by the Assn. of Flight Attendants, have filed an objection with the US Bankruptcy Court to the carrier's Management Equity Incentive Program under which 11% of the reorganized company's stock would be set aside for 400 management employees after the airline leaves bankruptcy. A hearing to confirm the reorganization plan will take place Jan. 18. AFA also objected to a provision in the plan that would permit United to reject the flight attendants' labor contract after it exits bankruptcy.
Indian Airlines said it posted a record net profit of INR656.1 million ($14.8 million) in FY05, a 48.5% increase over the previous fiscal year's profit of INR441.7 million. The carrier reported that earnings were driven by an increase in traffic, which lifted total revenue to INR53.63 billion from INR47.26 billion in FY04. Indian said "strict cost control measures" adopted during the year saved it INR765.9 million.
Pemco Aviation Group said it received its first Southwest Airlines 737 at its MRO facility in Dothan, Ala., under an agreement signed last November ( ATWOnline, Nov. 16).
Three weeks after the US Dept. of Transportation tentatively rejected their request for transatlantic antitrust immunity ( ATWOnline, Dec. 23), SkyTeam members Delta Air Lines, Northwest Airlines, KLM Royal Dutch Airlines, Air France, Alitalia and Czech Airlines withdrew their application.
Lufthansa carried 51.3 million passengers last year, up 0.7% compared to 2004. It flew 108.2 billion RPKs, up 4%. ASKs rose 2.5% to 144.2 million, resulting in a 1-point gain in load factor to 75%. Lufthansa Cargo carried 1.7 million tonnes of freight, down 1%, on a 1.3% increase in capacity owing to additional belly space on the group's passenger aircraft, causing cargo load factor to fall 2 points to 65%. Cathay Pacific reported December traffic of 6.05 billion RPKs, a 12.7% increase over the same month in 2004.
Jet Airways is close to a deal to acquire Air Sahara or to enter into a marketing alliance, according to media reports in India. Previously, Kingfisher Airlines reportedly bid to take over 100% of Air Sahara ( ATWOnline, Nov. 30). The airline earlier said that financial advisers Ernst and Young valued it at between $750 million and $1 billion.
Eurocontrol said 2005 was a record year for European aviation with more than 9.2 million flights and more than 700 million passengers. The number of flights rose by 4.5% from 2004. Growth was notable particularly in Eastern Europe, with Croatia, Slovakia and Poland seeing respective increases of 18%, 17% and 16%. Eurocontrol forecasts an average growth across Europe of 3% this year. Average delay caused by air traffic management was 1.9 min. per flight despite the higher number of flights, and early indications are that rate will be maintained this year, Eurocontrol noted.
United Airlines will keep mainline capacity flat at 140.9 billion ASMs in each of the five years 2006-10 inclusive. RPMs also are expected to be flat. The carrier sees scheduled passenger RASM climbing from 9.32 cents per ASM to 10.26 cents over the forecast period. It provided the guidance in a filing with the US Securities and Exchange Commission Monday. It also sees nonfuel operating CASM for the mainline rising from 7.47 cents in 2005 to 8.29 cents in 2010.
As expected, the European Court of Justice followed last September's opinion of the advocate general and upheld the European Commission's regulation concerning common rules on compensation and assistance to passengers in the event of denied boarding, long delay or flight cancellation.
Less than two months after he announced a 35% downsizing of British Airways' top management ( ATWOnline, Dec. 1), CEO Willie Walsh yesterday presented an overhaul of BA's poorly performing regional operations.
