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.
Royal Brunei Airlines signed an MOU with Garuda Indonesia covering "commercially viable cooperation" including training, MRO, information and distribution technology, ground handling and catering. Separately, Royal Brunei will launch thrice-weekly service to Ho Chi Minh City from May 11.
Northwest Airlines and its flight attendants, represented by the Professional Flight Attendants Assn., reached an eleventh-hour agreement on a new collective bargaining agreement yesterday that, if ratified by union members, will result in the carrier achieving the $195 million in labor savings it sought from cabin staff when it entered bankruptcy.
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.
