IATA reported a 9.9% rise in international RPKs in April compared to the year-ago month. Capacity increased 5.5% and load factor was 76.5%. Strongest traffic growth was in the Middle East, which showed a 22.1% rise in RPKs against a 16.2% climb in ASKs.
The international terminal at Istanbul Ataturk International Airport is a pleasant surprise: Luxurious without being overwhelming or tacky, with modern architecture, glass curtain walls, stainless steel and ceramic panel finishes, granite flooring, plenty of space and very, very cleaneven the toilets.
One thing that can be said about Mesa Air Group Chairman and CEO Jonathan Ornstein is that he loves a challenge. Whether on the basketball court or in the boardroom, his natural instinct is to play hard and play to win. His acumen as a corporate leader is demonstrated by the Phoenix-based carrier's track record of growth and profitability during a period of financial hardship for most of the commercial aviation industryincluding some of Mesa's Regional counterparts.
JetBlue Airways is "looking seriously" at GDS participation, according to David Neeleman, chairman and chief executive officer. At the Merrill Lynch Global Transportation Conference, Neeleman said the airline was missing out on business by not being in corporate travel departments' booking systems.
If US passenger airlines succeed in posting a cumulative operating profit for 2006after five years of negative EBITtwo dates will loom large in the story of their turnaround: Sept. 14, 2005, when Delta Air Lines and Northwest Airlines entered Chapter 11 and began dropping capacity like a cat sheds fur, and Jan. 5, 2006, when Independence Air closed down, bringing some semblance of sanity to East Coast pricing. Give some credit as well to a couple of furies named Katrina and Rita for driving oil prices so high that even the most logic-challenged carrier had to raise its fares.
Sweden's FlyMe yesterday reported a SEK63.2 million ($8.8 million) loss in the first quarter ended March 31, a period it called "one of the most demanding and exciting" in its two-year history. The loss was nearly three times heavier than the SEK23.9 million reported in the year-ago quarter and reflected the LCC's significant commitment to growing its business. Toward the end of the quarter it launched new services to 11 European cities, overhauled its aircraft and increased daily utilization from an average of 4 hr. to 11 hr.
A milestone quarter that featured the Malaysian government's decision to shift the bulk of domestic operations to AirAsia starting Aug. 1 and the opening of the low-cost terminal at Kuala Lumpur International Airport did not end with very good news on the LCC's bottom line, which showed a profit of MYR22.8 million ($6.3 million) for the fiscal third quarter ended March 31, narrowed from earnings of MYR40.7 million in the year-ago quarter.
ALAFCO Aviation Lease and Finance of Kuwait said it purchased five new 737-800s valued at $250 million that it plans to lease to Turkish Airlines for 12 years.
Boeing began final assembly yesterday on the first 737-900ER, which will undergo a five-month flight test program later this year and eventually be delivered to Indonesia's Lion Air.
Delta Air Lines pilots yesterday ratified a new labor agreement that includes $280 million in annual concessions the airline says are "crucial" to its effort to emerge from Chapter 11 bankruptcy protection.
Competition regulators gave preliminary clearance to Qantas to establish an interlinked low-cost airline network in Asia through its Jetstar brand despite opposition from rival LCC Tiger Airways.
Kenya Airways posted a net profit of KES4.83 billion ($66.5 million) for the fiscal year ended March 31, a 24.4% increase over the KES3.88 billion earned in FY05. Revenues rose 25.1% to KES52.8 billion as the airline carried 2.4 million passengers during the year, an increase of 17%. It plans to take delivery of three new 737-800s this year and a fourth 777 in early 2007.
Aeroflot stockholders overwhelmingly approved the previously announced purchase of 30 new regional jets from Sukhoi Civil Aircraft. Sukhoi's 75/95-seat aircraft program has lined up an impressive list of partners including Honeywell, Parker, Thales and Goodrich, with Boeing serving in an advisory role. The company also is negotiating with Boeing for customer support, warehousing of spare parts and a joint-venture training facility based in Moscow. "Up until now it's been in the role of consultant," said Sukhoi representative Svetlana Issaeva at last week's Regional Airline Assn.
Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, received approval from Nasdaq for its common stock to begin trading on the exchange today under the symbol AAWW. President and CEO Jeffrey Erickson said trading on Nasdaq was "one of our most important post-reorganization business goals" after emerging from bankruptcy protection in July 2004.
WestJet and Air Canada settled their contentious dispute over alleged corporate spying and unauthorized data collection by WestJet executives, with the Calgary-based LCC agreeing to pay C$15.5 million ($14 million)--C$5.5 million covering AC's legal costs in the matter and C$10 million to charity--and Chairman and CEO Clive Beddoe apologizing to his primary rival for "misconduct."
Transavia.com, celebrating its 40th birthday this year, achieved its 28th consecutive annual profit with a net result of €11.1 million ($14.1 million) for the financial year ended March 31. This compares to a net profit of €13.6 million in FY05, the 18.4% decline owing to a switch to EU-IFRS accounting standards. Revenues rose 15% to €597.1 million and operating costs increased 16% to €573.5 million. Cost per seat grew 6%, driven largely by fuel. Operating profit at the low-cost and charter subsidiary of Air France-KLM was €18.1 million.
Ferrovial Group upped its BAA takeover bid but the UK airports operator said yesterday that the Spanish firm still is undervaluing the company and advised shareholders to reject the increased offer. Ferrovial modified its bid to £9.73 billion ($18.09 billion), or 900 pence per share, which still "falls well short" of the "more than 940 pence per share" value of the company, BAA said. The initial bid of £8.75 billion was dismissed by BAA Chairman Marcus Agius last week as "cheap" ( ATWOnline, May 29).
Aer Lingus and oneworld confirmed yesterday that Ireland's flag carrier is leaving the alliance. The decision was approved at the airline's board meeting last week, concluding a process that began when former Aer Lingus boss Willie Walsh toyed with leaving the partnership as he began the transformation of the state-owned carrier from a network operator into a point-to-point LCC.
Gol secured a R$75.7 million ($33.6 million) loan from the Brazilian National Economic and Social Development Bank Monday and plans to use the money to finance the building of an aircraft maintenance facility at Confins International Airport in Minas Gerais.
Delta Air Lines pilots union said last week it will "vigorously oppose" US Pension Benefit Guaranty Corp.'s effort to overturn the concessions agreement it reached with management of the bankrupt airline. PBGC, the federal pension insurer that would assume much of the pension obligation abandoned by Delta, said last week in a bankruptcy court filing that the agreement between Delta and the Air Line Pilots Assn.
Frontier Airlines Holdings posted a $14 million net loss for its fiscal year ended March 31, a disappointing result but much improved over a net loss of $23.4 million in the previous fiscal year. "Although we made progress in all facets of our business, it was not enough to offset the many challenges that face the industry and our company," President and CEO Jeff Potter said.
SkyEurope Holding, parent of the Bratislava-based low-fare airline, reported that its net loss for the fiscal second quarter ended March 31 more than tripled to €21.7 million ($27.7 million) from €6.8 million in the year-ago period, bringing the fiscal first-half deficit to €33.8 million compared to a loss €18.9 million in the year-ago period.
Civil Aviation Authority of Singapore awarded a tender to a joint venture company to develop and manage "a luxury facility" for VIP travelers arriving or departing Changi on commercial or private aircraft. It is set to open in August. Members of the JV company are Worldwide Flight Services, Superior Travelers Services and Sembawang Kimtrans.
