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.
United Airlines reached an agreement with the Assn. of Flight Attendants on the terms of a new defined contribution pension plan that includes a 3% company match and a 2% direct contribution effective Jan. 1, escalating to a 2.5% direct contribution effective Jan. 1, 2007, and a 3% direct contribution effective the following year, for a total of a 6%, double the amount of the company's original proposal. The agreement also includes $20 million in convertible notes and immediate vesting for all flight attendants currently employed by United.
Efforts by Richard Branson's Virgin Group to regain control of Virgin Blue may have suffered a fatal setback when Australia's Competition and Consumer Commission said it was opposed to Toll Holdings' proposed takeover of Patrick Corp., which holds 62.4% of the Australian low-fare airline. Toll launched a A$4.6 billion ($3.5 billion) hostile takeover of Patrick last August. Assuming the takeover had been successful, Toll would have sold enough Virgin Blue shares to raise Virgin Group's holding from 25% to 40.6%, making it the largest shareholder in the carrier ( ATWOnline, Aug.
Norwegian Air Shuttle signed a purchase agreement with Bavaria International Aircraft Leasing for a 737-300. It will be the carrier's first fully owned aircraft.
AirAsia will make its fares available in the Galileo GDS through Galileo Flight Integrator, a Web-based service. The agreement also covers Thai AirAsia and Indonesia AirAsia. It marks the first time the Kuala Lumpur-based LCC has participated in a GDS.
Group of airline and airport trade groups called for establishment of a formal Industry Consultation Body in Europe to advise the European Commission and EU member states on security measures and "to facilitate dialogue in the development of new security measures." The associations behind the statement are Airports Council International Europe, Assn. of European Airlines, European Cockpit Assn., European Regions Airline Assn., International Air Carriers Assn. and IATA.
Connexion by Boeing signed a three-year deal with Korean Air making it the first authorized modification center for retrofit installation of the Connexion product. Korean intends to retrofit third-party aircraft. By mid-2007, all of its own mid/long-range aircraft will be equipped with Connexion. Separately, Japan Airlines will offer Connexion's four channels of live television ( ATWOnline, Jan. 12) to passengers equipped with compatible personal computers beginning Jan. 23. Programming will be available on aircraft equipped with JAL Inflight Internet Service.
Northwest Airlines yesterday asked the bankruptcy court overseeing its Chapter 11 reorganization to permit it to reject the collective bargaining agreements covering its pilot and flight attendant workforces and allow it to make changes to retiree medical benefits.
Israir Airlines received permission yesterday from the Israeli government to compete with El Al on the Tel Aviv-New York JFK route, according to media reports. El Al reportedly intends to seek a legal remedy, claiming the government promised it exclusivity. Israir currently operates charter services to JFK.
United Airlines and South African Airways, a future Star Alliance member, announced a codeshare and booking agreement covering SAA flights from Washington Dulles to Johannesburg. UA customers also will be able to connect from Johannesburg to other South African markets or onto SAA flights from London, Frankfurt and Paris to South Africa. SAA customers will be able to connect and book United flights from Washington Dulles to Chicago, Las Vegas, Los Angeles, San Diego, San Francisco and Seattle.
Qantas said Monday it signed a nonbinding MOU with SR Technics to establish a joint venture providing component management services for the A380. The new company will compete with Spairliners, formed last summer by Lufthansa Technik and Air France Industries ( ATWOnline, June 13). Qantas said it is filling a similar need in the Asia/Pacific region.
