Qatar Airways yesterday denied reports that it had entered into a marketing agreement with Israel's Arkia Airlines ( ATWOnline, Nov. 17). A senior QR official said, "We deny this. . .we have not been in any discussions with this company and no agreement has been signed," Reuters reported. The reported agreement, which would have been the first between Israeli and Gulf Arab carriers, would allow Arkia passengers to fly from Tel Aviv to Amman before connecting on Qatar Airways to destinations in Asia and Africa via Doha.
Sibir Airlines is working toward a goal of having an all-Western fleet by 2008. It currently operates seven 737-500s and five A310-200s as well as 30 Tu-154Ms and nine Il-86s. Next year it hopes to operate 15-20 Western-made aircraft, possibly including some 737-300s. A sixth A310 could join the fleet by year end. It intends to phase out two relatively new Tu-204s that have not lived up to efficiency expectations. Sibir, the second-largest Russian airline, holds a 14% share of the Russian aviation market, rising to 20% for domestic operations.
CasaAero, a joint venture between Alteon and Royal Air Maroc, opened its pilot training facility at Aeroport Casa Anfa Tuesday. It will house two 737 simulators.
United Airlines will close its Denver reservations office, eliminating 235 jobs, according to a Denver councilman. The airline will offer severance packages and transfer opportunities to displaced employees, Councilman Michael Hancock told the Denver Business Journal.
Virgin Blue reported a net profit of A$105.2 million ($77.2 million) for the fiscal year ended Sept. 30, down 33.1% compared to income of A$157 million in the previous year. The company also declared a A$0.25 per share dividend, or A$262 million, which will provide controlling shareholder Patrick Corp. with A$164 million in cash with which to fight a hostile takeover by Toll Holdings that is supported by Virgin Group's Richard Branson, Bloomberg reported.
Ten largest US passenger airlines in aggregate lost $3.24 billion in the third quarter ended Sept. 30, a threefold increase over a loss of $1.04 billion in the third period of 2004. However, current-period results include more than $2.5 billion in bankruptcy-related charges at Northwest, Delta and United.
AIRUnion, the alliance of Russian airlines under a single management company, wants to move toward a full merger in 2006, an official said in Moscow ( ATWOnline, Sept. 21). Members of the group are Krasair, Domodedovo Airlines, Omskavia, Samara Airlines and Sibaviatrans. Should the combination take place, the resulting carrier will surpass Sibir to become the second-largest in Russia in terms of passengers. AIRUnion currently operates about 100 aircraft and has begun taking delivery of 10 737-200s, VP-Sales and Marketing/International Affairs Urs Herzig told ATWOnline.
Alitalia's unions warned they will stage multiple strikes totaling 72 hr. beginning Nov. 29 with a 24-hr. walkout by pilots and flight attendants. The financially troubled carrier on Monday launched its rights issue in an attempt to raise about €1 billion to finance its 2005-08 restructuring plan and avoid insolvency ( ATWOnline, Nov. 14). Unions claim it is not doing enough. "It's not just today that the industrial strategy is lacking," six unions said in a joint statement published in Italian media.
BCI Aircraft Leasing of Chicago acquired three 767-300ERs subject to operating leases with Germany's TUI. Valued at $90 million, the transaction was financed by BCI and a commercial lending syndicate.
Qatar Airways and Arkia Airlines reached an agreement that allows Arkia passengers to fly from Tel Aviv to Amman and then connect on Qatar Airways via Doha to destinations in Asia and Africa, according to media reports. It is the first such accord between Israeli and Persian Gulf airlines.
ANA will move into the new South Wing of Narita Airport Terminal 1 in June 2006, along with fellow Star Alliance members Air Canada, Asiana, Austrian, Lufthansa, Scandinavian, Singapore, Thai, United and Varig.
British Airways will invest £100 million ($173.8 million) in a major overhaul of its long-haul business class, including a revamp of all aspects of passenger services on the ground and in the air. The carrier contracted B/E Aerospace to design and manufacture "next generation" lie-flat seat-beds that will begin delivery in mid-2006. BA was the first airline to introduce a lie-flat business class seat. It said it also will make a major upgrade to its inflight entertainment system in all four cabins.
MAIR Holdings, parent of Mesaba Airlines, reported a net loss of $25.5 million for its fiscal second quarter ended Sept. 30. The loss was attributed to a pre-tax charge of $36.5 million for impairments and other charges related to the bankruptcy filing of Mesaba partner Northwest Airlines. The company earned a $4.7 million profit in the year-ago quarter. Operating revenue was up less than 1% to $114.9 million, while operating expenses increased 45.4% to $155 million.
SAS Ground Services announced that Britannia Airways AB is renewing its contract for ground handling services for three years. The deal covers more than 2,000 departures annually and will include automatic check-in for Britannia customers at Stockholm, Oslo and Copenhagen. Meanwhile, SAS Ground Services Norway AS will be the first ground handler in Europe to test infrared deicing. A hangar currently is being set up at Oslo and testing is expected to begin early next year.
Thanks in no small part to a €635.1 million ($742.6 million) net capital gain earned through the sale of its 18% stake in Amadeus ( ATWOnline, April 15), Iberia Group reported yesterday a net profit of €372.5 million for the quarter ended Sept. 30, a fourfold increase over the €87.8 million profit achieved in the 2004 third quarter.
United Airlines received more than 7,500 applications to fill 2,000 flight attendant positions on the first day its recruitment website went live Nov. 13, more than seven times the expected number, according to Senior VP-Onboard Service Jane Allen. The carrier said it already has identified more than 2,600 people who meet its criteria. It is conducting screening interviews and will begin final interviews Nov. 21 in Chicago. United announced last week its intent to hire attendants for the first time since 2001 ( ATWOnline, Nov. 14).
Air Horizons, formerly Euralair, has filed for bankruptcy, La Tribune reported. The French leisure airline operated flights for several French tour operators and posted revenue of approximately €100 million ($116.9 million) in 2004. Its losses amounted to more than €10 million. It has eight aircraft in its fleet, comprising five 737s and three 757s, and employs 267 staff.
"Robust" passenger and revenue growth lifted Emirates' half-year profit to $251 million, a 7% rise over the $236 million earned in the six-month period ending Sept. 30, 2004. "Emirates has delivered an excellent half-year result despite the fact that fuel cost rose 84%," Chairman Sheikh Ahmed bin Saeed Al-Maktoum said in a statement. "This robust half-year performance reflects strong revenue growth and it also demonstrates the company's resilience and adaptability to new challenges in the operating environment."
ATA Holdings filed a motion in bankruptcy court last week seeking approval of an agreement with private equity fund MatlinPatterson Global Opportunities Partners II for debtor-in-possession financing of $30 million and an additional $70 million in equity upon ATA's emergence from Chapter 11. The carrier also is reviewing its codeshare agreements with Southwest Airlines.
ABX Air reported net earnings of $7.4 million in the quarter ended Sept. 30, an improvement of 4.1% from $7.1 million in the year-ago period. The Ohio-based cargo airline, whose biggest customer is DHL, saw revenue increase 27.6% to $369.9 million and expenses climb 28.4% to $360.5 million. Year-to-date profit was $21.2 million, up from $18.9 million last year.
Lufthansa notified EU competition authorities of its agreement to acquire controlling voting interest in Eurowings, the carrier that includes LCC Germanwings. LH holds 49% of Eurowings and Albrecht Knauf, the airline's chairman, owns 51%. Under the agreement, an additional 1% plus one share would vote with Lufthansa.
OzJet, Australia's fourth domestic carrier, has begun selling tickets ahead of its Nov. 29 launch. The startup plans to operate an all-premium product using three 737-200s configured with only 60 seats with 40-in. pitch and fares lower than its rivals' economy rate. The launch price of A$325 ($238) each way undercuts Qantas's fully flexible economy rate by 10%-15% but it is higher than that of Virgin Blue. Flights from other cities, including Brisbane, Adelaide, Canberra and Perth, will be added as OzJet builds its fleet to 10 aircraft.
News from Travel Technology Update: Two issues must be resolved before China can experience explosive growth in online travel, and neither is insurmountable, according to participants at TravelSky Technology Ltd.'s China Travel Distribution Future Forum 2005 in Beijing. The first is widespread implementation of electronic ticketing in what is expected to become the world's largest travel market. The second issue may prove more challenging: facilitating online payment for online purchases in a country in which credit cards are relatively scarce.
Finnair reported a net profit of €26.4 million ($30.86 million) for the quarter ended Sept. 30, an impressive 193.3% rise over year-ago profits of €9 million. The carrier was able to keep expenses in check--they rose just 9%--as turnover increased 13.4% from €415.6 million to €471.2 million. Operating profit doubled from €16.1 million to €32.1 million.
