Arab Air Carrier Organization said its 23 member airlines transported 9.1 million passengers in the first quarter of 2005, up 6.7% compared to the year-ago period. Based on data from most of the carriers, RPKs for the group rose 8.7% to 1.9 billion while ASKs grew 7.1% to 2.78 billion. Load factor improved slightly to 68.6% from 68.4%.
American Airlines Cargo will raise its fuel surcharge from $0.45/kg. to $0.50/kg. for most US-origin international shipments and from $0.18/lb. to $0.20/lb. for domestic shipments, effective Sept. 5. It hiked the surcharge associated with its Priority Parcel Service product from $1 to $3 per shipment.
Iberia Cargo is using a new refrigeration chamber facility at Madrid Barajas to store flowers before their transshipment to other Spanish cities and Central European destinations. Iberia said it transports "about 13.5% of all the flowers carried between Latin America and Europe."
Switzerland-based elite travel specialist PrivatAir added another airline customer for its services tailored to long, thin business markets. Beginning Oct. 30, the company will operate a Boeing Business Jet on behalf of KLM between Amsterdam Schiphol and Houston George Bush Intercontinental Airport six times per week. The BBJ, which is based on the 737-700, will be equipped with 44 lie-flat business class seats in a 2-2 configuration.
Republic Airlines, a subsidiary of Republic Airways Holdings, received a Part 121 Airworthiness Certificate from FAA that will allow it to begin scheduled passenger operations of Embraer 170s for US Airways Express in September. Republic Airlines expects to operate up to 28 of the aircraft on behalf of that carrier, which is merging with America West. "Obviously we are pleased that we have completed the process," spokesperson Warren Wilkinson told ATWOnline.
AirAsia reported a profit attributable to shareholders of MYR111.6 million ($29.6 million) for the fiscal year ended June 30, more than double the previous year's income of MYR49 million but 30% below the profit of MYR160 million in its float forecast. The lower results were attributed to a number of factors, among them a shortage of aircraft, higher fuel prices, "irrational competition" and the impact on air travel demand of the December tsunami disaster.
Japan Airlines and Mexicana Airlines reached a codeshare agreement based on connections in Los Angeles that will expand JAL's network in Mexico to four cities and provide Mexicana with access to Tokyo and Osaka. Subject to government approval, the accord will come into effect Oct. 30. Implementation of a frequent-flier program partnership also is being discussed and will be put into effect once its scope and terms are finalized.
Air New Zealand earned NZ$180 million ($125.6 million) in its fiscal year ended June 30, up 8% over income of NZ$166.2 million in FY04, and Chairman John Palmer flagged that the airline is carrying on "a comprehensive review" of its engineering business, some parts of which are "financially underperforming." Profit before unusuals and tax was NZ$235 million, down 3% from NZ$243 million last year. Group operating revenue rose 3% to NZ$3.62 billion. EBIT declined 9.8% to NZ$212 million from NZ$235 million.
China Southern Airlines Group reported a hefty first-half net loss under IFRS of RMB907 million ($112 million), reversing income of RMB266 million in the January-June 2004 period. Turnover for the group totaled RMB17.84 billion, up 60% compared to the previous period. Passenger revenue of RMB16 billion represented 91.5% of the total. Domestic passenger revenue was RMB13 billion, up 64%, while revenue on services to Hong Kong rose 12% to RMB599 million and international route revenues climbed 77.5% to RMB2.4 billion.
Northwest Airlines has largely recovered to pre-strike levels of reliability, the carrier claimed on Friday. In the first public disclosure of operating metrics since the carrier's mechanics and aircraft cleaners went on strike at 12:01 a.m. Aug. 20, Executive VP-Operations Andy Roberts said system completion factor was running at 98.2% as of mid-afternoon Friday.
CAE received an order for a 737-800 full flight simulator from Zhuhai Flight Training Center, its joint venture with China Southern Airlines. At list prices, the contract's value is C$16 million. The order brings the number of CAE-built simulators that the facility operates to 10, making it the largest independent training facility in China, according to CAE.
Shenzhen Airlines chose CFM56-5Bs to power three A320s and two A319s on order. CFMI valued the engine deal at $60 million at list prices. GE will provide total maintenance support for the engines under a 15-year OnPoint Solution services agreement potentially worth up to $240 million.
Cash-strapped Delta Air Lines reached a revised agreement with its existing Visa/MasterCard processor to extend the terms of its contract to Oct. 31 and reduce the amount of cash "holdback" required by the processor. The contract had been set to expire Aug. 31. In a filing with the US Securities and Exchange Commission late last week, Delta said that under the amended agreement, it estimates that the holdback will reach $625 million by the new expiration date, down from $750 million it previously expected to have tied up as collateral by the end of October ( ATWOnline, Aug.
Infratil agreed to purchase the assets and business of Kent International Airport for £17 million from the administrators of Planestation Plc. Completion of the purchase was expected Friday. Planestation, which also owns Irish low-cost carrier EUjet, went into voluntary administration earlier this month. EUjet ceased all operations on July 26 with the loss of 200 jobs after bankers to Planestation decided not to support the company with additional funding. The Irish Commission for Aviation Regulation officially revoked the airline's air carrier license Aug. 9.
Scandinavian Airlines reached agreement with Amadeus on a new distribution contract that will ensure its product is available to Scandinavian travel agents while also addressing its concerns over the high cost of using the GDS channel. The airline did not provide terms of the deal but said it is "a step in the right direction," adding that it is in negotiations with all its GDS providers "to obtain lower distribution costs." It intends to "alter its current full content strategy" as of Oct.
Malev Hungarian Airlines' privatization process failed for the fifth time. State Privatization and Holding (APV) cancelled the sale Friday. According to Budapest Business Journal, the board of APV decided that none of the bids met its expectations and closed the tender. The sale had been criticized by some, with both opposition party Fidesz and the airline's trade union calling for a halt citing various reasons.
US Airways Group earned $2.3 million in July net of $7.2 million in Chapter 11 reorganization-related expenses. Comparisons with the year-ago period were not supplied. In its monthly operating report to the bankruptcy court, the carrier also said it achieved an operating profit of $33.6 million on revenue of $678.3 million. Operating expense totaled $644.7 million. Fuel was the largest expense category at $161 million, followed by labor costs at $139 million.
Goodrich Corp. was selected by China Cargo Airlines to supply the main deck and lower lobe cargo handling systems for its two new 747-400ERFs. The Goodrich cargo system includes the mechanical system, power drive units, electrical control system and floor panels. The aircraft will be delivered to China Cargo in July 2006 and August 2007.
Malaysian government ministers are talking openly of the need to restructure Malaysia Airlines' unprofitable domestic services. Yesterday, Transport Minister Datuk Seri Chan Kong Choy told a press conference, "We are mindful of the urgency." Earlier this week, Malaysia Airlines MD Ahmad Fuaad Dahlan announced his retirement after a 32-year career with the carrier as it reported a loss of MYR280.7 million ($74.5 million) for the three months ended June 30. He was named MD in April 2004 ( ATWOnline, Aug. 23).
Shandong Airlines' application to operate flights to Hong Kong and Macau was approved by CAAC. Shandong operates a fleet of 737-300s and CRJ200s/700s and has 737-700/-800s on order. It serves 43 domestic destinations and Singapore.
As part of the integration of Swiss International Air Lines into the Lufthansa system, the carriers announced they will operate all services between Switzerland and Germany, a total of 563 weekly flights, as codeshare flights with introduction of the 2005-06 winter schedules from Oct. 30.
Rockwell Collins said its Airshow 4200 moving map system received a "technical offerability recommendation" from Boeing and can be offered on all models of the 737, 747, 767 and 777. Deliveries of Airshow 4200-equipped aircraft will begin in October.
TAP Portugal and Swiss International Airlines concluded a commercial cooperation agreement including joint marketing and codesharing on all flights between Portugal and Switzerland beginning Sept. 1. In the first stage, the Star Alliance partners will codeshare on all flights from Lisbon to Zurich and from Lisbon and Oporto to Geneva. In the next phase, they intend to extend their codeshare operations to destinations beyond Zurich and Lisbon.
Tiger Airways CEO Tony Davis told Channel NewsAsia that it will take up to three years for the low-cost carrier to post a profit. It previously forecast a profit in its first year. Davis, the airline's second CEO, told Channel NewsAsia that he hopes Tiger will be able to launch flights to China and India shortly. The LCC is owned by a consortium of Singapore Airlines (49%), Irelandia Investments (16%), Indigo Partners (24%) and Temasek Holdings (11%).
United Airlines parent UAL Corp. said it achieved an operating profit of $113 million in July, more than double the $51 million earned in July 2004, in spite of a 46% rise in fuel price between the periods that added $127 million to operating expenses. Mainline unit cost rose 5% on a 5% decline in ASMs, but actually fell 5% if fuel expense is excluded. Passenger unit revenue jumped 9%.
