Continental Airlines lost approximately $115 million last month and expects to post a "significant loss" for the fourth quarter and all of 2005, Chairman and CEO Lawrence Kellner said in a recorded message to employees, the Associated Press reported.
Virgin Group purchased 10,000 doses of Tamiflu for its staff and is looking into new technologies to combat germs aboard aircraft in anticipation of an avian flu pandemic, which "will most certainly affect the airline industry," according to Chairman Richard Branson, Time reported.
TAP Portugal will assume a controlling interest in Varig Engineering and Maintenance and VarigLog (Logistics and Cargo) as part of its participation in the carrier's restructuring ( ATWOnline, Nov. 3). Total consideration for the controlling stakes is $62 million. A TAP spokesperson told ATWOnline that the airline will not be drawing on its own cash for the transaction. Two-thirds of the amount will be financed by Brazil's National Economic and Social Development Bank and the balance by external investors, whom the spokesperson declined to identify.
US Registered Traveler program, which received lukewarm reviews during a year-long test at five airports, will be rolled out nationwide beginning next June, according to Dept. of Homeland Security Assistant Secretary Kip Hawley. DHS ended the test in September. The program allows participants to avoid some of the more onerous airport screening requirements such as individual pat-downs and will, if implemented, clear the way for special security lines for travelers who agree to provide the government with personal information.
Northwest Airlines and negotiators for the Air Line Pilots Assn. reached a tentative agreement on temporary pay and benefit concessions valued at $214 million, or 60% of the $358 million the carrier is seeking to have imposed by the bankruptcy court through a Section 1113 filing. Last Wednesday, Northwest agreed to defer its request until mid-January if its unions agreed to the interim request ( ATWOnline, Nov. 3). A delay will give the carrier and unions more time to reach consensual restructuring agreements.
Northwest Airlines reported an October load factor of 82.9%, a 2.6-point climb over the year-ago month. Systemwide RPMs declined 4% from 6.15 billion to 5.9 billion while capacity narrowed 6.9% from 7.65 billion ASMs to 7.12 billion. United Airlines reported a record October load factor of 80.6%, a 2.8-point rise over October 2004. Traffic dipped 1.1% from 9.55 billion RPMs to 9.45 billion against a capacity decrease of 4.6% from 12.29 billion ASMs to 11.72 billion.
British Airways posted "reasonable results" for the fiscal second quarter ended Sept. 30, with a pre-tax profit of £241 million ($421.9 million). The year-ago period's pre-tax profit of £293 million was boosted by £86 million earned from the sale of shares in Qantas.
AirBridge Cargo of Russia, the scheduled cargo airline of Volga-Dnepr Group, ordered two 747-400ER freighters. The aircraft, worth $450 million, will be powered by GE CF6-80C2B5F engines and are scheduled for delivery in October 2007 and February 2008. "The addition of this advanced aircraft to our cargo fleet will allow AirBridge Cargo to take another step in the realization of our ambitious project to develop scheduled cargo flights between Asia and North America via Russia," said Volga-Dnepr VP San Wraight. AirBridge, formed in February 2004, has a fleet of three 747-200s.
Aegean Airlines and Lufthansa launched their first codeshare flights on Nov 1. Eighty-two daily departures within Greece and additional flights to Munich, Frankfurt, Amsterdam, Brussels, Larnaca, Hannover, Berlin, Hamburg and Paris will be operated under codeshare. Aegean could become the next Star Alliance Regional member.
WestJet announced yesterday a third-quarter profit of C$30.3 million ($25.6 million), a 43.6% climb from year-ago net earnings of C$21.1 million. The Canadian LCC saw a 30.9% increase in operating revenue to C$406.1 million and a 31.6% rise in operating income from C$42.4 million to C$55.8 million for the three months to Sept. 30.
Ryanair CEO Michael O'Leary said earlier this week that the carrier hopes to trial an onboard gambling system within two years. O'Leary often has spoken of the need to boost ancillary revenues as the LCC aims to give away at least half its seats within the next 4-5 years. Separately, Ryanair reported an October load factor of 85%, a 2-point drop off the 2004 month, as traffic rose 22.8%. It also announced new daily Dublin-Riga service starting Jan. 9.
Pakistan International Airlines signed an agreement with ATR for the purchase of seven new ATR 42-500s. The aircraft will replace PIA's aging F27 fleet operated on "socio-economic" routes. The seven firm 48-seat ATR 42-500s are scheduled to be delivered from May 2006 through 2007. ATR said the contract's total value is approximately $100 million.
Cyprus Airways will qualify for a CYP58 million ($121.5 million) bank loan if the European Commission approves a revised rescue plan submitted yesterday by the Cypriot government. The government, which will guarantee the loan, okayed additional cutbacks in order to facilitate approval, the Associated Press reported. Unions scuttled the government's previous plan.
Aero Flight, a German charter airline, suspended all services owing to financial problems and had its AOC lifted Nov 1. The carrier was an offshoot of Aero Lloyd, which went bankrupt in 2004. It operated six A320s, employed 360 and flew mainly to destinations in southern Europe and Egypt.
Emirates wants to double the number of weekly services it is permitted to operate between Dubai and Australia from 42 to 84, and the carrier's argument that it is run on strictly commercial principles drew an angry riposte from Qantas Chairman Margaret Jackson. "To suggest that Emirates is competing on similar terms as commercially run airlines like Qantas is, quite frankly, fiction," Jackson said in a statement.
Air-India's $8.84 billion Boeing order ( ATWOnline, April 27) now will head to an oversight committee formed by the Indian government, which will meet Nov. 8, the Press Trust of India reported. AI's firm order covers five 777-200LRs, 10 777-300ERs and 20 787s, with options on eight 777s and seven 787s. Air-India Express has an order for 18 737-800s.
Northwest Airlines is talking to its major unions about the possibility of delaying by two months a court hearing to rule on its request for pay and benefit reductions and work rule changes valued at $1.4 billion. In exchange, the unions would have to agree to provide "interim financial relief" valued at 60% of the targeted $840 million beginning this month. In a statement released yesterday, NWA said it has been in discussions with the Air Line Pilots Assn., the International Assn. of Machinists and the Professional Flight Attendants Assn.
Jazeera Airways, a Kuwait-based LCC and the first privately owned airline in the Middle East, made its inaugural flight to Dubai on Oct. 30 with an A320 ( ATWOnline, Sept. 15).
Alitalia's external auditor, Deloitte & Touche, declined to approve the carrier's accounts for the first half of the financial year ended June 30 owing to a lack of sufficient detail about its planned €1.2 billion ($1.4 billion) capital increase. The carrier has yet to provide evidence it has reached an agreement with underwriters, according to Deloitte, whose statement was published on Alitalia's website.
ACE Aviation Holdings, parent of Air Canada, reported third-quarter net income of C$270 million ($229.6 million) compared to an C$81 million loss in the year-ago period.
SAS Cargo finalized its purchase of Sterling's cargo capacity, adding approximately 30,000 tons to SAS Cargo's annual European capacity ( ATWOnline, Sept. 29).
Air Berlin will hire 200 flight attendants from spring 2006. The new cabin crew will be based in Dusseldorf, Dortmund, Hamburg, Hannover and Leipzig. The carrier will add up to nine new A320s next year. In addition, it plans to strengthen its position at its Nuremberg hub, adding service to Paris, Catania, Lamezia Terme, Brindisi, Mykonos, Thira and Milan Bergamo and additional frequencies to London and Vienna.
Varig and its controlling shareholder the Rubem Berta Foundation have chosen TAP Portugal as its partner in a debt-restructuring process aimed at saving it from liquidation, the Brazilian airline said yesterday. TAP's proposal was chosen over six other offers. The plan includes an initial $62 million in financing to pay off debts owed to overseas leasing companies, avoiding the repossession of 20-40 aircraft. In a second phase, TAP would help Varig with a $500 million recapitalization effort.
Delta Air Lines late Tuesday asked a US Bankruptcy Court to permit it to impose a new contract on its pilots under Section 1113 of the US Bankruptcy Code that would reduce pilot pay rates by 19.5%, providing estimated savings of $325 million annually, according to the airline. The pilots are the only unionized workgroup at Delta. The carrier is imposing $605 million in pay and benefit reductions on its 44,000 other employees.
AirTran Airways reported record traffic for October. RPMs grew 35.2% to 968.2 million against a capacity increase of 25.4%, producing a load factor of 73.1%, a rise of 5.3 points over October 2004.
