Cargolux, as expected, has emerged as one of the launch airlines for the 747ADV after its board authorized management to enter into final negotiations with Boeing for a minimum of 10 of the type for delivery beginning in 2009. President and CEO Uli Ogiermann said, "Management's recommendation to the board is the result of a very thorough analysis during which we assessed which aircraft was best suited to our fleet renewal in the next decade.
American Airlines parent AMR Corp. overcame record fuel prices and intense competition to report net earnings of $58 million for the second quarter ended June 30 compared to income of $6 million in the year-earlier quarter.
Delta Air Lines announced yesterday that Executive VP and CFO Michael Palumbo has resigned "to pursue other opportunities" and is being replaced by Edward H. Bastian, a six-year Delta veteran who most recently was CFO at Acuity Brands Inc. Palumbo spent around 14 months at Delta, having joined the company following the resignation of Michelle Burns in April 2004. Bastian previously served at the airline as senior VP-finance and controller. Also yesterday Delta named Jim Whitehurst COO, a position that had been vacant.
Air France is negotiating with Brazilian low-cost carrier Gol as well as with TAM to conclude a cooperation agreement, Le Figaro reported. AF is keen on increasing its market share in the Europe-South America market, specifically to Brazil, and currently operates daily services between Paris CDG and Rio de Janeiro and Sao Paulo. An accord with Gol would secure connections to destinations beyond Rio while TAM could provide travel beyond Sao Paulo.
On-again off-again talks between Valuair and Qantas-operated Jetstar Asia about an alliance or merger are back on, with analysts in Singapore claiming that Qantas will put an additional S$50 million into the merged airline. ATWOnline understands that staff from an Australian financial institution flew to Singapore late last week to tie up the deal. Qantas owns 49% of Jetstar Asia and initially funded the LCC with S$50 million. Jetstar Asia is expected to start services to Kolkata on Aug. 18.
Continental Airlines returned to profit in the second quarter ended June 30, reporting income of $100 million compared to a restated loss of $28 million in the year-ago period as revenue growth and savings from its labor restructuring agreements overcame record fuel prices. Net income for the current period included a $47 million gain related to the contribution of ExpressJet shares to its defined benefit pension plan during the quarter. Excluding this gain, net income totaled $53 million. The 2004 results were restated to reflect changes to lease accounting methods.
Embraer was awarded type certification for the 170 and 175 from Transport Canada Civil Aviation, which will enable deliveries to begin of 15 175s ordered by Air Canada. The aircraft will be configured for 73 passengers in two classes. As of June 30, Embraer had delivered 66 170s and logged 412 firm orders for the 170/190 family, which range from 70 to 118 seats. Certification of the 190 is expected in the third quarter and of the 195 in the 2006 second quarter.
Republic Airways Holdings announced a follow-on public offering of 7.75 million shares of common stock--all of which are being offered by the company--at a price of $12.60 per share. Merrill Lynch served as the sole bookrunner and Raymond James & Associates acted as co-manager. The company also granted the underwriters an option to purchase up to an additional 1,162,500 shares to cover overallotments.
Boeing officially launched the 737-900ER--formerly the 737-900X--on the strength of an order for up to 60 worth $3.9 billion from Lion Air of Indonesia. The order includes 30 firm plus purchase rights for 30 more. Deliveries begin in the first half of 2007. Lion Air had been expected to announce an order for 737-700s/-800s last spring ( ATWOnline, May 27).
Spirit Airlines received $100 million of new financing under agreements with Oaktree Capital Management and Goldman Sachs that it will use to finance its transition to an all-Airbus fleet and to support its new fuel hedging program. The company said $70 million will come from existing investors, including Oaktree and Spirit management, and the remaining $30 million from Goldman Sachs. "This new financing further solidifies our position within the industry," Spirit President Ben Baldanza said.
British Airways will begin a trial of new landing procedures at London Heathrow and Gatwick aimed at reducing the number of people affected by early morning aircraft noise.
United Airlines received US Bankruptcy Court approval Friday of an amendment to its debtor-in-possession financing that includes upsizing its loan by $310 million to $1.3 billion and a reduction of the interest rate it pays under the loan. "We believe the amendment is beneficial to United and reflects our lenders' ongoing confidence in our ability to execute on our business plan," the carrier said in a recorded message to employees.
DBA will start triple-daily service from Nurnberg to Berlin and two daily flights to Hamburg on Sept. 12 using F100s. Separately, DBA said it transported 1.1 million passengers from April to June, up 70% compared to the same period a year ago. Capacity rose 60% following the takeover of Germania Express aircraft and routes. The company said it expects to carry 4.3-5 million passengers this year.
Royal Jordanian Airlines said it posted a profit of 4.3 million dinars ($6.1 million) for the first quarter of 2005, beating company projections of a loss of JOD1.4 million. Revenues reached JOD91.3 million, up 21.6% compared to JOD75.1 million in the prior-year period. Passenger boardings for the January-May period rose 3.5% to 643,700.
LAN Airlines appointed Luis Eduardo Riquelme VP-North/Central America and Asia for the passenger division. In this role, he will be responsible for LAN's passenger operations in the US, Canada, Central America and Asia including overseeing sales and marketing, accounting and cost control, operations, reservations and ticket offices, government affairs, human resources and the carrier's general sales agents throughout these countries.
Spring Airlines, a low-fare carrier based in Shanghai, began operations yesterday. It is owned by Shanghai Spring International Travel Service, which claims to be the largest travel agency in China. Spring is flying three A320s leased from GE Commercial Aviation Services, two of which formerly were leased to other carriers. The third is managed on behalf of another party, GECAS said. The carrier plans to operate up to 15 A320s ( ATWOnline, July 1).
Air Canada unveiled plans to launch a number of new daily nonstop flights in Canada and the US this winter and boost service on several key domestic routes as well as others inside Canada and to the US.
US National Transportation Safety Board member Richard Healing announced his retirement effective Aug. 1. Before joining NTSB in 2003, Healing spent a year as director-transportation safety and security for Battelle Memorial Institute. Prior to that, he served for 17 years as director-safety and survivability for the Dept. of the Navy and also spent 29 years in the Coast Guard and Coast Guard Reserve.
Swiss International Air Lines and Air Canada plan to codeshare on flights between Zurich and Toronto. AC also is studying launching a new Toronto-Delhi route via Zurich to take advantage of Swiss's membership in the Star Alliance and the introduction of Zurich into the Lufthansa hub network after LH completes its acquisition of Swiss.
TAAG Angola Airlines reached a definitive agreement with Boeing for the purchase of two 777-200ERs and four 737-700 Quick Change aircraft. The agreement also includes options for an additional 777-200ER and two more 737-700QCs. According to Boeing, the firm order is valued at roughly $649.6 million at list prices and approximately $990 million with options included. The aircraft will be delivered next year, with the first 777-200ER and 737-700 scheduled to arrive in July. They will replace the current fleet of two 747-300s and five 737-200s.
Kitty Hawk appointed James Kupferschmid VP and CFO. He comes to Kitty Hawk with a 20-plus-year financial career including cargo, airline and M&A assignments with Northwest Airlines and Continental Airlines.
Aerosim said AeroMexico will take a 737-700/777-200ER Virtual Procedure Trainer as part of a complete training solution being provided by Alteon Training.
Shares of Delta Air Lines climbed nearly 18% last Thursday after the carrier announced it would raise its fare caps for domestic one-way walkup fares from $499 to $599 ( ATWOnline, July 15), but JP Morgan analyst Jamie Baker threw cold water on the higher expectations, stating that the fare increase is a positive step but does not improve Delta's chances of avoiding Chapter 11.
Gulf Air will launch a thrice-weekly service from Bahrain to Dublin beginning Dec. 2 using A330s in three-class configuration. The flight will be Dublin's first-ever scheduled service into the Middle East. "There is a huge amount of traffic from Dublin to the Gulf and beyond that now has to travel over London or Amsterdam. There is a huge leisure market, a large VFR market as well as a strong high-yield business market," Gulf Air President and CEO James Hogan told ATWOnline in Dublin.
Austrian Airlines Group, which holds 62% of tiny Slovak Airlines, is interested in acquiring the remaining shares if the state permits it, a spokesperson told this website. Meanwhile, AAG, which comprises Austrian, Austrian arrows, Lauda Air and Slovak, flew 2.1 billion RPKs in June, up 8.8% over the year-ago period. ASKs rose 8.7% to 2.8 billion and load factor grew a fraction to 73.1%. The group transported 994,000 passengers, up 12.1%. For the first half, AAG flew 10 billion RPKs, up 1.8%, on a 4.2% gain in ASKs to 14.2 billion. Load factor dropped 1.7 points to 70.2%.
