Finnair Group reported a strong second quarter as profit after tax for the three months ended June 30 more than doubled to €26.4 million ($32.7 million) from €11.5 million in the year-ago period on a 15.6% rise in turnover to €471.9 million.
American Airlines increased surcharges on fares to/from most of its international destinations as well as from/to Puerto Rico and the US Virgin Airlines in response to the continuing rise in fuel prices. The increase is $10 one way and $20 roundtrip effective immediately.
Goodrich Corp. appointed Marc Duvall president of its Engine Control Systems business, reporting to Cindy Egnotovich, segment president, Engine Systems. Duvall most recently served as VP and GM for Honeywell Process Solutions-Americas. He began his career with Garrett Engine Turbine Co. and served in a variety of engineering and management roles with AlliedSignal. He succeeds Ron Hodges, who intends to retire in March.
Shanghai Airlines blamed soaring fuel prices for a profit slump in the first half. Net profit of just 13.35 million yuan ($1.7 million) was 91% down on last year's 145.3 million yuan.
In the third fatal airline accident this month, a West Caribbean Airways MD-82 crashed in western Venezuela early Tuesday morning, killing all eight crewmembers and 152 passengers onboard.
British Airways said that operations at London Heathrow were almost back to normal after the disruptions of last week, caused when 1,000 baggage loaders and ramp workers walked off their jobs Thursday to protest the firing of several hundred employees at Gate Gourmet ( ATWOnline, Aug. 15). Both the fired workers and the BA employees belong to the same union.
Delta Air Lines announced yesterday that it entered into a definitive agreement to sell its wholly owned Regional airline subsidiary Atlantic Southeast Airlines to SkyWest for $425 million in cash. As part of the deal, ASA will continue to operate in the Delta Connection network under a new 15-year agreement. The payout includes $350 million payable at closing representing $330 million of the purchase price and $20 million relating to certain aircraft financing deposits.
United Airlines yesterday announced "a brand promise" to operate larger aircraft on longer stage lengths out of Chicago O'Hare and said Embraer 170s and Bombardier CRJ700s flown by United Express partners at ORD will offer both first and Premium Economy sections under the new "explus" brand name. "Scheduled flights out of O'Hare longer than two-and-a-half hours--as well as select other flights--will be served by United mainline, Ted, or explus," United said. "Premium snack boxes" will be served to first class passengers on explus flights longer than 150 min.
American Airlines will install Recaro lie-flat seatbeds, larger overhead bins and "enhanced" inflight entertainment systems in the business class cabins of its 767-300s and 777s and will add its Flagship Suite first class cabin to its remaining 20 777s, the carrier said yesterday.
Star Alliance opened a dedicated flight connection center at Munich, its sixth such center. Employees in the center monitor arrival and departure times of member carriers' flights so that potential misconnections can be flagged at the earliest possible stage and corrective action taken. On average, 1,500 passengers per day transfer between two Star carriers at Munich, where the airlines are co-located in the same terminal.
Last week's "suspension" of Thai Airways President Kanok Abhiradee from day-to-day responsibility for managing the airline ( ATWOnline, June 12), as suspected, was linked to the carrier's heavy June quarter loss.
Structural Monitoring Systems entered into a commercial license agreement with Boeing for terms and proprietary information access rights to enable SMS's Comparative Vacuum Monitoring system to be manufactured, certified, sold and distributed by the company to operators of Boeing aircraft. The agreement also establishes the terms under which Boeing will provide technical services and assistance to SMS.
Lufthansa will close for economic reasons its cabin crew bases in Bremen, Hannover, Cologne and Nurnberg starting with the winter schedule. According to staff magazine Lufthanseat, the carrier also is looking to close Stuttgart. Affected cabin staff will be offered the opportunity to transfer to one of the other LH bases.
Pegasus Aviation Finance Co. ordered six CFM56-powered 737-800s, its first direct aircraft purchase from Boeing. The aircraft are valued at $400 million with deliveries beginning in 2006. Separately, Boeing and Jet Airways finalized the Indian carrier's order for 10 737-800s announced at the Paris Air Show. Deliveries will begin in early 2006. Jet's order for 10 777s, also announced at Le Bourget, will be finalized "at a later date," Boeing said.
As of Friday, a $5-$10 fare increase per one-way ticket on most US domestic airline tickets appeared to be holding, with American, Continental, Northwest, United and US Airways matching an earlier action by Delta Air Lines. LCCs America West and JetBlue also said they will raise fares in certain markets. This is the eleventh time this year that airlines have been able to push through a fare increase, JP Morgan analyst Jamie Baker stated.
Delta Air Lines will begin operating MD-88s on the Delta Shuttle between New York LaGuardia, Boston Logan and Reagan Washington National airports Nov. 1, replacing 737-300s currently flying the route. The 737-300s are configured for 120 seats in a spacious single-class arrangement. Switching to the larger MD-88s means Delta can offer 134 seats in the same configuration. "Delta Shuttle customers have asked for more availability on this highly popular, hourly route and we're delivering it, along with our new comfortable cabin interiors," said Delta CMO Paul Matsen.
Air France-KLM Group reported that total turnover for the fiscal first quarter ended June 30 rose 5.5% to €5.19 billion ($6,42 million) compared to the year-ago period. The company said that excluding the impact of the consolidation of Servair in the prior year, revenues for the current period would have risen 6.4% year-over-year. Total passenger revenues grew 6.5% to €4.08 billion while cargo revenues climbed 6.8% to €660 million. Revenue from maintenance operations increased 6% to €213 million.
Atlantic Southeast Airlines President William "Skip" Barnette is leaving to assume the top job at a small Ft. Lauderdale-based airline company, increasing speculation that the Delta Air Lines Regional subsidiary soon will be sold to provide cash to its struggling parent. Barnette, a 35-year veteran of Delta, will become president and CEO of twin carriers Caribbean Star and Caribbean Sun on Sept. 1. The privately held airlines serve 17 destinations in the Caribbean.
Stating that "the US airline industry has permanently changed and Northwest Airlines has no choice but must change with it," President and CEO Doug Steenland yesterday reaffirmed the carrier's commitment to fly through a strike by its mechanics and detailed contingency plans should a job action occur. The 30-day cooling-off period expires at 12:01 a.m. Aug. 20 after which the mechanics, represented by the Aircraft Mechanics Fraternal Assn., will be free to strike. Negotiations between the two sides resume on Monday.
In a clear indication that the era of government meddling in Thai Airways International is not over, the airline's president, Kanok Abhiradee, was removed at least temporarily after being criticized by the country's prime minister for failing to react swiftly enough to a series of external crises enveloping the carrier.
A labor dispute at Gate Gourmet's London Heathrow catering operation snowballed into a major headache for British Airways and its passengers yesterday as 1,000 BA airport ground workers walked off their jobs in sympathy with some 800 catering employees who had been fired by Gate Gourmet the day before. Both the catering and airline employees--baggage handlers and ramp workers--are members of the Transport and General Workers Union. Furthermore, Gate Gourmet provides catering for BA flights at LHR.
Independence Air parent FLYi, which warned earlier this week that it might be forced to file for bankruptcy or liquidate ( ATWOnline, Aug. 11), received a reprieve from Airbus when the manufacturer agreed to defer deliveries of firm ordered aircraft and return a $31.5 million deposit. "As of Tuesday, we said our number one focus was to increase cash flow to improve liquidity," Independence spokesperson Rick DeLisi told ATWOnline. "This is a step. We are still looking at all contingencies and possibilities.
Delta Air Lines delayed filing a routine quarterly financial report with the US Securities and Exchange Commission as it negotiates a new credit card processing agreement. The current agreement expires Aug. 29 and the carrier said that "the potential Visa/MasterCard processor has advised [Delta] that it will require a significant cash reserve," known as a holdback, for tickets purchased using Visa or MasterCard but not yet flown. Delta is trying to reduce the size of the holdback to free up cash.
World Airways Holdings appointed Jeffrey MacKinney to the board of directors. He was named president of World Airways in April. Eos Airlines, a startup that intends to offer premium service between New York and London Stansted using 757s, named David S. Pottruck nonexecutive chairman. He is MD of The Pottruck Group, a San Francisco private equity firm.
Independence Air parent FLYi issued its strongest warning yet that it may be forced into a Chapter 11 bankruptcy reorganization or Chapter 7 liquidation. In its 10-Q filing for the June quarter, the company said it has reduced its scheduled CRJ flying for September by 17% and is cutting its transcon flying with A319s in favor of operating them in East Coast markets. It also said it is not in compliance with terms of its agreement with GE Commercial Aviation Services, putting at risk up to eight CRJs. FLYi lost $98.5 million in the second quarter.
