Singapore Airlines stepped up its lobbying to gain fifth freedom rights between Australia and the US with the release of a report claiming that the lack of competition on the corridor has led to higher fares, limited capacity and deprived the tourism industry of a potential A$126 million ($96.7 million) windfall.
KLM announced that Cees van Woudenberg will resign as MD and chief human resources officer and move up to the Air France-KLM holding organization, where he will join Air France's executive committee from July 1.
Aloha Airlines named Jeffrey Kessler interim senior VP-finance, CFO and treasurer. Kessler, who is a partner in Tatum CFO Partners, will fill the position until the company names a permanent CFO.
Gol flew 715.9 million domestic RPKs in May, up 44.1% over the year-ago period. Domestic capacity climbed 38.5% to 984.6 million ASKs and load factor gained 2.8 points to 72.7%. Internationally, the carrier flew 35.2 million RPKs on capacity of 59 million ASKs for a load factor of 59.7%.
Alaska Airlines flew 1.39 billion RPMs in May, up 6% over the year-ago period. Capacity declined 3.3% to 1.81 billion ASMs and load factor gained 6.7 points to 76.8%. For the five months ended May 31, RPMs rose 8.2% to 6.67 billion, ASMs increased 1.8% to 8.99 billion and load factor jumped 4.4 points to 74.2%.
Lufthansa carried 2.8% more traffic in May compared to the same month a year earlier, driven by an increase in long-haul routes. But load factor dipped 0.3 point to 73.2% mostly owing to tough competition in Europe, where passenger numbers fell 0.9%.
Air Canada was expected to finalize its recent widebody fleet replacement order with Boeing after it reached a tentative agreement with its pilots yesterday covering operation of the aircraft. AC said the accord covers "costs and other related issues relating to the introduction of the new Boeing widebody aircraft" into its fleet, but it did not elaborate. The deal is now subject to ratification by union members.
American Eagle launched several new services from Dallas/Ft. Worth International Airport, including three daily flights to Savannah, two daily flights to both Madison and Mobile and once-daily service to Evansville, Green Bay, Moline, Rochester (Minn.) and Toledo. It also began seasonal daily service between DFW and Traverse City, which will operate through Oct. 29; a second flight will be added on the route July 2-Aug. 22. All flights will use 44- or 50-seat Embraer regional jets.
Scandinavian Airlines appointed Hakan Ericson executive VP responsible for Airline Support and Airline Related Businesses. Ericson comes from DHL Freight Europe, where he was MD as well as head of European Networks, and assumes his position on Oct. 1. SAS said this appointment completes the group management team.
Finnair flew 1.24 billion RPKs in May, up 10.5% over the year-ago period. Capacity climbed 7.5% to 1.83 billion ASKs and load factor gained 1.8 points to 68.1%. For the five months ended May 31, ASKs increased 6.1% to 9.61 billion, RPKs rose 7.3% to 6.85 billion and load factor inched up 0.8 point to 71.2%.
United Airlines this week introduced 70-seat CRJ700s and Embraer 170s, which are configured with United First and Economy Plus cabins, to eight of its United Express markets. The new fleet, which replaces 50-seat United Express aircraft, is a "direct response to customer demand," United said. From June 7, United Express began to operate the new RJs between Chicago O'Hare and White Plains, Columbia, Portland, Montreal and Ottawa. They also were introduced on flights between Washington Dulles and Portland, Rochester (N.Y.) and Montreal.
Officials of a startup airline that hopes to launch transatlantic service later this year yesterday said they had secured $185 million in financing to give lift to the project. The carrier, which will use the name Eos, will feature 757s with premium service for 48 business travelers. The New York-based startup has taken possession of its first three 757s and is proceeding with regulatory filings with FAA.
US Airways flew 3.53 billion RPMs in May, up 2% over the year-ago period. Capacity climbed 1.4% to 4.65 billion ASMs and load factor was up 0.4 points to 75.9%. For the five months ended May 31, RPMs increased 3.7% to 16.65 billion, ASMs rose 2.2% to 22.41 billion and load factor was up 1.1 points to 74.3%.
South Korea-based Jeju Air yesterday placed a firm order for five 74-seat Bombardier Q400s and took options on a further three. The firm order contract is valued at roughly $120 million, but it could rise to $196 million if all options are exercised. According to Bombardier, the carrier is its first South Korean Regional airline customer. The company now has 147 firm orders for the Q400.
Air France-KLM Group said it recorded a strong level of activity in May driven by buoyant traffic on both long-haul and European routes. Overall, traffic grew 6.9% to 15.24 billion RPKs on increases of 6.7% and 7.5% respectively on long-haul and European routes. Capacity climbed 4.9% to 19.6 billion ASKs and load factor was up 1.4 points to 77.7%. In May, Air France-KLM carried more than 5.9 million passengers, up 6.7%. Cargo traffic posted a 1.3% decrease while capacity was up 6.6%. As a result, cargo load factor fell 5.1 points to 63.8%.
World Airways reached agreement on a multiyear ACMI contract with Air Canada to operate an additional MD-11F for international cargo service. Under the accord, World will operate two MD-11Fs for AC through August 2007 between Toronto, China and other points in North America. The amended contract has a value of $101 million.
German leisure and holiday airline LTU will enter the already crowded market for low-cost carriers in November. "We have to look for new business opportunities in Europe," a spokesperson explained to ATWOnline. Operating under the brand name City Quickies, LTU will offer services from Dusseldorf to Vienna, Lisbon, Rome and Madrid with fares starting at €29 ($36). In addition, it plans to offer six weekly nonstop flights from Dusseldorf to New York, also this winter, with fares starting at €149. A new weekly service to Dubai will be established as well.
Qantas fired a second baggage handler at Sydney Airport and announced a series of security enhancements as the furor escalated over alleged drug smuggling and crime links in the ranks of the airline's employees. CEO Geoff Dixon said the decision to sack the handler followed further investigation into claims that an international cocaine importing ring was operating at the airport. He said surveillance was maintained over a "small number" of handlers after the initial swoop by police that led to 14 arrests last month.
Southwest Airlines flew 5.24 billion RPMs in May, up 12% over the year-ago period. Capacity rose 14.3% to 7.24 billion ASMs and load factor declined 1.5 points to 72.4%. For the five months ended May 31, RPMs increased 10% to 23.29 billion, ASMs grew 11.6% to 34.44 billion and load factor dropped 1 point to 67.6%.
American Airlines flew 11.81 billion RPMs in May, up 10% over the year-ago period. Capacity climbed 3% to 15.11 billion ASMs and load factor increased 5 points to 78.1%. For the five months ended May 31, RPMs rose 6.9% to 55.36 billion, ASMs inched up 1.2% to 72.46 billion and load factor gained 4.1 points to 76.4%.
JetBlue Airways officially opened JetBlue University's new support campus at Orlando International Airport, which will offer recurrent training for its pilots, flight attendants, technical operations and customer service crewmembers. The facility covers some 107,000 sq. ft. and includes an auditorium, classrooms, briefing rooms, offices and an outdoor training pool. Additionally, it currently holds four A320 full flight simulators and one Embraer 190 simulator. A second 190 simulator will be installed in August and future growth could provide for up to 16 full flight simulators.
Malev Hungarian Airlines, which recently signed an MOU to join oneworld, expects to post an operating loss this year on flat revenues but anticipates an operating profit in 2006. "In the last three months we saw financial stablizisation," CEO Janos Goenci told ATWOnline during the IATA AGM in Tokyo last week. One of Malev's highest priorities is reducing the number of aircraft types in its fleet from four to three, possibly by phasing out four CRJs and replacing them with F70s/F100s.
The world's scheduled airlines in aggregate posted an operating profit last year of $3.5 billion on revenues of $374 billion, according to preliminary estimates from ICAO, which said the positive operating results--after three consecutive years of operating losses--were owing mainly to a 13% growth in traffic combined with a lesser 10% increase in capacity.
Delta Air Lines flew 10.53 billion RPMs in May, up 9.4% over the year-ago period. Capacity climbed 4.2% to 10.65 billion ASMs and load factor rose 2.5 points to 76.3%. For the five months ended May 31, RPMs increased 10.3% to 48.72 billion, ASMs jumped 5.6% to 64.79 billion and load factor was up 3.2 points to 75.2%.
