Delta Air Lines CEO Gerald Grinstein warned Congress yesterday that without fast federal action on their pension liabilities, "airlines will almost certainly be forced into bankruptcy and have to transfer additional pension liabilities to the Pension Benefit Guaranty Corporation." Grinstein and NWA President and CEO Doug Steenland were in Washington to testify in support of S.861, the "Employee Pension Preservation Act of 2005," which would give companies more time to make overdue payments to their pension plans while requiring them to cap existing liabilities at their current level of
Continental Airlines moved yesterday to dampen speculation about an improving outlook after it reported stronger than anticipated unit revenue growth in May that caused some analysts to raise their outlook for the carrier this year. In an investor update, the company said that "while revenue trends have been improving, with current high fuel prices and refining margins, [it] continues to expect a significant loss for the year."
EasyJet said it flew 2.6 million earned seats in May, up 21.9% from the year-ago period. Load factor gained 3 points to 81.1%. For the rolling 12 months ended May 31, the LCC flew 28 million earned seats, a 24.8% increase on the prior-year period, and revenue was up 22.1% to £1.24 billion ($2.27 billion). Load factor improved 1.2 points to an average of 85.1%.
Northwest Airlines flew 6.57 billion RPMs in May, up 6.3% over the year-ago period. Capacity climbed 2.5% to 7.86 billion ASMs and load factor gained 2.9 points to 83.6%. For the five months ended May 31, RPMs increased 8.1% to 31.08 billion, ASMs rose 4.4% to 38.43 billion and load factor was up 2.8 points to 80.9%.
Swiss International Air Lines CEO Christoph Franz told ATWOnline that he expects Lufthansa's acquisition of Swiss to receive a green light from the EC this summer. The carriers have created working groups to smooth the merger. Franz added that in terms of joining the Star Alliance, Swiss has to identify a geographical role for itself. He said the LH hubs at Frankfurt and Munich need to be connected strongly to Zurich, which "offers space to grow" while Munich will be running out of capacity "in about two years time."
United Airlines and Verizon Airfone, in what they claim is a first, received FAA certification to install the necessary cabin equipment to enable passenger and crew use of wireless technology devices to send and receive e-mail and surf the Internet onboard domestic commercial aircraft.
Focus Aviation delivered the third of four converted MD-11Fs to Transmile Air on behalf of Central Air Leasing. The conversion was done by SASCO in Singapore, where a fourth aircraft is currently in conversion.
JetBlue Airways flew 1.7 billion RPMs in May, up 32.9% over the year-ago period. Capacity climbed 25.6% to 1.97 billion ASMs and load factor jumped 4.8 points to 86.6%. For the five months ended May 31, RPMs increased 30.7% to 7.77 billion, ASMs rose 23.7% to 9 billion and load factor grew 4.7 points to 86.3%.
As predicted ( ATWOnline, June 6), FlyBE placed an order to purchase up to 26 GE CF34-powered Embraer 195s, comprising 14 firm orders and 12 options with deliveries beginning in August 2006 and continuing to November 2007. According to Embraer, total value of the firm contract at list prices is $470 million with a potential of up to $870 million if all options are converted.
Pemco World Air Services converted and delivered a 737-300 Quick Change aircraft to CIT Aerospace in New York for onward lease to Titan Aerospace, a European charter airline that already operates four BAe 146 freighters and a 737-300 converted by the Dothan, Ala.-based company.
United Airlines flew 9.72 billion RPMs in May, up 0.9% over the year-ago period. Capacity climbed 1.2% to 11.88 billion ASMs and load factor was ahead 1.7 points to 81.8%. For the five months ended May 31, RPMs increased 0.5% to 45.3 billion, ASMs rose 2.2% to 57.12 billion and load factor gained 2.1 points to 79.3%.
Alteon Training will place a 737-700/-800 full flight simulator and 737-700/-800/777 flat panel trainer in AeroMexico's facility at Mexico City International Airport to support the airline's growing fleet.
FlyBE confirmed to ATWOnline that it will announce a major fleet expansion today. The order for 9-12 new 150-seat aircraft is part of its fleet renewal program as it intends to retire its aging BAe 146s, but it also will accommodate the carrier's ambitious growth strategy.
Alteon Training selected Thales to provide training equipment for the 787. Alteon said the initial order is for six suites with deployment beginning in 2007.
ATA Holdings Corp. named Francis Conway as interim CFO replacing Gilbert Viets, who will step down as CFO but will remain with the company as assistant to the chairman and a member of the company's board. In addition, ATA appointed industry veteran Subodh Karnik as senior VP and chief commercial officer. In this position he will oversee all revenue-related functions including sales, marketing, market planning, pricing, revenue management, e-commerce and distribution.
Although consolidated results for Air France-KLM Group were released earlier, KLM reported its individual results for the fiscal year ended March 31 last week. The airline said the figures differ from those included in the AF-KLM Group results, which included just 11 months of its operations and were adjusted to comply with French accounting policies, as they cover a period of 12 months and comply with Dutch accounting policies.
Continental Airlines flew 6.67 billion RPMs in May, up 10.8% over the year-ago period. Capacity climbed 4.2% to 8.44 billion ASMs and load factor rose 4.7 points to 79.1%. For the five months ended May 31, RPMs increased 10.3% to 31.17 billion, ASMs grew 4.3% to 40.27 billion and load factor gained 4.2 points to 77.4%. For May, consolidated passenger RASM is estimated to have increased 8.5%-9.5% compared to May 2004, while mainline passenger RASM is believed to have climbed 9%-10% year-over-year.
Telair International was selected by Air France to supply main deck cargo loading systems for the carrier's conversion of three 747-400 Combis into full freighters. The Combis are currently in all-passenger configuration. The conversions are scheduled to take place between January and December 2007. AF already has installed Telair systems in its five 747-400ERFs.
TAP's plan to purchase a 20% stake in debt-laden Varig has been approved tentatively by the Brazilian government, the Associated Press reported. The two airlines confirmed on May 16 the signing of an MOU to hold exclusive talks aimed at a "capitalization" of Brazil's flag carrier. The MOU had a three-week time span.
Malaysia Airlines reported a net profit of 326.1 million ringgit ($85.8 million) for the fiscal year ended March 31, a 29.3% decrease compared to a net profit of 461.1 million ringgit in the prior financial year. Total revenue rose 29.4% to 11.4 billion ringgit primarily owing to a record 24% increase in international passenger traffic and a 21% jump in cargo tonnage flown, while total expenses climbed 28.7% to 11 billion ringgit mainly from a 1.5 billion ringgit hike in fuel expense during the year.
Assn. of European Airlines members posted overall scheduled traffic growth in April of 3.9% compared to the year-ago month, with most of the increase coming from sustained buoyancy in the Far East market, which posted growth of 12.9%. European traffic rose only 1.7% and the North Atlantic market experienced a small downturn of 0.4%. In most markets except Far East/Australasia, traffic growth did not match capacity on offer and load factors dropped.
Star Alliance members are "extremely impressed" with the 787, according to Thai President Kanok Abhiradee, who told ATWOnline that Thai International is looking at the type and will make a decision on whether to place an order within four months. Another Star member, Singapore Airlines, which put off ordering the 787 last year, has issued a new RFP for 20 250-seaters. Earlier this year, SIA CEO Chew Choon Seng told this website that the 787-3 business case did not work against the A320/737 offerings of low-cost airlines in the region.
Lufthansa on Friday said 96% of the share capital of Swiss International Air Lines has been tendered to AirTrust AG, the Swiss-domiciled vehicle through which the German airline is acquiring the struggling carrier. The Swiss major shareholders accounted for 84.6% and a further 11.4% came from minority shareholders. A total of 6,098,426 shares held by the small shareholders were tendered, corresponding to 73.6% of shares held by them at the end of the offer period.
Hawaiian Airlines, as planned, emerged from bankruptcy yesterday after more than two years in Chapter 11 protection. The company said exit financing includes a $60 million bridge financing in the form of a newly issued series of its subordinated convertible notes that will be purchased by RC Aviation pursuant to an August 2004 backstop financing commitment.
UAL Corp., parent of United Airlines, reported a $124 million net loss for April, which included $28 million in reorganization expenses. The company previously reported it lost $127 million in April 2004, including $28 million in reorganization expenses ( ATWOnline, May 28, 2004). Operating loss for the month totaled $47 million, a $28 million improvement over the year-ago period despite $91 million in additional fuel expense.
