Blue1 VP-Finance and CFO Stefan Wentjaervi was appointed president and CEO of the Finnish SAS subsidiary. He will take up his position after the summer and is replacing current President and CEO Sveneric Persson, who is leaving to take over as head of the SAS organization in the Americas on Sept. 1.
Global ePoint's AirWorks Division received a new FAA STC for its cockpit door surveillance system, which now spans the entire family of 737s with two configurations.
Traffic at Tel Aviv Ben Gurion came to a halt Tuesday morning, stranding thousands, after tests indicated that the fuel supplied to aircraft at the airport was polluted. However, subsequent tests showed that the fuel was okay and flights resumed, according to media reports.
British Airways announced that it will increase flights to India later this year following the new air services agreement reached between the UK and Indian governments earlier this month that allows more flights between the countries ( ATWOnline, April 14).
Finnair informed tour operators that it will implement a 4.7% fare increase on leisure flights from June 1. The hike is in accordance with contract terms and conditions and is a result of high fuel costs, which have risen more than 35% from last September's levels to which the contract is tied, the airline said in a statement.
Midwest Air Group reported a $15.9 million net loss for the first quarter ended March 31, more than double the net loss of $6.9 million in the prior-year period. Results from the 2005 first quarter included a one-time $0.9 million charge related to a settlement with Dornier Aviation and $0.7 million in severance costs accrued for outplaced workers. Results for the 2004 quarter included a federal tax benefit of $3.8 million and $1.1 million in costs related to disposition of DC-9s.
US airlines flew 41.67 billion domestic RPMs in January, up 8% over the year-ago period, according to US Dept. of Transportation statistics. Domestic capacity climbed 1.1% to 59.61 billion ASMs, pushing load factor up 4.5 points to 69.9%. Delta Air Lines carried 6.2 million domestic passengers during the month, the most of any airline. Southwest Airlines at 6 million and American Airlines at 5.8 million ranked second and third respectively. Among airports, Atlanta Hartsfield-Jackson International was the busiest for domestic travel with 2.9 million passenger boardings.
Lufthansa will increase its fuel surcharge for long-haul flights owing to the record cost of jet fuel. The surcharge will rise to €27 ($35) from €17 for each long-haul leg for tickets purchased from April 25.
News from Travel Technology Update: Travelsky Technology Ltd., a unit of China Travelsky Holding Co. and the largest electronic air travel distribution system provider in China, signed an "exclusive strategic cooperation agreement" with American Express that designates Travelsky as the sole GDS service provider for American Express in mainland China for three years. Travelsky currently is the only GDS provider in China, but it is expected that other GDSs will enter the market.
Ryanair announced yesterday that it will not move forward with plans to offer its passengers digEplayer portable inflight entertainment units after a five-month trial on five Stansted-based aircraft failed to develop sufficient interest among customers. According to the Associated Press, the carrier said an initial lack of availability of non-English-language programs on the handheld players was also a factor in the decision.
Northwest Airlines said it completed a $147.8 million financing, the proceeds of which it used to pay the November 2005 principal amortization in the same amount under its $975 million credit agreement. The financing transaction was led by JP Morgan and Citigroup and included participation from existing and new lenders in the credit agreement. In connection with the move, the airline said it received consent from its lenders to waive the fixed charge coverage covenant until the second quarter of 2006.
Executives of cash-strapped South African Airways told ATWOnline in Johannesburg that the carrier is laying plans to be a healthy global competitor while preparing for full membership in the Star Alliance, expected in April 2006. Among issues to be sorted out before then is the fate of its codeshare relationship with SkyTeam member Delta Air Lines on flights to Atlanta and beyond.
Air New Zealand will raise its fuel surcharge from April 20 on international flights from the US to $35 per one-way segment and from Canada to C$45 ($36.05) per one-way segment owing to rising fuel prices.
Swiss International Air Lines announced a reorganization of its sales and marketing division last week. Christoph Beckmann will join the management board with responsibility for all marketing activities, while the worldwide sales organization will be headed directly by CEO Christoph Franz until the effects of the company's link-up with Lufthansa are identified more clearly. Oliver Evans, currently chief sales and marketing officer, will concentrate on the overall management of Swiss WorldCargo.
Travelsky Technology Ltd., a unit of China Travelsky Holding Co. and the largest electronic air travel distribution system provider in China, signed an exclusive strategic cooperation agreement with American Express that designates Travelsky as the sole GDS service provider for American Express in mainland China for three years. Travelsky currently is the only GDS provider in China, but it is expected that other GDSs will enter the market. China has committed to opening its markets to new competition to fulfill its membership requirements in the World Trade Organization.
Alitalia raised the level of cost cuts included in its Business Plan 2005-08 because of an expected 30% rise in fuel costs and a "more conservative estimate" for unit revenues in the short- and medium-haul sector owing to increased competition from low-cost carriers.
TUI is launching its own airline in the Netherlands, TUI Airlines Nederland, which will operate under the brand name Arkefly. The new carrier starts up April 21 and will fly primarily to long-haul destinations. It will carry passengers for all the Dutch TUI tour operator brands as well as those of other travel companies. About 50% of TUI Nederland passengers will fly with Arkefly.
Lufthansa Flight Training and Austrian Airlines Group, as previously reported ( ATWOnline, April 5), entered into a training cooperation agreement under which LFT will construct a simulator center at Austrian's technical base at Vienna International Airport. In conjunction with the existing AAG safety and service center, which trains cabin attendants and pilots, this will result in creation of a comprehensive training center to be called Vienna Aviation Campus.
Austrian Airlines Group flew 1.33 billion RPKs in March, up 3% over the year-ago period. Capacity climbed 2.4% to 1.87 billion ASKs and load factor gained 0.4 point to 71.2%. For the three months ended March 31, RPKs increased 1.5% to 3.75 billion, ASKs rose 5.5% to 5.52 billion and load factor declined 2.7 points to 68%.
US Airways late Thursday night said it now has until the end of April to file a plan of reorganization with the US Bankruptcy Court after reaching agreement with two of its largest creditors, GECAS and GE Engine Services.
Iberia improved its load factor in March by 3.9 points from a year earlier to 78.5%, helped by Easter falling earlier this year. RPKs rose 11.2% to 4.14 billion while capacity grew 5.7% to 5.27 billion ASKs. Passenger numbers increased 5.9% to 2.3 million, of which 1.3 million were on the domestic network. Long-haul traffic went up 12.9% on a 6.7% capacity hike, improving load factor 4.8 points to 86.5%. In Europe, traffic grew 11.6% against a 4.5% increase in capacity and load factor gained 4.3 points to 68.0%.
Verona-based Air Dolomiti, a wholly owned subsidiary of Lufthansa and a member of Lufthansa Regional, will take delivery of five ex-Aer Lingus 100-seat BAE 146-300s this month and also is looking at other aircraft.
In response to speculation that British Airways will be a launch customer for the 747ADV, CEO Rod Eddington told ATWOnline yesterday that "the most pressing aircraft acquisition project for BA is the 767 replacement." According to Eddington, BA currently is looking at both the A350 and 787. It was one of the airlines heavily involved in the evolution of the 7E7/787 from the Sonic Cruiser program, with Eddington arguing that efficiency was far better than speed.
Aided by its fuel hedges, Southwest Airlines reported a $76 million net income for the first quarter ended March 31, nearly tripling the $26 million earned in the year-ago period. However, 2004 first-quarter results included $18 million in pre-tax operating expenses related to the consolidation of reservations operations. "Considering the many challenges our industry continues to face, we are grateful to report first-quarter earnings of $76 million," CEO Gary Kelly said.
