Austrian Airlines Group is deemphasizing previously discussed plans to invest in airlines in the Balkans and Eastern Europe as part of its broader strategy to build its network in the region, CEO Vagn Soerensen told ATWOnline. As these states join or move closer to membership in the EU, "it make less sense for us to invest in [them], because one of the advantages--to get better traffic rights--is gone," he said.
Lufthansa Flight Training and Austrian Airlines will establish a simulator training center in Vienna. The companies will hold a joint press conference April 14 to discuss the program.
US Dept. of Transportation gave final clearance to several passenger and cargo airlines that tentatively were granted rights in February to launch services to China ( ATWOnline, Feb. 23). As a result, American Airlines officially can start marketing its new Chicago-Shanghai flights that will begin next year. In addition, Federal Express, Northwest Airlines, Polar Air Cargo and UPS will be able to boost their cargo service to China in 2006 by adding three weekly flights each.
In what it described as a further step in its "commitment to intra-European travel," easyJet announced that it will establish a new base at EuroAirport Basel-Mulhouse-Freiburg this summer and launch five new routes from the airport.
Avianca reported a net income of $116 million for 2004, a complete turnaround compared to the $108 million net loss the carrier posted in 2003. The airline said the improvement was primarily the result of benefits generated by its financial and operating restructuring carried out under bankruptcy and also reflected a $119 million equity enhancement. Operating revenues increased 20% to $652 million while direct operating costs rose 12.1% to $387.4 million on an 18.4% jump in fuel costs.
Gulf Air and Lufthansa Technik tomorrow are scheduled to reveal at the Aircraft Interiors 2005 conference in Hamburg the details of what LHT terms a "far-reaching" MRO contract to be signed by Gulf Air President and CEO James Hogan and Lufthansa Technik Executive Board Chairman August Henningsen.
Hit hard by $129.5 million in reorganization expenses as well as rising fuel prices and increased competition, bankrupt Hawaiian Airlines posted a $75.4 million net loss for 2004 compared to a net loss of $49.5 million in 2003. The airline said the reorganization expenses primarily consisted of $110.6 million in one-time noncash claims to settle leases with Boeing Capital Corp. for three 767-300s and 11 717-200s, and with Ansett for a 767-300 rejected by Hawaiian in 2003. Results also included an income tax provision of $16.8 million.
ACE Aviation Holdings, parent of Air Canada, entered into agreements with a group of underwriters to sell an aggregate of roughly 11.4 million Class A and B shares at a price of C$37 ($30) per share for proceeds of C$420 million. ACE also will sell C$300 million of 4.25% convertible senior notes due 2035. The notes will be convertible into shares at an initial conversion price of C$48 per share. ACE said both offerings were increased following strong investor demand.
Lufthansa marked the 50th anniversary of its 1955 rebirth with a festive ceremony March 31 in a hangar at its Hamburg base and a commemorative flight the next day in an A310 painted in nostalgic old-time LH livery that was prepared by Lufthansa Technik for the occasion. The flight was from Hamburg to Munich via Duesseldorf and Frankfurt along a route taken by an LH Convair 340 on April 1, 1955, in a 4-hr. flight that marked the beginning of a new era in German aviation. Lufthansa's history actually dates to the founding in 1926 of what was called Deutsche Luft Hansa.
AAR hired Fred Kocher as GM-AAR Aircraft Services. Airbus North America tapped Guy McLeod as president-sales. Airport Consultants Council named Dawn E. Lucini of ARINC chair of its DHS Legislative & Regulatory Affairs Committee. AirRep appointed Caroline Daniell and Nadya Gooders operations & commercial assistants in the freighter department and Craig Gould to handle reservations at AirRep Cargo Europe. ASIG selected D. Bradley Keith as national fuel quality & compliance mgr. Emirates introduced Hiran Perera as VP cargo-freighters.
Measured, prudent expansion is also key, with the accent on "close to home" training. In addition to its main Stockholm Arlanda base with 14 simulators and a smaller unit without full flight simulators at Copenhagen, the Flight Academy opened a spacious 5,000-sq.-m. purpose-built training center with 25 staff last August in Norway near Oslo Gardermoen's passenger terminal.
The view from this small town in the high desert of southwestern Utah is a panorama of valleys, patches of black lava and steep red cliffs topped by a canopy of endless sky that never seems to want for color. The sky--literally--is the limit in St. George, the headquarters of SkyWest Airlines. You could say the same about the future of this carrier, which was founded by Ralph Atkin in 1972 and has grown from operating a single Piper Seneca into one of the largest and most profitable Regionals in the world.
"There's an old saying around here that you never go bankrupt with too few seats or too few airplanes," Southwest Airlines CEO Gary Kelly tells ATW at the airline's Dallas headquarters.
Virgin Blue head Brett Godfrey denied speculation that he will resign following the change in management control of the airline. In a memo to staff, Godfrey said he is happy to continue in his position at least until late next year as long as he retains the support of Virgin Blue employees, shareholders and the board. He also refuted suggestions that the group's international arm Pacific Blue would be scaled back, saying that the subsidiary is profitable, has exceeded expectations and remains an integral part of Virgin Blue operations.
Lufthansa Technik Group, which includes LHT and 18 consolidated companies, grew stronger than the market itself and substantially improved earnings last year as evidenced by the €227 million in income from operations reported for 2004. "After three years of turbulence, the market is still under pressure but the demand for MRO services picked up for the first time since 9/11, resulting in a market growth of 5.3%," explained LHT AG Executive Board Chairman August Wilhelm Henningsen.
Swiss International Air Lines' large shareholders sold almost 84% of the carrier's capital to AirTrust, the holding company through which Lufthansa is taking over Swiss. According to the carrier, the newly formed company now holds 83.96% of Swiss share capital, almost all of the 86.13% previously held by majority shareholders. As part of the deal, AirTrust is offering major shareholders $342.3 million. It is offering another $58.1 million to individual investors whose shares are in free float.
Continental Airlines flight attendants late Wednesday rejected a new agreement, becoming the only work group at the carrier that did not ratify a new deal. Earlier Wednesday, Continental's pilots, mechanics, dispatchers and simulator engineers all approved new contracts that include pay and benefit reductions ( ATWOnline, March 31).
Pinnacle Airlines named Clive Seal VP-fight operations effective April 18. He will be responsible for the administration and management of Pinnacle's pilots, the Pinnacle Airlines Corporate Education Center and System Operations Control.
Air New Zealand could pursue a little-known loophole in New Zealand aviation legislation to bypass the competition regulator and establish a codeshare partnership with Qantas on the Tasman. According to the general lawyer for ANZ, John Blair, the New Zealand government has the power to allow the carriers to sell seats on each other's international services under the Civil Aviation Act. However, he said the legislative provision cannot be exercised to extend such an alliance to domestic services.
US Airways yesterday said the US Bankruptcy Court extended until May 31 the period for it to retain exclusive rights to file a plan of reorganization. Previously the carrier was expected to file its plan with the court by March 31. According to a statement, the request for an extension was supported by the company's unsecured creditors committee and was "unopposed by other interested parties."
Latin American Airline Assn. member carriers flew 10.9 billion RPKs in January, up 17.7% over the year-ago period. Capacity climbed 12% to 15 billion ASKs and load factor gained 3.5 points to 72.2%.
Air Nelson signed an agreement with FlightSafety International to purchase a flight simulator to provide the pilot training required for its new Q300. The simulator will be based within Air New Zealand's new simulator facility in Auckland and will be fully operational by October.
Telair International received a firm order from Shandong Airlines for four Sliding Carpet Loading Systems for installation in the aft cargo compartments of the carrier's 737-800s, with an option for four additional systems. Delivery and installation are scheduled for mid-2005.
Continental Airlines got a big boost yesterday when its pilots and mechanics ratified new contracts that will result in significant cost savings for the company. According to the Air Line Pilots Assn., roughly 93% of eligible members cast ballots, with approximately 53.4% voting to approve the new deal. ALPA noted that the contract contains a clause that allows the pilots to reject it if any other employee group fails to approve a similar concessionary contract.
