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.
Skyguide has completed a massive reorganization of the airspace around Zurich Airport with new holding areas and approach and departure routes that will go into effect April 14. The company stressed that the move was politically motivated. "Skyguide has built a new airport in Zurich," CEO Alain Rossier said. "Virtually all that is left is the concrete on the runways; in the air, everything has been altered or adapted." According to Skyguide, the key element of the reorganization is the transfer of holding areas from southern Germany over Swiss territory.
Korean Air reported a 112% year-on-year lift in passenger demand from China to 428.9 million RPKs, while load factor climbed 4.2 points to 70%. The airline also experienced robust growth in Japan and Europe/Middle East traffic with 15.2% and 17.4% hikes in RPKs respectively for the first two months of 2005. Those spectacular gains were offset by a 21.9% drop in domestic RPKs owing to route restructuring. China also became the growth engine of Korean Air's cargo business as volume to and from the country more than doubled to 44.9 million FTKs year-on-year.
TAP Portugal posted a consolidated net profit of €8.6 million ($11.1 million) in 2004, down 56% from a net profit of €19.7 million in 2003, when the company was able to find the black after years of losses owing to a restructuring program that included stringent cost-cutting as well as significant increases in productivity over the last four years.
Atlas Air Worldwide Holdings named Michael Barna senior VP and CFO effective April 11. Barna also will serve as senior VP and CFO of AAWW subsidiaries Atlas Air and Polar Air Cargo.
Hungary apparently will not be able to sell national airline Malev because the three parties that submitted bids all offered too little for the carrier, according to Reuters, which quoted a story in business daily Napi Gazdasag. It was the government's second attempt in less than six months to sell the airline. All three bids offered between 150 million forints ($780,200) and 200 million forints and the parties also agreed to assume some of Malev's 35 billion forint debt, the report said.
Alpine Air Express posted a net loss of $168,843 for the three months ended Jan. 31, a significant improvement from a net loss of $413,081 in the prior-year period. Revenues rose 97.8% to $5.2 million owing to a sharp increase in cargo volumes, which more than doubled year-over-year as a result of a new USPS contract in Hawaii.
AMR Corp., parent of American Airlines, yesterday said AA's mainline and consolidated unit revenue both are expected to increase in the first quarter, while unit costs for the period are projected to be on a par with prior forecasts.
Honeywell named Peg Billson VP and GM of its Airframe Systems business and Greg Albert VP and GM of its Aircraft Landing Systems business, effective April 1.
GB Airways placed an order for five Airbus single-aisle family aircraft, comprising one A320 and four A321s. Deliveries are scheduled from 2007 onward, "while three extra A321s are expected to join the GB fleet by spring 2007," Airbus said in a statement, noting that this is the first time the airline is acquiring aircraft directly from the manufacturer. They will be powered by IAE V2500s.
In light of record high fuel costs, revenue-negative domestic fare restructuring initiatives undertaken by other airlines and labor cost reductions at its primary competitors, including United Airlines, Northwest Airlines yesterday announced that it is increasing its annual labor cost savings target from $950 million to $1.1 billion. In addition, the airline said it will ask its unions to agree to a freeze of the current defined benefit pension programs and has proposed a new defined contribution pension program to replace them.
El Al Israel Airlines reported a net profit of $33.1 million for 2004, its best annual financial result in five years and a significant increase over a net profit of $6.4 million in 2003.
Delta Air Lines yesterday announced that it will make several changes to its Technical Operations division in moves it said will result in savings of roughly $240 million over five years. However, the changes also will result in 1,600-2,000 TechOp job cuts, which are part of the 6,000-7,000 positions the company said it would eliminate in its previously announced Transformation Plan.
Hawaiian Airlines' plan to emerge from Chapter 11 next month was dealt a blow late last week when its pilots failed to ratify a new agreement by a vote of 55% to 45%. As a result, the airline said it may be forced to turn to the bankruptcy court to achieve a new contract. "It's disappointing, but unfortunately not quite enough pilots voted for the contract their union negotiated, a contract that was better than any proposal made by any airline to its pilots in the last two years," Hawaiian Trustee Joshua Gotbaum said.
Korean Airlines is close to placing an order for the 787, with insiders suggesting to ATWOnline an order and options package "for at least 20 aircraft."
Emirates launched a seventh weekly flight from Dubai to Casablanca using an A330-200 in a three-class configuration. Separately, Emirates took delivery of a new 777-300ER as part of its $30 billion fleet expansion. The carrier has 30 777-300ERs on firm order and will receive 10 of them by year end. It also has 45 A380s, 20 A340-600HGWs, two A340-500s and three A310-300 freighters on order.
Northwest Airlines must repurchase roughly $226 million of its preferred shares from employees, a judge ruled late last week. The shares were issued about 10 years ago in exchange for concessions, and Northwest had agreed to buy them back in 2003. However, that year it said it would not do so and subsequently the unions representing ground workers and flight attendants filed a lawsuit over the matter.
Swiss International Air Lines' new hub system at Zurich went into operation with the start of the carrier's summer season Sunday. Swiss said the hub enhancements aim to "further improve the product for the customer, making Swiss at Zurich Airport a swift, smooth and comfortable air travel experience." According to the airline, one of the cornerstones of the new arrangement is a clearer assignment of flights to the airport's various areas.
Gol and shareholder BSSF Air Holdings, an affiliate of AIG Capital Partners, filed a registration statement with the Securities and Exchange Commission to sell 20.4 million of the airline's preferred shares. The carrier said the shares will be offered in the form of American Depositary Shares in an international offering and preferred shares in a concurrent Brazilian offering. Each ADS represents two preferred shares. Gol said none of its other shareholders will sell their preferred shares in the proposed offering.
BMED, an independent franchise partner of British Airways, has contracted with SD Shepherd Systems for use of its Market Information Data Transfer product, Clarity.
Aloha Airgroup and subsidiary Aloha Airlines received US Bankruptcy Court approval last week for $65 million in debtor-in-possession financing it will use to pay off outstanding loans, including its Air Transportation Stabilization Board loan and commercial bank loans, and supply working capital. According to President and CEO David Banmiller, the DIP financing gives the company the funding it needs to implement its financial restructuring and "go-forward" business plan for a "quick exit" from Chapter 11. Aloha has been operating under bankruptcy protection since December.
Air France could be a launch customer for Boeing's proposed 777 freighter and is considering placing an order for seven of the new aircraft. The airline did not comment on a report in French financial daily La Tribune but confirmed that the 777F is its preferred option to replace part of its aging fleet of 747Fs. AF currently has eight 747-200Fs and four dash 400ERFs in operation, with one 747-200F due to leave the fleet shortly.
Delta Air Lines faces another possible downgrade of its debt obligations after Standard & Poor's on Friday "revised the implications of its CreditWatch review of ratings on Delta to 'developing' from 'positive,'" citing liquidity concerns. According to S&P analyst Philip Baggaley, the change "reflects renewed pressure on Delta's liquidity from sharply higher fuel prices" that could add up to $1 billion to operating costs this year.
