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.
After almost entering oneworld last year, Swiss International Air Lines will become a member of the Star Alliance after the chief executive board of Star unanimously approved the carrier's application for membership at its biannual meeting in Kyoto. The move was widely expected after Lufthansa, a founding member of the alliance, agreed in March to purchase Swiss ( ATWOnline, March 23).
Susumu Yamaji, former president and chairman of Japan Airlines, died in Tokyo May 27 at the age of 80. Yamaji joined JAL in July 1985 after a career in the Ministry of Transport and other government agencies. He was appointed president in December 1985 and helped to restore the airline following the August crash of a 747 in which 520 people were killed. He also oversaw the privatization of JAL in 1987. In June 1990 he was appointed vice-chairman, subsequently becoming chairman in 1991. He retired from the chairmanship in June 1998 but continued to serve as an adviser.
Air New Zealand will not reapply for regulatory approval for an equity alliance with Qantas. Speaking to ATWOnline in Kyoto at the Star Alliance AGM, ANZ CEO Ralph Norris said the airline is looking at some "cooperation with Qantas" but an equity alliance is off the agenda. The carriers fought a two-year battle with regulators for Qantas to take a 25% stake in ANZ in a far-reaching alliance. Both applications initially were rejected last year but an appeal to the Australian Competition Tribunal was successful, opening the way for a fresh bid.
Delta Air Lines said it reached agreement to amend several financial covenants included in its credit agreement with GE Capital Corp., which was finalized in December. According to a filing with the Securities and Exchange Commission, the amendment reduces the EBITDAR levels Delta must meet for certain periods, which the airline said was necessary because of high fuel prices. In addition, it increases the unrestricted funds that Delta is required to maintain to not less than $1 billion at all times.
Ethiopian Airlines boosted its firm order for 787s to 10 by exercising purchase rights for five more of the jets ( ATWOnline, Feb. 7). The order, which now has a value of $1.6 billion at list prices, also was finalized. Ethiopian is scheduled to receive its first 787 in 2008. CEO Girma Wake told ATWOnline during the IATA AGM in Tokyo that the carrier is looking for two 777-200s in order to launch a thrice-weekly service from Addis Abba to New York via Accra by October. "If no 777s are available on the market, we will lease two 747-400s.
Gol, although it is facing "intense" price competition in the second quarter that has caused yields to decline, reaffirmed its financial outlook for 2005. The carrier said it still expects net revenues of roughly 3 billion reais ($1.32 billion) and anticipates delivering an EBITDAR margin of 38%-40% and an operating margin of 27%-29%.
SAS Cargo reported an EBT of Sek12 million ($1.6 million) for 2004, its third consecutive profitable year. Turnover totaled Sek2.83 billion but yield continued to fall owing to overcapacity in the market that drove prices down, along with decreasing rates in the US.
Fares continued to fall, oil prices continued to rise. That sums up the experience for the 11 largest US passenger airlines in the first quarter ended March 31. In aggregate, they posted a net loss of $3.2 billion for the period, more than double the $1.54 billion shed in the prior-year period. Losses were not spread evenly, however, as two airlinesDelta and Unitedspilled $2 out of every $3 in red ink, much of it owing to special charges related to their respective restructurings.
Although the sky-high energy prices of the past 18 months have created major hardships for the airline industry and driven a few to the edge of the financial abyss, a positive side effect for beleaguered legacy carriers has been the stifling of interest in spreading the low-fare revolution into the arena of long-haul intercontinental services. Even investors with kerosene in their veins know that with Brent crude pushing $54 a barrel, this is not the time to take a flyer on a couple of used 747s or even 767s to fly between New York and London.
In March it was inducted formally as the Star Alliances 16th member in ceremonies in Lisbon. Its Navigator frequent-flier program was renamed Victoria. It is celebrating its 60th anniversary as an airline, and CEO Fernando Pinto is president of AEA for 2005.
The principles of radio frequency identification have been around since development of the Identification Friend or Foe system in World War II. But it is only recently that the technology is being seen as a key contributor to the airline industry, though it is widely in service in the logistics, supply-chain, retailing and other commercial businesses.
AirAsia appointed Jean Chang executive VP-Greater China & North Asia. Airbus North America welcomed Kristi A. Tucker as communications dir. American Airlines promoted Chuck Imhof to MD-Greater New York Div. and Jim Carter to MD-Eastern Div. Atlas Air Worldwide Holdings named Gordon L. Hutchinson VP & controller. BCI Aircraft Leasing introduced Erik Dahmen as MD-Europe & Middle East. British Airways Regional Cargo tapped Peter Smith as chairman. CAAC appointed Xianping Wang of GCW Consulting as special adviser.
