Virgin Blue further rationalized the nonperforming routes in its domestic network as it continues its drive to recover earnings growth and improve yields under new owner Patrick Corp. Citing unsatisfactory demand, CCO Stefan Pichler said the carrier will withdraw from the Adelaide-Alice Springs and Sydney-Darwin routes from Sept. 4. This will mean it no longer services the "Red Center" of Alice Springs.
Air France-KLM Group flew 15.8 billion RPKs in June, up 7.8% on the year-ago period. Capacity grew 4.6% to 19.39 billion ASKs and load factor gained 2.4 points to 81.5%. The group carried 6.2 million passengers, a 6.1% increase, of which 4.5 million were on the European network. Cargo activity continued to suffer from the weakness of European exports and posted a 1.1% decrease while capacity rose 4.3%, sending load factor down 3.5 points to 64.7%.
SAS Braathens is guilty of predatory pricing in an attempt to drive low-fare rival Norwegian off the Oslo-Aalesund route, according to Norway's competition authority, which proposed fining the carrier NOK30 million ($4.5 million). According to Reuters, the authority found that SAS Braathens set fares at levels too low to recover costs. The airline already is challenging an NOK20 million fine for abuse of market position on the Oslo-Haugesund route.
Yesterday's terrorist attacks in London are unlikely to have a serious or lasting impact on transatlantic travel to the UK and Europe, according to JP Morgan's Jamie Baker, who said in a report released Thursday that he expects "a temporary slight decline in UK demand, [with] little to no decline for broader Europe." Baker noted that following the terrorist attack in Madrid in March 2004, "US and European carriers serving Spain experienced little to no lasting demand degradation."
Rockwell Collins Aviation Services was selected by AirAsia to provide service and support for the Collins avionics on its new fleet of A320s. Under the 15-year price-per-flight-hour agreement, CAS will furnish maintenance support on 60 A320s with options on a further 40.
North Asia region will attract a significant number of new low-cost carriers, according to the Centre for Asia Pacific Aviation. "We are at the point of what should be a major increase in low-cost air travel across the north of the region," said CAPA MD Peter Harbison. At least 12 new airlines are expected to begin operations over the next 12 months in Macau, China, Hong Kong, South Korea and Japan. Harbison said the big issue is how fast governments are prepared to liberalize. "We think conditions are ripe for [LCC] development in North Asia.
EasyJet carried 2.6 million passengers in June, up 15.4% compared with the year-ago month. Load factor slipped 0.4 point to 85.6%. For the rolling 12 months ended June 30, the airline carried 28.3 million passengers, up 23.7% on the prior year. Load factor rose 1.1 points to 85.1%. Unaudited revenues for the 12-month period increased 22.5% to £1.26 billion ($2.2 billion). "We experienced a more favorable revenue environment during the month, but this has been balanced by an unfavorable movement in the spot price of jet fuel," CEO Ray Webster said.
US airline ontime performance improved in May compared to the previous month and May 2004, the US Dept. of Transportation reported yesterday. In addition, the carriers canceled fewer flights. According to DOT statistics, the 20 reporting airlines recorded an overall ontime arrival rate of 83.7% in May, significantly higher than May 2004's 77.6% and slightly above April 2005's 83.4%. Of the flights that were delayed, 3.3% were caused by bad weather, down from May 2004's rate of 7.4% but on par with April when 3.3% of flights also were delayed by weather.
Lufthansa appointed Karsten Benz VP-sales and services-Europe effective July 1. Benz took over from Ulrich Wachter, who has moved to Frankfurt to head Lufthansa's cabin crew division. In his new position, Benz has overall responsibility for sales and airport operations across Europe excluding Germany.
Asiana Airlines was hit by a 24-hr. strike by many of its unionized pilots. According to the Associated Press, around 300 of the 527 union pilots participated in yesterday's walkout but the carrier was able to operate its schedule using its 300 nonunion pilots and union pilots who did not participate in the strike. The pilots are seeking increased job security and reduced flying hours, AP reported. Korean Air pilots are conducting a campaign against their own airline, utilizing work-to-rule tactics to protest for better benefits, the news agency added.
American Airlines flew 12.67 billion RPMs in June, up 7.8% over the year-ago period. Capacity climbed 2.8% to 15.29 billion ASMs and load factor gained 3.8 points to 82.8%. For the six months ended June 30, RPMs rose 7.1% to 68.02 billion, ASMs increased 1.5% to 87.75 billion and load factor was up 4.1 points to 77.5%. Delta Air Lines flew 11.12 billion RPMs in June, up 4.7% over the year-ago period. Capacity grew 4.3% to 13.57 billion ASMs and load factor gained 0.3 point to 82%.
The European Commission launched infringement proceedings against six member states, citing their "failure to meet all their obligations" under the EU's new passenger rights legislation covering flight cancellations, denied boarding and long delays that became effective Feb. 17.
Boeing delivered a total of 85 commercial aircraft in the second quarter, consisting of three 717s, 59 737NGs, four 747s, one 757, four 767s and 14 777s. In the 2004 second quarter, the company delivered 75 commercial aircraft: Three 717s, 50 737NGs, four 747s, four 757s, three 767s and 11 777s. For the six months ended June 30, Boeing reported a total of 155 commercial aircraft deliveries, up slightly over the 151 recorded in the prior-year period.
OpenPages announced that Hawaiian Airlines has selected its Sarbanes-Oxley Express for its Sarbanes-Oxley compliance initiatives. The carrier will deploy SOX to automate its ongoing test and review of its internal controls documentation in order to reduce the time and resource costs associated with Section 404 and 302 compliance.
Aviareps launched a UK-based subsidiary, Airline Centre UK Ltd., with an office in London. First client is Air Namibia, which has been represented by the company since 1999 in the German market.
SkyTeam partners Delta Air Lines, Air France, Alitalia, CSA Czech Airlines, KLM and Northwest Airlines filed a response to comments on their application for antitrust immunity with the US Dept. of Transportation. "The only comments filed opposing the application were filed by American Airlines, based on its claim that the DOT's decade-long policy approving immunized alliances and seeking to open aviation markets and improve international air services through Open Skies Treaties has been a mistake," Delta Senior VP-Government Affairs Scott Yohe said.
Farelogix Inc., a provider of independent faring and multisource distribution technology to the global travel industry, and Miami-based travel technology vendor PASS Consulting said they plan to market and distribute the PASS Virtual Travel Organizer travel agency point-of-sale application as a preferred POS integrated with the Farelogix FLX Platform.
The Aircraft Mechanics Fraternal Assn yesterday reversed itself and asked the National Mediation Board to release the union from contract talks with Northwest Airlines, citing the carrier's refusal to "take contract negotiations seriously." In May, the union successfully blocked a similar request by Northwest. If NMB grants AMFA's request, it then will offer to arbitrate a settlement. Should either party reject this, the Board will declare an impasse, initiating a 30-day cooling-off period after which the airline can impose a contract and the union may strike.
AEA Secretary General Ulrich Schulte-Strathaus warned that the high fuel costs currently in place will fundamentally affect the airline industry and said a proposed development tax will only worsen the situation. "Whether by introducing a supplement to the fare, clearly signaled to the passenger as fuel-related, or by adjusting the pricing model to reduce the number of seats sold at the lowest fares, revenue-boosting measures will be starting to affect passenger behavior, introducing another note of instability into our business," said Schulte-Strathaus.
Alaska Airlines appears to have switched suppliers for an order for up to seven 737-400 passenger-to-freighter and passenger-to-Combi conversions. A year ago, the carrier announced it had selected a team comprising InterContinental Aviation Services of Taiwan, the Flight Structures Inc. unit of B/E Aerospace and Boeing to perform the conversions on five of its 737-400s in a deal valued at $15 million ( ATWOnline, July 16, 2004). Yesterday, however, Pemco Aviation Group said it would perform conversions on five Alaska 737-400s, with options on two additional aircraft.
Spanair and airBaltic announced a marketing agreement whereby Spanair, a member of SAS Group, will place its code on three weekly flights operated by airBaltic between Riga and Barcelona while airBaltic, 47% owned by SAS, will place its code on Spanair flights from Barcelona to Spanish destinations including Madrid, Ibiza, Mahon, Bilbao, Oviedo and Palma de Mallorca.
The European Commission yesterday conditionally cleared the proposed acquisition of Swiss International Air Lines by Lufthansa after the carriers committed to surrender slots for up to 41 roundtrips per day to new entrants at Zurich, Frankfurt, Munich, Dusseldorf, Berlin, Vienna, Stockholm and Copenhagen.
Finnair Technical Services and Gemini Air Cargo signed a maintenance support contract covering component and APU maintenance on Gemini's four MD-11Fs and seven DC-10-30Fs. The contract is valued at in excess of €8 million ($9.5 million) per year. The contract for the DC-10s covers five years and the MD-11s seven years. The previous service provider was Alitalia.
Air France will raise its fuel surcharge by €1 ($1.19) per sector on domestic flights, €2 on medium-haul flights and €4 on long-haul fights from July 19. KLM also plans to increase its fuel surcharge by €14 ($16.66) per segment on all long-haul flights on the same day.
