Cathay Pacific Airways flew 5.04 billion RPKs in April, up 12.3% over the year-ago period. Capacity climbed 11.8% to 6.51 billion ASKs and load factor rose 0.4 point to 77.4%. For the four months ended April 30, RPKs increased 16.4% to 20.55 billion, ASKs grew 12.6% to 26.27 billion and load factor gained 2.5 points to 78.2%.
United Airlines' International Assn. of Machinists-represented employees overwhelmingly authorized a strike if, as expected, US Bankruptcy Judge Eugene Wedoff allows the company to reject current labor contracts. The airline's flight attendants also have authorized strike action if contract changes are imposed. According to IAM, the union has the right to strike if the carrier changes the terms of the contract currently in place. However, United has claimed that strikes would be illegal.
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, more than double the $1.54 billion shed in the year-ago period. Losses were not spread evenly, however, as two airlines, Delta and United, spilled $2 out of every $3 in red ink, much of it owing to special charges related to their respective restructurings.
United Airlines' bid to terminate and replace its pension plans was approved by a US Bankruptcy Court judge late Monday. According to the Associated Press, United will save roughly $645 million a year with the move, which is part of the $2 billion in annual savings it repeatedly has said it needs to emerge from Chapter 11.
UPS plans to build five new regional freight hubs at US airports in Ontario, Calif.; Rockford, Ill.; Dallas; Philadelphia, and Columbia, S.C. When completed and brought online next year, the new facilities will support a main freight hub to be constructed in Louisville and will help form the backbone of an expansive air network for the movement of heavy freight for customers of UPS Supply Chain. The company said it anticipates spending roughly $24 million to build and equip the five centers and that initially they will create more than 200 new jobs.
Lufthansa and the UFO union representing 14,000 cabin staff reached a four-year pay deal that includes a no-layoff guarantee through Dec. 31, 2008, in return for increased flexibility and productivity, the airline said in a statement yesterday. The agreement also includes a pay freeze until the end of 2006. However, from Jan. 1, 2007, salaries will be raised by at least 2.5% but by no more than the average wage settlement in western Germany. Staff will receive an "inflationary compensation" from Jan. 1, 2008.
Hawaiian Airlines' exit from bankruptcy appears to be all but assured now that its pilots have ratified a new three-year contract. The pilots were the last of the carrier's organized workgroups to approve a new contract, a condition for the company's successful exit from Chapter 11. Trustee Joshua Gotbaum noted that "as with its other new union contracts and in contrast to those being negotiated elsewhere in the airline industry, the pilots' new contract includes pay increases, not pay cuts or overall cost cuts.
Air-India's recent order for up to 50 777s and 787s has erupted into a bitter war of words with the airline threatening to sue Airbus, which is calling for an anticorruption inquiry into the deal. According to a Times of India report, an Air-India spokesperson said the carrier is seeking its own legal recourse and has "written to the ministry of civil aviation and sought action against Airbus." The manufacturer claims that tender protocols were changed midway through to give Boeing an edge, a charge hotly denied by the airline.
Canadian government said Monday it will adopt a new rent policy for federally owned airports that "is expected to result in close to C$8 billion" ($6.5 billion) in rent relief for Canada's airport authorities over the course of their leases (60 years). The relief affects 21 Canadian facilities including all of the country's largest airports.
Air France-KLM Group flew 15 billion RPKs in April, up 4.8% over the year-ago period. Capacity climbed 5.2% to 18.94 billion ASKs and load factor declined 0.3 point to 79.2%.
Japan Airlines added the Aerosim FMS Trainer to its 737-400 pilot training program. The dual-screen trainer will be used in conjunction with simulated hardware already in use at JAL.
In a move that reflects the continuing restructuring occurring in the aviation MRO aftermarket, SAS Group yesterday announced that it is "in the process of evaluating the future structure and strategy of SAS Component," including "negotiations with an international consortium of a possible partnership or acquisition." Conclusions from the evaluation and talks are likely to be drawn before the end of June. A subsidiary of SAS Technical Services, SAS Component has teamed with EADS Sogerma in the Free 2Fly program offering airlines total component support.
Gol reported its traffic results for April. Domestically, the carrier flew 680.1 million RPKs during the month, up 56.5% over the year-ago period. Capacity increased 34.3% to 903.1 million ASKs and load factor gained 10.7 points to 75.3%. Internationally, Gol flew 37.4 million RPKs on capacity of 56 million ASKs, which produced a load factor of 66.8%.
Republic Airways Holdings wrapped up the purchase of Shuttle America for $1 million and the assumption of just under $1 million in debt ( ATWOnline, April 25). The carrier is an affiliate of Wexford Capital, the majority shareholder of Republic Holdings, parent company of Republic Airlines and Chautauqua Airlines. Shuttle America, which operates a fleet of 11 Saab 340s, will begin Embraer 170 operations in June for United Express and plans to end all turboprop flying by year end.
Northwest Airlines announced that Senior VP-Labor Relations Robert Brodin will retire at the end of the month. VP-Labor Relations Julie Hagen Showers will assume leadership for the group and will report to Mike Becker, who has been named senior VP-human resources and labor relations.
Accident investigators are hoping to gain an insight into the cause of Australia's worst air crash in 40 years after retrieving the black box recorders from the wreckage of a regional aircraft in far north Queensland. Fifteen passengers and crew were killed when the Metroliner operated by Transair on behalf of Aero-Tropics Air Services slammed into a cloud-covered mountain on a scheduled flight from Bamaga near Cape York to Cairns Saturday morning.
General Electric Chairman and CEO Jeff Immelt yesterday said the company will double its investment in researching cleaner technologies--including aircraft engines--to $1.5 billion annually by 2010 from $700 million in 2004 under "ecomagination," which the company described as an initiative "to bring to market new technologies that will help customers meet pressing environmental challenges." At a series of events in Washington announcing the program, Immelt said, "Ecomagination is about the future.
US Airways flew 3.47 billion RPMs in April, down 0.2% compared to the year-ago period. Capacity climbed 5% to 4.58 billion ASMs and load factor fell 3.9 points to 75.9%. For the four months ended April 30, RPMs jumped 4.1% to 13.12 billion, ASMs increased 2.4% to 17.76 billion and load factor gained 1.2 points to 73.9%.
ARINC was selected to provide advanced passenger check-in systems and related technologies for the $4 billion Dubai International Airport Terminal 3 project.
JetBlue Airways flew 1.63 billion RPMs in April, up 26.6% over the year-ago period. Capacity climbed 25.1% to 1.86 billion ASMs and load factor rose 1 point to 87.3%. For the four months ended April 30, RPMs increased 30.1% to 6.06 billion, ASMs jumped 23.2% to 7.03 billion and load factor gained 4.6 points to 86.2%.
Air Canada flew 3.38 billion RPMs in April, up 4.7% over the year-ago period. Capacity climbed 1.1% to 4.2 billion ASMs and load factor gained 2.8 points to 80.5%. For the four months ended April 30, RPMs rose 4.8% to 13.49 billion, ASMs decreased 1% to 17.08 billion and load factor jumped 4.3 points to 79%.
Emirates announced that Crown Prince of Dubai and UAE Minister of Defense Mohammed Bin Rashid Al Maktoum has approved the carrier's plans to construct a new five-star, Dhs800 million ($218 million) luxury hotel in Dubai. Separately, Emirates launched Congress Solutions Dubai, a professional congress organizer that will provide "comprehensive management and consultancy services to a broad range of institutions and associations with a goal of organizing large-scale meetings in Dubai."
Shepherd Systems announced that ANA, Virgin Atlantic and Qatar Airways have renewed contracts for its Market Intelligence online product suite and Galaxy processing services. Travel & Transport also renewed its agreement for Shepherd's AgentFlash service.
Ryanair said passenger numbers totaled 2.7 million in April, up 24% on the year-ago period. Load factor lost 1 point to 81%. For the rolling 12 months ended April 30, passenger numbers totaled 28.1 million and load factor averaged 84%.
WestJet flew 585.7 million RPMs in April, up 35.1% over the year-ago period. Capacity climbed 28.5% to 850.8 million ASMs and load factor gained 3.3 points to 68.8%. For the four months ended April 30, RPMs increased 40.4% to 2.52 billion, ASMs rose 30.4% to 3.48 billion and load factor jumped 5.2 points to 72.4%.
