To truly transform our economy, protect our security and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution . . ."
The airline industry and President Barack Obama's administration scrambled yesterday to allay public fears raised by Vice President Joe Biden's comments about a link between swine flu and commercial air travel on NBC's Today show.
Embraer posted a first-quarter net loss of $23.4 million, reversed from an $85 million profit in the year-ago period, as commercial aircraft deliveries dropped 15.8% to 32. Commercial aircraft sales slid 6.4% to $870.4 million and the Brazilian manufacturer conceded that it had incurred an undisclosed number of "deferrals of deliveries scheduled for the commercial aviation segment." It revised down its delivery guidance for all aircraft in 2009 to 242 from 270 previously, with 115 commercial aircraft to be delivered.
Australian Competition and Consumer Commission announced it has instituted proceedings in federal court against Cathay Pacific Airways "for alleged price-fixing of air freight." CX is the eighth airline targeted by Australian authorities ( ATWOnline, Feb.
LIAT said Brian Challenger will serve as interim CEO, succeeding the departing Mark Darby, while a permanent replacement is sought. Challenger joined the board in 2006.
Qantas suffered one of its worst-ever collapses in yield on international flights in March, according to a Centre for Asia Pacific Aviation analysis. QF's international yield plunged 11% year-over-year in March following a 2.4% fall in February. CAPA said yesterday that March domestic yield dropped 10.1% after falling 9.7% the prior month. March international passenger numbers were down 15.8% and domestic numbers declined 2.6% to 1.4 million. Low-cost subsidiary Jetstar Airways saw international passengers rise 36.3% to 186,000 and domestic increase 1.8% to 686,000.
Frontier Airlines and Lynx Aviation parent Frontier Airlines Holdings, which is operating under bankruptcy protection, reported a $161 million net loss in the quarter ended March 31 and an $18.9 million profit excluding reorganization expenses. Year-ago figures were not provided. Consolidating operating profit was $20.7 million. At the Frontier mainline, unit revenue fell 3.4% to 9.5 cents and unit cost was down 19.8% to 8.32 cents, or down 7.3% to 6.08 cents excluding fuel. Capacity was cut 20.3% year-over-year.
IATA reported that industrywide international RPKs fell 11.1% in March on a 4.4% year-over-year decline in capacity, resulting in a 5.4-point drop in load factor to 72.1%. "Airlines cannot adjust capacity to match demand," DG and CEO Giovanni Bisignani said, warning that monthly revenue may fall as much as 20%.
AirAsia carried 3.1 million passengers in the first quarter, up 21% year-over-year, according to figures published by the Centre for Asia Pacific Aviation. Traffic measured in RPKs rose 17% against a 19% increase in capacity, lowering load factor 2.4 points to 69.7%. SAS Group airlines flew 2.08 billion RPKs in March, down 16.9% from the year-ago month. Capacity fell 3.9% to 3.22 billion ASKs, lowering load factor 10.2 points to 64.5%. At SAS Scandinavian Airlines, yield climbed 2.6% year-over-year as RPKs dropped 17.9% to 1.92 billion.
Garuda Indonesia reported a IDR669 billion ($61.3 million) profit in 2008, a massive increase from the IDR60 billion earned in 2007, the Antara national news agency reported.
CAE signed a technical training and courseware agreement with Jazz Air under which the regional will license maintenance training programs to CAE, expanding the company's commercial type training program portfolio.
US Dept. of Justice announced yesterday that Frank de Jong, formerly Martinair's VP-European cargo sales, has agreed to serve eight months in prison and pay a criminal fine of $20,000 for his role in a conspiracy to fix international cargo rates. He is the fourth airline executive to be sentenced to jail in the wide-ranging investigation that has ensnared 15 carriers around the world.
Thales announced that its microwave landing system received UK approval for ground installations for Cat IIIb operations at London Heathrow. Thales received European certification for its onboard aircraft installations to Cat IIIb in November 2007. British Airways is the first airline to implement the system, using it on its LHR-based Airbus single-aisle fleet throughout 2008. The system became fully operational on March 25.
Government health organizations yesterday used stronger language to caution against travel to Mexico, with US Centers for Disease Control Acting Director Richard Besser saying that "people should avoid nonessential travel to Mexico as a precaution to guard against contracting the swine flu." The European Center for Disease Prevention and Control urged Europeans not to travel to Mexico unless their trips were "unavoidable and absolutely necessary." The UK government said it advises against "all but essential travel." There still were no reports of passengers canceling trips to Mexico on
JDA Aviation Technology Solutions of Bethesda, Md., entered into a partnership with UK-based EQ2 to launch an environmental management system, EQ2-EMS, designed to allow operators to analyze emissions and their impact on operating costs.
EDS announced an agreement with Continental Airlines to develop, implement and deliver enhanced EDS Flight Planning Services as a software-as-a-service model based on the EDS Airline SOA platform.
Aeroflot transported 604,600 passengers in March, a 16.5% fall from the year-ago month. Load factor was down 8.1 points to 60.7%. LAN Airlines flew 2.47 billion RPKs in March, up 7.6% from the year-ago month. Capacity increased 12.5% to 3.25 billion ASKs, reducing load factor 3.4 points to 76.1%.
Air Berlin said the German Federal Cartel Office approved Pegasus Airlines parent ESAS Holding's acquisition of approximately 15% of the voting shares in AB ( ATWOnline, March 31). It also announced the establishment next month of a Corporate Users Advisory Council that will "monitor the development of the business travel sector" and "offer a more effective and flexible response to immediate market conditions." Former German Travel Management Assn. Chairman Michael Kirnberger will head the council.
Ryanair said it will allow "price comparison only" websites to access its timetable, seat availability and fare information but will continue to ban reselling through so-called screenscraper sites. The LCC will introduce a license agreement for an annual charitable donation of €100 ($131) to the "price comparison only" websites.
Bahraini operator Rizon has started work on a new FBO and hangar facility at Doha Airport. The new facility, similar to the size of its UK headquarters at London Biggin Hill now under construction, is scheduled for opening in early 2010.
IATA said airline profitability remained weak in the first quarter as traffic and yields declined, offsetting the benefits of lower fuel prices and capacity cuts, but "pessimism about the outlook ahead. . .has softened somewhat," according to its latest Airline Business Confidence Index released yesterday. IATA's survey of airline members revealed that carriers "have on balance moved away from indicating significantly further reductions in profitability," the organization said.
