United Airlines flew 8.33 billion system RPMs in September, down 9.2% year-over-year. Capacity fell 8.6% to 10.46 billion ASMs, lowering load factor 0.5 point to 79.7%. Lufthansa Group airlines flew 13.73 billion RPKs in September, up 5.8% from the year-ago month. Capacity rose 8.3% to 17.15 billion ASKs and load factor fell 1.9 points to 80.1%. Ukraine International Airlines transported 168,000 passengers in September, up 5% year-over-year. Load factor rose 7.4 points to 76.1%.
Allegiant Air parent Allegiant Travel Co. reported a $4.9 million third-quarter profit, down 30.3% from $7 million in earnings during the year-ago period, citing "aggressive capacity management" as the principal reason for its continued profitability.
Air France KLM Chairman and CEO Jean-Cyril Spinetta "evoked the possibility of zero growth in capacity for the company in 2009 and 2010" while meeting with trade unions this week, an AF KLM spokesperson told Reuters. Regarding reports that the company was looking to trim jobs, the spokesperson said it "remained determined to keep jobs whenever possible." AF KLM projected a 2% year-over-year capacity increase for both the upcoming winter schedule and summer 2009, according to press reports, but dropped the winter guidance to 1.7% last month.
Iberia raised its stake in British Airways to 9.07%, or 104.6 million shares, the UK carrier said yesterday. Increase comes one week after IB had upped its holding to 8.07%.
American Eagle pilots represented by the Air Line Pilots Assn. ratified an "unprecedented" 16-year contract. According to unit chairman Herb Mark, the contract, which becomes amendable at the end of 2012, "increases quality of life wherever possible but includes no concessions."
New alliance created and controlled by the state and Russian Technologies to replace AiRUnion will comprise 10 regional airlines, be registered as a public corporation and eventually be called something other than Russia Airlines (a working name), RT head Sergei Chemezov told journalists, The Moscow Times reported. Moscow Vnukovo will be the carrier's principal base, with the Moscow city government holding the remaining 49% of the new company ( ATWOnline, Oct. 22). It also will have bases in St.
Gol and Varig parent Gol Linhas Aereas Inteligentes said losses on its fuel hedges and gains on currency hedges would result in a BRL48 million ($22.1 million) charge against its third-quarter results, which it is scheduled to report Oct. 27. It expects to report an operating margin of -1% to 1%.
Indian Ministry of Civil Aviation announced yesterday that airlines will have until March 31 to pay their present outstanding fuel bills to the Ministry of Petroleum and Natural Gas and, in addition, will be able to procure their fuel on credit until that date ( ATWOnline, Oct. 20).
Boeing's third-quarter net income plunged 38% to $695 million from $1.11 billion last year, and Chairman, President and CEO Jim McNerney conceded that the machinists' strike "had a major impact" on earnings.
Austrian Airlines Group's privatization continued to be in doubt yesterday as reports that Lufthansa presented the only offer for state holding company OIAG's 42.75% stake went unconfirmed by both AAG and LH. Austrian has said it will make an announcement Monday. A Federal Ministry for Transport, Innovation and Technology spokesperson said on Austrian radio that there is one potential bidder, while other reports suggest LH, S7 Airlines and even Air France KLM want more time or further talks before presenting a bid.
IATA DG and CEO Giovanni Bisignani warned Middle East and North African carriers that they are not immune to the current industry crisis and urged them to focus on efficiency and expanding commercial freedoms.
Mokulele Airlines was flying again yesterday, one day after shutting down following a US FAA inspection that revealed cabin crews were not properly trained on the use of life preservers and fire extinguishers. "They grounded all the planes and conducted intensive training for all of their staff," an FAA spokesperson told ATWOnline. Mokulele recently signed an agreement with Republic Airways to operate up to four E-170s for inter-island service in Hawaii. It currently operates 56 daily flights to seven Hawaiian destinations.
Vueling Airlines reported an €18.7 million ($24.8 million) operating loss through the first nine months of 2008, reduced from a €38.4 million negative EBIT in the year-ago period, Reuters reported. Sales rose 32.2% year-over-year to €354.4 million and passenger numbers were up 2.1% to 4.7 million.
US Dept. of Homeland Security released the Secure Flight Final Rule, "which shifts pre-departure [terrorist] watch list matching responsibilities from individual aircraft operators to TSA."
SkyWest Airlines and Atlantic Southeast Airlines parent SkyWest Inc. said it expects third-quarter net income "to be lower than previously anticipated" and fall between $24.2 million and $26.5 million. It posted a $42.9 million profit in the third quarter of 2007. SkyWest said the lowered forecast was the result of the elimination of nine aircraft from ASA's agreement with Midwest Airlines and a larger-than-expected reduction in block hr. scheduled by partners of both subsidiaries.
Gulf Air secured a $25 million unsecured loan from BMI Bank, which it said will be "infused into the working capital of the company" and used for financing "various development plans."
SpiceJet named former Flight Options COO and Chief Strategy Officer Sanjay Aggarwal as CEO, effective immediately. Flight Options is a private aviation provider based in Cleveland. Aggarwal previously was manager-financial planning at US Airways. SpiceJet operates 15 737NGs to 16 Indian destinations USA3000 Airlines named IndiGo COO Steven Harfst as its new president and CEO, succeeding the retiring Angus Kinnear. Before joining IndiGo, Harfst was North American Airlines COO. USA3000 operates 11 A320s to 13 destinations.
Goodrich inked a deal with US Airways to refurbish half its CFM56-5B thrust reversers and provide initial exchange units to facilitate a maintenance program. Contract will run through 2012 under the Goodrich Aerostructures Prime Solutions program. Work will take place in Foley, Ala.
United Airlines parent UAL Corp. promoted Senior VP-Marketing Dennis Cary to senior VP and chief marketing and customer officer. In addition, it named Chief Customer Officer Graham Atkinson as president of UA's Mileage Plus loyalty program.
Spirit AeroSystems will supply Continental Airlines with structural parts and components for its Boeing fleet under a multiyear deal announced yesterday. Contract covers 370 737, 757, 767 and 777 aircraft.
Copa Airlines flew 472.5 million RPMs in September, up 16% year-over-year, against an 11.1% rise in ASMs to 624.1 million. Load factor jumped 3.2 points to 75.7%. Frontier Airlines' September mainline yield rose 8.3% year-over-year to 10.6 cents while RASM climbed 15.1% to 8.78 cents. It flew 711.9 million RPMs during the month, down 8.3%, against a 13.7% fall in capacity to 859.9 million ASMs. Load factor rose 4.9 points to 82.8%.
SkyEurope Airlines "did not fulfill its payment plan" with Austrian Airlines Group and no longer will have its 737-700s serviced by Austrian Technik, AAG CEO Alfred Oetsch told Vienna's Die Presse. In addition, several SkyEurope aircraft were not refueled at VIE last week owing to unpaid fuel bills. US investor York Global Finance, which holds 29.9% of the LCC, plans to lead a consortium that intends to take a complete or majority stake ( ATWOnline, Oct. 17). It hopes to finalize the deal at a board meeting scheduled for Nov. 10.
Austria's Niki expects to report a profit in 2008, President Niki Lauda told ATWOnline. The carrier posted a $3.5 million profit in 2007. It will take delivery of a second A321 next May and lease an A320 from new partner Air Berlin for six months beginning next April ( ATWOnline, Oct. 17). Two E-190s are expected to arrive at around the same time, lifting Niki's fleet to 13 aircraft.
American Airlines' order for up to 100 787s for delivery between 2012 and 2020, announced last week ( ATWOnline, Oct. 16), begins to answer questions about the program's potential production ramp-up.
Rockwell Collins announced plans to acquire SEOS, a visual display provider for full-flight simulators. Headquartered in West Sussex with 150 employees, the company will assume RC's name and join its Simulation and Training Solutions organization. Deal is expected to be finalized in 30 days. Financial terms were not disclosed.
