Asiana Airlines will invest KRW23 billion ($24.3 million) in startup Busan International Air and become the managing shareholder of the new carrier with a 46% stake, it announced yesterday. Now capitalized to the tune of KRW50 billion, BIA will "focus on offering customers low fares but with the quality service and safety assurance that is synonymous with Asiana Airlines," the latter said. An Asiana "taskforce" will begin working on launching service. No further details were released.
SAS Group became the principal shareholder in GO, a Norwegian company launched last May that sells travel through the SAS, Avis Budget Group and gonow.no websites. SAS bought out Reitan Group, which will maintain its distribution agreement with GO.
Massachusetts Port Authority announced a new financial incentive package called the International Air Service Incentive Program designed to help Boston Logan "compete more aggressively for international airline service." It will apply to new nonstop international flights to Asia, Central America, South America, Africa, the Middle East and Mexico City and is intended to "minimize the initial business risk of the air carrier." Massport said ASIP "is not designed to subsidize a service that is not likely to be self-sufficient." BOS currently offers flights to 32 international destinations.
Mesa Air Group, which provides regional lift for Delta Air Lines, United Airlines and US Airways and operates independently as Mesa Airlines and go!, reported a $4.2 million loss in the fiscal first quarter ended Dec. 31, reversed from an $8 million profit in the year-ago period. "We are certainly disappointed with the results," Chairman and CEO Jonathan Ornstein said. "We are confident in our plans, however, to shrink our less-profitable 50-seat fleet and grow with our larger, more profitable regional jets.
Belavia Belarusian Airlines CRJ100ER flipped over and caught fire at Yerevan Zvartnots International yesterday. There were no fatalities but at least four passengers were hospitalized with burns. The BBC and Associated Press reported that Armenian civil aviation head Artyom Movsesyan said the aircraft's wing touched the ground on takeoff, causing it to flip over and burn. "Nearly everyone onboard received burns of various degrees," an aviation authority spokesperson said, according to several press reports.
AirAsia X yesterday confirmed the sale of 10% stakes to Bahrain-based Manara Consortium and Japan's Orix Corp. for a combined MYR250 million ($77.2 million) cash consideration ( ATWOnline, Feb. 14). Each investor will receive approximately 16.7 million newly issued shares of common stock. Orix also holds a stake in Japanese LCC Skymark Airlines.
IER said Billund Airport contracted it to install 12 of its 918 common-use self-service kiosks, four of which will be equipped with an active eyecatcher to display airport information. Billund also chose IER's IMS to supervise kiosk operations independently. Kiosks are slated to be operational next month.
AirAsia X will sell 10% stakes to private equity funds in Japan (Orix Group) and Bahrain (Perigon Capital) for a combined $75 million, an official told Agence France Press, in order to raise money for the purchase of 25 A330-300s. Virgin Group acquired a 20% stake in the startup last summer ( ATWOnline, Aug. 13, 2007). The AirAsia X official was quoted by AFP but declined to be named.
Ryanair will take its Internet and call center booking system offline from 10 p.m. Feb. 22 until 11 p.m. Feb. 25. The LCC said the move is necessary to "change over to a new flight booking system," which it is doing in order to comply with a UK Office of Fair Trading mandate that requires all taxes and fees to be included in an advertised ticket price. The carrier reportedly missed a Jan. 31 deadline and received an extension to the end of February.
Curtiss-Wright Controls reached a $16 million multiyear deal with Saab Aerostructures to provide the large cargo door mechanical system for the 787. Features include flight-critical subassemblies such as the lift, pull-in, latching, locking and vent systems. Production will take place at CWC's facility in Shelby, N.C.
Emirates Trading Agency-Assoc. Construction confirmed plans to launch a regional airline in India in October under a joint venture agreement with an unidentified partner, the Arab Air Carriers Organization reported. The new airline will base in Chennai and/or Bangalore and will fly to southern destinations. ETA-AC reportedly is negotiating with Embraer, Bombardier and ATR for aircraft.
The US House of Representatives passed an extension of temporary FAA funding through June 30, including providing $2.76 billion in contract authority to restart the currently suspended Airport Improvement Program.
Air France KLM's negotiations with Alitalia received a slight boost this week when Renato Brunetta, an official with the Forza Italia party that has been an opponent of the sale, told reporters that while FI believes the government succeeding that of outgoing Prime Minister Romano Prodi should conclude the deal, if one is struck between AF KLM and AZ in the meantime FI "would respect it." FI reportedly is leading opinion polls ahead of the April elections ( ATWOnline, Feb. 7).
Iberia flew 4.35 billion RPKs in January, up 1% from the year-ago month. Capacity climbed 1.4% to 5.63 billion ASKs, lowering load factor 0.3 point to 77.3%.
UK Home Secretary Jacqui Smith told reporters yesterday in Washington that the US is asking EU members to enhance security measures on westbound transatlantic flights in exchange for relaxed visa regulations. An MOU reportedly was sent to the 27 EU member states asking them to allow US air marshals on all flights operated by US carriers, The Guardian reported. Currently, seven countries allow US marshals to board flights at their point of origin.
DHL Express said it will reduce its workforce in the US by 600 employees, part of an ongoing effort by the German delivery giant to cut costs in its money-losing US business. The reduction will be achieved through layoffs, attrition and the suspension of some existing open positions. "This action is one of several measures we are taking to improve our competitive position in the US market, which is strategic to our global growth plan," DHL Express USA CEO Hans Hickler said. "These changes will help us better align our cost structure."
Iberia won three contracts with Iberworld for aircraft maintenance and logistical support services to be conducted at its shops in Madrid. Slated to begin this month and continue to December 2009, the first contract covers inspections and maintenance as well as disassembly and assembly of 10 CFM56-5Bs powering A320s. The second calls for Iberia Maintenance to service Iberworld aircraft components. The third contract entails complete maintenance of Iberworld's Airbus aircraft including overhauls, structural and interior inspections and modifications.
Air Malta signed a three-year labor agreement with the Air Line Pilots Assn.-Malta retroactive to Aug. 1, 2007. Air Malta said pay increases are weighted toward the end of the contract "in line with the airline's requirement to continue its financial recovery."
S7 Airlines said it increased full-year turnover 24% in 2007 to more than RUB30 billion ($1.2 billion) as passenger numbers climbed 16% to 5.7 million. The Russian airline reported a net profit of RUB61 million in 2006, down 44.5% from the previous year, but did not divulge its net result for 2007. It did say EBITDA "reached" RUB2.8 billion but did not provide a year-ago comparison. It said the results were based on "preliminary data."
Aeroflot, which celebrated its 85th birthday on Feb. 9, said it carried more than 8 million passengers last year, which represented a 12% increase over 2006. It said it is targeting 9.5 million in 2008 and that it expects to grow domestic passengers by 35.6%. Lufthansa Group airlines flew 11.56 billion RPKs in January, up 30.3% from the year-ago month. Capacity rose 29.4% to 15.12 billion ASKs and load factor was up 0.5 point to 76.5%. The LH mainline flew 9.5 billion RPKs, up 7%, against a 5.6% increase in ASKs to 12.34 billion, lifting load factor 0.9 point to 76.9%.
Etihad Crystal Cargo introduced SMS tracking, which allows customers to send a text message to a specified phone number to get a "real-time" status update on shipments. "It is vital for our customers to know at any time exactly where in the world their shipment is located," Etihad Airways Executive VP-Cargo Des Vertannes said. He added that the tracking service, supplied by UAE-based Ontrack Systems, costs users the same price as a standard text message and is linked to the carrier's IT platform.
Continental Airlines said it will distribute $158 million in profit-sharing payments to employees on Feb. 14. It paid $111 million to employees last year. It said its profit-sharing plan shares 30% of the first $250 million in pre-tax income, 25% of the next $250 million and 20% of amounts over $500 million. It claimed its 2007 profit-sharing payout was tied for the highest among the six US legacy carriers.
Astar Air Cargo and the Air Line Pilots Assn. reached a tentative agreement on a new four-year labor contract. The parties have been negotiating since January 2005. Astar pilots' pay will increase more than 20% over the course of the contract. "In addition, the pilots will receive furlough protections and a commitment by the company to secure new aircraft," ALPA said, adding that an undisclosed amount of "retro compensation" will be paid out to pilots. The contract is subject to ratification by the pilots.
SAS Group nomination committee will propose Fritz Schur as chairman at the company's annual general meeting scheduled for April 9. Egil Myklebust plans to step down, SAS said. Schur has sat on the SAS board since 2001.
