Australian domestic market is heading for intense price competition as Singapore-based Tiger Airways announced more domestic routes and fares for its Australian launch in late November ( ATWOnline, June 29). Tiger's latest route announcement is Melbourne-Launceston with fares starting at A$39.99 ($34.87). Its Australian operation will be based in Melbourne and destinations include Perth, Mackay, Rockhampton, Alice Springs and Darwin.
Four US legacy carriers that announced Monday their intention to compete for the right to operate new routes to China ( ATWOnline, July 17) have been joined by American Airlines, United Airlines and a surprise entrant--all-business-class carrier MAXjet Airways. AA proposed to add a daily Chicago O'Hare-Beijing flight to its daily ORD-Shanghai service beginning March 25, 2009.
Air Canada and Air Canada Jazz flew a combined 4.5 billion RPMs in June, up 2% on the year-ago month. Capacity climbed 1.8% to 5.43 billion ASMs and load factor rose 0.2 point to 82.8%. Singapore Airlines flew 7.51 billion RPKs in June, up 1.7% from the year-ago month, against a 1.4% decline in capacity to 9.11 billion ASKs. Load factor climbed 2.5 points to 82.4%.
Magellan Group and Mercury Aviation Partners signed an MOU to create M&M Services, a 50/50 joint venture LLC that will build an operating lease portfolio of "mature aircraft subject to lease with part-out being the long-term goal for each aircraft." M&M said it plans to acquire up to $100 million worth of aircraft such as 737 Classics, 757s, 767s, A320s, ATR 42/72s, Dash 8s and Brasilias.
Chinese carriers posted a collective profit of CNY900 million ($118.7 million) in the first four months of 2007, reversed from a net loss of CNY4 billion in the year-ago period, according to CAAC statistics. CAAC cited an "effective cost-saving" policy as the main reason for the improved performance.
United Airlines yesterday said it will accept applications for approximately 100 new pilot positions expected to be filled this year--the first such additions since 2001. "We're investing in our business, and our expansion in international markets enables us to add to our team," VP-Flight Operations Hank Krakowski said. New hires will begin training at UA's Denver training center as early as October and are scheduled to be flying by year end, the airline said.
Virgin Blue announced the A$61 million ($53.1 million) purchase of a "campus-style" development in Brisbane to serve as its new national headquarters. The development is scheduled to be completed next March.
News from Travel Technology Update: Seven European rail companies and their high-speed subsidiaries plan to link their reservations system and create a new "seamless" network that will compete with air and road travel over international borders.
Astar Air Cargo Chairman. President and CEO John Dasburg yesterday said that ABX Air has not yet responded to Astar's "indication of interest" in acquiring its fellow DHL subservice carrier for $450 million in cash and set a deadline of the close of business July 18 for a response.
Etihad Airways and Abu Dhabi Commercial Bank signed a $180 million sale and leaseback facility that will finance the acquisition of two A330-200s, the Arab Air Carriers Organization reported. The facility is structured as a lease with repayment spread over 12 years and a terminal balloon payment of 30% upon final maturity. Ethiopian Airlines leased two 235-seat 767-300ERs from Deutsche Structured Finance. Lease agreement is for six years effective May 31. The aircraft joined the fleet on June 1 and July 7.
Alaska Airlines flew 1.72 billion RPMs in June, a 4.9% increase from the year-ago month. Capacity was up 5.2% to 2.12 billion ASMs and load factor down 0.2 point to 81.3%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.63 billion RPMs in June, up 14.5% on the year-ago month, against a 15.9% climb in ASMs to 1.99 billion. Load factor slipped 1 point to 81.7%.
Pakistan International Airlines reported a PKR3.95 billion ($65.4 million) loss in the first quarter, widened from a PKR3.08 billion loss in the first three months of 2006. Revenue climbed 5% to PKR17.68 billion against a 6.5% increase in costs to PKR20.18 billion.
SITA signed an agreement with the Saudi Arabian General Authority of Civil Aviation to automate passenger and baggage processing for foreign airlines' departing passengers at Jeddah, Riyadh, Dammam and Medina airports. SITA valued the five-year program, including installation of departure control, passenger check-in and baggage management systems, at $16.8 million.
Skyways Aviation, working on behalf of Sky Wings Airlines of Greece, placed an MD-82 on ACMI lease with Air Moldova. Aircraft was delivered May 15 and is operating on a five-month contract.
The EU on Friday released a copy of the draft agreement with the US covering the transfer of passenger name record data that was reached late last month. The accord, which has yet to be signed and which replaces a temporary deal set to expire July 31, calls for the US Dept. of Homeland Security to transition to a "push system," through which airlines operating flights from the EU will provide 19 types of PNR data from their reservations systems, no later than Jan. 1, 2008.
Air Madagascar is expecting a year-over-year passenger increase of least 10% in 2007, CEO Ulrich Link told ATWOnline. "About one-third of our total of 600,000 passengers comes from international routes," Link said, adding that the carrier achieves load factors of up to 95% on some international services. For example, he said it enjoyed a "perfect" start on its new weekly Antananarivo-Marseille service. MD is looking to expand on that success with increased strategic cooperations and is contemplating joining SkyTeam as an affiliate.
British Airways flew 10.08 billion RPKs in June, down 1.4% from the year-ago month, as capacity rose 0.4% to 12.51 billion ASKs and load factor slipped 1.4 points to 80.5%. Midwest Airlines and Midwest Connect flew a combined 447.4 million RPMs in June, up 18.4% from the year-ago month. Capacity climbed 15.4% to 518.3 million ASMs and load factor was up 2.2 points to 86.3%. Yield fell an estimated 5.4% year-over-year to 14.2 cents and unit revenues dropped an estimated 2.9% to 12.2 cents.
KLM last week signed an agreement with Wereld Natuur Fonds (the Dutch branch of the World Wildlife Fund) to "achieve CO2-neutral growth in comparison with 2007" by offsetting approximately 4 million tons of carbon dioxide emissions in the next four years through "emission reduction and compensation."
Iberia said it signed a labor agreement covering approximately 18,000 ground staff represented by the CC.OO, UGT and ASETMA unions. The deal is valid for 2007 and stipulates a 2% wage increase, with an additional increase if needed to offset real inflation. It also calls for changes in 1,177 contracts, including new permanent status for 745 employees, and new productivity standards in IB's Maintenance and Engineering Division.
France's Conseil d'Etat last week ruled that easyJet and Ryanair each must apply French labor laws for staff operating in the country. Both LCCs had appealed against last year's decree that obliged foreign airlines to apply domestic labor laws to aircraft crews based in France. Ryanair argued that the decree contravened European laws on free movement of labor and services, freedom of establishment and the liberalized air transport market.
Eurocontrol appointed David McMillan as its next DG. Currently DG of civil aviation at the UK Dept. for Transport, McMillan will succeed Victor Aguado, whose seven-year term ends Jan. 1.
Shanghai SR Aircraft Technics, the joint venture between SR Technics and Shanghai Foreign Aviation Service Corp., signed a contract to provide line maintenance services for Singapore Airlines 777s and 747s during their transit stops at Shanghai Pudong. Services commenced on July 1. Additionally, it will provide line maintenance services for SIA's 747F cargo operations at the airport.
Air France and Aeroports de Paris have begun the progressive opening of AF's new boarding facility at Charles de Gaulle, which is scheduled to be fully operational by year end with annual capacity of 8.5 million passengers. Planned for next year is the April reopening of CDG's Terminal 2E and the fall inauguration of a regional terminal. A second boarding facility is slated to be built by 2012. Separately, AF unveiled its new Tokyo Narita lounge, which is 400 sq. m. and has seating capacity for 140 passengers.
