Singapore Airlines flew 7.82 billion RPKs in March, a 9.8% increase over the year-ago month. Capacity climbed just 0.9% to 9.49 billion ASKs, lifting load factor 6.6 points to 82.4%.
Mesa Air Group Chairman and CEO Jonathan Ornstein said hiring enough employees to keep pace with growth, much of which is within his own company, will be one of the most significant challenges facing regional airlines this year.
Jet Airways, whose agreement last week to acquire Air Sahara will give it control of about half of India's domestic market ( ATWOnline, April 13), yesterday unveiled major re-branding initiatives for both carriers, including a fleet expansion to support Jet's international services that eventually will incorporate an order for 10 787s valued at $1.6 billion.
Northwest Airlines flight attendants, represented by the Assn. of Flight Attendants-CWA, suffered what the union called a "shocking and swiping blow" last Friday when a US Bankruptcy Court judge upheld a Circuit Court ruling that the airline had a right to reject its collective bargaining agreement with cabin staff despite its economic recovery, as well as NWA's effort to deny AFA's two proofs of claim worth $1.2 billion. The former "has no basis in law," Judge Allan Gropper wrote, and the claim is invalid as NWA's abrogation of the CBA was lawful.
Sun Country Airlines named Champion Air President and CEO Stephen Spellman as its new CFO and COO. Flybe named Group Finance Director Andrew Knuckey as CFO, replacing Chris Simpson.
Airline Partners Australia's plan to pay itself approximately A$4 billion ($3.33 billion) in the first year following its proposed takeover of Qantas ( ATWOnline, April 13) has thrust the deal back into the headlines, with the move being slammed by politicians, unions and pundits. Outspoken Sen. Barnaby Joyce (National-Queensland) led the political charge, telling The Sydney Morning Herald that APA is "not playing with their money.
Astronics of New York announced $17 million in orders and options for its Empower in-seat power supply system from three unidentified US carriers (worth a combined $6 million), one unidentified Asian airline ($9 million) and one Middle East airline ($2 million). All installations will be on Boeing aircraft.
Grand China Air, the company established in 2004 combining HNA Group's Hainan Airlines, Xinhua Airlines, Changan Airlines and Shanxi Airlines ( ATWOnline, Oct. 18, 2005), received its operating license from CAAC, the Centre for Asia Pacific Aviation said. The way now is paved for Grand China to complete a listing in Hong Kong, possibly as early as the second half of this year. CAPA Executive Chairman Peter Harbison said the listing could raise up to $500 million.
Lufthansa Technik said it will become the first international MRO provider to establish an Indian base when it opens a 20,000-sq.-m. facility outside Hyderabad at the end of next year.
Delta Air Lines pilots, represented by the Air Line Pilots Assn., opted to cash in most of their $2.1 billion unsecured claim against the carrier, with members accounting for 92% of the claim voting to take 60.05 cents on the dollar rather than stock in the reorganized airline. A total of $1.16 billion will be distributed to those pilots "shortly after" DL emerges from bankruptcy this quarter, MEC Chairman Lee Moak wrote in a letter last week.
ANA Group announced the sale of its 14 hotel subsidiary companies, including 13 hotels, to YK Shiroyama Properties, a fund managed by Morgan Stanley, for ¥281.3 billion ($2.36 billion). The company had revealed its intention last December to dispose of the hotels ( ATWOnline, Dec. 13, 2006).
Fraport and Turkey's IC Holding combined to pay €2.37 billion ($3.19 billion) for the concession to run all three passenger terminals at Antalya Airport until 2024. The pair will operate the domestic terminal and one of the Fraport-operated international terminals from mid-September, then take over the IC-operated international terminal in September 2009. AYT reported passenger throughput of 14.8 million in 2006.
Iberia has yet to open its books to Texas Pacific Group and wants more information on the US firm's partners in its €3.4 billion ($4.58 billion) bid for the airline, specifically if there are any Spanish companies or airlines involved, an IB spokesperson said last Thursday, according to Reuters ( ATWOnline, April 11). A non-EU interest currently cannot acquire more than 49% of an EU airline ( ATWOnline, April 2).
GE's first-quarter financial results revealed strong performances from the company's aviation units. GE Aviation enjoyed a 17% year-over-year rise in net earnings to $755 million on a 16% increase in revenue to $3.51 billion. It was the most profitable segment in GE's Infrastructure division. GE Aviation Financial Services' profit jumped 88% to $338 million on a 34% climb in revenue to $1.25 billion. The overall company's three-month profit grew 8% to $4.51 billion.
US Transportation Secretary Mary Peters said last week during a Chinese tour that the US is seeking an "open skies" agreement with the world's most populous nation similar to the recently agreed US-EU accord and hopes to have "the basic framework" for a deal in place next month.
Hawaiian Airlines flew 679 million scheduled-service RPMs in March, a 22.1% increase from the year-ago month. Capacity climbed 17.2% to 745.4 million ASMs, lifting load factor 3.6 points to 91.1%. SkyWest Airlines and Atlantic Southeast Airlines flew a combined 1.53 billion RPMs in March, up 10.9% on the year-ago month. Capacity rose 13% to 1.91 billion ASMs and load factor fell 1.6 points to 79.8%.
GKN Aerospace, already a significant presence in the OEM market, announced its intention to triple its aftermarket MRO operation by 2012. Its current maintenance business accounts for approximately 15% of its $1.5 billion in annual sales. It said its strategy focuses on "extending partnerships with the major primes to create effective, long-term support agreements which license the GKN Aerospace team to deal directly with airlines and aircraft on the prime's behalf." Some agreements already are in place.
N3 Engine Overhaul Services, the Lufthansa Technik/Rolls-Royce joint venture, received EASA approval yesterday to perform maintenance on Trent 500s. It expects approval this summer to perform maintenance on Trent 700 and 900 engines, the latter of which will power A380s.
Lufthansa flew 9.59 billion RPKs in March, up 9.6% on the year-ago month. Capacity rose 3.9% to 12.23 billion ASKs and load factor increased 4 points to 77.1%. Cathay Pacific Airways and Dragonair flew 6.78 billion RPKs in March, up 6.5% from the year-ago month, against a 1.5% lift in capacity to 8.5 billion ASKs. Load factor rose 3.7 points to 79.7%. Germanwings flew 602,602 passengers in March, up 7.4% on the year-ago month. Load factor rose 0.9 point to 83.3%.
Alitalia's new owner will have to spend €3 billion ($4.03 billion) in order to revive the foundering airline, Italian Transport Minister Alessandro Bianchi said in a television interview cited by widespread press reports. Half that total would be required to buy AZ and the other half to get it running, he said.
Yemenia Yemen Airways is establishing an independent MRO business unit and has selected Lufthansa Consulting as a strategic adviser for the project, the Arab Air Carriers Organization revealed. The process is expected to be completed within six months.
Advocates for "Passenger Bill of Rights" legislation in the US said this week they have organized a large and growing group of supporters and are getting positive feedback from members of Congress as they push for passage of legislation that would regulate airline operations during ground delays.
Societe de Promotion d'une Compagnie Aerienne Regionale is the name of a new consortium of West African banks and private investors that intends to fund and launch a multinational airline by December. The carrier, which has yet to be named, will be a replacement for defunct Air Afrique and will operate flights from West and Central Africa to Europe, the US and East Asia as well as intra-continental services. SPCAR is headed by Ecobank Chairman and former Togolese government minister Gervais Djondo. It said it conducted a feasibility study with Alan Stratford and Assoc.
