European transport ministers, in addition to approving the EU-US open skies agreement last week, established an "equalization mechanism" or fund to ensure airlines launching new services over Siberia do not gain competitive advantage over those currently paying overflight charges. Last fall Russia agreed to phase out the charges by 2013 and said carriers starting new services before that date would be exempt ( ATWOnline, Nov. 28, 2006). The regulation will apply from Sept.
Air Canada introduced subscription flight passes in the US allowing customers unlimited air travel for a flat monthly rate for three or six months or a predetermined number of flights during a 12-month period. Passes can be bought for specific zones in the US or the whole country and prices include airport fees, charges and taxes and feature AC's various fare/benefit levels ( ATWOnline, Oct.
Hailing the new EU-US open skies agreement as "a harbinger of further liberalization," the US Dept. of State last week signaled that the Bush Administration is prepared to sign the deal on April 30, that there will be no congressional opposition and that late European conditions regarding delayed implementation and second-stage negotiations are acceptable.
Lufthansa flew 7.94 billion RPKs in February, up 8.5% on the year-ago month. Capacity grew 5% to 10.92 billion ASKs and load factor rose 2.3 points to 72.7%. Singapore Airlines flew 6.86 billion RPKs in February, a 6.9% climb from the year-ago month. Capacity was up 2.1% to 8.6 billion ASKs and load factor rose 3.6 points to 79.8%. Iberia flew 3.98 billion RPKs in February, a 7.5% increase from the year-ago month. Capacity was up 2.3% to 4.98 billion ASKs, lifting load factor 3.9 points to 80%.
US and European airlines largely hailed EU transport ministers' approval of the open skies agreement yesterday, though British Airways and Virgin Atlantic Airways led a chorus on the European side cautioning that the deal is just a "first step" toward creation of a truly open transatlantic air market by 2010.
Virgin Nigeria this week launched thrice-daily Lagos-Port Harcourt service aboard F50s. It also increased twice-weekly flights to Sokoto from Lagos and Abuja to thrice-weekly. Separately, it named Head of Planning Adeola Bali finance director.
Delta Air Lines flew 7.94 billion system RPMs in February, a 2.6% increase over the year-ago month. Capacity rose 2.8% to 10.71 billion ASMs and load factor dipped 0.2 point to 74.1%. Domestic RPMs fell 5% to 5.65 billion against a 5% decline in ASMs to 7.46 billion, leaving load factor at 75.8%. International traffic rose 27.7% to 2.89 billion RPMs, capacity grew 27% to 3.26 billion ASMs and load factor was up 0.4 point to 70.3%. Ryanair transported 3.2 million passengers in February, up 24% from the year-ago month. Load factor fell 1 point to 77%.
Although unable to slow the momentum toward unanimous passage of the recently negotiated open skies agreement between the EU and US, UK Transport Secretary Douglas Alexander nevertheless salvaged a couple of concessions during yesterday's vote by the EU's Transport, Telecommunications and Energy Council that established open skies and opened London Heathrow to competition.
US legacy airlines do not plan to ramp up capacity this year despite posting their best full-year financial results since 2000. "I think you'll continue to see very modest capacity growth, particularly domestically," Continental Airlines Chairman and CEO Larry Kellner told the JP Morgan Aviation and Transportation Conference, available via webcast, this week. The 11 largest US carriers (including America West Airlines, part of US Airways Group) reported a 1% decrease in domestic capacity in 2006.
Aeroflot yesterday followed up on its verbal commitment to the A350 XWB by signing an MOU with Airbus for the purchase of 22 of the model. CEO Valery Okulov promised reporters at a news conference last week that the carrier was close to a deal ( ATWOnline, March 16). Neither Airbus nor Aeroflot specified the type(s) of A350s ordered. Deliveries are scheduled to begin in 2015, SU said.
SAS Scandinavian Airlines was hit by a 4-hr. wildcat strike by approximately 1,600 flight attendants in Copenhagen yesterday that resulted in several cancellations. SAS expected operations at CPH to return to normal by late yesterday, according to press reports.
Saudi Arabian Airlines will sell 49% of its catering unit to a coalition of Saudi and Spanish firms for $373.4 million, according to the Arab Air Carriers Organization.
Boeing reached a deal with Nippon Cargo Airlines to manage "a significant portion" of the carrier's spare parts inventory under its Integrated Materials Management program. "This program is an especially good fit for us with our 747-400 [freighters]," NCA MD and Senior VP-Engineering and Maintenance Takuzo Nomura said. "It will help us manage our costs." Under IMM, Boeing and other suppliers will own parts that NCA normally would keep in inventory.
Air Dolomiti named Jorg Eberhart VP-marketing, network and commercial. OnAir, the SITA-Airbus joint venture, appointed ARINC VP and MD-Europe, Middle East and Africa Graham Lake as CCO.
Japan Airlines reached a deal with four unions early Tuesday, avoiding a one-day strike that had been scheduled for that day, Reuters reported ( ATWOnline, March 20).
American Airlines and United Airlines, the only US carriers permitted to operate to London Heathrow, are backing adoption of a tentative US-EU open skies accord, on which EU transport ministers are scheduled to vote today, even though it could hurt them in the London market.
TUI AG, parent of Hapagfly, Hapag-Lloyd Express, Thomsonfly, TUIfly Nordic, Arkefly, Corsair and Jetair, suffered a €846.6 million ($1.13 billion) loss in 2006, reversed from a €496.3 million profit the year before, owing to restructuring expenses and required depreciations. The company unveiled a restructuring plan in December that includes the merger of its airline brands under the TUIfly.com name ( ATWOnline, Dec. 18, 2006).
Goodrich reached a deal with Shanghai Airlines to supply wheels and electrically actuated brakes for its nine 787s, which it will put into service starting next year.
Triad International Maintenance Corp. is working to diversify its operations while expanding into new parts of the world since being taken private in a financial transaction completed last December, according to Executive VP and CMO R. Gene House, who joined the company last July after more than four decades with United Airlines. House's boss, President and COO Ron Utecht, is also a United alumnus with 39 years with the airline.
Menzies Aviation parent John Menzies plc yesterday announced the resignation of CEO Patrick Macdonald while reporting a 9% year-over-year drop in its full-year profit to £35.8 million ($69.6 million). Menzies Aviation was the company's best-performing unit, posting a 25% rise in profit to £16.6 million. It did not announce a successor.
US Dept. of Transportation yesterday tentatively approved Virgin America's plan to "reconfigure its ownership and management structure" and said the carrier could earn its operating certificate if it meets certain conditions, including replacing CEO Fred Reid, who has overseen the certification process since he left Delta Air Lines in April 2004.
SAS Group airlines flew 2.6 billion RPKs in February, down 0.1% from the year-ago month. Capacity rose 0.9% to 3.97 billion ASKs and load factor dropped 0.6 point to 65.5%. SAS Scandinavian Airlines flew 1.79 billion RPKs, down 6.3%, against a 5.1% fall in ASKs to 2.63 billion, dropping load factor 0.8 point to 68%.
There is a potential capacity crunch looming for landing gear MRO, according to Lufthansa Technik Director-Business Unit, Landing Gear Hamburg Michael Kirstein.
American Airlines said in a filing with the US Securities and Exchange Commission that first-quarter mainline passenger RASM will increase 3.5%-4.5% year-over-year and consolidated unit revenue will rise 2.7%-3.7% from last year's 10.26 cents. Consolidated unit cost, which was 11.46 cents in January and 11.84 cents in February, is expected to come in at 11.52 cents for the quarter and 11.51 cents for the year, up from 10.90 cents in 2006. Consolidated CASM excluding fuel is forecast at 8.42 cents for the first quarter and 8.19 cents for the year, up from 7.82 cents in 2006.
