Norwegian reported a third-quarter net profit of NOK43.8 million ($6.6 million), a reversal of fortune from the year-ago quarter when the Scandinavian LCC lost NOK11.2 million. Operating revenue surged 77.8% to NOK589.9 million as the carrier added two aircraft to its fleet and saw a 91% increase in RPKs year over year, a 51% capacity increase to 1.033 billion ASKs and a record 86% load factor, up 17 points. Operating expenses rose 53.4% to NOK526 million compared to NOK342.9 million in the 2004 quarter.
US and Canada reached a full open skies agreement Friday "that removes all economic restrictions on air services to, from and beyond the other's territory by the airlines of both countries." The agreement was reached after three days of talks in Washington and builds on the liberalized accord reached in 1995 that dramatically boosted air services between the countries but "provided virtually no rights for airlines to fly beyond the other country and severely limited express cargo services," according to the US Dept. of Transportation.
FLYi, parent of Independence Air, reached tentative agreements on labor cost reductions with its flight attendants, represented by the Assn. of Flight Attendants, and its mechanics, represented by Aircraft Mechanics Fraternal Assn., as the carrier worked through its first week of bankruptcy ( ATWOnline, Nov. 8).
Delta Air Lines pilots, represented by the Air Line Pilots Assn., offered a set of "comprehensive" concessions Wednesday in anticipation of a Nov. 16 hearing on the carrier's request to void its 11-month-old contract. ALPA formed a strike committee last week in response to the airline's Section 1113 filing ( ATWOnline, Nov. 4). Details of the concessions were not disclosed. Delta asked the court to permit it impose pay and benefit cuts and work rule changes worth $325 million annually. Delta pilots took a 32% pay cut last year that is saving the company $1 billion.
BAE Systems' Jeteye commercial airliner anti-Manpads system made its first flight on an American Airlines 767 yesterday. BAE is participating in the US Dept. of Homeland Security's Counter-Manpads Program. Installation of the laser-based infrared countermeasures system was done in partnership with American Airlines Maintenance and Engineering Services. Global Security Associates was selected by MAXJet Airways to provide ground aircraft security at New York JFK.
Air Canada will introduce new seats across its entire fleet including installing lie-flat seatbeds in its international Executive First premium cabins beginning next spring. Seats, designed and manufactured by Contour Premium Aircraft Seating, will offer 6 ft. 3 in. of length in bed configuration and provide up to 31 in. of width at the shoulders. They will be separated by 43-in.-high privacy screens. Cabins will feature individual IFE units, in-seat power supplies and multiple storage areas.
British Airways signed an MOU with Tussauds Group for the sale of its entire interest in the British Airways London Eye including its one-third share and its outstanding loan for £95 million ($165.63 million). BA plans to continue its brand association with the attraction by extending its franchise agreement.
Cathay Pacific Airways reported October RPKs of 5.52 billion, a 10.8% rise over the year-ago month, and 7.23 billion ASKs, a 12.7% increase. Load factor dropped 1.3 points to 76.3%. The carrier said it hopes to launch daily service to Rome following the Hong Kong government's announcement that it has secured additional rights. Cathay currently flies to Rome five times weekly.
Jet Airways of India will install first class cabins in its new 777-300ER fleet. Deliveries begin in 2007. Jet will continue to operate a two-class configuration in its A340-300Es and also in its 12 A330-200s on order.
Wright Amendment would be repealed under legislation introduced by Sen. John Ensign (R-Nev.) and co-sponsored by Sen. John Sununu (R-N.H.). The American Right to Fly Act would overturn the federal law that restricts commercial flights from Dallas Love Field to destinations within Texas and seven nearby states. Southwest Airlines is campaigning to have the amendment overturned. It is opposed by Dallas/Ft. Worth International Airport and its largest tenant, American Airlines. The Senate aviation subcommittee has scheduled a hearing on the issue for today.
Delta Air Lines opened a sales office in Beijing yesterday, signaling its intent to offer service from Atlanta in time for the 2008 Summer Olympics, although it does not serve the country currently.
Estonian Air reported a nine-month net profit of EEK55.2 million ($4.15 million), up from EEK16.7 million in the 2004 period. Operating revenue rose 14.8% to EEK831.5 million and unit cost per ASK decreased 17%. Traffic climbed 35% to 485,400 passengers over the first nine months of 2005 and load factor rose 2 points to 61%. "Our market share in Estonia has been constantly over 45%, despite the increased competition, and we expect to keep our share of the market," President and CEO Borge Thornbech said.
United Master Executive Council of ALPA, which represents United Airlines' 6,400 active pilots, reelected Mark Bathurst as chairman. He will begin his second term Jan. 1. Wendy Morse (vice chairman) and Mike Hamilton (secretary-treasurer) also were reelected.
Jettainer GmbH said US Airways outsourced its ULD management in a sale/leaseback deal that gives ownership and administration of its air cargo and passenger flight containers and pallets to Jettainer, which said it expects to save the carrier nearly $2 million in ULD-related costs of ownership over the duration of the five-year contract "through focused management services and dedicated technologies."
Greek air traffic controllers were planning a 24-hr. strike today as part of a larger initiative by public sector unions demanding higher wages. Olympic Airlines will cancel 107 flights and Aegean Airlines planned to ground 120 flights.
Aloha Airlines reached concessionary agreements with the International Assn. of Machinists, which represents mechanics, baggage handlers and other ground personnel at the bankrupt carrier. The new contracts will run until April 2009 and must meet bankruptcy court approval, Reuters reported.
European Union reached agreement with Morocco on its participation in the Galileo satellite navigation system, intended to provide a network of 30 satellites in medium earth orbit under civilian control. The deal covers industrial and scientific cooperation and development of specific Galileo applications for Morocco, the western Mediterranean and West Africa. It will be submitted at the December meeting of the EU Transport Council for formal approval. Morocco is the first African country to join the Galileo project.
Northwest Airlines named Anna Schaefer VP-finance and chief accounting officer effective Dec. 1. A 14-year veteran of the airline, she most recently served as MD-accounting. NWA also named Todd Anderson GM-Philippines, Australia and New Zealand.
Air France-KLM's October traffic increased 8.9% to 16.12 billion RPKs on 6% higher capacity of 19.73 billion ASKs. Load factor improved by 2.2 points to 81.7%. AF-KLM carried more than 6 million passengers, up 5.3% on October 2004. Norwegian flew 325,981 passengers in October, up 66% compared to the same month last year. RPKs increased 74% to 268 million while ASKs climbed 48% to 336 million with the result that load factor jumped 12 points to 80%. October marked the third consecutive month in which the Scandinavian LCC set a new record for passenger boardings.
Jetstar is in talks with Australia Post about selling its tickets over the counter at post offices in a move designed to expand its market reach in areas with limited Internet penetration such as rural communities. The Qantas low-cost subsidiary currently conducts 90% of its business through the Internet and the remaining 10% through travel agents. Passengers would buy Jetstar tickets at post offices in the same manner they make bill payments to some 400 service providers, including gas and electric companies.
Denmark will abolish its €10 ($11.78) passenger tax. The cut will cost the country approximately €70 million annually, but the government hopes to recoup that loss with more capacity and tourism, Jyllands-Posten reported. "It will create jobs in the service sector and it is a good thing for the regional development," Liberal Party spokesperson Jens Rohde said. Ryanair and Sterling each have said recently that they were reluctant to add flights to Denmark because of the tax.
SunExpress, a Turkish-German charter airline, will add two 757-200s next year. The carrier already operates 10 737s and 757s. It transported 1.3 million passengers through the first nine months, an 18% rise over the year-ago period.
Lufthansa Technik signed a five-year contract with US startup MAXjet covering Total Component Support for the all-business-class carrier's 767-200ERs. Singapore Airlines signed an Integrated Material Management and Airplane Health Management contract with Boeing covering MRO on the carrier's 747-400s and 777s.
