ANA Group posted a net loss of ¥29.2 billion ($306.6 million) for its fiscal first quarter ended June 30, reversed from a ¥6.6 billion profit in the year-ago period, as falling revenue "far outweighed" cost savings. "Beset by H1N1 influenza, which came on top of the global recession to further suppress demand to levels not seen before, the three-month period under review was tough in the extreme," Executive VP-Finance Tomohiro Hidema said. "Individual consumption in Japan was down, as companies saw tumbling revenues across the board and capital investment fell."
Spring Airlines reported a half-year net profit of CNY41.17 million ($6 million), a threefold year-over-year improvement, on a 20% lift in revenue to CNY894 million. The Shanghai-based carrier credited "effective cost control" and a "high load factor" for the result. It said it saved about CNY28.41 million in fuel expenses for the first six months and maintained a load factor of 95%, 17.4% higher than the domestic airline industry average.
Republic Airways Holdings reported second-quarter net income of $14.1 million, down 50.4% from a $28.4 million profit in the year-ago period, on an 18.2% fall in revenue to $320 million. Operating income dropped 18.4% to $53.6 million from $65.7 million as operating expenses lowered 18.2% to $266.3 million. During the quarter Republic made a bid to buy bankrupt Frontier Airlines.
Lufthansa Italia asked for 10 additional slots at Milan Malpensa to enable it to offer more flights to other European destinations as well as more frequencies on domestic services within Italy. LH Chairman and CEO Wolfgang Mayrhuber has said that LH wants to play a central role at MXP in the future. An LH spokesperson told ATWOnline that LH Italia currently operates seven A319s including one wet-leased from BMI.
IBS Software Services signed a five-year contract with startup Japanese domestic carrier Fuji Dream Airlines to supply its iFly Res technology to manage the carrier's inventory and reservation system.
SkyEurope Airlines, the financially troubled LCC based in Bratislava, said it has secured a new investor, FOCUS Equity B.V., which it said plans to invest €16.5million ($23.2 million). The carrier also said it will lease two 737-300s from Air Slovakia.
World airport passenger traffic fell 5% in June compared to June 2008 to 262.3 million, which represented a slowing of the downward trend from May, when traffic was down 8% year-over-year, according to Airports Council International.
The sale of London Gatwick by UK airport operator BAA is up in the air after the last remaining bidder refused to budge from its original £1.4 billion ($2.29 billion) offer. BAA parent Ferrovial reportedly wanted £1.5 billion, but a consortium led by Manchester Airports Group and Canadian infrastructure fund Borealis declined to increase its bid, according to press reports.
WWF-UK last month launched its "One in Five Challenge" to persuade businesses and governments to reduce their business travel by 20% by 2014. Officially launched on July 20 with five founder members including heavyweight companies such as Capgemini UK, Marks & Spencer and Vodafone UK, the program is highlighting that 25% of businesses in the UK now are measuring their carbon footprint.
In the final years of a $6.3 million airport redevelopment program, Miami International is looking at everything from a diversified shopping and services center to mineral extraction to gambling machines for the additional $500 million a year it will need to cover airport operations and debt service. In the first six months of this year, MIA's passenger traffic was down 1.4% and aircraft movements off 9.3% compared with last year. It has lowered its landing fees 39% for the current fiscal year to help its airline tenants get through the recession.
The Aug. 31 deadline for operators into the EU to submit their monitoring plans under the Emissions Trading System has been thrown into confusion by the UK's announcement that it does not have "a firm and agreed list" of operators to be regulated by each member state.
The world's airlines--with a few exceptions--must have breathed a sigh of relief on July 10 when the US Dept. of Transportation overrode the objections of the Dept. of Justice and approved antitrust immunity for Continental Airlines' membership in Star Alliance and Atlantic Plus Plus, the proposed joint venture subset of Air Canada, Lufthansa, United Airlines and Continental.
Changi Airports International, the international development subsidiary of Singapore's Changi Airport Group, took a 26% stake in Bengal Aerotropolis Projects Ltd. to develop an "aerotropolis" in the fast-growing Durgapur-Asansol region of eastern India. According to CAI, this involves the setting up of an industrial park, a logistics hub, an information technology park and a township around the privately owned airport. It is Changi's first investment in an Indian greenfield airport city project. Overall, the project aims to attract about $2.5 billion of investments.
Qantas criticized the Australian government's emissions trading scheme, warning that the costs of operating the intricate system will be borne by consumers. In a speech delivered in Perth, QF Chairman Leigh Clifford said the government's ETS has "theoretical benefits and has the merit of being market-based." He cautioned, however, that "the intricate valuing, trading and system management" it requires will come at a cost.
Ryanair will reduce winter schedule capacity at London Stansted by 40%, operating just 24 aircraft from the airport compared to the present 40. CEO Michael O'Leary said the decision "shows just how much [UK Prime Minister] Gordon Brown's £10 ($16.46) tourist tax and the BAA Monopoly's high airport charges are damaging London and UK tourism and the British economy generally," while reiterating that STN is one of Ryanair's two most expensive bases, the other being Dublin. The airline said BAA rejected its call for "deep cuts in these high passenger fees" this winter.
Sustainable Aviation Fuel Users Group, an airline-led industry working group, added several new carriers to its membership. Alaska Airlines, British Airways, Cathay Pacific, TUIfly and Virgin Blue have joined current airline members Air France, Air New Zealand, ANA, Cargolux, Gulf Air, Japan Airlines, KLM, SAS and Virgin Atlantic Airways. Boeing and Honeywell's UOP are associate members.
It's probable that John Leahy, Airbus's dapper chief salesman, never before had appeared at a press event during a major air show not wearing a tie. But after late-into-the-night negotiations with AirAsia X CEO Tony Fernandes produced an unexpected order for 10 A350-900s at the Paris Air Show (June 15-21), there were Leahy and Airbus CEO Tom Enders removing their neckwear just before beginning a press conference with Fernandes at Le Bourget to announce the deal.
European Commission described the number of mislaid, damaged or lost bags at EU airports as "excessive and unacceptable" and said it is considering ways to improve current legislation if the situation does not improve. "In order to protect passengers' rights adequately, we should provide citizens with the appropriate instruments. For the time being these instruments are not available," EC VP-Transport Antonio Tajani said. The Commission launched an inquiry into the luggage issue in March and said 4.6 million bags were delayed at EU airports in the first 10 months of 2008.
Air Canada suspended activity related to the implementation of a new reservations system under development with ITA Software. The carrier recorded a second-quarter impairment charge of C$67 million (US$61.9 million) related to the development of the system, dubbed Polaris.
MY MIND CLICKS ON AND OFF . . . I try letting one eyelid close at a time when I prop the other open with my will. But the effort's too much. Sleep is winning. My whole body argues dully that nothing, nothing life can attain is quite so desirable as sleep. My mind is losing resolution and control." --Charles Lindbergh
"The devil is in the detail, and the detail is a dog's breakfast." That is how one senior airline executive describes the EU Emissions Trading System, with layer upon layer of confusion dealing with various regulators. "Just one of the problems is that one of our domestic subsidiary regional airlines has been listed by one EU country, which we do not fly to, because it took delivery of an aircraft that transited that country," the executive claimed. "This is just one example of the task in front of airlines."
