Air Canada announced tentative agreements on its 21-month pension funding moratorium with some 3,200 pilots represented by the Air Canada Pilots Assn. and approximately 6,700 flight attendants represented by the Canadian Union of Public Employees, giving the airline the consent of all five Canadian unions and allowing it to move forward with its effort to seek new funding ( ATWOnline, June 10).
Aeroflot said its "prompt steps to balance income and expenditures" during the first quarter, along with favorable exchange rates, helped it post a RUB713.1 million ($22.7 million) net profit. It flew 5.39 billion RPKs in the quarter, down 3.8% year-over-year, on a 10.9% drop in passenger numbers. It said its April and May performance "revealed an upward drift in carriage."
News from Travel Technology Update: Virgin Blue, the Australian low-cost carrier, will migrate to Navitaire's New Skies platform later this year. Virgin Blue has been using Navitaire's Open Skies system since its launch.
A "collapse in demand" contributed to a MYR694.8 million ($196.8 million) first-quarter loss for Malaysia Airlines compared to a MYR120.5 million profit in the first three months of 2008. An operating loss of MYR137.9 million, reversed from a MYR132.9 million profit in the year-ago period, was the revitalized company's first since the 2006 third quarter and resulted from a "triple squeeze--overcapacity, extreme fuel volatility and a global slump which hit passenger and cargo demand," MAS said.
Air Corporation Employees Union, Air India's largest union, will go on "indefinite strike" beginning July 1 if the airline carries through with its plan to delay employee wages ( ATWOnline, June 16), General Secretary J.B. Kadian told the Indo-Asian News Service. "This has never happened in Air India. We are not going to accept this at any cost," Kadian said.
Delta Air Lines petitioned the US Dept. of Transportation for permission to make the following scheduling adjustments "in light of the adverse global market conditions that are continuing to suppress demand for international air travel": Dormancy waivers from Sept. 1, 2009, to Sept. 1, 2010, on seven weekly frequencies from Atlanta to Shanghai and Capetown (via Dakar); a delay in the launch of five-times-weekly seasonal New York JFK-Buenos Aires service from this December to Dec.
Focus Aviation announced the sale of 15 F100s to The Evsen Group on behalf of KLM. Evsen plans to use the aircraft for short-haul operations in the Middle East. GECAS announced the delivery of one new A320-200 to Iberworld Airlines.
IATA said April international premium traffic fell 22% year-over-year, a steeper decline than the 19.2% reported in the first quarter and a number distorted by the shift in this year's Easter holiday to April, which often depresses business traffic. The number of passengers traveling on economy tickets inched up 0.3% year-over-year. "It is too soon to say whether April marked a turning point in the current down cycle of air travel," IATA said. "Unfortunately, fares and yields are falling at an increasing rate so even if traffic volumes are stabilizing, revenues are not."
Continuing its effort to improve airline safety, US FAA said this week that it wants to improve training and make it easier for prospective employers to access complete FAA files for pilot applicants. The renewed focus on safety was sparked by February's fatal crash of a Colgan Air Q400 outside Buffalo. The pilot, Marvin Renslow, did not reveal to Colgan that he had failed check rides prior to his employment at the regional carrier.
Qatar places firm order for 24 A320 family aircraft Boeing: Economy has bottomed out, 2010 production cut unlikely Vietnam inks deal for two ATR 72-500s, may order A350s; ATR maintains order levels Malev signs LOI to purchase 30 Superjets Qatar Airways threatens to launch LCC if carriers 'intrude' on market Bombardier lowers 20-149 seat aircraft 20-year market forecast by 3.9%
Iberia flew 4.02 billion RPKs in May, an 11.4% drop from the year-ago month. Capacity fell 9.6% to 5.15 billion ASKs, lowering load factor 1.6 points to 78%. SkyWest Airlines and Atlantic Southeast Airlines flew 1.47 billion RPMs in May, down 1.2% year-over-year. Capacity fell 2.8% to 1.83 billion ASMs and load factor rose 1.2 points to 80.1%. Hawaiian Airlines flew 682.6 million RPMs in May, down 2% year-over-year. Capacity rose 0.9% to 819.5 million ASMs and load factor dropped 2.4 points to 83.3%.
EgyptAir yesterday completed its move to the new Terminal 3 at Cairo International, joining six other Star Alliance carriers as part of the group's "move under one roof" initiative. "T3 brings high connectivity for us and our partners," Chairman Tawfik Assy told ATWOnline at last week's IATA annual general meeting in Kuala Lumpur. "Our membership in Star Alliance changed our image and we are getting a lot of positive response.
Citing the "slow recovery in air transport demand," Japan Airlines yesterday said it would "strive to improve profitability by adjusting capacity" and announced a reduction in its international schedule effective July 1. The company reported a ¥63.1 billion ($640.9 million) net loss in the fiscal year ended March 31 and said it expects a similar result this term ( ATWOnline, May 13).
US Airways is offering voluntary furloughs to 400 flight attendants. VP-Inflight Services Hector Adler said in a message to employees last week that the airline has "waited as long as we could to address our overstaffing situation hoping that attrition and other voluntary leave options would offset the need for today's action," according to the Associated Press. US is asking 300 cabin staff based in Phoenix or Las Vegas to take voluntary leave from Aug. 5 to Nov. 30, 2009, or Nov. 30, 2010, according to Assn.
American Airlines promoted MD-Airline Profitability and Financial Analysis Kenji Hashimoto to VP-strategic alliances and MD-International Planning Don Casey to VP-revenue management. Republic Airways Holdings promoted Finance Director Joe Allman to VP and controller.
Gulfstream International Airlines yesterday released its response to US FAA's proposed $1.3 million civil penalty for improper scheduling and the installation of an unapproved component on its 1900Ds, admitting several schedule and recordkeeping errors but challenging the fine and citing "differences in interpretation" and its 20-plus years of accident-free operations in its defense.
Alaska Air Group board last week authorized a stock repurchase program worth up to $50 million. The company repurchased "nearly" $112 million of its common stock in 2007 and 2008.
International Aero Engines announced a V2500 order from Air China covering 22 A320s/A321s for delivery beginning in April 2010. Deal is worth some $700 million including the SelectOne build standard and a long-term aftermarket agreement. CA already operates the V2500 on 12 A319s. IAE also announced the delivery of Shenzhen Airlines' first V2500-powered aircraft in Toulouse, the first of 28 A320s ordered last summer.
Jet Airways said it will expand its Jet Airways Konnect all-economy service from today owing to "strong customer demand." It increased the domestic program by 30 daily flights over the weekend and will operate more than 100 as of today. The Konnect fleet comprises seven 737-800s and 10 ATR 72-500s ( ATWOnline, May 8).
Qantas will take delivery of its fourth A380 at the end of next month and will increase its Sydney-Singapore-London Heathrow service to five-times-weekly from thrice-weekly and its Sydney-Los Angeles flights to four-times-weekly from thrice-weekly beginning Aug. 6. By November, when it will have six A380s, QF will operate SYD-LAX and SYD-LHR daily while Melbourne-LAX gets a third weekly flight. Total weekly A380 flights will number 34. QF also announced and expanded codeshare deals with American Airlines and its first arrangement with Iberia.
Embraer announced the sale of an 84-seat E-175 to Japanese startup Fuji Dream Airlines for delivery next year. The Shizuoka-based carrier took delivery of its two ordered E-170s and expects to launch revenue service next month. FDA parent Suzuyo Group's original order was for two firm 170s plus one option, but the manufacturer said that deal was amended to allow for the purchase of the 175.
Rolls-Royce announced a $1.5 billion order from Gulf Air for Trent 700EP engines that will power 20 A330s. Deliveries are set to start in 2012. Deal includes a TotalCare services agreement and an extension to the TotalCare deal on Trent 700s already in service on 10 A330s. Rolls also signed a five-year extension to the TotalCare services agreement covering Condor Airlines' fleet of 13 RB211-535E4-powered 757s. Initial 10-year deal was set to expire this year; extension is worth some $150 million.
