Jazeera Airways earned a net profit of KWD4.5 million ($15.2 million) in 2008, nearly double the KWD2.3 million reported in 2007, on a 40.3% increase in operating revenue to KWD48.7 million. Chairman Marwan Boodai said yield rose 18.5% and unit cost was down 8%. "The strategic initiative to de-leverage the business in 2008 with the sale and leaseback of some assets has strengthened our balance sheet at exactly the right time, considering the current credit crisis," he said. Jazeera, which operates eight aircraft to 25 destinations, will increase 2009 capacity by 51%.
Aeroflot board "decided to continue the study on the rationale of acquiring" Alexander Lebedev's 49% stake in Blue Wings, according to a statement cited by Reuters ( ATWOnline, May 6).
EU and Canada Wednesday signed a far-reaching open skies agreement under which airlines from each side may operate freely without any restrictions on the number of carriers or flights between any airport in the EU and any in Canada. Agreement contains provisions for a phased easing of restrictions on control and ownership of carriers, leading to the right to set up airlines in the territory of the other party in the third phase and the right to own and control 100% of a foreign carrier in the fourth phase. "This will generate major benefits for consumers and airlines. .
Boeing took cancellations for 25 787s during the week ended May 5, according to its Orders and Deliveries website, but it did not say whether the cancellations came from a single or multiple customers. Including the eight Dreamliners firmed up by Gulf Air last month and the 32 cancellations previously announced ( ATWOnline, April 17), the manufacturer's 787 net order book for the year to date stands at -49.
Tarom yesterday took delivery of its first 68-seat ATR 72-500 as part of a contract signed last year for two valued at $37 million. It will take the second before year end and currently operates seven 42-500s. CEO Ruxandra Brutaru said the new aircraft will be used to launch flights to Dubrovnik and Zagreb.
The European Parliament accepted the European Commission's proposal to suspend the "use it or lose it" slot rule at EU airports during the current summer schedule.
IATA said France has adopted one-stop security protocols allowing passengers screened at a European airport to bypass a second screening when connecting in France. One-stop security will begin at Lyon and selected Paris Charles de Gaulle terminals, then expand. IATA estimated it will save $30 million a year.
Jet Airways announced the launch of a new economy service called Jet Airways Konnect that will be available on select domestic routes starting today. "Designed to meet the needs of the low-fare segment," JAK will feature reduced fares and buy-on-board meals and will be available on two 737s and six ATR 72-500s to start.
Citing "specific customer requests for deferrals" as well as the economic and industry downturn, Airbus yesterday slashed its A380 production and delivery schedule this year and next. The manufacturer now expects to deliver 14 A380s in 2009, down from the 18 previously planned and the 21 announced in May 2008. It said yesterday that "more than 20" aircraft will be manufactured and delivered in 2010. An Airbus spokesperson told ATWOnline yesterday that no firm 2010 schedule had been announced, although Bloomberg News reported that it intended to deliver nearly 30.
Finnair and its Helsinki Vantaa-based Northport Oy ground handling subsidiary reached a cost-savings agreement worth some €3.5 million that will include the layoff of 15 employees, the two-week furlough of 87 more and the shift of 183 full-time positions to part-time status. Northport employs 858. Separately, Finnair will launch a seasonal twice-weekly Helsinki-Pisa flight on May 8.
Sabre and Lufthansa signed a four-year global agreement effective July 1 providing Sabre Travel Network-affiliated agencies and corporations continued access to LH's full content.
TAM CEO David Barioni said at a conference in Sao Paulo that the company's "financial result is going to be positive this year" and that "the worst is over," Reuters reported. The carrier posted a BRL1.34 billion ($628.3 million) loss in 2008. Barioni also said, "We might ask [Airbus] to push the deliveries back, but no way would we cancel them."
International Communications Group announced an agreement with Rockwell Collins to provide its ICG NxtLink Iridium communications systems (voice and datalink flight deck communications) for air transport customers. Rockwell Collins is marketing the devices as the IRT 2110 (dual channel) and IRT 2120 (tri channel) Iridium systems. Units are available for delivery.
ExpressJet Holdings reported a first-quarter net loss of $11.4 million, narrowed 68.1% from a net loss of $35.7 million in the year-ago period, saying it benefited "from the cost-cutting performed during the second half of 2008 in response to record-breaking fuel prices and its amended capacity purchase agreement with Continental [Airlines]."
US Airways Group announced the sale of 15.2 million shares of common stock and $75 million in convertible senior notes due 2014, which are expected to raise approximately $150 million combined. US said it intends to grant the underwriters an option to purchase an additional 2.3 million shares and $11.3 million in notes to cover any overallotments. Citi and Morgan Stanley are joint book-running managers.
EasyJet nearly doubled its fiscal first-half net loss to £85.9 million ($129.3 million) from the £43.3 million posted in the six months ended March 31, 2008, citing high fuel costs linked to poor hedging and the later Easter holiday.
Foul weather and maintenance problems contributed to a 68% decline in SkyWest Inc.'s first-quarter profit to $9.4 million from $29.1 million in the year-ago period. Revenue fell 22.5% to $672.6 million. The company and its SkyWest Airlines and Atlantic Southeast Airlines affiliates provide regional flying for United Airlines, Delta Air Lines and Midwest Airlines with a fleet of 440 aircraft.
US Dept. of Transportation's Office of Inspector General issued a report warning that the US ATC system is vulnerable to "cyber attacks" because FAA has not adequately protected the commercial software- and IP-based technologies it increasingly is using to collect and disseminate information to facilitate ATC services. "The need to protect ATC systems from cyber attacks requires enhanced attention," the report stated. "Web applications used in supporting ATC systems operations are not properly secured to prevent attacks or unauthorized access.
Turkish Airlines firmed its order for five 777-300ERs announced in March ( ATWOnline, March 26). The aircraft are worth $1.36 billion at list prices, Boeing announced. THY currently operates three -300ERs on lease from Jet Airways. Separately, THY launched a thrice-weekly Istanbul Ataturk-Benghazi flight. The Libyan city is its sixth new destination this year. Its summer schedule features a 24% year-over-year rise in ASKs and a 12% increase in number of flights.
Southwest Airlines said that current revenue and booking trends "continue to be adversely impacted by the weak economic environment" and continuing swine flu concerns, leading the LCC to predict that second-quarter unit revenue will fall more than the 2.8% decrease reported in the first quarter. April RASM is expected "to be in line" with the year-ago month. SWA flew 6.52 billion RPMs last month, up 4.1% year-over-year, against a 1.9% decline in capacity to 8.46 billion ASMs. Load factor rose 4.4 points to 77%.
Republic Airways Holdings reported an 89.3% drop in first-quarter earnings to $2.2 million from $20.2 million in the year-ago period. Revenue was down 10.6% to $325.3 million. The company operates as Chautauqua Airlines, Shuttle America and Republic Airlines in partnership with American Airlines, US Airways, Continental Airlines, Delta Air Lines, United Airlines, Midwest Airlines and Mokulele Airlines. Operating expenses dropped 5.9% to $280.5 million from $298 million a year ago. Expenses included $3.1 million related to the cost of returning CRJ200 aircraft.
Blue Wings had its operating license reinstated by the German LBA Monday and said it plans to restart scheduled flights from its Dusseldorf base to Moscow, St. Petersburg, Karaganda and Beirut, as well as its European charter service, as soon as possible ( ATWOnline, May 5).
China Airlines reported TWD23.08 billion ($698.1 million) in first-quarter sales revenue, down 25.6% from the year-ago quarter. March revenue fell 30% year-over-year to TWD7.62 billion.
Boeing expressed confidence that the 787 will be certified on time for delivery to ANA in the first quarter of next year despite a pessimistic research report released last week. The manufacturer responded to Bernstein Research's cautious assessment ( ATWOnline, May 5), saying it "understood the natural tendency toward skepticism based on past program performance" while claiming that the report included several errors.
