Owing to a strong rebound in the domestic market and the continuing decrease in domestic fuel prices, Chinese carriers are expected to report a collective first-quarter profit, according to CAAC Minister Li Jiaxiang. Li noted that "favorable policies" implemented in December were effective in combating declining domestic demand and stimulating growth. Among those initiatives were the decision to withhold approval for new entrants until 2010 and the call for airlines to cancel or delay aircraft orders, as well as fee reductions and infrastructure improvements.
European Commission yesterday released its updated "blacklist" of airlines banned from operating into the EU. Added to the list last released in November were Motor Sich Airlines of Ukraine, Thailand's One-Two-Go Airlines, six carriers from Kazakhstan and all airlines certified in Benin. Regarding carriers and countries already listed, it said a February visit to Indonesia "showed considerable improvements" and that there has been "good progress" regarding the "safety situation" in Angola ( ATWOnline, Nov.
Rolls-Royce signed a contract with Saudi Arabian Airlines for provision of Trent 700EPs to power up to 12 (eight firm and four option) A330s ordered at last year's Farnborough Airshow ( ATWOnline, July 15), with deliveries beginning in 2010. Contract is valued at up to $900 million at list prices and includes a long-term TotalCare services agreement. SV already operates 14 Rolls-powered 747-100s -200s, -SPs and -300s, but this marks the first time it has selected the Trent.
TNT said its Express unit's international air volumes were down 23% year-over-year in the first quarter but overall international volumes "stabilized" as the quarter went on. Despite steep declines in the early part of the quarter, later leveling-out led the express giant to predict yesterday that it will report "positive" operating income when it releases its results on May 4.
SAS Group said its rights issue authorized last month ended up oversubscribed by 23.3%, ensuring that the company will receive some SEK6 billion ($734.8 million) in proceeds before transaction costs ( ATWOnline, March 17). "We are pleased that our shareholders, as well as new investors, have shown their confidence in and support for SAS and our new strategy, Core SAS," President and CEO Mats Jansson said ( ATWOnline, March 27).
OpenSkies completed its merger with L'Avion, the French all-business-class airline it acquired last summer ( ATWOnline, July 3, 2008). The merged carrier's operating certificate now will be located in France, resulting in a headquarters relocation to Paris Orly. EC's Dale Moss will remain MD and former L'Avion CEO Marc Rochet will be executive VP.
Turkish Airlines yesterday said it achieved a net profit of $874 million in 2008, which would represent a nearly fourfold increase from the $224 million reported in 2007, on increasing revenue and traffic.
LAN Airlines said it "recently" operated its first commercial flight with a blended winglet-equipped 767-300. It said it is investing nearly $70 million in equipping its entire -300 fleet, numbering 37 passenger and cargo aircraft, with winglets before year end.
Former LTU owner Hans Rudolf Woehrl said he is entertaining the idea of reacquiring the Air Berlin subsidiary, which AB CEO Joachim Hunold said last month is being considered for divestment ( ATWOnline, March 16). Speaking to Handelsblatt, Woerhl said airline acquisition "is part of our business, and we were always very successful there," Reuters reported.
Europe's principal airline associations (Assn. of European Airlines, European Low Fares Airline Assn., European Regions Airline Assn. and International Air Carriers Assn.) jointly submitted a package of recommended "relief" measures to the EC, including a ban on increases in ATM and airport charges above 2008 levels for two years, withdrawal of all taxes on aviation and shifting all security charges to national governments.
Atlantic Airways reported a 2008 net profit of DKK15.3 million ($2.7 million), down 35.7% from DKK23.8 million in 2007, as passenger numbers jumped 65% to 593,113. The Faroe Islands-based carrier, which marked its 20th year in 2008, saw revenue rise 1.5% to DKK546.8 million. It projected a "reduction in activity" in 2009 owing to the economic downturn.
Air France will take delivery of its 54th 777 Friday. The aircraft is the 777th 777 produced by Boeing and will be the first AF aircraft to feature its new livery ( ATWOnline, Feb. 13).
China Eastern Airlines' effort to reach financial breakeven by 2010 and a 2011 profit will include the forced retirement of 160 mid-level executives, who will be replaced by lower-salaried employees from both inside and outside the company.
ILFC, which last month admitted that it needed "additional support" owing to its lack of access to financing as a unit of American International Group, reportedly is close to reaching agreement with the Federal Reserve Bank of New York to obtain a $5 billion line of credit that will help facilitate its sale.
China Southern Airlines yesterday became the first Chinese carrier to offer mobile check-in, another innovative step for the airline that sold the country's first e-ticket in 2000 and introduced the first common-use self-service kiosk in 2005 and the country's first online check-in option in 2006.
Air France KLM said it suffered a "significant deterioration" in March unit revenue. The group flew 16.02 billion RPKs during the month, down 9.4% year-over-year, against a 2.9% fall in capacity to 21.21 billion ASKs. Load factor dropped 5.5 points to 75.5%. United Airlines flew 9.58 consolidated RPMs in March, a 13.6% drop year-over-year. Capacity fell 9.9% to 12.18 billion ASMs and load factor was down 3.3 points to 78.7%.
Brussels Airlines reported a €12.2 million ($16.3 million) net loss for last year, a reversal from the €23.1 million profit earned in 2007, owing largely to mark-to-market fuel hedging losses.
Alaska Airlines flew 1.56 billion RPMs in March, down 8.1% from the year-ago month. Capacity fell 9% to 1.91 billion ASMs and load factor was up 0.8 point to 81.6%. Allegiant Air flew 468.5 million RPMs in March, up 19.1% year-over-year. Capacity rose 17.3% to 507.9 million ASMs and load factor lifted 1.5 points to 92.3%.
GKN Aerospace broke ground yesterday on a manufacturing facility at Bristol. The new site, known as Filton-West, will be under the management of the recently acquired GKN Aerospace (the former Airbus Filton facility) and will house an automated composites manufacturing operation that will incorporate production techniques "that represent the future of composites manufacture in aviation," GKN said. Starting in January the plant will manufacture wing spars and trailing edge assemblies for the A350.
Rockwell Collins reached agreements to install its dPAVES inflight entertainment system with CanJet Airlines (two 737-800s), Air Europa (12 737s plus 13 options) and Air Arabia (49 A320s).
