AirAsia X yesterday commenced its five-times-weekly Kuala Lumpur-London Stansted service aboard a 286-seat A340-300 ( ATWOnline, Oct. 14, 2008). AirAsia appointed IAM, Network Cargo Services, FlyUs, Global Cargo Management and ACT as cargo sales agents in Western Europe. Aviance handles at STN.
Virgin America reported limited 2008 fourth-quarter financial figures yesterday and said it posted a $27 million operating loss, narrowed from the $59.9 million deficit in the year-ago period, its first full operating quarter. Revenue more than tripled to $109.7 million and expenses rose 42.5% to $136.7 million. Load factor soared 19.1 points to 81.2%, unit revenue was up 86.7% to 9.28 cents and operating CASM fell 12.7% to 11.57 cents. VX released limited nine-month figures last month ( ATWOnline, Feb. 3).
US FAA asked the US Court of Appeals to suspend legal proceedings contesting its intention to conduct slot auctions at Newark, New York JFK and LaGuardia ( ATWOnline, Jan. 23), saying "it is inappropriate to put the court and the parties to the burden of briefing the complex issues in the case until a decision on whether to withdraw the rules is made." The Port Authority of New York and New Jersey and the Air Transport Assn. were scheduled to file briefs by April 15.
Qantas and Etihad Airways announced a codeshare agreement effective March 29 under which QF will place its code on EY's 21 weekly flights from Abu Dhabi to Sydney, Melbourne and Brisbane via Singapore as well as connections from AUH to Amman, Beirut and Bahrain. Etihad will place its code on "selected" QF flights between Australia and Auckland and on "a range" of Adelaide-MEL, SYD-BNE and SYD-Cairns flights, Qantas said. The deal is designed to open up the Middle East market for QF customers while countering the growing influence of Emirates in Australia.
Austrian Airlines Group reached an agreement with unions representing 2,600 ground workers (with a few exemptions) to implement reduced schedules and pay over the six months starting April 1. Hours and pay will be cut 20%/10% or 10%/5%. AAG said it holds an option to extend the six-month period. In addition, pension fund contributions will be cut 75% for one year. AAG said the move "is a very important step towards overcoming the crisis" and it is proceeding with negotiations with Austrian Airlines and Tyrolean Airways cabin staff.
American Airlines MD-80 en route from New York LaGuardia to Chicago O'Hare made an emergency landing yesterday at New York JFK after an apparent engine failure. Metal parts, believed to be from one of the aircraft's engines, fell on a neighborhood in New York City's Queens borough. AA confirmed that pilots declared an emergency shortly after takeoff owing to an engine failure. All 88 passengers and five crew were uninjured. There were no injuries reported on the ground.
Lufthansa Group's firm order for 30 110-seat CSeries valued at $1.53 billion, announced yesterday, puts to rest any doubt that the program will take off, said Bombardier Commercial Aircraft President Gary Scott.
A340 production rate has fallen to one aircraft "or perhaps less" per month, Airbus VP-Marketing Andrew Shankland said at this week's SpeedNews Commercial Aviation Industry Suppliers Conference in Los Angeles. "The A340 is pretty much built to order," he explained, while noting it has "found a niche as a VIP airplane." He attributed slow sales to higher fuel prices, which place the four-engine jet at a disadvantage "from a purely fuel perspective" compared to twin-engine widebodies.
Lufthansa Group concluded a volatile 2008 with a €599 million ($759.8 million) net profit, down 63.8% from the hefty €1.66 billion earned in 2007, and admitted that it expects declines in passenger numbers, revenue and operating profit this year.
Shenzhen Airlines subsidiary Kunpeng Airlines is expected to replace Shandong Airlines as the operator of the first ARJ21-700, which is scheduled to obtain its domestic airworthiness certificate next year. A Shenzhen spokesperson told ATWOnline that the first -700 will be delivered to Kunpeng in the second half of 2010. It ordered 100 ARJ21s at the end of 2007. In an effort to boost ARJ21 sales, Commercial Aircraft Corp. of China Vice MD and the chief designer of China's large commercial aircraft Wu Guanghui called on Beijing to subsidize domestic carriers purchasing the ARJ21.
Aer Lingus posted a 2008 net loss of €107.8 million ($136.7 million), a sharp reversal from the €105.3 million earned the previous year, citing "exceptionally challenging trading conditions for the aviation industry as a whole." CEO Dermot Mannion said, "Falling consumer demand in key markets, a weakening dollar and sterling, and increased competition across the network combined to put sustained and significant pressure on our business throughout the year."
Cathay Pacific Airways reported its first full-year net loss in a decade, posting a 2008 deficit of HK$8.56 billion ($1.1 billion), reversed from net income of HK$7.02 billion in 2007.
Air France KLM yesterday said that owing to a "sharp decline in demand," summer schedule (March 29-Oct. 25) capacity will be down 3.4% year-over-year rather than the 2% announced last month ( ATWOnline, Feb. 16). The reduction will comprise 3.4% cuts on both its long-haul and medium-haul networks. AF will reduce ASKs 2.7% (2.5% long-haul, 3.1% short/medium-haul) without eliminating any routes save Paris Charles de Gaulle-Chennai, which will be suspended due to "heavy losses," and Paris Orly-Valladolid.
Oman Air detailed some of its long-haul expansion plans ( ATWOnline, March 6) and will operate flights from Muscat to Frankfurt (six-times-weekly from Sept. 17), Paris Charles de Gaulle (four-times-weekly from Oct. 11) and Colombo/Male (four-times-weekly from Oct. 12).
Ryanair confirmed yesterday that it plans to close all airport check-in counters by Oct. 1, forcing all passengers to check in online ( ATWOnline, Feb. 24). Check-in will be available from 15 days to 4 hr. prior to scheduled departure. Beginning March 19, Web check-in will be available to non-EU/EEA citizens, passengers with checked baggage--£5/€5 ($6.99/$6.32) per person per flight--and reduced mobility customers. Airport check-in will cost £10/€10 per person per flight.
European Commission yesterday cleared Greece's plan to privatize Olympic Airlines, saying it "does not give rise to state aid concerns." Last week the government selected Marfin Investment Group to buy OA's flight operations for €45.7 million ($57.8 million) and the assets of Olympic Airways Services for €16.7 million ( ATWOnline, March 9).
Airbus reported EBIT of €1.79 billion ($2.26 billion) in 2008, reversed from an €881 million operating deficit in 2007, and is expected to garner 300-400 gross aircraft orders this year, parent EADS said yesterday in its full-year financial report.
Air Berlin is evaluating the future of its long-haul network owing to the global economic downturn and a drop in bookings through tour operators. "We have implemented an internal AB efficiency program called 'jump.' This will include a look at whether our long-haul network can develop or whether we will focus on medium-haul routes in the future," a spokesperson told ATWOnline. AB is considering all possibilities, including canceling its long-haul flights or finding another platform for the operation.
Delta Air Lines said yesterday it is cutting international capacity by an additional 10% beginning in September, with transatlantic capacity down 11%-13% year-over-year through the 2009-10 winter schedule and transpacific capacity 12%-14% lower. In a memo to employees, CEO Richard Anderson and President and CFO Ed Bastian said the move is in response to "the worsening global economy," adding, "To achieve these capacity changes, we will exit low-performing markets, down-gauge certain routes, adjust frequencies and move some markets to seasonal service."
Hawaiian Airlines announced a tentative two-year labor agreement with the International Assn. of Machinists and Aerospace Workers-Clerical division representing 1,220 airport customer service, ramp, reservations, schedule planning, purchasing, records and crew scheduling employees. Members are expected to vote on the deal in the coming weeks.
Southwest Airlines suffered a 7% year-over-year decline in unit revenue during the first week of March, which followed a 2% fall through the first two months of this year ( ATWOnline, March 4), Chairman, President and CEO Gary Kelly said yesterday at the JP Morgan Aviation and Transportation Conference in New York. "I don't know that we've reached the bottom," he warned. SWA "had a quite satisfactory January revenue production. We saw things weaken sequentially in February," he said.
US Airways named Indigo Partners' Stephen Johnson as executive VP-corporate and general counsel. Austrian Airlines Group promoted GM-Americas Paul Paflik to VP-ground operations effective July 1.
Boeing Commercial Airplanes President and CEO Scott Carson said that despite an "uncertain and unstable" credit market, sufficient financing is available to back all aircraft deliveries through early 2010. "We believe that every aircraft scheduled to be delivered this year will be delivered," Carson said yesterday at the JP Morgan Aviation and Transportation Conference in New York, available via webcast. Boeing has made $1 billion available for financing, but only a "minimal" portion will be needed this year, he said.
Bombardier intends to move forward on a larger version of its popular 70-seat Q400 turboprop, Commercial Aircraft President Gary Scott said yesterday. Speaking at the SpeedNews Commercial Aviation Industry Suppliers Conference in Los Angeles, Scott said, "We will build a bigger version of this airplane. It is just the timing to be determined." Responding to a question from the audience, he said, "We're looking at how big, 90 or 100 seats, and should it be a simple stretch or more? Over the course of the next 12-24 months we will sort that out."
