A year that featured the failure of ExpressJet Holdings' branded flying experiment ended with an $88.2 million net loss, widened 25.5% from the $70.2 million deficit reported in 2007.
Mesa Air Group, which operates as a regional partner with Delta Air Lines, United Airlines and US Airways and independently as Mesa Airlines, reported net income of $15.9 million for its fiscal first quarter ended Dec. 31, reversed from a loss of $4.2 million in the year-ago period, and noted that Hawaiian inter-island subsidiary go! turned a profit for the first time. The regional operator reduced expenses on lower capacity and benefited from the sharp drop in fuel prices during the three months.
CFM International announced that Lufthansa selected the CFM56-5B to power 27 A319s/A320s it has on order. Contract is worth approximately $375 million and includes CFM's Tech Insertion option. Deliveries will commence this year and continue through 2012. LH currently operates more than 150 CFM56-powered Airbus and Boeing aircraft, the Snecma/General Electric joint venture said.
SAS Scandinavian Airlines announced the following network reductions: Stockholm Arlanda-Beijing service will shut down on April 29. Daily Copenhagen-Seattle service will be cut to six-times-weekly and stop completely at the beginning of the 2009-10 winter schedule. ARN- Bangkok and CPH-Delhi flights also will be suspended next winter. American Airlines and Gol yesterday announced a reciprocal interline and baggage check-through agreement.
With nearly 250 industry leaders and participants in attendance, ATW's 35th Annual Airline Industry Achievement Awards Dinner and Gala Celebration held at the Ronald Reagan Building and International Trade Center in Washington Tuesday night was an evening to remember.
Lufthansa could face yet another cabin crew strike following the failure of a fourth round of wage negotiations, the UFO trade union said Tuesday ( ATWOnline, Jan. 29). LH has offered a pay increase of up to 10%, improved work rules and profit sharing ( ATWOnline, Jan. 26).
Sabre scored another win in the North American market with JetBlue Airways' selection of its SabreSonic CSS, comprising reservations, departure control functions, inventory and website booking engine capabilities. The announcement followed WestJet's decision to opt for the new system, which Sabre describes as a "build-out" of its passenger services system rather than a rewrite ( ATWOnline, Jan. 30). Like WestJet, JetBlue was using Navitaire's Open Skies.
SAS Group airlines flew 1.72 billion RPKs in January, down 14.8% year-over-year. Capacity fell 9.8% to 2.84 billion ASKs and load factor dropped 3.6 points to 60.7%. SAS Scandinavian Airlines flew 1.6 billion RPKs, down 15.3%, against a 10.1% fall in capacity to 2.62 billion ASKs. Load factor declined 3.8 points to 61.3%. Finnair flew 1.96 billion RPKs in January, a 6.3% increase from the year-ago month. Capacity rose 0.3% to 2.52 billion ASKs and load factor was up 4.4 points to 77.8%.
Air France's first A380, powered by Engine Alliance GP7200s, completed its inaugural test flight last Thursday, the engine-maker announced. Four-hr. flight was followed by Monday's journey to Hamburg, where it will undergo painting and interior customization ahead of October delivery. AF has 12 A380s on order.
Shenzhen Airlines reported CNY26 million ($3.8 million) in net earnings in 2008, its 15th consecutive full-year profit. It earned CNY640 million in 2007. The carrier credited "effective cost control" for the result, which contrasts with heavy losses reported by other Chinese carriers. Last year it reduced operating expenses by CNY714 million. Industry analysts suggested that a lack of fuel hedges contributed to its success. China Eastern Airlines and Air China suffered losses of CNY6.2 billion and CNY6.8 billion respectively resulting from Dec.
Sharjah-based LCC Air Arabia concluded a "landmark" 2008 with a AED509.7 million ($138.7 million) profit, up 35.6% from the AED376 million reported in 2007.
AAR Corp. announced an agreement with US FAA that "terminates" the agency's emergency order of suspension that forced the company to shut down its Miami landing gear facility ( ATWOnline, Feb. 12). AAR Landing Gear Services "agreed to a variety of revisions to its maintenance procedures and manuals, enhanced training," and will revise its method of documentation for maintenance performed, AAR said. Operations will restart "no later than Feb.
Lufthansa will operate five-times-weekly Frankfurt-Rzeszow service starting April 27 aboard a Lufthansa CityLine CRJ700. Alaska Airlines will launch daily Seattle-Austin service on Aug. 3 and thrice-weekly Portland, Ore.-Maui flights on Aug. 7 aboard 737-800s. In addition, seasonal Anchorage-Maui will become year-round. Kingfisher Airlines yesterday launched four-times-weekly Mumbai-Solapur service aboard a Kingfisher Red ATR turboprop.
Swissport International signed a three-year cooperation agreement with Lufthansa Cargo to provide freight handling services at Amsterdam for LC partner carriers including Jade Cargo (an LC and Shenzhen Airlines joint venture). Operations are slated to begin March 1.
The US National Transportation Safety Board said that its investigation into last week's fatal Colgan Air/Continental Connection Q400 crash has yet to uncover a mechanical failure and is focused on determining the severity of the icing on the aircraft.
Qantas will take delivery of its fourth A380 in late May and announced the following increases in A380 services: Thrice-weekly Sydney-London Heathrow will become five-times-weekly on June 7 and a fourth weekly Sydney-Los Angeles flight will launch on June 9. QF expects to take delivery of four A380s this year.
Qantas Group will restructure its New Zealand and China networks as it strives to remain profitable, and CEO Alan Joyce denied speculation that the moves are a portent of things to come on its Australian operations.
Republic Airways Holdings, parent of Chautauqua Airlines, Republic Airlines and Shuttle America, reported an $84.6 million profit in 2008, up 2.2% from the $82.8 million earned the prior year. Revenue rose 14.5% year-over-year to $1.48 billion against a 15.3% increase in expenses to $1.06 billion. Operating profit of $255.1 million was 10.8% greater than the $230.3 million reported in 2007.
Assn. of European Airlines' 32 members transported 355.7 million passengers in 2008, a 1.5% decrease from 2007. Traffic measured in RPKs rose 1.2% to 791.78 billion against a 3% climb in capacity to 1.04 trillion ASKs. Load factor was down 1.3 points to 76%. AEA Secretary General Ulrich Schulte-Strathaus said, "We have seen figures as weak as these on only three occasions in the last 25 years," comparing the current downturn to the impact of the Chernobyl accident and bombing of Libya in 1986, the Persian Gulf War in 1991 and 9/11.
Singapore Airlines management announced an additional capacity cut and said it has met with three staff unions to discuss its plans for "mitigating the impact of the global economic downturn." In a statement released Monday, the airline said that falling advance bookings prompted it to reduce capacity in the fiscal year beginning April 1 by 11% year-over-year. SIA will ground 17 aircraft, 13 more than previously planned. It originally planned to convert one aircraft into a freighter and return three others to lessors.
