Air Mauritius said it suffered falling revenue and an "unprecedented deterioration of its financial performance" largely attributed to losses related to fuel hedges in its third fiscal quarter ended Dec. 31, leading to a nine-month loss of approximately €18 million compared to an €11.6 million profit in the year-ago period. The company realized a nine-month net loss of €20.5 million on its fuel hedging contracts and mark-to-market losses through the nine-month period totaled €129.5 million.
AerCap Holdings said it signed new lease agreements for 14 aircraft during the fourth quarter of 2008. It also delivered 12 aircraft and nine engines under lease agreements, purchased 11 aircraft and six engines, sold three aircraft and five engines and disassembled two aircraft and seven engines. New lease agreements were with Air China (three new A330s), Sichuan Airlines (three new A330s), Air One (three new A320s), Indonesia's Batavia Air (three 737-400s), North American Airlines (one 767-300) and AeroMexico (one 767-300). As of Dec.
Jat Airways transported 1.4 million passengers in 2008, up 4% from 2007, while cargo fell 13% to 2,829 tonnes. Passenger load factor rose 2 points to 64%.
Bmi and Virgin Atlantic Airways expanded their codeshare agreement to cover Virgin passengers flying from New York JFK to London Heathrow and connecting on bmi flights to Amman, Beirut, Tel Aviv and Tehran. It also will cover Newark passengers connecting to AMM, BEY and TLV, Boston passengers connecting to AMM and BEY and Los Angeles passengers connecting to IKA. Virgin's long-haul customers will have access to bmi connecting flights to Aberdeen, Belfast, Durham Tees Valley, Edinburgh, Glasgow International, Leeds Bradford and Manchester.
Mesa Air Group, which operates as a regional partner with Delta Air Lines, United Airlines and US Airways, narrowed its loss to $29.2 million for the fiscal year ended Sept. 30, 2008, from $81.6 million the previous year. Chairman and CEO Jonathan Ornstein said 2008 "was a very challenging year operationally and financially. The business plan for us is to be cash positive and profitable this time next year."
Air China parent China National Aviation Holding Co. intends to take over struggling Wuhan-based East Star Airlines in an effort to expand its foothold in central China. Air China said in a statement yesterday that CNAC "has had an initial discussion with East Star about purchasing its shares," without revealing how much CNAC was planning to buy. There has been no formal agreement.
Domestic airfares in Australia have plummeted 30% in a year to the lowest point in 17 years, according to data released by the government's Bureau of Infrastructure, Transport and Regional Economics. While the lowest fares fell dramatically, domestic business class fares eased just 1% but are expected to decline more significantly in the coming months as the economy continues to slow and business confidence sinks to its lowest level since surveys were launched in 1998.
FedEx exercised options on 15 777Fs valued at $3.75 billion, bringing its firm backlog for the type to 30, and took options on an additional 15. The delivery giant originally ordered 15 777Fs plus 15 options in November 2006, when it cancelled an order for 10 A380Fs owing to Airbus production delays on the now-suspended large freighter program ( ATWOnline, Nov. 8, 2006).
Rapidly expanding Turkish Airlines will make its final decision on an order for 35 widebody aircraft (25 firm plus 10 options) within the next three months and is looking seriously at the 777.
New Alitalia faced problems common for its predecessor on its first day of operations yesterday as workers staged protests at Rome Fiumicino, Milan Malpensa and Linate, causing some flight cancellations and delays. "I don't have any illusions," Alitalia CEO Rocco Sabelli told La Stampa, noting that the carrier had drawn up an emergency plan for the protests. "There are problems to be resolved, and there will be plenty more to resolve."
Esterline CMC Electronics said it will invest C$149.4 million ($124.7 million) in research and development over the next five years to support development of its FronTier cockpit systems technology for business jets, helicopters and air transport aircraft following the Canadian government's decision to support its effort with a C$52.3 million repayable investment over the same period. CMC said "FronTier will help position CMC as a major player in the field of avionics design and integration."
Lufthansa said it does not expect to complete original plans to increase its shareholding in bmi to 80% this month, Dow Jones reported. LH has not officially submitted a request to the EU for antitrust approval. It currently holds 30%-minus-one-share in bmi but plans to purchase an additional 50%-plus-one-share stake from bmi founder and Chairman Michael Bishop following the latter's decision last fall to exercise his sell option ( ATWOnline, Oct. 30).
Australia's Regional Express (Rex) continued to phase out its eight Saab 340As with the sale of one aircraft to Argentina's Sol Lineas Aereas. It said it is finalizing the sale of two more to an unidentified European operator. Last year it sold a 340A to Bridges Worldwide Express and converted two others to freighters for its Pel-Air Aviation subsidiary. Rex is adding 25 340Bs to its fleet.
South African Airways said it is "about to enter a moderate growth phase" and announced network additions designed around a strategy that "focuses on SAA as an African carrier with global reach, enhancing Johannesburg as a hub and moving capacity to more profitable routes." Among the announced initiatives was the April addition of Douala service and a commercial agreement with DR Congo carrier Lignes Ariennes Congolaises under which SAA this month will raise Johannesburg-Kinshasa service to six-times-weekly from four. It will add flights to Libreville in March.
Swissport International will end its ground handling operations in Singapore on March 31 for economic reasons. The decision will result in the termination of commercial agreements with existing customers and business partners. Swissport said it will seek "the best possible solutions" for its some 300 employees in Singapore. It still plans to increase business in Asia, especially in Japan and South Korea.
American Eagle and the Transport Workers Union agreed to seek US federal mediation if the two sides cannot reach a labor agreement by Jan. 17. Key issues in the negotiations include compensation, benefits and contract duration. TWU represents 3,550 grounds workers at the regional carrier.
As was widely expected, Air France KLM will become the relaunched Alitalia's international partner and will take a 25% stake in the restructured carrier through a capital increase of approximately €323 million ($435.1 million). The decision ends months of speculation and uncertainty and came on the last day of the flag carrier's operation as the "old" Alitalia. The AF KLM board approved the investment Friday ( ATWOnline, Jan. 9).
Zambian Airways suspended operations over the weekend, citing an inability to handle rising costs. The carrier also reportedly owed National Airports Corp., which controls the nation's airports, more than $2 million. Government officials indicated they would meet with the airline's executives to discuss a potential state-assisted reorganization.
AirTran Airways plans to recall 60 furloughed pilots and hire additional flight attendants, The Atlanta Journal-Constitution reported. AirTran cut 180 pilots and 300 flight attendants in September ( ATWOnline, July 8, 2008). The 60 recalled pilots, which are in addition to 35 recalled last month, are anticipated to be needed for increased summer flying.
Snecma Services won a seven-year Engine Services per Operation contract with CSA Czech Airlines to provide MRO support for CFM56-3s. Snecma will furnish remote engine monitoring services and Snecma Services Brussels will handle shop visits.
Pratt & Whitney yesterday signed two 10-year contracts with Delta Air Lines to provide engine maintenance, material and aftermarket support. Pratt's Commercial Engines & Global Services unit will cover material replacement and parts repair for more than 80 PW4000s in DL's fleet under an Inventory Logistics Program agreement.
Iberia promised to cooperate fully with an inquiry by Spain's Public Works Ministry into alleged mistreatment of passengers during a major winter storm in Madrid that caused hundreds of cancellations last Friday and Saturday. "We've had reports of [IB] conduct toward its passengers that is unacceptable," Public Works Minister Magdalena Alvarez told reporters, according to Reuters.
Embraer delivered a record 204 jets in 2008, 20.7% higher than the 169 reported in 2007, comprising 162 commercial aircraft, 36 executive jets and six for government use. Year-end backlog was valued at $20.9 billion and included 426 commercial aircraft. Commercial aircraft deliveries during 2008 comprised six ERJ-145s, nine E-170s, 55 E-175s, 78 E-190s and 14 E-195s.
