AirAsia X will launch four-times-weekly Kuala Lumpur-Melbourne on Nov. 12 aboard an A330, increasing to daily during the December-January peak season. MEL will be the long-haul LCC's fourth destination after Hangzhou, Perth and Gold Coast.
SriLankan Airlines reported a LKR4.9 billion ($45.4 million) profit in the fiscal year ended March 31, more than five times the LKR862 million posted in the prior year, according to press reports. Profit was driven by a LKR5.48 billion gain from a sale/leaseback transaction involving three A340s. Full-year revenue climbed 15.9% to LKR80 billion. Operating loss was LKR588 million as fuel costs soared 28% year-over-year. The airline business lost LKR6.1 billion, but the company made money with its ground handling (LKR3.3 billion), catering and duty-free sales segments.
Emirates President Tim Clark said he expects the increase in fuel prices to cost the carrier as much as $500 million this year. Speaking to la Repubblica, Clark said, "this year we expected profits to grow by about $500 million to nearly $2 billion, but the rise in crude [oil prices] already costs us more or less that amount. We too are enacting a cost reduction plan."
Aer Lingus Group appointed Babcock and Brown Air CEO Colm Barrington as chairman succeeding John Sharman effective next month. Barrington currently is a nonexecutive director of Dublin Airport Authority, from which he will resign before taking over at EI.
United Airlines will stop serving complimentary snacks to North American economy passengers effective Sept. 2 and will begin charging for meals in domestic business class (except for certain flights between New York and Los Angeles/San Francisco) and in transatlantic economy cabins on Oct. 1, according to a memo to flight attendants obtained by the San Francisco Chronicle and subsequently confirmed by a UA spokesperson. "These are difficult but necessary changes.
A Spanair MD-82 scheduled to carry vacationers to Las Palmas yesterday crashed on takeoff from Madrid Barajas' longest runway, 36L, and caught fire. Reports from the Spanish capital indicated that at least 153 occupants were killed in the accident. Spanish Development Minister Magdalena Alvarez said late yesterday that 19 of the 172 people (162 passengers, six working crew, four nonworking crew) onboard survived, according to the BBC and CNN.
European Commission extended the deadline for its inquiry into Air France KLM's proposed acquisition of Martinair by 10 working days due to "first phase commitments" offered to alleviate competition concerns. Original deadline was Aug. 25. KLM currently owns 50% of Martinair shares and intends to acquire the other 50% from Maersk ( ATWOnline, June 12, 2007).
Lufthansa Consulting extended its contract with Kenya Airways and will help the airline establish a new Hub Control Concept at Nairobi Jomo Kenyatta to be integrated with LCG's already implemented Operations Control Center infrastructure.
American Airlines yesterday launched its Gogo inflight Internet service provided by Aircell on 767-200s operating from New York to San Francisco, Los Angeles and Miami. The service is available in all cabins and costs $12.95 per person on flights of more than 3 hr. ( ATWOnline, June 26).
Virgin Blue Holdings blamed soaring fuel prices and one-off product enhancement costs for its 54.7% drop in net profit to A$97.7 million ($85.1 million) for the fiscal year ended June 30. The result was slightly ahead of market expectations but management advised that the year ahead will be tough, although it still expects a positive result.
Northwest Airlines said yesterday that it has gained relevant government approvals to add the Delta Air Lines code to all of its transpacific flights, another step toward the planned merger of the two carriers. NWA also will add the DL code to its flights between Tokyo Narita and three Asian destinations. Expanded codesharing will take effect Aug. 30.
Qantas CFO Peter Gregg resigned his post effective Sept. 30 and will be replaced by Deputy CFO Colin Storrie, CEO Geoff Dixon announced. The move is considered to be the beginning of a change in leadership following the appointment of Jetstar Airways CEO Alan Joyce to succeed Dixon.
SilkAir CEO Chin Yau Seng told reporters that demand for its services remains robust with the exception of "a few blips," and that capacity growth for the fiscal year beginning April 1 now is expected to be 5%-7%, down slightly from the 8%-10% previously forecast. "So far we have seen continued strong support to a lot of our regional points," Chin said, noting that demand is strong from both leisure and business travelers despite high fuel prices.
Embraer and Aeromexico Connect signed a long-term service agreement supporting the carrier's growing fleet of ERJ-145s and E-190s. Contract covers more than 500 part numbers and includes landing gear overhauls on the -145s.
US Airways yesterday announced plans to launch daily Philadelphia-Tel Aviv service in July 2009 contingent on approval from the US Dept. of Transportation and the Israeli government. It will use A330-200s scheduled to be delivered in the first half of next year. Tel Aviv would be US's only Middle East destination. Sama will launch twice-weekly Dammam-Beirut and thrice-weekly Riyadh-Asiut on Sept. 1.
EasyJet will close its second-largest German base, Dortmund, an airline spokesperson told the dpa news agency. More information on the fate of the 116 employees at DTM will be available next month, the spokesperson said. Berlin Schoenefeld is easyJet's largest German base.
Virgin Atlantic Airways confirmed reports that it is seeking to dispose of its 49% equity stake in Virgin Nigeria, the Lagos-based flag carrier it helped establish in 2004 and launch in April 2005. Nigerian institutional investors own 51%. "The intention has always been for the airline ultimately to be wholly owned by Nigerian investors. It is now time for Virgin Nigeria to go its own way with local shareholders," Virgin Atlantic President Richard Branson said, noting that VS "wishes to focus on growing its core long-haul business." It is in talks with potential purchasers.
JAL Group yesterday filed an application with the Japanese Ministry of Land Infrastructure, Transport & Tourism requesting that international normal interline fare rates be raised by 10% on flights to the Americas and by 5% on flights to other Asian destinations and to the Middle East and Africa.
SR Technics signed an agreement with Avtrade Ltd. to provide MRO and loan services for a range of Honeywell APUs including the 131-9A, 131-9B, 85 Series, 331-200ER, 331-250, 331-350C and 660-4.
Mesa Air Group reported a $3.7 million loss for the fiscal third quarter ended June 30, reversed from a $2.6 million profit in the year-ago period, and said it intends to sell its share in its Chinese regional joint venture Kunpeng Airlines back to its partner in the venture, Shenzhen Airlines. Operating revenue was up 4% year-over-year to $353.9 million but expenses climbed 9.3% to $357.1 million, resulting in an operating loss of $3.2 million compared to a $13.6 million profit a year earlier.
Transaero added its first 777-200ER last week. It said it is the first Russian carrier to acquire the type, which will seat 12 in first class, 14 in business and 280 in premium and standard economy. Aircraft initially will operate between Moscow Domodedovo and Tel Aviv. Three more 777s are scheduled to be delivered to Transaero this year.
China Southern Airlines posted a net loss of CNY1.17 billion ($169.7 million) in the first six months of 2008, a significant reversal from the CNY62 million earned in the year-ago period. Operating revenue climbed 9.1% year-over-year to CNY26.78 billion against a 14% increase in operating expenses to CNY28 billion. CZ cited "various unfavourable factors including the US subprime mortgage crisis, ballooning inflation, stringent [domestic] monetary policies and natural disasters" as causes for the slower-than-expected market demand that impacted its results.
GMR Hyderabad International Airport, developer and operator of the new Rajiv Gandhi International, said it received clearance from the Ministry of Aviation to levy a INR375 ($8.66) user development fee on outbound domestic passengers beginning Friday.
Shanghai Airlines earned a CNY23.4 million ($3.4 million) first-half profit based on domestic accounting standards, reversed from a CNY134.5 million loss in the year-ago semester, thanks to a CNY44.5 million government subsidy. It did not say what the subsidy was for, Bloomberg News reported. Instead it credited "the enhancement of marketing efforts and rationalization of the route network, as well as improving aircraft daily utilization" as key to the result. Operating revenue rose 26% year-over-year to CNY7.03 billion against a 22.8% lift in expenses to CNY7.12 billion.
Mercator said that WestJet signed up for its RAPID Bureau Interline Solution hosted in Dubai, becoming the third North American customer for the interline revenue accounting solution.
