United Airlines parent UAL Corp. named VP-Investor Relations Kathryn Mikells to succeed Executive VP and CFO Jake Brace when he retires on Nov. 1. Mikells, who joined UA in 1994 as a financial analyst and has held several leadership positions throughout the company, will be senior VP and CFO. Brace joined the company in 1988 and has been CFO since 2001. He will continue to serve in an advisory role, UA said. UAL also named former Northwest Airlines pilot and Air Line Pilots Assn. officer Howard Attarian as VP-flight operations, effective Sept.
GMR Hyderabad International and Delhi International Airport Ltd. signed an MOU with Deccan Cargo & Express Logistics for the development of express cargo hubs. Deccan initially plans to utilize a 300-sq.-m. cargo terminal operated by Hyderabad Menzies Air Cargo and more than 2,000 sq. m. at DEL. Operations are slated to begin Jan. 1.
Thai Airways set aside THB700 million ($20.6 million) that it hopes to use for early retirement packages to induce 500 workers to leave the airline, the Bangkok Post reported. Thai also said it will cease operating flights from Bangkok to New York JFK and Auckland. The moves came after the carrier posted a THB9.24 billion second-quarter loss ( ATWOnline, Aug. 14), widened from a THB417.4 million deficit in the year-ago quarter and its largest quarterly loss since 1997.
Indian government announced official approval for significant modernization and expansion projects at Kolkata and Chennai airports that will bring the facilities to "international standard" and cost a combined $900 million.
Malaysia Airlines Engineering and Maintenance released a statement Friday attempting to distance itself from reports that it is linked to some of the highly publicized safety and maintenance incidents suffered recently by Qantas ( ATWOnline, Aug. 13). MAS MD and CEO Idris Jala said allegations linking the company's E&M subsidiary to the ruptured 747-400 hull that forced a diversion to Manila last month are "totally baseless" and that the aircraft was maintained in Australia. E&M said it has worked only on QF 737-400s.
ACTS and GE signed an MOU recognizing ACTS Engine Maintenance Center as a GE fulfillment center for engine MRO and on-wing and diagnostic services for CFM56-2/-3/-5A and -5C operators in the Americas.
German travel, tourism and shipping conglomerate TUI AG slipped to a €125.3 million loss in the second quarter, reversed from a €70.5 million profit in the year-ago period, owing to special items "arising in particular from the strategic realignment of flight operations."
US Airways said Merrill Lynch, the underwriter of its public offering of 19 million shares of common stock at $8.50 per share, exercised the entire overallotment option of 2.85 million shares. The resulting net proceeds from the offering are expected to be around $179 million, US said ( ATWOnline, Aug. 15).
SAS Group reported a SEK411 million second-quarter loss, reversed from a SEK607 million profit in the year-ago period, and announced enhancements to its Profit 2008 recovery program featuring an additional SEK400 million in savings and the grounding of seven more aircraft. "The reasons for the decrease in earnings are well known," President and CEO Mats Jansson said. "Managing this highly challenging situation is currently the primary focus of the SAS Group and the entire air travel industry."
Ryanair CEO Michael O'Leary said yesterday that the LCC has "no interest" in bidding for London Stansted if BAA is forced to divest the airport, contradicting comments he made last week ( ATWOnline, Aug. 11). Speaking to media in Dublin, O'Leary claimed his remarks had been misinterpreted but that Ryanair would be happy to cooperate with any potential buyers. "We've offered to build a second terminal in Stansted in the past and double the traffic. But the BAA told us to go away," he said.
Fly540 F-27 crashed on its way to Mogadishu from Nairobi, killing all three occupants--both pilots and an engineer. Flight Safety Foundation's Aviation Safety Network said the 26-year-old aircraft was operating a cargo flight and crashed on approach. Xinhua news agency reported that it hit a telecommunications tower. The Kenyan carrier announced an ATR order last winter as it looks to expand its passenger operation ( ATWOnline, Feb. 7).
Turkish Airlines CEO Temel Kotil told Turkish TV network CNBC-e that THY is "interested in principle in the stake sale of Austrian Airlines" but that it has "not taken a decision on this," Reuters reported ( ATWOnline, Aug. 14). He also said it is interested in the 49% stake currently being offered in Bosnia's B&H Airlines.
El Al recorded a second-quarter net loss of $11.2 million, reversed from a $16.6 million profit in the year-ago period, as rising fuel costs mitigated record revenue. "During the second quarter, El Al faced the challenge of the international crisis in aviation," President Haim Romano said. "Fuel prices continued to soar, by about 80% [year-over-year] . . . During the quarter, the fuel component represented close to 40% of flight expenses and resulted in a significant growth in company expenditure." He added that the Israeli flag carrier faces "ever increasing completion. . .
Korean Air reported a second-quarter loss of KRW288.9 billion ($278 million), widened from a KRW214.4 loss in the year-ago quarter, as costs escalated faster than rising revenue. "Fuel expenses showed a sharp increase of 80.4% triggered by a soaring fuel price and a weakening Korean won," KE said, adding that a "weaker economic backdrop" slowed traffic growth, particularly in the international passenger sector.
American Airlines firmed up commitments for 26 new 737-800s comprising 20 converted options and six new orders, Boeing announced yesterday. The six new aircraft will be part of the accelerated fleet plan and MD-80 replacement program announced earlier this week ( ATWOnline, Aug. 14). AA now has ordered 36 -800s this year and is "accelerating deliveries of airplanes booked in prior years," according to the manufacturer.
Deutsche Post World Net CEO Frank Appel defended subsidiary DHL's proposed plan to shift its US air lift from ABX Air and Astar Air Cargo to rival UPS, saying criticism from US politicians over potential job losses at DHL's US air hub in Wilmington, Ohio ( ATWOnline, Aug. 14), misses the bigger picture and that there are no grounds for an antitrust review.
Oneworld partners American Airlines, British Airways, Iberia, Finnair and Royal Jordanian yesterday confirmed that they filed for worldwide antitrust immunity from the US Dept. of Transportation and notified the appropriate regulatory authorities in the EU.
US FAA yesterday proposed civil penalties against American Airlines totaling $7.1 million for allegedly operating aircraft "in violation of FAA regulations" and for alleged "past deficiencies in its drug and alcohol testing program." The agency said that in December 2007 AA "improperly defer[red] maintenance on safety-related equipment" on MD-83s and flew the aircraft 58 times, including 10 revenue flights after an FAA inspector discovered the problem relating to the planes' autopilot systems and notified the airline.
Syrian Arab Airlines intends to buy a combined 50 A320s, A330s/A340s and A350s, Syrian Deputy Prime Minister for Economic Affairs Abdallah Dardari told Bloomberg News in Damascus. "We are now in agreement with the French to completely restructure the national airline, now that we have an agreement to buy Airbus planes,'' Dardari said, adding that Syriain will lease four aircraft in the next 18 months and take delivery of the first 14 ordered aircraft in the 2010-18 timeframe, with the remainder arriving by 2028.
US Airways announced that Merrill Lynch will purchase 19 million shares of US common stock in an underwritten public offering at $8.50 per share. Net proceeds after the underwriting discount and estimated offering expenses will be approximately $155 million to be used for "general corporate purposes," US said. ML will have a 30-day option to purchase an additional 2.85 million shares to cover overallotments. The offer is expected to close Aug. 19. Trading in US shares was halted yesterday.
Rolls-Royce and Goodrich yesterday signed a letter of intent to form a 50/50 joint venture to develop and supply engine controls for Rolls aero engines. JV will encourage synergies, combining Goodrich's UK-based engine controls design and manufacturing business and Rolls' controls integration expertise. Goodrich will retain the JV's aftermarket products and services. The initiative "reflects the importance we attach to the engine control system in optimizing engine performance," Rolls Director-Engineering & Technology Colin Smith said.
Copa Airlines and Aero Republica parent Copa Holdings reported second-quarter net income of $30.4 million, down 1.5% from $30.9 million in the year-ago period, as its aggressive expansion continued to pay off even in the face of high fuel costs. Copa said the "strong results" were reflective of fast-growing revenue that allowed it to maintain "its position among the world's most profitable airlines" even as fuel costs rose by $37 million year-over-year. Operating revenue soared 26.6% to $297.9 million and operating income was $31.2 million, down 20% from $39 million last year.
Austrian Airlines Group majority shareholder OIAG launched the tender for its 42.75% stake in the flag carrier, informing potential bidders that they have until Aug. 24 to declare their interest, according to press reports ( ATWOnline, Aug. 13).
Sabre Airline Solutions signed multimillion-dollar contracts with Vietnam Airlines to provide its SabreSonic reservations system and collaborate with IBM to boost online shopping capabilities.
Porter Airlines, which launched Q400 service in October 2006 from Toronto City Centre Airport, is eyeing additional destinations in the US, the first of which likely will be announced in the fall. "Boston and Chicago [Midway] are on the top of the list but Washington [National] and Philadelphia are close behind," Porter President and CEO Robert Deluce told ATWOnline. "All of them are on our radar screen for the short term." The US destinations need to be within 500 nm. of Toronto and have enough O&D traffic to support the service, he added.
