DHL's plan to shift its US air lift from ABX Air and Astar Air Cargo to rival UPS leaves the fate of both airlines and the DHL-owned Wilmington, Ohio, air hub in limbo, with thousands of job losses and dozens of aircraft sales possible. The transition from ABX and Astar to UPS likely will take 12-18 months ( ATWOnline, May 29). DHL hopes to finalize a contract with UPS within the next three months and likely won't be able to make any definitive moves until the exact language is determined.
ACE Aviation Holdings, which was created in 2004 as part of Air Canada's restructuring and subsequently spun off AC and regional Jazz as independent entities, said yesterday that it has sold its remaining stakes in Aeroplan and Jazz as part of its plan to wind down operations within the next 3-6 months pending disposal of its assets ( ATWOnline, May 12). It sold 19.9 million Aeroplan shares for C$349.3 million ($351.7 million) and 11.7 million Jazz units for C$85 million.
Air Berlin narrowed its first-quarter net loss to €59 million ($92.5 million) from €66.4 million as rising sales and hedges helped offset the "significant" jump in fuel costs. Sales revenue for the group, which includes LTU and Belair, rose 4% to €654.5 million and its operating loss of €67.7 million represented a 20% improvement from an €85 million deficit in the year-ago period.
Iberia might reassess its offer for Spanair, which it launched in February ( ATWOnline, March 26). "The truth is the clock is ticking. The environment is changing. We have to consider what the future of our offer is within this new market environment," Chairman Fernando Conte told a news conference before IB's annual shareholders meeting, Reuters reported.
Dnata Cargo, Kanoo and SDV International Logistics yesterday entered into a JV to bolster logistics services in the UAE. Kanoo and Dnata will split 51% of the venture and 49% will be owned by SDV.
American Airlines yesterday began specifying the services it is cutting following last week's announcement that 40-45 mainline aircraft and 35-40 regional aircraft will be parked this year in an effort to cope with "an extraordinarily difficult environment" characterized by "skyrocketing fuel prices and a softening economy" ( ATWOnline, May 22). Services to be discontinued include New York JFK-London Stansted from July 2, Chicago O'Hare-Buenos Aires from Sept. 3, Boston-San Diego from Sept. 3 and ORD-Honolulu from Jan. 5, 2009.
Qantas will slash capacity by 5% due to rising fuel prices and warned the Australian Stock Exchange yesterday that it plans to cut its fleet, network and workforce as it expects its fuel bill to increase by more than A$2 billion ($1.92 billion) in the 2008-09 fiscal year.
Gulf Air ordered 20 A330-300s and 15 A320s, a commitment that will more than double the Bahraini carrier's Airbus fleet, the manufacturer announced yesterday. The airline already operates 10 A320s, six A330-200s and nine A340-300s and in January signed a contract with Boeing for 16 787s ( ATWOnline, Jan. 21).
Iberia Maintenance signed a long-term agreement with DHL to overhaul more than 80 RB211-535C37 engines powering 34 aircraft operated by DHL Air and European Air Transport.
GKN Aerospace and Rolls-Royce established a joint venture R&D company to explore the use of composite materials in aero engine fan blades under a deal announced yesterday. Funding is put at $11 million, with Rolls claiming a 51% stake. JV activities will build from composite blade applications of the VITAL program.
Italian administrative court ordered that a new tender be organized for Volare within 15 days, confirming that Alitalia's 2006 acquisition of the LCC violated procedure, Reuters reported. AZ rival Air One also wanted Volare and brought the case to court ( ATWOnline, June 6, 2006).
DHL yesterday unveiled a $2 billion restructuring of its loss-making US express business that includes shifting its air lift capacity in the market to rival UPS, a potentially devastating blow to ABX Air and Astar Air Cargo, which currently provide the German express giant's US lift.
Air New Zealand announced that its pre-tax profit for the year ending June 30 will fall by more than 23% because of soaring jet fuel prices. It said earnings will be less than NZ$200 million ($157.8 million), down from NZ$259 million the previous year. Last month ANZ reduced its full-year profit forecast to NZ$200-NZ$220 million ( ATWOnline, April 28). It raised fares last month and from September it is cutting capacity on its Auckland-London Heathrow service by switching to 777-200ERs from 747-400s.
Cathay Pacific Airways plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. COO John Slosar told Hong Kong media that the carrier is considering a variety of replacement aircraft and that "the A380 is also an option." In the interim, it will raise its fuel surcharge 37% from June 1 in an effort to negate 40%-50% of the increase in fuel prices. CEO Tony Tyler said fuel now accounts for 40% of CX's total operating costs, up 10 points from last year.
Mesa Air Group will file for bankruptcy by July 20 if Delta Air Lines is allowed to terminate its service agreement with the Phoenix-based regional, according to a report by the Associated Press. "We are prepared to file for bankruptcy," Mesa President and COO Michael Lotz reportedly told a US district judge at an Atlanta hearing Tuesday.
Record revenue was not enough to offset a difficult economic environment and a one-time provision related to potential liability for anticompetitive cargo activities as El Al sank to a $49.9 million first-quarter loss that was more than three times the $15.3 million lost in the year-ago period.
Former EADS co-CEO Noel Forgeard was detained by French police yesterday in relation to the ongoing probe into insider trading allegations regarding the June 2006 A380 delay announcement.
JetBlue Airways will defer delivery of 21 A320s to 2014-15 from 2009-11 to "help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations," CEO Dave Barger said.
British Airways announced a further postponement of the transfer of most of its long-haul services to London Heathrow's Terminal 5. The new terminal "is working well, and this phased move has been planned in the interests of our passengers and the smooth operation of Heathrow over the busy summer period," BA said.
Delta Air Lines flight attendants rejected representation by the Assn. of Flight Attendants, with more than 60% of eligible cabin staff in favor of continuing their "direct relationship" with the carrier, Delta announced.
Kalitta Air 747-200F crashed over the weekend as it attempted to take off from Brussels en route to Bahrain, coming to a stop beyond the end of the runway and splitting into at least two pieces. Although reports vary, it does not appear that the aircraft ever was fully airborne. Its fuselage split in the middle and it likely will be written off. All five crew escaped and four were hospitalized with what were described by local officials as minor injuries.
Wataniya Airways is the name of a new short-haul premium carrier based in Kuwait that will launch service next January and offer point-to-point flights to Persian Gulf and Middle East destinations. It initially will operate two A320s with 122 seats and what it claimed will be the "lowest seat density of an A320 of any scheduled airline in the world."
Regional Express (Rex) of Australia reported an A$8.2 million ($7.9 million) pre-tax profit in the fiscal third quarter ended March 31, up 7.9% from the A$7.6 million earned in the year-ago period. Executive Chairman Lim Kim Hai said Australian regional aviation "encountered a veritable tsunami in the past few months" with rising oil prices, economic difficulties and a pilot shortage ( ATWOnline, May 8). Lim said Rex "performed beyond our expectations" in part because it remains debt free.
Moskovia Airlines An-12 freighter crashed Monday in a forest 30 km. from the Siberian city of Chelyabinsk, from which it had departed just 10 min. earlier en route to Perm in the Ural Mountains, killing all nine crew aboard. The aircraft reportedly was flying without cargo, having been unloaded at Chelyabinsk. Russia's Emergency Situations Ministry said that 8 min. after takeoff, "the crew reported to the air traffic controller that smoke was in the aircraft cabin." The freighter disappeared from radar 2 min. after that report and wreckage was found hours later in the forest.
