Gol, which operates the LCC of the same name and Varig, issued a revised full-year guidance Friday indicating a significant decline in projected earnings due to "flight network alterations and higher fuel prices." Full-year revenue is expected to be BRL5.2-BRL5.4 billion ($2.83-$2.94 billion), down from the previously forecast BRL5.5-BRL5.7 billion, while load factor is expected to fall to 64%-66% from 68%-70%. As a result, operating margin should drop to 7%-11% from the previous guidance of 12%-15% and earnings per share will fall to BRL1.60-BRL2.10 from BRL3-BRL3.50.
Transaero said it received Russian government approval to operate scheduled service from Moscow Domodedovo to the New York City area and Los Angeles beginning next year. Russia's second-largest international carrier, Transaero already flies to Toronto and Montreal in North America and serves nearly 80 destinations overall with 13 737 Classics, seven 767-200s/-300s, seven 747-200s/-300s and one Tu-214.
US and Australia announced last week "their intention to liberalize relations by initiating bilateral discussions to conclude a comprehensive open skies agreement." The statement was issued jointly by Australian Deputy Prime Minister Mark Vaile and US Secretary of Transportation Mary Peters. Negotiations will begin before year end and an agreement is expected early next year. An existing open skies agreement between the countries covers only cargo services.
SkyEurope Airlines will sell two 737-700s scheduled for delivery this month and next for a profit of $10 million that it will use to boost its sagging financial base during the winter season, Austrian media is reporting. The company reportedly also will sell its aircraft handling unit at Budapest ( ATWOnline, Sept. 6), where it will close its base this month, for an additional €3.5 million ($4.9 million).
Harbin Embraer Aircraft Industry, the joint venture between Embraer and AVIC II, delivered its first ERJ-145 and the 1000th unit of the type overall to Hainan Airlines Group subsidiary Grand China Express. GCE last year placed an order for 50 145s to be manufactured by HEAI and 50 E-190s to be manufactured in Brazil ( ATWOnline, Aug. 31, 2006).
Mesa Air Group took delivery of the first of 14 CRJ900s to be flown by Freedom Airlines for Delta Connection. Revenue service will start Nov. 1 with two 76-seaters operating out of New York JFK and Dallas/Fort Worth. Remaining 12 aircraft are scheduled for delivery over the next 16 months.
US Airways last week confirmed its June order for 92 Airbus aircraft, signing three definitive purchase agreements with the manufacturer, including one for 22 A350 XWBs. Separately, it told US SEC that it expects CASM to rise in the second half of 2007, including by an estimated 4% in the fourth quarter.
Mexicana late Wednesday submitted a takeover bid for AeroMexico valued at MEX2.17 billion ($199 million), topping recent bids made by the Saba family and Banamex.
An Africa One An-26 freighter crashed yesterday in a heavily populated area of Kinshasa shortly after takeoff, killing as many as 25 people onboard and killing or injuring an unknown number on the ground. The aircraft was en route from the DR Congolese capital to Tshikapa but reportedly was airborne only briefly before crashing into multiple houses and catching fire.
VGS Aircraft Holding (Ireland) acquired two 757-200s from GECAS. Aircraft are leased to Thomas Cook until April 2013. VGS is owned jointly by Volito Aviation and an affiliate of the Goldman Sachs Group.
Aviareps, the airline and tourism marketing organization, is expanding its profile in the US to support its growing activity there. According to founder and CEO Michael Gaebler, revenue from US operations doubled last year compared to 2005 as total sales rose 24% to €73 million ($103.6 million).
Snecma Services Brussels entered into a three-year time-and-materials engine MRO agreement with KD Avia based in Kaliningrad covering the CFM56-3s powering the airline's seven 737 Classics. Under the agreement, Snecma also will ensure the availability of a replacement engine.
Shanghai-based Junyao Airlines, benefiting from robust domestic growth and yuan appreciation, earned a net profit of CNY18 million ($2.4 million) from January to August operating with an average load factor of 80%, President Wang Junjin revealed this week on the occasion of the carrier's one-year anniversary. He expressed satisfaction with the result considering the company's youth. Buttressed by the solid result, Junyao is seeking to sell a 20%-25% stake to an international investor. "We hope to reduce our debt ratio through private placement," Wang explained.
Boeing delivered 109 commercial aircraft in the third quarter, up from 100 in the year-ago quarter. Deliveries comprised 81 737NGs, five 747s, three 767s and 20 777s. Year-to-date deliveries totaled 329, up from 295 in the first three months of 2006.
Ural Airlines confirmed an MOU signed at the Paris Air Show for seven A320s, Airbus announced. Ural is a new Airbus customer. Aircraft will accommodate 160 passengers in a two-class configuration. The airline, which currently operates two leased A320s, has not selected an engine.
JetWorks Leasing entered into a comprehensive Aircraft Portfolio Management contract with TAIL Finance covering four MD-88s, six 757-200s and nine 767-300s, all of which currently are on lease.
Spanair yesterday confirmed that Chairman Gonzalo Pascual resigned in order to launch a full bid for the airline, which is owned by SAS, according to press reports from Madrid. Pascual is chairman of Grupo Marsans, the largest tourism conglomerate in Spain, and co-founder of Spanair. The airline also said that Gerardo Diaz Ferran, Pascual's business partner and a main shareholder in Marsans, resigned as CEO of Spanair and D.
Bombardier said that an estimated 149 of the global fleet of 165 Q400s have returned to full service following SAS's and Wideroe's combined reintroduction of up to 11 aircraft yesterday ( ATWOnline, Oct. 4).
UK and Singapore concluded a significant aviation services agreement that removes all restrictions on flights operated by airlines of both countries and includes beyond and domestic rights in the UK. The deal was reached almost two decades after Singapore first proposed it. The Centre for Asia Pacific Aviation said the deal "virtually guarantees Singapore Airlines will jettison its [49%] stake in Virgin Atlantic and mount additional services to Heathrow and beyond to the US in a staged manner from March 2008, when the UK-Singapore agreement takes effect."
United Airlines flew 9.18 billion system RPMs in September, down 0.8% from the year-ago month. Capacity dropped 1.7% to 11.44 billion ASMs and load factor was up 0.7 point to 80.2%. Delta Air Lines flew 9.79 billion system RPMs in September, up 7.8% from the year-ago month, against a 3.6% rise in capacity to 12.61 billion ASMs. Load factor rose 3 points to 77.6%. Northwest Airlines flew 6.24 billion consolidated RPMs in September, a 1.1% increase from the year-ago month. Capacity declined 1.7% to 7.45 billion ASMs and load factor rose 2.3 points to 83.7%.
Alitalia scheduled a board meeting for Oct. 8 during which it will discuss a report from Citi Group "regarding a survey of potential investors who are in a position to acquire control of the company."
EasyJet will open two new bases in France next year and invest €600 million ($849.5 million) to 2011 to reinforce its position as the country's "only significant low-cost airline" and its second-largest carrier. "With a low-cost penetration of 17% at half the European average [33%], France's air transport market still suffers from a lack of affordable, direct air links and therefore offers huge opportunities for easyJet," the LCC said.
