Republic Airways President and CEO Bryan Bedford said the regional is "definitely looking" at larger jets, specifically E-190s and CRJ1000s, if it can find interested customers. "I think there is an opportunity out there. We are looking out at least two years for where the opportunity will be," he said at last week's Regional Airline Assn. conference in Memphis. But he pointed out that it is difficult to assess the prospects for larger aircraft because it is unclear if existing scope clauses will allow the operation of aircraft beyond the 70-seat range.
CSA Czech Airlines said it will avoid entering the high season "in a hole for the first time in several years" thanks to a CZK122 million ($5.8 million) first-quarter loss that was CZK500 million better than forecast in its business plan, which projected a deficit similar to that incurred in the first three months of 2006. "In terms of revenue, the first three months are problematic for all airlines. In that time period we achieved better revenue and greater cost savings than planned," President Radomir Lasak said.
Aeroflot, which remains alive in the bidding for SkyTeam partner Alitalia (see story above), also has made an offer to buy Serbia's Jat Airways, according to press reports. Serbian Minister of Infrastructure Velimir Ilic told reporters in Belgrade that SU offered to settle Jat's debts, purchase new aircraft and maintain the carrier's workforce. The Russian carrier reportedly is not the only interested buyer. "So far Aeroflot has made the best and the most concrete offer," a Jat official told Reuters.
The Alitalia board decided to move forward with a €197 million ($264.9 million) writedown of the value of the carrier's fleet, a step it declined to take in March when releasing its full-year financial results but that became necessary when it decided it had to "draw up a new and reliable business plan" ahead of the Italian government's sale of its AZ stake. The decision deepened the company's full-year loss to €625.6 million from the €405.2 million announced two months ago and the €167.8 million suffered in 2005.
Air France KLM's 2.4% decline in consolidated net earnings to €891 million ($1.2 billion) in the fiscal year ended March 31, which compares to a €913 million prior-year profit boosted by the sale of its Amadeus stake, will not slow the airline, which yesterday announced an aircraft commitment worth approximately $7 billion.
SkyWest Airlines President Chip Childs said at this week's Regional Airline Assn. conference in Memphis that the carrier will add 27 aircraft this year and expects to hire some 3,000 new employees. SkyWest in April began operating in a codeshare arrangement with Midwest Airlines, which includes onboard baking and serving of Midwest's trademark cookies, he said ( ATWOnline, April 3). SkyWest still is trying to master baking and serving cookies by a single flight attendant on a short-haul CRJ flight.
Air China flew 5.57 billion RPKs in April, up 12% on the year-ago month. Capacity climbed 11.5% to 7.19 billion ASKs, lifting load factor 0.3 point to 77.5%.
Delta Air Lines yesterday announced an order for 14 CRJ900s valued at $511 million and said it will place the aircraft with regional subsidiary Comair, apparently quelling speculation that it would attempt to sell the Cincinnati-based carrier.
Cebu Pacific Air ordered six 72-seat ATR 72-500s plus eight options in a deal worth more than $250 million, the manufacturer said. The aircraft will enable the carrier to operate into more Philippine airports that are restricted by shorter runways. President and CEO Lance Gokongwei said the order "is a continued manifestation of Cebu Pacific's commitment to bring air travel closer to more Filipinos and to bring them to more destinations which we cannot operate to at the moment."
Air Line Pilots Assn. announced that its executive board voted by an 80% margin to end the union's "longstanding" support for US FAA's Age 60 retirement rule ( ATWOnline, April 11). "In the face of concerted efforts to change the rule in Congress and the FAA, the ALPA executive board directed that union resources be committed to protecting pilot interests by exerting ALPA's influence in any rule change," the union said.
Spanair named Mexicana de Aviacion Chief Commercial Officer Sergio Allard Barroso CCO, effective in July. Aerospace Industries Assn. said President and CEO John Douglass will retire at year end following nine years at the helm. No replacement was named.
British Airways said it will invest more than £25 million ($49.5 million) for 55 new airport vehicles as part of its March 2008 move to London Heathrow's new Terminal 5. BA said the vehicles "will help. . .reduce its ground emissions at Heathrow and improve its punctuality performance." The order comprises 15 vehicle types. BA said the number of ground vehicles required will fall by just under 40% as the result of the move to T5, from 1,300 this year to fewer than 800 in 2010.
SAS Sverige said the Swedish Salaried Employees' Union/Scandinavian Cabin Crew Assn. rejected a mediator's final bid, leaving open the employees' threat of work action today ( ATWOnline, May 17). "We are open to solutions that involve changes in employment conditions and/or salary levels," SAS Sverige CEO Anders Ehrling said. "However, this requires that we keep within the framework of 10.2% that the [SEU] itself defined for this year's collective bargaining."
Ryanair will establish its 20th European base at Bristol in November. The LCC will base two new 737-800s there and launch 13 new routes, lifting the number of routes it serves from the airport to 16. New destinations are Derry and Milan Orio al Serio (daily); Budapest, Knock and Wroclaw (four-times-weekly); Bratislava, Dinard, Katowice, Porto, Poznan and Riga (thrice-weekly), and Rzeszow and Salzburg (twice-weekly).
Aeroflot posted a $69.3 million profit in the first quarter under IFRS, more than double the $32.2 million earned in the year-ago quarter, Russia's AK&M reported. Revenue rose 37% to $662.8 million and costs were up 21% to $52.8 million, lifting operating profit to $110 million from $24.4 million in the first three months of 2006.
Avion Aircraft Trading placed a firm order for eight A330-200 freighters, increasing its MOU commitment by two. The order follows finalization of a first leasing arrangement with Icelandair Cargo for four A330-200Fs, Airbus said. Deliveries will start in 2010. No engine type was selected.
Singapore Airlines joined China Eastern Airlines in suspending trading of its shares Tuesday ( ATWOnline, May 23), saying it "is in an advanced stage of discussions for a potential investment," thereby deepening widespread speculation that it is on the verge of acquiring a 25% stake in CEA. According to some Hong Kong press reports, negotiations already have closed and CEA is set to make an announcement by Friday, although its officials continue to say publicly that a deal has not been reached.
Embraer yesterday announced the launch of the Advanced Range versions of the E-170 and E-175 and Northwest Airlines as the launch customer. The first 10 of the 36 175s NWA ordered last fall ( ATWOnline, Oct. 6, 2006) will be the Long Range version and the remainder will incorporate AR structural provisions off the assembly line. The LRs later will be retrofitted to the AR version.
Cathay Pacific Airways and Dragonair flew a combined 6.64 billion RPKs in April, a 2.3% increase on the year-ago month. Capacity rose 1.2% to 8.26 billion ASKs and load factor was up 0.9 point to 80.4%. Hawaiian Airlines flew 662.9 million RPMs in April, up 20% on the year-ago month, against an 18.9% increase in ASMs to 755.4 million. Load factor improved 0.9 point to 87.8%.
The US and China yesterday announced the establishment of a new air services accord between the countries that will more than double the number of passenger flights by 2012 and offer airfreight operators "greatly expanded commercial freedom," according to the US Dept. of Transportation. "Piece by piece, we are making it easier, cheaper and more convenient to fly people and ship goods between our two countries," US Secretary of Transportation Mary Peters said.
Jetstar Airways' codeshare arrangement with Japan Airlines on Jetstar's daily Sydney-Osaka Kansai-Brisbane A330 service, a first for the value carrier involving a partner airline outside of Qantas Group, will commence selling today.
AirAsia's high pace of growth and strong profitability continued in its fiscal third quarter ended March 31 with a net profit of MRY86.9 million ($25.6 million), more than five times the MRY14.1 million earned in the year-ago quarter, on a 53% surge in revenue to MRY396.2 million.
AirTran Airways yesterday announced an order for 15 737-700s for delivery in 2011-12. The carrier now has ordered 115 of the type. It currently operates 45. Chairman and CEO Joe Leonard said the order "will provide the needed aircraft that will allow the airline to move forward with our strategic expansion while maintaining our business model."
Brussels Airlines, the result of the merger of full-service carrier SN Brussels Airlines and LCC Virgin Express, has established five priorities in its effort to reinforce its profitability, which CEO Philippe Vander Putten said is at an unacceptably low level.
MacAir Airlines took delivery of Australia's first ATR, a 42-500, for use on its routes in Queensland. The carrier operates a mixed fleet of 14 turboprops to 36 destinations, offering scheduled services as well as flights to the mining community.
