Alaska Air Group, parent of Alaska Airlines and Horizon Air, said in a US Securities and Exchange filing yesterday that it "currently expect[s] our consolidated adjusted net income in the second quarter and full-year 2007 to be below 2006 amounts." The company posted a second-quarter 2006 profit of $55.5 million and a full-year loss of $52.6 million ( ATWOnline, Jan. 26). It also said it has found a buyer for its 20 owned MD-80s and has closed on sale and short-term leaseback transactions for 16 of them.
US FAA Administrator Marion Blakey yesterday warned of a "tough summer" for travelers, predicting that high traffic and intense weather likely will lead to extensive delays and cancellations, and said the agency will employ technology and flexible flight management procedures in an effort to reduce disruptions.
FedEx has not ruled out completely its interest in an A380 freighter even though it canceled its $2.3 billion order for 10 last November. "Of course we will look at it again," Chairman, President and CEO Fred Smith said yesterday in Memphis. "It's a great airplane--a marvelous piece of engineering." But he said the delays besetting the program have rendered a freighter version an option for the more distant future.
US State Dept. Deputy Assistant Secretary-Transportation Affairs John Byerly said offering cabotage rights to EU carriers for cargo flights is under consideration and could be in play during the next round of EU-US open skies talks. While noting that no consensus administration policy has been developed, the US's lead air services negotiator said cargo cabotage is "less threatening" and may not encounter the strong opposition from labor and Congress that passenger cabotage will ( ATWOnline, May 23).
Qantas, it turns out, is worth approximately A$17 billion ($13.96 billion), or 53% more than the Airline Partners Australia consortium offered shareholders in its A$11.1 billion bid that collapsed this month ( ATWOnline, May 18). Ironically, the new A$8.57-per-share valuation announced yesterday came from Macquarie Bank, which led APA. Subsequently, QF shares have risen to a high of A$5.43.
Thai Airways reported net earnings of THB4.23 billion ($127.5 million) in the second fiscal quarter ended March 31, a 31.8% plunge from a profit of THB6.21 billion in the year-ago period. It did not offer a full explanation but did say that last year's result was boosted by a strong baht. Revenue climbed 7.6% to THB49.6 billion, costs rose 7.1% to THB43.42 billion and operating profit was up 10.6% to THB6.18 billion. Profit for the fiscal semester fell 17.5% to THB8.26 billion.
Skybus Airlines ( ATWOnline, April 25) launched operations yesterday with a morning flight from its Columbus base to Burbank aboard an A319. It was slated to operate flights later in the day to Kansas City and Portsmouth, N.H. The low-cost startup claims it will sell 10 $10 tickets (excluding taxes and fees) for each flight, but it also will charge at least $5 per checked bag.
Lufthansa yesterday announced a partnership with TACA that will further the German giant's Latin American reach. LH unveiled a codesharing deal with Brazil's TAM Monday ( ATWOnline, May 22). The TACA deal is similar and will comprise codesharing on both domestic and international routes and the possibility of future links between loyalty programs, flight schedules and lounges.
Royal Brunei Airlines named Ray Sayer CEO effective Sept. 1. Sayer worked for British Airways in Brunei in the 1980s and most recently was CEO of Bahrain Airport Services.
AirAsia will transfer its MRO from Singapore to the new Sepang Aircraft Engineering, which plans to launch in Malaysia in October, CEO Tony Fernandes told reporters in Kuala Lumpur. The airline expects to save 15%-20% off its maintenance bill. SAE CEO Budriz Putra said the new MRO company, which has a two-hangar facility, hopes to lure other regional low-fare carriers, including ones from India, the Bernama national news agency reported.
GCAT Flight Academy is the name of the training organization created by the merger of GE Commercial Aviation Training and SAS Flight Academy. STAR Capital Partners acquired SAS Flight Academy outright and purchased 80% of GECAT in a deal it valued at more than $275 million ( ATWOnline, Feb. 13). It said the combination created the largest flight training organization in Europe and the third-largest in the world.
China Eastern Airlines announced yesterday that trading in its H shares was suspended pending the release of a "price sensitive" announcement. It has been negotiating the sale of a stake to Singapore Airlines ( ATWOnline, May 22).
A little more than one year removed from bankruptcy and fresh from a $152 million first-quarter loss, United Airlines is focusing on repairing its balance sheet and improving its product rather than fleet renewal, Senior VP-Alliances, International & Regulatory Affairs Michael Whitaker said.
GE Aviation expects to have the first CF34-10A with 18,000 lb. of thrust to power the ARJ21 ready for testing in the fourth quarter. First flight of the aircraft, produced by China's AVIC I Commercial Aircraft Co., is expected next year. To date there are 71 orders for the jet ( ATWOnline, April 19). GE expects to deliver about 500 CF34s this year, according to program GM Chuck Nugent.
British Airways, which already holds 10% of Iberia, yesterday confirmed it has joined a consortium considering a bid for the Spanish carrier. "British Airways has joined with TPG Capital, Vista Capital, Inversiones Ibersuizas and Quercus Equity to investigate a possible consortium offer for Iberia," the airline said in brief stock exchange statement, adding that there is "no guarantee that a formal bid will be made."
China Southern Airlines will launch seven international routes from Guangzhou between July and November. New destinations are Yangon, Phuket, Siem Riep and Vientiane (July); New Delhi (September); Sendai and Sapporo (late October).
LAN Airlines flew 1.8 billion RPKs in April, up 29.5% from the year-ago month. Capacity rose 26.1% to 2.53 billion ASKs and load factor increased 1.9 points to 71.1%.
Foreign ownership regulations will be the primary focus of the next round of US-EU open skies talks, but the US is not likely to consider giving cabotage rights to EU carriers, the Americans' lead negotiator said yesterday.
Air India will be the name of the new state-owned airline resulting from the merger of the old Air India and Indian Airlines ( ATWOnline, April 2), Minister of Civil Aviation Praful Patel announced yesterday, adding that the new company will have its registered office in New Delhi, its corporate office in Mumbai and headquarters for domestic operations and most strategic business units in Delhi.
While several Chinese low-cost carriers have struggled, newcomers East Star Airlines and Spring Airlines have started strong. East Star reported net earnings of CNY11.4 million ($1.5 million) on CNY281 million in revenue in its first year of operation, while Spring posted a CNY30 million profit in its recently completed second year.
Final assembly of the first 787 began yesterday in Everett, Boeing announced, with rollout scheduled for July 8. Eventually, the company intends to assemble one aircraft every three days. "The 787 production system is the culmination of the lessons we've learned building previous airplanes," 787 VP-Manufacturing and Quality Steve Westby said. "Using composites on the 787 airframe has a number of manufacturing advantages.
MNG Technic signed an agreement with Turkmenistan Airlines to provide base maintenance services and hangar space for the carrier's 757, 737-300 and 717 fleets.
News from Travel Technology Update: There is little agreement among airlines on either side of the Atlantic on whether the European Commission's CRS Code of Conduct should be amended or abolished altogether. The airlines, along with GDS companies and organizations representing travel agencies and consumers, weighed in on the issue following a call for public consultation by the EC, which was closed on April 27.
TAM signed an MOU yesterday with Lufthansa to explore "possible close cooperation" that will include "the implementation of codesharing on domestic and international routes" as a first step.
