Airlines of Latin America and the Caribbean region are enjoying strong traffic demand and face a bright future, Merrill Lynch airline analyst Michael Linenberg told attendees at the third annual Latin American Airlines Leaders Forum sponsored by ALTA (Asociacion Latinoamericana de Transporte Aereo) yesterday in Cancun.
TAM has changed its approach to ticketing, launching a new "fare profiles" system yesterday that will allow passengers to purchase tickets based on specific needs. For flights to Brazilian destinations, passengers "will be able to choose promotional prices or other benefits pertaining to a given profile," the carrier said in a statement. Each of the five profiles (Promo, Light, Flex, Max and Top) presents "clear characteristics and rules" from which customers can choose.
British Airways said yesterday that one of the three 767s removed from service following the discovery of traces of a radioactive substance during the UK government's investigation of the death of former Russian spy Alexander Litvinenko ( ATWOnline, Nov. 30) has been cleared to resume flying. BA said it hopes to have the second aircraft back by this weekend, while the third will fly from Moscow to London Heathrow today to undergo testing.
Qantas said late yesterday in a stock exchange filing that it expects its pre-tax profit for the fiscal year ending June 30, 2007, to be 25%-30% higher than the A$480 million ($377.3 million) earned in the 12 months ended June 30, 2006. The increase comes "as a result of strong trading conditions and subject to fuel prices remaining around current levels," the carrier said.
Iberia appears to be more eager to participate in European airline consolidation than oneworld partner and shareholder British Airways, although the Spanish carrier dismissed reports that it is dissatisfied with its UK partner.
US Airways presented its case for a takeover of Delta Air Lines yesterday to DL management and representatives of its creditors' committee ( ATWOnline, Nov. 29). US Airways Chairman and CEO Doug Parker said, "We reviewed our offer and had a chance to engage in discussions on the many facets of this proposal. While we recognize the steps that Delta management has taken, we are confident that our proposal for a 'New' Delta will create more value than a standalone plan."
Switzerland officially joined EASA yesterday, becoming the fourth non-EU country to adopt EU aviation safety legislation. Norway, Iceland and Liechtenstein are the others.
Hawaiian Airlines signed a letter of intent to purchase three of seven 767-300ERs currently leased from an affiliate of AWAS Aviation Services. The carrier also amended the leases for the remaining four AWAS aircraft. The purchases are expected to be finalized next month, subject to financing. One of the changes to the AWAS agreement was to remove a provision that would have allowed the lessor to exercise early termination options by the first of the year.
Frontier Airlines said that its flight attendants voted against representation by the International Brotherhood of Teamsters. Of 887 eligible flight attendants, 334 voted in favor of the IBT and two voted for alternative representation, the airline said. The vote follows four previous rejections of representation by the Assn. of Flight Attendants.
Grupo Aeroportuario del Centro Norte, the Mexican airports operator known as OMA, raised $375.8 million this week in an IPO in which Mexico's government divested its remaining 48% stake in the company, completing the privatization that began in 2000 ( ATWOnline, Nov. 16). The funds raised were higher than expected as the government sold its shares for $18 each. Shares will be listed on Nasdaq under OMAB. OMA operates airports in Monterrey, Acapulco, Mazatlan and Zihuatanejo plus nine other regional facilities.
El Al posted a third-quarter profit of $1.8 million, a plunge of 96.6% from a $52.2 million profit in the year-ago quarter, Reuters reported. Revenues declined 7.9% to $447 million.
Sales and deliveries of larger RJs and turboprops helped push Bombardier's overall net income to $74 million for the fiscal third quarter ended Oct. 31, reversing a loss of $9 million in the same period a year ago. Bombardier Aerospace reported a $43 million operating profit on revenues of $1.8 billion compared to a $31 million operating profit in the year-ago quarter. The number of aircraft deliveries remained relatively stable at 73 versus 74 in the 2005 period.
Delta Air Lines yesterday announced yet another employee recall, this one for approximately 200 additional pilots who will rejoin the carrier next year. DL already has issued two recalls for a total of 129 pilots this year ( ATWOnline, Sept. 12). Northwest Airlines flight attendants, represented by the Assn. of Flight Attendants, argued in a US appeals court this week for the right to strike over management's imposition of $195 million in annual concessions.
World Airways extended its leases with ILFC on six MD-11s (three passenger and three freighter) through March 2013-May 2014. Leases originally were set to expire in 2008 and 2009. North American Airlines, a subsidiary of World Airways parent World Air Holdings, extended leases for two 757-200ERs (one with ILFC and one with GECAS) until May 2013 and May 2014. Leases were scheduled to expire in 2007 and 2008.
American Airlines will abandon its services from Boston to Baltimore/Washington International and Orlando International on Dec. 13, according to The Boston Globe. AirTran Airways will begin operating the MCO service Dec. 21. AA still will serve 23 destinations from Logan and is working with local authorities on an upgrade of its facilities at the airport, the paper said. Frontier Airlines will launch daily San Francisco-Las Vegas service on Dec. 14.
KLM UK Engineering opened an expanded maintenance hangar at Norwich International Airport. KLM invested £1 million in the facility that now will be able to perform work on larger aircraft like 737NGs, and will add approximately 50 new jobs.
Some 200 Austrian Airlines Group pilots will leave the company voluntarily and take advantage of its Golden Hand Shake offer, which expired last weekend. Austrian newspaper Wiener Zeitung reported that some pilots will get up to €650,000 ($854,400) for taking the offer. According to reports, 400-600 flight attendants also face reduction and will receive up to 11 months salary if they leave voluntarily.
Ryanair increased its stake in Aer Lingus to 25.2% from 19.2%, which brings the LCC's holding in the recently privatized national carrier on a par with the 25.4% held by the Irish government.
Comair received US FAA certification to perform repair station MRO on third-party 50- and 70-seat CRJs. It will do the work at its Cincinnati/Northern Kentucky facility. It plans to achieve certification for its Orlando facility "in the coming months."
A380 successfully completed crosswind tests at Keflavik this month, carrying out five takeoffs and six landings in crosswinds measuring 40-56 kt. Type certification requires a minimum 23 kt.
Singapore Airlines took delivery of the first two of 19 777-300ERs and has not ruled out orders for the 777-200LR and possibly the 747-8. The airline accepted the aircraft, which feature a radical cabin upgrade, yesterday in Seattle and will take delivery of another four by Dec. 31.
British Airways said yesterday that three 767s used on short-haul routes have been removed from service indefinitely after the UK government informed the carrier Tuesday night that the aircraft were to be examined as part of the investigation into the highly publicized poisoning death of former Russian spy Alexander Litvinenko. BA said initial forensic testing confirmed that low traces of a "radioactive substance" were discovered aboard two of the aircraft.
Wizz Air completed a sale/leaseback transaction with GECAS for four new A320s, which will be delivered in the first half of 2008. They will be leased on an 11-year term. Wizz has 32 A320s on order plus 12 options and expects to operate 53 by 2012.
Horizon Air will replace 37-seat Q200 turboprops with 74-seat Q400s on flights from Seattle to various destinations in Washington and British Columbia from Jan. 28. Separately, Horizon and partner Alaska Airlines have introduced a Spanish language website. By early next year the carriers plan to offer Spanish at check-in kiosks and add Spanish-speaking reservations agents at call centers, among other initiatives.
