Dragonair is withdrawing from the Hong Kong-Bangkok route effective Sept. 27, flagging the first rationalization following its acquisition by Cathay Pacific Airways. New CEO Kenny Tang said the route "has not been performing to expectations for some time." Ryanair said its new Malta International Airport service will comprise flights from London Luton (daily from Oct. 31), Pisa (thrice-weekly from Oct. 31) and Dublin (thrice-weekly from Feb. 9, 2007). It said it expects to carry more than 200,000 passengers on the three routes in the first year.
EasyJet said it lost approximately £4 million ($7.6 million) as the result of last month's security alert as it canceled 469 flights Aug. 10-14. "In spite of this, easyJet maintains its current guidance for pre-tax profit growth for the full year ending Sept. 30 to be in the region of 40%-50%," it said. The LCC transported 3.1 million passengers in August, an 8.4% increase over the year-ago month. Load factor was up 0.9 point to 89.2%.
Qantas yesterday blasted a draft report from Australia's Productivity Commission that said it is too soon to tell whether regulatory restrictions on airport pricing removed in 2002 should be reinstated. The report called for six more years to study the current "light-handed" system. Qantas believes the system in place gives airports too much leeway to set landing and terminal rent fees, especially in major markets. Executive GM-Associated Businesses Grant Fenn said it was "particularly concerning" that Qantas's request that binding arbitration solve pricing disputes was rejected.
China Cargo Airlines executives have been detained and are under investigation by Shanghai prosecutors for allegedly taking more than CNY10 million ($1.3 million) in bribes. Chinese media reported that four officials of the China Eastern Airlines/China Ocean Shipping Group joint venture are suspected of receiving illegal payoffs to allocate cargo space on aircraft for "low" prices. Neither the airline nor the government is commenting officially.
Continental Airlines said yesterday that its application to launch daily Newark-Shanghai service in March 2007 ( ATWOnline, April 8, 2005) should be approved by the US Dept.
JetBlue Airways achieved an estimated 15% increase in passenger RASM in August, a figure that was "not as strong as anticipated," according to CEO David Neeleman. He said the security alert, Tropical Storm Ernesto and "lower-than-expected demand toward the end of the month" contributed to the result. JetBlue flew 2.22 billion RPMs in August, an 11.6% increase over the year-ago month. Capacity surged 20.1% to 2.65 billion ASMs and load factor fell 6.4 points to 83.7%.
Indian government is moving ahead rapidly with the merger of Air India and Indian Airlines. Indian media is reporting that consultant Accenture India, which has the brief to compile a feasibility report, is required to submit preliminary recommendations for the merger by Oct. 15. According to insiders at Indian, the tie-up should be complete by March 2008. The new company then would be the subject of an IPO.
BAE Systems, conceding that it would likely have to wait an "extended period" for the value of its 20% stake in Airbus to rise, decided late Wednesday to sell the holding to EADS for €2.75 billion ($3.52 billion), well below previous estimates that the stake was worth €4-€5 billion.
AerVenture, a joint venture between AerCap and Kuwaiti cargo startup LoadAir ( ATWOnline, Feb. 3), placed an order valued at $360 million for CFM56-5Bs to power the 30 A319s/A320s ordered late last year.
US FAA approved the AmSafe Child Aviation Restraint System safety device for use on commercial flights. The device features an additional belt and shoulder harness that wraps around the seat and attaches to the lap belt and is designed for children weighing 22-44 lb.
World Air Holdings, parent of World Airways and North American Airlines, posted a second-quarter net loss of $7.5 million, down from $5.5 million in net income in the year-ago quarter.
Air Berlin said that competition authorities approved its takeover of dba without restrictions ( ATWOnline, Aug. 18). AB CEO Joachim Hunold now will chair dba's board. Starting this week, dba flights can be booked through AB's website and call center.
Philippine Airlines told stockholders last week that the carrier will continue to push into new markets and modernize its fleet, with evaluations underway for acquisition of five regional widebody aircraft and three long-haul aircraft in addition to the order for 20 A320 family aircraft ( ATWOnline, Nov. 9, 2005) that will begin delivery this month.
TAP Portugal reached agreement with OMNI Aviation of Portugal for the sale of TAP's small leisure carrier White Airways for an estimated €5 million ($6.4 million). White operates one A310-300 and one L-1011-500. According to the terms, the ownership of the L-1011 is transferred to TAP, due for subsequent alienation, while OMNI will operate the A310 currently under lease.
VLM Airlines will launch an 11-times-weekly Antwerp-Manchester service beginning Oct. 30. It will add three F50s to operate the flights, bringing its fleet to 19 F50s. Jetstar Airways will replace Qantas on the Sydney-Townsville route from Oct. 29 with five weekly flights aboard an A320. Nok Air of Thailand will cancel 30 flights on Sept. 28 to avoid the expected chaos surrounding the opening of Bangkok's new Suvarnabhumi Airport.
Jet Airways opened its $15 million hangar at Mumbai Chatrapati Shivaji International Airport. It can handle C checks and major MRO on 737 family and ATR aircraft, accommodating two of the former and one of the latter at once. "This significant improvement in the maintenance infrastructure of Jet Airways will form a solid basis for the further expansion of the airline," CEO Wolfgang Prock-Schauer said. Separately, Jet this week unveiled its Sky Screen on-demand IFE system available in both classes aboard its 737-800s.
Oneworld redesigned its website that now features an interactive route map, more accessible schedules, country and language specific sites, itinerary planning aids and other enhancements.
Berlin-Brandenburg International, which aims to replace the city's fractured three-airport system with a single modern facility, was started yesterday as officials held a groundbreaking ceremony for the €2 billion ($2.57 billion) project slated to open in 2011. "BBI will greatly enhance Berlin's ability to compete on an international level; it will bring more visitors to the city, create international air connections and generate more jobs," Governing Mayor of Berlin Klaus Wowereit said.
AeroRepublica of Colombia is adopting the logo and livery of Copa Airlines. Both carriers are subsidiaries of Copa Holdings. "Our new image combines the best of both companies," said AeroRepublica CEO Robert Junguito. It is Colombia's second-largest domestic airline, offering service to 12 cities plus Copa's Panama City hub.
United Airlines flew 10.6 billion system RPMs in August, a 1.5% increase over the year-ago month. Capacity climbed 3.2% to 12.69 billion ASMs, dropping load factor 1.3 points to 83.5%. Gol flew 1.34 billion RPKs in August, a 72.4% increase over the year-ago month. Capacity rose 47% to 1.75 billion ASKs and load factor was up 11.3 points to 76.9%.
Swissport International renewed its deal with United Airlines for an additional five years and now will provide cargo services for the carrier at an eighth US airport, New York JFK.
Frontier Airlines placed a firm order with Bombardier yesterday for 10 74-seat Q400 turboprops with 10 options and said it plans to launch a wholly owned subsidiary carrier to operate the aircraft. The new unnamed airline will "use its fleet of Q400s to bring low-cost service to underserved markets in Colorado and the Rocky Mountain region," Frontier said in a statement. "The subsidiary expects to serve as many as 18 destinations using the new aircraft and to create 300-400 new jobs." Destinations will be announced at a later date.
Oasis Hong Kong Airlines, which will launch 747-400 service to London Gatwick on Oct. 25, unveiled its fare structure, inflight product and other details this week in Hong Kong. Oasis has acquired two 747-400s from Singapore Airlines configured for 278 in economy class and 81 in business class. Service will operate four-times-weekly through Nov. 24, when it will become daily.
