Northwest Airlines reported a second-quarter net loss of $285 million, widened from $234 million in the year-ago period, but insisted it is making "steady progress" as it works toward emerging from bankruptcy protection. Excluding reorganization-related items, the carrier said it earned $179 million in the period, improved from a net loss of $288 million excluding unusual items last year.
Assn. of European Airlines said yesterday that competition issues in Italy and Austria have highlighted the need for European regulators to take a closer look at fuel companies' relationships with airlines. AEA said Italian authorities fined fuel suppliers €315 million ($405.4 million) in June for anticompetitive practices and that Austrian Airlines has asked national authorities to investigate OMV, the state-owned company that supplies both the airline and fuel companies operating in the country.
Worldspan signed a five-year global distribution and airline hosting partnership with MAXjet Airways and a five-year Worldspan Meridian hosting and distribution agreement with Daallo Airlines of Djibouti.
Japan Airlines Group appears to have made significant progress in its restructuring with a fiscal first-quarter loss of ¥26.7 billion ($233.2 million) set against sharply increased fuel costs, an improvement over the year-ago period's ¥38.3 billion loss.
MAIR Holdings, parent of Mesaba Airlines and Big Sky Airlines, reported a net loss of $2.5 million for its first fiscal quarter ended June 30 compared to a profit of $1.2 million in the same quarter a year ago. "The company's financial result in the first quarter of fiscal 2007 was primarily the result of additional expenses the company associated with Mesaba's bankruptcy," MAIR President and CEO Paul Foley said.
Aviareto named GECAS MD and Senior VP-Business Development Niall Greene as MD and Rob Cowan, formerly of the Irish Aviation Authority, as its new head of operations.
Turkish Airlines CEO Candan Karlitekin and GM Temel Kotil said at a Friday news conference that THY has chosen to join Star Alliance and will begin negotiations with the group within days. The carrier also was considering SkyTeam. The officials cited the scope of Star's global network and its "efficiency" in certain markets for the decision, according to press reports.
EasyJet said Friday it was contacted by Saudi Arabian startup National Air Services and Abraaj Capital of Dubai about using the easyJet brand for the private domestic and regional airline that the Middle Eastern companies are looking to establish, according to press reports. The UK carrier said it would not invest any equity or cash in the new carrier and it likely will not make a decision about franchising its brand before next year.
Varig intends to add five aircraft this week and operate a fleet of 45 by year end, up from the current 12, according to an official of parent Volo do Brasil cited by Reuters. The carrier employs 3,985 people following last week's layoffs ( ATWOnline, Aug. 1) and intends to raise that to 5,400 by year end. Marco Antonio Audi told Reuters Varig is looking at leasing Airbus and Embraer jets--it has operated an all-Boeing fleet--and that it now will begin purchasing aircraft at the end of their leases.
TAM reported second-quarter net income of BRL97.1 million ($44.4 million), a strong improvement over a net loss of BRL24.7 million in the year-ago quarter, on a 38.9% increase in revenues to BRL1.73 billion. The carrier said its leading domestic market share averaged 45.9% in the quarter, including 47.6% in June, as it continued to boost operational performance. Fleet utilization rose to 12 block hr. per day, up from 10.7 hr. in the year-ago quarter.
British Airways continued its resurgence through the first quarter of its fiscal year as record load factors and a "better cabin mix" helped boost its profit for the three months ended June 30 to £154 million ($289.5 million), a 71.1% increase over net earnings of £90 million in the year-ago quarter. Turnover rose 12.5% to £2.32 billion and operating expenses climbed 11.8% to £2.11 billion, lifting operating profit 19.9% to £211 million from £176 million in the June 2005 quarter. Fuel costs surged 44.2% to £512 million.
Delta Air Lines on Friday filed for final US Bankruptcy Court clearance to terminate its pilots' pension plan effective Sept. 2. The move, which the pilots union has agreed not to oppose, would affect 13,000 active and retired workers and is part of the carrier's effort to cut costs in order to emerge from Chapter 11 bankruptcy protection. Defined retirement programs for 91,000 active and retired flight attendants and ground employees will not be terminated, the airline said.
US Dept. of Transportation said the 20 US carriers reporting ontime performance posted a 72.8% ontime arrival rate in June, down 2.4 points from the year-ago month. They canceled 1.7% of scheduled domestic flights, up 0.1 point. The mishandled baggage rate of 6.28 reports per 1,000 passengers fell from 6.32 in June 2005. Hawaiian Airlines posted the best ontime arrival rate of 94.6% while Atlantic Southeast Airlines' 63.5% was the worst. Mesa Airlines canceled 5% of its flights and JetBlue Airways and Frontier Airlines canceled just 0.1% each.
Slovak Airlines ownership faces an uncertain future. Austrian Airlines Group, which holds 62% of the Slovakian carrier, is evaluating its relationship with the subsidiary, which it took over in 2005. "We rescued Slovak Airlines and in doing so, we did the government a favor. But with that deal, there were commitments from the government, which so far have not been met," Austrian CEO Alfred Oetsch told ATWOnline. The deal included a commitment from the Ministry of Transport, which promised to assume debts when Austrian bought in.
Hainan Airlines parent HNA Group took a 45% stake in Hong Kong Express Airways following receipt of approval from the Hong Kong Economic Development and Labour Bureau. The expected move ( ATWOnline, Aug. 4) will see the balance of the airline remain with the original shareholders.
Air Canada Jazz launched daily CRJ service from Edmonton to Victoria, Calgary to Comox and Winnipeg to London, Ont., and twice-daily Edmonton-Kelowna flights. Mesa Airlines will begin 11-times-weekly Dallas/Fort Worth-Joplin service from Oct. 5. Flights will be operated by Air Midwest.
Gol flew 1.46 billion RPKs in July, a 52.3% increase over the year-ago month. Capacity rose 44.8% to 1.74 billion ASKs and load factor went up 4.2 points to 84.1%. Kenya Airways flew 1.65 billion RPKs during the first fiscal quarter ended June 30, a 19% rise over the year-ago quarter. Capacity grew 20% to 2.34 billion ASKs and load factor fell 0.4 point to 70.4%.
European Commission is formally investigating the restrictions placed on flights between Sardinia and mainland Italy by the Italian Transport Ministry and Civil Aviation Authority, which have designated the routes PSO protected and therefore unavailable to non-Italian carriers. Airlines such as Ryanair and easyJet have complained about the restrictions ( ATWOnline, May 15), which they claim violate EU rules that grant EU-based carriers liberal route access.
Air Traset An-28 crashed in eastern Democratic Republic of Congo Thursday, killing all 14 passengers and three crew, according to press reports. The aircraft was attempting to land in Bukavu when it clipped a mountain and went down in a forest 9 mi. short of the runway. DRC was one of five countries subjected to a total ban on the most recent EU airline safety blacklist ( ATWOnline, June 21).
Bombardier launched a new CRJ200PF (package freighter) conversion program that could extend the life of the 50-seaters as their appeal dims in favor of larger RJs. Sweden's West Air Europe is the launch customer and will acquire two previously owned CRJ200s for conversion to an all-cargo configuration. It now operates scheduled and charter package service with a fleet of 17 turboprops. "The CRJ200PF allows direct flights on longer, thin routes that are currently flown by larger aircraft," said Bombardier Regional Aircraft VP-Asset Management Rod Sheridan.
Embraer announced Friday that Frederico Fleury Curado has been appointed by the company's board to succeed retiring President and CEO Mauricio Botelho when he retires in April. Curado, a 45-year-old aeronautical engineer, has been with Embraer since 1984 serving in a variety of positions. For the past eight years he has been executive VP-airline marketing. After he retires, Botelho will continue to serve as chairman. The manufacturer said it made the succession announcement nine months in advance to ensure a "smooth and harmonious transition process."
Boeing Business Jets ordered two 787s for delivery to corporate customers. The order that was posted on Boeing's website last week is in addition to three 787s ordered by an unidentified customer. They bring the number of net Dreamliner orders this year to 77 and the number of commercial aircraft orders to 518.
The US Senate passed legislation late Thursday that significantly reforms US pension law and gives struggling airlines needed extra time to fund defined retirement programs. The bill, identical to one passed by the House in late July, moves to the desk of President Bush, who is expected to sign it into law. Bankrupt Northwest Airlines, a major beneficiary of the legislation, said the new law "will save the pension benefits of 73,000 current and former Northwest employees."
Cathay Pacific Airways will launch a fourth weekly Hong Kong-Dallas/Fort Worth-Atlanta 747-400F flight from Aug. 7. EasyJet will start double-daily Basel-Munich flights Oct. 30 and will compete against Lufthansa for the first time. It also will begin daily Bristol-Paris Charles de Gaulle service the same day and Geneva-Hamburg service by Dec 1. This week it launched thrice-weekly London Luton-Istanbul Sabhia Gokcen flights that will increase to daily on Sept. 4.
Boeing and SIA Engineering Co. said this week they have reached an agreement under which the MRO operator will participate in the manufacturer's Integrated Materials Management program. Using IMM, Boeing and other suppliers will own aircraft parts that will be stored at SIAEC's main maintenance base until needed. SIAEC will pay for the parts as it uses them, reducing inventory holding costs.
