Boeing boosted the range of the 747-8 from 8,000 nm. to 8,300 nm. after the latest round of wind-tunnel testing, which included high- and low-speed lines development and fine-tuning of the noise characteristics on the fully integrated airframe. More than 3,000 hr. of wind-tunnel time have been logged to date. The recent series of four major tests ran simultaneously at three wind tunnels in Seattle--the Boeing Transonic Wind Tunnel, the Low Speed Acoustic Facility and the Nozzle Test Facility--and at the QinetiQ tunnel in Farnborough.
Bankrupt Delta Air Lines reported a first-quarter net loss of $2.1 billion, widened from a net loss of $1.1 billion in the year-ago quarter on special charges, as it continued to navigate Chapter 11 reorganization. Excluding $1.7 billion in reorganization costs, accounting adjustments and special items, the company lost $356 million, narrowed from $684 million. "While continued losses are clearly unacceptable, Delta's financial performance for the quarter was in line with expectations, especially in light of fast-rising fuel prices," CEO Gerald Grinstein said.
JetBlue Airways named John Harvey executive VP and CFO effective immediately. He replaces John Owen, who served in the position since the airline's formation in 1998. Owen will assume the newly created post of executive VP-supply chain and information technology. Harvey, who will join the JetBlue board, had been serving as senior VP-corporate finance and treasurer. He joined the carrier in 1999 as VP and treasurer but left in 2003 to join SkyWorks Capital, an aircraft finance company. He returned to JetBlue in 2004.
Bombardier announced Friday that Japan Air Commuter, part of Japan Airlines Group, ordered an 11th Q400. JAC carried 1.4 million passengers in its fiscal year ended March 31.
Ryanair said it will appeal the decision of the regional administrative court of Lazio banning the Irish LCC and its competitor easyJet from operating flights from the Italian mainland to Sardinia. The case went before the court after the Italian Transport Ministry and Civil Aviation Authority placed the route under PSO protection ( ATWOnline, April 7). Ryanair operated Rome-Alghero service while easyJet flew between Milan Malpensa and Olbia. Air One and Meridiana also operate to Sardinia.
Worldspan and Northwest Airlines signed a five-year, full-content distribution agreement designating the GDS as a "preferred distribution channel." The companies said that "in conjunction with the agreement, Worldspan has developed two new optional products to introduce into the marketplace" but did not define the products.
Iberia Group reported a consolidated net loss of €45 million ($57.4 million) for the three months ended March 31, a sharp increase from the €16.1 million deficit posted in the year-ago quarter. The carrier said the principal reason for the red ink was the steep rise in the price of aviation fuel, on which it spent €257.6 million, an increase of 45.3%. Fuel accounted for 20.3% of its operating costs last quarter.
When Boeing begins delivering 787s to airlines in 2008, it expects to deliver something else as well: A total maintenance and supply chain solution that will permit operators to focus entirely on flying the airplane. GoldCare, the name of the product, will provide carriers with comprehensive line and base maintenance support, as well as supply chain management, on a cost-per-flight-hr. basis.
Singapore Aircraft Leasing Enterprise reported a profit of $34.7 million for the financial year ended March 31, "a sixfold increase from the previous year" when it earned $5.2 million. Revenues rose 29% to $255.1 million.
Continental Airlines launched daily Newark-Cologne/Bonn service aboard a two-class 757-200 Wednesday. Flights will operate five-times-weekly during the winter.
Embraer launched a Chinese version of its corporate website as part of its ongoing effort to gain a foothold in the burgeoning Asian market. It has an ERJ-145 assembly plant in Harbin, but thus far only a dozen aircraft have been delivered into the Chinese market. The Brazilian manufacturer, which is forecasting demand for some 600 RJs in China over the next 20 years, also has a commercial office in Beijing.
In a first quarter it called "sturdy" and "in line with our expectations," Lufthansa Group reported a net loss of €98 million for the three months ended March 31, narrowed from a €116 million deficit in the year-ago quarter. Changes in the group's composition that included the integration of Swiss International Air Lines and Eurowings affected the bottom line. It said its operating loss of €75 million, nearly triple its loss of €26 million in 2005, would have been €47 million if not for the additions.
Largely driven by proceeds from the partial sale of Regional subsidiary Jazz, Air Canada parent ACE Aviation Holdings posted first-quarter net income of C$118 million ($107.3 million), a figure that represented a vast improvement over a C$77 million loss in the year-ago quarter and overshadowed a C$29 million operating loss. "During the quarter we made substantial progress in creating shareholder value through the successful monetization of our Regional carrier Jazz," Chairman, President and CEO Robert Milton said.
Cathay Pacific flew 5.86 billion RPKs in April, a 16.3% increase over the year-ago month. Capacity rose 11.5% to 7.26 billion ASKs, lifting load factor 3.3 points to 80.7%.
Thai Airways reported a 78% rise in its fiscal second-quarter profit to THB6.2 billion ($164.7 million) from THB3.49 billion in the year-ago quarter, according to a filing submitted to the Thai Stock Exchange cited by press reports. Key to the earnings increase was a 19% rise in sales to THB46.1 billion and a strengthened baht, which resulted in a THB3.86 billion foreign exchange gain. Expenses advanced 20% to THB40.5 billion and load factor climbed 6.1 points to 76.7% as Thai added four aircraft during the quarter. Additional passenger data were not released.
British Midland Chairman Michael Bishop tightened his control on the UK airline group by buying out his long-term sleeping partners in the BBW Partnership, which holds the controlling majority stake in the group. John Wolfe and Stuart Balmforth each owned stakes of 24.9% in BBW with Bishop holding the remainder. The group confirmed the transaction in a short statement.
Singapore Airlines appointed Senior VP-Finance Goh Choon Phong as president of SIA Cargo effective June 1. He replaces Hwang Teng Aun, who will become senior VP-marketing (special projects). Divisional VP-Finance Chan Hon Chew will replace Goh.
ExpressJet Holdings, Regional partner of Continental Airlines, reported first-quarter net income of $23.8 million, 2% above earnings of $23.3 million in the year-ago quarter. ExpressJet cited rising demand as a key factor behind its 20th consecutive profitable quarter. The Houston-based carrier reported a 7.7% rise in revenues to $404.2 million while operating expenses increased 9% to $366.8 million, producing operating income of $37.3 million, down 3.9% from the year-ago quarter.
Virgin Blue's unhedged exposure to escalating jet fuel prices undermined its net earnings for the first half of the financial year, with the carrier reporting an 8.5% fall in profit to A$68.2 million ($52.4 million), reflecting a 33.7% rise in the cost of fuel over the six-month period to March 31. CEO Brett Godfrey said the A$49 million in additional fuel expense was offset partially by the benefits of Virgin Blue's new corporate business strategy and improved productivity, which contributed to a 6.1% increase in revenue to A$935.9 million.
Ryanair said it filed a complaint to the European Commission claiming Air France received some €1 billion ($1.28 billion) in illegal state aid "over the past number of years."
Frontier Airlines selected the CFM56-5B to power six new A320s scheduled for delivery between 2008 and 2010, it announced yesterday. List price for the order is $75 million. The carrier placed an order for six A320s in February and converted orders for four A319s into an additional four A320s ( ATWOnline, Feb. 24). It already operates 52 CFM56-5B-powered A318s and A319s.
Condor Airlines, the German leisure carrier jointly owned by Lufthansa and tour operator Karstadt/Quelle, denied rumors that it will take over certain long-haul services on behalf of Lufthansa in markets where yields are too low for LH to operate profitably. "We can operate flights for Lufthansa as we did in the past. But so far there are no discussions about that," MD Ralf Teckentrup told ATWOnline. Condor made a profit of €20.5 million ($26.2 million) in 2005 compared to a loss of €39 million the year before.
Preliminary figures released yesterday by Lufthansa Group indicate the company narrowed its first-quarter net loss to €98 million ($124.6 million) from €116 million in the 2005 quarter.
American Airlines Chairman and CEO Gerard Arpey said the carrier needs at least $1 billion in additional annual savings to keep pace with rivals restructuring through bankruptcy and "just to keep even with our costs last year," and has evaluated replacing the JT8D-200 engines on its MD-80 fleet to save fuel.
Shanghai Airlines accepted a formal invitation to join Star Alliance at a ceremony yesterday in Shanghai, becoming the second Chinese carrier to commit itself to a global airline partnership. China Southern Airlines signed an MOU with SkyTeam two years ago and since then the three alliances have been angling for the best foothold in one of the world's fastest-growing commercial aviation markets. Air China also appears to be on the verge of joining Star.
