Korean Air concluded a challenging FY05 with net earnings of KRW202.3 billion ($205.6 million), a 61.1% plunge from its 2004 profit of KRW519.5 billion.
Alaska Air Group Chairman and CEO Bill Ayer credited "sacrifices by our employees, strong revenue performance and the benefits of our fuel hedging program" for the company's improved performance in 2005, which saw the parent of Alaska Airlines and Horizon Air narrow its net loss 61.4% to $5.9 million from a 2004 deficit of $15.3 million.
Midwest Air Group, parent of Midwest Airlines and its Regional affiliate Skyway Airlines, reported a loss of $64.9 million for 2005, widened from $43.1 million in 2004 on special items and higher fuel expense, but said its loss for fourth quarter narrowed to $13.9 million from $19.4 million last year. "The competitive environment and high fuel prices continued to challenge us in the fourth quarter, as they have throughout a difficult year," Chairman and CEO Timothy Hoeksema stated. Annual operating revenues rose 25.9% to $523 million with passenger revenue up 29.8% to $459.7 million.
Delta Air Lines will launch Raleigh/Durham-Los Angeles service daily except Saturday from June 8 aboard 737-800s. It will start daily service from Boston to Nashville and Savannah from April 3. Flights will be operated by Delta Connection carrier Comair aboard 50-seat CRJ200s. Iberia will launch a daily La Coruna-London Heathrow service from Feb. 1 aboard 150-seat A320s. JetBlue Airways announced it is seeking permission to start twice-daily flights from New York JFK to Bermuda in May.
World Airways and its pilots, represented by the International Brotherhood of Teamsters, are continuing to negotiate in advance of the Jan. 28 conclusion of the 30-day cooling-off period imposed by the National Mediation Board ( ATWOnline, Jan. 11). At that time, the 430 pilots may go on strike while the airline can impose a new contract. Pilots are barred from interrupting flights carried out on behalf of the US military, World's largest customer, but IBT said it could "make no promises" to other customers.
AirTran Airways announced the promotion of Director-Corporate Finance Arne Haak to VP-finance and treasurer and Director-Engineering Kirk Thornburg to VP-maintenance and engineering. Gulf Air named Rajeev Nambiar GM for India operations.
Ryanair yesterday said it will begin charging for checked baggage but that a 9% across-the-board fare reduction will offset the new fee for many customers who avail themselves of the ability to check in for their flights online. Although the carrier long has talked about charging passengers to check luggage, FlyBE beat it to the punch last month ( ATWOnline, Dec. 20).
Air New Zealand will suspend its twice-weekly nonstop Christchurch-Los Angeles service during the off season from April 3 to Oct. 28. Emirates will launch four-times-weekly service to Copenhagen from Oct. 3 aboard two-class A330-200s, increasing to daily on Oct. 29. It is the carrier's first passenger service to Scandinavia.
Cintra SA, Mexico's airline holding company, is changing its name to Consorcio Aeromexico, according to media repots. Cintra sold Mexicana and its Click LCC to hotel company Grupo Posadas last month ( ATWOnline, Dec. 20) but opted to retain AeroMexico.
Air Europa finalized its launch order for 10 A350-800s plus two options. The Spanish carrier became the first airline to commit to the aircraft when it signed an MOU with Airbus at the end of 2004 ( ATWOnline, Dec. 22, 2004). It also will lease three A350s from GECAS. The A350-800s, scheduled for delivery between 2010 and 2012, will be used for transatlantic service, be powered by GEnx-1As and seat 253 passengers in a two-class configuration.
Alitalia suffered a sixth day of strikes Wednesday as unrest continued over its restructuring and the sale of the majority of ground services arm AZ Services to Fintecna. Union leaders met with government ministers yesterday afternoon and presented a document claiming Alitalia is uncompetitive, does not possess a strategic industrial plan and is under poor management, according to La Stampa.
Mesa Air Group posted a $13 million net profit in the first fiscal quarter ending Dec. 31, a 6.4% decline from $13.9 million earned in the year-ago quarter. The drop occurred despite a 22.2% rise in operating revenue to $323.6 million, which the carrier attributed to the addition of 13 regional jets to its fleet during calendar 2005. Expenses climbed 24.6% to $294.8 million, driven by a 56.2% hike in fuel costs to $104.8 million. Operating income rose just 1.8% to $28.8 million.
Three unions representing American Airlines employees--the Allied Pilots Assn., the Assn. of Professional Flight Attendants and the Transport Workers Union--each filed presidential grievances yesterday protesting the cash bonuses that around 1,000 members of management are set to receive in April under the carrier's Performance Unite Plan, which links the payments to stock performance. The unions contend the bonuses are a violation of their collective bargaining agreements and also occurred despite that fact that American parent AMR Corp. lost $861 million last year.
International Air Transport Assn. expressed outrage at Aeroports de Paris' plan to raise charges at Paris CDG 5% per year for the next five years, calling ADP "greedy." According to IATA, the French government ignored airline pleas and the report of an independent consultant to approve "the ridiculously high increase" in airport charges. "This is yet another demonstration of how airlines are caught between a rock and a hard place in their relationship with airport monopolies," DG and CEO Giovanni Bisignani said. "ADP clearly does not understand the need for efficiency.
Delta Air Lines is moving forward with previously announced plans to cut its workforce ( ATWOnline, Sept. 23). According to media reports, 800-1,000 MRO jobs at Atlanta Hartsfield-Jackson International Airport will be eliminated. The cuts go into effect April 1 when the airline will close a hangar at Hartsfield.
ACE Aviation Holdings, parent of Air Canada and Jazz, moved forward Tuesday with previously announced plans for a partial sale of its Regional airline subsidiary ( ATWOnline, Nov. 29). Under an agreement between Jazz Air Income Fund and a group of underwriters, 23.5 million units of the fund will be sold at a price of $10 per unit, representing 19.1% of the airline. Based on the unit price, gross proceeds to ACE will total C$235 million before overallotments.
FAA yesterday said it has saved $1.4 million in overtime expenses and achieved a 75% reduction in operational errors at the troubled New York Terminal Radar Approach Control facility since reasserting authority over scheduling practices and taking a more hands-on management approach there ( ATWOnline, June 3, 2005).
Garuda Indonesia told a parliamentary commission it lost IDR672 billion ($70.7 million) in 2005, a narrowing of 17.1% from its 2004 losses, according to AFP. The carrier said the slight improvement came as cost cuts were offset by rising fuel prices and continued fallout from the Bali terrorist bombings, which ate into earnings by an estimated $14.7 million, according to an airline spokesperson cited by AFP. Garuda reportedly missed a $55 million debt repayment in December and remains $1.2 billion in the red.
SAS Scandinavian Airlines announced on its website yesterday afternoon the conclusion of the pilots strike and sickout that had grounded hundreds of flights in Copenhagen and at its Braathens division in Norway since Monday ( ATWOnline, Jan. 24). The pilots, who were protesting potential labor issues connected to SAS Group's split into national airline divisions, were expected back at work this morning. SAS estimated the strike cost it approximately DKK30 million ($4.9 million) per day, according to media reports.
AirTran Airways posted a narrow fourth-quarter loss of $0.4 million but managed to stay in the black for the seventh consecutive year, earning $2.7 million in 2005 in spite of a 91% rise in fuel expenses. The carrier earned $1.13 million in the fourth quarter of 2004 and posted full-year earnings of $12.3 million.
United Airlines parent UAL Corp. will list its new stock issue on Nasdaq under the ticker symbol UAUA beginning in early February. The company will begin issuing up to 125 million shares of common stock as part of its reorganization plan, most of which will go to creditors.
EADS Revima said the first 777 landing gear shipset arrived at its workshop in Caudebec-en-Caux, France, for scheduled overhaul, with completion scheduled for the beginning of next month. The landing gear belongs to Cathay Pacific, which recently signed a long-term contract with EADS Revima for gear exchanges and MRO of its fleet of 777-200s/-300s. PSA Airlines renewed its avionics MRO contract with Rockwell Collins, which will provide support and maintenance of avionics on CRJ200s and CRJ700s for the next 10 years.
Evans & Sutherland Computer Corp. said Malaysia Airlines will equip its Thales A380 simulators with E&S's EP-1000CT visual system. Emirates, Qantas and Singapore Airlines also recently placed orders for the system. E&S signed a deal with CAE to produce an EP-1000CT/ESCP-2000 system for an Embraer 170 simulator ordered by Saudi Arabian Airlines.
Fatal crash of a Corporate Airlines Jetstream 32 on Oct. 19, 2004, outside Kirksville, Mo., was owing to "the pilots' failure to follow established procedures and properly conduct a nonprecision instrument approach at night in instrument meteorological conditions," the US National Transportation Safety Board said yesterday.
