- Local Airlines' Market Share Slashed:Aus[May 30, 2006]
HOME-GROWN airlines have seen their share of international travel to and from Australia slashed by a quarter in the past decade under the onslaught of mid-point carriers such as Singapore Airlines and Dubai-based Emirates.
- Frontier Reports Fiscal Year Loss[May 29, 2006]
Frontier Airlines Holdings posted a $14 million net loss for its fiscal year ended March 31, a disappointing result but much improved over a net loss of $23.4 million in the previous fiscal year."Although we made progress in all facets of our business, it was not enough to offset the many challenges that face the industry and our company," President and CEO Jeff Potter said.
- Varig Plane Seized for Non-payment[May 26, 2006]
Varig has confirmed to Dow Jones news wire that leasing company Bristol Associates seized a Boeing 777 in its service at JFK Airport in New York due to non-payment.
- New Italian Government is Dissatisfied[May 24, 2006]
Although the Italian government reduced its stake in Alitalia below 50% in its recent recapitalization (ATWOnline, Nov. 14, 2005), new Transport Minister Alessandro Bianchi felt justified in calling for a change in management at the struggling flag carrier, which reported a widened ?156.6 million ($200 million) first-quarter loss last week that it attributed largely to the impact of protests by Alitalia Servizi workers.The airline said bad weather and the January strikes knocked ?80 million off operating revenues and ?40 million off the operating result.
- US domestic yield continues momentum[May 23, 2006]
Significant capacity reductions at Northwest Airlines and Delta Air Lines, the disappearance of Independence Air and recent fuel-driven fare hikes gave US carriers their third consecutive month of double-digit year-over-year domestic yield growth in April.
- Kingfisher Celebrates First Year $42m[May 23, 2006]
Indian startup Kingfisher Airlines has been a marketing success since launching in May 2005, but the growing pains are evident in the carrier's bottom line, which was INR1.9 billion ($41.8 million) in the red after one year of operations, it told The Hindu's Business Line.Kingfisher now holds a 9% market share and has earned revenues of INR7 billion so far. It celebrated its one-year anniversary earlier this month with a series of onboard ceremonies, including addresses from Chairman and CEO Vijay Mallya. "We have come a very long way, and all of this would not have been possible without the overwhelming response that all of you have shown," Mallya said aboard one flight. "Our understanding of the emerging new India set us on the path to create a product and service offering designed to truly wow and delight air travelers."
- Cathay strengthens ties with Unisys[May 19, 2006]
Cathay Pacific Airways has signed a data centre outsourcing deal with Unisys Australia. The contract is for three years, with an option to extend for another two. (5/19/2006)
- Labor Unrest Adds to Alitalia's 1Q Woes[May 17, 2006]
Alitalia's first-quarter pre-tax loss widened to ?156.6 million ($201.6 million) from ?141.2 million in the year-ago quarter as January's labor unrest (ATWOnline, Jan. 27) aggravated the low-season effect that marks the March quarter.Revenues decreased 3.1% to ?965 million, mainly owing to the deconsolidation of the Alitalia Servizi services unit and the drop in passenger income caused by the strikes. Passenger revenues slid 1.6% to ?764 million, with yield falling 3.4%.
- FL Group Profit Surges despite Losses[May 19, 2006]
FL Group, the investment firm that owns Icelandair, Sterling Airlines and other air transport and tourism companies, reported a first-quarter net profit of ISK5.84 billion ($82.9 million), a result that compared to a profit of ISK25 million in the year-ago quarter and "highlight[s] FL Group's focus as an investment company specializing in strategic and private equity projects as well as hedge fund activity."During the quarter, FL Group completed its acquisition of Sterling, which was announced last fall (ATWOnline, Oct. 26, 2005) and purchased a 6% stake in Finnair. It also made plans to list Icelandair Group on the Icelandic Stock Exchange.
- Air France-KLM 'Confirms' Merger[May 19, 2006]
Air France-KLM Group reported net income of ?913 million ($1.17 billion) for the financial year ended March 31, a 29.3% increase over the ?706 million earned in 2004-05.Last year's results were restated to account for pension fund surpluses at KLM. "The year 2005-06 was marked by two features: Strong world economic growth leading to extremely dynamic levels of activity in our sector, and a significant rise in oil prices. In this environment, we have confirmed the success of the Air France-KLM merger," Chairman and CEO Jean-Cyril Spinetta noted.