- 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.
- Ctrip Shares First Quarter Results[May 18, 2006]
Sharing its first quarter results, online travel company Ctrip.com has posted total revenues worth US$21 million during the three-month period. The figure represents a 61 percent increase from the same period in 2005 and one percent increase from the fourth quarter of 2005. (5/18/2006)
- Load Factors Send BA Profit Soaring[May 22, 2006]
Strengthened by huge fourth-quarter profit gains, a short-haul operation that is making money for the first time in a decade and rising load factors and yields, British Airways Friday reported a ?467 million ($880.7 million) profit for the financial year ended March 31, a 19.1% increase over year-ago net earnings of ?392 million.BA's fourth-quarter profit of ?83 million was nearly 14 times greater than the ?6 million earned in the year-ago period.
- Judge Nixes Mesaba Plan to End Contracts[May 22, 2006]
A US Bankruptcy Court judge sided with Mesaba Airlines pilots and flight attendants last week, denying management the right to cancel existing labor contracts.The carrier, which operates as a Northwest Airlink partner, wants a 19.4% reduction in labor costs over the next six years to ensure financial viability. In February it filed documents with the court seeking approval to cancel its labor contracts with pilots, flight attendants and mechanics and cut 1,600 jobs.
- Varig Auction Attracts Rivals' Interest[May 22, 2006]
Varig has received bids from 17 companies interested in buying its flight operations, including rivals TAM, Gol, OceanAir and WebJet, according to Merrill Lynch.Under a plan put forward earlier this month (ATWOnline, May 10), Varig's flight operations will be separated from its commercial and nonairline activities and sold separately. The minimum bid for the entire flight operation is $860 million, which includes 46 aircraft. However, the international and domestic arms could be sold separately, with a minimum bid of $700 million for the domestic arm including 30 aircraft.
- Cathay eyes significant China move[May 12, 2006]
China's tightly regulated airline industry faces a shake-up that could see Cathay Pacific pay up to $HK2.2 billion ($366.81 million) to become Asia's biggest carrier.
- 'Sturdy' costs Lufthansa ?98 million[May 12, 2006]
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.
- Priceline launches marketing initiative[May 10, 2006]
Priceline Europe has launched a new online marketing programme designed to encourage international tourists to visit select US, Canadian, Caribbean and Mexican destinations and patronise hotels that have partnered with Priceline Europe. (5/10/2006)
- Silverjet raises funding for its venture[May 10, 2006]
Silverjet, which emerged as a new business class airline for the London-New York route last month, has reportedly raised ?5.3 million from an initial public offering of shares. (5/10/2006)
- US Airways posts 1Q profit:$64 million[May 10, 2006]
Touting synergies created by the merger of America West Airlines and the former US Airways, US Airways Group reported a first-quarter profit of $64 million compared to a profit of $28 million for America West in the year-ago quarter and said it now expects to be profitable for the full year, "even after accounting for merger-related expenses and continued high fuel costs." Excluding special items and a change in accounting principles, net profit was $5 million, which company officials said marked an improvement over net losses of $15 million and $257 million for AWA and US respectively in the year-ago quarter.