The proposed LATAM combination has made overtures to acquire Portugal flag carrier TAP. The move would further entrench the ascendancy of the Latin American conglomerate. But a purchase first depends on TAP selling down handling company Groundforce. It also, again, potentially cuts across global alliance...
Airlines worldwide reported further increases in air travel and freight volumes in Jan-2011, according to IATA which noted that traffic has rebounded to above pre-recession levels. However, despite the positive start to the year, IATA warned that rising fuel costs are a “big problem” for the industry...
Royal Jordanian has emerged from a tough 2010 profitable once more, although not completely unscathed. The Jordanian carrier’s full year results were dented by a 35% rise in fuel costs, spilling over into a 20% increase in overall operating expenses.
Shares in Dublin-based lessor AerCap slipped 3.2% yesterday, down 12.9% from the peak seen in early Feb-2011. The company reported a 2010 net profit of USD207.6 million last week, up 26% year-on-year.
Loyalty programme company Groupe Aeroplan completed the second tranche of its minority investment in Premier Loyalty and Marketing, owner and operator of Mexico's leading coalition loyalty programme, Club Premier.
CAAC Administrator Li Jiaxiang stated China will not reduce its orders for Boeing and Airbus aircraft as he believes locally produced aircraft are "still far away from satisfying domestic needs". The CAAC will decide the scale of production for the C919, being developed locally by COMAC, as the programme...
Henri Courpron, CEO of International Lease Finance Corporation, joined the team in May-2010 from Airbus. Described as one of the most experienced leaders in the aviation industry, the CEO spoke exclusively to CAPA about the company's success in China, a better outlook for 2011, ILFC's interest in the...
Ireland’s Aer Lingus returned to profit in 2010 despite “adverse economic conditions at home”, the ash cloud crisis, severe winter weather and lower passenger numbers. CEO Christoph Mueller attributed the airline’s turnaround to its new business strategy and “greenfield” cost savings programme...
Kuwait’s Jazeera Airways has declared its second consecutive quarter of profitability and its best second half results since 2008. Even so, the turn around has not been enough to offset losses sustained earlier in the year, although the carrier is determined to continue its positive momentum and remain...
Marking the many achievements during 2010, TAM CEO Marco Antonio Bologna reported a net profit of BRL778.9 million for a 5.8% margin. However, the margin was down from 12.8% in 2009.
Dubai-based Emirates continues its rise up the world rankings, taking third place ahead of United Airlines in terms of monthly capacity (ASKs). Emirates will produce 16.9 billion ASKs in Mar-2011, up 9.9% year-on-year, while United’s capacity is easing 0.6% to just under 16 billion ASKs, according...
British Airways' cabin crew union, Unite, stated approximately 10,000 cabin crew members at the airline have commenced voting on strike action at the airline, for the fourth time in two years. The ballot commenced on 01-Mar-2011 and closes on 28-Mar-2011.
US Airways announced it has signed a multi-year distribution agreement with Travelocity. The carrier's full range of content will be offered through the Sabre Holdings global distribution system. Shares in US Airways finished 7.7% lower on Tuesday, leading a decline in US airline stocks.
Cebu Air Inc’s board of directors approved the creation and implementation of a share buy-back programme involving USD46.3 million (PHP2 billion), approximately 4.22% of the company’s current market capitalisation. The programme hopes to stem the price decline of its shares on the Philippine Stock...
China Aviation Industry General Aircraft Co Ltd, a subsidiary of Aviation Industry Corp of China (AVIC), stated it would acquire a 100% stake in Cirrus Industries Inc. This marks the first time a Chinese company has acquired an aircraft manufacturer from a developed country.
Greenwich Kahala Aviation announced it plans to raise USD207 million though an IPO and share sale to executives, including its COO and the company founders. The lessor expects to receive USD198.4 million after expenses. Company executives expected to acquire USD2.2 million in shares.
Shares in South African LCC 1Time fell 5.6% yesterday, continuing the carrier's downward run. Comair South Africa - which operates Comair and LCC Kulula - also fell, down 2.2%, while Lonrho, owner of Fly540, was down 4.2%.
Airport traffic in Italy is showing encouraging signs, with most major airports in the country reporting significant growth during Jan-2011. Milan Malpensa passenger traffic rose 9.0%, while Venice Marco Polo Airport passenger traffic was up 9.2%. Florence Airport's numbers were up just 2.8%.
Amadeus reported a net profit of EUR427.4 million for 2010, on revenue of EUR2.6 billion. The company substantially reduced its financial debt during the year, cutting it from EUR3.2 billion to EUR2.6 billion.
Cebu Air Inc’s board of directors approved the creation and implementation of a share buyback programme involving USD46.3 million (PHP2 billion), approximately 4.22% of the company’s current market capitalisation. The programme hopes to stem the price decline of its shares on the Philippine Stock...
Kuwait's economic growth of just 2% and the continuing lacklustre performance of Kuwait Airways has dampened growth at Kuwait International Airport in 2010. The airport reports passenger traffic grew just 2.6% to 8,333,000 passengers over the year, while flights by commercial carriers were up 1% to...
CEO Bryan Bedford called 2010 a year of transformation, adding that no one is satisfied with the results, which were impacted by the “difficult consolidation process of Midwest Airlines and Frontier”. He also pointed to the challenging weather which affected operations across both its CPA and branded...
The aviation industry is balancing on a “very thin tight-rope” and there is a “very little buffer for the industry to keep its balance as it absorbs shock”, IATA CEO Giovanni Bisignani stated as the association downgraded its profit forecast for 2011. He also noted the “structural weakness...
Boeing's VP of Business Strategy & Marketing, Mike Bair, stated the company is leaning towards developing an all-new B737 replacement before moving to improve the B777 family. Boeing’s new narrowbody aircraft would be wider than the B737 and seat 150-220 and is expected to be ready to enter service...
Air Arabia is watching the effects of fare increases in the Gulf region before deciding whether to raise its own prices. Emirates recently raised fares in the face of higher fuel costs and other carriers are monitoring markets and fuel prices.
LCC shares fell in trading yesterday, as IATA lowered its airline industry profit outlook from USD9.1 billion to USD8.6 billion. Fuel costs are expected to increase 19.4% year-on-year and overall costs are expected to increase 9.7%. Asia Pacific carriers fell the heaviest, with AirAsia down 6.3%, Virgin...
Air France-KLM is reportedly considering a new organisational structure that would enable it to make more acquisitions and better integrate its current JV. The CEO of the carrier, Pierre-Henri Gourgeon, reportedly aims to move it towards more consolidation and has a "more international vision" of the...
IATA cut its global industry profit outlook due to rising fuel prices. The forecast for the airline industry was cut back from USD9.1 billion to USD8.6 billion. Oil prices are forecast to increase from 26% to 29% of overall costs. North American airlines are forecast to make USD3.2 billion in 2011,...
FLY Leasing reported revenue fell 17.5% in 2010, to USD253.7 million. The lessor's net profit fell 41% to USD52.7 million. Shares in FLY Leasing were down 0.2% in trading on Wednesday.
Star Alliance airlines are expanding their capacity by 10.6% in Mar-2011, growing the grouping's share of global supply to 26.1%, as other groupings fail to keep up. The world's unaligned full service airlines (FSA) are still the biggest group (and rich pickings for the expanding alliances). The unaligned...
