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Tuesday November 3, 2009

TNT reported third-quarter net income of €97 million ($142.7 million), down 6.7% from €104 million in the year-ago-period, and noted that it has seen "some early signs" of an improving economy. Its air-intensive Express unit continued to struggle, posting a 36.4% drop in operating profit to €63 million on an 11.4% dip in revenue to €1.47 billion. But CEO Peter Bakker noted that "the rate of decline of Express volumes has modestly improved. In particular, the average weight per consignment developed positively for the first time in a year, while price pressure remained." Air volume measured in kg. lowered 8.4% year-over-year. Overall revenue decreased 7.6% to €2.48 billion.

Hainan Airlines posted a CNY175.5 million ($26.3 million) third-quarter profit, reversed from a CNY260.8 million deficit in the year-ago quarter, as operating revenue soared 34.2% to CNY4.57 billion. Like other Chinese airlines, it credited a recovery in the domestic market and favorable financial policies from Beijing for the improved performance. Its third-quarter expenses climbed 18.7% year-over-year to CNY3.65 billion. Nine-month profit of CNY350.5 million compared to a CNY50.2 million surplus in the year-ago period.

British Airways pleaded guilty in Canadian Federal Court to " fixing surcharges on the sale and supply of international air cargo exported on certain routes from Canada" in 2002-06 and agreed to pay a C$4.5 million ($4.1 million) fine, the country's Competition Bureau announced. Canada now has recovered more than C$14.6 million from BA, Air France, KLM, Martinair and Qantas, and its "investigation into the alleged conduct of other air cargo carriers continues," it said.

United Airlines will terminate the agreement under which Mesa Air Group operates 10 Dash 8s as United Express. Mesa said it plans to work with UA on an "orderly transition plan" that will result in the aircraft leaving UA service by April 30. Leases on four aircraft expire on that date. "We face a challenging period during the next few quarters and will strive to mitigate the impact of the termination of aircraft under our codeshare agreement with United Airlines," Mesa Chairman and CEO Jonathan Ornstein said. Mesa was $24.2 million in the red through the nine months ended June 30 and the UA cancellation adds to its financial woes. In June it said it had 39 "excess aircraft" comprising seven CRJ200s, 12 ERJ-145s and 20 Beech 1900Ds, the majority of which would require significant maintenance before they can be subleased or returned to service. Mesa officials said they expect those aircraft to have a "material adverse impact on our financial conditions and results of operations."

Australian Competition and Consumer Commission issued a draft determination finding that the planned transpacific joint venture between Virgin Blue and Delta Air Lines "is likely to assist Virgin Blue and Delta to compete more effectively against the incumbents on the routes, Qantas and United Airlines." The partnership also requires approval from the US Dept. of Transportation (ATWOnline, July 10). ACCC said it was proposing authorization for an initial three-year period in order to gauge "the conduct of the parties under the joint venture," but that it believed that Blue's and DL's entry "has created strong competition on price and service in the market for passenger transport." It is accepting comment until Nov. 17.

CIT Group, parent of operating lessor CIT Aerospace, filed for bankruptcy protection Sunday, proceeding with a so-called "prepackaged" financial restructuring approved by most of the company's debt holders. In a statement, CIT said that "none" of its operating subsidiaries were included in the filing. "As a result, all operating entities are expected to continue normal operations during the pendency of the cases." According to Ascend Online, CIT Aerospace is the industry's fifth-largest operating lessor with a fleet of 237 aircraft. Its manufacturer backlog comprises 61 A320 family aircraft plus nine A330s, seven A350s, 15 737NGs and 10 787s, according to Ascend. Concerning CIT Aerospace, "It's business as usual," a person familiar with the situation told ATWOnline.

by Perry Flint

Iberia launched the upgrade of its long-haul business class, part of a €150 million "Total Customer Care" program aimed at enhancing customer service. IB's remodeled Business Plus cabin will feature lie-flat seats versus the previous 170-deg. Recline, and an extended 2.2 m. between rows. It will reduce the number of business class seats on its 12 A340-600s to 42 from 52 and on its 20 A340-300s to 36 from 42. Three aircraft already have been fitted with the new cabin by IB's maintenance unit, with the fleetwide upgrade scheduled to be complete in March. The airline said it plans to introduce a completely new business class concept in 2012. The TCC program also includes remodeling of VIP lounges, limousine service at Buenos Aires, Sao Paulo Guarulhos and Mexico City and new loyalty program features.

Delta Air Lines' pilots union slammed the US National Transportation Safety Board for its handling of the recent Northwest Airlines A320 "overflew" incident, saying the board overstepped its bounds as a safety investigation organization. FAA last week revoked the licenses of the two NWA pilots who flew 150 mi. past their destination on an Oct. 21 flight from San Diego to Minneapolis-St. Paul following NTSB's release of their comments during interviews with board investigators in which they admitted they "lost track of time" while having a discussion and using their personal laptop computers (ATWOnline, Oct. 28). DL Air Line Pilots Assn. MEC Chairman Lee Moak said the pilots thought they were "voluntarily coming forward with information" and did not expect their "cooperation" to be "exploited" in an NTSB press release. "The NTSB's. . .rush to judgment. . .is both irresponsible and in conflict with its own mission statement," he said.

S-Air BAe 125-800B crashed on approach to Minsk last Thursday, killing the two crew and three passengers onboard. The flight originated at Moscow Vnukovo. There was a "light drizzle," according to the Flight Safety Foundation's Aviation Safety Network. The aircraft first flew in 1986. S-Air also operates two Yak-42s, three Tu-134s and two additional 125s.

Middle East Airlines launched four-times-weekly Beirut-Baghdad service aboard an A320.

IATA, following up on its recent court victory in its dispute with Travelport, said it is seeking "an EU-wide declaratory judgment from the Amsterdam District Court confirming that the PaxIs product does not infringe on Travelport's database rights in any of the member states of the European Economic Area." On Oct. 1, the Amsterdam District Court denied an application for a preliminary injunction preventing IATA's use of airline data stored in Travelport databases (ATWOnline, Oct. 21).

Qantas joined the Sustainable Aviation Fuel Users Group, the industry coalition established to accelerate the development and commercialization of sustainable aviation fuel (ATWOnline, July 14).

Air India and Aerostar Asset Management of Sharjah announced the launch of an engine MRO partnership called The A Team, which will use AI's Mumbai facility and Aerostar's marketing connections in the Middle East to secure third-party work on CF6-50/80, PW4000, GE90 and CFM56-7 engines, as well as CFM56-5s in the "near future."

Amadeus and ICAO announced an agreement under which ICAO will supply Amadeus with data from its carbon emissions calculator, which Amadeus said, "will allow Amadeus's worldwide customer base to estimate the carbon footprint of air travel." Amadeus will integrate the data into its travel reservation platforms by mid-2010.

AJ Walter Aviation said it received approved supplier status from Delta TechOps.