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Thursday November 5, 2009

ExpressJet Airlines parent ExpressJet Holdings reported a third-quarter loss of $9 million, reversed from net income of $4.4 million in the year-ago period, although it narrowed its operating loss considerably. Revenue dropped 31.7% to $179.2 million. The company attributed the fall to "softness in passenger demand," according to President and CEO Jim Ream. Expenses were down 35.7% to $187.3 million and operating loss narrowed to $8.1 million, a 71.9% improvement over the $29 million suffered last year. The swing to a net loss largely was the result of nearly $50 million in special gains reported in the 2008 third quarter.

"Going forward, our results will get better as the utilization of our fleet returns to pre-recession levels and we remain very positive in our ability to attract new customers in both our contract and corporate aviation divisions," Ream said. ExpressJet flew 214 of its 244 total aircraft for Continental Airlines during the quarter, with CO block hr. falling 1.5%. Load factor was 80.2%. Nine-month loss of $33.5 million was a 44.2% improvement from the $60.1 million deficit suffered in the year-ago period, while operating loss narrowed 72.1% to $30 million.

KLM will conduct a biofuel test flight on Nov. 23 using a 747 with one engine powered by a 50/50 blend of camelina-based fuel and traditional kerosene. A "select group of passengers" will be onboard, which the carrier said is a world first.

US FAA denied an application from the Burbank-Glendale-Pasadena Airport Authority to institute a nighttime curfew on air traffic at Bob Hope Airport in Burbank. The authority had sought permanently to ban operations from 10 p.m. to 6:59 a.m. local time except for law enforcement, medical flights, emergencies, etc. Passenger airlines currently observe a voluntary curfew during those times, according to the Los Angeles Times.

In an Oct. 30 letter to airport authority Executive Director Dan Feeger, FAA Acting Associate Administrator for Airports Catherine Lang said the evidence submitted supported "two of six statutory conditions that must be met before the FAA can approve your restriction." However, all six must be met. She noted that "the issues and history precipitating the proposed noise restriction date back almost 40 years when a City of Burbank ordinance imposing a nightime curfew at BUR was struck down by the Supreme Court." At the time the airport was owned by Lockheed, which subsequently sold it to the newly created airport authority. The proposed curfew was opposed by air cargo and express operators including UPS, which operates four weekly flights into the airport that would be impacted by the curfew.

AirBaltic will start charging a €5 ($7.36) fee per passenger for airport check-in on Nov. 16. Internet check-in will remain free of charge. The airport fee will not be levied against loyalty program members, passengers with reduced mobility, children younger than 12 and those departing from airports at which Web check-in is unavailable.

Continental Airlines said October consolidated unit revenue fell an estimated 14%-15% year-over-year, while mainline RASM was down 15%-16%. It flew 7.26 billion consolidated RPMs, up 1.7%, against a 2.6% cut in capacity to 8.8 billion ASMs. Load factor rose 3.5 points to 82.5%.

United Airlines flew 9.68 billion consolidated RPMs in October, down 1.6% from the year-ago month. Capacity dropped 4.3% to 11.64 billion ASMs, lifting load factor 2.3 points to 83.1%.

Alaska Airlines flew 1.46 billion October RPMs, up 3% year-over-year. Capacity fell 1.6% to 1.89 billion ASMs and load factor rose 3.4 points to 77%.

AirTran Airways flew 1.51 billion RPMs in October, up 5.2% year-over-year, against a 7% lift in capacity to 1.9 billion ASMs. Load factor slipped 1.3 points to 79.2%.

Gol announced a management restructuring: CFO Leonardo Pereira now will be responsible for the technology, business development and strategic planning departments in addition to finance, controls and investor relations. The unnamed VP-market will head cargo, commercial, corporate communications, marketing, yield management and alliance departments, while new VP-Customers, Employees and Management Ricardo Khauaja will run the human resources and management, customer service, airport and commercial crew departments. VP-Information Technology and Planning Wilson Maciel Ramos and VP-Marketing and Services Tarcisio Gargioni will leave the company along with airports head Marco Antonio Piller and maintenance head Francisco Eustaquio Mendes.

Airports Council International elected Sydney Airport Corp. Chairman and CEO and MAp Airports Chairman Max Moore-Wilton as chairman for a two-year term beginning Jan. 1. He succeeds James Cherry. Athens International CEO Yiannis Paraschis was named vice chairman.