Airline Finance News.IATA IATA International Air Transport Association, which sets the rules for air transport, including those concerning air transport of animals. reported a 6.8% growth in February RPKs, a 5.1% increase in international capacity and a 1.2-point rise in load factor to 73.3%, figures that matched forecasted numbers and supported a "new and cautious optimism that is returning to the industry," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. DG and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Giovanni Bisignani Giovanni Bisignani is the Director General of the International Air Transport Association, appointed in 2002. Bisignani is the former chairman of Italy's flagship airline Alitalia. . Middle East traffic (up 15.3%) and capacity (up 14%) showed the most growth. Capacity increases outpaced traffic in Africa and Latin America. Freight traffic climbed 5.4% on a 5.3% increase in capacity. Apr 4, 2006 Aer Lingus Aer Lingus's largest union, the Services, Industrial, Professional and Technical Union, served protective notice of industrial action that will become effective if no agreement is reached on pensions, job security and employee shareholding ahead of the airline's privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned . SIPTU SIPTU Services, Industrial, Professional & Technical Trade Union (Ireland) pledged to continue working during the Easter travel period ending in two weeks. Union members at the carrier supported industrial action in a vote last week. Apr 7, 2006 Ireland approves Aer Lingus privatization. The Irish government on Tuesday decided to sell off of most of Aer Lingus through an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. nearly a decade after it first announced its intention to privatize the carrier, but said it will retain a stake of "at least 25.1%. ""The transaction is taking place in order to give Aer Lingus both the commercial flexibility and the financial muscle to compete and succeed in the global marketplace," Transport Minister Martin Cullen said in a statement. Apr 6, 2006 Aer Lingus employees represented by the Services, Industrial, Professional and Technical Union voted in favor of industrial action last week by a 94% margin, anticipating the impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. privatization of the carrier. The government's Joint Oireachtas Committee on Transport will hold its first hearing on the proposed sale Thursday. "We will now seek sanction for industrial action from our National Executive Council, following which it is our intention to serve notice on the airline to be effected in the event of any unilateral action by them," SIPTU National Industrial Secretary Michael Halpenny said. Apr 4, 2006 Air China, Cathay The commercial relationship between Cathay and Air China, in which CX holds 9.9%, is at a delicate stage as Air China leans toward joining Star Alliance while Cathay is a founding partner in oneworld. "To work together with Air China is important for us," Tyler said. But the level of cooperation may hinge on which alliance Air China joins. "It is their decision," he stated. "We share with them our opinions of alliances. It is no secret that oneworld wants to have a Chinese partner." Apr 5, 2006 Air Malta Air Malta, which posted an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of MTL MTL In currencies, this is the abbreviation for the Maltese Lira. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.3 million ($6.6 million) in the first nine months of its fiscal year, announced Wednesday that COO Joe Cappello has replaced Ernst Funk as CEO. Cappello joined the airline in 1976 working in market research and rose to become COO in 2002. "Cappello's experience is vast in every area of our business, not least in the critical commercial revenue generation aspect," Air Malta Chairman Lawrence Zammit said. Apr 7, 2006 Alaska Airlines Alaska Airlines expects its unit costs excluding fuel and special charges to drop 5% in the quarter ended March 31 to 8.1 cents, primarily owing to a shift in the timing of maintenance effects, it said in an SEC filing. It also expects to incur a pretax impairment charge of $130-$140 million related to plans to retire 15 owned MD-80s ahead of previous plans in favor of 737NGs. Non adjusted CASM CASM Cost per Available Seat Mile CASM Communities and Small-scale Mining CASM Canadian Academy of Sports Medicine CASM Certificate of Advanced Study in Mathematics (Univeristy of Cambridge, UK) CASM Coherent Adaptive Subcarrier Modulation is expected to rise 23% to 13.6 cents. Apr 7, 2006 America West America West Holdings America West Holdings Corporation is an Arizona-based company owned by US Airways Group Inc. Its primary holding is America West Airlines. America West's corporate offices in Tempe are housed in one of the first commercial high-rise buildings constructed in the downtown said last week that it will redeem $112.3 million in debt on April 13. It will redeem its 7.5% convertible senior notes due 2009. Noteholders may convert multiples of the notes into US Airways common stock by April 11 or may opt to receive cash. Apr 4, 2006 American Airlines American Airlines announced that its 4.25% Senior Convertible Notes due 2023 now are convertible into shares of common stock. Apr 7, 2006 American Airlines sent letters to approximately 600 maintenance workers, cleaners, stock clerks and crew chiefs at 24 US airports warning them of possible layoffs. "We cannot say right now whether these job reductions will be temporary or permanent," said a letter to Los Angeles employees obtained by Bloomberg News. New AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Corp. Executive VP and CFO See Chief Financial Officer. Thomas Horton has been on record saying he believes AA must cut labor costs to stay competitive. Apr 7, 2006 Bmi Group Bmi Group turnover rose 4.7% to [pounds sterling]869 million from [pounds sterling]830.1 million on a 6.3% increase in RPKs to 9.33 billion. Operating result before exceptional items moved from a loss of [pounds sterling]3.2 million in 2004 to a profit of [pounds sterling]5.5 million in 2005. Segment information on the performance of each of the group's operations--the mainline based at London Heathrow, bmi regional and its low-cost subsidiary, bmibaby--was not provided. Apr 5, 2006 Continental Airlines Continental expands as others shrink. Continental Airlines is expanding domestic flights while its rivals scale back capacity. Air Transport Association chief economist John Heimlich predicts overall domestic capacity for 2006 will decline 1.7%. Apr 7, 2006 Continental Airlines' consolidated RPMs grew 11.2% in March to 7.69 billion as capacity rose 10.1% over March 2005 to 9.47 billion ASMs. Load factor inched up 0.7 point to 81.2%. Domestic traffic increased 4.9% to 3.75 billion RPMs against a 3.3% hike in ASMs to 4.49 billion, lifting load factor 1.2 points to 83.4%. International RPMs climbed 17.4% to 3.05 billion as capacity rose 17.8% to 3.83 billion ASMs and load factor dipped 0.3 point to 79.8%. Apr 6, 2006 Delta Air Lines pilots voted in resounding re·sound v. re·sound·ed, re·sound·ing, re·sounds v.intr. 1. To be filled with sound; reverberate: The schoolyard resounded with the laughter of children. 2. favor yesterday to authorize union leaders to call a strike if an arbitration panel arbitration panel A group of individuals charged with resolving a dispute between individuals and/or organizations. Arbitration panels to resolve investment disputes are sponsored by self-regulatory organizations such as NASD. permits the carrier to reject the current pilot contract and impose a new, concessionary agreement. Of 5,799 eligible voters, 96.4% voted and 94.7% of voters supported a strike. Apr 5, 2006 Delta Air Lines reported a net loss of $209 million for February that included $71 million in reorganization items reflecting estimated bankruptcy claims on aircraft leases and legal fees. The loss represented a 21.7% narrowing from a February 2005 deficit of $267 million. Operating shortfall declined 61.2% to $71 million from $183 million in the year-ago month. Apr 3, 2006 El Al El Al reports record profit as competition grows. In its first year following its transfer from the Israeli government to Knafaim Arkia Holdings, El Al reported the highest annual net earnings in its history, a $64.1 million profit that represented a 94% increase over 2004 earnings of $33.1 million. Revenues rose 17% to $1.62 billion against a 9.7% decline in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to $1.2 billion. The airline said it realized $65 million in fuel hedge gains as fuel costs climbed 44% to $388 million. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. jumped 53.7% to $89 million. Apr 3, 2006 Lufthansa Systems Lufthansa Systems plans to increase its share of revenue from customers outside Lufthansa Group from 40% to 60% by 2010, LHS (filename extension) lhs - The filename extension for literate Haskell source files. CEO Wolfgang Gohde said as he announced operating results of [euro]63 million ($76.8 million) on turnover of [euro]634.7 million for 2005. Business with clients outside Lufthansa Group grew 15% to [euro]256.8 million. Apr 6, 2006 SunExpress SunExpress, jointly owned by Turkish Airlines and Thomas Cook Airlines, increased its turnover in 2005 by 30.5% to [euro]197.2 million ($238.1 million). Passengers grew 30.1% to 1.76 million, with load factor at 81%. Starting with the summer schedule, SunExpress opened a new base at Izmir. It operates a fleet of nine 737-800s and four 757-200s. Apr 3, 2006 Swissair Swiss prosecutors filed charges last Friday against 19 Swissair managers and its former board in connection with the carrier's financial collapse 4.5 years ago. According to Reuters, among the accused former board members are former Credit Suisse boss Lukas Muehlemann and Thomas Schmidheiny, majority shareholder of cement maker Holcim. The board is accused of having attempted a dubious balance sheet restructuring in the face of massive debts. Former Swissair CEO and Chairman Mario Corti is also accused of having misinformed shareholders in the run-up to Swissair's collapse in October 2001. "The special thing about the case is that it was not business criminals or frauds at work but people who wanted to prevent the demise of Swissair," prosecutor Andreas Brunner said during a news conference. The board is being prosecuted for harming creditors through reduction of assets and mismanagement mis·man·age tr.v. mis·man·aged, mis·man·ag·ing, mis·man·ag·es To manage badly or carelessly. mis·man  age·ment n. , which has a maximum sentence of three years in prison. It was not immediately clear when the case will go to trial. The statute of limitations A type of federal or state law that restricts the time within which legal proceedings may be brought.Statutes of limitations, which date back to early Roman Law, are a fundamental part of European and U.S. law. will apply from mid-2008. Apr 6, 2006 TAP Portugal TAP Portugal parent slides back into the red. Grupo TAP, parent of TAP Portugal, reported a summary result showing a net loss of [euro]9.9 million ($12 million) in 2005, reversing a net profit of [euro]8.6 million in 2004, which was fueled by a [euro]30 million extraordinary gain from the partial sale of ground handling unit Servicos Portugueses de Handling. Turnover was not released, but the carrier said revenues from passenger operations increased 9.5%, revenue from cargo was up 24.4% and maintenance sales grew 28%. Operating expenses climbed 10.8%, or 3.8% excluding fuel cost. Load factor gained 2 points to 72.4% and total boardings amounted to 6.38 million compared to 6.05 million in 2004. Apr 4, 2006 United Airlines United Airlines flew 10.15 billion RPMs in March, a 3.4% rise over the year-ago month. Capacity climbed 2.3% to 12.08 billion ASMs and load factor increased 0.9 point to 84%. Apr 4, 2006 United searches for workers who can help boost service: United Airlines has hired a customer service consulting firm to help hire 4,000 new employees. The airline has added two rounds of interviews and an online survey to the screening process. United wants workers who "have customer service in their DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. ," said Randy Rotondo, United's managing director of human resources. Apr 4, 2006 World Airways World Airways last week paid off the remaining $24 million balance of a $30 million term loan guaranteed by the Air Transportation Stabilization Board The Air Transportation Stabilization Board is an office of United States Department of the Treasury set up after the September 11, 2001 attacks to offer loans to troubled US airlines. External links
ATSB Air Transportation Stabilization Board (USA) ATSB Astronautic Technology (M) Sdn Bhd (Malaysia) ATSB Arbeiter Turn-und Sport-Bund now has no outstanding guarantees, although it does have an $86 million direct loan to ATA Airlines related to that carrier's bankruptcy. World Air Holdings, parent of World Airways and North American Airlines North American Airlines is an American airline based in New York City, USA. It operates scheduled international services from the USA to Africa and Guyana, as well as domestic and international charter services and wet lease services. Its main base is John F. , said the carriers secured a two-year credit facility for loans and letters of credit worth up to $50 million from Wachovia Bank National Assn. Apr 4, 2006 |
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