Airline Finance News.Airlines add surcharges to offset fuel prices: Airlines are adding surcharges to long flights to cover the soaring price of jet fuel. One expert noted that it now costs $103,400 to fill up a 747-400 flying to Asia, up from $48,000 in 2004. Apr 28, 2006 White House to probe energy costs. The White House plans to investigate the possible manipulation of oil prices, The Wall Street Journal's Tim Annett reports. The Air Transport Association says every cent increase in the price of a gallon of jet fuel boosts annual fuel costs for carriers by $199 million. Apr 26, 2006 Air New Zealand Parameter not given Error... ''Template needs its first parameter as beg[in], mid[dle], or end. Parameter not given Error... Air New Zealand will raise fares on all domestic flights and outbound international flights by 10% on May 1. The carrier said rising fuel costs necessitated the change. "Fuel is now our number one cost," said CFO See Chief Financial Officer. Rob McDonald. "We regret having to increase fares but the numbers are stark." The airline's annual fuel bill has more than doubled since 2004, jumping from NZ$480 million ($303.3 million) to NZ$1 billion. Apr 24, 2006 Asiana Airlines Asiana redirects here. There is also a British Asian magazine called Asiana. | Asiana Airlines (아시아나 항공 Asiana Hanggong KOSDAQ: 020560) (Formerly Seoul Airlines Asiana Airlines earned KRW KRW In currencies, this is the abbreviation for the Korean Won. 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. 41.26 billion ($45.4 million) in the first quarter ended March 31, a 28.9% rise over the year-ago period when it earned KRW32 billion. According to wire service reports, the higher net profit occurred despite a 4.1% decline in 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. to KRW16.6 billion that the carrier attributed to a 37.6% jump in the price of fuel. Operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. grew 9.1% to KRW796 billion. Apr 25, 2006 Aviapartner Aviapartner signed a contract with four Star Alliance members--Lufthansa, Swiss International Air Lines Swiss International Air Lines (short: Swiss) is the principal airline of Switzerland operating scheduled services in Europe and to North America, South America, Africa and Asia. Its main hub is Zurich Kloten Airport (ZRH). , Austrian Airlines and TAP Portugal--to provide full handling activities at Amsterdam Schiphol effective May 1. Value of the contract was not disclosed, but the Brussels-based ground handler said it is "one of the largest contracts" it has signed and covers more than 10,000 flights per year for three years. Apr 25, 2006 Comair Comair, flight attendants union will return to talks. Comair says it plans to return to negotiations with its flight attendants union next month. Earlier this week, a judge refused to void the workers' contract. Apr 28, 2006 Comair's request to cancel its labor contract with 1,100 flight attendants was rejected Wednesday by the US Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. , which ordered the carrier to resume negotiations with cabin staff represented by the International Brotherhood of Teamsters Teamsters large, powerful union of U. S. truckers. [Am. Hist.: NCE, 2703] See : Labor . The Cincinnati-based Regional, a subsidiary of Delta Air Lines, is seeking $8.9 million in annual concessions. Judge Adlai Hardin wrote in his decision that "true negotiation necessarily requires compromise" but that Comair did not attempt to give the flight attendants anything "of substance to bargain for" since the carrier's proposal was "nonnegotiable non·ne·go·tia·ble adj. 1. Difficult or impossible to settle by arbitration, mediation, or mutual concession: a nonnegotiable demand. 2. Nonmarketable. , take-it-or-leave-it." He added that the company's proposal was not "fair and equitable." Comair said it has cost-cutting deals in place with its pilots and mechanics as part of an effort to shed more than $40 million in annual costs, but those deals are contingent upon also reaching an agreement with flight attendants. The union said it is willing to return to negotiations if management "agrees to bargain in good faith." Comair said failure to secure pay cuts from the flight attendants will jeopardize its survival. Apr 28, 2006 Comair, Delta Air Lines Comair may not void attendants' contract, judge says. A bankruptcy judge ruled Wednesday Delta Air Lines' Comair unit may not void its flight attendants' contract. Company officials said they are considering the airline's next move and noted Delta is also weighing the possibility of selling Comair. Apr 27, 2006 Continental Airlines Union hopes to organize two worker groups at Continental. The International Association of Machinists hopes to organize fleet-service workers and customer-service agents at Continental Airlines. Union officials say the workers are interested in organizing. Continental declined to comment. Apr 25, 2006 Delta Air Lines Delta builds up international flying. Delta Air Lines is quickly expanding in international markets. Delta wants international flights to comprise 35% of its revenue by the end of 2006. Apr 26, 2006 Delta union leaders endorse agreement. The leaders of Delta Air Lines' pilots union endorsed a tentative contract agreement with the company. The agreement would extend a 14% pay cut and give the pilots a claim that would convert to a stake in the company. Rank-and-file pilots are expected to complete voting on the contract May 31. Apr 24, 2006 Dniproavia, Lufthansa Dniproavia accused Lufthansa of influencing German aviation authorities to get the Ukrainian carrier's route authority to serve Frankfurt and Berlin cancelled in violation of a 2005 open skies agreement The Open Skies Agreement is a recently negotiated treaty between the United States and the European Union. The agreement will allow any European or U.S. airline to fly any route between any city in the EU and any city in the United States. between the countries. According to an "open letter" from Dniproavia to the Dept. of Aviation of the Federal Republic of Germany and shareholders of Lufthansa Airlines, the German LBA (Logical Block Addressing) A method used to address hard disks by a single sector number rather than by cylinder, head and sector (CHS). LBA was introduced to support ATA/IDE drives as they reached 504MB, and Enhanced BIOSs in the PC translated CHS addressing into LBA , "on Lufthansa's advice," on March 8 prohibited the airline from flying to Germany and cancelled its flights to Berlin and Frankfurt. Dniproavia alleged LH's goal is to monopolize mo·nop·o·lize tr.v. mo·nop·o·lized, mo·nop·o·liz·ing, mo·nop·o·liz·es 1. To acquire or maintain a monopoly of. 2. To dominate by excluding others: monopolized the conversation. the markets. In the letter, it claimed that Lufthansa "used the same method" to force another Ukrainian airline, Donbassaero, off its established routes. Apr 24, 2006 Iberia Iberia is investing [euro]30 million ($37.12 million) to remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. passenger cabins on all of its A319s, A320s and A321s. It plans to complete the refurbishment of nearly 90 aircraft by the end of 2007. Apr 26, 2006 Midwest Air Midwest Air narrows Q1 loss. Midwest Air reported a smaller first-quarter loss. The airline lost $8.7 million, compared to $15.9 million a year ago. Apr 24, 2006 Northwest Airlines Northwest attendants consider changing unions. Flight attendants at Northwest Airlines are considering switching unions. They are currently represented by the Professional Flight Attendants Association The Professional Flight Attendants Association (PFAA) was an independent union which represented the approximately 10,000 flight attendants employed by Northwest Airlines in North America. but have discussed switching to the Association of Flight Attendants The Association of Flight Attendants (commonly known as AFA) is a union representing flight attendants in the United States. AFA represents 55,000 flight attendants at 20 airlines, making it the world's largest flight attendant union. . Separately, the workers will next month begin voting on a new contract proposal that will lower wages. Apr 26, 2006 Northwest pilots drop recall effort: Pilots at Northwest Airlines have stopped an effort to recall the chairman of their union. Northwest pilots are voting now on a new contract that would lower their pay. Apr 26, 2006 Northwest pilot pay would fall short of peer pilots' contract. Northwest Airlines pilots may not ratify a contract proposal because they would be paid about 10% less than Delta Air Lines pilots would under their tentative contract, one analyst said. Before the carriers entered bankruptcy, Northwest pilots made 2% less than their counterparts at Delta. Northwest pilots are voting on the contract now. Apr 25, 2006 Pinnacle Airlines Pinnacle Airlines said it surpassed the operating performance levels outlined in its services agreement with Northwest Airlines during the first quarter and posted a profit of $13.3 million, 43% lower than a $23.3 million profit in the year-ago quarter that was boosted by an $18 million pre-tax gain related to the repurchase of a note payable to NWA NWA Northwest Airlines (ICAO code) NWA Northwest Arkansas NWA National Wrestling Alliance NWA National Weather Association NWA National Works Agency (Jamaica) NWA Network Analyzer . Pinnacle's operating revenues rose 6.3% to $207.1 million against a 6.2% climb in expenses to $185.6 million and operating profit improved 7.3% to $21.5 million. Traffic increased 19% to 971.8 million RPMs and capacity grew just 4% to 1.34 billion ASMs, lifting load factor 8.9 points to 72.4%. The 2% rise in unit costs matched that of revenues as 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 increased to 13.83 cents and RASM RASM Revenue per Available Seat Mile RASM Reliability, Availability, Scalability and Manageability (Red Hat, Inc.) RASM Rear Admiral Submarines (UK) RASM Recorded Announcement Systems Manager to 15.44 cents. Pinnacle said that NWA again has extended the deadline, this time to May 15, for requesting $21.7 million in additional security deposits from the Regional related to aircraft subleases. Pinnacle "expects this matter to be resolved during its discussions with Northwest," although the latter has not set a schedule. Apr 28, 2006 Republic Airways Republic Airways Holdings Republic Airways Holdings, Inc. (NASDAQ: RJET) is an aviation holding corporation based in Indianapolis, Indiana, which owns three regional airlines operating in the United States: Chautauqua Airlines, Republic Airlines and Shuttle America. posted first-quarter net income of $16.9 million, a 14% increase over the $14.8 million earned in the year-ago quarter. Revenues increased 22.7% to $257.3 million while 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. rose 20.9% to $209.4 million. RPMs jumped 42.9% to 1.37 billion on a 36.5% increase in ASMs to 1.97 billion, sending load factor up 3.1 points to 69.9%. Apr 28, 2006 US Airways Strong revenue boosts US Airways stock. Strong revenue gains are increasing the price of shares in US Airways. The carrier expects to post a profit this year, excluding merger costs. Shares of US Airways rose to more than $41 Monday. Apr 25, 2006 Virgin America Virgin America's domestic flights concern U.S.. U.S. carriers are asking regulators to look more closely at Virgin America's application to fly domestically. Richard Branson's Virgin Group helped solicit investors, but has had no role in running the airline, according to a regulatory filing. Federal law restricts overseas investment in airlines for national security reasons. Apr 27, 2006 |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion