Airline News - Europe.

For more airline news, data and analysis, please go to: http://www.airguideonline.com/order_formsubs.htm Jul 3, 2006

ERA, the European Regions Airline Association has published its traffic statistics for January - March 2006. Member companies carried 8.5% more passengers in this first quarter - an almost four-point rise from the 4.8% growth recorded for the same period in 2005. Meanwhile, seat km growth was 7.3%, a marginal increase on the 7.2% reported last year, suggesting that airlines have kept capacity at 2005 levels. Passenger load factor continues to grow, with a high of 60.5% recorded for the month of March, while the average for the quarter showed a slight increase to 57.9% (from 57% in 2005). http://www.eraa.org Jun 30, 2006

AEA airlines boarded 320 million passengers in 2005, an increase of 9.9 million over the previous year. In RPK terms, growth was 6.3% whereas ASKs grew 4.3%, producing a record load factor of 76%, 1.4 points up on 2004. Traffic gains were recorded across all regions. Jun 30, 2006

AEA airlines' operating surplus nearly doubles, margins remain low. Assn. of European Airlines members collectively posted a provisional operating profit of $755 million in 2005, up 82.8% from $413 million the previous year, according to data released yesterday in AEA's Yearbook 06.Operating margin of the 30 carriers edged up to 0.9% from 0.4% in 2004, which AEA said "must be regarded as unsatisfactory still for a year in which most of the fundamentals were favorable--strong demand, economic growth, low interest." Jun 30, 2006

AEA airlines' passenger yields rose 1% but were more than offset by an 8.5% increase in unit costs. Almost all the yield improvement was attributed to North Atlantic routes, which recorded a 6.5% gain. Yield on Far East routes edged up 0.9% but intra-European yields fell 0.6%. Fuel was the most important factor in cost development, AEA confirmed, accounting for 20% of 2005 operating costs, up 8 points from just two years earlier. Jun 30, 2006

AEA airlines' passengers carried within Europe neared 250 million, with a ratio of cross-border to domestic traffic of about 3:2. European leisure airlines transported close to 100 million, similar to "no-frills" carriers, and regionals carried about 25 million. Italy was the only one of the top six AEA cross-border markets to show an above-average passenger increase at plus 9.5%. Traffic to/from Germany, France, Spain and the Netherlands grew by less than 5%, and a small decrease was recorded in the UK market probably due in part to ongoing no-frills penetration. Jun 30, 2006

Aeroflot

Aeroflot is increasing its St. Petersburg operation. It intends to boost its summer service to Moscow to nine daily flights, including night flights. It also will introduce A320s onto routes to Europe and plans to restore long-haul flights to destinations in North America and Japan. Jun 28, 2006

Air France 

Air France appointed Florence Parly director-strategy and investments. Parly was formerly president of the Paris-Ile-de-France regional development agency and was budget secretary in the Jospin government from 2000 to 2002. Jun 29, 2006

British Airways 

British Airways is saying "business as usual" whilst two of its most senior executives are on gardening leave following an OFT raid. Who is actually in charge of the commercial and public affairs departments the airline will not say but both areas are functioning as normal. An unnamed source in communications said, "After all we trundle along when Iain is on holiday and so why not now?" The inquiry has been a major cause of speculation over the last week or so, both in the industry and the wider public. The very quiet departure of Paul Moore, head of Virgin Atlantic public affairs, in February, does however now gain some sort of significance. What was the real reason? It has been said that if Virgin had blown the lid on the alleged collusion whilst they may have gained immunity this side of the Atlantic, that was not the case in the US. "The vulture lawyers will be after them," said an expert experienced on these matters. As to Virgin America the same source was equally doubtful. "Yes they can plead that in fact they were showing that they were whiter than white, but you can be just as sure that there will be others who are saying - how can you allow people like this to invest in an American airline?" http://www.ba.com Jun 30, 2006

Croatia Airlines, SN Brussels Airlines 

Croatia Airlines signed a codeshare agreement with SN Brussels Airlines on its Dubrovnik-Brussels service. Jun 28, 2006

CSA Czech Airlines

CSA Czech Airlines plans to improve its business class service on its four A310-300s. The current three-seat configuration will be replaced by a two-seat configuration. CSA said it will add sockets for charging notebook computers and improve video systems. A tender will be announced for the supply of new equipment. The carrier expects the replacement of seats and audiovisual technology to be completed by June 2007. Jun 26, 2006

Smokers International Airways

Smokers International Airways, or Smintair for short, a new German carrier, has been announced and plans to begin daily services between Dusseldorf and Tokyo on 27 March 2007. It calls itself a luxury airline and says the route is aimed at the notoriously nicotine-addicted Japanese businessmen. Somewhat incredulously its website states "By the way, did you know that the Nazis also sported a huge antismoking campaign? Yes, they did and the one we experience now carries exactly the same insignia". The airline intends to use Boeing 747s for the operation with Lufthansa technical backup. Smintair says that the famous 747 bubble will only serve as a lounge, all passengers, that is first and business class, seated on the main deck. http://www.smintair.de Jun 30, 2006

Virgin Atlantic Airways

Virgin Atlantic plans to continue expanding its services, adding a fourth daily London Heathrow-New York JFK flight on July 1 and a second daily LHR-Hong Kong flight from February 2007--it will operate a second flight four-times-weekly on the route from November 2006. It will launch LHR-Montego Bay service July 3 and plans to begin operating twice-weekly 747-400 flights between London Gatwick and Mauritius from November 2007. Montego Bay and Mauritius will become the 27th and 28th destinations in its network. Jun 27, 2006

Virgin Atlantic Airways

Virgin Atlantic said premium-paying passengers, who increased 10.1% over the prior year, provided a big earnings boost. "The profits came despite a tougher operating environment, with a 30% increase in fuel costs over the year and continuing overcapacity on some routes, especially between the UK and the North Atlantic," it said in a statement. Virgin Atlantic and Virgin Nigeria carried a combined 4.9 million passengers for the year, up 11%. Jun 27, 2006

VLM Airlines

VLM Airlines is to upgrade its fleet of 15 Fokker 50 aircraft to provide its passengers with greater legroom, new ergonomic seats and make other improvements to the onboard services offered. The new seat shells are made in one part and have a unique reclining function enabling the entire seat to tilt back, offering a more comfortable position that is proven to be ergonomically better, giving more support for the back and enhancing the general position of the body. The seats are made of Kevlar and carbon fibre and have been manufactured by the Swiss company Fast. Coat hooks have been installed on the side of each seat, enabling passengers to hang jackets with ease. VLM has a seat pitch of up to 33", good by regional airlines standards. New carpets are also being fitted, with toilets and side panels being enhanced, making this the most complete overhaul of the VLM fleet in the award-winning company's 13-year history. The first refurbished Fokker 50 has now been completed, with three more aircraft due to be refitted by the end of the summer. The complete fleet of Fokker 50 aircraft will be refitted by the end of 2007. The airline is the biggest carrier at London City Airport both in terms of movements and passengers carried. http://www.flyvlm.com Jun 30, 2006