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Airlines currently excluded from cover:
* Please note cover excludes any airline that has filed
or applied for any form of insolvency or insolvency
protection at the time of effecting cover
ALITALIA - as of 3rd April 08
MESA Airlines - as of 5th January 2010
JAPAN AIRLINES - as of 19 January 2010
AIR JAMAICA - as of 21 January 2010
News Reports and notices.
11 March 2010
Air India parent expected loss
News reports state that Air India parent National Aviation Co. of India is expected to lose approximately INR54 billion ($1.18 billion) in its fiscal year ending March 31, similar to the INR55.48 billion deficit suffered in 2008-09, with losses "likely to continue for [a] few more years," Civil Aviation Minister Praful Patel told parliament. The carrier's restructuring plan, a condition of its government bailout, "envisages benefits" of INR19.11 billion in 2009-10, although NACIL has implemented just INR7.53 billion. The company's outstanding fuel bill has reached INR17.41 billion, a debt that the government insists should be resolved "expeditiously." Patel said, "Additional measures to enhance revenues are part of the turnaround plan. These will include measures to enhance yields and improve load factors that have remain[ed] depressed in the recent years. Additional measures to cut costs including wage rationalization and other expenses are also part of the turnaround process."
10 March 2010
Additional layoffs ahead as Aer Lingus plunges to loss
News reports state that Aer Lingus Group reported a loss before taxes and exceptional items of €66.2 million ($90.4 million) in 2009, reversed from an €18.8 million profit in 2008, and a quadrupling of its operating loss to €81 million from €20 million.
3 March 2010
Lufthansa suffers first net loss six years
News reports state that Lufthansa yesterday said it ended a "difficult" 2009 with a net loss of €112 million ($151.9 million), reversed from a restated 2008 profit of €542 million and the company's first full-year deficit since 2003.
Revenue fell approximately 10% to €22.3 billion, while operating profit plunged 90% to €130 million from €1.3 billion in 2008.
The net result implies an €80 million fourth-quarter net loss based on the €32 million deficit incurred through the first nine months of 2009. LH said when announcing its third-quarter results in late October that a full-year operating surplus might be out of its reach. It was €226 million in the black on an operating level through Sept. 30, meaning it suffered an operating loss of €96 million in the fourth quarter.
2 March 2010
Hungarian government reclaims struggling Malev
News reports state that The Hungarian government reacquired control of its flag carrier, Malev Hungarian Airlines, spending HUF25.2 billion ($126.7 million) on a 95% stake that will see the airline return to state control after three years as a privately held company.
The money-losing airline turned to the government for support last autumn in the face of losses that reached HUF10 billion in 2008. The Vnesheconombank-backed AirBridge consortium had taken control of Malev in February 2007 and will continue to hold 5% of the carrier.
1 March 2010
Cyprus airways reverses profit
News reports state that Cyprus Airways lost €3.3 million ($4.4 million) in 2009, reversed from a €1.7 million profit in 2008, as traffic and yield fell sharply. The carrier attributed the result to the "world economic crisis that adversely affects the airline industry." Revenue dropped 20.1% to €249 million and the operating loss of €5.7 million compared to a €2 million surplus the prior year. CY said it has sufficient liquidity to meet its obligations. It sold three older A320s last year and hopes to find buyers for its remaining four owned A320s. It plans to take delivery of four newer leased A320s this year and two in 2011.
1 March 2010
JAL reports record $2 billion nine-month loss
News reports state that Japan Airlines posted a net loss of ¥177.9 billion ($1.99 billion) for the first three quarters of its fiscal year ended Dec. 31, 2009, considerably widened from a ¥1.9 billion loss for the prior-year period.
The result represented a record nine-month deficit for the bankrupt carrier, which said Friday it is establishing an independent investigative committee to "examine past business practices." It said in a statement that it "recognizes and is deeply apologetic for the current situation that has caused great inconvenience and concern to our shareholders, financial creditors, customers, suppliers and other related parties."
26 February 2010
Iberia's profit streak ends with €273 million loss
News reports state that Iberia Group ended what may be its final year as an independent carrier on a sour note, reporting a consolidated net loss of €273 million ($369.8 million) for 2009, reversed from a €32 million surplus the prior year.
The deficit also ended a 13-year annual profit streak for the Spanish airline that is merging with British Airways. Operating revenue plunged 19.2% to €4.46 billion and operating expenses declined 10.9% to €4.93 billion. IB's operating loss widened sharply from a €79 million deficit in 2008 to €464 million last year.
23 February 2010
China Southern receives another CNY1.5 billion from Beijing
News reports state that China Southern Airlines received a CNY1.5 billion ($219.6 million) capital injection from the Chinese government that is expected to reduce the carrier's debt ratio, which stood at around 80% last Sept. 30.
The Guangzhou-based airline will suspend trading today as it develops a plan to issue additional shares to absorb the new capital. Beijing reportedly has CNY15 billion to distribute to the "big three" state-owned carriers. In 2008-09. China Eastern Airlines and CZ received CNY9 billion and CNY3 billion in government cash respectively. Air China last month announced a CNY1.5 billion injection to pay back loans used to finalize last year's acquisition of its Air China Cargo subsidiary
18 February 2010
Qantas profits plunge 72%
News reports state that Qantas is to eliminate most first class service as half-year profit plunges. Qantas yesterday reported a A$58 million ($52.2 million) profit for the half-year ended Dec. 31, down 72% from the A$210 million earned in the year-ago semester, and announced the elimination of first class service to all but two destinations in an effort to lift yield.
The group result would have been a loss but for the contribution of low-cost subsidiary Jetstar Airways, which trebled its earnings, and the frequent-flyer program that doubled earnings. Consolidated revenue slumped 14% to A$6.09 billion while costs declined 15% to A$6.76 billion. Operating profit sank 48% to A$143 million from A$274 million in the first half of fiscal 2008-09.
The Qantas mainline unit posted EBIT of A$60 million, down 63.33% year-over-year, while Jetstar recorded a thumping 181% lift in EBIT to A$121 million. The loyalty program reported EBIT of A$157 million.
12 February 2010
Blue Wings announces its insolvent
News reports state that Blue Wings announced that it was insolvent yesterday, a month after suspending service. The Dusseldorf-based carrier said that "insolvency has become unavoidable since our principal Russian investor [48% shareholder Alexander Lebedev] has not kept his financial promises over the past several months." There is no indication that the carrier may resume flights, and no information was available regarding CEO Jorn Hellwig's effort to purchase Lebedev's stake. Hellwig owns 26% of Blue Wings
** Under the terms of conditions of IPP's Insurance cover was withdrawn for this airline of policies and tickets purhcased on 13th January when the airline ceased operations.
11 February 2010
Air France KLM reports reduced but heavy third-quarter loss
News reports state that Air France KLM Group reported a net loss of €295 million ($404.6 million) for its fiscal third quarter ended Dec. 31, 2009, a 41.9% improvement compared to a loss of €508 million in the year-ago period when results were impacted severely by fuel hedge losses.
11 February 2010
Air Canada posts C$24 million 2009 loss, focuses on cost-cutting
News reports state that Air Canada reported a 2009 net loss of C$24 million ($22.4 million), significantly improved over a net loss of C$1.03 billion in 2008, as it was helped by C$657 million in gains on foreign exchange that were reversed from C$655 million in losses in the prior year.
President and CEO Calin Rovinescu said the carrier "overcame tremendous challenges" last year and has started 2010 in a far "more stable financial position"
10 February 2010
SAS loses $400 million in 2009, extends cost cuts
News reports state that SAS Group lost SEK2.95 billion ($400 million) in 2009, improved 53.7% from the SEK6.36 billion deficit suffered the year before, but the company felt additional cost cuts were necessary and extended its Core SAS reduction program by SEK2 billion to SEK7.3 billion.
8 February 2010
Finnair annual loss doubles to €102 million
News reports state that Finnair reported a 2009 net loss of €102 million ($142.2 million), more than double the €46.3 million loss it suffered in 2008, citing a "historically difficult year" in which demand and yield plunged.
President and CEO Mika Vehvilainen, who took over the carrier's helm on Feb. 1 (ATWOnline, Nov. 12, 2009), said last year "was made particularly difficult by a sharp fall in domestic demand as well as price competition due to overcapacity in the sector on many of our main routes. . .Costs could not be cut as quickly as revenue declined." He said international business and cargo traffic are showing signs of recovery, "but this is still subject to strong price pressure."
He warned that the early part of this year continues to be "difficult," noting that "domestic demand shows no signs of recovery." In addition to continuing to cut costs (the carrier initiated a program in 2008 to slash €200 million in annual costs, of which €150 million has been realized), it "must . . . make every effort to increase growth in demand, create new sources of revenue and improve average prices," Vehvilainen said.
5 February 2010
BA makes record losses
News reports state that British Airways posted its worst ever financial performance and scrapped its dividend today as high fuel prices and a collapse in business travel forced the airline into a loss of £401m.
BA swung from a record profit last year to its biggest deficit since privatisation in 1987 after it was hit by a near-£3bn fuel bill, the weak pound and the sudden deterioration in its most important market, transatlantic business customers, due to the banking crisis.
In a grimly pessimistic set of annual results, Heathrow airport's largest airline declined to offer investors new guidance for this year because of the dire state of the airline market.
Willie Walsh, BA's chief executive, confirmed that no upturn was in sight. "I don't think the economic environment will improve. We don't see any signs of recovery, nothing, right across the globe in all the markets we operate in," he told Guardian.co.uk.
Shares in the flag carrier fell 6.6% to 152p in early trading as Walsh added that, despite signs of the downturn bottoming out in the US, he saw "no green shoots".
1 February 2010
ANA remains in red with $108.7 million third-quarter loss
News reporst state that ANA suffered a ¥9.8 billion ($108.7 million) loss in its fiscal third quarter ended Dec. 31, a 22.2% improvement from the ¥12.6 billion lost in the year-ago period, and maintained its full-fiscal-year forecast of a ¥28 billion deficit.
"The business downturn. . .has been continuing, and passenger demand is taking longer than expected to cover," the company said, adding that economic stimulus measures at home and abroad "have had some effect" and that exports, production and consumer spending are "picking up," especially in Asia. However, it admitted that cost-cutting measures were insufficient "to offset the slump in demand and fall in unit prices".
28 January 2010
Air India reports slightly narrowed third-quarter loss
News reports state that Air India announced a loss of INR14.74 billion ($316.8 million) in its fiscal third quarter ended Dec. 31, 2009, a 9.7% improvement from the INR16.32 billion deficit reported in the year-ago period.
28 January 2010
United narrows 2009 loss
News reports state that United Airlines parent UAL Corp. posted a 2009 net loss of $651 million, narrowed 87.9% from a $5.4 billion loss in 2008, and said it and the airline industry must continue to pare down costs.
28 January 2010
Delta Loss
News reports state that Delta’s year-end net profit of USD291 million it turned into a net loss of USD1.1 billion, despite a USD6 billion decline in revenue year on year. The special items totaled
USD169 million, with USD1.4 billion in fuel hedge losses. The company ended the year with USD5.4 billion in unrestricted
liquidity, a USD400 million increase year-on-year.
It was only special items that kept Delta from USD291 million profit to a net loss of USD1.1 billion.
For the fourth quarter, Delta posted net losses of USD225 million or USD0.27 per share, a USD285 million improvement over the year-ago
quarter, ex special items. With special items, the net loss for the quarter was USD25 million. The carrier's 4Q2009 operating loss was USD46
million.
28 January 2010
IATA confirms 2009 as worst year in aviation history
News reports state that IATA is describing 2009 as “the worst year the industry has ever seen”. Director Gen
industry “permanently” lost 2.5 years of growth in passenger markets and 3.5 years
"permanent" loss of traffic is a big statement, reflecting structural shifts that are occ
markets may never be the same again.
25 January 2010
Kingfisher continues to bleed, loses $91 million in third quarter
News reports state that Kingfisher Airlines reported a INR4.2 billion ($90.9 million) loss in its third fiscal quarter ended Dec. 31, widened 1.7% from INR4.13 billion in the year-ago period, with about half of the deficit resulting from one-time exceptional items and foreign exchange losses.
25 January 2010
Kingfisher continues to bleed, loses $91 million in third quarter
News reports state that Kingfisher Airlines reported a INR4.2 billion ($90.9 million) loss in its third fiscal quarter ended Dec. 31, widened 1.7% from INR4.13 billion in the year-ago period, with about half of the deficit resulting from one-time exceptional items and foreign exchange losses.
Third-quarter revenue fell 5% to INR13.7 billion and operating expenses were cut 17% to INR14.48 billion. Employee and fuel costs decreased 22% and 20% respectively, but INR2.18 billion in exceptional items (compared to INR470 million the year before) erased the effect of the cost cuts.
The Bangalore-based airline said passenger numbers rose 4.2% to 2.7 million. Traffic climbed 14.8% to 2.66 billion RPKs against a 7.5% cut in capacity to 3.57 billion ASKs, fueling a 14.5-point surge in load factor to 74.6%. Yield plunged 18.7%, however, to INR5.08. Unit cost was lowered 10.4% to INR4.06. Kingfisher ended the quarter with 68 aircraft in operation compared to 83 on Dec. 31, 2008.
21 January 2010
Air Jamaica to close by June
News reports state that the Jamaican government has committed to wrapping up the operations of Air Jamaica by June, if a deal with Trinidad and Tobago to take on the loss making airline falls through.
The administration revealed its intention to initiate liquidation of the airline by June in the Letter of Intent sent off to the International Monetary Fund last week.
Talks are ongoing with the Trinidad state-owned Caribbean Airlines to take Air Jamaica off government books.
A deal was expected to be signed over the past weekend to that end, but it never materialised.
21 January 2010
American reports $1.47 billion 2009 loss
News reports state that American Airlines parent AMR Corp. kicked of the US airline industry's full-year reporting season yesterday by announcing a $1.47 billion net loss for 2009
19 January 2010
Japan Airlines files for bankruptcy administration
News reports state that Japan Airlines Corp said on Tuesday it had filed for bankruptcy administration with 2.3 trillion yen ($25.4 billion) in debt as of the end of September, as it seeks to revive itself under a state-backed restructuring plan.
The Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms, has said it will support the carrier.
14 January 2010
Grounded German carrier Blue Wings seeks investor
News reprts state that Germany's Blue Wings is looking for funds following a dispute with shareholder Alexander Lebedev, as financial problems led regulators to ban the Duesseldorf-based airline from flying.
The carrier halted flights earlier on Wednesday, mere hours before German aviation authorities revoked its operating license for the time being, according to a spokesman for the company.
12 January 2010
JAL bankruptcy filing nearer
News reports state that Japan Airlines is expected to announce within days that it will file for bankruptcy later this month as part of a turnaround plan that will include eliminating 15,600 jobs, according to news reports from Tokyo.
Kyodo News stated that the Enterprise Turnaround Initiative Corp. of Japan, which will oversee JAL's restructuring, is detailing a recovery path that will enable the carrier to keep operating during bankruptcy but force it to make significant cuts in jobs, pension benefits and wages and to sell assets such as JAL Hotels
11 January 2010
Mesa Air Group Files For Bankruptcy Protection Under Chapter 11
Independent regional air carrier Mesa Air Group, Inc. voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Tuesday 05 January 2010. The company blamed continued lease obligations on aircraft in excess to current requirements.
The company said during the restructuring it will continue to operate as normal, without interruption.
23 December 2009
Spanish Air Comet collapses as administrators impound planes
News reports state that Spanish low cost carrier Air Comet has gone bust, cancelling all services and leaving thousands of passengers stranded after all of the airline’s aircraft were impounded by creditors on Tuesday.
Air Comet largely operates services out of Madrid to destinations in Latin America including daily services to Argentina Ecuador and Peru, and with its collapse left thousands stranded days before Christmas.
16 December 2009
Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration
News reports state that Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration this evening.
Last year the airline, which employs 600 staff, carried more than 1.5m passengers and operated 12,000 flights.
A statement is expected soon from PricewaterhouseCoopers, (PWC) which has been appointed as administrator.
The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down today.
Many of those flying with the airline booked online or direct with the company and not through a registered travel agent, leaving them potentially out-of-pocket.
Flights booked this way will not be reimbursed, though those who booked with a credit card or had arranged their own insurance may be covered.
Ryanair has said it will launch a Flyglobespan "rescue fare" to and from Edinburgh and Prestwick airports for any passengers affected.
The Ryanair offer applies to flights into and out of Prestwick to Alicante, Faro, Gran Canaria, Lanzarote, Malaga, Palma and Tenerife, and into and out of Edinburgh to Alicante, Gran Canaria, Lanzarote, Malaga and Tenerife.
11 December 2009
Serbia's Jat Aiways seen facing reform or demise
News reports state that Serbia's state airline Jat Airways is seen having to become more competitive or fade away after the European Union relaxed travel between Belgrade and the bloc, prompting rivals to step up penetration of its home market.
After years of bolstering by the government and protection against outside competitors, the stakes have increased dramatically for Jat following the EU's decision allowing Serbs, FYR Macedonians and Montenegrins to travel visa-free to the EU.
8 December 2009
Jat Airways expects to lose €15 million this year
News reports state that Jat Airways expects to lose €15 million ($22.3 million) this year, lower than the €20- €25 million anticipated previously, but will need €20-€32 million in loans to maintain operations, CEO Srdjan Radovanovic told the Associated Press. He also said that Turkish Airlines has shown "the most serious" interest in investing in the carrier.
30 November 2009
WizzAir suffers €9.5 million in losses
News reports states that the low-cost Budapest-based airline company WizzAir recorded group-level losses of €9.5 million in the business year ended in March 2009, while the company has so far said it is profitable, the business daily Napi Gazdaság reported on Friday, quoting the on-line issue of the Czech newspaper Mlada Fronta Dnes.
26 November 2009
Malaysia Airlines returns to red with a $88.2 million loss
News reports state thate Malaysia Airlines returned to the red in the third quarter, reporting a MYR298.9 million ($88.2 million) loss that represented a reversal from the restated MYR38.6 million surplus earned in the year-ago period and its second deficit in three quarters this year.
A precipitous 26.8% year-over-year plunge in operating revenue to MYR2.89 billion, plus a MYR202.1 million loss on fuel hedges, proved too much for MAS to overcome. Nevertheless, MD and CEO Azmil Zahruddin said that "fuel prices are on an upward trend [and] hedging is the right policy as fuel prices remain volatile."
20 November 2009
Asia/Pacific airlines expect $4.8 billion 2009 loss
News reports state that the Assn. of Asia Pacific Airlines' Assembly of Presidents started on a sober note yesterday with DG Andrew Herdman telling media that the group of 17 Asia/Pacific carriers is expected to lose $4.8 billion this year owing mainly to the global economic downturn.
"The loss will top the $4.3 billion suffered in 2008," Herdman said, adding that airlines remain uncertain of whether signs of a "fragile recovery in passenger and cargo volumes will prove to be sustainable." For the year to Oct. 31, AAPA member carriers' international passenger numbers were down 8.2% year-over-year while cargo traffic slumped 16.5%, particularly troubling in a region where many airlines generate 30% or more of their revenue from airfreight.
17 November 2009
Thai Airways - THB4.03 billion ($119.5 million) loss
News reports state that Thai Airways reported a THB4.03 billion ($119.5 million) loss in the third quarter, reversed from a THB426.2 million profit in the year-ago period that was the product of a large foreign exchange gain. Revenue dropped 27.7% year-over-year to THB39.15 billion while expenses including finance costs and excluding foreign exchange losses fell 31.2% to THB40.27 billion owing largely to a 50.1% fall in average fuel price and capacity cuts. TG President Piyasvasti Amranand said that as a result of the downturn, the airline "adjusted its capacity to better reflect demand. . .and implemented aggressive marketing strategies." Yield excluding fuel surcharges fell 17.1% to THB2.34 and load factor rose 0.7% to 73.9%. Nine-month loss totaled THB1.57 billion as a result of the third-quarter deficit but still a significant improvement from the THB6.61 billion suffered in the first nine months of 2008.
16 November 2009
Iberia swings to $24.5 million loss
News reports statet that in an announcement that highlighted the reasons it agreed to merge with British Airways, Iberia Friday reported a €16.4 million ($24.5 million) third-quarter loss that represented a reversal from the €304 million profit earned in the year-ago period.
Operating revenue plunged 19.6% year-over-year to €1.17 billion "in keeping with the trend throughout the year, as passenger traffic continued to decline, particularly in the business segment," IB said (ATWOnline, Oct. 26). Costs were cut 14.9% to €1.22 billion and the company swung to a €56 million operating loss from a €21.3 million surplus in the 2008 third quarter. It credited capacity and staff cuts for its improvement from the first and second quarters of 2009.
Traffic fell 6% to 13.37 billion RPKs against a 4.8% cut in capacity to 16.28 billion ASKs, lowering load factor 1.1 points to 82.1%. Yield dropped 13.8% to 6.41 euro cents and operating RASK was down 15.5% to 7.17 euro cents. Unit cost fell 10.6% to 7.5 euro cents, or 0.8% to 5.6 euro cents excluding fuel.
IB ended the quarter with 114 aircraft compared to 125 the prior year. Its nine-month loss of €181.9 million compared to a €51.1 million profit after the first three quarters of 2008. It said its financial position was "sound" as its net debt position remained negative. IB and British Airways announced a merger agreement last Thursday.
16 November 2009
JAL posts big quarterly loss, seeks third-party mediation with creditors
News reports state that troubled Japan Airlines Friday reported a net loss of ¥32.1 billion ($357 million) for its fiscal second quarter ended Sept. 30, reversed from a ¥40.1 billion profit in the year-ago period, and announced it has applied for "certified alternative dispute resolution," an out-of-court mediation process that enables strapped Japanese companies to negotiate debt settlements with creditors.
The quarterly loss brought JAL's fiscal first-half deficit to ¥131.2 billion, reversed from a ¥36.6 billion profit in the year-ago period and its worst first-half performance since the 2002 JAL/Japan Air System merger. CFO Yoshimasa Kanayama conceded to reporters in Tokyo that the result, driven by the global economic downturn, was "extremely bad."
While Japanese government officials had indicated last week that elements of a restructuring plan could be unveiled prior to the results release, JAL said Friday that "agreement regarding the proposed business revitalization plan has not yet been reached between the parties concerned." Its turnaround is expected to be overseen by the Enterprise Turnaround Initiative Corp. of Japan, a newly created quasi-government entity designed to help rescue struggling companies.
But it may take ETIC some time to finalize a restructuring plan, necessitating Friday's application for third-party mediation that could result in immediate debt relief while the turnaround strategy is formulated. In addition, the Development Bank of Japan may extend a bridge loan and the Japanese government is pushing for special legislation that would ease JAL's pension burden. Kanayama said the company will need around ¥125 billion in loans to enable it to get through the second half of its fiscal year ending March 31.
Meanwhile, President Haruka Nishimatsu said JAL would like to decide on an international tie-up by year end. American Airlines and Delta Air Lines have been jockeying to make an investment in the Tokyo-based carrier, with JAL's continued participation in oneworld or a switch to SkyTeam at stake. Nishimatsu told reporters Friday it would "make more sense" to remain a part of oneworld, according to Bloomberg News.
15 November 2009
Flyglobspan last minute cash injection to stave off collapse
News reports state that Flyglobespan, Scotland's biggest airline, is believed to have staved off collapse with a last-ditch cash injection on Friday evening.
Administrators were lined up to handle the airline's collapse but directors at Globespan Group managed to secure new funding at the 11th hour. But it is not known whether the additional cash has secured the long-term future of the airline.
It's believed that the Civil Aviation Authority, the industry regulator, was informed about the possible collapse of "an airline". Contingency plans to repatriate thousands of passengers who would have been left stranded by a collapse are thought to have been drafted.
The troubled group also operates baggage and check-in facilities for rival budget airline FlyBe at Glasgow and Edinburgh airports. And last year the company won contracts from the Ministry of Defence to fly to the Falkland Islands and Qatar from RAF Brize Norton in Oxfordshire.
An industry source said: "This is a difficult time for airlines and the travel world. I don't think that anyone can be considered safe."
12 November 2009
Air India's full-year loss doubles
News reports state that Air India lost INR55.48 billion ($1.19 billion) in the fiscal year ended March 31, more than double the INR22.26 billion deficit suffered in the prior year, the carrier announced yesterday.
Revenue dropped 11.6% to INR134.79 billion owing to "global recession, fall in load factors and passenger yields," AI said. Passenger numbers declined 21.6% to 10.4 million and load factor dropped 4.3 points to 59.5%. The airline is seeking some INR50 billion in cash and loans from the government
6 November 2009
British Airways record £292m loss
News reports state that British Airways has plunged to a record pre-tax loss of £292m over the past six months, traditionally its most profitable trading period, as the airline fights to stave off Christmas strike action that will deepen its financial woes.
British Airways chief executive, Willie Walsh, warned BA's 38,690 staff that the airline's worst first half results since privatisation made further cost reductions "essential".
6 November 2009
ExpressJet Holdings loss of $9 million
News reports state that 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.
30 October 2009
Pakistan International Airlines lose PKR5.38 billion ($64.5 million)
News reports state that Pakistan International Airlines lost PKR5.38 billion ($64.5 million) in the third quarter, narrowed from a PKR20.4 billion loss in the year-ago period, according to a stock exchange filing cited by Bloomberg News. Revenue dropped 3.5% to PKR22 billion. PIA said the rupee's improved standing against the US dollar buffeted its bottom line. Nine-month loss of PKR10.8 billion compared to a deficit of PKR38.4 billion last year.
30 October 2009
Finnair loses €20.7 million in third quarter, sees tough times ahead
News reports state that a "steep fall" in fares and weak domestic demand helped sink Finnair to a €20.7 million ($30.6 million) third-quarter loss, widened 16.3% from a €17.8 million deficit in the year-ago period, and left the carrier admitting it "still has a long way to go before its corporate structures and the operating conditions they create are sustainably competitive."
The "poor demand and price levels" in Finland mean Finnair is dependent on its Asian business, which now accounts for more than half its scheduled traffic revenue. "The decline in demand for business travel has stabilized at a lower level, but overcapacity in the sector is continuing to keep ticket prices low, irrespective of the customer segment," it said.
Third-quarter revenue plunged 21.8% to €436.9 million while operating expenses were down 15% to €477.1 million. Operating loss improved slightly to €24.1 million from €25.5 million in the year-ago period. Finnair said the results were "in line with our predictions."
29 October 2009
Kingfisher Airlines suffers a INR4.19 billion ($88.8 million) los
News reports state that Kingfisher Airlines suffered a INR4.19 billion ($88.8 million) loss in the fiscal second quarter ended Sept. 30, a 13.3% improvement from the INR4.83 billion deficit suffered in the year-ago period, according to a filing with the Bombay Stock Exchange cited by numerous press reports from India. Revenue dropped 13.7% to INR11.42 billion
28 October 2009
Jet Airways suffers deeper loss, sees 'revival' on horizon
News reports state that A five-day pilot strike combined with "a lean season and lower yields" dragged India's Jet Airways to a INR4.07 billion ($86.6 million) loss in its fiscal second quarter ended Sept. 30, deepened 5.8% from the INR3.85 billion deficit reported in the year-ago period.
23 October 2009
Delta $161 million loss
News reports state that Delta Air Lines reported a third-quarter net loss of $161 million, widened from a $50 million deficit in the year-ago period, blaming $212 million in special charges and a "significant revenue decline" driven by global economic weakness.
Charges included an $83 million noncash hit associated with the refinancing of subsidiary Northwest Airlines' debt, $78 million in merger-related items and $51 million for employee severance. Absent the charges, DL would have posted net income of $51 million, reversed from a $64 million loss on a similar basis in the 2008 third quarter.
23 October 2009
US Airways improves but remains in the red
News reports state US Airways reported an $80 million loss in the third quarter, narrowed considerably from the year-ago period's $866 million deficit that resulted from heavy fuel hedge losses and other special charges. Excluding special items, US was $110 million in the red, compared to $243 million on a similar basis last year.
23 October 2009
Special charges push Delta to $161 million loss
News reports state that Delta Air Lines reported a third-quarter net loss of $161 million, widened from a $50 million deficit in the year-ago period, blaming $212 million in special charges and a "significant revenue decline" driven by global economic weakness.
22 October 2009
American falls to $359 million third quarter loss
News reports state that American Airlines parent AMR Corp. reported a $359 million loss in the third quarter, reversed from a $31 million surplus in the year-ago period, but claimed recent financing announcements and network adjustments "better position it to address near-term challenges and achieve long-term success."
The loss included some $94 million in one-time charges related to sold and grounded aircraft, while the year-ago result was boosted by a $432 million gain from the sale of American Beacon Advisors.
Key to the third-quarter 2009 deficit was a 20.2% year-over-year plunge in revenue to $5.13 billion that was "largely driven by reduced capacity and the reduced demand for air travel and cargo resulting from the global economic downturn," AMR said. Expenses were cut 19.8% to $5.32 billion, thanks in part to a 46.6% fall in fuel costs, and operating loss narrowed 10% to $194 million from $216 million in the year-ago period.
9 October 2009
Kingfisher yet to settle fuel dues with BPCL
News reports state that The state-owned Bharat Petroleum Corporation (BPCL) and the Vijay Mallya-controlled Kingfisher Airlines have not been able to reach common
ground on the settling of dues that Kingfisher owes to the oil marketing company.
Kingfisher counsel Navroz Seervai disputing the claim of insolvency, argued that the airline was paying about Rs 130 crore to another petroleum major for the monthly supplies. He also said the airline could not pay anything more than Rs 10 crore a month, bringing to the court’s notice that in view of the economic downturn, all major airlines were going through a bad patch
2 October 2009
Frontier Airlines emerges from Chapter 11, cover re-instated
News reports state that Frontier Airlines has emerged from Chapter 11. Cover is therefore re-instated under IPP's cover for policies / tickets issued with immediate effect.
1 October 2009
JAT's debt to maintenance company $1.5 million
News reports state that - Serbian flag carrier JAT grounded its fleet on Wednesday after staff from maintenance company JAT Tehnika refused to work on its aircraft because of the airline's overdue debts, a spokeswoman said.
30 September 2009
Cover re-instated for JAL
Further to withdrawl of cover for JAL on 24th September, cover has now been re-instated with immediate effect
28 September 2009
Japan minister says JAL won't be liquidated
News reports state that Japan's transport minister said Sunday he will not force the struggling Japan Airlines, Asia's biggest airline, into bankruptcy.
"We will not crush and liquidate (the airline)," Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show. "It's just impossible."
A team of government-appointed corporate turnaround experts was set up Friday to create a restructuring plan for the airline, whose own draft reconstruction plan Maehara called "insufficient."
The team will make a recommendation to the transport minister by late October or early November.
Officials from the airline and the transport ministry were not available for comment Sunday.
The airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June, and has forecast a net loss of 63 billion yen ($701 million) for the current fiscal year to March 2010. JAL was privatized in 1987.
JAL has sought public funds for survival. Its request for taxpayer money came months after it received 60 billion yen ($668 million) in loans from the government-owned Development Bank of Japan in June.
In his meeting Thursday with the transport minister, JAL President Haruka Nishimatsu revealed that the airline is short 450 billion yen ($5 billion) through March 2011, money that is needed for debt repayment, according to media reports. Nishimatsu reportedly told Maehara that JAL was planning to cover part of the payment by selling off its in-flight meal catering unit and reviewing company pension plans.
JAL's original restructuring scheme also included 6,800 job cuts, or around 14 percent of its workers.
The airline has reportedly been in talks on financial tie-ups with several top airlines including Delta Air Lines Inc., the world's biggest airline operator, its rival American Airlines Inc. and Air France-KLM, Europe's biggest airline group.
26 September 2009
* JAL on the brink of collapse
News reports state that Japan Airlines is teetering on the brink of collapse as the government refused calls to save it from a $15 billion debt pile yesterday (September 24).
A Japanese government task force has now been formed which may split the carrier into “good” and “bad” parts. It will report back at the end of November.
The request for the bail out was made by JAL president Haruka Nishimatsu at a meeting with Japan’s new transport minister, Seiji Maehara, as reported yesterday.
* ** Under the terms and conditions of IPP's policies cover is exlcuded with immediate effect for tickets and policies issued on or after 24th September 2009
25 September 2009
Troubled JAL seeks government bailout
News reports state that Japan Airlines President Haruka Nishimatsu yesterday asked Seiji Maehara, Japan's new transport minister, for a government bailout, conceding that even a cash infusion from a foreign investor likely won't be enough to keep the troubled carrier afloat.
16 September 2009
Current crisis 'worse than 9/11' as IATA boosts loss forecast to $11 billion
News reports state that Declaring that the situation facing the world's airlines "has never been more difficult," IATA DG and CEO Giovanni Bisignani said yesterday in Washington that the airline industry now is expected to lose $11 billion this year, a deterioration from the association's forecast of a $9 billion loss issued at its AGM in early June.
Key factors driving the downward revision are rising fuel prices and "exceptionally weak yields," which will cause revenues to decline by 15% or $80 billion this year to $455 billion.
2 September 2009
IATA: Second-quarter losses plunge past $2 billion
News reports state that IATA said 54 airlines that have reported second-quarter financial results have lost a combined $2.02 billion, a figure signifying a "further deterioration" the organization said is troubling considering that carriers "usually make 50% of their profits in this seasonally strong quarter."
The reporting carriers lost $926 million in the year-ago period and approximately $4 billion in the 2009 first quarter, IATA said in an Airlines Financial Monitor released yesterday. The industry's second-quarter operating loss of $468 million compared to a $2.3 billion profit in the 2008 second quarter.
Twenty North American airlines lost a combed $134 million last quarter, narrowed 68% from $419 million in the year-ago period. Twelve European carriers suffered a $1.1 billion loss, reversed from a $439 million profit, while 16 Asia/Pacific airlines lost $1.29 billion, widened 34.7% year-over-year.
1 September 2009
SkyEurope suspends all flights
News reports state that Slovakia-based no-frills airline SkyEurope has suspended all its operations because of what it described as a “lack of suffucient interim funding”.The airline has been in bankruptcy protection since June but said it had found investors to secure its future.However, it suspended all flights earlier today, and trading in its shares was suspended on the Vienna stock market.
SkyEurope flew mainly in eastern Europe but operated five routes from Luton, including Vienna and Prague.
1 September 2009
Virgin Blue plunges to A$160 million full-year loss
News reports state that Virgin Blue Holdings blamed the tough operating environment, one-off charges and nonrecurring costs for a A$160 million ($133.2 million) loss in the fiscal year ended June 30, the company's worst-ever result and a reversal from the A$97.7 million surplus reported the prior year.
28 August 2009
Aer Lingus losses widen
News reports state that Losses at Aer Lingus deepened in the first half of the year as fares fell.The operating loss of almost 93 million euros compared to 23.4 million euros lost in the first six months of 2008. Revenue in the half year to the end of June dropped by 12.2% to 555 million euros. A 17% drop in average fares coupled with increased fuel prices contributed to the fall in revenue.
The outlook for the rest of the year 2010 was described as being “extremely challenging” with expectation that recovery in the Irish economy will take until 2011 at the earliest.
28 August 2009
* East Star Airlines goes into bankruptcy
News reports state thate East Star Airlines, a debt-laden privately-owned Chinese airline, officially went bankrupt on Thursday after a long and desperate fight to stay aloft. It was the first of China's airlines to do so.
The Intermediate People's Court in East Star's hometown of Wuhan said a plan submitted by the East Star Group and ChinaEquity was unfeasible and failed to meet the conditions for a legal restructuring, the Xinhua news agency said on Thursday.
27 August 2009
CSA Czech announces cuts, $99.6 million half-year loss
News reports state that CSA Czech Airlines suffered a $99.6 million loss in the first half of 2009 under international accounting standards and confirmed yesterday that it will reduce both its fleet and its workforce as it seeks to return to profit next year.
25 August 2009
Turkish suffers second-quarter loss
News reports state that Turkish Airlines reported a net profit of €48 million ($68.7 million) through the first six months of 2009, down 64% year-over-year, implying a second-quarter loss of approximately €25.6 million.
24 August 2009
CSA posts large losses for first half of 2009
News reports state that Czech state-run airline Èeské aerolinie (ÈSA) posted a loss of Kc1.83bn in the first half of 2009, server iDnes.cz has said, referring to material which the company will make public at a press conference on Wednesday.
The loss is more than CZK 0.5bn higher than the plan of ÈSA's management, the server said.
For the full year, ÈSA expects a loss of around CZK 2bn. Sales dropped by CZK 1.5bn year-on-year to CZK 9.5bn in the first half.
20 August 2009
El Al second-quarter loss widens on plunging revenues
News reports state that El Al Israel Airlines reported a net loss of $19.7 million for the second quarter, widened from a deficit of $12.8 million in the year-ago period, as revenues plunged 28.4% to $399.4 million paced by a 54% decline in cargo revenues. During the second quarter, the company continued to confront the results of the world financial crisis.
18 August 2009
LOT suffers $60.9 million loss first 6 months of 2009
News reports state that LOT Polish Airlines suffered a PLN178 million ($60.9 million) loss in the first six months of 2009, which included the closure of its low-cost subsidiary Centralwings, and will bring in a financial adviser to help sell new shares, Reuters reported. "Options include selling a stake to another carrier, a financial investor or even floating the airline on a stock exchange," CEO Sebastian Mikosz was quoted as saying. "We're in talks with an investment bank which will advise us on the capital hike," targeted for next year.
12 August 2009
Scandinavian airline SAS to cut 1,500 jobs
News reports state that Scandinavian airline SAS will launch an entirely new cost program and lay off 1,500 employees in a move to curb swelling losses.
SAS Group, half-owned by Sweden, Norway and Denmark, said it will cut more jobs, reduce salaries and slash other expenses after reporting its seventh uninterrupted quarterly net loss.
10 August 2009
JAL sinks to $1 billion quarterly loss, announces 'drastic adjustments'
News reports state that Japan Airlines reported a steep ¥99 billion ($1.04 billion) net loss for its fiscal first quarter ended June 30, dramatically widened from a ¥3.4 billion loss in the year-ago period, and announced "drastic adjustments" to its international flight network.
10 August 2009
Finnair CEO announces resignation after fourth straight quarterly loss
News reports state that Finnair President and CEO Jukka Hienonen announced his resignation Friday after the airline posted its fourth consecutive quarterly net loss, a €26.1 million ($37.5 million) second-quarter deficit that reversed net income of €13.4 million in the year-ago period. "I am not satisfied with the results achieved. The rate of change has been insufficient," Hienonen said
6 August 2009
TAP narrows first-half loss
News reports state that TAP Portugal parent TAP Group reported a €72.4 million ($104.3 million) net loss in the first half, a 53.2% improvement on the €154.9 million lost in the year-ago semester.
Operating revenue decreased 11.8% year-over-year to €927 million and costs fell 19.9% to €855.2 million, including a 49.7% reduction of its fuel bill to €157.6 million.
4 August 2009
Ailing Austrian Airlines reports 1H, Q2 losses amid 'extremely weak demand'
News reports state that Austrian Airlines, the ailing carrier due to be taken over by Germany's Lufthansa, reported losses for the second quarter and first half of the year, blaming the slump in demand affecting the global aviation industry.
The airline experienced a loss of euro78.5 million ($113 million) in the April-June period, compared with a profit of euro11.7 million ($16.8 million) a year earlier. "We are suffering from extremely weak demand, similar to the situation affecting the entire airline industry," Peter Malanik and Andreas Bierwirth, members of Austrian's executive board, said in a statement. "The crisis has relentlessly revealed our weaknesses."
31 July 2009
Kingfisher Airlines first quarter loss
News reports state that Kingfisher Airlines reported a INR2.43 billion ($50 million) loss in its fiscal first quarter ended June 30, widened from a INR1.58 billion deficit in the year-ago period, according to Dow Jones. Revenue dropped 6% year-over-year to INR13.14 billion and the board reportedly approved a INR5 billion equity raising through a rights issue, follow-on offer or placement of deposit receipts. EBITDA was positive at INR2.54 billion compared to a INR3.24 billion loss in the quarter ended June 30, 2008. The airline suffered a INR16.09 billion loss in the fiscal year ended March 31.
31 July 2009
Air France KLM falls to €431 million first-quarter loss
News reports state that citing sharp declines in volume and unit revenue for both passenger and cargo transport, Air France KLM yesterday announced a €431 million consolidated net loss in its fiscal first quarter ended June 30, a marked deterioration from the €132 million profit earned in the year-ago period.
Results were reported on a pro forma basis and include the addition of Martinair, which AF KLM now wholly owns, but exclude its 25% stake in Alitalia. Total group revenue fell 20.5% to €5.17 billion, comprising an 18.7% drop in passenger revenue and a 41.5% plunge in cargo. Operating costs declined 10.1% to €5.66 billion.
Operating result was affected by a negative fuel hedging impact of €252 million and swung from a €201 million profit in the year-ago quarter to a €496 million loss. The passenger business suffered a €141 million operating loss excluding the hedging impact while cargo lost €253 million.
31 July 2009
Singapore Airlines suffers first loss in six years
News reports state that the global economic downturn, swine flu and unfavorable fuel hedges were enough to drag Singapore Airlines to its first quarterly deficit since 2003, a S$307.1 million ($212.6 million) loss that compared to a S$358.6 million profit in the fiscal first quarter of 2008-09.
Group revenue during the quarter ended June 30 dropped 30.5% to S$2.87 billion while expenses were reduced 15.8% to S$3.19 billion. A S$287 million loss on fuel hedges partially offset the S$1.14 billion it saved on fuel prices compared to last year. Operating loss of S$319.3 million represented a reversal from the S$343.2 million earned in the year-ago quarter.
28 July 2009
Jet Airways loss
News reports state that Jet Airways suffered a INR2.25 billion ($46.1 million) loss in its first fiscal quarter ended June 30, a reversal from the year-ago period's INR1.43 billion profit, but said that "operationally the performance has stabilized" and that efforts to reduce capacity and costs "have started to show results."
Revenue fell 16.2% to INR24.28 billion as passenger numbers declined 18% to 2.6 million, but it was a one-time charge of INR9.16 billion related to a change in the company's depreciation policy that produced the final result. Jet flew 4.91 billion system RPKs during the quarter, down 10.7%, against an 18% cut in capacity to 6.69 billion ASKs. Load factor rose 6 points to 73.4%.
24 July 2009
Air France KLM reports 20.5% fall in first-quarter revenue
News reports state that Air France KLM Group said revenue in the fiscal first quarter ended June 30 plunged 20.5% year-over-year to €5.19 billion ($7.37 billion), reflecting continuation of the January-March trend and "in line with our expectations."
23 July 2009
Delta posts $257 million loss, promises 'top-to-bottom' review
News reports state that Delta Air Lines posted a second-quarter net loss of $257 million, narrowed from a $1.04 billion deficit in the year-ago period, with results for both quarters heavily affected by special charges.
22 July 2009
Continental reports $213 million loss, announces 1,700 job cuts
News reports state that Continental Airlines reported a second-quarter net loss of $213 million, widened from a $5 million deficit in the year-ago quarter, and announced it will cut 1,700 additional jobs "across the company" to mitigate the impact of "significant declines in high-yield traffic."
17 July 2009
Air India May Get State Bailout on Salary Delay, Cash Crunch
News reports state that Air India, the state-run carrier that has $1.5 billion in accumulated losses, is set to get its first government bailout after a slump in air travel left it unable to pay salaries and buy planes.
16 July 2009
American posts $390 million second-quarter loss as revenue falls 20.9%
News reports state that American Airlines parent AMR Corp. said a "very difficult revenue environment" drove a second-quarter net loss of $390 million, narrowed 73.3% from a $1.45 billion deficit in the year-ago period when heavy noncash impairment charges dragged down the bottom line. But the loss actually was widened from a $298 million deficit last year
7 July 2009
Mexico grounds airline Aviacsa for unpaid debt
News reports state that Mexico has grounded carrier Aviacsa for the third time in a month, saying the airline owes the government 292 million pesos ($22 million) for the use of Mexican airspace. The Transportation and Communications Department says in a statement that the suspension will end when the airline pays up.
6 July 2009
Russian airline KrasAir declared bankrupt
News reports state that An East Siberian court of arbitration upheld on Monday an aircraft leasing company's bankruptcy petition against KrasAir, one of Russia's largest airlines. KrasAir, part of the crisis-hit AirUnion alliance, ceased operations last October over a liquidity crisis
30 June 2009
Airlines lost $3 billion in first quarter
News reporst state that the world's airlines lost more than $3 billion in the first quarter of 2009, the International Air Transport Association (IATA) said on Tuesday, maintaining its estimate for full-year losses of $9 billion.
In its latest snapshot on the industry, the Geneva-based lobby said weak travel demand and lower freight volumes in the global recession had bled revenues for major carriers, in "a significant deterioration from last year."
"This deterioration was before the recent rise in fuel prices," IATA said, warning the 30 percent increase in oil and jet fuel prices since early May would squeeze airline cash flows further in coming months.
Both oil and jet fuel prices have risen almost $20 a barrel in the past two months, and are now 75 percent higher than their low point at the end of 2008, the Financial Monitor report said.
"Airlines have not yet felt the full impact of this oil price rise," it said.
But it said it was not changing its previous 2009 loss forecast of $9 billion, which follows revised 2008 losses of $10.4 billion.
On Tuesday, U.S. crude traded around $72 per barrel.
IATA, which represents more than 200 airlines, also said carriers trying to fly fewer flights to save costs during the downturn have not managed to cut capacity in line with shrinking air transport demand.
26 June 2009
Fitch downgrades DL, warns of possible UA, AA, US bankruptcy filings
News reports state that Delta Air Lines' credit facility rating was downgraded yesterday by Fitch Ratings, citing "the continued erosion of the airline's near-term cash flow generation" and the expectation that it will "report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand."
Its credit rating was lowered to B- from B. In comparison, American Airlines, US Airways and United Airlines all have ratings of CCC. "Any of those carriers" could be forced to file for bankruptcy protection "as early as the winter if operating trends fail to stabilize," Fitch warned.
23 June 2009
Lufthansa's financial outlook deteriorates
News reports state that Lufthansa's forecast of a "distinctly positive" full-year operating profit is in jeopardy, it said Friday, and it now is focused on "avert[ing] an operating loss in the current financial year."
Chairman and CEO Wolfgang Mayrhuber confirmed two weeks ago that the company expected a 10% drop in passengers and a 20% fall in revenue this year. It reported a €256 million first-quarter net loss and a €44 million deficit on the operating level.
22 June 2009
JAL looks set for $1 billion government loan
News reports state that the Japanese government is preparing to extend a loan of approximately ¥100 billion ($1.04 billion) to Japan Airlines, Finance Minister Kaoru Yosano said.
Speaking to reporters yesterday, Yosano said he received a request from Transport Minister Kazuyoshi Kaneko for the loan through the Development Bank of Japan. "We hope to cooperate through DBJ loans" but the aid only will be granted "on the premise that [JAL] must do its best to improve management," he said.
According to the Nikkei, the government is considering guaranteeing some 80% of the loan and three private sector banks are participating.
Last week JAL unveiled a series international schedule cuts as it attempts to halt the bleeding that resulted in a ¥63.1 billion loss in the fiscal year ended March 31
22 June 2009
Slovakia's SkyEurope gets creditor protection
News reports state that struggling Slovak low-cost airline SkyEurope said that it had gone into bankruptcy protection in order to reorganise its affairs in an orderly fashion.
Listed on the Vienna stockmarket, the Slovak carrier said a Bratislava court had offered it protection from creditors while management implemented the restructuring of its business to make it more attractive to potential investors.
17 June 2009
Malaysia Airlines suffers $196.8 million first-quarter loss
News reports state that A "collapse in demand" contributed to a MYR694.8 million ($196.8 million) first-quarter loss for Malaysia Airlines compared to a MYR120.5 million profit in the first three months of 2008.
16 June 2009
Virgin America posts $40.3 million first-quarter loss
News reports state that Virgin America reported a first-quarter net loss of $40.3 million, narrowed from a net deficit of $52 million in the year-ago period, and the nearly two-year-old carrier said it is poised to continue growing steadily.
16 June 2009
Airline stocks falter; Delta, US Airways lead decliners
News reports state that Major U.S. airline stocks fell Monday, led by declines from Delta Air Lines and US Airways.
Airline shares have come under selling pressure over the past week as crude-oil prices rose above $72 a barrel.
11 June 2009
Fitch warns United's structure 'unsustainable' in current economy
News reports state that United Airlines' credit facility rating was downgraded yesterday by Fitch Ratings, which warned that the carrier is facing "full-year passenger RASM declines of more than 10%" and "could report substantially negative free cash flow for the final three quarters of 2009."
The rating agency cautioned that "United's highly leveraged capital structure [is] unsustainable in the absence of a sharp turnaround in industry operating fundamentals." It also questioned UA's ability to finance the large long-haul aircraft order for which it recently issued an RFP
8 June 2009
Aer Lingus facing 'most difficult period' in its history
News reports state that Aer Lingus is "facing the most difficult period in its 73-year history," Chairman Colm Barrington told shareholders at the company's annual general meeting in Dublin Friday, conceding that yields in all its markets continued to decline in April and May.
8 June 2009
Kenya Airways posts unexpected fiscal year loss on hedging charges
News reports state that Kenya Airways posted a KES4 billion ($49.2 million) loss for its fiscal year ended March 31, reversed from a KES3.87 billion profit in the prior year and the first annual deficit it has endured since its privatization in 1996.
It said the loss was driven by fuel hedging losses and depreciation of the Kenyan shilling versus the US dollar.
7 June 2009
IATA says global airlines to lose $9 bln in 2009
News reports statet that the global airline industry is facing an unprecedented crisis and is likely to lose $9 billion this year, nearly double an estimate made just three months ago, the International Air Transport Association said on Monday.
"This is the most difficult situation the industry has faced," Giovanni Bisignani, IATA's director general and CEO, told the aviation body's annual meeting in the Malaysian capital.
"Our industry has been shaken."
IATA had predicted in March that 2009 losses for the airline industry would total $4.7 billion. It has also revised its estimate of 2008 losses to $10.4 billion from $8.5 billion.
Bisignani said the aviation industry's 2009 revenues would fall by $80 billion to $448 billion because of the global economic crisis.
4 June 2009
Asiana suffers heavy full-year, first-quarter losses
News reports state that Asiana Airlines suffered a KRW227.17 billion ($183.5 million) loss in 2008, reversed from a KRW106.26 billion profit the prior year as the value of the won collapsed against the dollar and the Korean economy faltered, and followed that with an even deeper first-quarter loss.
The 2008 loss occurred despite a 16.6% increase in revenue to KRW4.22 trillion. Expenses soared 26.3% to KRW3.7 trillion and Asiana's operating result swung to a KRW52.68 billion loss from a KRW171.61 billion profit in 2007.
28 May 2009
Air Berlin focuses on Europe as first-quarter loss widens
News reports state that Air Berlin lost €88.4 million ($123.4 million) in the first quarter, widened 48.3% from its €59.6 million deficit in the year-ago period, although revenue and yield rose and its impending partnership with TUIfly appears to be on the verge of being finalized.
27 May 2009
Jet's full-year loss deepens
News reports state that Jet Airways finished its fiscal year ended March 31 INR4.02 billion ($84.7 million) in the red compared to a INR2.53 million loss in 2007-08 and said a return to breakeven and profitability "requires exceptional efforts" considering the "sluggish demand" forecast for the coming year.
22 May 2009
Travel plans in disarray as OzJet grounded
News reports state that Passengers at Perth Airport are furious after their travel plans were thrown into disarray today. The effective grounding of OzJet’s operations in Perth over unpaid airport charges has affected thousands of Bali holiday makers. The grounding of the airline, which operates to Derby and twice weekly Bali charters for IndoJet, is due to unpaid airport charges. Perth Airport chief executive Brad Geatches told thewest.com.au that it would not process its passengers because the airport was owed more than $200,000 in back payments.
20 May 2009
Air France KLM suffers first full-year loss
News reports state that despite what it called its responsiveness to unprecedented conditions in the second half of its fiscal year ended March 31, Air France KLM Group incurred its first loss since the 2003 merger, an €814 million ($1.1 billion) deficit that compares to a €756 million profit in 2007-08. Its operating loss amounted to €129 million, reversed from a €1.41 billion operating profit the prior year.
18 May 2009
Air Fiji's shareholders want answers
News reports state that Fiji's domestic aviation operator Air Fiji has ceased operation. And shareholders particularly small shareholders, totalling a little over 40, are demanding that a meeting be held so that management can explain how it has allowed itself to be in such a state. Speaking on the grounds of anonymity, one shareholder alleged that for one and a half years the company has failed to send them financial statements.
15 May 2009
No end in sight for Air Fiji saga
News reports state that the government and the representatives of the Tuvalu government are yet to meet to discuss the future of Air Fiji Limited which has closed all its offices in the country. The Tuvalu government which has 51% shares in Air Fiji has not given any reason for the closure of Air Fiji and has said that its representatives will meet with the Fiji government to discuss the matter.
14 May 2009
China Eastern likely to get another CNY2 billion from Beijing
News reports state that China Eastern Airlines is expected to receive a further CNY2 billion ($294 million) capital injection from the Chinese government to help the struggling carrier survive.
13 May 2009
JAL Group posts big loss in 2009 fiscal year, expects same in 2010
News reports state Japan Airlines blamed the economic downturn for a net loss of ¥63.1 billion ($651.2 million) for the fiscal year ended March 31, an ¥80 billion reversal from a net profit of ¥16.9 billion in the prior year.
12 May 2009
Higher Fuel Costs, Falling Demand Push Iberia Deeper Into the Red
News reports state that MADRID -- Iberia Lineas Aereas de Espana SA said Tuesday its net loss widened in the first quarter, hit by high fuel costs and waning demand for air travel as a recession takes hold in Spain.
The country's largest airline by sales reported a net loss of €92.6 million ($125.8 million), compared with a €400,000 net loss a year earlier. Revenue fell 16% to €1.1 billion.
11 May 2009
Air Canada posts C$400 million loss
News reports state that Air Canada reported a first-quarter net loss of C$400 million ($342 million), widened 38.9% from a C$288 million loss in the year ago period, and new President and CEO Calin Rovinescu said the carrier is urgently seeking relief from its pension funding obligations.
8 May 2009
Korean Air reports $413 million first-quarter loss
News reports state that Korean Air posted a first-quarter net loss of KRW526 billion ($413 million), widened 61% from a net loss of KRW326 billion in the year-ago period, marking its sixth consecutive quarter in the red.
7 May 2009
Rough first quarter leads to 68% profit drop at SkyWest
News report state that Foul weather and maintenance problems contributed to a 68% decline in SkyWest Inc.'s first-quarter profit to $9.4 million from $29.1 million in the year-ago period.
Revenue fell 22.5% to $672.6 million. The company and its SkyWest Airlines and Atlantic Southeast Airlines affiliates provide regional flying for United Airlines, Delta Air Lines and Midwest Airlines with a fleet of 440 aircraft.
6 May 2009
Easyjet losses double
News reports state that Easyjet said it remains confident of a full-year profit despite its half-yearly losses more than doubling. The airline reported a pre-tax loss of £129.8m for the six months to March 31, compared with a £48.4 million loss the year before. Easyjet blamed the increased losses on higher fuel costs and the fact that Easter fell later this year.
6 May 2009
Austrian continues to bleed as it waits for Lufthansa rescue
News reports state that a first quarter that was "difficult in the extreme" ended for Austrian Airlines Group with an €88.1 million ($117.3 million) loss, widened 45.9% from the €60.4 million deficit reported in the year-ago period.
5 May 2009
Royal Jordanian first-quarter loss nearly doubles
News reports state that Royal Jordanian reported a JOD8.5 million ($11.9 million) first-quarter loss, nearly double the JOD4.4 million deficit reported in the year-ago period. Revenue fell 11% year-over-year to JOD124 million. Yield was down 5% and passenger boardings slipped 11.2% to 491,000. Load factor dropped 6 points to 62%. RJ said it expects to "compensate" for the first-quarter result with "growth in bookings on all sectors" during the second and third quarters
30 April 2009
Lufthansa sees heavy first-quarter loss
News reports state that Lufthansa was not immune to the global economic downturn, reporting a first-quarter net loss of €256 million ($333.8 million) that represented a reversal from the €44 million profit reported in the first three months of 2008.
It cited "weak demand" as the principal reason for the result, which also included a €44 million operating loss that compared to a €172 million operating profit in the year-ago period. Revenue fell 10.7% to €5 billion.
29 April 2009
SAS narrows first-quarter loss to $91.4 million
News reports state that SAS Group narrowed its first-quarter loss by nearly 36% to SEK748 million ($91.4 million) from the SEK1.16 billion reported in the year-ago period, although it said that "uncertainty with regard to when recovery will begin is considerable".
29 April 2009
Finnair posts $24.5 million first-quarter loss
News reports state that Finnair reported a first-quarter loss of €18.6 million ($24.5 million), reversed from a €3.1 million profit in the year-ago period, as "the potential for profitability has run into the sand due to feeble demand and a collapse in price levels," President and CEO Jukka Hienonen said.
29 April 2009
JAL nearly doubles full-year loss projection to $651 million
News reports state that Japan Airlines now expects to report a ¥63 billion ($651.3 million) loss in its fiscal year ended March 31, nearly double the ¥34 billion it forecast in February, owing to a "relentless" decline in global demand.
28 April 2009
Aer Lingus sees bigger-than-expected 2009 loss
News reports state that Irish airline Aer Lingus believes the average fare trend for 2009 will be worse than previously expected and now expects a loss materially below the bottom of the range of current market expectations.
27 April 2009
LOT on the edge of bankruptcy
News reports state that Poland’s national carrier, LOT airlines, experienced a 700 million zlotys (155 million euros) loss in 2008. If the carrier does not find investors soon then it could go into bankrupt within weeks. Over 300 million zlotys of the loss resulted from contracts for fuel, made when the price was high last year.
The financial situation is so bad at LOT that an auditor is refusing to sign the annual balance sheet.
24 April 2009
US Airways posts $103 million first-quarter loss
News reports state that US Airways reported a first-quarter net loss of $103 million, narrowed from a net deficit of $237 million in the year-ago period.
23 April 2009
Continental Airlines $136 million first quarter loss
News reports state that Drops in both business travel and economy class yields dragged Continental Airlines to a $136 million first-quarter loss, widened 65.9% from an $82 million deficit in the year-ago period.
22 April 2009
United $382 million first quarter net loss
News reports state that United Airlines parent UAL Corp. reported a first-quarter net loss of $382 million, narrowed from a deficit of $549 million in the year-ago period, but conceded that its net loss for the three months ended March 31 would have been $579 million absent noncash mark-to-market fuel hedge gains and accounting changes.
22 April 2009
Delta posts $794 million first-quarter loss
News reports state that Delta Air Lines yesterday announced the imposition of a $50 fee for a second checked bag on international flights and the grounding of its 14 747-200 freighters, as well as 36 additional aircraft by year end, in response to a $794 million first-quarter loss, narrowed from a $6.39 billion deficit in the year-ago period when heavy goodwill impairment charges dragged on the bottom line.
DL said the 2009 deficit mostly was attributable to $684 million "in realized fuel hedge losses" as the carrier still had 77% of its fuel consumption hedged in the first quarter at well above current prices. "We essentially broke even for the quarter excluding fuel hedges and special items," CEO Richard Anderson said. The company has 75% of its fuel consumption hedged in the current quarter but will wind down to 36% in the fourth quarter.
20 April 2009
Cathy Pacific $1.1 Billion 2008 loss
News reports state that On the heels of a HK$8.56 billion ($1.1 billion) 2008 loss that represented its first full-year deficit in a decade, Cathay Pacific Airways said Friday that it will confront a "toxic combination" of challenges with measures including an 8% capacity cut beginning next month and unpaid leave for employees.
"We anticipate an extremely challenging year in 2009 and a toxic combination of low fares, a big drop in premium travel, weak cargo loads, poor yields and a negative currency impact is making it more important than ever to preserve cash," CEO Tony Tyler said. "We have no option but to take measures that will help us weather the current storm and maintain the long-term sustainability of the business." He said a "marked deterioration" in first-quarter business included a 22.4% year-over-year decline in revenue.
17 April 2009
Royal Jordanian first loss in five years
News reports state that After four consecutive years in the black, Royal Jordanian suffered a JOD23.4 million ($32.8 million) net loss in 2008 as it absorbed JOD46.7 million in fuel hedge losses after reporting a JOD20.4 million profit in 2007.
17 April 2009
Air China loses $1.34 billion in 2008
News reports state that Air China joined its "big three" rivals in suffering a significant 2008 loss, reporting a CNY9.15 billion ($1.34 billion) deficit under Chinese accounting standards that marked a reversal from the CNY3.7 billion profit in the previous year.
17 April 2009
Southwest reports $91 million first-quarter loss
News reports state that Southwest Airlines' stretch of unprofitability continued with a first-quarter net loss of $91 million, reversed from a $34 million profit in the year-ago period and the LCC's third consecutive quarter in the red, leading it to initiate a "systemwide voluntary early-out program" as part of an effort to "align headcount to current capacity."
16 April 2009
China Eastern's 2008 loss exceeds $2 billion
News reports state that China Eastern Airlines reported a CNY13.93 billion ($2.04 billion) loss in 2008, according to domestic accounting standards, a reversal from a CNY604 million profit net profit reported in 2007.
Its loss under international accounting standards reached CNY15.26 billion. Operating revenue fell 4% year-over-year to CNY41.84 billion (domestic accounting standards) while expenses climbed 14% to CNY43.08 billion, an increase attributable mainly to a 22.3% jump in fuel costs to CNY18.49 billion.
16 April 2009
American reports $375 million first-quarter loss
News reports state that American Airlines parent AMR Corp. posted a first-quarter net loss of $375 million, 10.1% worse than the net deficit of $341 million in the year-ago period, citing "declining revenues, fares and traffic."
15 April 2009
Hebridean Island Cruises International Ltd
IMPORTANT MESSAGE for people who have paid for tickets with credit cards or Visa debit cards
As you may be aware, Hebridean International Cruises Ltd (HIC Ltd) went in to administration on 8 April 2009. At present we do not know whether any bookings made with HIC Ltd prior to the administration will be honoured by the company. In the circumstances, we will not be able to answer individual queries until we are updated by the administrators of HIC Ltd.
We appreciate that you will be concerned about your booking. If you have paid for your booking by either credit card or by Visa debit card, you may have a claim for a refund from your card issuer, and we suggest that you contact your card issuer for further information.
We will update this message when we have received information from the administrator.
15 April 2009
China Southern plunges to $704.1 million 2008 loss
News reports state that China Southern Airlines yesterday reported its first full-year loss in three years, a CNY4.82 billion ($704.1 million) deficit that represented a reversal from the CNY1.84 billion profit reported in 2008.
The airline had warned last month that its loss would be deeper than expected, and a 1.6% year-over-year rise in revenue to CNY54.40 billion was not nearly enough to offset high fuel prices, the spring Sichuan earthquake, slowing demand and impairment charges related to retired aircraft. In a filing cited by both Dow Jones and Bloomberg News, CZ reported a 1.8% lift in RPKs to 83.18 billion and a 2.3% increase in passenger numbers to 58.2 million.
9 April 2009
Brussels Airlines €12.2 million loss
News reporst state that Brussels Airlines reported a €12.2 million ($16.3 million) net loss for last year, a reversal from the €23.1 million profit earned in 2007, owing largely to mark-to-market fuel hedging losses.
The carrier said it is being impacted by the recession "just like all other airlines" and that it is taking necessary measures to reduce costs further, safeguard its market position and boost revenue. It expects revenue to drop €150 million this year and is seeking to trim costs by at least €40 million, according to press reports.
7 April 2009
China Airlines $968.9 million 2008 loss
News reports state that China Airlines announced a net loss of TWD32.35 billion ($968.9 million) for 2008, widened sharply from the $77.5 million deficit reported in 2007. Operating loss of TWD10.21 billion compared to $41.54 million the prior year. CI said fuel costs climbed 45% during the first three quarters of 2008 and falling demand offset declining fuel costs in the fourth. The company lost TWD21.05 billion on its fuel hedges.
3 April 2009
Cabo Verde Airlines "technical insolvency"
News reports state that Cabo Verde Airlines is in a situation of "technical insolvency," its board having asked the government to take measures to restructure the company.
The company’s situation has been set out in a letter from TACV director to its employees which explains the current financial situation and puts forward a series of proposals to avoid actual insolvency.
According to António Neves, the company has been accumulating “successive losses” over the years that has led to the situation of technical insolvency.
“The company has only survived because it has accumulated debts on top of debts. And also because the creditors have turned a blind eye and until now, not one has called for its closure – this spells insolvency,” says the letter, shown in the local press.
** Under the terms and conditions of IPP's policies cover is exlcuded with immediate effect for tickets and policies issued on or after 3rd April 2009
2 April 2009
TAM $577.4 Million loss for 2008
News reports state that TAM sank to a BRL1.34 billion ($577.4 million) loss in 2008, a reversal from the BRL468.6 million profit the Brazilian carrier earned in 2007, as its fuel hedges and the depreciation of the real eclipsed operational improvements.
31 March 2009
Air Berlin plunges to €75 million loss
News reports state that Air Berlin yesterday reported a €75 million ($99.6 million) loss for 2008, reversed from a €21 million surplus the prior year, but buttressed its long-term future with the sale of a 15.3% stake to Turkey's ESAS Holding and a share swap with TUI Travel's TUIfly.
ESAS, which operates Istanbul Sabiha Gokcen-based Pegasus Airlines, acquired the stake held formerly by Len Blavatnik. The shares were sold in January but the buyer was not revealed until Sunday. The deal is subject to approval by German competition authorities. The price was not disclosed.
30 March 2009
Air France KLM expects operating loss in current, coming fiscal years
News reports state that Air France KLM said last week that it likely will report a €200 million ($271.4 million) operating loss for its fiscal year ending March 31 and stated that its focus for the year beginning April 1 is "to limit our operating loss."
26 March 2009
El Al reports $39 million 2008 loss
News reports state that El Al posted a 2008 net loss of $38.8 million, reversed from a $44.8 million profit in 2007, citing fuel expenses.
The Israeli airline said high fuel prices in the first half of the year, followed by hedging charges in the second half when the price of oil dropped, led to a 45% year-over-year increase in fuel costs to $771.2 million.
26 March 2009
Shanghai Airlines posts $183 million 2008 loss
News reports state that Shanghai Airlines posts $183 million 2008 loss. Shanghai Airlines reported a 2008 net loss of CNY1.25 billion ($182.8 million), nearly tripling a net deficit of CNY435.12 million in 2007, on an 8.6% lift in revenue to CNY13.37 billion.
25 March 2009
Airline industry in ‘intensive care’
News reports state that Airline industry losses this year are expected to be nearly double the level forecast in December, as carriers are hit by steeply falling demand from premium passengers and by record falls in cargo traffic.
Giovanni Bisignani, director general of Iata, the airline industry trade association said on Tuesday: “The state of the airline industry today is grim. Demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago”.
Relief from lower fuel prices had been “overshadowed” by falling demand and plummeting revenues, he said. “The industry is in intensive care.”
Net losses are forecast to reach $4.7bn this year, up from the $2.5bn forecast in December, as global economic conditions rapidly deteriorate.
Iata also revised its estimate for airline industry net losses for last year from $5bn to $8.5bn, as carriers were hit by the sudden and sharp fall in demand from lucrative premium passengers, where most network carriers generate the bulk of their profits, and from cargo.
25 March 2009
Major Airline failures more likely due to banking crisis
News reports state that the world banking crisis is making the risk of a major airline failure more likely because carriers will not be able to access funding for a rescue if they fall into trouble.
"Airlines are now in a very weak situation - they have debt of $170 billion so we are in a much worse position - we don't have cash," says Giovanni Bisignani, director general of IATA.
24 March 2009
Gol's full-year loss exceeds $600 million
News reports state that Gol and Varig parent Gol Linhas Aereas Inteligentes swung to a BRL1.39 billion ($606.7 million) loss in 2008 from a BRL272.3 million profit the prior year.
Key culprits in the deficit were a 31.5% year-over-year increase in expenses and BRL757.5 million in foreign exchange losses. Revenue was up 29.7% to BRL6.41 billion and costs rose to BRL6.5 billion, producing an operating loss of BRL88.6 million that represented a reversal from the BRL2.4 million profit reported in 2007.
17 March 2009
** SkyAirWorld collapses
News reports state that collapsed Australian regional carrier SkyAirWorld looks unlikely to return to the skies without a major cash injection from an angle investor.
The airline ceased operations after its five leased Embraer jets were repossessed back on Friday, March 13. It reportedly owes $10 million in payments.
Liquidators have been appointed, PA Lucas & Co, and they are assessing the unlikely potential for the carrier to continue trading.
** Under the terms of IPP's policies, cover is excluded for policies or tickets boughts on or after 13th March 2009.
17 March 2009
** East Star suspends operations
News reports state that East Star suspends operations as CNAC sale falls through. East Star Airlines was forced to suspend operations Sunday by CAAC owing to its heavy debt burden and the collapse of a stake sale deal with Air China parent CNAC.
It is the second privately held Chinese carrier to suspend service in recent months. Okay Airways stopped flying in December but resumed operations the following month.
Wuhan-based East Star has been in financial crisis since last year.
** Under the terms of IPP's policies cover is excluded with immediate effect for policies or tickets bought from 15th March 2009
16 March 2009
Authorities ground East Star Airlines
News reports state that authorities ordered a private Chinese airline to suspend its operations yesterday because of debts owed to General Electric Co’s aviation subsidiary, amid a travel slump caused by global economic turmoil.
East Star Airlines, based in the central Chinese city of Wuhan, was told to halt flights as of yesterday, the city government said in a statement.
16 March 2009
Aer Lingus reports €107.8 million 2008 loss
News reports state that Aer Lingus posted a 2008 net loss of €107.8 million ($136.7 million), a sharp reversal from the €105.3 million earned the previous year, citing "exceptionally challenging trading conditions for the aviation industry as a whole."
CEO Dermot Mannion said, "Falling consumer demand in key markets, a weakening dollar and sterling, and increased competition across the network combined to put sustained and significant pressure on our business throughout the year."
15 March 2009
Cathay posts $1.1 billion 2008 loss, first annual deficit since 1998
News reports state that Cathay Pacific Airways reported its first full-year net loss in a decade, posting a 2008 deficit of HK$8.56 billion ($1.1 billion), reversed from net income of HK$7.02 billion in 2007.
CX said the loss was attributable to shrinking passenger and cargo demand combined with a HK$7.97 billion noncash loss on fuel hedging that was reversed from a hedging gain of HK$933 million in 2007. It noted the "collapse" of the front end of passenger cabins and a "very weak" cargo market.
13 March 2009
BMI near £100 million 2008 loss
News reports state that Bmi lost nearly £100 million in 2008, plans cost cuts. Bmi Group yesterday confirmed a £99.7 million ($137.2 million) loss in 2008, reversed from a £7 million profit the prior year, and said it plans to reduce costs by an additional £45 million this year and is negotiating a pay freeze with employees.
3 March 2009
Thai Airways $592 million full-year loss
News reports state that Thai Airways reported a THB21.38 billion ($592.1 million) loss in 2008 compared to a THB4.43 billion profit in 2007 as the economic downturn and the protest-induced closure of Bangkok Suvarnabhumi in the fourth quarter proved too much to overcome.
Thai suffered a THB14.8 billion fourth-quarter loss that represented a reversal from a THB1.84 billion profit in the final three months of 2007
3 March 2009
AirAsia suffers $128 million 2008 loss
News reports state that AirAsia reported a 2008 net loss of MYR471.7 million ($128.3 million), reversed from a MYR697.6 million profit in 2007, but insisted its 2009 outlook is strong because its low-fare model is attracting new traffic and it has "unwound" fuel hedges that weighed down second-half earnings.
25 February 2009
Icelandair huge loss
News reports state that a huge fourth-quarter loss related to the collapse of Iceland's banking and financial sector last fall dragged Icelandair Group to a ISK7.47 billion ($65.9 million) full-year deficit, reversed from a ISL257 million profit in 2007.
24 February 2009
Air China loss
News reports state that Air China is blaming its fuel hedges for its 2008 loss and plans to shift more attention to boosting ancillary revenue to help engineer a turnaround this year.
The carrier reported a CNY6.8 billion ($993.2 million) noncash loss resulting from a Dec. 31 writedown in the value of its fuel hedges. It recorded cash losses of $5.9 million and $52.8 million on its fuel hedge contract in November and December respectively.
24 February 2009
Norwegian to $1.1 million full-year loss
News reports state that a nearly 50% year-over-year increase in revenue was not enough to save Norwegian from the damaging fluctuation in fuel prices last year as the LCC slid to a NOK7.6 million ($1.1 million) full-year loss from an NOK84.6 million profit in 2007.
Operating revenue soared 47.3% to NOK6.23 billion, driven in part by a 69.1% surge in ancillary revenue per passenger. But costs were up 61.9% to NOK6.03 billion as fuel expense more than doubled. Personnel costs jumped 73.5% and airport charges were up nearly 40% year-over-year. Full-year EBIT swung to a NOK337.9 million loss from an NOK84.6 million profit in 2007. It lost NOK104 million on its fuel hedges.
19 February 2009
ExpressJet's busy year ends with $88.2 million loss
News reports state that a year that featured the failure of ExpressJet Holdings' branded flying experiment ended with an $88.2 million net loss, widened 25.5% from the $70.2 million deficit reported in 2007.
Full-year revenue fell 21.8% year-over-year to $1.32 billion while costs were down 20% to $1.43 billion. Operating loss of $116.5 million increased 9% from the $106.9 million reported in 2007. Fourth-quarter loss of $30.2 million compared to a $31.7 million loss in the year-ago period. Three-month operating loss narrowed 72.9% to $8.7 million from $41.8 million.
16 February 2009
Air Canada's 2008 loss tops C$1 billion
News reporst state that Air Canada reported a 2008 net loss of C$1.03 billion ($827.6 million), reversed from a profit of C$429 million in 2007, citing "unprecedented volatility on fuel prices, significant fluctuations in foreign exchange and a worsening global economy."
The Canadian dollar, which provided AC a boost when it was on par with the US dollar in 2007 and early 2008, dropped rapidly in the fourth quarter, driving a net loss on foreign exchange of C$655 million last year. AC posted a C$317 million net gain on foreign exchange in 2007. "Foreign exchange turned against us," President and CEO Montie Brewer told analysts Friday.
13 February 2009
Air FranceKLM posts Q3 net loss of euro505 million
News reports state that Air France-KLM posts Q3 net loss of euro505 million. Air France-KLM says it posted a loss in the three months to December as the economic crisis deepened, hurting business class travel and cargo traffic and depressing fares.
Europe's largest airline reported Friday a net loss of euro505 million ($648 million) in its fiscal third quarter, compared with a profit of euro139 million a year earlier. It posted an operating loss of euro194 million, confirming a January warning.
9 February 2009
JAL posts $428 million third-quarter loss
News reports state that Japan Airlines parent JAL Group reported a net loss of ¥38.5 billion ($428 million) for its fiscal third quarter ended Dec. 31, reversed from a ¥13.1 billion net profit in the year-ago period, citing a "downward slide" in demand and "volatile" fuel prices.
6 February 2009
Shanghai Airlines suspends share trading
News reports state that Shanghai Airlines suspended trading in its shares yesterday as it anticipated a capital injection from the government. SAL noted in a statement that it is discussing with stakeholders an effort to reduce its debt ratio, which Board Secretary Xu Junming confirmed will occur through a capital injection. Its debt ratio was 91.4% on Sept. 31, 2008. Chairman Zhou Chi previously revealed that the airline requested approximately CNY3 billion ($438.5 million) from the Shanghai municipal government, SAL's controlling shareholder at 35.7%.
Chinese carriers expect to post a collective 2008 loss owing to the difficult operating environment. The government already has injected CNY7 billion and CNY3 billion into China Eastern Airlines and China Southern Airlines respectively. Industry analysts believe that the aid granted to SAL also is designed to smooth its merger with CEA. SAL warned last month that its 2008 loss may double the CNY435 million reported in 2007.
6 February 2009
Finnair falls to full-year loss, plots survival
News reports state that Finnair falls to full-year loss, plots survival. Claiming that its "situation as this relegation battle begins is stronger than many others," Finnair yesterday reported a €42 million ($54.4 million) loss for 2008 that compared to a €101.6 million profit in 2007.
"Not all airlines will survive. The industry will experience an unprecedented thinning out," President and CEO Jukka Hienonen said. But he claimed that Finnair's "balance sheet and cash position are strong and its strategy is working." He warned that it is "absolutely necessary to cut our cost structure permanently to a competitive level" and that the carrier is "seeking increasing flexibility in our expense structure" to handle fluctuating demand.
4 February 2009
Korean Air posts $1.4 billion full-year loss
News reports state that Korean Air reported a full-year 2008 net loss of KRW1.96 trillion ($1.4 billion), reversed from a net profit of KRW11.1 billion in 2007, citing the weak won as the biggest contributor to the heavy deficit.
3 February 2009
SAS Huge losses
News reports state that a stunning SEK6.32 billion ($754.7 million) full-year loss, reversed from a SEK636 million profit in 2007, prompted yesterday's unveiling of a new restructuring initiative dubbed Core SAS that will include a SEK6 billion rights issue and approximately 3,000 layoffs.
SAS Group President and CEO Mats Jansson said Core will "lead to SAS becoming a more focused and less complex company" concentrating on the Nordic market, business travelers, "efficient" organization, reduced costs and a "strengthened capital structure." The rights issue will comprise ordinary shares with a subscription period for shareholders tentatively scheduled for March 23-April 6.
3 February 2009
Kingfisher Airlines loss
News reporst state that Kingfisher Airlines, the airline company owned by Vijay Mallya-promoted UB Group, has reported a net loss of Rs 413 crore for the third quarter for the current financial year as against a net loss of Rs 427 crore for the corresponding period last year.
3 February 2009
Virgin America reports $175.4 million deficit - first nine months of 2008
News reports state that having lost a bid to receive confidential treatment for financial and traffic information that it is required to file with the US Dept. of Transportation as a certificated carrier, Virgin America yesterday said it suffered a $175.4 million loss in the first three quarters of 2008.
3 February 2009
ANA projects full-year deficit following ¥12.6 billion third-quarter loss
News reports state that a A ¥12.6 billion ($140 million) loss in its third fiscal quarter ended Dec. 31, reversed from a ¥12.4 billion profit in the year-ago period, combined with "the likelihood of the situation worsening in the foreseeable future," led ANA to predict its first full-year deficit since 2002-03.
30 January 2009
** Australia's MacAir leaves passengers stranded
News reports state MacAir's sudden move into receivership has meant thousands of its passengers are now left stranded.
All of today's flights were suspended, says an official at MacAir who wishes to remain anonymous.
She says the airline is offering passengers a full refund on tickets.
The official was unable to say when flights will resume because the carrier is now in administration and receivership.
MacAir late yesterday appointed Jonathan McLeod as administrator. He is principal of Brisbane-based corporate restructuring and insolvency firm McLeod & Partners.
One of the airline's largest creditors, Australian banking giant Suncorp-Metway, also earlier today appointed Justin Walsh as receiver and manager. He is from the Brisbane office of accounting firm Ernst & Young.
The state's transport minister John Mickel says in a statement today that it was the receiver that grounded the airline's entire fleet.
He says: "The director-general of Queensland Transport met today with the receivers ...and the receiver advised that it would seek to have flights resume as soon as possible".
** Under the terms of IPP's insurance policies cover is excluded for policies or tickets bought from today
30 January 2009
JetBlue Airways $76 million loss
News reports stahte that JetBlue Airways yesterday reported partial full-year and fourth-quarter results, including a $76 million pre-tax loss that represented a reversal from a $41 million pre-tax profit in 2007. It said it refrained from reporting net results because it is evaluating the tax deductibility of a $53 million noncash charge taken in the fourth quarter related to the valuation of its auction rate securities.
30 January 2009
Alaska Air suffers $135.9 million loss on hedges
News reports state that fuel hedge losses, restructuring charges and special items sank Alaska Airlines and Horizon Air parent Alaska Air Group to a $135.9 million net loss in 2008, reversed from a $124.3 million profit in 2007.
In the fourth quarter alone the company recorded an $80.2 million mark-to-market fuel hedge loss, $50 million in realized losses related to the early termination of fuel hedge contracts, restructuring charges of $9.2 million and $6.7 million in costs related to the disposal of Horizon's CRJ700s. It suffered a $75.2 million loss in the quarter compared to a $7.4 million profit in the final three months of 2007.
30 January 2009
US Airways records $2.2 billion 2008 loss
News reports state that US Airways posted a 2008 net loss of $2.21 billion, reversed from a $427 million profit in 2007, as it contended with a roller-coaster oil market that led to significant losses on fuel hedges.
In addition to $496 million of unrealized losses on mark-to-market hedging adjustments, US recorded a $622 million noncash charge to write off goodwill created by the America West Airlines merger. The carrier has moved quickly to reduce its hedging position in 2009. Executive VP and CFO Derek Kerr said 14% of its fuel consumption is hedged for the year, with none in the fourth quarter.
30 January 2009
Contiental posts $585 million 2008 loss
News reports state that Continental Airlines reported a 2008 net loss of $585 million, reversed from a profit of $459 million in the year-ago period, citing a deteriorating demand environment, a severe and "unprecedented" December winter storm at its Houston Intercontinental hub and special charges related to fuel hedging contracts and pension settlements.
29 January 2009
Iberia reports a 90.3% plunge from prior year with a €79 million operating loss
News reports state thta Iberia will report net income of €32 million ($42.2 million) for 2008, a 90.3% plunge from the prior year, it announced at an investors conference yesterday. It will suffer a €79 million operating loss on a 1.3% decline in revenue to €5.45 billion. Passenger revenue fell 2.5% to €4.22 billion. Operating costs rose 5.5% to €5.53 billion on a 45.5% surge in fuel expenses to €1.67 billion. Capacity dropped 0.5% year-over-year and load factor was down 1.6 points to 80%.
29 January 2009
AirTran posts $273.8 million 2008 loss
News reports state that AirTran Airways reported a 2008 net loss of $273.8 million, reversed from a $52.7 million profit in 2007, citing "multiple financial challenges" and noting that the result included nonoperating losses of $150.8 million related to its "out-of-the-money" fuel hedge contracts.
28 January 2009
Caribair - license suspended for 1 year
News reports state that Aviation officials have suspended the flying license of a small airline based in this Caribbean nation because it has failed to resolve safety concerns over unauthorized charter flights.
25 January 2009
** Swedish airline Nordic Airways looses license due to financial problems
News reports state that Nordic Airways, a Stockholm-based airline that launched its first commercial flights between western Europe and Baghdad earlier this month, has had its operating license revoked due to financial troubles, a Swedish Transport Agency official said Saturday.
Agency spokesman Anders Lundblad said the license was pulled Friday after the Stockholm County Court rejected the company's request for an extension to restructure itself.
Lundblad said passengers could be stranded because the fleet was grounded with immediate effect.
"It's very possible, since they can't fly back with them," he said.
Nordic Airway officials did not immediately return calls seeking comment.
In its decision, the agency cited the airline's ailing finances, saying it could "no longer fulfill its commitments and obligations toward its passengers."
Nordic Airways launched its Copenhagen-Baghdad route in the beginning of January with flights planned once a week between the Danish and Iraqi capitals.
The company had its permanent license replaced with a time-restricted temporary permit in October after it had applied for reconstruction due to financial difficulties. That license was due to expire on Feb. 15.
** Under the terms of IPP's insurance policies cover is excluded for tickets or policies bought on or after 24th January 2009
23 January 2009
Southwest suffers second quarterly loss
News reports state that Southwest Airlines followed up its first quarterly loss in 17 years with another in the fourth quarter of 2008, but it maintained its record of full-year profitability with a $178 million surplus that represented a 72.4% plunge from the $645 million earned in 2007.
22 January 2009
AMR posts heavy fourth-quarter, annual losses, sees capacity down 6.5% this year
News reports statet that American Airlines parent AMR Corp. reported a net loss of $340 million for the fourth quarter of 2008, propelling it into a full-year loss of $2.07 billion, its largest annual deficit since 2002 and a significant reversal from net income of $504 million in 2007.
Fourth-quarter results included a $23 million charge for aircraft groundings, facility writeoffs and severance related to previously announced capacity cuts and a noncash pension charge of $103 million "driven by a large number of early pilot retirements." Excluding these charges, AMR lost $214 million in the quarter compared to a loss of $184 million in the year-ago period excluding special items of $69 million inclusive. For the full year, the company lost $1.2 billion excluding special items, compared to income of $504 million ($420 million excluding special items) in 2007.
22 January 2009
UAL suffers $5.35 billion 2008 loss, announces 1,000 more job cuts
News reports state that United Airlines parent UAL Corp. kicked off the current reporting season yesterday with a troubling $5.35 billion net loss, reversed from a $403 million profit in 2007, and a pledge to cut an additional 1,000 positions from its roll of salaried and management employees.
The company suffered a $4.44 billion operating loss, compared to a $1.04 billion profit the previous year, on a 0.3% rise in revenue to $20.19 billion that was dwarfed by a 28.9% surge in expenses to $24.63 billion.
20 January 2009
Air France-KLM profit warning - third quarter loss
News reports state that Air France-KLM warned it would post a third-quarter operating loss after the economy deteriorated and fuel hedging backfired, sending its shares lower after the latest profit warning to hit the airline sector.
19 January 2009
Jet Airways loss
News reports state that Jet Airways reported a INR2.14 billion ($42.8 million) loss in its third fiscal quarter ended Dec. 31, widened from a INR911.2 million deficit in the year-ago period, and said that it will maintain focus on "domestic market consolidation" and "cost reduction initiatives," including plans to "rationalize our workforce."
The Indian carrier said falling fuel prices and rising yields helped it improve from a brutal fiscal second quarter in which it lost INR3.85 billion. Third-quarter revenue rose 24.6% year-over-year to INR30.23 billion while expenses climbed 24.7% to INR31.07 billion, deepening operating loss to INR840.6 million from the INR661.7 million suffered in the quarter ended Dec. 31, 2007.
17 January 2009
** FlyLAL grounded due to financial concerns
News reports stat that Lithuania's national carrier, FlyLAL-Lithuanian Airlines, had its operating certificate revoked Friday over fears that its financial troubles could affect flight safety.
As a result of the move, which was announced by the Lithuanian Civil Aviation Administration (LCAA), all FlyLAL-Lithuanian Airlines flights will be grounded indefinitely from Saturday.
'The certificate has been suspended due to the poor financial condition of FlyLAL,' said Kestutis Auryla of the LCAA.
Under the terms of IPP policies cover is no longer available for insurance or tickets issued with immediate effect
15 January 2009
Best Air Grounded
News reports state that The National Board of Revenue has sent a letter to the Civil Aviation Authority of Bangladesh requesting to cancel all Best Air flights as the private airlines failed to pay travel taxes amounting to Tk 2 crore.
In its letter, sent to the CAAB on January 13, the NBR stated that the Best Air had not paid travel tax of around Tk 2 crore for a long time.
14 January 2009
Air Mauritius loss
News reports statte that Air Mauritius said it suffered falling revenue and an "unprecedented deterioration of its financial performance" largely attributed to losses related to fuel hedges in its third fiscal quarter ended Dec. 31, leading to a nine-month loss of approximately €18 million compared to an €11.6 million profit in the year-ago period. The company realized a nine-month net loss of €20.5 million on its fuel hedging contracts and mark-to-market losses through the nine-month period totaled €129.5 million. It said it required some €65 million to meet future cash flow needs and will secure the funds through the sale of noncore assets, bridge loans and fresh capital. It now is projecting a full-year deficit of €23.1 million, reversed from a €15.6 million profit in the 2007-08 year.
13 January 2009
China Eastern significant 2008 loss
News reports state that China Eastern Airlines is taking a series of measures to curb rising operating costs and try to engineer a turnaround from what it expects to be a significant 2008 loss.
Already due a CNY7 billion ($1.02 billion) capital injection from the Chinese government, CEA said in a Monday filing with the Shanghai Stock Exchange that it suffered a CNY6.2 billion loss resulting from a writedown in the value of its fuel hedges on Dec. 31. It reported cash losses of $420,000 and $14.2 million on its fuel hedge contract in November and December respectively.
12 January 2009
Zambian Airways suspends operations
News reports statet that Zambia's privately-owned carrier Zambian Airways said on Saturday it had suspended operations with immediate effect, citing high fuel costs over the last year-and-a-half and the need to restructure its operations.
The airline said in a notice to passengers at Lusaka airport that it had experienced difficulties after jet fuel rose 100 percent in the last 18 months, increasing its operational costs by 50 percent.
"This created a lot of problems for Zambian Airways as a growing business. In the interest of our stakeholders and our employees, we have decided with immediate effect to suspend all our operations until further notice," it said.
Dozens of passengers flying to South Africa were left stranded, eye witnesses said.
9 January 2009
Chinese carriers - CNY7.7 billion net loss first 11 months of 2008
News reports state that Chinese carriers posted CNY7.7 billion net loss in first 11 months of 2008
Hit hard by the deepening global financial crisis, Chinese airlines posted a net loss of CNY7.7 billion ($1.13 billion) in the first 11 months of 2008, according to CAAC Vice Minister Yang Guoqing.
Yang noted in a conference this week that the carriers suffered from a sharp decline in demand last year, especially on international routes. Even Hong Kong and Macau slipped.
Based on the regulators' rough estimate, Chinese airlines transported 192 million passengers in 2008, down 13% from 2007. Cargo volume plummeted 14.8% to 4 million tonnes.
8 January 2009
** Speedferries goes into administration
Speedferries website states "The Joint Administrators regretfully announce the closure of Speedferries Limited (In Administration). The Joint Administrators have been exploring every possible avenue to save the business since 12 November 2008 and it is unfortunate that a buyer for the business has not been found.
Speedferries Limited (In Administration) will now cease to operate services between Dover and Boulogne and customers with pre-booked tickets are advised to seek alternative travel arrangements."
15 December 2008
Air Tanzania grounded
News reports state that During the past week the Tanzanian Civic Aviation Authority (TCAA) cancelled the airline's operating licence without further ado after an inspection revealed more than 500 operational gaps.
The International Air Transport Association (Iata) and the TCAA found serious gaps - among other things poor inspection of aircraft and a shortage of pilots and aircraft technicians.
11 December 2008
Advantage Rent A Car files for bankruptcy
** News reports state that Advantage Rent A Car has filed for reorganization under Chapter 11 in the bankruptcy court of Minnesota.
The San Antonio, Texas-based company said it is exploring options such as reorganization, a sale or a merger. As a result of financial strain, Advantage said that it is immediately consolidating its network of rental locations to focus efforts on the most profitable, highest volume sites.
** Under the terms of IPP's policies cover will be excluded for this company in respect of tickets or insurance issued on or after 9th December 2008
9 December 2008
Skymark Airlines loss
News reports state that Skymark Airlines of Japan expects to post a ¥2.1 billion ($22.6 million) loss in the fiscal year ending March 31.
9 December 2008
SkyEurope's full-year loss more than doubles
News reports state that SkyEurope Airlines reported a €59.4 million ($75.4 million) loss in the fiscal year ended Sept. 30, more than double the €24.1 million suffered in the prior year, as benefits from a restructured and streamlined network failed to materialize in time to offset record fuel costs
5 December 2008
OK Air forced to suspend flights
News reports state that China’s first private airline OK Air has suspended passenger flights because of financial and management problems.
Chief of the airline Wang Junjin said Wednesday the suspension from Dec 15 to Jan 15 would not affect movement of cargo business.
The company’s spokesperson Han Jing said the passenger sector accounted for 80 percent of its business.
‘The business suspension may break the company’s capital flow, and force the company into bankruptcy liquidation,’ she said.
5 December 2008
Flightline collapses
News reports state that Flightline Ltd, the Southend airport-based airline, went into administration yesterday.
26 November 2008
Financial losses ground United Eagle
News reports state that mounting losses have forced United Eagle Airlines, China's first registered private-owned airline company, to ground two of its aircraft, the Beijing Times reported Tuesday.
Junyao Group, the single largest shareholder of United Eagle, said those aircraft had been grounded since last Friday mainly because of cash flow problems. "The more aircraft we fly, the more debt we accrue," a company official of Junyao was quoted as saying.
According to the China Civil Airports Association, the airline currently owes 39.51 million yuan in airport charges as of March this year. The airline hasn't been paying airport fees since February 2007, the association said.
22 November 2008
** DayJet to fold after filing for Chapter 7
News reports state that DayJet Corporation's assets will be sold off to pay its creditors after the company filed Chapter 7 bankruptcy last week, nearly two months after grounding its fleet of 28 air taxi jets and eliminating most of its 160 jobs.
21 November 2008
Alitalia sees 2008 operating loss of 1 bln euros
News reports state that Alitalia will post an operating loss of 1 billion euros ($1.25 billion) in 2008, the airline's bankruptcy commissioner Augusto Fantozzi said at a news conference on Thursday.
21 November 2008
Air France KLM reports 96% profit plunge
News reports state that Air France KLM reported a 96.2% drop in consolidated net income for its fiscal second quarter ended Sept. 30 to €28 million ($35.4 million) from €736 million earned in the year-ago period.
18 November 2008
Gol heavy third quarter losses
News reports state that Gol and Varig parent Gol Linhas Aereas Inteligentes suffered a BRL294.3 million ($131,1 million) loss in the third quarter, reversed from a BRL45.5 million profit in the year-ago period, as special charges eclipsed improvement on the operating level.
17 November 2008
Korean Air's largest loss
News reports state that the dramatic collapse in the value of the won was blamed for Korean Air's largest single-quarter loss in 14 years, a KRW684.1 billion ($492.8 million) third-quarter deficit representing a reversal from a KRW129.6 billion profit in the year-ago period.
13 November 2008
SAS Group NOK 1.54 billion losses
News reports state that the SAS Group incurred NOK 1.54 billion losses for the 3rd quarter due to soaring fuel cost, decreasing passenger and the global financial crunch, the airline company reported recently.
12 November 2008
Asiana Airlines loss
News reports state that fuel costs and the weakening won combined to drag Asiana Airlines to a KRW47.9 billion ($36 million) loss in the third quarter, reversed from a KRW37 billion profit in the year-ago period.
11 November 2008
Cathy Pacific $85.5 million loss in first 6 months of 2008
News reports state that CX said in its statement to the Hong Kong Stock Exchange that "weakness in revenue and losses on certain fuel hedging contracts" would "affect the year's results adversely." It lost HK$663 million ($85.5 million) in the first half of 2008 after reporting a HK$7.02 billion profit last year.
11 November 2008
TAM $52.2 million loss
News rerports state that TAM suffered a BRL112.7 million ($52.2 million) loss in the third quarter, reversed from a BRL48.5 million profit in the year-ago period, despite a 40.5% surge in operating revenue to BRL2.9 billion. The Brazilian carrier's costs grew 36.2% to BRL2.73 billion but BRL301.5 million in financial charges, owing mainly to losses on fuel hedges, dragged its operating result into the red. Operating loss was BRL152.9 million compared to a BRL78.3 million profit last year.
10 November 2008
Alma de Mexico files for bankrutcy
News reports state that Alma de Mexico suspended operations and filed for bankruptcy last Friday, citing the "crisis" in the industry and global economy.
* Under the terms of our policy wording cover is excluded for all cover purchased from Friday 7th
10 November 2008
Air Canada C$132 million loss
News reports state that Air Canada reports C$132 million loss on fuel costs, noncash charges
Air Canada posted a third-quarter net loss of C$132 million ($112.4 million), reversed from a C$273 million profit in the year-ago period, saying its results were hurt by high fuel costs and noncash losses on fuel hedging and currency items.
10 November 2008
Air Mauritius €13.4 million loss
News reports state that Air Mauritius lost €13.4 million ($17.3 million) in the fiscal first half ended Sept. 30, reversed from a €2.5 million profit in the year-ago semester. Revenue rose 8.5% year-over-year to €216.1 million but the airline said it could not overcome a 17.5% increase in operating costs driven by a 49% surge in fuel expenses.
4 November 2008
Jetride Inc. Grounded
News reports state that not quite six years after it started, Jetride Inc. (formerly known as Pinnacle Air LLC), has surrendered its flight operating certification to the Federal Aviation Administration. On Monday, all planes were officially grounded and the company's operations as an airline ceased, said Roland Herwig, a spokesman for the FAA in Oklahoma City.
3 November 2008
Hainan, Shanghai plunge to third-quarter losses
News reports state that Hainan Airlines and Shanghai Airlines posted third-quarter net losses of CNY260.8 million ($38.1 million) and CNY437.4 million respectively as declining domestic demand and high fuel prices continued to wreak havoc on China's airlines
3 November 2008
Finnair - a €17.3 million third-quarter loss
News reports state that admitting that "conditions for profitable business are increasingly marginal," Finnair reported a €17.3 million third-quarter loss, reversed from a €39.6 million profit in the three-month period ended Sept. 30, 2007.
31 October 2008
China Southern suffers loss
News reporst stat thta China Southern Airlines yesterday reported an CNY810 million ($118 million) net loss for the third quarter, joining "big three" rivals Air China and China Eastern Airlines deep in the red.
30 October 2008
China Eastern Airlines suffered a CNY2.33 billion net loss
News reports state that China Eastern Airlines suffered a CNY2.33 billion net loss in the third quarter, reversed from a CNY976.5 million profit in the year-ago period, on a 13.7% decrease in operating revenue to CNY10.81 billion. Board Secretary Luo Zhuping attributed the result to the "continuous decline of domestic market demand caused by the worsening economic environment
29 October 2008
Pakistan International Airlines posts a PKR20.4 billion ($249.2 million) loss
News reporst state that Pakistan International Airlines posted a PKR20.4 billion ($249.2 million) loss in the third quarter, widened from a PKR3.15 billion deficit in the year-ago quarter. Nine-month loss increased to PKR38.4 billion from PKR10.9 billion in year-ago period.
29 October 2008
Austrian Airlines Group €16.4 million net loss
News reporst state that Austrian Airlines Group reported a €16.4 million ($20.5 million) net loss in the third quarter, reversed from a €29.2 million profit in the year-ago period, but said it is "confident" that its delayed privatization "can be finished in a positive way."
29 October 2008
Air China plunges to CNY1.9 billion loss
News reporst state that Air China suffered a net loss of CNY1.9 billion ($276.5 million) in the September quarter owing to weak domestic market demand and fuel hedge writedowns, a big reversal from the CNY2.2 billion profit in the year-ago quarter.
Operating revenue fell 3.8% to CNY13.92 billion against a 24% increase in operating expenses to CNY15.09 billion. CA Chairman Kong Dong noted that "market demand has become one of the major factors affecting profitability as international oil prices have substantially declined recently." The carrier also said in a Shanghai Stock Exchange statement that the sharp drop in fuel prices during the quarter resulted in hedge-related losses.
Third-quarter passenger boardings fell 9.4% year-over-year to 8.7 million as traffic was affected significantly during July and August by security requirements related to the Beijing Olympics. Domestic load factor sank 8.91 points to 74.8% and international loads dropped 10 points to 72.1%. Cargo traffic dipped 9.5% to 910 million FTKs.
Nine-month loss was CNY657.3 million on a 6.6% lift in operating revenue to CNY39.68 billion.
29 October 2008
** Sterling Airlines to File for Bankruptcy Protection Today
News reports state that Sterling Airlines A/S will file for bankruptcy today after its Icelandic owner ran out of capital to support the business and after the company was unable to enter a deal to divest itself.
``Negotiations have been conducted with several potential investors, but it was impossible to make ends meet,'' the company said in a statement on its Web site today. ``The inevitable result is that Sterling Airlines has no option but to file for bankruptcy.''
Sterling's owner Palmi Haraldsson had sought to find a partner for the airline, after rising fuel costs and less demand for air travel reduced the company's profitability. Haraldsson's plans to inject enough capital in the company to keep it liquid until 2009 were undermined by the collapse of the Icelandic financial system, Sterling said. Iceland on Oct. 24 secured a $2.1 billion loan from the International Monetary Fund.
``Over a three- to four-week period, the whole financial system melted down, and that resulted in our shareholder being unable to continue his support to the company,'' Sterling said.
Sterling customers who bought their tickets on the company's Web site won't be refunded, according to the statement. Sterling is advising customers who bought their tickets by credit card to contact the credit card company or bank, while people who bought tickets through travel agents should contact them, the company said.
** Under the terms of IPP's insurance cover is excluded for this airline for cover or tickets issued with immediate effect
28 October 2008
Jet Airways suffers steep second-quarter loss
News reports state that Jet Airways reported a INR3.85 billion ($71.5 million) loss in its fiscal second quarter ended Sept. 30, reversed from a INR283 million profit in the year-ago period, as the grave conditions that forced it into an alliance with rival Kingfisher Airlines and prompted Jet's failed attempt to cut 1,900 jobs wreaked havoc on its P&L.
"The impact of the global meltdown and the resultant slowdown in traffic has been felt by airlines across the world and India has been no exception to this," Jet said, while stating that the September quarter "is historically the weakest quarter of the year in terms of demand"
24 October 2008
Alaska Air Group posts loss
News reports state that Alaska Air Group, like several US counterparts, suffered a third-quarter loss owing to a decline in the mark-to-market value of its fuel hedges, reporting an $86.5 million deficit that compared to an $81.8 million profit in the third quarter of 2007.
24 October 2008
AirTran reports $107.1 million quarterly loss
News reports state that AirTran Airways posted a third-quarter net loss of $107.1 million, reversed from a $10.6 million profit in the year-ago period, due in part to losses of $41.5 million related to its fuel hedging program owing to the recent fall in oil prices.
24 October 2008
US Airways posts a US$862 million loss
News reports that US Airways reported a third-quarter net loss of $862 million, reversed from a profit of $177 million in the year-ago period, and like other US carriers cited fuel hedging charges as a principal cause.
23 October 2008
Northwest Airlines reported a third-quarter net loss
News reports state that Northwest Airlines reported a third-quarter net loss of $317 million, reversed from a $244 million profit in the year-ago period, citing a $410 million noncash charge related to fuel hedging as the reason.
22 October 2008
SkyEurope does not fulfill its payment plan
News reports state that SkyEurope Airlines "did not fulfill its payment plan" with Austrian Airlines Group and no longer will have its 737-700s serviced by Austrian Technik, AAG CEO Alfred Oetsch told Vienna's Die Presse. In addition, several SkyEurope aircraft were not refueled at VIE last week owing to unpaid fuel bills. US investor York Global Finance, which holds 29.9% of the LCC, plans to lead a consortium that intends to take a complete or majority stake. It hopes to finalize the deal at a board meeting scheduled for Nov. 10.
22 October 2008
United posts $779 million loss
News reports state that United Airlines parent UAL Corp. reported a third-quarter net loss of $779 million, reversed from a net profit of $334 million in the year-ago period, blaming the bulk of the result on a $519 million noncash net loss on fuel hedge contracts caused by the recent drop in oil prices.
The net loss excluding the hedging losses and noncash accounting charges was $252 million. Chairman, President and CEO Glenn Tilton said that lower fuel prices will have "a significant positive impact" on earnings going forward, though he cautioned that "the forces [driving down] fuel prices are also affecting the global economy," likely leading to reduced demand.
Speaking to reporters and analysts, Tilton added that the weak economy and "volatile" fuel costs have led the airline to institute a "cost-conscious culture, which in many ways is not what our reputation has been historically. . .At the end of the day we've got to run this business to make a real margin and if that means that the business has to be smaller, so be it."
20 October 2008
Austrian predicts heavier full-year loss
News reports state that Austrian Airlines Group issued a new forecast last week "based on the already observed as well as expected declines in bookings," and now is expecting a 2008 net loss before special items of €100-€125million ($134.5-$168.1 million).
It predicted a €70-€90 million loss in July. It said that "noticeable consequences for the aviation industry due to the general financial and economic crisis are also expected for the coming months" and that lower fuel costs would not compensate for sales-related revenue losses.
17 October 2008
** LTE International Airways cease operations
News reports state and LTE's website states:-
"Lte International Airways S.A. wish to inform you that due to the financial situation of the company, that make it difficult to meet the operational expenses in the next days, we have had to suspend our charter and scheduled operations.
Lte is doing everything to minimize the impact of this suspension of services on its clients and providers. After 20 years operating with maximum dedication to our clients it just was not possible to avoid this situation given world events lately.
We apologize for the inconvenience this may cause to our passengers, clients and suppliers.
Lte International Airways S.A."
* COVER UNDER IPP's POLICIES WILL CEASE WITH IMMEDIATE EFFECT
17 October 2008
Air China expects loss
News reports state that Air China told the Shanghai Stock Exchange yesterday that it expects to report a nine-month deficit owing to falling demand and fuel hedge losses. It did not reveal specific figures. Its profit through the first nine months of 2007 was CNY3.5 billion and it was CNY1.24 billion in the black through the first half of 2008
17 October 2008
Indian downturn, Kingfisher reports loss
News reports state that volatility in the Indian market continued yesterday as Air India said it is working on a plan to offer unpaid 3-4-year leave to up to 15,000 employees and Kingfisher Airlines reported a heavy third-quarter loss.
The AI announcement came one day after Jet Airways, which had just unveiled its alliance with former rival Kingfisher, revealed a controversial plan to lay off approximately 1,900 workers.
AI told the Press Trust of India that the "scheme is purely voluntary," and Chairman and MD Raghu Menon said those who accept the furlough (if approved by the carrier's board) will be allowed to return at the same seniority and pay level. AI employs around 23,000. Civil Aviation Minister Praful Patel told PTI that there will be no permanent cuts, although the current market downturn "will affect the growth plans [and] future employment opportunities."
In the meantime, the government will infuse INR15 billion ($300.4 million) of new equity into AI and extend a INR20 billion soft loan "if needed," in addition to talking to private firms and investors on AI's behalf, Patel told Hindustan Times. "The time is not right" for an IPO, he said.
Meanwhile, Jet's decision continued to meet with protest from unions and politicians and Chairman Naresh Goyal agreed to meet with local political figures next week, the BBC reported. Patel told PTI he would "talk to all airlines to see that such large-scale loss of jobs does not happen and try to find a way out."
Jet's new partner promised that its employees' jobs are safe for the time being, but the losses continue. Kingfisher yesterday said it lost INR1.88 billion through the nine months ended March 31, narrowed from a INR2.44 billion deficit in the year-ago period. It has changed the end of its fiscal year to March 31 from June 30 and will not report a 12-month result.
17 October 2008
Continental reports big loss, defers aircraft deliveries
News reports state that Continental Airlines yesterday reported a third-quarter net loss of $236 million, reversed from a $241 million profit in the year-ago period, and announced that it has pushed back delivery of 18 aircraft scheduled to arrive over the next two years.
Two 777s will be delivered in 2010 instead of 2009 and 16 737NGs slated for 2009-10 have been deferred to 2011 and beyond with no new schedule set. CO still is scheduled to take delivery of 14 737NGs next year, though executives concede that the Boeing machinists strike could push some of those back as well.
Chairman and CEO Larry Kellner called the delayed deliveries "prudent moves in uncertain times" and said the carrier is hunkering down for a difficult period. "We know that demand for air travel will be adversely affected by the recession," he told analysts and reporters.
17 October 2008
Fuel hedges drag Southwest to first loss since 1991
News reports state that the fuel hedges that helped Southwest Airlines stay profitable while surging oil prices crippled its US rivals now have resulted in the carrier's first quarterly net loss in 17 years, a $120 million deficit that represented a reversal from the $162 million profit reported in the third quarter of 2007.
16 October 2008
9 Airlines Grounded Over Unpaid Debts
News reports stat that nine airlines will be grounded by the end of the week due to overdue debts, aviation authorities announced Wednesday.
Three of the airlines -- Interavia, Dalavia and Omskavia -- had all but suspended flights already, stranding hundreds of passengers.
Moscow-based Interavia, which topped the list with an overdue debt of 19.2 million rubles, has not flown since Oct. 9, missing 23 flights as of Wednesday, according to the web site of Domodedovo Airport.
Other big debtors include state-owned Dalavia, with 18.4 million rubles in overdue payments, and Omskavia, part of the troubled AirUnion alliance, with late payments of 4.9 million rubles.
The Federal Navigation Authority said the airlines had repeatedly been asked to pay their debts and that, in line with legislation, they had gotten a warning, followed by restriction of services on charter flights and now suspension of services for all flights, Interfax reported.
The process of withdrawing Interavia's license might start on Oct. 26, the report said.
An Interavia representative at Domodedovo Airport said hundreds of passengers were waiting for information about when they could expect to fly.
"We do not know when the airline's services will resume," he said. "We do not know anything except that the airline is deeply in debt and we have not been paid for three months."
Domodedovo spokesman Ildar Tuzmuhametov said the airport was waiting for the carrier to take action but would not comment on how soon the problems might be resolved or what was causing the delays.
9 October 2008
Alaska Air Group losses
News reports state that Alaska Air Group expects to suffer a "significant" third-quarter loss on a GAAP basis resulting from a $220 million mark-to-market loss on the value of its fuel hedges and other special items, it said in a filing with the US Securities and Exchange Commission.
7 October 2008
** Sun Country files for bankruptcy
News reports state that Sun Country Airlines yesterday filed for Chapter 11 bankruptcy protection, but insisted it will "operate business as usual."
* Under the terms of our policy cover is excluded for this airline as from 6th October 2008
6 October 2008
Sun Country warns of possible shutdown
News reports state that Sun Country Airlines faces an uncertain future following last week's resignation and arrest of its former chairman, warning employees that a shutdown by Dec. 1 is "a distinct possibility."
The Minneapolis/St. Paul-based carrier that operates a fleet of nine 737-800s on scheduled services and charters to points in the US, Mexico and the Caribbean was rocked last week when parent company Petters Group Worldwide's headquarters offices were raided by the FBI and Internal Revenue Service. Tom Petters, chairman of the company and also of SCA, abruptly resigned his posts after his home was raided. He was arrested Friday by the FBI and charged with mail fraud, wire fraud, money laundering and obstruction of justice.
Sun Country was not implicated in the federal probe, but it faces a credit crunch as a result of the scandal. President and CEO Stan Gadek assumed the role of chairman and said the airline must gain its financial independence from PGW, proposing that its 850 employees take a temporary 50% pay cut for the remainder of the year.
SCA General Counsel John Fredericksen told employees in a letter last week that the carrier faces a "serious financial crisis," adding, "Should Sun Country not be able to obtain additional financing or obtain relief from our major creditors in the near future, there is a distinct possibility that the airline will be shut down and/or you will be furloughed." The company insisted it is confident it can find a solution, noting that it is required by US law to inform workers 60 days in advance of possible job losses.
3 October 2008
Air Fiji aircraft grounded
News reports state that a Legal battle is looming for Air Fiji after its major fuel supplier, BP Oils, said it was forced to take legal action against the company to recover unpaid debts.
The revelation came as the airline cancelled its trips to Labasa yesterday reportedly because of a lack of fuel, leaving passengers stranded at the airport.
An airline source said flights up to Monday had been cancelled awaiting results of a legal dispute.
1 October 2008
** AiRUnion shuts down
** News reports state that AiRUnion, the failed Russian airline alliance that comprised five carriers, ceased to exist Tuesday as the management company shut down.
The Russian government intended to replace AiRUnion with a state-owned grouping of nine airlines, but AiRUnion COO Gustav Baldauf said that "we are still working on a concept for a follow-up company" and that decisions on how the replacement alliance would function "will take some time."
Talks with the government are on hold and Atlant-Soyuz Airlines, the Moscow-owned carrier that was supposed to take over AiRUnion's flights, still is awaiting certification to do so.
** Cover for this airline was withdrawn for all policies or tickets issued on or after 22nd August 2008
1 October 2008
Italy's Air Bee to stay grounded for three more weeks
News reports state that grounded Italian carrier Air Bee has extended the suspension of its operations for a further three weeks until 23 October.
The Brescia-based carrier, which launched operations earlier this year, suspended its flights on 11 September for three weeks. It cited difficulties of being in the start-up phase of its business given the uncertainties in the Italian air sector amid continued efforts to privatise ailing flag carrier Alitalia.
In a brief statement on its website, Air Bee now says its operations will remain suspended until 23 October.
22 September 2008
** DayJet collapses
News reports state that Air taxi pioneer DayJet Services, LLC has ceased all jet services, according to a company statement issued on Friday. Stating on their website "As of September 19, 2008, DayJet Services, LLC, has discontinued its jet services and cancelled all future flights as a result of the company’s inability to arrange critical financing in the midst of the current global financial crisis.
We regret the disruption and hardship caused by the sudden shutdown of DayJet services to our customers, employees, DayPort communities, suppliers and stockholders. Unfortunately, DayJet is unable to honor customer reservations or issue refunds."
** In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
19 September 2008
Aviation body could ground Alitalia in 10 days
News reporst state that Italy's civil aviation authority ENAC will ground Alitalia flights in 7-10 days from next Monday if the special administrator does not present a new rescue plan to them that day, a source at ENAC said on Friday.
"From Monday if there is no news proceedures will be started and within a week, 10 days at most, if there is no positive outcome Alitalia flights will be stopped," said the source.
The airline's special administrator, Augusto Fantozzi, is due to meet the aviation body on Monday after Italian consortium CAI withdrew its offer to buy part of the airline on Thursday, in the face of union opposition to job losses.
19 September 2008
Berlusconi: Alitalia 'on the edge of an abyss' after CAI withdraws rescue offer
News reports state that Alitalia's future is in serious doubt after Italian investment group CAI yesterday withdrew its €1 billion ($1.4 billion) offer to rescue the airline.
"I received confirmation from CAI that it has withdrawn its offer," Prime Minister Silvio Berlusconi told reporters. "We could be on the edge of an abyss." He previously had warned AZ's workers that there was "no alternative" to CAI's plan and all 20,000 employees would lose their jobs if talks between labor and the investment consortium collapsed.
Six of the carrier's nine unions, including pilots and flight attendants, refused to accept concessions contained in the CAI proposal. A deadline set by the consortium passed yesterday without labor groups' agreement to the rescue plan and CAI issued a statement saying its members had "unanimously" voted to withdraw their offer.
While the airline's aircraft were expected to fly today, AZ Administrator Augusto Fantozzi said earlier this week that money needed to keep the airline operating was "about to run out."
17 September 2008
Olympic Airlines to shut down
News reports state that Olympic Airlines will be shut down and restarted as Pantheon Airways early next year pending European Commission approval of a Greek government plan to rescue the loss-making carrier. Under the plan, Pantheon would be privatized, likely including foreign investment. It would continue operating Olympic's domestic network but would cut back international routes and be about 65% of Olympic's size. Several thousand jobs would be eliminated. Greek Minister of Transport Kostas Chatzidakis said OA is one of Europe's worst performing companies and cannot continue in its current form.
12 September 2008
XL Travel Group Bust - Thousands Stranded
News reporst state that XL Leisure Group Plc, the U.K.'s third largest tour operator, went into administration early today, leaving tens of thousands of passengers stranded, with the company blaming rising fuel costs and the economic slowdown.
The U.K.'s Civil Aviation Administration said as many as 89,000 people could be stranded overseas with another 200,000 holding advanced bookings with the privately held company and its units.
XL Leisure, XL Airways UK Ltd., Excel Aviation Ltd., Explorer House Ltd., Aspire Holidays Ltd., Freedom Flights Ltd., Freedom Flights (Aviation) Ltd., The Really Great Holiday Company Plc, Medlife Hotels Ltd., Travel City Flights Ltd. and Kosmar Villa Holidays Plc are all in administration, XL said in a statement on its Web site this morning.
``The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding,'' XL said in the statement.
11 September 2008
AiRUnion will disappear this month
News reporst state that AiRUnion COO Gustav Baldur said the struggling Russian airline alliance will be shut down at the latest by Sept. 30.
Speaking at an international symposium of the Austrian Aviation Assn., Baldauf said the AiRUnion project had failed. "Now we will present a new concept [to the State of Russia] today in Moscow [to show] how a replacement airline project could be functional."
He added that the alliance will enjoy a state guarantee for fuel purchases until Sept. 14. After that date, Atlant-Soyuz, which also will be a member of the new alliance, will be the vehicle to operate AiRUnion flights until the end of the month. Then the first airline alliance in Russia will be history.
The new state-owned alliance, which should comprise nine carriers, will be owned 51% by Russian Technology with the other shares split between the cities of Krasnojarsk and Moscow.
Russian aviation experts told this website that the new airline cluster will be much more complex than the former AiRUnion, which included just five carriers, and expressed skepticism about the project. As yet, the new grouping does not have a name.
9 September 2008
New Alitalia will be organized by Nov. 1
News reports state that according to Italian Minister of Productive Activities Claudio Scajola, who told media that the country "need[s] an airline which can be competitive as soon as possible," according to Bloomberg News. It will not be an easy road, however, as at least five unions yesterday rejected the layoffs and new contracts necessary to the government's rescue plan. Leaders of nine unions met yesterday with the Compagnia Aerea Italiana investment consortium, but talks were suspended owing to what union sources said were job contracts that were "unacceptable in their approach," Reuters said. Negotiations were set to resume last night.
The ANPAC and UP pilot unions left the table during the day, telling the AGI news service that "the problems of the pilots cannot be faced together with those from other categories, given the specificity of our work," while one official told Reuters that a positive outcome was "very remote for the time being." Pirelli Chairman Marco Tronchetti Provera told reporters that the rescue plan "is valid from an economic standpoint" and that the tire maker may invest €10-€20 million ($14.3-$28.5 million) in the new airline, Bloomberg reported. AZ Administrator Augusto Fantozzi told Il Sole 24 Ore that CAI offered €400 million for AZ's assets.
8 September 2008
** Futura seeks bankruptcy protection
News reports state that Palma, Mallorca-based Futura International Airways suspended flights today as it sought bankruptcy protection, the Spanish Infrastructure Ministry confirmed, but the carrier intendeds to restart operations tomorrow.
The ministry said it asked Futura to present information on its financial situation, a plan for reorganization and guarantees on the security of its flight operations by Friday in order to determine whether it could retain its operating license.
The Spanish CAA will open an inquiry to verify whether Futura respected its legal obligations to passengers as a result of its "unilateral" decision to suspend operations.
According to the airline's website, its fleet comprised 38 737s last year. It added two 737-900ERs this year (ATWOnline, March 19, 2007). Revenue was €327 million ($466.4 million) in 2007 and it carried 3.7 million passengers. It operates charter flights and leases out several aircraft to other tour operators and charter carriers. It was founded in 1989 with the participation of Aer Lingus, which sold off its majority stake in 2002 and its remaining 20% last October.
Futura International's Dublin-based subsidiary Futura Gael said it had suspended operations for an undetermined period. The Irish CAA has revoked its AOC.
** In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
4 September 2008
Airlines to lose USD5.2 billion in 2008
News reports state that The International Air Transport Association (IATA) announced a revised industry financial forecast that would see the global airline industry post losses of USD5.2 billion in 2008 based on an average crude oil price of USD113 per barrel (USD140 for jet fuel). Giovanni Bisignani, IATA’s Director General and CEO said, “The situation remains bleak. The toxic combination of high oil prices and falling demand continues to poison the industry’s profitability. We expect losses of USD5.2 billion this year.”
1 September 2008
Struggling SkyEurope suffers deepening losses
News reports state that SkyEurope Airlines suffered a €16.8 million ($24.8 million) loss in the fiscal third quarter ended June 30, widened from a €5.1 million deficit in the year-ago quarter, as high fuel prices offset the company's continuing efforts to cut costs and streamline its operation.
The airline said it responded by raising fares and cutting capacity in addition to eliminating "poor performing" routes (ATWOnline, July 23), but revenue rose just 0.1% year-over-year to €67.9 million and EBIT declined to a €14 million loss from the €5.2 million lost in the year-ago quarter.
29 August 2008
Airline collapse hits thousands
News reports state that hundreds of people have been left stranded and up to 45,000 have lost bookings after the collapse of the low-cost transatlantic airline Zoom.
The carrier suspended all its flights, blaming the economic downturn and steep rises in fuel bills.
*** Cover was withdrawn for this airine on 2nd June 2008 for all policies or tickets issued on or after this date
29 August 2008
Alitalia board OKs bankruptcy protection
News reports state that Alitalia's board on Friday formalised a request to seek bankruptcy protection, Corrado Passera, the CEO of the stricken carrier's sale adviser Intesa Sanpaolo said.
Alitalia's board is meeting in Rome to approve its first-half results and discuss a rescue plan drawn up by Intesa that foresees splitting the airline into two.
Its loss-making units are to be left under bankruptcy protection while its healthy parts will be acquired by a holding company composed of 16 Italian investors in an effort to create a smaller, leaner airline with control of the Italian market.
Air France KLM and Lufthansa are tipped as frontrunners to buy a minority stake in the restructured carrier, which needs a foreign alliance over the long term.
Smaller Italian carrier Air One will be folded into the restructured airline, which is expected to focus on short and medium haul routes and will operate with a much smaller fleet and about 40 percent fewer employees.
Passera said new foreign investors would join the Italian consortium in the coming days, without specifying names. He said the bank had received a letter from Air France-KLM acknowledging the rescue plan.
The French-Dutch carrier said on Thursday it would be willing to take a minority stake in the restructured Alitalia provided it returned to profitability.
Speaking to reporters at a conference in northern Rimini, he warned the next four weeks would be crucial to determine whether the rescue plan could be accomplished, and said a deal with Alitalia's notoriously strike-prone unions would be important.
* In accordance with the terms of our policy, cover for Scheduled Airline Failure was withdrawn on 3rd April 2008, policies issued or tickets issued prior to this date will be covered.
28 August 2008
Aer Lingus swings to first-half loss, predicts full-year deficit
News reports state that citing unprecedented fuel costs, slowing economic growth in its main markets and weakness in the US dollar and UK pound, Aer Lingus reported a net loss of €20.6 million ($30.3 million) for the first half of 2008, reversed from a €6.8 million profit in the year-ago semester.
Revenue rose 10.2% year-on-year to €633 million while operating costs increased 14.6% to €655.2 million, with fuel costs soaring 48.7% to €172.4 million in spite of hedging savings and dollar weakness. Fuel represented 26.3% of total costs in the period, up 6 points. Operating loss was €22.3 million, reversing a profit of €2.6 million in the first half of 2007.
28 August 2008
** ZOOM Airlines plans to appoint administrators
News reports state that Zoom Airlines is seeking protection from creditors and plans to appoint administrators in the UK and Canada.
The airline said the move would freeze the demands of its creditors while it negotiated fresh investment and continued operating services between the UK, Canada and the US.
It came after a Zoom flight headed for Glasgow and Gatwick via Vancouver was grounded at Calgary when the aircraft’s owner terminated Zoom’s lease because of unpaid bills.
Executive chairman Hugh Boyle apologised to passengers and said the problems had been caused by “acutely difficult” trading conditions and the “horrendous” increase in fuel prices – which had added $50 million to its operating costs.
Boyle said: “Zoom Airlines Limited, based at London Gatwick and Zoom Airlines Inc, based in Ottawa Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada.
“The airline’s flights will continue to operate and the decision to instigate creditor protection proceedings means that the demands of existing creditors are frozen while we continue negotiations on an investment package which already are at an advanced stage.
“This situation has resulted in delays for passengers last night and today and we are working extremely hard to get our flights back on schedule. We sincerely apologise for the inconvenience this has caused passengers.
“Our trading position is a direct consequence of the horrendous increase in the price of aviation fuel and the economic climate.
"The rise in the price of fuel resulted in a $50 million increase in our operating costs during the last year alone and that coupled with the general economic downturn has led to difficulties which are being felt throughout the industry.”
Passengers on the grounded aircraft had been found an alternative flight. Other services had been delayed as a result and Zoom was trying to get schedules back to normal.
** Cover for this airline under IPP's policies was withdrawn for this airline on 2nd June 2008
28 August 2008
Zoom flights grounded at Glasgow
News reports state that HUNDREDS of travellers were stranded at Glasgow Airport today after two flights were grounded because of technical and alleged financial problems.
A Boeing 757 belonging to Zoom Airlines was stopped from taking off for Halifax, Canada, shortly before 11am after the Civil Aviation Authority enforced a detention order. More than 200 people were aboard.
A second flight to Canada, due to leave at noon for Vancouver, was delayed for 12 hours.
Zoom said the plane that had been due to leave Canada to pick the 156 people up had developed a technical fault and a replacement was being flown from London Gatwick to Glasgow tonight.
But reports from Canada said that plane had been grounded due to financial problems.
The chaos left more than 360 people stranded.
The detention order on the plane at Glasgow Airport had been served by CAA chiefs on behalf of Euro Control - the organisation responsible for air space across Europe. Euro Control claims it is owed a substantial sum by Zoom.
A second detention order was also placed on the plane by the UK's National Air Traffic Agency for alleged non-payment of charges.
BAA also enforced a third detention order due money, it is claimed, owed by the airline in connection with services in and out of Glasgow.
Earlier today passengers flying from Paris to Vancouver were stranded in Calgary when the Zoom plane stopped to refuel.
According to reports from Canada, the fuel supplier refused to give any aviation diesel to Zoom because of unpaid bills while the leasing company detained the plane because of money owed.
But Zoom spokesman Ramsay Smith said flights would continue as normal in the days and weeks ahead. He refused to discuss allegations of unpaid debts.
A BAA official said: "BAA Glasgow has been instructed by the Civil Aviation Authority to detain a Zoom Airlines Boeing 757 for the non-payment of charges to Eurocontrol, the European organisation for the Safety of Air Navigation, and NATS, the air traffic services provider."
** Cover for this airline under IPP's policies was withdrawn for this airline on 2nd June 2008
28 August 2008
Halted airliner strands dozens
News reports state that plans for dozens of air travellers were dashed Wednesday night when a charter flight bound for the United Kingdom was grounded at the Calgary airport after the company that owns the aircraft terminated its lease with Zoom Airlines because of unpaid bills.
The 69 passengers were booked on the Boeing 767 flight to Glasgow and London's Gatwick airport Wednesday night. But they were stranded and left clamouring for information at the Zoom check-in desk, after being told the aircraft was "no longer available."
Calgary Airport Authority spokesman Bryce Paton said the flight arrived in Calgary from Paris Wednesday afternoon and was expected to continue on to Vancouver when it was grounded.
"It's an aircraft that Zoom had leased and the company that owns the aircraft has terminated their lease agreement with Zoom," Paton said.
The registration documents were to be surrendered to Transport Canada.
When the plane landed, the fuel supplier also told the airline it wouldn't refuel the aircraft because of outstanding debt.
** Cover for this airline under IPP's policies was withdrawn for this airline on 2nd June 2008
28 August 2008
China Eastern loss
News reports state that China Eastern Airlines posted a net loss of CNY212.5 million ($31 million) in the 2008 first half, narrowed from a CNY305.6 million deficit in the prior-year period, on a 6.6% lift in operating revenue to CNY20.31 billion.
Operating expenses jumped 10.52% to CNY21.94 billion, triggered by a 22.8% surge in fuel expenses to CNY8.57 billion. A currency exchange gain of CNY1.95 billion, more than double that reported in the year-ago semester, helped offset "declining domestic market demand" and high fuel prices that still impacted the result significantly.
Passenger traffic grew 0.2% year-over-year to 26.56 billion RPKs on a 0.6% increase in capacity to 37.35 billion ASKs, producing a load factor of 71.1%, down 0.3 point. Passenger boardings decreased 1.2% to 18.1 million.
28 August 2008
Air China's operating loss
News reports state that Air China's first-half net income fell 20.7% to CNY1.24 billion ($180.8 million) on surging oil prices and softening traffic resulting from May's Sichuan earthquake and heightened security surrounding the recently completed Olympics.
The company reported an operating loss of CNY336 million, a significant reversal from the CNY1.37 billion earned in the year-ago semester. The carrier remained in the black thanks to currency gains of CNY1.92 billion as the stronger yuan reduced the value of its US dollar-dominated debt.
First-half operating revenue rose 9.8% year-over-year to CNY25.65 billion while expenses jumped 18.2% to CNY25.98 billion as fuel costs increased 31.9% to CNY10.61 billion. Passenger boardings declined 1.5% to 17.6 million and load factor fell 0.8 point to 75.1%.
25 August 2008
Air Fiji in turbulence
News reports state that AIR Fiji grounded most of its aircraft on Saturday leaving many weekend travellers stranded in airports in Nadi.
And the company itself appears to have disappeared as our attempts all day yesterday to get a comment remained unanswered.
A passenger who spoke to Fiji Daily Post on condition of anonymity said the airline was making matters worse by not answering to its customers’ concerns.
“Even under normal circumstances, it takes time for their phones to answer our querries,” he said.
The airline’s operations centre on Saturday said attributed the ground of its aircraft to some technical problems and there was assurance that services would resume by tomorrow.
The company has been plagued recently by the skyrocketing price of fuel and problems relating to a 15 per cent pay cut for its workers.
22 August 2008
** AiRUnion - financial problems impact operations
News reports state that Russian airline alliance AiRUnion is facing significant financial troubles and having trouble paying its bills, to the point where aircraft at Moscow Domodedovo, which controls fuel distribution, are not being fueled on time.
"There are some open bills," a source close to the carrier confirmed, adding that discussions about the future of the five-carrier alliance are intensifying between the Russian government and AiRUnion CEO Boris Abramovich and President Alexander Abramovich. "The company is transforming from an old to a new system, and the old system can no longer exist," the source said. More news is expected next week.
AiRUnion comprises KrasAir, Domodedovo Airlines, Samara Airlines, Omskavia and Sibaviatrans. Just a few months ago it was planning to operate under one AOC and join Star Alliance. The Abramovich brothers own AiRUnion's largest constituent, KrasAir, which the source confirmed is carrying significant debt. Russian media have reported that AiRUnion is up to €675 million ($995.4 million) in debt.
Yesterday at DME, several thousand passengers experienced hours of delays while AiRUnion aircraft waited to be refueled. The Russian government finally agreed to supply 3,600 tons of kerosene.
Operating a fleet largely composed of Russian-built aircraft along with several Boeing types, AiRUnion is Russia's third-largest carrier and transported 3.7 million passengers in 2007. It signed an MOU last year to develop a strategic partnership with Lufthansa.
** In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
21 August 2008
IATA's Bisignani: 'We are in the perfect storm'
News reports state that "We are a fragile industry and we are in crisis; wait and see is no longer an option," was yesterday's assessment from IATA DG and CEO Giovanni Bisignani, who was addressing the Australian National Aviation Press Club in Sydney.
He claimed that despite the recent reduction in oil prices, commercial aviation remains in need of assistance. "We are in the perfect storm of uncontrollable fuel costs and falling demand. Airlines could lose as much as $6.1 billion this year. Already 25 airlines in our financial system have gone bust--greater than immediately following 9/11--and we are bracing for more," he told the gathering.
Bisignani warned that June cargo carriage dropped 0.8% year-over-year while passenger growth slowed to 3.8%, or half of last year's figure of 7.4%. He warned that the "unstable geopolitical system in Russia and the Middle East could easily send oil prices skyrocketing again."
He lauded the industry for its $5.6 billion profit in 2007, the first after six years of losses that topped a combined $40 billion. He said airlines have worked hard to reduce sales and marketing costs by 25%, improve fuel efficiency 19% and drop nonfuel unit costs 18%. But the result of all that work was a margin of only 1.1%.
He blasted governments for thinking "green" and seeing cash and not using the taxes to help the industry reduce emissions. He cited the UK's Air Passenger Duty that collected £2 billion ($3.72 billion) last year, a sum slightly more than aviation's climate change costs. "The government now plans to change the name and collect even more--£3.6 billion by 2012. And none will go to helping the industry's emissions goals," he said.
20 August 2008
China Southern plunges to big first-half loss
News reports state that China Southern Airlines posted a net loss of CNY1.17 billion ($169.7 million) in the first six months of 2008, a significant reversal from the CNY62 million earned in the year-ago period.
Operating revenue climbed 9.1% year-over-year to CNY26.78 billion against a 14% increase in operating expenses to CNY28 billion. CZ cited "various unfavourable factors including the US subprime mortgage crisis, ballooning inflation, stringent [domestic] monetary policies and natural disasters" as causes for the slower-than-expected market demand that impacted its results.
Domestic traffic grew 6.8% to 33.72 billion RPKs on a 5.1% increase in capacity to 44.9 billion ASKs, producing a load factor of 75.1%, up 1.2 points. Hong Kong and Macau traffic dipped 7.9% to 548 million RPKS on a 6.9% fall in capacity to 888 million ASKs. Load factor slipped 0.7 point to 61.7%. International traffic climbed 10.8% to 6.23 billion RPKs on an 8.5% lift in capacity to 9.65 billion ASKs, raising load factor 1.3 points to 64.6%. Passenger boardings increased 5.7% to 28 million and cargo volume rose 6.2% to 428,000 tonnes.
Looking ahead, CZ Chairman Liu Shao Yong expects the carrier "to undergo a long period of hardship" owing to the combined burdens of "insufficient market demand, fierce competition and high oil prices."
19 August 2008
Mesa Air Group loss
News reports state that Low-cost airline Mesa Air Group Inc. said it swung to a third-quarter net loss of $3.6 million, or 14 cents as share, from a profit of $2.6 million, or 8 cents a share, in the year-earlier quarter. Excluding one-time items, the carrier posted an adjusted loss of 9 cents a share compared to an adjusted profit of 21 cents a share in the year-ago period. Operating revenue climbed 5% to $351 million. The load factor, a measure of how full an airline's planes are, fell to 77% from 80%.
15 August 2008
El Al second quarter loss
News reports state that El Al recorded a second-quarter net loss of $11.2 million, reversed from a $16.6 million profit in the year-ago period, as rising fuel costs mitigated record revenue. "During the second quarter, El Al faced the challenge of the international crisis in aviation," President Haim Romano said. "Fuel prices continued to soar, by about 80% [year-over-year] . . . During the quarter, the fuel component represented close to 40% of flight expenses and resulted in a significant growth in company expenditure." He added that the Israeli flag carrier faces "ever increasing completion. . . characterized by the increase in seating capacity offered by foreign carriers."
Operating revenue climbed 23% to $557 million, its highest-ever second-quarter total. It credited a 26% lift in passenger revenue "as well as other revenue increases such as duty-free sales and from providing maintenance services to outside companies." Operating loss was $17.7 million, reversed from a $27.1 million operating profit in the year-ago period.
15 August 2008
SAS sinks to heavy second-quarter loss
News reports state that SAS Group reported a SEK411 million second-quarter loss, reversed from a SEK607 million profit in the year-ago period, and announced enhancements to its Profit 2008 recovery program featuring an additional SEK400 million in savings and the grounding of seven more aircraft.
"The reasons for the decrease in earnings are well known," President and CEO Mats Jansson said. "Managing this highly challenging situation is currently the primary focus of the SAS Group and the entire air travel industry."
15 August 2008
Korean posts $278 million loss
News reports stat that Korean Air reported a second-quarter loss of KRW288.9 billion ($278 million), widened from a KRW214.4 loss in the year-ago quarter, as costs escalated faster than rising revenue.
"Fuel expenses showed a sharp increase of 80.4% triggered by a soaring fuel price and a weakening Korean won," KE said, adding that a "weaker economic backdrop" slowed traffic growth, particularly in the international passenger sector.
Operating revenue rose 17.5% to KRW2.48 trillion including flat domestic growth, a 16.5% international passenger lift and a 28.4% boost in the cargo sector. Operating expenses, however, jumped 27.6% to KRW2.6 trillion, producing an operating loss of KRW116.4 billion, reversed from an operating profit of KRW75.4 billion in the year-ago quarter.
14 August 2008
Gol Airlines loss
News reports state that Gol blames fuel costs, VRG consolidation for big second-quarter loss
Gol and VRG parent Gol Linhas Aereas Inteligentes reported a second-quarter net loss of BRL171.7 million ($106.4 million), widened from a BRL35.4 million loss in the year-ago quarter, as it consolidated Gol and VRG's flight networks during the three-month period and contended with rising fuel costs.
14 August 2008
Thai Airways financial Loss
News reports state that Thai Airways posted a THB9.25 billion ($272.3 million) loss in the second quarter, widened from a THB430 million deficit in the year-ago period, on fuel costs and foreign exchange losses, according to a company statement cited by Reuters.
8 August 2008
JAL posts first-quarter loss
News reporst state that Japan Airlines Group posted a net loss for its fiscal first quarter ended June 30 of ¥3.4 billion ($31.3 million), narrowed from a ¥4.3 billion deficit in the prior-year period, and unveiled the biggest review of its network since 2002 to mitigate the rising cost of fuel.
The earnings result, while an improvement year-over-year, marked JAL's fifth consecutive first-quarter loss. It said that from Oct. 1 it will make major network changes, lifting capacity on high-growth, profitable flights such as those between Japan and Seoul, Shanghai and Hanoi. But it will suspend services on at least three underperforming international routes including Osaka-London Heathrow.
It also will downsize aircraft on a number of international routes and operate fewer frequencies on 12 domestic routes. It will cut five domestic routes altogether. JAL said it will make alterations to its cargo network including suspending routes and lowering frequencies where it believes revenue is waning.
The airline already has been undergoing something of a restructuring and the narrowed first-quarter loss was partly attributable to slashed jobs, reduced bonuses and lower retirement benefits.
7 August 2008
LOT Polish Airlines warns of cash crisis
News reports state that LOT Polish Airlines said this week that it will need to restructure as quickly as possible to avoid a cash crisis.
LOT has gone through five CEOs in the last five years under changing Polish governments, hindering its ability to make long-term strategic decisions over the period. "It is a wonder that this company still exists," a carrier executive told this website.
The government controls 68% of LOT and wants to float its stake in early 2009. CEO Dariusz Nowak has said the restructuring is aimed at returning the airline to an operating profit by the end of 2010. A plan is expected to be unveiled officially by the end of this month and is likely to include cutting costs and unprofitable routes.
6 August 2008
Chinese carriers look for new financing as market deteriorates
News reports state that Chinese carriers are struggling with the financial strain imposed by declining domestic demand and surging fuel costs and have turned to new financing in an effort to reduce the burden.
In order to replenish working capital and alleviate debt, Hainan Airlines announced it will circulate CNY2.7 billion ($393.5 million) in corporate bonds while China Southern Airlines plans to circulate CNY8 billion worth of commercial paper and CNY1.5 billion in medium-term notes to increase cash flow. Air China was approved to circulate an additional 400 million A shares that will be worth CNY4 billion based on the current share price. It noted that it will take CNY1.5 billion as working capital while the rest will fund its acquisition of 15 787s, 24 A320s and 15 737s.
Industry analysts have pointed out that airlines can overcome short-term financial difficulties through these initiatives but that they will do little to sustain their long-term growth unless the domestic market recovers.
5 August 2008
Royal Jordanian reports net loss
News reports state that Royal Jordanian reported a net loss of "around" JOD3.1 million ($4.4 million) in the first half of 2008, widened from a deficit of JOD1.9 million in the year-ago semester. It said the result was "much better than the losses estimated in the budget. . .despite the soaring jet fuel prices that the company had to pay for this year." Operating revenue rose 33% year-on-year to JOD315 million on a 21% increase in passengers to 1.2 million. RJ credited its "efforts to market sales, improve product and offer distinguished onboard services" for the increase. Load factor gained 5 points to 71%.
Operating expenses increased 37% to JOD316 million owing mainly to the jump in jet fuel costs, which soared 91% to JOD131 million. Fuel now comprises 42% of operating costs, up 12 points from the year-ago period. RJ is 30% hedged for 2008 and 2009. Cargo volume grew 21% and freight revenue rose 23.5% to JOD21 million. The carrier serves 55 destinations with a fleet of 27 aircraft.
5 August 2008
Asiana swings to quarterly loss
News reports state that Asiana Airlines suffered a KRW19.2 billion ($18.9 million) loss in the second quarter, reversed from a KRW38 billion profit in the year-ago period as rising fuel costs proved decisive.
Gross revenue rose 20.8% year-over-year to KRW1.04 trillion but operating expenses climbed 30.2% to KRW919.8 billion. Operating income fell to a KRW17.9 billion loss from a KRW20.6 billion profit in the second quarter of 2007.
1 August 2008
AirTran Holdings reports second quarter results
News reports state that AirTran Holdings reported a net loss of USD13.5 million or USD0.12 per diluted share for the second quarter. During the same quarter in 2007, AirTran reported net income of USD42.1 million or USD 0.42 per diluted share.
1 August 2008
BA Chief warns "airlines will go bust"
News reports state that more airlines will go bankrupt this year as rising fuel costs and weak consumer confidence ravage the industry, the chief executive of British Airways warned today.
Willie Walsh said carriers that struggled to make a profit during the recent sales boom will not survive the "worst ever" trading environment the industry has seen. The downturn has put 25 airlines out of business this year, including Luton-based business carrier Silverjet.
"You are going to see more airlines go bust. If you look around there are a lot of airlines out there that have not been profitable in the past few years. Those guys will not survive," he said.
Walsh added that fares will rise by an average of around 3% for the rest of the financial year, as BA passes on higher fuel costs to ever fewer passengers. Fares are expected to increase towards the end of the year as airlines' fuel hedges, where carriers buy their fuel in advance at a fixed cost that is often cheaper than the current market price, come to a close.
"As hedging unwinds within the industry, airlines are going to have to reflect the higher oil price. We will have to do something and it's not just BA that will have to adjust prices. The whole industry will have to. We are not reflecting the spot price [of oil] today. What is reflected in our fares is the oil price net of hedging." Higher fuel surcharges are also an option, but BA has already increased those significantly this year.
Walsh said BA is now planning for an oil price of up to $150 (£76) per barrel - a level at which no carrier in the world can make a profit currently. The BA chief executive, who announced an 88% dive in first quarter profits today due to high oil prices, said the re-fashioned BA will have more fuel-efficient aircraft, better customer service and be focused on long-haul business class customers.
"We are honest and realistic about this in a way that a lot of airlines are not. We have asked ourselves the question of what does the industry look like at $150 per barrel and what do we do to be one of the airlines that succeeds in that environment. We don't just want to hang in there."
Walsh did not rule out further capacity cuts next summer, adding that BA will fly its older long-haul planes less often next year in order to cut fuel bill that now stands at £8m per day. "We are not talking about grounding aircraft but the average utilisation will come down slightly."
30 July 2008
AirTran sinks to $13.5 million second-quarter loss
News reports state that AirTran Airways parent AirTran Holdings reported a net loss of $13.5 million for the second quarter, reversed from a profit of $42.1 million in the year-ago period, saying the "loss is primarily attributable to the effects of record high fuel costs."
28 July 2008
** Trade Winds Airlines files for Chapter 11
News reports state that TradeWinds Airlines announced Monday that it has filed for Chapter 11 bankruptcy protection, citing "a perfect storm" of adverse market conditions and what it called failed financial commitments.
Based on events leading up to filing Friday in the Southern District of Florida, the case could become even more stormy.
It involves an airline that has a long and troubled history in the Triad, including two earlier flights into bankruptcy.
In a statement Monday, the Gate City-based cargo aviation company said it had been beset by high fuel costs, decreased business, increased competition and a shortage of working capital.
The company said it will continue to operate during the court reorganization, adding that it would consider a sale or "an internal restructuring which will result in a smaller but sounder business."
Court filings indicate TradeWinds has assets of between $1 million and $10 million, liabilities of between $10 million and $50 million and more than 430 creditors.
Earlier this year, the company had about 200 employees, leased five 747s, owned six A-300s and flew routes within the U.S., and to Asia, South America, Europe, the Caribbean and China.
Scott L. Baena, a Miami lawyer representing the company, said TradeWinds went through a restructuring in February that involved refinancing of its existing debt.
At that time, Birmingham, Ala., businessman, Donald V. Watkins, acquired 77 percent of TradeWinds.
** In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
25 July 2008
Aerocalifornia services suspended
News reports state that Aerocalifornia was suspended again by the Ministry of transport and communicatios of Mexico on 23 July 2008 because of unpayed debts the airline has with airports with a sum of USD$25,900,000. The ministry said they will allow the airline to fly again when the money is paid.
23 July 2008
JetBlue loses $7 million, cancels 2008-09 growth
News reports state that Jet Blue Airways unveiled plans to cancel growth plans and defer aircraft deliveries as it announced a second-quarter net loss of $7 million, reversed from a $21 million profit in the year-ago period.
CEO Dave Barger said the LCC enjoyed "strong unit revenue growth" during the quarter and that summer bookings showed "continued strength," but that like its US counterparts it is facing an environment in which "revenue gains are clearly not keeping pace with the extraordinary increase in the price of jet fuel."
17 July 2008
Report Predicts Airline Bankruptcies, Liquidation in 2009
News reports state that a report released Tuesday by Fitch Ratings on the country's top airlines states that numerous layoffs, grounded flights and price increases, in addition to various cost-cutting measures, may not be enough to aid the struggling airline industry from the escalating effects of high oil prices, CNN reports. The report warns that record fuel costs, as well as meager cash flow, may instigate "multiple bankruptcies and liquidation" for major U.S. airlines in 2009 and that recent economic changes by carriers "are not sufficient to counter the devastating impact of jet fuel prices."
The report was released about a year after many major U.S airline companies– such as United Airlines, Delta Air Lines and Northwest Airlines– rose out of bankruptcy protection (as recently as June 2007), and warns that the current situation may be more crippling than the industry's previous financial crisis.
Recent bankruptcies in the industry have remained limited to small carriers such as Aloha Airlines, ATA and Skybus. Yet the report warns that, come the usual drop in air travel in the fall, larger airlines may begin to experience the same tragedy, especially as a sustained economic slump continues to drive more passengers away.
"After Labor Day ... all the U.S. legacy carriers will see a rapid erosion of cash levels that could threaten their survival in 2009 if adverse fuel trends continue," wrote William Warlick, a senior director at Fitch and author of the report.
12 July 2008
Airline stocks in tailspin over new record-high oil price
News reports state that a new record high for benchmark oil prices sent airline shares spiraling downward. At last check, the Amex Airline Index had shed 3.4% to 14.31 points with all of its 14 components trading down. Crude for August delivery was up $4.85 to $146.50 a barrel on the New York Mercantile Exchange. Earlier it rallied to an all-time high of $146.90 a barrel in electronic trading on Globex. Network carriers were plunging.
2 July 2008
FlyYeti to suspend operations
News reports state that FlyYeti.com, the low-cost joint venture between Air Arabia and Yeti Airlines operating out of Kathmandu, will suspend operations on July 16 owing to what it called "difficult operating conditions in Nepal and a presently opaque regulatory environment" and political conditions that made it impossible to guarantee the renewal of aircraft operating leases that expire this month.
30 June 2008
Fed Court race to decide airline's future
News reports state that the immediate future of Cairns-based independent airline Aero Tropics is teetering on the outcome of a race to the Federal Court after its operations were grounded for safety reasons on Friday.
Company plans to have its operating license reinstated today will not go ahead after Civil Aviation Safety Authority (CASA) spokesperson Peter Gibson confirmed a Federal Court application to extend the suspension for up to 40 days will not be lodged until later this week.
30 June 2008
East Star faces 'financial crisis,' loses route authority
News reports state that struggling Wuhan-based East Star Airlines, which claimed it is in "financial crisis," last week was dealt a further blow by CAAC, which decided to suspend its right to fly to Guangzhou and Shenzhen from July 7.
This makes the second time ESA has faced such a sanction. Flights to Shanghai were suspended by the regulator last month owing to the airline's inability to submit its "air transport funds" to CAAC in time.
An ESA insider recently was quoted in Chinese media claiming the airline might cease operations this month because of its "financial burden." It owed approximately CNY100 million ($14.6 million) to China Aviation Oil Import and Export Co., the main domestic oil supplier to Chinese carriers. Following those reports, the oil company agreed to postpone ESA's payment by one month to June 28.
ESA spokesperson Pan Yanli admitted the airline faces "some severe difficulties," including financial problems and a talent shortage. "We do suffer from financial strain but we are trying our best to solve it," she said, adding that "going listed in order to collect funds" is a possible solution.
25 June 2008
Jet Airways swings to full-year, fourth-quarter losses
News reports state that a significant swing to the red in its fiscal fourth quarter ended March 31 helped drag India's Jet Airways to a full-year loss of INR2.53 billion ($58.9 million), a reversal from the INR280 million profit it reported in the year ended March 31, 2007, and its JetLite subsidiary suffered even heavier losses.
"Over the past few months, the aviation industry worldwide has been facing the effects of continuing increases in crude oil prices," Jet said. "The situation in India is further exacerbated by continuing overcapacity as well as the fact that the operating costs in the Indian environment have always been higher than other comparable countries."
21 June 2008
Sudan Airways grounded
News reporst state that Sudan is to ground its national airline, Sudan Airways from 23rd June, stating that the airline does not meet international standards.
"This decision will come into force on Monday for an undefined period and will include both domestic and international flights," said the official from the Sudanese Civil Aviation Authority.
The Sudanese CAA Director of Safety said Sudan Airways had failed to take measures requested by the Civil Aviation Authority in May of this year.
17 June 2008
Increased first quarter losses for America's seven largest airlines
News Reports state that America's seven largest airlines reported a combined first-quarter loss of $1.32 billion, according data released Monday by The U.S. Bureau of Transportation Statistics
16 June 2008
Mexico Government Suspends Airline Magnicharters
News reports state that Mexico's Communications and Transport Ministry suspended budget airline Magnicharters Tuesday, saying the carrier was unable to guarantee passenger safety.
The ministry said in a statement that the airline has 90 days to correct the problems detected, in which case it could then resume operations.
The suspension went into effect at 5 p.m. local time (6 p.m. EDT).
The ministry said routine inspections by civil aviation authorities turned up anomalies in maintenance and training of staff.
The company was also found to be in a difficult financial situation, which limits its possibilities of maintaining a healthy and sustainable operation, the ministry added.
13 June 2008
Rescue deal collapses for British airline Silverjet
News reports state that a takeover deal to rescue small British business-class airline Silverjet has collapsed, resulting in the loss of 300 jobs, administrators said Friday.
Kingplace, an Ireland-based company managed by Heritage Cie SA, a Geneva-based investment firm, had agreed Wednesday to buy Silverjet for an undisclosed price.
"We now understand that, as a result of the unusually complex negotiations with third parties, Kingplace is no longer in a position to acquire Silverjet as a going concern," administrators Begbies Traynor said in a statement on Friday, when the Swiss deal was due to complete.
"As a consequence, we have today had to make the entire workforce formally redundant, in line with our legal obligations as administrator."
The failed airline's 300 employees were made redundant earlier Friday, according to a spokesman for the administrator.
Silverjet was grounded in May after it failed to secure fresh financing from United Arab Emirates investment fund Viceroy Holdings.
11 June 2008
Kingplace Agrees to Buy Silverjet Airline From Administrators
News reports state that Kingplace Ltd., a company managed by Swiss trust Heritage Cie SA, has agreed to buy Silverjet Plc out of administration and restart the airline.
The sale was for an undisclosed sum and is expected to be completed by June 13, administrators Nigel Atkinson and Mark Fry of Begbies Traynor, and Silverjet, said in an e-mailed statement today.
All tickets will be honored and flights may be resumed within ``weeks,'' Ian Ilsley, chairman of Heritage and a director of Kingplace, said in the statement.
* Cover for this airline will still remain excluded until the sale has fully completed and we have completed a full re-evaluation of this airline
11 June 2008
Oil costs will push some Asian airlines under: analysts
News reports state that Record-high oil prices have sparked the biggest crisis in the Asian airline industry since the SARS scare, and analysts say some carriers are likely to go under if prices do not let up soon.
They say many of the region's airlines are ill-prepared to cope with the price surge, which saw oil top 139 dollars per barrel last week amid wide expectation prices will only keep rising in the months ahead.
"No one is going to escape this crisis unscathed," said Derek Sabudin, an analyst from the Sydney-based Centre for Asia Pacific Aviation consultancy.
He said airlines face a "severe shakeout" if extremely high fuel prices continue, with the industry already coping with the fallout from a US-led global economic slowdown.
"Carriers will be exiting the market," Sabudin said. "The weaker ones will go, and stronger carriers will shrink in size, if we see prices where they are above 120 dollars beyond the summer peak."
Shukor Yusof, an aviation analyst with Standard and Poor's Equity Research, said most carriers had not factored in prices at such "stratospheric" levels -- and that they were now not moving quickly enough in response.
"Few Asian airlines are reacting, in our view, adequately and aggressively enough to the oil shock and the devastation soon to follow," Shukor said.
If prices continue rising and hit 150 dollars a barrel or even higher, he said, "expect to see a rash of Asian carriers grounded and go bust."
4 June 2008
Icelandair increased loss
News reports state that Icelandair reported a ISK1.7 billion ($22.6 million) loss in the "normally negative" first quarter, deepened from a ISK1.2 billion loss in the first three months of 2007.
2 June 2008
ZOOM
As from 2nd June 2008 cover for ZOOM Airlines will be excluded for policies issued on or after this date
30 May 2008
** ALMOST 10,000 PASSENGERS HIT BY SILVERJET GROUNDING
New reports state that almost 10,000 passengers have been affected by Silverjet ceasing operations this morning.
The Civil Aviation Authority estimates that 7,000 UK and 2,500 overseas passengers have bookings with the business class carrier.
The CAA today issued advice to passengers due to fly with the airline to Newark or Dubai.
** Cover for this airline was excluded for all policies and tickets issued on and after 23rd May 2008
30 May 2008
SilverJet stops operations as of 30th May 2008
News reports state that SilverJet halted operations, a week after it had said it had yet to get a $5 million loan from a Middle East investment group. Silverjet said it continues to be in discussions with investors interested in supporting the business, however it has yet to conclude such discussions to its satisfaction. The last service of Silverjet was the flight from Dubai to London Luton, which departed at 7.30 a.m. BST Friday morning.
29 May 2008
El Al's first-quarter loss triples
News reports state that record revenue was not enough to offset a difficult economic environment and a one-time provision related to potential liability for anticompetitive cargo activities as El Al sank to a $49.9 million first-quarter loss that was more than three times the $15.3 million lost in the year-ago period.
27 May 2008
Club Air, Italian ENAC license suspended
News reports state that Club Air, Italian ENAC license has been suspended. Flights stopped as from May, 28th
(WAPA) - ENAC (Italian Civil Aviation Authority), has informed that as from next May, 28th, it will suspend all flights operated by Club Air, the Italian airline based in Verona which connects many national airports as Rome-Fiumicino, Milan-Malpensa, Verona, Catania, Foggia, Bari, Lamezia Terme, Cagliari and Palermo.
The decision, came after 2 respites (January, 31th and March, 31th 2008) and the temporary release of a license on July, 25th, 2007, has been motivated by ENAC with the missing discharge of the required engagements for the financial and operative reorganization of the airline.
ENAC communicated that "There're no necessary conditions to extend the airline's license because of the critical financial and management state of the company".
23 May 2008
SilverJet shares suspended after if did not received loan
News reports state that business class Airline SilverJet said Friday that it asked the London Stock Exchange to suspend trading in its shares after it didn't receive cash it had tried to draw down under a loan facility. The group said its Silverjet Aviation arm served notice to draw down $5 million under a loan facility with Viceroy Holdings on May 2, but hasn't received the money. "Silverjet's working capital reserves are limited and advances under the loan facility are required as a matter of urgency," the company said. "Silverjet continues discussions with other parties, which have confirmed an interest in investing in the company," it added. In the meantime, the company's service are continuing to run as scheduled.
* Under the terms of IPP's Insurance cover is now excluded for this airline with immediate effect
22 May 2008
Warning of oil crunch, oil soars to new record prices
News reports state that Oil prices surged $5 to a record over $134 a barrel on Wednesday after a U.S. government report showed a surprise drop in crude stockpiles, reinvigorating fears of a supply crunch.
21 May 2008
Martinair suffered a €68.9 million ($107.2 million) loss in 2007
News reports state that Martinair suffered a €68.9 million ($107.2 million) loss in 2007, a steep fall from its €7 million deficit in 2006 on level revenue of €951 million, as operating loss deepened to €71 million from €5 million.
The Dutch carrier said one-off costs associated with the renewal of its cargo fleet and the discontinuation of European passenger flights last year, along with a provision set aside to deal with the multinational investigation into airfreight price fixing, "brought considerable pressure to bear upon results."
21 May 2008
Aegean Airlines' net loss widened to €4.4 million
News reports state that Aegean Airlines' net loss widened to €4.4 million ($6.8 million) in the first quarter, traditionally its weakest period, from €2.6 million in the year-ago quarter.
Revenue climbed 23% to €98.8 million on the back of international network expansion and a 6% rise in sectors flown. Fuel costs jumped 57% to €24.4 million and operating loss plunged to €6 million from €2.6 million.
"Aegean continued to expand its business during Q1, amid challenging conditions for the airline sector created by the rise of oil prices to unprecedented levels," MD Dimitris Gerogiannis commented. "We are encouraged by the continuing positive maturing of international destinations initiated within the last two years as well as from the results of our revenue management efforts."
16 May 2008
Vueling Airlines posted a pre-tax loss
News reports state that Vueling Airlines posted a pre-tax loss of €32.4 million ($50.1 million) for the first quarter, a 47.1% increase over a €22 million pre-tax loss in the year-ago period.
15 May 2008
Mesa Air shutting down Air Midwest early
News reports state that struggling Mesa Air Group is accelerating the shutdown of its Air Midwest subsidiary, announcing Wednesday that the carrier serving rural communities will suspend all flights by June 30.
The Phoenix-based company, which is short on cash from a legal judgment and losses in its operations, cited high fuel prices and low demand for the flights. In Arizona, the affected cities are Prescott and Kingman, where service will end May 31 instead of August as previously announced.
Air Midwest, operating there as US Airways Express, serves Phoenix and Las Vegas from those cities.
15 May 2008
Struggling Alitalia reports €214.8 million first-quarter loss
News reports state that Alitalia reported a first-quarter pre-tax loss of €214.8 million ($333.1 million), 41% higher than the €152 million pre-tax loss in the year-ago period, citing higher fuel costs and lower traffic revenue as the main culprits.
15 May 2008
Iberia swings to first-quarter net loss on high fuel costs
News reports state that Iberia Group said it its first-quarter results were "dulled" by sharp hikes in the price of fuel, resulting in a net loss of €441,000 ($684,000), reversed from a profit of €12.3 million in the year-ago period.
13 May 2008
Far Eastern Airlines Suspends Operation
News reports state that having run out of operating fund, Far Eastern Air Transport has announced suspending its operation starting today (May 12).
To settle the ensuing problems, the airlines will continue maintaining limited flight services today, thanks to fuel oil lent by CPC Corp. Taiwan, an arrangement made following a marathon emergent coordination meeting convened by Civil Aeronautics Administration, under the Ministry of Transportation and Communications.
The company will operate nine flights today, including three for the Taipei-Matsu route and nine international flights, the latter of which mainly for transporting their 2,000 overseas passengers back to Taiwan.
Large number of sold plane tickets will become invalid, amounting to 56,800 domestic-flight tickets and 22,200 international-flight tickets, totaling NT$173 million in value, as of the end of April.
The suspension of operation of the airline has sent a shockwave among travel agencies and its creditor banks, including Bank of Taiwan, Mega Bank, and King`s Town Bank, and Far Eastern Bank. The banking loans topped NT$4.1 billion. Mega Bank reported that it owned priority claim for its loans for the airlines and would dispose of the latter`s properties to settle the debt. Far Eastern Bank, the largest creditor bank with NT$980 million of debt claim, pointed out that it might abandon its previous application with the court to serve as the executor for the restructuring of the airlines, since the suspension of operation will lead to loss of fund and personnel, making it impossible to carry out the restructuring program. The airline is thus facing the fate of liquidation.
12 May 2008
Austrian Airlines Group reports steep first quarter loss
News reports state that Austrian Airlines Group CEO Alfred Oetsch, under significant pressure following a steep first-quarter loss and the potential loss of a critical new investor (ATWOnline, May 7), told Austria's ORF radio last week that a shift from the airline's "standalone" strategy has become a possibility and that it now will consider partnering with a foreign carrier. "If no signs of improvement in the financial situation are on the horizon, a solution could be to bring in a strategic partner carrier," he said.
9 May 2008
EuroManx stops flying
EuroMax Airlines website stated today "It is with great regret that EuroManx have announced today that the company is ceasing operations forthwith with no further flights being operated." News reports state that Euromanx went out of business blaming fuel prices and falling passenger numbers.
9 May 2008
Air Canada posts C$288 million loss
News reports state that Air Canada reported a first-quarter net loss of C$288 million ($287 million), a substantial increase over a C$34 million loss in the year-ago period, blaming high fuel costs and charges associated with ongoing inquiries into potential antitrust violations in its cargo division.
7 May 2008
ExpressJet Holdings reports first quarter loss
News reports state that ExpressJet Holdings, which flies for partners Continental Airlines and Delta Air Lines as well as its own branded operation, reported a $31.3 million first-quarter loss, reversed from a $10.2 million profit in the first three months of 2007
6 May 2008
Airline stocks fall sharly, price of oil hits all time record
News reports state that airline stocks fell sharply Monday as oil prices topped $120 a barrel for the first time.
The Amex Airline Index fell 2.8 percent to 23.59 in late morning trading. The broader market eased more modestly, with the Dow Jones industrial average down 0.6 percent to 12,979.63.
Oil prices hit their latest record amid concerns about overseas supply and a falling dollar. Light, sweet crude for June delivery rose to a new trading record of $120.21 a barrel on the New York Mercantile Exchange, then retreated to trade up $3.52 at $119.84.
Airline shares often move opposite oil prices because fuel represents many carriers' biggest expense.
5 May 2008
China Airlines, EVA Airways report big first-quarter losses
News reports state that Taiwanese carriers China Airlines and EVA Airways reported first-quarter losses of TWD2.97 billion ($97.4 million) and TWD2.29 billion respectively.
The airlines, which reported the results in filings with the Taiwan Stock Exchange cited by Bloomberg News, each blamed high fuel costs for the poor results.
4 May 2008
Sri Lanka's budget airline grounded
News reports state that Sri Lanka's state-run budget carrier has suspended operations indefinitely because of a lack of planes, an aviation official said Sunday.
The budget airline, Mihin Lanka, has been dogged with financial trouble since it began commercial operations last April.
2 May 2008
Pakistan International Airlines loss for 2007
News reports state that Pakistan International Airlines concluded an "exceptionally difficult" 2007, during which it was blacklisted by the European Union, with a PKR13.4 billion ($207.5 million) loss, widened slightly from the PKR12.76 billion loss suffered in 2006.
PIA said it "experienced a series of financial, operational and marketing problems" and that with its "brand severely dented, [it] lost market share as well as growth in business which made the situation still more difficult."
2 May 2008
Gol reports first quarter loss
News reports state that Gol reported a first-quarter net loss of BRL3.5 million ($2.1 million), reversed from a profit of BRL116.6 million in the year-ago period, as last year's acquisition of Varig and its subsequent integration with Gol weighed heavily and led to sinking load factors.
2 May 2008
Hawaaiian first quarter loss
News reports state that Hawaiian Airlines parent Hawaiian Holdings reported a $19.9 million loss in the first quarter, widened from an $11.9 million deficit in the year-ago period, but its prospects have brightened somewhat owing to events that have transpired since the quarter's conclusion.
30 April 2008
SAS suffers heavy first-quarter loss, announces capacity, job cuts
News reports state that fuel costs, overcapacity and falling yields hit SAS Group hard in the first quarter, resulting in a SEK1.13 billion ($189.5 million) loss that represented a massive deterioration from the SEK47 million deficit reported in the year-ago quarter.
29 April 2008
Nationwide Airlines ceases all flights due to critical cash flow
Nationwide Airlines announced today that they have ceased all flight operations due to critical cash flow following grounding of their aircraft earlier in the year and 30% increased in fuel costs.
28 April 2008
Austrian Airlines Group suffers loss in the first quarter
News reports state that Austrian Airlines Group suffered a €60.4 million ($95.3 million) loss in the first quarter, widened from a €16.3 million deficit in the year-ago period, which prompted the company to say it expected a fall in full-year adjusted EBIT "due to the time-lagged effect of measures implemented through adjustment of fares and surcharges." Despite the "continued deterioriation in market conditions," OS has not given up on expansion.
27 April 2008
Eos Airlines Files For Bankruptcy
News reports state that Premium class New York to London carrier Eos Airlines on Saturday said it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The company said it could not close on an investment that would have carried it to corporate profitability in 2009.
The petition was filed April 26 in the U.S. Bankruptcy Court in the Southern District of New York. Eos will immediately reduce its workforce, eliminating most of its positions. The carrier will cease operations entirely after April 27.
According to Jack Williams, Eos' CEO, "After overcoming today's extremely challenging economic and credit environment to negotiate terms for a round of financing, it is regrettable that we were forced to take this action. We had been clear since closing on our last round of financing that we would need additional capital…Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome."
* In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
25 April 2008
AirTran posts a 1st quarter loss
News reports state that AirTran Holdings Inc, the parent company of AirTran Airways Inc, reported a net loss of USD34.8 million for the first quarter. During the same quarter in 2007, AirTran reported net income of USD2.2 million. AirTran stated this quarter's loss is attributable to the effects of record high fuel costs.
25 April 2008
Norwegian posts large loss
News reports state that Norwegian posted a consolidated net loss of NOK210.8 million ($42.4 million) in the first quarter, a sharp deterioration from the NOK14.9 million loss suffered in the year-ago period, owing to increased seasonality, introduction of new aircraft, the integration and expansion of the old FlyNordic and the launch of 13 routes from its new base at Rygge.
18 April 2008
Sterling improving but still in the red
News reports state that Sterling improving but still in the red
Sterling Airlines managed to reduce its full-year net loss drastically to DKK34 million ($7.2 million) in 2007, narrowed from the DKK166 million deficit it posted in the prior year.
Revenue decreased 0.8% to DKK3.89 million as average fare fell 5.2% to DKK805. Ancillary revenue per passenger, however, increased 55.4% to DKK101.
18 April 2008
Southwest suffers steep first-quarter profit drop
News reports state that Southwest suffers steep first-quarter profit drop
A plunge in first-quarter profit to $34 million from the $93 million earned in the first three months of 2006 revealed both the strength of Southwest Airlines' business model and the weakness of the environment in which it now operates, as even the US's most consistently profitable airline is struggling with soaring fuel costs.
18 April 2008
Continental reports first-quarter loss
News reports state that Continental reports first-quarter loss, redeems golden share, considers leaving SkyTeam
Friday April 18, 2008
Continental Airlines reported a first-quarter net loss of $80 million, reversed from a $22 million profit in the year-ago period, and confirmed yesterday that it has redeemed Northwest Airlines' "golden share" that prevented CO from entering into merger agreements.
15 April 2008
Asian budget carriers face challenges after Oasis collapse
News reports state that soaring jet fuel prices, slowing economic growth and stiff competition could claim further casualties among Asian budget carriers following the collapse of Oasis Hong Kong Airlines last week, analysts said Monday.
The demise of Oasis just 18 months after it took to the skies shows that the shakeout in the industry is an international phenomenon and not a problem that's confined to the United States, where five airlines have recently shut down.
"We expect the negative and worsening macro environment for airlines to continue to take its toll in the form of forced capacity cuts (bankruptcies) and voluntary capacity cuts," said Morgan Stanley analyst William Greene.
"Consolidation remains the best path to improving the industry's volatile financials," he said in a note.
Oasis, one of the first budget airlines to focus on long-haul flights, collapsed last week, unable to cope with escalating jet fuel prices.
15 April 2008
Virgin blue shares plunge
News reports state that an AAP report today says that Virgin Blue Holdings Ltd shares have plunged to a record low after it forecast annual profit to halve amid rising fuel costs and tougher competition.
Toll Holdings Ltd, the airline's largest stakeholder, also took a beating as the transport giant said it too would be affected and it would not offload its holding in Virgin.
Virgin Blue shares closed down 21.62 per cent, or 24 cents, to 87 cents, hitting a record low of 86.5 cents during the day.
The airline's shares listed at $A2.25 ($NZ2.66) in December 2003.
Shares in Toll, which had been considering the sale of its Virgin stake, closed down $A1.43, or 15.08 percent, to $A8.05.
Australia's second largest airline warned, after the market closed on Friday, its net profit would be significantly lower than last financial year.
11 April 2008
Frontier Airlines files for Chapter 11 bankruptcy
News reports state that Frontier Airlines filed for Chapter 11 bankruptcy late Thursday in Manhattan.
Frontier blamed the action on an "unexpected attempt by its principal credit card processor to substantially increase a 'holdback' of customer receipts, which threatened to severely impact the airline's liquidity."
* In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
10 April 2008
** Swazi Express Airways close operations
News reports state that Managing Director Hans Steffan, addressing a press conference at the company premises here yesterday, said operations came to a halt on Friday. Steffan, 39, said he had invested over E10 million into the 12-year old company."Swazi Express Airways has ceased to operate due to unfair competition from the government," he said.
10 April 2008
More than 30,000 passengers hit by Oasis Airlines closure
News reports state that more than 30,000 passengers holding tickets valued at 300 million Hong Kong dollars (38.5 million US dollars) have been affected by the collapse of Hong Kong's first long-haul budget airline, Oasis, travel industry officials said Thursday.
The airline, which offered fares of as little as 1,000 Hong Kong dollars between London and Hong Kong, suspended all flights Wednesday after going into voluntary liquidation.
The shock news, just 18 months after the airline's launch, has left thousands of people with return tickets stranded in Hong Kong or the airline's two destinations of London and Vancouver.
Thousands more holding advance tickets have been left struggling to make alternative arrangements with no word about compensation or refunds.
9 April 2008
Oasis Hong Kong: Ceasing Airline Operations Immediately
News reports state that budget carrier Oasis Hong Kong Airlines Ltd. said Wednesday it had shut down its operations after being in service for just over 17 months.
Oasis said it had applied to Hong Kong's High Court to have its assets liquidated, and accounting firm KPMG had been appointed as provisional liquidators.
Flights were being canceled immediately, Oasis Chief Executive Stephen Miller told a news conference.
KPMG partner Edward Middleton told the news conference the liquidators were exploring the company's options.
Oasis, which offered one-way fares to London for as low as HK$1,000, had been operating four used Boeing 747-400 aircraft on flights to London and Vancouver.
The Hong Kong Economic Times reported Wednesday that Oasis had accumulated a loss of HK$1 billion since it was launched in October 2006. Oasis and KPMG didn't immediately address this issue in their news conference.
7 April 2008
Air Jamaica lost US$171 million in 2007
News reports state that AIR Jamaica lost a staggering US$171 million last year, its largest loss ever, according to an internal document shown to the Sunday Observer.
The loss came against revenues of US$413.3 million, an interest subsidy of US$44.71 million and a government grant of US$25.41 million, and continued a trend for the two previous years when the carrier bled heavily.
5 April 2008
Skybus folds
News reports state that Columbus-based airline blames high fuel prices, weak economy -- Surprised fliers find themselves stranded without notice -- 450 lose jobs; failure dims growth prospects for Port Columbus
Skybus Airlines has made its final flight.
Just over 10 months after its heralded takeoff at Port Columbus, the airline that became famous for its $10 fares said yesterday that it has quit flying as of today.
The decision, made after a board meeting yesterday, left hundreds of Skybus ticketholders stranded and its 450 employees out of work.
The company has lost millions of dollars and plans to file for Chapter 11 bankruptcy protection on Monday. Its chief executive, Bill Diffenderffer, resigned nearly two weeks ago.
Skybus workers were stunned by the news yesterday.
4 April 2008
ATA Airlines shuts down
News reports state that ATA Airlines, an independent carrier based in Indianapolis, shut down operations yesterday after filing for Chapter 11 bankruptcy protection Wednesday.
The airline, which began flying in 1973, blamed the shutdown on the loss of a military charter contract. ATA operated 29 aircraft, serving 10,000 passengers per day. Its 2,230 employees were notified that their positions had been eliminated. It is the second US carrier to shut down this week--Aloha Airlines closed up shop on Monday (ATWOnline, April 1). A third, Bloomington, Minn.-based charter carrier Champion Air, announced that it will stop flying on May 31.
3 April 2008
Alitalia Pushed Closer to Bankruptcy as Air France Ends Talks
News reports state that Alitalia SpA, which loses more than $1.6 million a day, moved closer to bankruptcy after Air France- KLM Group broke off takeover talks, scuttling a 15-month effort by Italy to find a buyer for the airline.
Air France ended the talks three hours before a midnight deadline, rejecting counter proposals by Alitalia's unions in Rome that the carrier said were ``incompatible'' with its offer. Italian Finance Minister Tommaso Padoa-Schioppa said yesterday Alitalia likely would have to seek protection from creditors if the Air France bid failed.
3 April 2008
Alitalia cover excluded
Effective immediately, cover is withdrawn for Alitalia following the withdrawal of the Air France KLM Group’s takeover bid.
As per the terms of the policy a “Threat of Insolvency” has occurred and we are no longer able to insure this airline.
Should the situation change we will, of course, advise you immediately.
31 March 2008
Aloha Airlines Halting Passenger Service
News reports state that Aloha Airlines said Sunday it will halt all passenger service after Monday, signaling the end of an airline that has served Hawaii for more than 60 years.
Aloha, which filed for bankruptcy for Chapter 11 bankruptcy protection on March 20, was a casualty of fierce competition and rising fuel prices. The airline said it will stop taking reservations for flights after Monday.
"We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business," said Aloha President David Banmiller in a statement. "We had no choice but to take this action."
28 March 2008
Air Macau posts loss
News reports state that Air Macau posted a 2007 loss of 109 million patacas (US$13.6 million), an increase of 76 percent on the 62 million patacas loss posted in 2006.
In 2005 Air Macau posted a loss of 20 million patacas.
Air Macau’s shareholders are China National Aviation Corporation (51 percent) – which is part of the holding company managed by Air China – and SEAP - Serviços, Administração e Participações, which includes TAP Portugal and Banco Nacional Ultramarino (20 percent), Sociedade de Turismo e Diversões de Macau (14 percent) and, 5 percente each for the Special Administrative Region of Macau and air carrier taiwan Eva Air and a group of small private investors.
According to Portuguese news agency Lusa, Zhao Xiaohang, chairman of the airline, explained Air Macau’s losses were partly due to the constant rise in the price of oil, but said that “throughout 2007 Air Macau did not make total use of the figure earmarked for purchasing fuel.”
27 March 2008
China Airlines record loss
News reports state that China Airlines Ltd, Taiwan's flag carrier, reported a record loss in 2007 net profit, dragged by the surging fuel price and the decreasing number of passengers.
Net loss was NTD 2.52 billion (US$83.7 million), or NTD 0.63 a share last year, compared with a net income of NTD 738.4 million, or NTD 0.19 apiece a year ago, said the company in a filing with the Taiwan Stock Exchange.
21 March 2008
Aloha Airlines Files for Bankruptcy
News reports state that Aloha Airlines filed for Chapter 11 bankruptcy protection Thursday, a little more than two years after emerging from bankruptcy.
Aloha said it will continue to fly as long as a bankruptcy court accepts the airline's financial plan to keep operating.
The airline said in its filing that it was unable to generate sufficient revenue due to what it called "predatory pricing" by Mesa Air Group Inc.'s go! airline.
Aloha Airgroup Inc. emerged from bankruptcy protection in February 2006, just 14 months after filing under Chapter 11.
Phoenix-based Mesa Air Group launched go! into the interisland market later in 2006 to compete with Aloha, as well as Hawaiian Airlines Inc.
In January, go! reported a $20 million operating loss in its first 16 months of operations. Meanwhile, Aloha and Hawaiian reported combined losses of nearly $65 million since go! began operating.
* In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline
19 March 2008
US Airline stocks hit all time low
News reporst state that Airline stocks fell sharply Monday, carrying the benchmark index to an all-time low on more economic uncertainty and widespread malaise in the financial industry
19 March 2008
Low cost Indonesian airline Adam Air to be shut down
News reports state that Indonesian low-cost carrier Adam Air will no longer be allowed to fly, Indonesian officials said.
17 March 2008
Indonesia threatens to close down Adam Air
News reports state that Indonesia threatened Monday to close low-cost carrier Adam Air after two of its largest shareholders announced plans to pull out of the beleaguered company.
The airline has defaulted on debt payments to airplane leasing companies, which has forced the company to ground 12 of its 22 planes, said Adam Suherman, whose family together with Sandra Ang owns a 50 percent stake.
Transportation Minister Jusman Djamal said the airline, which already has sliced its number of routes from 52 to 12 - has three weeks to prove it is economically viable.
If it cannot meet its financial obligations, he said, "its operating license will be revoked." No specific conditions were released to the media.
17 March 2008
Mihin Lanka flies into turbulance
News reporst state that eleven months after beginning operations, Mihin Lanka, a low cost Air Lines fully owned and funded by the Government of Sri Lanka (GOSL), is facing a loss of Rs.300 million, and if the economic performance does not improve soon, the airline may face bankruptcy, airline industry observers in Colombo said.
The trouble-plagued air lines was launched 24 April, 2007 to provide low cost flights to Sri lankans employed in Middle East countries, to passengers travelling to India, and also to be used by the Sri Lanka's President and his delegation during official trips abroad.
13 March 2008
Airlines losses $4-9 billion projected for 2008
News reports state Airlines have struggled due to rising oil prices, of late around $109 a barrel, and J.P. Morgan says “even a best-ever recessionary demand scenario results in a $4 billion industry loss. And if demand trends mirror prior recessions, a $9 billion loss can’t be ruled out. And in that scenario cash becomes scarce for many.”
7 March 2008
Crude oil record high price at $105.97 a barrel !
News reports state that crude-oil contracts for April delivery hit a record $105.97 a barrel on the New York Mercantile Exchange before easing back to finish the day at $105.47. Crude-oil prices are a barometer for jet fuel, airlines' single biggest operating expense.
6 March 2008
PAN AM grounded !
News reports state Pan Am has been grounded after the government revoked its flight certificate.
The airline has stopped its flights out of New Hampshire's Pease Air Terminal after the Transportation Department move. The agency is questioning Pan Am's financing, management practices and regard for the law and regulations governing service.
Boston-Maine Airways, which was the most recent airline to resurrect the Pan Am name, has filed an objection to the revocation, which became effective last Friday.
Pan Am also has suspended flights out of Bedford, Mass. and Trenton, N.J.
4 March 2008
SkyEurope first-quarter loss narrows
News reports state that SkyEurope posted a loss of €11.3 million ($17.2 million) in its fiscal first quarter ended Dec. 31, a 17.9% improvement on the €13.8 million deficit the LCC experienced in the year-ago period.
Operating loss, however, widened 21.8% to €14.8 million from €12.2 million a year earlier. Revenue grew 32.2% to €53 million on a 44.1% increase in passengers carried to 857,953. Total operating expenses rose 30% to €59.6 million.
27 February 2008
Vueling's full-year loss soars
News reports state that Vueling Airlines reported a sharp widening in full-year net loss to €63.2 million ($93.7 million), nearly six times worse than the €10.8 million loss posted in 2006, citing falling fares and record fuel costs as causes.
The Spanish LCC's average fare dropped more than 20% in 2007 to €37.65 owing to strong competitive pressure from "traditional and low-cost carriers alike," it said, noting that the negative impact on its bottom line amounted to €60 million.
Revenue rose 54.3% to €362.7 million on a 77% increase in passengers carried to 6.2 million. Load factor gained 3.7 points to 73%. Operating loss widened to €70.9 million from €10.3 million the previous year. CASK was up 4.5% to 5.75 euro cents but CASK excluding fuel improved 1.4% to 4.33 euro cents.
In the fourth quarter, Vueling reported a net loss of €30.9 million compared to a net loss of €9.4 million in the year-ago period. Operating loss increased to €32.5 million from €9.4 million. Despite canceling delivery of one new A320, the carrier grew its fleet to 20 aircraft that now operate on 50 routes. In 2006 it operated on average of 12.3 aircraft on 31 routes.
The LCC is formulating a strategic plan to address its financial situation and is expected to release details next month. It already has decided to discontinue several loss-making routes including Paris Charles de Gaulle to Milan Malpensa, Jerez and Seville and Madrid-Nice. It has stopped operating to Bologna and Pisa and will abandon Madrid to Amsterdam and Brussels at the end of March.
16 February 2008
Gol Has Loss
News reports state that Gol Linhas Aereas Inteligentes SA, Latin America's second-biggest airline by market value, posted a fourth-quarter loss after delays at Brazil's busiest airports reduced demand. The shares fell 5 percent.
The deficit was 24.2 million reais ($13.8 million) compared with a profit of 92.7 million reais a year earlier, Sao Paulo- based Gol said today in a statement on its Web site.
15 February 2008
PAL posts Q3 net loss of $11.3M
News reports state that Philippine Airlines, the country’s flag carrier, incurred a net loss of $11.3 million in its third quarter fiscal year compared to a net income of $79.5 million in the previous year’s comparative period, due primarily to the absence of one-time gains.
15 February 2008
Mesa Air Group $4.2 million loss first quarter
News reports state that Mesa Air Group, which provides regional lift for Delta Air Lines, United Airlines and US Airways and operates independently as Mesa Airlines and go!, reported a $4.2 million loss in the fiscal first quarter ended Dec. 31, reversed from an $8 million profit in the year-ago period.
12 February 2008
Big Sky Airlines
News reports state Big Sky Airlines parent MAIR Holdings reported a $15.2 million loss for the fiscal third quarter ended Dec. 31, widened from a $1.1 million deficit in the year-ago quarter, and confirmed Big Sky will cease operations in the western US on March 8. It ceased flying in the East last month (ATWOnline, Dec. 21, 2007). MAIR said it is "currently seeking to transition its remaining western operations to another carrier" and is "working to realize the maximum value of all its assets, including assessing the most tax-efficient mechanism to return cash to our shareholders." Third-quarter operating loss soared to $15.6 million from $2.4 million in the three months ended Dec. 31, 2006. Big Sky transported 61,464 passengers during the quarter, up 131% year-over-year, on 8,385 flights. Unit cost rose 39.2% to 45 cents. MAIR's nine-month net loss nearly doubled to $11.3 million from $6.2 million.
8 February 2008
Fuel debts said to ground several Cameroon Airlines aircraft
News reports state that African carrier Cameroon Airlines insists that it is still conducting flights although three of its aircraft are said to have been grounded over debts.
Speaking on behalf of Cameroon Airlines, a spokesman from the Cameroon High Commission in London, UK says the airline has been obliged to renegotiate agreements with its fuel suppliers, but that has now been done and flights are operating as normal.
The spokesman said the carrier does not have the ability to buy fuel on futures markets to hedge against price rises, and the rising cost of oil has put pressure on its finances, which caused the need to renegotiate fuel supply arrangements. He says this has been done satisfactorily, but has not provided details of the arrangements.
However, for the past 10 days, claims a local media report, three of Cameroon Airlines’ aircraft have been grounded in Douala owing to non-payment of fuel bills, causing significant disruption to the airline’s operations.
7 February 2008
Thai AirAsia posts a loss
News reporst state that Low-cost carrier Thai AirAsia posted a loss last year as it faced more intense competition and higher costs.
6 February 2008
SAS Shares Slump After Grounded Planes Prompt Loss
News reports state that SAS Group, owner of Scandinavian Airlines, fell the most in more than six years in Stockholm trading after plane groundings and strike threats led to a fourth-quarter loss.
SAS shares declined as much as 14 percent, the biggest drop since Sept. 12, 2001, and were down 8 kronor, or 13 percent, to 53.5 kronor at 4:35 p.m.
The airline owner had a net loss of 596 million kronor ($93 million), compared with a year-earlier profit of 4.61 billion kronor, Stockholm-based SAS said in a statement today. Analysts had predicted a profit of 101 million kronor.
6 February 2008
Tiger Airways flys into a loss
News reports state that TIGER Airways has posted a full-year loss of $S14 million ($A11 million) for its international operation, according to its most recent financial results.
1 February 2008
Koreans Air Lines - 4th Quarter losses
News reports states Korean Air Lines Co. said Thursday it lost money in the fourth quarter of 2007 due to high fuel prices and foreign exchange losses.
Korea Air, South Korea's largest airline, recorded a net loss of 34.8 billion won ($36.9 million; euro24.8 million) in the three months ended Dec. 31, compared to a net profit of 114 billion won a year earlier, the airline said in a statement.
31 January 2008
Travel misery after airline closure - City Star Airlines
Travel misery after airline closure
News reports state that Passengers are facing misery after an airline shut down following financial difficulties.
Aberdeen based City Star Airlines on Wednesday said it would cease operations from midnight.
The announcement came after one of the company's planes was impounded at Aberdeen Airport by BAA on Wednesday.
30 January 2008
3 More Airlines Cite Fuel Costs for Losses
News reports state that Northwest, JetBlue and AirTran Holdings — posted fourth-quarter losses on Tuesday as rising fuel costs erased gains from fare increases.
But the losses were narrower than expected for Northwest and JetBlue, and shares rose as a result.
Northwest said its deficit was $8 million after a $267 million loss in bankruptcy in the period a year earlier. JetBlue’s $4 million loss compared with net income of $17 million. AirTran pared its loss to $2.17 million from $3.55 million.
Fuel is “the principal culprit,” said David Swierenga, president of consulting firm AeroEcon in Round Rock, Tex. “The softening economy is clearly also having a negative effect.”
29 January 2008
Jet slides into red on high fuel prices, expansion costs
News reports state that Jet Airways, India's sole profitable major carrier, yesterday reported a INR911 million ($23.1 million) loss for the fiscal third quarter ended Dec. 31, reversed from a profit of INR400 million in the year-ago period, ending a streak of four consecutive positive quarters.
Jet cited "historical high fuel prices and startup losses on international business" as factors in the result. Three-month revenue rose 27.8% year-over-year to INR25.17 billion on an 8.7% increase in passengers to 2.95 million. Fuel costs jumped INR609 million from the year-ago period. "The increases in all other costs were in line with the increase in level of operation and in most instances, even lower than that of the same period last year," the company said. Traffic climbed 43% to 4.55 billion RPKs against a 43.2% rise in ASKs to 6.59 billion, lowering load factor 0.2 point to 69.1%. It added 10 aircraft during the quarter.
26 January 2008
Alaska Air Group Q4 Adj. Loss Widens
News reports state that Airline operator Alaska Air Group Inc. (ALK) Thursday announced results for the fourth quarter of fiscal 2007. Non-GAAP net loss for the quarter, excluding special items, widened from last year.
26 January 2008
Frontier Airlines reports net loss of $32.5 million
News reports state that Frontier Airlines Holdings Inc. late Thursday reported a third-quarter net loss of $32.5 million, or 89 cents a share, versus the 82-cent loss estimate of analysts polled by Thomson Financial.
The quarter ended Dec. 31 included charges totaling 9 cents a share, the company said.
In the comparable period last year, the Denver-based airline reported a net loss of $14.4 million, or 39 cents a share.
Revenue in the quarter rose to $333.9 million from $271.3 million.
Frontier said the primary drivers for its loss were the 16.3% year-over-year increase in fuel cost per gallon and losses from its regional fleet operation.
For 2009, the airline expects mainline capacity to grow roughly 4% to 6%.
Shares of Frontier closed the regular session at $2.97, and climbed 3.5% in after-hours trading.
23 January 2008
Norway's No. 4 airline, Coast Air, declares bankruptcy, immediately grounds all flights
News reports statte that Norway's No. 4 airline, Coast Air, declares bankruptcy, immediately grounds all flights.
, saying it had been stunned by unexpected and unsustainable fourth-quarter losses.
Coast Air was Norway's fourth-largest airline, after SAS Norway, Norwegian Air Shuttle and Wideroe. It had eight routes in Norway and two international connections, to Copenhagen, Denmark, and Gdansk, Poland.
«The bankruptcy is the result of a dramatic and unexpected increase in negative results for the fourth quarter,» said Trygve Seglem, a major shareholder. He did not disclose the extent of the losses.
He said the cost of operating the aircraft had increased dramatically, and that the airline had failed to reach a revised agreement with pilots that would have cut costs and increased crew flexibility.
The airline said about 400 passengers had been booked on flights Wednesday, and that their tickets were rendered invalid by the bankruptcy. Seglem said the company had no money left to offer them compensation or book them onto other airlines. Its staff of about 90 people was also immediately laid off.
The airline, based in the southwestern Norwegian city of Haugesund, was founded in 1975 and operated eight aircraft.
Seglem called the bankruptcy «a paradox,» saying strong growth in passengers and traffic was accompanied by a cost explosion that broke the company.
22 January 2008
SpiceJet net falls, says will post FY08 loss
News reports state that SpiceJet Ltd's quarterly profit fell to 93.4 million rupees on higher fuel prices and its chief said the budget airline would not meet a target of breaking even by the end of 2007/08.
For the quarter ending Dec 31, SpiceJet posted net profit of 93.4 million rupees, down from 121.6 million rupees a year ago. Net sales almost doubled to 4.09 billion rupees from 2.07 billion rupees in the previous year quarter.
Earlier, a top company official had said net profit fell 22.5 percent to 93 million rupees from 120 million rupees.
"We now expect to close the year with losses to the tune of 450-500 million rupees. We would have been better if we did not get a kick from oil prices," Executive Chairman Siddhanta Sharma told reporters after publishing the results.
In November, Sharma had said he expected the firm to break even by March, but added, he was concerned about rising oil prices.
Fuel prices made more than half of SpiceJet's total costs per available seat kilometer in the quarter, finance chief Partha Sarathi Basu said.
"Fuel prices are now inching towards 46 percent of our total costs... For 2008-09, we should be posting a small profit on the operational level," Sharma said.
22 January 2008
Shanghai Airlines predicts loss for 2007
News reports state that Shanghai Airlines predicted on Tuesday that it would post a loss for 2007, deteriorating from a net profit of 8.2 million yuan ($1.1 million) in 2006.
The airline posted a loss of 134.5 million yuan in the first half of last year, but said at the time that earnings were improving and a full-year profit was very likely.
Shanghai Airlines said on Tuesday that earnings were hit by high oil prices, while it had not yet managed to make its new international flights fully profitable, and the setting up of a cargo subsidiary drained money. It did not elaborate.
18 January 2008
** Air Mauritanie liquidated
News reports state that court orderes Air Mauritanie to liquidate assets following ongoing financial crisis.
The Mauritanian court ordered Air Mauritanie liquidate its assets following a financial crisis that has plagued the national air carrier for years, a judicial source said Friday.
14 January 2008
Mesa Air Swings to a Loss Amid Surging Fuel Prices
News reports state that Mesa Air Group Inc. swung to a net loss for the fiscal fourth quarter, as surging fuel prices and a charge related to litigation with Hawaiian Airlines weighed on the airline.
The Phoenix-based carrier posted a net loss of $68.2 million, or $2.37 a share, for the quarter ended Sept. 30, compared with $4.8 million, or 12 cents a share, a year earlier. Revenue for the quarter fell 6% to $327.8 million from $348.8 million, primarily resulting from a decrease in aircraft in service.
9 January 2008
Alitalia sees wider-than-expected loss
Alitalia expects an extra €200-million ($294-million) in loss this year because of the increased cost of fuel, the newspaper Il Sole 24 Ore reported on Wednesday.
The airline, which is likely to be acquired by French group Air France-KLM, had recently told Air France it expected a loss of €400-million in 2008, the report said.
Last year, Alitalia paid €1.013-billion or 21.0 percent of its income, for fuel.
In the first nine months of last year the airline ran up a pre-tax loss of €255-million.
9 January 2008
Frontier Airlines loss
News reports state that Frontier Airlines will report a pre-tax loss for the fourth quarter of 2007, President and CEO Sean Menke said. A $0.78-$0.88 per share loss excluding special items, larger than forecast, was caused by "higher-than-expected operating expenses" related to winter weather in Denver and the Midwest late last month and "weaker-than-expected performance in some sun destination markets," he said.
26 December 2007
Big Sky Shuts Down Nationwide Operations
News reports state that the airline announced they are ceasing operations nationwide.
The Montana-based airline said they could not make a profit. A spokesperson for the company said that Big Sky is not bankrupt and that all shareholders will be paid. The airline plans to liquidate its assets as quickly as possible.
Airport officials at Burlington International Airport say they're confident that another airline will take Big Sky's place offering non-stop flights to Boston.
"Quite frankly, the service hadn't been particularly good," said Brian Searles of Burlington International Airport. "We're in touch with Delta now to find out what kind of service will be provided after the Big Sky contract is up and we feel it will likely be an improvement."
Big Sky service to the Northeast ends Jan. 7, 2008. The airline will also shut down its operations in five western states.
25 December 2007
Maxjet Airways files for bankruptcy protection
News reports state that Maxjet Airways threw itself onto bankruptcy protection Monday as soaring costs, stiff competition and a deteriorating credit market scuttled the fledgling airline's bid to carve out a niche for itself by catering exclusively to business-class passengers in the trans-Atlantic market. "It is with deep regret that I must inform you that Maxjet filed Chapter 11 bankruptcy ... With today's fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure," Maxjet President and CEO William Stockbridge said in a statement posted on the company's Web site. Maxjet's bankruptcy came as no surprise in the airline industry. Mounting financial problems forced the suspension of its shares on Dec. 7, six months after the Dulles, Va.-based company debuted in London. Maxjet's maiden flight took off two years ago, aimed exclusively at budget-minded business travelers on the New York-to-London run. The airline promised amenities that business travelers had come to expect but were getting increasingly hard to find, especially after the demise of the legendary Concorde flights operated by British Airways. Maxjet's fleet of five aircraft used Stansted airport outside London as the hub for a tight network of flights to New York's JFK, Los Angeles and Las Vegas. The venture met with plenty of analyst skepticism from the start, amid warnings that the carrier offered too few flights to too few destinations to compete for lucrative corporate accounts. Pricing pressure from established carriers such as British Airways, Air France-KLM and Virgin also made it hard for the newcomer to break into the field while a slowdown in corporate as well as consumer spending was seen as a major factor making it hard for Maxjet to line up any more credit.
22 December 2007
FlyWhoosh grounded
News reports state that troubled airine flyWhoosh finally admitted yesterday that its Dundee services have been grounded for good.
The belated announcement came after the Polish company which provided the plane and crew, White Eagle Aviation, ended its business relationship with flyWhoosh two weeks ago, leaving it with no aircraft.
Bizarrely though, the company has blamed its demise on what it terms “negative publicity” by The Courier, in an Email to customers who have lost their flights and, possibly, their money.
21 December 2007
Big Sky bails on East Coast operations, braces for shutdown
News reports state that Big Sky Airlines, a subsidiary of MAIR Holdings, will shutter its US East Coast operations as a Delta Connection partner on Jan. 7.
MAIR plans to sell seven Big Sky Beech 1900s and will attempt to offload its operating certificate as well, President Paul Foley said. Big Sky has been operating the 19-seat turboprops under codeshare with DL since April.
"Big Sky is going to be shut down at some point," Big Sky President Fred deLeeuw told ATWOnline. He said he expects it to happen in 60-90 days. "Our eastern operations were dramatically affected by a combination of unusually bad weather, disappointing revenue and record-high fuel prices," he explained. Foley said yesterday that Big Sky lost $1.3 million in November and "we do not see future conditions improving to the level required."
This is the second round of bad news this year at MAIR. In January it turned over its bankrupt regional subsidiary Mesaba Airlines to codeshare partner Northwest Airlines as part of a stock purchase and reorganization agreement
20 December 2007
Nationwide is still battling headwinds
News reports state that Nationwide Airlines, still recovering after its temporary grounding last month, says it has been struggling to accommodate passengers who, in turn, say they have lost faith in the airline.
The Civil Aviation Authority (CAA) grounded the airline on November 30 when it suspended its approval of the airline's aircraft maintenance organisation and the certificates of airworthiness of its fleet of aircraft.
About two weeks ago the CAA ruled that Nationwide's aircraft could again take to the skies.
Rodger Whittle, Nationwide's corporate quality director, said it had been taking strain this festive season.
"We are operating with far fewer aircraft than normal. This has obviously had huge implications ... we have been inundated with calls from our clients and we can't accommodate them," he said.
Two Nationwide flights to Johannesburg were cancelled on Wednesday for as yet unestablished reasons.
20 December 2007
Skybus Airlines losses
News reports state that Skybus Airlines lost $16 million in the third quarter, according to statistics the startup LCC provided to the US Dept. of Transportation and cited by several press reports. Revenue was $22 million as the carrier achieved a 79% load factor. Yield was just 5.08 cents. The Ohio-based airline told media that the results were "in line" with expectations.
19 December 2007
AlpiEagles: creditors have petitioned in bankruptcy
News reports state that SAVE, GESAC, AZ and the "Il Sole 24 Ore" the main creditors
The lawyers of AlpiEagles creditors have petitioned in in bankruptcy.
The main creditors of the airline, led by Paolo Sinigallia, that have petitioned to the Venice Court, are SAVE, Venice Airport Management Company, GESAC, Napoli-Capodichino Management Company, Alitalia and unofficial sources report also the name of "Il Sole 24 Ore" newspaper and in that regard it has not yet released any statements.
The global amount requested by the first two companies is about 6 million Euro (over 4 million Euro for SAVE) relating to the use of the airports, while the debt on Alitalia is 300,000 Euro and about 100,000 for the Italian newspaper.
On December 18th there was the first hearing, but all has been postponed to February 12th, 2008.
The licence of AlpiEagles will expire on December 31st, 2007, but the hearing is delayed to next February. Will ENAC, Italian Civil Aviation Authority, suspend the airline's activity or allow it to extend its licence still further?
19 December 2007
Virgin America sees loss after takeoff
News reports statet that Virgin America Inc., the Burlingame startup airline partly owned by U.K. billionaire Richard Branson, lost $34.8 million in its first quarter of operation, according to U.S. government data.
19 December 2007
Aloha Airlines
News reports state that Aloha Airlines yesterday confirmed press reports of a $15.1 million loss in the third quarter, widened from a $9.9 million deficit in the year-ago period. The carrier now has suffered a loss in each of the past 16 quarters, the Honolulu Star-Bulletin calculated. Third-quarter revenue rose 4.6% to $104.4 million, but higher fuel prices and lower fares continued to plague Aloha, according to President and CEO David Banmiller. Expenses climbed 5.1% to $116.1 million and operating loss deepened to $11.7 million from $10.6 million in the third quarter of 2006. The airline, which emerged from bankruptcy in February 2006, lost $58.1 million through the first nine months. It lost $41.5 million last year.
16 December 2007
Mesa expects fiscal 2007 loss
News reports state that Mesa Air Group Inc., the parent of interisland carrier go!, said today it expects to report a loss for the fiscal year that ended in September.
The earnings release will be delayed pending a review of “certain estimates,” Phoenix-based Mesa said in a filing with the Securities and Exchange Commission. The airline fired Chief Financial Officer George “Peter” Murnane last month and named William Hoke as interim CFO after a probe into possible misconduct.
14 December 2007
Airlines face 33% profit loss
News reports state that the airline industry predicts profits next year will be cut by one third as soaring fuel costs and the credit crunch begin to take their toll.
The International Air Transport Association (IATA) forecast yesterday that the global aviation business would make profits of $US5 billion ($A5.7 billion) in 2008, compared with a previous forecast of $US7.8 billion.
The greatest burden on airlines next year will be fuel prices, with the spike in charges set to add $US14 billion to the industry fuel bill, bringing it to $US149 billion, based on an average price of $US78 per barrel.
The impact of the credit crunch is also expected to lead to slower growth in revenue and traffic. The delivery of new, bigger aircraft will make the problem worse, with more seats competing for fewer passengers.
13 December 2007
O'Connor Airlines will cease operating
News reports state that O'Connor Airlines is about to be grounded because there has been no interest in buying it as a going concern.
The troubled regional operator O'Connor Airlines will cease operating tomorrow night.
The administrator has announced that, despite significant initial interest, there were no offers to acquire the South Australian-based airline as a going concern.
It says that continuing trading losses, declining support from customers, flight crew shortages and significant aircraft maintenance issues have contributed to the decision.
Passengers affected by the imminent closure are being contacted by O'Connor Airlines staff.
13 December 2007
Airline Shares Tumble
News reports state that Airline shares extended early losses Tuesday after the Federal Reserve cut the benchmark federal funds rate by a quarter percentage point to 4.25 percent, in line with what most economists expected.
The federal funds rate is the rate commercial banks charge one another on overnight loans.
Broader markets dipped shortly after the announcement as investors appeared to want bolder action from the central bank. Airline stocks tumbled further, pressured by rising crude oil prices and a downbeat earnings outlook that weighed on the sector earlier in the session.
13 December 2007
Fuel costs put airlines back into the red
News reports state that an analyst says higher jet fuel prices will lead to first industrywide loss since early 2006, although reduced profits could return in '08.
After almost two years of profits, the airline industry will hit turbulence and post a fourth quarter loss due to high jet fuel prices, according to a leading analyst.
Ray Neidl of Calyon Securities cut his earnings forecast on most major airlines. He said fuel costs have averaged $2.55 a gallon so far in the fourth quarter, up 16 percent from a $2.20 average in the third quarter.
11 December 2007
Nationwide 24-hour-strike to paralyse transport across Greece
News reports state that all flights are expected be grounded, ships to be docked and urban transport and public services are expected to grind to a halt across Greece when labour unions Wednesday stage a 24-hour-strike to protest proposed pension reforms.
No flights would be leaving or arriving at Athens International Airport as air-traffic controllers decided to join the action Tuesday.
State-operated Olympic Airlines joined the strike after the government said it was unlikely that it could rescue the airline from bankruptcy.
11 December 2007
Frontier Airlines
News reports state that Frontier Airlines said it expects a pre-tax loss of $0.58-$0.68 per share excluding special items in the third fiscal quarter ending Dec. 31. It did not offer a comparison to the year-ago quarter, when it reported a net loss of $14.4 million. It also said it planned to reduce year-over-year mainline capacity growth for the fiscal fourth quarter to 8.6% from the originally scheduled 13.7%.
7 December 2007
MaxJet Suspends Share Trading
All-business-class airline Maxjet today suspended trading in its shares pending “clarification” of its financial position.
The airline started flying between Stansted and New York in November 2005, claiming to offer the amenitites of business class at fares comparable to economy class.
It lost £40 million in its first year of operation, but gained £47.3 million after floating on the Alternative Investment Market this year, aiming to use the cash to pay off debts and fund expansion.
Maxjet’s first-year losses, in the 12 months to the end of 2006, came on a turnover of £21 million.
At the time it insisted that it was normal for a new airline to lose money in its early years, and it expected to break even by launching more services.
7 December 2007
Kingfisher Airlines posts Rs 577 cr loss
News reports state that Kingfisher Airlines has posted a net loss of Rs 577 crore in the financial year ended March 2007, the balance sheet of UB Holdings, which owns the airline, shows. The loss was on a revenue of Rs 1,553 crore earned during the year. This, incidentally, may well be the biggest loss posted by a major domestic airline recently.
Kingfisher’s more established rival, full-service carrier Jet Airways, had recorded a marginal profit of Rs 28 crore in the same period while government-owned Indian closed the year with a Rs 275-crore loss. Industry analysts estimate that domestic airlines have lost around Rs 2,000 crore in 2006-07.
Kingfisher, now in its third year of operation, hopes to break even in 2008-09. But analysts reckon that the going could get tougher, especially if the current cost pressures continue even as the Vijay Mallya-owned airline attempts to chart its international foray next year.
“The high cost is the main reason for the loss,” said Kingfisher Airlines vice-chairman Subhash Gupte. “Aircraft acquisition, depreciation, new routes, training requirement and the spiralling cost of aviation fuel in India are the other reasons,” he said. Kingfisher’s failure to utilise aircraft capacity in full has also added to the woes.
Air Deccan has been in the red since its inception, having accumulated losses of around Rs 420 crore. Kingfisher Radio, another UB Group firm, had acquired 46% stake in Deccan Aviation this June. The prospects of an eventual merger between the two carriers is on the cards.
7 December 2007
Olympic Airlines to liquidate
News reports state that Olympic Airlines will be prepared for liquidation. Greek Minister of Transport Kostis Hadzidakis is planning the closure of the loss-making carrier next year and wants to replace it with a new airline under a new name and with a much smaller fleet. The Greek government also is looking for private investors, according to press reports. "We do not want a blueprint of Olympic, where the state has full control," Hadzidakis was quoted as saying.
According to preliminary plans, the new carrier would operate with a fleet of 20 aircraft instead of the current 42. Most international routes would be closed, with the network focused on flights to domestic destinations and neighboring countries. Half of the 8,500 positions at Olympic would be cut, with the government planning to offer early retirement packages or jobs in other state-owned enterprises. Last weekend, Hadzidakis said Olympic's debt had reached €2 billion ($2.94 billion) and that legal proceedings involving alleged illegal state aid to the struggling carrier have made finding investors impossible
4 December 2007
British holiday makers face misery as airline is grounded
The Daily Mail reported on Monday that hundreds of British holidaymakers have had their travel plans severely disrupted following the grounding of an international airline.
South African carrier Nationwide, which operates four return flights a week between Gatwick and Johannesburg, lost an engine on take-off on a recent flight from Cape Town.
Last week the South African Civil Aviation Authority suspended Nationwide's aviation maintenance organisation licence, leading to the suspension of all flights.
A spokesman for Gatwick airport said today that Nationwide's planned 7pm Gatwick-Johannesburg flight had been cancelled. The airline's other normal Gatwick departures are on Tuesdays, Thursdays and Saturdays have also been stopped.
The disruption will now mean misery for the hundreds of British holiday makers planning to travel to South Africa.
Yesterday South Africa's Civil Aviation Authority (SACAA) said Nationwide were attempting to solve the problems by leasing an aircraft from Dutch airmline KLM to fly passengers to London.
Earlier this month the SACAA said it took the decision to ground all Boeing 737 200 aircraft in the country yesterday for safety checks after an engine fell off the wing of a Nationwide Airline aircraft carrying 106 passengers in Cape Town. There were no injuries sustained by anyone on board or on the ground.
On its website yesterday, Nationwide said: "The Civil Aviation Authority is still investigating the cause of the incident, and the results of the investigation are not expected to be known for some time.
"It would appear however that during the take off roll an object which is yet to be defined was ingested into the engine which caused a catastrophic engine failure. The subsequent forces experienced by the engine supporting structure caused this to fail and for the number two engine to detach from the wing.
"Effectively, this grounded all Boeing 737-200 aircraft operated in South Africa until compliance with the Airworthiness Directive could be accomplished."
4 December 2007
IATA shuts Nationwide back-office
News reports state that the Geneva-based International Air Transport Association (IATA) has suspended Nationwide Airline from participation in its billing and settlement systems. The global industry association says the move follows confirmation on Nationwide's Web site on Friday that it had suspended operations.
4 December 2007
Olympic 'facing difficult future'
News reports state that the Greek government has said that national carrier Olympic Airlines has a 'more difficult future' amid speculation it may soon be grounded.
Athens is under increased pressure to reclaim illegal state aid that it paid to the airline.
And Ryanair is taking the European Commission to court for failing to act on further state subsidies it alleges were paid to Olympic.
The Greek carrier has struggled despite the widely-criticised funds.
Athens has previously said that the demands for repayments have made it impossible to find investors for the potential privatisation of the airline.
'Jobs safe'
The legal action by Ryanair makes Olympic's survival "more difficult" Greece's Transport Minister Costis Hadzidakis warned.
In a carefully worded statement following a meeting with EU Transport Commissioner Jacques Barrot over the weekend, he said that the government was committed to keeping Olympic in the air.
But if it was forced to close, he pledged that none of the estimated 8,500 workers at the flag carrier would lose their jobs and that none of the Greek islands would lose their air links to the mainland.
This has been widely interpreted that the troubled airline's days are numbered.
Financial woes
Olympic has faced financial difficulties for years, despite being propped up by Athens.
Efforts to privatise the carrier hit turbulence after a 2005 ruling by the European Commission that found the Greek government guilty of illegal state aid to Olympic and demanded it reclaim the money worth hundreds of millions of euros.
The ruling related to subsidies given to Olympic between 1998 and 2002.
Ryanair's complaint relates to a further 500m euros subsequently given by Greece to the airline, which the Irish budget airline alleges is the latest attempt by the government to support the carrier.
2 December 2007
SkyEurope preliminary FY net loss narrows to 24.1 mln eur on higher loadfactor
News reports state that SkyEurope Holding AG said preliminary net loss for the full year narrowed to 24.1 mln eur from over 57 mln a year before thanks to a record loadfactor in the fourth quarter.
The low-cost Slovakian airline reported preliminary EBITDAR (earnings before interest, tax, debt, amortisation and rent) at 9.6 mln eur for the year ending Sept 30 versus a negative 32.1 mln reported in 2006.
30 November 2007
Nationwide aircraft grounded indefinitely
News reports satet that Nationwide’s aircraft will remain grounded until the airline has fixed deficiencies within its maintenance section, the SA Civil Aviation Authority (CAA) said on Friday.
The CAA suspended approval for the airline’s aircraft maintenance organisation from midnight on Thursday, said CAA chief executive officer Zakes Myeza.
It had also suspended the certificates of airworthiness of Nationwide’s fleet of 16 aircraft - twelve 737 - 200s, five 727s and one 767.
If the airline did not comply, its licence would be revoked altogether.
“It was unavoidable,” said Myeza.
He said the suspension arose from the airline’s failure to comply with an airworthiness directorate issued in September and subsequent audits of its compliance.
29 November 2007
EU keeps ban on Indonesian airlines
News reports state that the EU on Wednesday lifted its entry ban on Pakistan International Airlines (PIA) and on Blue Wing Airlines of Surinam, but refused to do the same with Garuda and other Indonesian airlines because of ongoing safety concerns. A statement from the EU's Transport Commission said both PIA and Blue Wing Airlines had "successfully completed the implementation of a corrective action plan following their inclusion in (the EU's) list (of banned airlines)."
The EU added Indonesia's national airline, Garuda, and all other Indonesian airlines to its list of carriers that are not allowed to fly into EU territory in June.
While no Indonesian airline flew to EU member states before the crashes, the ban obliges travel agencies to warn customers that Indonesian airlines are unsafe if they sell package tours that use such carriers.
Last week, Indonesian President Susilo Bambang Yudhoyono urged the EU to act swiftly to lift the ban, saying Indonesia was making every effort to improve aviation safety.
But a Transport Commission spokesman said Wednesday that improvements were still needed.
"Clear progress is there, but more effort is still needed to make sure that all the deficiencies have been tackled and that we can lift our ban. That is not the case yet. We still need some improvements," said Michele Cercone, the spokesman for Transport Commissioner Jacques Barrot.
European Commission President Jose Manuel Barroso promised to send a team of experts back to Indonesia to speed up a review of airline safety in the country during his visit to Jakarta last week.
Wednesday's update of the EU blacklist, which takes place every three months, also acknowledged the efforts being made by the civil aviation authorities of Iran, Ukraine and Angola to improve safety.
However, TAAG Angola Airlines, Mahan Air and Ukrainian Mediterranean Airlines remain on the EU's blacklist, which covers eight individual airlines and all carriers from Equatorial Guinea, Indonesia, the Kyrgyz Republic, Liberia, Sierra Leone, Swaziland and the Democratic Republic of Congo.
Europe's civil aviation authorities carry out only random inspections of aircraft operating within the 27-member bloc. Therefore, the fact that an airline is not included in the EU blacklist does not automatically mean that it meets the applicable safety standards, officials note.
28 November 2007
Air India
News reports state that Air India board this week signed off on a loss of INR4.48 billion ($112.5 million) for the fiscal year ended March 31, a result reversed from a INR149.4 million profit in the prior year, according to widespread press reports from India. Revenue climbed 2.8% year-over-year to INR95.9 billion and the carrier struggled to fend off low-fare competition as its fuel bill rose a reported INR3.86 billion, or nearly 13%, and it was forced to pay INR4.25 billion in wage arrears. Dow Jones reported that Indian Airlines, which has merged with Air India under the National Aviation Co. of India Ltd. banner, reported a fiscal-year loss of INR2.75 billion following three straight years of profit, including a INR495 million surplus in 2005-06.
28 November 2007
Thai Airways suffers a 29.5% decline in profit
News reports state that Thai Airways suffered a 29.5% decline in profit in its fiscal year ended Sept. 30 to THB6.34 billion ($201.7 million), according to press reports from Bangkok that cited weak aircraft sales and unfavorable foreign currency fluctuations for the result. Sales climbed 7.5% to THB192.03 billion, but foreign currency gains plunged 80.6% to THB1.2 billion and the THB500 million earned from the sale of three aircraft compared to THB2 billion it made from disposal of four freighters in the 2005-06 fiscal year, Thomson Financial reported. Costs were up 5.3% to THB179.2 billion and passenger numbers rose 3% to approximately 20 million. Load factor was 77%.
26 November 2007
Indian may post Rs 250-crore loss
News reports state that the national carrier, Indian, the country’s second largest airline by marketshare, is expected to post a net loss of about Rs 250 crore for the financial year 2005-6, instead of a profit of Rs 48 crore.
The change is after the audit committee of the National Aviation Company (NACL) board asked the Indian management to provide for losses of Alliance Air worth about Rs 300 crore. The losses were not provided for earlier. Indian’s accounts for the last fiscal have hence not been finalised yet. Air India’s accounts on the other hand, were approved by the board and amount to a net loss of Rs 447.93 crore for the full year 2005-6.
Alliance Air, is the low cost subsidiary of Indian. The books of the two carriers will be merged from this fiscal as the merger comes into effect. The board meeting of NACL, the holding company, that began on Friday spilled over to Saturday on the issue of the finalisation of accounts.
On the NACL board are the Air India chairman V Thulasidas, financial advisor to the ministry of civil aviation Raghu Menon, joint secretary RK Singh, chairman of ICICI bank Mr N Vaghul who is an independent director and the NACL vice chairman V Trivedi, who is also the former chairman of Indian. The board also has six functional directors from the two carriers.
The former Air India director, who spoke to ET on Friday said, ``savings resulting from the merger between the two carriers will improve the financial health of the company this fiscal.”
Meanwhile, elaborating on the reasons for Air India’s losses, the company’s director public relations Jitender Bhargava said, ``higher fuel cost, increased interest liabilities because of new aircraft and lower revenues have resulted in the losses.’’
He also said almost every airline in the country was losing money. Air India’s fuel bill increased by Rs 386 crore to Rs 3,530 crore during 2006-7. The interest liability was up by Rs 239 crore during the period.
The revenues, however, fell to Rs 5,360 crore from Rs 5,689 crore in 2005-6. Air India’s Ebitdar (earnings before interest, tax, depreciation ammortisation and rent), an important parameter for the airline industry, amounted to Rs 798 crore.
22 November 2007
AIRLINES BRACE FOR FURTHER TURBULENCE
News reports state that as the price of oil surged towards USS100 per barrel in overnight trade, the aviation industry was bracing itself for further after-shocks.
In its daily media hotline, the Centre for Asia Pacific Aviation said the fallout of the US sub prime mortgage crisis and worries over the outlook for the US economy continued to rattle investors.
“In Asia, the impact has not been as great, as economic growth remains strong and US dollar weakness has cushioned the blow of rising fuel costs,” said CAPA.
Cathay Pacific CEO, Tony Tyler, stated that Asia's airlines still have pricing power in the current market, adding “that's how we can keep our heads up, despite the very high fuel costs”.
CAPA said fuel surcharges would continue to rise, particularly in less competitive, long-haul international markets.
"Much depends on the Chinese economy, Asia’s dominant market," said Peter Harbison, CAPA executive chairman. "If it were to stumble, the blowtorch could be quickly applied to Asia’s economies and its airlines."
21 November 2007
Deccan runs up accumulated losses
News reports state that Low cost airline, ‘Simplifly’ Deccan has run up accumulated losses worth about Rs 778 crore (as of June, 2007) but it is confident that it will return to profits as early as April-June 2008 quarter.
“Consolidation in the industry is setting in which means airlines will start achieving higher yields and realisation,” Deccan’s officiating Chief Executive Officer, Mr Ramki Sundaram, told Business Line.
The accumulated losses exclude the Rs 253.18-crore loss the airline suffered during the July-September quarter this year. If one takes into consideration the Rs 800-crore debt which the UB Group raised to buy 46 per cent stake in Deccan Aviation which runs Deccan, the owners of the airline have a lot to worry about. But airline officials claim that in another 18 months, accumulated losses will reduce considerably.
What worries the domestic airlines more, according to Mr Sundaram is the sharp increase in oil prices as well as poor airport infrastructure. “If the government stops cross-subsidising, and prices the ATF (aviation turbine fuel) on par with international prices, we will be able to manage our finances much better,” Mr Sundaram said.
21 November 2007
Shares in Austrian Airlines AG nosedive
News reports state that shares in Austrian Airlines AG nosedived in heavy volumes in mid-afternoon trading, as the carrier led a broad decline among European airline stocks on the back of rising oil prices.
At 2.26 pm, Austrian Airline shares were down 7.83 pct to 5.53 eur, while the ATX index was down 1.88 pct to 4,328.01.
Analysts attributed the carrier's strong share price loss to additional gains in the already high price of oil, as well as to the general weakness in trading on the Vienna bourse today.
On Friday, the airline said its October passenger traffic volume was up 0.2 pct year-on-year to 952,600 passengers, while its passenger load factor for the month was 76.4 pct, compared to 75.4 pct a year earlier.
21 November 2007
More turbulence in Brazil's airline industry
News reports state that there is more turbulence in Brazil's airline industry with the grounding of BRA, Brazil is left with two dominant groups: TAM and Gol/Varig
The suspension of flights at BRA, sharp profit falls at both Gol and TAM in the third quarter and the return to international duty of Varig, all in the past few weeks, illustrate perfectly the fluctuating fortunes of the Brazilian airline industry.
São Paulo-based BRA, which had built up a network of around 30 destinations in under two years, suspended all of its domestic and international operations in early November. Its fleet of seven Boeing 737s and two 767s were grounded as the carrier ran out of cash. Privately owned BRA says it is in negotiations to secure enough financing to resume operations. Prior to the suspension, it emerged that the airline's founder and chief executive, Humberto Folegatti, had resigned in October. He had just ordered 20 Embraer E-195s.
BRA's predicament was deepened by air traffic disruption in the country, partly caused by flight restrictions at São Paulo's Conganhas airport following the crash of a TAM Airbus A320 in July. This disruption was mainly behind Gol's profits in the third quarter plummeting by 75% and TAM's by over a third.
20 November 2007
Industrial problems in Jamaican airline
News reports state that the financially-strapped national airline, Air Jamaica, says it is seeking to reduce its workforce and has also proposed a 12-month voluntary leave of absence for workers.
Newly appointed executive chairman Shirley Williams has confirmed that the work force will be reduced and that the company is to carry out an audit of all departments to determine how it would carry out the planned staff reduction.
Williams said there is an urgent need to cut costs at the airline.
"As I said from the very first day that I assumed responsibility for Air Jamaica, we have to restructure the organisation so that it is efficient," she said.
"We have to do cuts in terms of human resources because in many areas they are currently overstaffed. We are auditing every department and whatever action is required to be taken in the interest of efficiency will be taken and will be taken in a timely manner," she added.
But the Bustamante Industrial Trade Union, (BITU), which represents the workers including pilots and flight attendants, has rejected the voluntary leave of absence proposal.
BTU president general, Kavon Gayle, said if the company pursues the plan it would have a negative impact on the airline's operations.
"It was proposed to us sometime earlier on this year and we raised the concerns about it as to how it would impact on the operations.
"What Air Jamaica needs to do is to make a forensic analysis on all facets of their operations and come up with a structured set of objectives and priorities in terms of how they can improve the operation and how they can reduce and save costs," Gayle said.
He said that a meeting would be held with the workers later this week.
Meanwhile, flight operations at the Norman Manley International Airport could be severely affected by as early as Tuesday afternoon after emergency and maintenance workers attached to the Airports Authority of Jamaica, (AAJ) have threatened to walk off the job if the management fails to present them with a new wage offer.
The workers are being represented by the Trade Union Congress (TUC), whose deputy general secretary, Barrington Dawes, said wage negotiations have been going on for nearly a year without much success.
He said the workers had rejected previous offers presented by the AAJ and ultimatums issued against the company have not had much effect.
"As a consequence we have urged the AAJ repeatedly to make meaningful offers. The response of the management is very slow in coming and we have reached a point where our patience has been completely exhausted and we have said the airports authority make some meaningful response."
He said failure to do so by midday on Tuesday could result in "a cessation of operations".
19 November 2007
Philippine Airlines suffered an $11.8 million loss
News reports state that Philippine Airlines suffered an $11.8 million loss in its fiscal second quarter ended Sept. 30, widened from a $6.2 million deficit in the year-ago period. PAL said the increase was due principally to higher maintenance and fuel expenses. Revenue rose 13% to $354.1 million as yields climbed, it said. Fuel accounted for $108.2 million of the $365.9 million in expenses. Despite the result, PAL reached the halfway point of its fiscal year a record $22.7 million in the black compared to a surplus of $10.9 million in the year-ago semester.
19 November 2007
AIRLINE STOCKS - Sector hit by broad market sell-off, climbing crude
News reports state that Airline stocks fell sharply Monday, clobbered by a big downdraft in the overall stock market, rising oil prices, and more gloomy comments about the state of the industry.
At the close, the Amex Airline Index (XALamex airline index XAL) was down 5.2% at 39.68 points, with some of the index's biggest carriers leading the decline.
US Airways Group Inc. (LCCUS Airways Group Inc LCC) posted the group's steepest percentage decline, down 8% to close at $20.61 a share. Northwest Airlines Corp. (NWAnorthwest airls corp com NWA) fell nearly 7% to $17.95.
Continental Airlines Inc. (CALContinental Airlines Inc CAL) ended at $27.82, down nearly a 6% from Friday's close, while American Airlines parent AMR Corp. (AMRAMR Corporation AMR) shed 4.9% to end the session at $21.38.
Much of the pressure came from a Goldman Sachs downgrade of Citigroup, citing the likelihood of more subprime mortgage losses, which gnawed away at investor confidence in the broad market and sent the Dow Jones Industrials into a 218-point tailspin.
But crude-oil's brief overnight surge to $95 a barrel was another unsettling factor. The front-month crude contract on the New York Mercantile Exchange finished the day with an 80-cent gain at $94.64.
Crude's gains stemmed from a decision over the weekend by the Organization of Petroleum Exporting Countries not to boost production quotas. Some of the group's members went so far as to say that oil prices appear undervalued given the weak U.S. dollar, the currency of the global oil market.
The comments gave little encouragement to airline fuel managers hoping crude prices would continue their retreat from near $100 a week ago, but instead seem to be settling in at the mid-$90s level.
16 November 2007
Save and Gesac petition in bankruptcy against Alpi Eagles
News reports state that the Alpi Eagles airline situation seems to be more and more difficult. The carrier of Veneto, long time is in the centre of enourmos problems , is faced with petition in bankruptcy, filed by SAVE and GESAC (the companies which manage the airport of Venice and Naples respectively) at the Court of Padova.
The news has been confirmed by union sources and the FIT, FILT and UILT national secretaryships have immediately asked for a confrontation with the minister of Transport Alessandro Bianchi. The future of Alpi Eagles concerns about 800 workers, 300 of which are employees of the carrier.
The debts towards the SAVE come to 3.8 million of Euros, sum not confirmed by Paolo Sinigaglia, the President of Alpi Eagles, who replies this way to the SAVE and GESAC petition: "Alpi Eagles is not in a state of insolvency, because it is super-capitalized. I want stigmatize SAVE action, made by its President Enrico Marchi, who long time plots to close our airline".
16 November 2007
Alitalia's third-quarter loss narrows but still heavy
News reports state that despite falling passenger traffic revenue and continuing labor unrest, Alitalia managed to narrow its third-quarter deficit.
Its pre-tax loss of €57.6 million ($84.3 million) was an improvement over the €66.4 million suffered in the year-ago period, while its operating loss narrowed to €19.1 million from €42 million in the third quarter of 2006.
A 4.6% decline in passenger revenue was offset by rising cargo and nontraffic income, producing a 1% climb in consolidated turnover to €1.27 billion. AZ said "industrial unrest" during the period resulted in a "potential" revenue loss of approximately €32 million. Costs fell 0.2% to €1.21 billion, which helped boost the operating result.
Operating a fleet of 185 aircraft at the close of the quarter, AZ reported a 0.1% increase in passenger traffic and a 0.3% rise in capacity, resulting in a 0.2 point slip in load factor to 78.6%. Yield fell 5.3% year-over-year owing to increasing LCC competition and unfavorable foreign exchange trends, and revenue per ASK declined 5.5%.
Nine-month pre-tax loss narrowed to €255 million from €274.8 million in the year-ago period as operating less fell to €146.4 million from €172.6 million. AZ said its full-year operating results "should be practically in line" with the €265.7 million deficit reported for 2006 prior to a readjustment necessitated by a writedown in the value of its fleet. It forecast a "moderate" increase in passengers and a "noticeable" fall in yield and said it will retain sufficient cash to continuing operating for more than 12 months.
* Despite the continuing negative profits IPP continue to maintain cover for this airline
14 November 2007
Alitalia says Q3 pre-tax net loss narrows
News reports state - Italy's national carrier Alitalia on Tuesday reported a third-quarter pre-tax loss of 58 million euros ($84.78 million), an improvement of almost 9 million euros on the same period last year.
Alitalia, still on the hunt for a buyer after a failed auction for the Italian government's controlling stake in the airline, said operating revenues rose by about 1 percent to 1.267 billion euros in the period.
9 November 2007
Italian minister says Alitalia risks bankruptcy if government sale fails
Press reports state that Italy's transport minister said Thursday that Alitalia SpA might have to file for bankruptcy in a few months if government attempts to sell a controlling stake in the Italian airline fail.
``If we're not able to sell Alitalia in an acceptable manner within the next two to three months, we'd run the serious risk of bankruptcy,'' Transport Minister Alessandro Bianchi said.
The Italian government has been struggling to sell its 49.9 percent stake in loss-making Alitalia. Its attempt earlier this year to sell at least a 39 percent stake failed after all potential buyers gradually pulled out, saying the conditions were too stringent.
Last month, Alitalia Chairman Maurizio Prato said he would sound out interest for the company's sale with six candidates, including Air France-KLM, Deutsche Lufthansa AG, the private Italian carrier Air One and Russia's Aeroflot.
No new terms have been indicated. But after the failed auction, analysts said it is likely that most of the conditions have been taken off the table in order to accelerate a sale.
Air One is Italy's second-biggest carrier by passenger numbers after Alitalia. The holding company that controls Air One on Wednesday said Goldman Sachs will act as adviser for a bid it is preparing with the support of Italian bank Intesa Sanpaolo.
Alitalia has been suffering under competition from low-cost carriers, high operating costs and damaging strikes. In the first half of the year, its net loss was ¤211 million (US$297 million).
* IPP still continue to offer cover for this airline
8 November 2007
Solomon Airlines suspends flights
News reports state that the Solomon Islands national airline has suspended all domestic flights with immediate effect.
The financially-troubled Solomon Airlines announced the suspension today. The move will disadvantage thousands of people who rely on its services to travel between the nation's scattered islands.
Airline officials could not be contacted for comment this evening in the capital, Honiara.
It was unclear if the airline's international flights to and from Brisbane would be affected.
The Solomons government, which owns the airline, has had to bail it out in the past.
8 November 2007
Creditors want AEXJet to liquidate
Press reports state that the two largest creditors of Aspen Executive Air filed a motion Monday asking the court to convert the airline’s bankruptcy from Chapter 11 to Chapter 7, meaning the Basalt-based airline would sell off all assets instead of reorganize its debts.
But John Gallaher, the CEO of Aspen Executive Air — better known as AEXJet — said Tuesday that he is confident the motion won’t be approved.
“We don’t think [the motion] is going to go through,” Gallaher said while he was at Denver International Airport en route to Delaware, where a hearing is scheduled Wednesday in U.S. Bankruptcy Court.
The motion comes after AEXJet filed for bankruptcy protection Sept. 14, and court papers filed last month state that the airline is $66.9 million in debt, including $30 million to two aircraft leasing companies — JLT Aircraft Holding Co. and Walker Aircraft.
The two Minnesota firms filed the motion arguing that because AEXJet “is apparently unable to pay its operating expenses, JLT and Walker believe that (AEXJet’s) continued presence in chapter 11 will only result in further losses to the bankruptcy estate.”
JLT and Walker also contend that AEXJet’s pending merger with Arkansas-based Pinnacle Airlines would increase AEXJet’s debt, and, in turn, “negatively impact creditors by decreasing their chances for recovery.”
7 November 2007
Brazilian airline BRA asks for temporary suspension amid financial problems
New reports state that Brazilian airline BRA announced Tuesday that it had asked for the temporary suspension of all its domestic and international fights because of financial problems.
In a statement, the carrier said it would await investments to eventually resume operations after asking the National Civil Aviation Agency (ANAC) to grant the suspension.
BRA denied the allegation that it had declared bankruptcy, while indicating that it would need approximately 30 million U.S. dollars to come back to business.
With a fleet of 10 aircraft, the company has 26 destinations in Brazil and three abroad. It operates 35 domestic and five international flights per week, representing 4.6 percent of the country's total.
BRA also advised passengers to contact the company to have their tickets refunded or transferred to other airlines.
The suspension will leave 1,100 workers jobless. The company said it had notified the employees of the decision.
7 November 2007
Goldman Sachs To Advise Air One In Alitalia Bid
New reports state - ROME -(Dow Jones)- The holding company of Italian airline Air One said Tuesday that Goldman Sachs (GS) will act as adviser for a bid it is preparing, with the support of Italian bank Intesa Sanpaolo (ISP.MI), for Alitalia SpA (AZA.MI).
In a statement, AP Holding said Nomura Holdings (NMR) and other investment banks would also take part in the deal to buy a controlling stake in Alitalia held by the Italian Treasury, without providing details.
The Italian government has this year been struggling to sell its 49.9% stake in loss-making Alitalia. A tender organized by the Treasury was scrapped in July after Air One, Italy's second-biggest carrier by passenger numbers after Alitalia and the last credible buyer left in the running, pulled out saying the sale terms didn't give it a free enough hand to implement a restructuring strategy.
* IPP continue to offer cover for this airline
7 November 2007
FRONTIER AIRLINES HOLDINGS
Press reports state that FRONTIER AIRLINES HOLDINGS, a lagging low-cost carrier in a troubled industry, has watched its stock sputter along for nearly two years. But after a stand-out September quarter and with a new chief executive in the pilot's seat, the airline could be in for a turnaround.
Frontier flies routes to 47 cities in the U.S. out of its Denver hub, as well as to seven cities in Mexico and two in Canada. The $258 million company has held its own against UAL's United Airlines for years, but ever since Southwest Airlines began flying out of the Mile High City, Frontier's stock has fallen 24%. Frontier has also lost money in three out of the past four quarters.
7 November 2007
Big Sky Airlines loss
News reports state that Big Sky Airlines parent MAIR Holdings reported a $2.5 million loss in the fiscal second quarter ended Sept. 30, unchanged from the year-ago period. Revenue climbed 46.4% to $9.05 million while expenses rose 29.9% to $12.5 million, resulting in a flat operating loss of $3.4 million. Big Sky, which serves 26 cities with 13 Beech 1900Ds as a Delta Connection partner and in codeshare with Northwest Airlines, Alaska Airlines, Horizon Air and US Air, flew 14.8 million RPMs during the quarter, up 63.5%. Capacity rose 28.8% to 28.5 million ASMs, lifting load factor 11 points to 52%. Fiscal first-half result swung to a $4 million profit from a $5 million deficit in the year-ago period.
6 November 2007
National Airline On Verge Of Bankruptcy
Press statements report that the government-run airline in the Marshall Islands is on the verge of bankruptcy as the country continues to suffer with no domestic air service.
Last week, the government injected $200,000 to the struggling airline, which has been going through payless paydays for lack of revenue.
5 November 2007
Air Deccan registers highest loss ever
Press reports state that Air Deccan registers highest loss ever, poorer by Rs253 cr in Q1. The performance signals continued financial challenges for a carrier attempting to reinvent itself after a buyout and a new chief executive took over at the helm of the airlineMehul SrivastavaCosts of an ongoing merger, a lean passenger season, and softening ticket yields have seen India’s biggest low-cost airline, Air Deccan, posting its largest ever quarterly net loss of Rs253.18 crore in July-September, its first quarter this year, nearly six times the loss in the year-ago period.
The performance signals continued financial challenges for a carrier attempting to reinvent itself after a buyout and a new chief executive took over at the helm of the airline.
The losses in the comparable period last year were just under Rs43 crore for the quarter ended September 2006, but the airline then had seen a one-time income from outside sources made on asset sales. In just this one quarter, the airline’s losses equal 55% of the company’s annual losses for the last financial year, which it ended on 30 June with about Rs419 crore in the red.
5 November 2007
Pakistan's major airline suffers disappointment
Press statements report that the head of Pakistan International Airlines (PIA)is puzzled, six months into the job, why the business isn’t turning around.
Losses since the start of 2006 exceed half a billion dollars and PIA chairman Zafar Ahmad Khan says he is 'confused and disappointed'.
The total loss is about 2.5 times the market capitalisation of the state-run company.
Mr Khan is now convinced the airline will need to come up with a new game plan and new techniques.
2 November 2007
Alitalia
News reports state Alitalia Group's net debt as of Sept. 30 was €1.71 billion, an increase of 6% from the prior month. The company repaid €13 million worth of medium/long-term financing in September.
Despite this report IPP continue to offer cover for this airline.
2 November 2007
SpiceJet
News reports state that SpiceJet reported a INR377.7 million ($9.6 million) loss in its fiscal second quarter ended Sept 30, widened from a INR319.1 million pro forma deficit in the year-ago period. The carrier changed its financial year to April-March from June-May, meaning it did not report official results for the July-September 2006 period. Second-quarter revenue rose 64.6% to INR2.7 billion and pre-tax loss widened to INR374.7 million from INR310.8 million. Six-month loss of INR192.3 million was an improvement from a INR355.9 million loss in the semester ended Sept. 30, 2006.
Despite these reports IPP continue to offer cover for this airline
1 October 2007
Vueling sees possible loss in 2007
News reports state that Spanish airline Vueling (VULG.MC: Quote, Profile, Research) said on Monday it could not meet its 2007 financial targets due to falling ticket prices and rising fuel costs, marking its second profit warning in three months.
The Barcelona-based airline said earnings before interest, tax, depreciation and aircraft rentals (EBITDAR) could fall to a loss of up to 10 million euros, compared with a previous forecast of a profit between 23 million and 42 million euros.
In a statement to the Spanish stock exchange regulator, Vueling said fuel prices, the euro-dollar exchange rate and the availability of slots at airports were among factors hitting results.
It said a 10 percent reduction in income from ticket prices per passenger could cut the company's full-year financial results by 30.4 million euros.
Vueling did not specify which line of the income statement it was referring to.
Spanish news agency Efe reported on Monday that Vueling could warn the market of expected losses of over 50 million euros this year.
Last year the airline lost 10.78 million euros but forecast moving into net profit in 2007.
In its statement on Monday, Vueling also said it was cancelling a tax credit it had booked in the first-half, knocking 21.9 million euros off its balance sheet.
Vueling shares were first rocked in June when founding shareholder Apax Partners sold its 21 percent stake, and fell further in August when it published deepening first-half losses and warned that core earnings would not hit the 95 million euros forecast last November.
Then last week the airline's chairman and two other directors, representing its largest shareholder Hemisferio, resigned after differences over the company's commercial strategy.
The stock has lost two-thirds of its value so far this year.
The company named Barbara Cassani, the founder of former British low-cost carrier Go, as chairwoman.
In an interview with Reuters, she said the airline had to move away from its reliance on Internet sales and she backed the strategy of Chief Executive Carlos Munoz to slow route expansion but increase the frequency on some routes to lure business flyers.
The bourse regulator suspended trade in its shares on Monday before the market opened while it waited for information from the company.
26 September 2007
Alitalia chairman tells parliament 'comatose' carrier
Alitalia Chairman Maurizio Prato testified before an Italian parliamentary committee yesterday that the troubled airline is in even worse shape than is generally acknowledged, a striking admission given the already wide acceptance of AZ's financial difficulties.
"Alitalia is in a comatose state, it's on life support and I am very surprised by the almost general state of denial," Prato told lawmakers, according to multiple news reports. He said the carrier likely will post a full-year loss of about €400 million ($564 million) and does not have the resources to make more than €320 million in debt payments due over the next two years.
Despite Alitalia's current uncertainty, IPP continue to offer cover for this airline
14 June 2007
** European Air Express to end operations as of September
News reports state that European Air Express is to end operations from 30th September 2007. It operated scheduled passenger services from and withing Germany.
31 May 2007
Northwest Airlines
Northwest Airlines has emerged from Chapter 11 bankruptcy protection with effect from 31 May 2007. In accordance with the terms of our policy, cover for Scheduled Airline Failure is now reinstated for this airline from this date.
All tickets issued during the period of Chapter 11 bankruptcy protection (14 September 2005 to 30 May 2007) will not be covered.
30 April 2007
Delta Airlines
Delta Airlines has emerged from Chapter 11 bankruptcy protection with effect from 30 April 2007. In accordance with the terms of our policy, cover for Scheduled Airline Failure is now reinstated for this airline from this date.
All tickets issued during the period of Chapter 11 bankruptcy protection (14 September 2005 to 29 April 2007) will not be covered.
17 April 2007
LAB Airlines (Lloyd Aereo Boliviano)
Please be advised that operations for LAB Airlines (Lloyd Aereo Boliviano) have been suspended by IATA with effect from 3 April 2007 until further notice.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
2 March 2007
Fly Me Sweden AB
Recent press reports have brought to our attention that Fly Me Sweden AB intends to file for bankruptcy and has ceased all operations with effect from 2 March 2007.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
14 February 2007
Slovak Airlines
Recent press articles have brought to our attention that Slovak Airlines will enter bankrupty proceedings following majority owner Austrian Airlines Group’s decision to take possession of two of its three aircraft.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
18 December 2006
Air Madrid
Recent press articles have brought to our attention that Air Madrid has halted operations following the suspension of their operating license. In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Any tickets issued on Air Madrid on or after 15 December 2006 will not be covered.
All tickets issued prior to 15 December 2006 will be covered and claims accepted in the event that the airline fails financially.
2 November 2006
Ajet (formerly Helios Airways)
Recent press articles have brought to our attention that Ajet (formerly Helios Airways) has halted operations following the suspension of their operating license due to financial difficulties. In accordance with the terms of our policy cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Any tickets issued on Ajet on or after 2 November 2006 will not be covered.
All tickets issued prior to 2 November 2006 will be covered and claims accepted in the event that the airline fails financially
15 September 2006
Origin Pacific
Recent press information and an announcement on Origin Pacific’s website confirmed that this Nelson-based (New Zealand) regional airline is in receivership and has ceased to trade with effect from 15 September 2006. Therefore, all tickets issued prior to 15 September 2006 are covered under the terms of IPP’s Scheduled Airline Failure Insurance providing an Origin Pacific document has been issued.
12 September 2006
BWIA
Recent press information has brought to our attention an announcement from BWIA that it is to shut down by 31 December 2006 with ongoing financial difficulties. In accordance with the terms of our policy cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Any tickets issued on BWIA on or after 12 September 2006 will not be covered.
All tickets issued prior to 12 September 2006 will be covered and claims accepted in the event that the airline fails financially.
20 July 2006
Air Turquoise
On July 18th 2006, Air Turquoise declared the suspension of payments at the Tribunal of Commerce in Reims. The company was heard by the court on July 19th 2006. The judgement was pronounced at 2pm : the company was put in liquidation with a continuation of activity until July 31st, 2006. This continuation period has been set to give potential investors time to make an offer to purchase the company's assets. The court has appointed Me Jean-Luc Mercier to manage the request for proposal process.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
27 March 2006
Styrian Spirit
Recent press information and an announcement on Styrian Spirit’s website has confirmed the insolvency proceedings of this airline as from 27th March 2006, therefore all tickets issued prior to 27th March 2006 are covered under the terms of IPP’s Scheduled Airline Failure Insurance Policies provided a Styrian Spirit document has been issued.
24 February 2006
Aloha Air
Aloha Air exited Chapter 11 bankruptcy protection on 24 February 2006. In accordance with the terms of our policy, cover for Scheduled Airline Failure is now reinstated for this airline from this date.
1 February 2006
United Airlines
United Airlines exited Chapter 11 bankruptcy protection on 1 February 2006. In accordance with the terms of our policy, cover for Scheduled Airline Failure is now reinstated for this airline from this date.
1 January 2006
European Commission Bans 92 Airlines from operating in the EU
The safety of air transport has been a top priority for the European Community ever since the introduction of a common air transport policy. Regulation 2111/2005 EC, which entered into force in January 2006, is a further step towards enhancing European air safety and passenger protection by allowing the European Commission to ban or restrict the activities of unsafe airlines within the European Union.
The Commission has consequently established an initial list of airlines considered to be unsafe and therefore not permitted to fly passengers or cargo in the EU or operate within European airspace.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for these Airlines. A list of the banned Airlines can be found listed on the European Unions website by clicking the following link
7 November 2005
FLYi / Independence Air
Recent press information has brought to our attention that US based FLYi Inc and its subsidiaries, including low-cost airline Independence Air, filed for Chapter 11 Bankruptcy Protection on 07 November 2005.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Please be advised that any tickets issued for FLYi / Independence Air from 07 November 2005 will not be covered in the event that the airline fails financially.
All tickets issued prior to 07 November 2005 will be covered and claims will be accepted in the event that the airline fails.
18 October 2005
Olympic Airlines
Olympic Airlines has been placed in temporary creditor protection. Until further notice, and in accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline. Please be advised that any tickets issued for Olympic Airlines from 18 October 2005 will not be covered in the event that the airline fails financially.
All tickets issued prior to 18 October 2005 will be covered and claims will be accepted in the event that the airline fails. Should Olympic Airlines withdraw from creditor protection, and cover be reinstated, we shall advise you.
13 October 2005
Mesaba Airlines
Recent press information has brought to our attention that regional US carrier, Mesaba Airlines
(code XJ), filed for Chapter 11 Bankruptcy Protection on 13 October.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Please be advised that any tickets issued for Mesaba Airlines from 13 October 2005 will not be covered in the event that the airline fails financially.
All tickets issued prior to 13 October 2005 will be covered and claims will be accepted in the event that the airline fails.
Should Mesaba Airlines withdraw from Chapter 11 protection cover will be reinstated with immediate effect, following written notification from the airline.
27 September 2005
US AIRWAYS
US Airways, exited Chapter 11 bankruptcy protection on 27 September 2005. In accordance with the terms of our policy, cover for Scheduled Airline Failure is now reinstated for this airline from this date.
Please be advised that any tickets issued on US Airways from 27 September 2005 will be covered in the event that the airline fails financially.
All tickets issued during the period of Chapter 11 bankruptcy protection (13 September 2004 to 26 September 2005) will not be covered.
15 September 2005
NORTHWEST AIRLINES
The 4th largest airline in the United States, Northwest Airlines , filed for Chapter 11 bankruptcy on 14September 2005.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Please be advised that any tickets issued for Northwest Airlines from 14 September 2005 will not be covered in the event that the airline fails financially.
All tickets issued prior to 14 September 2005 will be covered and claims will be accepted in the event that the airline fails.
Should Northwest withdraw from Chapter 11 protection cover will be reinstated with immediate effect, following written notification from the airline.
For further information, please see their website: www.klmtradeuk.com
15 September 2005
DELTA AIR LINES
The 3RD largest airline in the United States, Delta Air Lines, filed for Chapter 11 bankruptcy on 14September 2005.
In accordance with the terms of our policy, cover for Scheduled Airline Failure is withdrawn with immediate effect for this airline.
Please be advised that any tickets issued for Delta from 14 September 2005 will not be covered in the event that the airline fails financially.
All tickets issued prior to 14 September 2005 will be covered and claims will be accepted in the event that the airline fails.
Should Delta withdraw from Chapter 11 protection cover will be reinstated with immediate effect, following written notification from the airline. For more information please see Delta’s website www.delta.com
27 July 2005
EUjet
EUjet, a low cost carrier based at Kent International Airport, Manston, has suspended all flight operations following its parent company, Planestation, filing for voluntary administration on 26th July. All tickets issued prior to 26th July are covered under the terms of IPP’s Scheduled Airline Failure Insurance Policies.
7 June 2005
Varig Brazilian Airlines (Viacao Aerea Riograndense SA)
Varig Brazilian Airlines (Viacao Aerea Rio-Grandense SA), Latin America’s biggest airline, filed for protection from creditors in Brazil and the US on Friday 17 June 2005 as it seeks to restructure its mountain of debt. Varig, founded 78 years ago, is the first company to seek protection under Brazil’s week-old bankruptcy law. Varig carries 13 million passengers annually and has 11,456 full-time employees. The company has service to 36 cities in Brazil and destinations in 20 additional countries, according to court papers. IPP policy holders should be aware that the conditions in their Policy relating to carriers under bankruptcy protection (such as Chapter 11) apply. All tickets issued for Varig Brazilian Airlines prior to 17 June 2005 are covered.
2 June 2005
Hawaiian Airlines
Hawaiian Holdings, the parent company of Hawaiian Airlines, announced that the airline emerged from Chapter 11 bankruptcy protection on 2nd June 2005. The requisite financing was secured to enable the company to exit Chapter 11. Consequently from this date this airline is now fully covered under IPP Scheduled Airline Failure Insurance policies.
30 December 2004
Aloha Airlines Inc
Aloha Airlines a US airline based in Honolulu, Hawaii, filed for Chapter 11 bankruptcy on 30 December 2004. The airline operates a fleet of 737 aircraft between Hawaii and the US and Canadian West coasts as well as inter-island services and services to US territories in the Pacific. The airline has pledged that it will be business as usual during the restructuring of the group and that emergence from Chapter 11 would be as expeditious as possible.
IPP cover for Aloha Airlines ticketed flights is withdrawn from the 30th December 2004. Any tickets issued prior to the 30th December 2004 are fully covered.
30 September 2004
AIR CANADA
Air Canada has exited the creditor/bankruptcy protection of the Canadian Courts under the Companies? Creditors Arrangements Act (CCAA) on the 30th September 2004.
The airline has successfully restructured and effected significant cost savings that ensure its future viability.
As a result, with effect from 30 September 2004, cover is reinstated under the terms of IPP?s Scheduled Airline Failure policies.
1 May 2004
Duo Airways Ltd
Duo Airways Ltd, a short-haul airline based in Birmingham, UK, ceased to trade on the 1st May 2004 and all flights were suspended then. Deloitte, of 201 Deansgate, Manchester, M60 2AT, have been appointed as administrators to Duo Airways Ltd. Tickets issued prior to 01 May 2004 are covered under the terms of IPP’s policies.
25 February 2004
Jetmagic
Jetmagic, a low cost regional Irish airline based in Cork, announced the suspension of its operations on 28th January 2004 and an Extraordinary Meeting of shareholders would consider winding up the company. The airline had routes to London City, Edinburgh, Liverpool and Belfast. Tickets issued prior to 28 January are covered under the terms of IPP’s policies.
25 March 2003
Avianca
Avianca, the Colombian Airline, has filed for Chapter 11 bankruptcy in the United States. This action has been taken to permit ‘aggressive restructuring’ of the company. Other companies in the alliance, Alianza Summa, (SAM and Aces of Colombia) are not affected. Under the terms of IPP’s Scheduled Airline Failure Policy, cover is withdrawn with effect from 21st March 2003, the date of the Chapter 11 filing. All tickets issued prior to this date are covered.
9 December 2002
UNITED AIRLINES
United Airlines, the second largest US and World airline, has filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code. The airline has pledged that it is business as usual and that during this period of creditor protection the airline will restructure its finances and rationalise its business plans, thus ensuring its stronger and more financially viable future. IPP Policy Holders should be aware that the conditions in their Policy relating to carriers under bankruptcy protection (such as Chapter 11) apply. All tickets issued for United Airlines prior to 9th December 2002 are covered.
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