Asia/Pacific

ATW Daily News

Restructuring JAL surges back to profit in FY07

Monday May 12, 2008

Japan Airlines Group announced a significant earnings turnaround to a net profit of ¥16.9 billion ($162.1 million) for the fiscal year ended March 31 from a loss of ¥16.2 billion the prior year on the back of premium strategies on its international operation and route restructuring on its domestic network. [more]

Monday May 12, 2008

Qantas is holding fast in an upcoming pay dispute with engineers who are threatening a series of work actions beginning this week. CEO Geoff Dixon said the Australian Licensed Aircraft Engineers Assn. advised the carrier that overtime bans would commence May 15, with 4-hr. "stop work meetings" scheduled for May 16 and 23. "Against a background of lengthy Enterprise Bargaining Agreements negotiations over 19 months, and the union reneging on its 'in principle' agreement, the ALAEA is now choosing to disrupt Qantas customers," Dixon said, adding that QF expected delays as a result but that all passengers would reach their destinations on the days in question.

"Qantas has made it very clear. We will not break our wages policy of 3% annual pay increases and a 1% additional superannuation contribution as we reinvest our profits in aircraft purchase to continue to grow Qantas in difficult times," Dixon said. The carrier has had a long-running battle with engineers who have orchestrated a public campaign questioning its move to shift more maintenance offshore.

Spring Airlines plans to order 30 A320s

Friday May 9, 2008

Shanghai-based Spring Airlines plans to order 30 A320s and expand its fleet to 100 aircraft by 2015, according to Chairman Wang Zhenghua. [more]

Hainan courting alliances

Thursday May 8, 2008

Hainan Airlines still is exploring the possibility of joining an alliance although it has not made a firm decision, Liang Pubin, GM of the carrier's Brussels office, told ATWOnline. "We have a team that is exploring the possibility," he said. "The general idea is that it is a necessity to join an alliance, but we have to research the actual advantage and disadvantages of becoming an alliance member and then of course, we have to see what the possibilities are. It's not because you want to join a certain alliance that you can join." There has been speculation that HNA Group, China's fourth-largest aviation company with a fleet of 144 aircraft and four airlines (Hainan, China Xinhua Airlines, Chang'an Airlines, and Shanxi Airlines), has expressed interest in joining oneworld, but Liang would not confirm.

He also said the carrier's long-haul network expansion in on course. A four-times-weekly Beijing-Seattle will commence June 9--Hainan's first North American flight--and a four-times-weekly Beijing-Berlin Tegel begins Sept. 5. It has applied for rights to a thrice-weekly Beijing-Cairo and a twice-weekly Beijing-Guangzhou-Johannesburg, both aboard A340s. It also is seeking regulatory approval to launch thrice-weekly Beijing-Shanghai-Brussels to complement its current four-times-weekly PEK-BRU. The latter service recently was upgraded from a 767 to a new A330-200 and is slated for another upgrade to A340s this summer, depending on the arrival of the three ex-Cathay Pacific Airways A340s it has leased from ILFC.

Thursday May 8, 2008

Tiger Airways enjoyed an 81.6% increase in revenue for the fiscal year ended March 31 on a 50% rise in passengers to 2.3 million. Full-year capacity climbed 39.6% and load factor rose 8 points. The Singapore-based LCC did not provide further details and said full results will be released following a formal audit. It said it "anticipates a strong financial performance." It currently operates 12 A320 family aircraft and said it is bringing forward some deliveries "in response to the strong demand for its low-fare flight services." It issued an RFP to raise $225 million in engine and aircraft financing for four A320s.

Thursday May 8, 2008

Australia's Regional Express (Rex) has been forced to cut more services because of the continuing pilot shortage (ATWOnline, Nov. 6, 2007). It will withdraw from the Cooma-Sydney route indefinitely--it was scheduled to recommence in June--as well as reduce flying elsewhere in the network. GM-Network Strategy and Sales Warrick Lodge said Rex expects a reduction in recruitment activities by major carriers over the winter period but in April it suffered 5% attrition in its pilot ranks, with the rate tracking at more than 50% for the year. Other changes in the network include a 3% cut in lower-demand weekend flights. Routes impacted are Adelaide-Mount Gambier, Melbourne-Mount Gambier, Melbourne-Mildura, Melbourne-Albury and Sydney-Griffith. Rex is Australia's largest independent regional, operating a fleet of 38 Saab 340s on more than 1,200 weekly flights to 23 destinations from Sydney, Melbourne and Adelaide.

Mitsubishi set to partner with Saab on MRJ customer support

Wednesday May 7, 2008

Mitsubishi Aircraft Corp. and Saab said they are working to forge a partnership agreement in which the Swedish manufacturer will provide customer and product support services for the new Mitsubishi Regional Jet. [more]

China Eastern shareholders to reconsider SIA bid following Olympics

Wednesday May 7, 2008

China Eastern Airlines plans to schedule a second shareholder conference to consider Singapore Airlines' bid for a strategic stake following the Aug. 24 conclusion of this summer's Olympic Games. CEA minority shareholders rejected SIA's purchase of a 24% stake in January (ATWOnline, Feb. 14). "So far there is no specific timetable for our second shareholders conference, as all Chinese domestic carriers currently are busy with preparing for the upcoming Beijing Olympic Games," CEA Board Secretary Luo Zhuping said yesterday while confirming the carrier will set a new vote after the Olympics.

Meanwhile, CEA rejected widespread reports that it is considering resubmitting SIA's bid at its annual shareholders conference scheduled for June 30. SIA spokesperson Stephen Forshaw said the carriers remain in negotiations and confirmed that "no timetable has been fixed for the second shareholders conference."

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