ATW Daily News

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Monday November 9, 2009

Norwegian will issue up to 1.62 million new shares, corresponding to some 5% of the outstanding total, in a capital raising expected to generate NOK250-NOK260 million ($43.9-$45.7 million) based on Friday's closing price. "We see new opportunities ahead. This combined with Norwegian's positive development makes the timing good for strengthening the company's financial position and flexibility even further," CEO Bjorn Kjos said. HBK Invest AS, a company controlled by Kjos and DY Chairman Bjorn Kise, will reduce its holding in the airline from approximately 32% to around 29%. "Norwegian has reached a size where I find it natural to open up for new investors, both Norwegian and international ones. The goal is to build a strong and committed investor base for further expansion. In addition, more available shares will make the share more attractive," Kjos said.

Thai Airways President Piyasvasti Amranand said the airline "certainly" will post a net profit in 2010, although he remains unsure about this year's result, according to Reuters. It was THB2.47 billion in the black through the first half (ATWOnline, Oct. 20).

Separately, it named director Woranate Laprabang as VP-corporate strategy and planning, director Jirawan Chiasakul as VP-information technology services and director Ruangyos Pamonmontri as VP-sales and distribution.

Airbus on Friday confirmed Turkish Airlines' order for three A330-300s and an MOU for two A330-200Fs. It said the 319-seat -300s will begin delivering in September 2010 rather than the originally reported 2012 (ATWOnline, Nov. 3). THY now has ordered 10 A330-300s.

Air India pilots represented by the Indian Commercial Pilots' Assn. reiterated their threat to strike on Nov. 24 unless all demands are met by this Tuesday (ATWOnline, Nov. 4). The pilots want their flying allowances--which they say have not been paid for two months--restored and object to the fact that "foreign pilots who are employed by the company are being paid approximately 30% more" than Indian nationals and are being paid promptly, ICPA Secretary S. Sabu told The Economic Times.

Aeroflot took delivery of its sixth A330-300 last Thursday on lease from AerCap. Aircraft is powered by Trent 772s and is painted in SkyTeam livery. Four more are expected through April.

Etihad Airways and Flybe announced a codeshare deal under which the UK airline will place its code on EY's flights from Paris Charles de Gaulle, Frankfurt and Manchester to Abu Dhabi while EY will add its code to "a number" of BE flights between CDG, FRA, MAN and 35 UK airports.

Delta Air Lines flew 15.3 billion system RPMs in October, a 6.5% decrease year-over-year. Capacity dropped 8.3% to 18.18 billion ASMs and load factor rose 1.6 points to 84.2%.

American Airlines flew 10.24 billion system RPMs in October, down 2.6% from the year-ago month. Capacity dropped 7.3% to 12.33 billion ASMs, lifting load factor 4 points to 83.15%. American Eagle flew 680.1 million system RPMs, up 6%, against a 0.7% lift in capacity to 927.4 million ASMs. Load factor was up 3.7 points to 73.3%.

US Airways said October consolidated passenger RASM fell some 10% year-over-yea and "the revenue outlook continues to show material signs of improvement with continued strength in both close-in bookings and yields." It flew 4.86 billion consolidated RPMs during the month, down 0.6%, against a 1.7% cut in capacity to 5.92 billion ASMs. Load factor rose 1 point to 82.2%.

Southwest Airlines flew 6.33 billion RPMs in October, a 1.9% rise year-over-year, while capacity was cut 9.4% to 7.99 billion ASMs. Load factor surged 8.8 points to 79.2%.

AAR Corp. said it amended its parts supply and maintenance contracts covering Mesa Air Group's CRJ200 and ERJ-145 aircraft "to provide Mesa with increased flexibility to respond to demand fluctuations in the 50-seat aircraft market." AAR said it will receive a cash payment as well as 15 million shares of Mesa common stock. It will return to Mesa $6.1 million aggregate principal amount at maturity of Mesa's 2023 notes and said it does not expect to increase its stock ownership in the regional airline company.