CommercialMH370 Tips Malaysia Airlines Into Deeper LossMalaysia Airlines said the "dramatic impact" of the disappearance of flight MH370 pushed it to its worst quarter in over two years, hit by a sharp drop in overall passenger traffic and a slump in sales in China. In a statement on Thursday, MAS said its first-quarter net loss rose by nearly two-thirds to MYR443.4 million Malaysian ringgit (USD$138 million) from MYR278.8 million ringgit a year earlier. Beset by high costs and stiff competition from regional and global carriers, MAS has lost money for the last three years. The airline warned the disappearance of MH370 on March 8 has put "additional stress" on what it already expected to be a challenging year. MAS, 69 percent-owned by Malaysian state investor Khazanah, didn't provide financial targets for 2014, but said it is preparing a new business plan to cut costs.
LinkTechnical Problems Halt MH370 SearchThe search for missing Malaysia Airlines flight MH370 hit a fresh snag on Thursday after it was found the underwater drone at the heart of the operation had been damaged, forcing what could be another lengthy delay. The Australian agency coordinating the search effort, now in its third month, said communications equipment on the Bluefin-21 drone was damaged on its first day back after almost two weeks away for maintenance and resupply. The issue was discovered on Wednesday, the Joint Agency Coordination Centre (JACC) said, just two hours into the drone's first mission since returning to the search area in the Indian Ocean about 1,600 km (1,000 miles) northwest of the west Australian city of Perth.
LinkAir Canada Loss Widens, Embraer E190s To StayAir Canada said it would not replace 25 narrow-bodied Embraer E190s, dealing a temporary blow to Bombardier's hopes of pushing its CSeries aircraft into the company's fleet. The C-Series, which has been dogged by multiple delays and cost overruns, was in the running to replace the 25 Embraers, which are part of Air Canada's fleet of 45 E190s. "After careful consideration, Air Canada has decided to continue to operate the (Embraer) aircraft given their young age, productivity and high customer acceptance on existing routes and to avoid additional capital expenditures and debt," the carrier said in a statement on Thursday.
LinkEtihad Plan Sees Alitalia Profitable By 2017Alitalia could return to profit by 2017 under a turnaround plan presented by Etihad Airways as part of tie-up talks between the two carriers. Alitalia was kept afloat by a government-engineered EUR€500 million (USD$686 million) rescue package last year but needs to find a cash-rich partner quickly to revamp its flight network or risk having to ground its planes. Abu Dhabi-based Etihad has been looking at a possible investment in Alitalia since the start of the year. But the prospect of large job cuts at Alitalia and the airline's debt of at least EUR€800 million have been major hurdles in the talks. A source said Etihad's plan sees Alitalia reaching a net profit of EUR€108 million by 2017, revenues of EUR€3.66 billion and earnings before interest, tax, depreciation and amortization of EUR€526 million, but its proposal is tied to demands around debt that have yet to be tackled.
LinkRepublic puts off decision on CSeries orderRepublic Airlines has put off making a decision on its order for 40 Bombardier CSeries aircraft for the time being, says chief executive Bryan Bedford. “We’re not talking about cancelling the order,” he says at the Regional Airlines Association (RAA) convention in St. Louis on 14 May. However, this does not mean that the order for the 138-seat CS300 aircraft is a sure thing. The Indianapolis-based carrier is focused on the profitability of its regional operations feeding mainline carriers currently, says Bedford. The CSeries does not necessarily fit with these operations, he adds.
LinkKenya Angry At Travel Warnings As Tourists LeaveKenya on Thursday rebuked Britain, the United States, Australia and France for issuing warnings about travel to the east African country and particularly its main port city after a series of attacks there. Kenya called the alerts "unfriendly", saying they would increase panic and play into the hands of those behind the gun and grenade assaults. Kenya has blamed bomb blasts in the capital Nairobi and the main port city Mombasa this month, as well as other attacks, on the al Qaeda-linked Somali group al Shabaab. The Islamist movement killed at least 67 people including foreigners in a raid on a Nairobi shopping mall in September, saying it was in revenge for attacks on its fighters by Kenyan troops in Somalia.
LinkAlaska to transport first load of Copper River salmonAlaska Airlines plans to fly the first load of Copper River salmon to the Seattle-Tacoma International Airport. Alaska will deliver 18,000 pounds of salmon aboard a Boeing 737 on Friday, and a portion of the salmon will be used for a cooking competition. An Alaska Airlines executive will help judge the 2014 Copper River Salmon Cook-off involving three chefs from the Seattle region.
LinkU.S. airline industry improves financial resultsThe U.S. airline industry is improving its financial results, and several U.S. carriers have started issuing quarterly dividends to shareholders and repurchasing stock. Delta Air Lines, Alaska Air Group and Southwest Airlines recently announced plans to boost quarterly dividends. All three carriers have also embarked on stock buyback plans.
LinkSouthwest to expand service, complete integration with AirTranSouthwest Airlines CEO Gary Kelly announced the carrier plans to add up to 50 destinations in the coming years and will complete its integration with AirTran Airways next year. "In 2015, all aircraft flying will be in Southwest livery and all employees will be in Southwest uniforms and badges," Kelly said. Of the 50 destinations, 25 will be added in the next three years. Shares of Southwest hit a 52-week high on the news, trading at $25.07.
LinkSouthwest to raise dividend, repurchase sharesGary Kelly, the CEO of Southwest Airlines, announced the carrier plans to boost its quarterly dividend and buy back $1 billion of stock. "Our balance sheet is very strong and our liquidity is very strong," Kelly said at Southwest's annual shareholder meeting.
LinkAmerican to debut new routes to Europe this month New Services to Charlotte Douglas International Airport. Starting 23rd May, American Airlines (operated by US Airways) will also launch two new nonstop services from Lisbon Airport (LIS) and Barcelona Airport (BCN) to Charlotte Douglas International Airport (CLT). On 6th June American Airlines (operated by US Airways) will launch Brussels Airport (BRU) to Charlotte (CLT). These routes will complement the existing services from the same European airports to Philadelphia (also operated by US Airways). In Barcelona and Manchester, this will take the combined airline’s service to four daily departures to the US: American also flies Barcelona to Miami (MIA) and New York (JFK) and Manchester to New York (JFK) and Chicago (ORD).
LinkCost for Philadelphia airport improvements soars to $7.5BThe latest cost estimate for the expansion of Philadelphia International Airport has grown to $7.47 billion, according to CH2M Hill. Airlines have expressed concern over the price tag for the improvements, especially plans for a new runway. American Airlines spokeswoman Andrea Huguely said "a new runway will not solve the delay problem without significant airspace changes in the region."
LinkStar Alliance: Lower prices for globe-circling business travelStar Alliance has cut fares for around-the-world travel for business class, with the base package now $2,000 less than it was before the new offer. The new fares are aimed at pulling in smaller businesses who may see the packages as a way to hit multiple global business markets in a single trip.
LinkJetBlue password rule a legacy of rotary phones JetBlue has a funky rule for its frequent flyer members. Make whatever password you want. Just don't use a letter 'Q' or 'Z.' The dangerously lame "Password1" is okay, but "QueazyQuetzal" is not. How quizzical. As it turns out, the rule stems from the old school limitations of making travel reservations by phone. First a little history. Booking flights in the 1950's was a total pain. Without a computer network to avoid double-booking a seat, airline operators would huddle close together and jot down reservations by hand.
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