Skyteam news

[Ken M. 0]

KLM B738 Retrojet

 

Pieter,

 

Got any info on this?

Would love to see a B738 in old KLM livery.

 

Regards,

Ken

[Pieter C. 5]

KLM B738 Retrojet

 

Pieter,

 

Got any info on this?

Would love to see a B738 in old KLM livery.

 

Regards,

Ken

 

Ken,

 

PH-BXA will enter the deco-bay on 21st of December and should be ready on 31st of December, just in time for the 2009 launch (year) of KLM's 90th Anniversary

 

Further Skyteam-news:

 

Minneapolis to be 'Delta North' headquarters

 

Wednesday December 17, 2008

Delta Air Lines and the Metropolitan Airports Commission, which manages Minneapolis-St. Paul International, reached a tentative agreement that will allow the airline to largely retain financial benefits that subsidiary Northwest Airlines received for maintaining its headquarters and primary hub there.

 

In exchange, the combined carrier will base its "Delta North" headquarters in Minneapolis, keep 10,000 NWA/DL employees based there--1,500 fewer than were based at NWA HQ prior to the merger--and operate at least 400 daily flights at MSP.

 

Under terms of long-time NWA/MAC pacts, if NWA moved its headquarters the airport authority could demand immediate payback of a $245 million loan given to the carrier in the form of bonds in 1992 as well as withdraw from rent-reduction and concessions/parking revenue-sharing agreements at MSP that saved NWA about $12 million annually.

 

DL decided to transfer all main headquarters operations to its Atlanta base post-merger, which angered Minnesota officials and caused MAC to assert that NWA had "a legal commitment to this state".

 

Under an agreement outlined to the Associated Press and Minnesota media, DL said it would pay off the bonds, originally due in 2022, by 2016 and also pay an extra $500,000-$1 million in annual rent.

 

DL will move Compass Airlines, a wholly owned NWA subsidiary currently based in Chantilly, Va., near Washington Dulles, to Minneapolis. DL's regional airline operations will be managed from the Delta North offices. MAC is expected to approve the deal officially next month

 

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Alitalia, Lufthansa Synergies Could Be EUR500 Mln

 

December 17, 2008

Should Italian carrier Alitalia pick Lufthansa as its partner, synergies will be more than EUR500 million euros, a member of the German airline's board said in an interview published on Wednesday.

 

A group of Italian investors is relaunching Italy's flag carrier as a smaller airline. The company has said Air France-KLM and Lufthansa are battling for a stake of up to 25 percent.

 

"If the new Alitalia picks Lufthansa, there will be synergies of more than EUR500 million," Holger Hatty, a member of Lufthansa's board and the company's representative in talks with CAI, told Italian newspaper Il Messaggero.

 

He said "the entry into a multi-hub and multi-brand network will allow the Italian company to be an equal, autonomous and strong partner."

 

Hatty said Lufthansa had sent its partnership proposal to CAI and was waiting for a response.

 

"It is wrong that Lufthansa is only ready to come in if it will have 45 percent of the capital," he said.

 

"We want to have two hubs. (Rome's) Fiumicino and (Milan's) Malpensa... The two will be equal -- Rome will focus on tourism... Milan will focus on business."

 

The head of CAI has previously said the prospective roles of both Fiumicino and Malpensa under an alliance would play a key role in the decision on which partner is chosen.

 

Plans that affect airport hubs are controversial in Italy, and Alitalia's decision to cut back at Malpensa set off a backlash from politicians and workers in Italy's north.

 

A source close to the talks has said British Airways will consider whether it is willing to buy a stake in Alitalia. Unlike the French and German carriers it has said it is only interested in a commercial deal with the Italian carrier.

 

But CAI says it would favor striking an alliance with a foreign airline willing to buy a stake rather than seeking a commercial deal.

 

(Reuters)

 

KLM Buys Martinair Stake After EU Approval

 

December 17, 2008

Denmark's A.P Moller-Maersk said it had sold its 50 percent stake in Martinair to Air France unit KLM after EU competition regulators approved the sale.

 

The Commission had opened an in-depth investigation in September because of concerns regarding the deal's potential impact on transport in particular between Amsterdam and Curacao and Aruba in the Dutch Antilles.

 

However, it said the investigation, which included a consumer survey at Amsterdam Airport, showed that the transaction would have only a limited market impact.

 

"I was very conscious of the need to safeguard the interests of consumers flying to long-haul holiday destinations," EU Competition Commissioner Neelie Kroes said in a statement.

 

"After a thorough investigation, I am now satisfied that consumers will continue to have a competitive choice of airline services after the acquisition of Martinair by KLM".

 

KLM already owns the other half of Martinair -- an operator of charter flights and freight services.

 

Maersk said in a statement the sale would be effective December 31 this year but gave no further details.

 

(Reuters)

 

 

[Pieter C. 5]

KLM consolidates in Amsterdam with Martinair acquisition approval

 

Thursday December 18, 2008

KLM finally will become the sole owner of Martinair after the European Commission approved the Dutch flag carrier's proposal to acquire the 50% stake owned by A.P. Moller-Maersk Group.

 

The EC opened an in-depth investigation in September citing concerns of the transaction's potential impact on passenger transport, in particular between Amsterdam and Curacao and Aruba. Yesterday Competition Commissioner Neelie Kroes said she was "now satisfied that consumers will continue to have a competitive choice of airline services." Effects of the transaction would be limited not only because KLM already jointly controls Martinair "but also because Martinair's competitive strength has been constantly decreasing and, to regain its strength, Martinair depends on KLM's agreement to a renewal of its long-haul passenger fleet."

 

The EC also acknowledged that TUI Travel subsidiary ArkeFly operates the two routes and thus "any price increases on the part of the merged entity would be likely to be unprofitable."

 

KLM took an initial stake in AMS-based Martinair in 1968, but earlier attempts to gain full control of the smaller charter and cargo carrier failed to gain regulatory approval. KLM will buy A.P. Moller-Maersk's 50% stake by Dec. 31.

 

"With the European Commission approval, economies of scale and synergies become available. Plans for the future of Martinair within the Group will be developed in the coming period," KLM President and CEO Peter Hartman noted.

 

Martinair President and CEO Paul Gregorowitsch said the approval was "encouraging news after a long period of uncertainty. . .The Martinair restructuring activities can be actively continued given this perspective." The carrier reported a €68.9 million ($94.5 million) loss in 2007, widened from a €7 million deficit in 2006.

 

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Dutch aviation now almost all owned by the AF-KL Group

Martinair and Transavia both 100% by KLM

VLM now 100% by Air France

Arkefly still independent and owned by TUI-Group...

We've to look particularly to Martinair's Cargo and Maintenance Divisions to see what will happen, now that MP has be 'taken over' by KLM...

[Guest MarcosMD11]

BRUSSELS, Dec 17 (Reuters) - Air France (AIRF.PA: Quote, Profile, Research, Stock Buzz) unit KLM won permission from EU competition regulators on Wednesday to buy airline Martinair Holland [MART.UL].

 

"I was very conscious of the need to safeguard the interests of consumers flying to long-haul holiday destinations," EU Competition Commissioner Neelie Kroes said in a statement.

 

"After a thorough investigation, I am now satisfied that consumers will continue to have a competitive choice of airline services after the acquisition of Martinair by KLM".

 

The European Commission had opened an in-depth investigation in September because of concerns regarding the deal's potential impact on transport in particular between Amsterdam and Curacao and Aruba in the Dutch Antilles.

 

However, it said the investigation, which included a consumer survey at Amsterdam airport, showed that the transaction would have only a limited market impact.

 

KLM owns 50 percent of Martinair -- an operator of charter flights and freight services -- and is seeking to buy the other 50 percent from sea and land transport company Maersk (MAERSKb.CO: Quote, Profile, Research, Stock Buzz). (Reporting by Mark John; Editing by Dale Hudson)

 

 

Finally Martinair is saved from bankcrupty.

[Ken M. 0]

KLM B738 Retrojet

 

Pieter,

 

Read on A.net that it's to be resprayed with the 60's diagonal two tone blue tail design.

I personally prefer the late 60's horizontal two tone blue tail design.

 

Either why I hope it gets a daylight rotation to GLA once it's out the paintshop and I manage to see it on a Runway 23 approach.

 

Ken

[Pieter C. 5]

Air France, Alitalia Talks For 2 More Weeks

 

December 19, 2008

Talks on a possible alliance between Air France-KLM and the consortium which bought Alitalia are set to continue for at least another two weeks, a legal source close to the matter said on Friday.

 

The Franco-Dutch carrier is tipped to win a battle with Lufthansa for a stake of up to 25 percent in Alitalia, which is being relaunched by the CAI consortium as a smaller, more efficient carrier.

 

CAI's senior executives have said they hope to propose their choice of a foreign partner to the consortium's board by the end of the year in order to have a deal in place when the airline is formally relaunched on January 13.

 

But the legal source said advisers to CAI and Air France-KLM were still working to resolve unspecified technicalities.

 

CAI has said it would favor Air France-KLM or Lufthansa over British Airways because the latter has said it is only interested in a commercial alliance, while the other two plan to buy a stake in the Italian carrier.

 

Italian media have said Air France-KLM is all but certain to notch up the alliance with Alitalia, helped by their long-term commercial ties.

 

The French carrier tried to buy Alitalia earlier this year, but the deal fell apart over union opposition. Both airlines are part of the Skyteam airline alliance.

 

(Reuters)

 

 

Kenya Air Warns Of Likely Service Disruptions

 

December 19, 2008

Leading African airline Kenya Airways warned on Friday its operations could be disrupted in the coming days if a fuel shortage in the country does not abate.

 

The carrier operates about 75 daily flights from Nairobi's main airport to 43 destinations.

 

East Africa's largest economy has a fuel shortage, which the state-owned Kenya Pipeline Corporation blamed on power outages at its pumping stations, according to local media.

 

"If the situation does not improve within the next one to two days, our operations will be severely affected," Kenya Airways chief executive Titus Naikuni said in a statement.

 

"I would like to assure our passengers that we are doing all we can to maintain our schedule integrity, especially during the festive season," Naikuni said.

 

The airline posted a 63 percent drop in pretax profits to KES1.05 billion shillings (USD$13.8 million) in the first half.

 

It blamed the weaker returns on high fuel prices, a strong local currency and a political crisis earlier in the year that discouraged visitors to the country.

 

(Reuters)

 

[Pieter C. 5]

Aeroflot May Manage Half Of Hungary's Malev

 

December 22, 2008

Aeroflot could manage a 49 percent of Hungarian rival Malev on behalf of Russian state bank VEB if the bank acquires the stake, a senior official from Russia's flag carrier said on Monday.

 

Last year, Hungary sold Malev to AirBridge, a firm part-owned by Russian businessman Boris Abramovich. The shares are held as collateral by VEB, which financed the privatization.

 

"Aeroflot can become VEB's managing agent for Malev," said Mikhail Poluboyarinov, Aeroflot's chief financial officer.

 

"Theoretically such an option is possible... It would be interesting for us professionally," he added.

 

(Reuters)

 

Many Hungarians will think back to 1953

 

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Aeroflot Flight Returns To Athens After Bomb Threat

 

December 22, 2008

An Aeroflot flight from Athens to Moscow turned back in midair on Monday after receiving an anonymous bomb threat, but no explosives were found after police searched the plane in the Greek capital.

 

The Airbus A319 carrying 49 passengers had been flying for around an hour when officials at Athens' Eleftherios Venizelos International Airport ordered it to turn back.

 

"An unknown man called and said there was a bomb on the Aeroflot plane headed from Athens to Moscow," a Greek civil aviation official said.

 

"We told the pilot to return to Athens for the appropriate checks. The plane was near the border with Turkey at the time."

 

Passengers were quickly disembarked from the flight and police conducted a thorough search but failed to find any explosives.

 

An airport official said that the aircraft would fly to Moscow later in the day.

 

(Reuters)

 

Good load !!!

[Pieter C. 5]

Aeroflot Sees Record 2009 Profits

 

December 25, 2008

Russia's flag carrier Aeroflot said on Thursday it hoped to boost profit to about 9.3 billion roubles (USD$328.3 million) in 2009, more than in any other year, despite expectations of weaker demand for air travel.

 

The company said in a statement it hoped to meet the profit target by replacing fuel guzzling jets with fuel efficient airliners and reducing administrative staff.

 

Aeroflot officials had earlier forecast a 10 to 20 percent drop in Russian traffic volumes next year as corporate clients cut back the number of business trips during the financial crisis.

 

It had also said net profit for 2008 would come in at around USD$85 million, compared with nearly USD$313 million last year, which has so far been its record year in terms of earnings. The fall is due to higher fuel costs and weaker demand for travel.

 

In the statement on Thursday, Aeroflot said that despite the planned administrative personnel cuts, the overall staff numbers would grow 5.6 percent after it launches a new international terminal at Moscow's Sheremetyevo Airport and puts new planes into operation.

 

(Reuters)

 

[Ken M. 0]

KLM B738 Retrojet

 

Pieter,

 

The photos on a.net of "Zwaan" are great.

Well done KLM.

Hope to see her on a daylight GLA approach.

 

Regards,

Ken

[Pieter C. 5]

KLM B738 Retrojet

 

Pieter,

 

The photos on a.net of "Zwaan" are great.

Well done KLM.

Hope to see her on a daylight GLA approach.

 

Regards,

Ken

 

Ken,

 

See also Obs Hill here: "transformati BXA"

 

[Pieter C. 5]

Air France Beating Tough Odds For Alitalia

 

January 2, 2009

Air France-KLM enters 2009 in prime position to clinch a fierce battle for a stake in Alitalia as the Italian carrier crawls toward its planned rebirth as a smaller, private airline in just over 10 days.

 

After a three month tussle for a stake of up to 25 percent, Air France-KLM appears, for now, to have the edge over Lufthansa despite aggressive German lobbying and overt political opposition from Rome, two sources close to the talks said.

 

At stake is access to Europe's fourth largest aviation market amid a severe industry downturn, combining busy business routes from Italy's export-driven north with one of the world's top tourist destination markets targeting Rome in the south.

 

CAI, the group of Italian investors that bought Alitalia for EUR427 million euros (USD$592.8 million) last month, hopes to have a foreign partner in place when it officially relaunches the carrier with a revamped network and fewer staff on January 13, one of the sources said.

 

Italian media have reported that CAI has already picked Air France-KLM with a formal signing of the agreement expected next week, but both sources denied such a decision had been made.

 

"It's true that the talks with Air France-KLM are in a more advanced stage," one of the sources said. "We are at an important point. We're still discussing, but we don't have a deal yet."

 

One investor in CAI, Ninni Carbonelli D'Angelo, also told the AGI news agency that the group was in advanced talks with the French carrier but that a deal had not been reached.

 

Air France-KLM has long been considered a logical partner for Alitalia, with which it shares commercial ties. Both belong to the Skyteam alliance, and the French carrier last year agreed to buy Alitalia before the deal collapsed over union opposition.

 

CAI's plans giving Rome the lion's share of intercontinental destinations under the new network also suggest a likely deal with the French, who want a greater role for the hub.

 

Italy's Prime Minister Silvio Berlusconi however has spoken out for the alliance with Lufthansa, whose multi-hub model is also preferred by unions and influential north Italian politicians who hope that could save jobs at Milan's airports.

 

British Airways, which called off merger talks with Australia's Qantas Airways last month, is also vying to become Alitalia's foreign partner but its pursuit of only a commercial alliance has hampered its bid.

 

CAI executives have said they prefer a partner that buys a stake, which they expect will be of about 20 to 25 percent.

 

Investors in CAI have agreed to invest a maximum of EUR1.1 billion into the holding company to buy and relaunch Alitalia, valuing such a stake at roughly EUR220 million - EUR275 million.

 

Price may not be the only crunch factor, with Alitalia -- resentful at what its executives regard as second-class treatment in Skyteam -- pushing for the best possible commercial and ticketing deal with Skyteam or Lufthansa's Star Alliance.

 

That said, some airline executives say Alitalia will have to prove it can still command the loyalty of passengers to drive them into a foreign partner's network following years of strikes, poor service and uncertainty over the airline's future.

 

"We continue to work on the (Alitalia) dossier," an Air France-KLM spokesman said. "We have no other comment".

 

In the meantime, CAI has been swiftly ticking off the boxes on administrative and legal steps ahead of Alitalia's relaunch.

 

The group has completed the purchase of tiny Italian airline Air One's assets that will be merged with those of Alitalia, decided to maintain the Alitalia brand and livery, and began an advertising campaign to promote the reshaped airline.

 

CAI's plans to turn around Alitalia -- which filed for bankruptcy in August after years of muddling through losses, strikes, mismanagement and political meddling -- focuses heavily on efforts to improve efficiency and rebuild market share.

 

Alitalia's staff base of nearly 20,000 has been pared back to just over 12,500 employees and CAI has said it aims to boost Alitalia's domestic market share to 56 percent from 30 percent at present.

 

It also plans to reduce and then invest in Alitalia's fleet to bring down the average age of its planes to 8.6 years from 12.4, in line with larger European airlines such as Air France-KLM. It targets a break-even in 2010.

 

But even Alitalia's biggest fans expect CAI to face an uphill climb as the new airline prepares for take-off amid a deepening recession and bitter competition that includes a new high-speed train service in Italy.

 

"Alitalia died because of its 'grandeur'... it had a structure that was too big with respect to its hopes of producing a profit," said Augusto Fantozzi, the administrator who oversaw Alitalia's bankruptcy told L'Espresso magazine.

 

"It's been said that (CAI Chairman Roberto) Colaninno was given the juiciest bits of Alitalia, but even he'll have problems filling the airplanes."

 

(Reuters)

 

[Pieter C. 5]

Italian Party Seeks Lufthansa As Alitalia Partner

 

January 5, 2009

Italy's Northern League party renewed its calls on Monday for Lufthansa to become Alitalia's new partner and said its leader would meet Prime Minister Silvio Berlusconi over the matter.

 

After a three month tussle for a stake of up to 25 percent, Air France-KLM appears for now to have the edge over Lufthansa despite aggressive German lobbying and overt political opposition from Rome, two sources close to the talks have said.

 

CAI, the group of Italian investors that bought Alitalia for EUR427 million euros last month, hopes to have a foreign partner in place when it officially relaunches the carrier with a revamped network and fewer staff on January 13, one of the sources said.

 

Italian media have reported that CAI has already picked Air France-KLM with a formal signing of the agreement expected this week, but both sources denied such a decision had been made.

 

Berlusconi has spoken for an alliance with Lufthansa, whose multi-hub model is also supported by unions and influential northern Italian politicians who hope that could save jobs at Milan's airports.

 

"The Northern League believes the ideal partner for CAI should be Lufthansa, the only company able to guarantee employment, international services and two hubs -- Milan's Malpensa and Rome's Fiumicino," the party, which is part of Berlusconi's government, said in a statement.

 

It said Umberto Bossi, leader of the Northern League, would meet him on January 7.

 

Newspaper La Repubblica on Monday quoted Bossi as saying an alliance with Air France-KLM would be an about-turn by Berlusconi and would anger northern Italy, where Bossi's power base lies.

 

Air France-KLM has long been considered a logical partner for Alitalia, with which it shares commercial ties. Both belong to the Skyteam marketing alliance of airlines and the French carrier last year agreed to buy Alitalia before the deal collapsed over union opposition.

 

La Repubblica last week quoted CAI Chairman Roberto Colaninno as saying that if Alitalia left Skyteam it would have to pay a penalty of more than EUR200 million.

 

Milan Mayor Letizia Moratti said in a weekend newspaper interview that if Lufthansa was chosen the German carrier could absorb the penalty cost.

 

Plans that affect airport hubs are controversial in Italy, and Alitalia's decision to cut back at Milan's Malpensa set off a backlash from politicians and workers in Italy's north.

 

A Lufthansa spokeswoman denied media reports that CAI would hold a conference call with Lufthansa on Monday.

 

"There is no such conference call scheduled for today. But that does not mean that there are no longer talks going on between CAI and Lufthansa," she said.

 

(Reuters)

 

[Pieter C. 5]

Alitalia To OK Air France Deal

 

January 8, 2009

Alitalia's board will meet on Monday to approve the sale of a minority stake to larger rival Air France-KLM after months of negotiations, a source close to the Italian airline said on Thursday.

 

The Franco-Dutch carrier has beaten rival Lufthansa for a stake of about 25 percent in the Italian carrier, two sources close to the matter have said previously.

 

Italian Prime Minister Silvio Berlusconi on Wednesday indirectly confirmed the French victory in the tussle by saying that his preferred candidate, Lufthansa, never made an offer.

 

The source confirmed newspaper reports that Air France-KLM would pay about EUR300 million euros for the stake, but said the figure was approximate. La Repubblica daily reported the French carrier would pay EUR310 million for a 25 percent stake.

 

Both Air France-KLM and Lufthansa had been eyeing Alitalia as a way to gain a foothold in Europe's fourth-largest aviation market that combines busy business routes in Italy's north with heavy tourist traffic to destinations like Rome.

 

Alitalia went bankrupt last year after muddling through years of losses, strikes and inefficiencies but is being revived by the CAI Italian investor group, which bought the carrier's best parts and has since adopted the carrier's name.

 

The restructured airline will begin operating under a reshaped network and slimmed down employee base on January 13.

 

(Reuters)

 

 

Air France-KLM Poised To Clinch Alitalia Alliance

 

January 8, 2009

Air France-KLM on Thursday looked to have all but sealed an alliance with Alitalia as rival Lufthansa threw in the towel after a three-month battle for a minority stake in the revamped Italian airline.

 

Echoing earlier remarks by Italian Prime Minister Silvio Berlusconi, Lufthansa confirmed it failed to make a firm offer for the stake after aggressively lobbying to make inroads into the lucrative Italian market amid an economic downturn.

 

With Alitalia's formal relaunch as a smaller airline just five days away, a Lufthansa spokesman said it had only proposed a plan for Alitalia to cooperate within the Star Alliance to which the German carrier belongs.

 

An Italian minister said an alliance with Air France-KLM now appeared inevitable.

 

"There's not much doubt now on this now," Defence Minister Ignazio La Russa told reporters after a meeting with Berlusconi.

 

The Franco-Dutch carrier will pay roughly EUR300 million euros (USD$406.7 million) for a 25 percent stake in the reshaped airline, a source close to the Italian airline said. Alitalia's board will meet on Monday to approve the sale, the source said.

 

The deal still faces opposition from politicians in north Italy who fear Air France-KLM's plans will favour Roman airports at the expense of Milan's Malpensa hub, but a source close to Alitalia said the deal already had the government's blessings.

 

Umberto Bossi, the head of the Northern League -- a junior partner in the Italian government -- was holding talks with Berlusconi on Thursday in a bid to pull off a last-minute coup for Lufthansa, but few expected his suggestion to prevail.

 

Instead, local media said Bossi would push Berlusconi to open up slots and liberalise air traffic rights so as to allow other airlines to boost flights out of Malpensa Airport.

 

Both Air France-KLM and Lufthansa had been eyeing Alitalia as a springboard to gain a foothold in Europe's fourth-largest aviation market, which combines busy business routes in Italy's north with heavy tourist traffic to destinations such as Rome.

 

Alitalia filed for bankruptcy last year after muddling through years of losses, labour strife and inefficiencies but still dominates air traffic on the lucrative Milan-Rome route.

 

The CAI group of Italian investors bought the profitable parts of the company last month and has adopted its name. CAI plans to turnaround the airline with a revamped network and slimmed-down employee base to be launched on January 13.

 

But in a reminder of the lingering challenges facing the carrier, Alitalia cancelled dozens of flights on Thursday due to an impromptu protest by employees at Rome's Fiumicino Airport.

 

The Air France-KLM deal comes with airlines facing their worst downturn in decades as the economic crisis hits demand.

 

Air France-KLM, Lufthansa and British Airways are jockeying for advantage and are expected to emerge as Europe's only major network airlines among the legacy carriers, as smaller airlines fold or agree to be taken over.

 

Air France-KLM said earlier on Thursday it had suffered a 20.4 percent slump in cargo traffic in December, swamping the airline's efforts to match supply with demand by reducing its available capacity by 6.2 percent.

 

The cargo load factor fell 10.6 percentage points to 59.6 percent, it said. Passenger traffic rose 1.3 percent, lifting the load factor to 78.9 percent as capacity rose 0.9 percent.

 

(Reuters)

 

[Pieter C. 5]

Air France-KLM Board OKs Offer For Alitalia

 

January 9, 2009

The board of Franco-Dutch carrier Air France-KLM has approved an offer for a minority stake in Alitalia, Italian news agency Ansa reported on Friday, citing sources close to the matter.

 

An Air France-KLM spokeswoman did not have any comment.

 

Air France-KLM has edged out rival Lufthansa in a fierce battle for a roughly 25 percent stake in the revamped Italian airline, sources close to the matter have previously said.

 

Lufthansa on Thursday said it had not made a firm offer for Alitalia.

 

The board of the Italian carrier, which was bought by the CAI group of Italian investors, will meet Monday to approve the Air France-KLM deal, a source close to CAI has said.

 

(Reuters)

 

[BC Tam 2]

Done Deal !

 

Alitalia chooses Air France as partner

 

ROME (AP) - Alitalia, whose 62 years as a state-run company ended in bankruptcy, begins its new incarnation Tuesday as a private company with Air France-KLM as a minority shareholder alongside a varied group of Italian investors.

 

The Franco-Dutch carrier, which withdrew a failed bid last year to buy the airline outright, will pay euro322 million (US$431.29 million) in cash and equity for a 25 percent share in the new company, Alitalia's new CEO Rocco Sabelli said at a news conference Monday after investors approved the deal at a board meeting.

 

Sabelli said Air France had a clear advantage in the bidding process because of its long-standing partnership in the Sky Team alliance and its earlier bid.

 

"The interest in the Italian market by the other bidders, including Lufthansa, did not translate into a real offer,'' Sabelli said.

 

The group of some 25 Italian investors - including the chiefs of scooter maker Piaggio, the Pirelli tire company and a highway construction company - bought the bankrupt airline from the Italian government in a euro1.052 billion (US$1.41 billion) deal.

 

That includes euro625 million in Alitalia's debt, which in the meantime has ballooned to at least euro3.2 billion.

 

Roberto Colaninno, president of the so-called CAI investor group, said the Air France partnership will bring synergies of euro720 million (US$964.37 million) over the first three years.

 

However, rules will prevent Air France from expanding its participation for the first four years. The deal requires regulatory approval.

 

"If Air France dreams of buying all of Alitalia, it is their dream. We have a different dream,'' Colaninno told reporters.

 

In a statement, Air France-KLM said the partnership was an "important milestone'' in securing its future as the industry faces tough economic challenges.

 

The new Alitalia - which merge the old Alitalia's profitable assets with the much smaller Air One - launches on Tuesday with a 6 a.m. (0600 GMT) flight from London's Heathrow to Rome.

 

It is slimmer than its predecessor, with 148 aircraft from both airlines combined, compared with 173 in the old fleet, and about 12,500 employees, down from more than 23,500 between the two airlines.

 

There will be nothing manifestly different about the new Alitalia.

 

The logo remains the same, as do the green flight crew uniforms.

 

The fleet will be newer after the incoming owners declined to take on older, less-efficient planes, and the flight plan is streamlined to serve 70 destinations, just 13 of those intercontinental.

 

Airline analyst Diogenis Papiomytis at Frost & Sullivan said the new airline creates a domestic monopoly that "is a benefit in this economic crisis that we have now.''

 

"I think it is going to be a much better airline ... At least at the beginning, it will be mainly an Italian/European airline.

 

"It is not a global airline by any means. It cannot compete against Lufthansa, British Airways, Air France, even Iberia. At this point, it takes tier two status. But tier-two status is better than bankrupt,'' Papiomytis said.

 

But not everyone is welcoming the deal. Workers held a mock funeral for Alitalia, and unions unhappy with the hiring regime have pledged to mar the launch with protests Tuesday.

 

Sabelli said he didn't expect major protests by workers employed by the new Alitalia, but feared some anger by those who had been fired.

 

The new airline has arranged for back-up pilots, baggage handlers and technicians to be available in case the protests prevent staff from reaching their jobs, he said.

 

"I don't expect a perfect takeoff,'' he told The Associated Press in an exclusive interview.

 

"This is an irresistible temptation for those who still have gripes with Alitalia.''

 

Italy's civil aviation authority ENAC marked the passage from the old Alitalia to the new with a signing ceremony Monday evening.

 

Its inspectors will spend the night approving for operation the 93 planes Alitalia is taking over.

 

The remaining aircraft are among the assets that the bankruptcy administrator Augusto Fantozzi is charged with selling off.

 

While Fantozzi said this fall that there had been bidders, deals were still being finalized.

from theStar online

 

The frankness of the highlighted quotes is so very refreshing

[Pieter C. 5]

Done Deal !

 

Yep, see also:

 

Alitalia-Owned Art Work To Go Under The Hammer

January 11, 2009

Italian carrier Alitalia will auction 163 works of art including some by prominent modern painters that were shown in its aircraft during its 1960s heyday, its bankruptcy administrator said on Sunday.

 

"At the outset, Alitalia would display works of art to show beautiful things to its passengers," Augusto Fantozzi told Italian television. "There are a number of paintings by important artists that will now be sold at auction."

 

He did not say how much the art work was expected to fetch or if the paintings had been valued yet.

 

The paintings were usually small so as to fit inside fuselages, and included some by famous Italian artists such as Renato Guttuso and Futurist painter Giacomo Balla, La Repubblica daily reported last year.

 

The Italian national airline, which began flying in 1947 and became a proud symbol of Italy's economic prowess in the post-war period, has since fallen on hard times.

 

Alitalia filed for bankruptcy in August after years of losses due to strikes and inefficiencies. A group of Italian investors bought its best bits and is relaunching the carrier, while its remaining assets are being liquidated.

 

(Reuters)

 

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Alitalia Sells 25 Percent Stake To Air France-KLM

January 12, 2009

Alitalia agreed to sell a 25 percent stake to Air France-KLM for EUR323 million euros (USD$429 million), giving the Franco-Dutch airline wider access to Europe's fourth biggest travel market after years of courtship.

 

After a week of frenetic talks among politicians hoping for a last-minute coup for rival Lufthansa, Alitalia Chairman Roberto Colaninno announced Air France-KLM had beaten the German carrier to clinch the deal on Monday.

 

He forecast synergies with Air France-KLM worth EUR720 million for Alitalia over the next three years.

 

Air France-KLM and Lufthansa had been locked in a battle for more than three months over the stake, which offered a quick route into Italy's busy aviation market, which meshes business routes in the north with heavy Rome tourist traffic.

 

Alitalia chief executive Rocco Sabelli said the French airline was the natural choice, starting with its deep knowledge of the Italian airline due to their longtime partnership.

 

"Air France-KLM... showed determination and conviction that the others did not have," Sabelli told reporters.

 

Alitalia, which filed for bankruptcy in August last year, will be formally relaunched on Tuesday as a smaller, regional carrier with fewer staff and a revamped network, under the ownership of the CAI group of investors that Colaninno heads.

 

Alitalia will also be integrating recently acquired domestic rival Air One, allowing it to cut the average age of its fleet.

 

Some Alitalia employees held a mock "funeral" procession at Rome's Fiumicino airport for the carrier, which began flying in 1947 and became a symbol of Italy's postwar economic prowess before falling on hard times due to union strife and high costs.

 

Workers protesting job cuts at the carrier due to the restructuring carried a black coffin with a grey tombstone bearing Alitalia's logo and the dates: "5.5.1947 - 12.1.2009."

 

The Air France-KLM deal will not prevent Alitalia from managing its affairs autonomously, Colaninno said, adding that a lock-up arrangement would prevent Italian investors owning Alitalia from selling their stake to the French for four years.

 

The Air France-KLM alliance comes less than a year after the French carrier's takeover of the then state-controlled Italian carrier fell apart due to union opposition and criticism from Silvio Berlusconi, who was then campaigning to be prime minister.

 

For Alitalia, the French alliance gives the newly restructured airline much needed backing on an international stage and a more prominent role within the Skyteam alliance.

 

Alitalia's dominance in the Italian domestic market will drive traffic to Air France-KLM's intercontinental network.

 

However the deal is against a backdrop of falling passenger and cargo traffic that has triggered an industry crisis.

 

Air France-KLM said it would participate in a reserved Alitalia capital increase worth EUR323 million to purchase its 25 percent stake and said it would benefit from EUR90 million of synergies annually from the second or third year.

 

The deal will boost Air France-KLM earnings from year two and generate a return on investment of 15 percent from the third year, Air France-KLM said in a statement.

 

It will control 3 out of 19 Alitalia board seats.

 

Alitalia could decide to go public in an IPO after three years. The deal with Air France KLM also includes a clause that allows the Italian carrier to end the agreement if at least 50 percent of the expected synergies are not achieved.

 

Alitalia faces growing competition on its home turf from a new high-speed train service in Italy and the reshaped carrier has yet to prove it will not be stymied by the political and union problems that have beset it until now.

 

Augusto Fantozzi, the bankruptcy administrator who ran Alitalia until Italian consortium CAI took it over, said he was handing over an airline in better health than most assumed.

 

"In four months we have been able to effect a turnaround despite strikes, union negotiations, demands by creditors, threats by suppliers, EU restrictions," he told a newspaper.

 

(Reuters)

 

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Alitalia, Carrier Of Popes, Is Born Again

January 13, 2009

Alitalia, the airline that has flown popes, princes and prima donnas, was reborn as a smaller, privately-owned carrier amid chaos on Tuesday as protests by disgruntled employees delayed or cancelled inaugural flights.

 

Once a symbol of Italy's post-war economic boom, Alitalia filed for bankruptcy last year, succumbing to union strife, high costs and mismanagement. A group of Italian investors bought its best parts, leaving the rest to the Italian state.

 

After months of haggling with unions and frenetic talks with politicians seeking to save local airports, Alitalia flight AZ 676 to Sao Paolo took off promptly at 0610 am from Milan on the carrier's first flight under a new network and new owners.

 

"We've done it. There's no turning back from the new Alitalia now and all the prophets of misfortune have been silenced," said Employment Minister Maurizio Sacconi, whose government had made saving Alitalia a top priority.

 

But the airline's first domestic flight took off 20 minutes late and 11 flights at Milan's Linate Airport were cancelled because all gates for planes were occupied.

 

In a reminder of the old challenges facing the reshaped carrier, Alitalia workers wary of the impact from a new alliance with Air France-KLM demonstrated at Milan's Malpensa Airport by chanting slogans and waving union banners, causing delays.

 

At Rome's Fiumicino Airport, delays of more than two hours were reported as workers marched outside.

 

Alitalia's unions have been bickering with its new owners for months, accusing them of not respecting prior agreements. Alitalia CEO Rocco Sabelli said the unions were mainly unhappy with their pick of a new cleaning service.

 

"I don't have any illusions," Sabelli, who earlier said Alitalia had drawn up an emergency plan for the protests, told La Stampa daily.

 

"There are problems to be resolved, and there will be plenty more to resolve."

 

The new Alitalia maintains the carrier's brand and livery, but its new owners have revamped its flight network, axed a third of the work force and partnered with larger rival Air France-KLM in a bid to return it to a profit.

 

With its operations merged with those of smaller rival Air One, Alitalia will fly to 47 foreign and 23 Italian destinations in the new network. It targets increasing its market share to 56 percent from 30 percent and results breaking even in two years.

 

The airline may re-list on the stock exchange in three years, but first needs to fend off growing competition on its home turf from a new high-speed train service and rivals such as Lufthansa. It takes off against a backdrop of falling passenger and cargo traffic that has triggered a severe industry crisis.

 

Italian newspapers published nostalgic pictures of Alitalia's flights during its 1950s-60s heyday, with movie stars like Sofia Loren waving from the landing stairs and stewardesses sporting prim Alitalia-branded hat boxes and designer uniforms.

 

The airline's stewardesses were dressed by famous Italian designers including the Fontana sisters and Giorgio Armani.

 

Alitalia first took to the skies on September 16, 1946, in the tumultuous post-war period and later became the preferred carrier of popes and movie stars.

 

Film diva Anita Ekberg landed in Rome in Federico Fellini's 1960 classic "La Dolce Vita" on an Alitalia DC-6B propeller plane, and Pope Paul VI began the tradition of papal trips on Alitalia by using it on the first flight by a pope in 1964.

 

But the state-controlled carrier soon became a vehicle for political favours, and its unionised staff, who enjoyed lavish perks, prevented efforts to restructure to meet the 21st century challenges of an aviation downturn and low-cost competition.

 

"Alitalia died of grandeur," Augusto Fantozzi, who ran it during its bankruptcy told L'Espresso magazine. "It paid triple for everything. To give you an example: it would send three cars to pick up cabin crew, in case the first got a flat tyre and the motor broke down in the second. It was a waste."

 

(Reuters)

 

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Air France Sees Stronger Alitalia Role In SkyTeam

January 13, 2009

Air France-KLM said on Tuesday Alitalia's role within the international SkyTeam airline alliance would be strengthened by its deal with the Franco-Dutch airline.

 

Air France chief executive Jean-Cyril Spinetta told a news conference it was too early to comment on a possible bourse listing for the newly revamped Alitalia.

 

On Monday, Alitalia agreed to sell a 25 percent stake to Air France-KLM for EUR323 million euros (USD$429.5 million), giving it wider access to Europe's fourth biggest travel market after years of courtship.

 

Alitalia, which filed for bankruptcy in August last year, was formally relaunched on Tuesday as a smaller, regional carrier with fewer staff and a revamped network under the ownership of the CAI group of investors.

 

The Air France-KLM deal will not prevent Alitalia from managing its affairs autonomously, and Spinetta said on Tuesday that it would be up to Alitalia to decide on its hub strategy.

 

(Reuters)

 

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Air France KLM to hold 25% of new Alitalia, which launches today

Tuesday January 13, 2009

As was widely expected, Air France KLM will become the relaunched Alitalia's international partner and will take a 25% stake in the restructured carrier through a capital increase of approximately €323 million ($435.1 million).

 

The decision ends months of speculation and uncertainty and came on the last day of the flag carrier's operation as the "old" Alitalia. The AF KLM board approved the investment Friday.

 

"In view of the many challenges facing our sector, strengthened cooperation is more than ever a necessity between carriers and we have now made a further step towards this," AF KLM Chairman Jean-Cyril Spinetta and CEO Pierre-Henri Gourgeon said in a statement. The Franco-Dutch group will hold three of 19 seats on AZ's board, including two of the nine comprising the executive committee. The agreement includes a four-year lock-up period but allows AF KLM to increase its holding and make an offer for a controlling stake in 2013. The lock-up will cease to apply only in the case of a stock market quotation starting in the third year.

 

AF KLM presented the "best solution" compared to alternatives offered by Lufthansa and British Airways, AZ CEO Rocco Sabelli said, noting that LH "showed interest in the Italian market but never in a concrete project for a new Alitalia," while BA never wanted to make a "real investment." AF KLM was regarded by most as the natural choice owing to both its membership in SkyTeam and its antitrust immunity with AZ on transatlantic routes. The carriers have partnered on joint venture on routes between France and Italy since 2002. In 2007, AF KLM won a bid for the Italian government's 49.5% stake in AZ but was rebuffed by incoming Prime Minister Silvio Berlusconi.

 

AF KLM said the partnership will be based on a multihub strategy in which Paris Charles de Gaulle, Amsterdam Schiphol, Rome Fiumicino and Milan Malpensa will feature "on an equal basis." Synergies derived mainly from network optimization and revenue management will be achieved over the next three years and should amount to some €720 million for AZ and around €90 million for AF KLM by either the second or third year.

 

The entire arrangement is subject to approval by Alitalia shareholders and EU competition authorities. The latter are expected to clear the deal by the end of the current quarter, AF KLM said.

 

Yesterday was the old Alitalia's last day of existence. At 10 p.m., all assets were transferred to Compagnia Aerea Italia. The "new" Alitalia will carry the same name and logo and is essentially a merger of the slimmed-down AZ with smaller rival Air One, which was a Lufthansa partner. The new airline will operate 148 aircraft to 70 destinations, including 13 international airports. The first "new" flight was scheduled to depart at 6 a.m. today from London Heathrow to FCO.

[Pieter C. 5]

Delta Eyes 2,000 Job Cuts Via Early Retirement

 

January 15, 2009

Delta Air Lines, which took over rival Northwest Airlines last year, said it expects about 2,000 staff to opt for early retirement as it aims to trim capacity by up to 8 percent this year.

 

The latest move by the world's biggest airline highlights a trend among major airlines fighting for profits as global economic recession weighs on passengers' travel budgets.

 

In December, Delta, which has about 75,000 staff worldwide, said it would offer employees severance packages, but it didn't say how many jobs it aimed to cut.

 

"We are expecting a number of around 2,000 because the capacity reduction is going to be around 6 to 8 percent," Delta CEO Richard Anderson told reporters on the sidelines of a media briefing in Tokyo.

 

"We will know more towards the end of this month, because we gave employees a wide window so that they can make the right decision."

 

In March 2008, Delta announced 2,000 job cuts and offered voluntary severance packages. More than 4,000 workers took advantage of the packages.

 

Prior to the merger, Northwest trimmed its staff by about 2,000 workers.

 

Major airlines, battered by sagging travel demand and losses on fuel hedging costs, have been working to bolster their profitability by cutting capacity and finding new revenue streams. Capacity reductions affect the number of seats for sale and are achieved by cutting flights or replacing large planes with smaller ones.

 

Japan Airlines plans to cut about 10 percent of its total work force by end of March while Singapore Airlines is reportedly planning to ask its cargo pilots to take unpaid leave as the carriers face tough operating conditions.

 

Atlanta-based Delta said last month its domestic capacity would fall 8 percent to 10 percent in 2009, and international capacity would fall 3 percent to 5 percent as travel demand wanes. System-wide, that would mean a reduction of 6 to 8 percent.

 

Anderson told reporters on Thursday Delta expects a 10 percent decline in industry revenue this year as the economic slowdown hits travel demand, taking revenue to where it was after the September 11 attacks in 2001.

 

"But remember, the fuel price is dramatically lower," he said, adding that the carrier expects to save USD$5 billion this year from the drop in oil prices since last summer.

 

"We expect an enormous benefit from lower fuel prices," said Anderson, adding that would help the carrier achieve profitability in 2009.

 

US crude oil was trading around USD$37 a barrel in New York on Wednesday, down from an all-time high above USD$147 in July last year.

 

(Reuters)

 

[Pieter C. 5]

Relaunched Alitalia Faces First Strike

 

January 19, 2009

Alitalia cancelled 22 flights on Monday due to a strike, the first since the airline was restructured and relaunched last week under a new network and private ownership.

 

Workers from the SDL union held the four-hour strike to protest new contracts and the criteria used to hire employees as part of Alitalia's relaunch.

 

The flights cancelled included six to international destinations in Europe and the Middle East, the SDL union said.

 

Analysts are watching to see whether a restructured Alitalia with weakened unions is able to avoid the strife which repeatedly frustrated the efforts of its predecessor to turn itself around and report a profit.

 

(Reuters)

 

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Air France-KLM Sees Q3 Operating Loss

 

January 20, 2009

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.

 

Europe's biggest airline said it still expected to achieve an operating profit for the year ending March 31, but the level would depend on the economic situation in coming weeks.

 

"The deterioration in the economic environment during the third quarter has led to a slight weakening in passenger unit revenues and a strong decline in cargo revenue," Air France-KLM said in a statement on Tuesday.

 

"Unit costs were not able to benefit from lower oil prices because of the negative effect of the oil hedges," it said.

 

Airlines, battling high fuel costs before the financial crisis and weakening economies began to hurt demand for air travel, have sought to hedge against oil prices to try to manage fuel costs better.

 

But since reaching a high of some USD$147 a barrel last July, oil prices have fallen more than 75 percent and are near USD$33 a barrel.

 

"Though we were not anticipating a significant deterioration in Air France's business before the fourth quarter... the third quarter has equally been highly impacted by a drop in yields that emerged in November," Oddo Securities analysts wrote.

 

Air France-KLM had already withdrawn its detailed full-year earnings forecast in November after warning in October it would not be able to reach its 2008-09 operating profit target of EUR1 billion euros (USD$1.3 billion).

 

The carrier said in November it still expected its operating result to be "clearly positive" barring worsening conditions.

 

German rival Lufthansa in October cut its 2008 operating profit target to about EUR1.1 billion from a previous forecast for a result similar to the EUR1.38 billion achieved in 2007.

 

Austrian Airlines also cut its 2008 earnings guidance in October and predicted a wider net loss.

 

Europe's biggest low-cost carrier, Ryanair, in November predicted a fiscal second-half loss but said it was still confident of breaking even for the full year.

 

British Airways meanwhile said earlier this month it was keeping its guidance for the year to March 31 of a small operating profit. The British carrier had lifted its full-year sales growth target to 4 percent from 3 percent in November.

 

(Reuters)

 

[Pieter C. 5]

Continental Sees Q4 Charges, Hedge Loss

 

January 21, 2009

Continental Airlines said on Wednesday fourth-quarter earnings would be cut by pilot pension payouts and a big loss on fuel hedging contracts with a bankrupt counter-party.

 

The airline said it would take a charge of USD$44 million for payouts to retiring pilots as the airline cuts its flights in the face of volatile fuel prices and waning demand.

 

It is to take a further USD$125 million charge on some fuel derivative contracts with an unnamed counter-party, whose parent declared bankruptcy on September 15 last year. That is the day Lehman Brothers filed for bankruptcy protection.

 

Factoring in a gain on aircraft sales and other one-time charges relating to severance and writing down the value of some securities, Continental said fourth quarter profit would be cut USD$170 million.

 

For the full year, it said these and other one-time items would cut USD$234 million from profit.

 

Wall Street analysts expect Continental to report a net loss of USD$166 million when the airline reports quarterly earnings next Thursday.

 

The airline's shares closed down USD$2.16 at USD$17.37.

 

(Reuters)

 

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Air France-KLM Expecting EUR200 Mln Q3 Loss

 

January 21, 2009

Air France-KLM said on Wednesday it was likely to post an operating loss of some EUR200 million euros (USD$258 million) for its third quarter, after the economy deteriorated.

 

Europe's biggest airline repeated it still expected to achieve a positive operating income for the full year ending March 31, but that the level would depend on how the economic situation evolved, notably in the cargo business which is facing a tough environment.

 

Air France specified in its statement that it was not in a position to "make any pronouncement on the operating income forecasts circulating on the market" for the full year.

 

On Tuesday, Air France-KLM had warned it would post a third-quarter operating loss, sending its shares lower after the latest profit warning to hit the airline sector.

 

Air France-KLM had already withdrawn its detailed full-year earnings forecast in November after warning in October it would not be able to reach its 2008-09 operating profit target of EUR1 billion

 

The carrier said in November it still expected its operating result to be "clearly positive" barring worsening conditions.

 

(Reuters)

 

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Shareholder Group To Sue KLM Over Dividend

 

January 21, 2009

Investor group VEB said it planned to sue KLM, the Dutch arm of Air France KLM, over dividend payouts VEB considers too small.

 

"Since 2004, KLM has been paying out a much smaller part of its profits to shareholders than its operational performance justifies," VEB, which represents retail investors, said in a statement on Wednesday.

 

The suit concerns investors that did not accept Air France's takeover offer in 2004 but remained KLM shareholders, VEB said.

 

VEB said KLM had paid a dividend of 0.58 euros (USD$0.75) per share for 2007-2008, or 9 percent of profit, while other airlines paid out 50 percent of earnings on average.

 

A KLM spokeswoman said the company had not received the lawsuit yet, and declined further comment.

 

(Reuters)

 

 

[Pieter C. 5]

Delta Reports Quarterly Loss On Merger Costs

 

January 27, 2009

"Despite the difficult economic environment, we expect to be solidly profitable in 2009." -- Delta CEO Richard Anderson.

Delta Air Lines reported a quarterly loss on merger costs and bad fuel hedges on Tuesday, but said falling fuel prices and downsizing would bring profits in 2009.

 

The airline linked the bulk of its USD$1.4 billion fourth-quarter loss to a non-cash charged related to its purchase of Northwest Airlines late last year.

 

Like rivals United Airlines and American Airlines, which reported losses last week, Delta complained of economic weakness that is eroding travel demand and forcing airlines to cut the number of seats for sale. But chief executive Richard Anderson was optimistic.

 

"Despite the difficult economic environment, we expect to be solidly profitable in 2009, driven by lower fuel costs, capacity discipline, and merger synergies," he said in a statement.

 

The airline industry was battered in 2008 by high fuel prices and later by economic weakness. Downsizing helped carriers bolster fares while travel budgets and demand shrank.

 

Delta had an advantage over its peers, however, as its merger with Northwest allowed it to make its operations more efficient.

 

Delta, which slashed its domestic capacity by 11 percent in the second half of 2008, said it would cut total mainline capacity by another 6 percent to 8 percent in 2009. The reduction will require the removal of 40 to 50 mainline aircraft from its fleet.

 

"They're definitely taking capacity down probably more than what people thought they would be doing," said Helane Becker, airline analyst at Jesup & Lamont Securities.

 

Airlines are braced for a particularly tough first quarter, she said, but the outlook improves later in the year.

 

"We think the second half of the year will be better," she said. "And I think that's the case for Delta."

 

RESULTS

 

Delta said its fourth-quarter net loss had widened to USD$1.4 billion, from USD$70 million a year earlier, before the merger.

 

The results, however, feature one-time items, including a charge of more than USD$900 million related to broad-based employee equity awards, and a USD$91 million loss on out-of-period fuel hedges. Major carriers have reported losses on these hedges as the price of jet fuel dropped in the second half of 2008.

 

Excluding one-time items, the company said it had lost USD$340 million. Although, fuel prices have fallen since July, Delta said its fourth-quarter fuel bill was 69 percent higher than it was a year earlier.

 

The company reported operating revenue of USD$6.7 billion, a 43 percent gain over the comparable period. Delta ended the quarter with USD$6.1 billion in liquidity.

 

(Reuters)

 

[Tamizi Hj Tamby 1]

Uncle Pieter,

 

Any latest news from AZ? watched thru the net that AZ had merged with Air One,thus creating the new AZ.

 

Could you please confirm it?

[Pieter C. 5]

Correct...

 

*A has lost an Italian domestic partner (AirOne), therefore LH Italia will start to operate soon in order to tap into this market...

 

Check the Skyteam thread for more regular updates...

[Tamizi Hj Tamby 1]

Thanks for the confirmation,Uncle Pieter

 

 

 

 

Edited February 15, 2009 by Tamizi Hj Tamby

[Pieter C. 5]

Air France Says No Secret Alitalia Takeover Deal

 

February 2, 2009

Air France-KLM has not negotiated a secret deal to acquire control of Alitalia at some future date, the French group's chairman said in an interview in Italian newspaper Il Sole 24 Ore on Sunday.

 

"There is no secret pact, no side letter," Jean Cyril Spinetta was quoted as saying.

 

After a failed takeover last year when the Italian national airline was riddled with debts and losses, the French carrier came back less than a year later to secure a better deal, paying less than a fifth of its earlier offer for a 25 percent stake in a cleaned-up Alitalia stripped of its debt.

 

Alitalia is controlled by the CAI consortium of Italian businessmen.

 

Spinetta said that as a listed company it would not have the right to sign any such secret deal with CAI.

 

Asked whether Air France intended to increase its stake in Alitalia, Spinetta noted the agreement allowed the Italian investors to buy out the French carrier if they so wished, through the exercise of a call option.

 

"We are engaged, the idea of marriage could happen but separation could too. We can't talk of divorce since we are not married yet," he said.

 

Spinetta said the CAI consortium had decided the new Alitalia could use Milan's Malpensa Airport as a base if the city's other airport, Linate, was dedicated to domestic flights only.

 

Otherwise it would use Rome's Fiumicino as its base, he said.

 

Spinetta said combining smaller Italian airline Air One into the group had been a winning strategic move.

 

Speaking of the airline industry in general, Spinetta said he believed, and hoped, it did not require state aid.

 

He said consolidation of the industry will go ahead despite the economic crisis.

 

(Reuters)

 

[Pieter C. 5]

Air France To Cut Capacity As Traffic Growth Slows

 

February 2, 2009

French carrier Air France expects to cut capacity by between 1 and 2 percent in the coming summer season, it said on Monday, as it seeks to manage the impact of slowing traffic growth triggered by the economic downturn.

 

Parent Air France-KLM, Europe's biggest airline, had said in November it planned to increase capacity across the group by between 1 and 2 percent this summer but gave no separate targets for its French and Dutch units.

 

French daily Les Echos on Monday cited group chief executive Pierre-Henri Gourgeon as saying the reduction was planned across the group.

 

But a spokeswoman said his comments, made on Friday at an industry conference, applied only to Air France. She was unable to comment on Dutch business KLM's capacity plans.

 

Les Echos also cited an unnamed source as saying the group's third-quarter operating loss would be around EUR220 million euros (USD$283 million) and that a similar loss would follow in the fourth quarter.

 

Air France-KLM had warned last month that the tough economic environment was likely to lead to a EUR200 million operating loss in the third quarter but said it hoped to post a positive result for fiscal 2008/09.

 

The Air France-KLM spokeswoman said she was unable to comment on earnings prospects ahead of the group's third-quarter results, due on February 13.

 

Spanish rival Iberia, in exclusive merger talks with British Airways to create a bigger competitor to Air France-KLM, said last week it would cut total capacity by 1.7 percent this year.

 

(Reuters)