LCC news

[Tony 1]

If the long haul LCC model can drive airfares down and make air travel more affordable, why not?

[Pieter C. 5]

Ryanair Prepared To Invest More In Aer Lingus

 

September 24, 2009

 

Ryanair is "highly unlikely" to make a third bid for Aer Lingus but it is prepared to "invest more money" in the rival Irish airline, chief executive Michael O'Leary said on Thursday.

 

"I do think Aer Lingus will need a major reorganisation... and they will come back to the existing shareholders which would be the government, the trade unions and Ryanair presumably to raise some more money," O'Leary told a Ryanair shareholder meeting.

 

"We'd be happy to invest more money in Aer Lingus."

 

O'Leary also said Ryanair is at least three or four years away from launching an associated long-haul airline because of the lack of affordable aircraft.

 

"While the market or orders for short-haul aircraft has collapsed for both Boeing and Airbus the long-haul orderbook has held up," O'Leary told the meeting.

 

Ryanair has reduced its full-year traffic target to 66 million passengers from 67 million mainly due to cuts at Dublin and London's Stansted airport, O'Leary said.

 

He said Ryanair expected a rise in profit this year and was considering paying a one-off dividend, which would represent a break with its past strict policy of hoarding cash.

 

O'Leary said Ryanair had kept its forecast for full-year net profit towards the bottom of a EUR200 million to EUR300 million euro range.

 

(Reuters)

[Pieter C. 5]

Air Berlin and Pegasus Airlines started their cooperation Monday by cross-linking their websites. Passengers will be able to book 17 additional connections from Germany to Turkey as well as 26 routes within Turkey. Pegasus belongs to ESAS Holding, the second-largest industrial and financial group in Turkey. ESAS also is AB's largest shareholder with an 18% stake.

 

Separately, AB announced that it will add 10 new destinations and 54 new nonstop services, especially from Cologne, Stuttgart and Memmingen/Munich West, starting Nov. 1 following its takeover of TUIfly's scheduled flight operations. AB will add 13 TUIfly 737s to its schedule in the coming winter season and 14 in the summer 2010 schedule

[Pieter C. 5]

Republic Completes Frontier Air Purchase

 

October 1, 2009

 

Republic Airways said on Thursday it completed its acquisition of Denver-based Frontier Airlines for USD$108.75 million.

 

Frontier is emerging from bankruptcy to be a Republic subsidiary, joining the ranks of Midwest Airlines, which Republic acquired on July 31.

 

Republic was the sponsor of Frontier's plan of reorganisation and acquired 100 percent equity in the reorganised company.

 

Frontier filed for bankruptcy protection in April 2008 and in June reached a deal to be acquired by Republic. That plan was briefly challenged by a rival bid from Southwest Airlines.

 

But a Southwest deal hinged on an agreement between the two carriers' pilots' unions, which never transpired.

 

Republic, which was Frontier's largest unsecured creditor, also waived recovery rights on its USD$150 million general unsecured claim, helping it edge out Southwest's bid.

 

(Reuters)

[Pieter C. 5]

EasyJet September Traffic Up 5.3 Percent

 

October 6, 2009

 

UK low-cost airline easyJet carried 5.3 percent more passengers in September year-on-year, boosting hopes that demand for budget air travel was recovering from the slump caused by the global recession.

 

The airline carried 4.42 million passengers last month, up from the 4.19 million it flew in the same month a year earlier, while its load factor rose 1.2 percentage points to 88.1 percent.

 

Irish budget airline Ryanair on Monday said it had carried 17 percent more passengers last month than it did in the same month a year earlier.

 

However, British Airways on Monday said it carried 0.8 percent fewer passengers in September year-on-year, as premium, or business class, passenger numbers continued to drop, falling 7.9 percent on September 2008.

 

Air traffic demand is recovering from the slump caused by the economic downturn but the industry remains well away from a return to profit, the International Air Transport Association (IATA) said late last month.

 

IATA said it expected a loss of USD$11 billion for the industry in 2009 and a USD$3.8 billion loss in 2010.

 

Shares in easyJet, which have jumped 40 percent in the last three months, closed at 378.90 pence on Monday, valuing the group at around GBP1.6 billion pounds (USD$2.55 billion).

 

(Reuters)

[Pieter C. 5]

Aer Lingus Cuts Jobs, Pay To Survive

 

October 7, 2009

 

Irish airline Aer Lingus will cut 676 jobs and remove legacy work practices as part of a restructuring plan to reduce annual operating costs by EUR97 million euros (USD$143 million) by 2011.

 

The airline, which has been rapidly burning through its cash reserves, said on Wednesday 489 operational and support staff will be offered voluntary redundancy but it may seek more cuts if cost savings of EUR74 million are not achieved by 2011.

 

It also announced "banded reductions" in pay for staff whose basic pay is above EUR35,000, and said it wanted non-staff savings of EUR23 million in 2010 through airport charges and reduced direct operating costs.

 

Aer Lingus said a second stage of cost savings would be sought through a series of business process improvements and result in an additional 187 redundancies.

 

On Tuesday, British Airways said it would cut the equivalent of 1,700 staff in Britain, drawing a strike warning from unions.

 

Aer Lingus chief executive Christoph Mueller said in a statement: "The outlook in each of our current core markets is poor and, in line with the macroeconomic outlook, we do not expect any near-term recovery.

 

"Against this backdrop, Aer Lingus cannot continue with an operating cost base, which is structurally uncompetitive."

 

Mueller and other senior management are taking a 10 percent cut in salaries, which will be frozen until the end of 2011.

 

Aer Lingus, which has fended off two hostile bids from bigger Irish rival Ryanair, said in August it would cut wages and probably jobs, but had to await the arrival last month of Mueller as CEO.

 

Aer Lingus has been burning through its cash reserves fast due to a combination of declining sales -- especially on long-haul routes -- and high staff costs, a legacy of its history as a state-owned company.

 

Passenger numbers rose 4.1 percent year-on-year in September but that included a 20.4 percent decrease in long-haul numbers.

 

Elsewhere, Air France-KLM unveiled a 3.7 percent drop in September traffic and reported continued pressure on its unit revenues, but said it had managed to boost the proportion of seats sold on its flights.

 

Aer Lingus said it will engage in a six-week consultation period with employees, union representatives and the Pension Scheme Trustees in respect of the transition required under the plan and expects to conclude talks by November 18.

 

The IMPACT union which represents hundreds of Aer Lingus cabin crew and pilots said in a statement the proposals were as severe as expected and that it would consider the contents of the plan.

 

(Reuters)

[Pieter C. 5]

Aer Lingus unveils restructuring plan, aims to slash €97 million in yearly costs

 

Thursday October 8, 2009

 

Aer Lingus yesterday revealed a two-phase "transformational" restructuring plan to reduce annual operating costs excluding fuel by €97 million ($142.7 million) before the end of 2011 and remove "legacy work" practices from its operation.

 

EI also will use an Airline Operating Certificate in the UK to decrease its current dependency on the Irish consumer. Phase one of the plan will target operational cost reductions and changes in work practices in both the short-haul and long-haul networks, though the bulk of cuts/reforms will fall on long-haul operations. The second stage of the plan will focus on a series of initiatives to deliver revenue growth, improved customer service and further cost savings through business process improvements.

 

"The outlook in each of our current core markets is poor and, in line with the macroeconomic outlook, we do not expect any near-term recovery," CEO Christoph Mueller said. "Against this backdrop, Aer Lingus cannot continue with an operating cost base which is structurally uncompetitive when compared to that of its closest peers."

 

About €74 million in cost savings will come from its workforce through a reduced head count, cuts in pay for employees whose basic pay exceeds €35,000 annually and reduced variable pay and staff allowances. Another €23 million will come from nonstaff cost savings. Its workforce numbering 3,879 will be reduced by 676, cuts that are in addition to the approximately 100 staff reductions announced last month.

 

EI said it hopes the redundancies will be achieved on a voluntary basis or through releasing fixed-term staff at the end of their contract period, but warned that it "reserves the right to reduce staff numbers on a compulsory basis if agreement on changes with staff cannot be reached. In addition, if it is not possible to deliver the required cost savings in line with the plan, and within the required timeframe, it may be necessary to reduce staff numbers further in order to ensure the continued viability of Aer Lingus."

 

Separately, EI said passengers carried rose 4.1% year-over-year in September to 960,000 despite a 20.4% decrease in long-haul passengers. Short-haul passengers lifted 7.4%.

[Pieter C. 5]

Ryanair Says Govt. May Ask It To Bail Out Aer Lingus

 

October 8, 2009

 

Irish budget airline Ryanair said on Thursday that if rival Aer Lingus keeps slashing costs and fails to grow the government would eventually ask it to bail out the former state carrier.

 

"If they continue down this road of constant restructuring programmes, constant job cuts and no growth the government will ultimately be forced to come to Ryanair and ask it to rescue it," Ryanair chief executive Michael O'Leary told national broadcaster RTE.

 

Aer Lingus's new chief executive Christoph Mueller told staff on Wednesday he planned to cut nearly one in five jobs and reduce salaries to secure the loss-making carrier's survival.

 

The airline has struggled to compete with Ryanair, Europe's largest budget airline and one of the most cost-efficient players in the industry.

 

Ryanair, still growing profit unlike rivals such as British Airways, has twice tried to take Aer Lingus over and earlier this year saw a bid at 1.4 euros a share rejected by the government, which owns 25 percent of the airline.

 

O'Leary said it was highly unlikely Ryanair, which has a 29 percent stake in its rival, would table a third bid for Aer Lingus.

 

(Reuters)

[Pieter C. 5]

First Bangkok Air, then Midwest and now Airtran ?

 

AirTran studies 717 fleet replacements

 

AirTran Airways has begun evaluating replacements for its 117-seat Boing 717-200s as its oldest aircraft of that type reach the 10-year mark.

 

The low-cost operator likes the size of the 717 and would probably not go smaller, AirTran senior director of strategic planning and scheduling John Kirby said at Boyd Group International's Aviation Forecast Summit in Lexington, Kentucky earlier this week. He adds that the carrier is interested in a seating range between 100 and 120.

 

The Bombardier CSeries is under consideration and the Embraer E-190/E-195 is "logical", but Kirby says the carrier is not ruling out the possibility that Boeing might introduce another aircraft. Boeing ended 717 production in 2006.

 

AirTran, the 717 launch customer, currently operates 86 of the type, according to Flightglobal's ACAS database.

 

Kirby says the airline has roughly 18 to 20 717s that are either 9- or 10-years old. The average 717 in AirTran's fleet is 6-years old, he adds.

 

Orlando-headquartered AirTran would like to replace its oldest aircraft five years from now,

 

which would result in the carrier placing an order in about three years, Kirby says.

 

AirTran is also contemplating converting some of its outstanding 737-700s deliveries to 737-800s.

 

The carrier'scontract with Boeing allows for conversions to be made with some notice and the -800's cockpit commonality with the -700 is appealing, Kirby says. The carrier has looked at seating ranges between 160 and 170 but would likely settle on roughly 164 seats, he says.

 

AirTran has not determined how many -700s might be converted to -800s though Kirby says 20 to 25 conversions might make sense if there is enough demand.

 

AirTran has deferred a total of 36 737 deliveries, with the earliest deliveries scheduled for spring 2011, Kirby says.

 

The airline has a total of 53 737-700s on order and currently operates 50 of the 130-seat aircraft, the ACAS database shows.

[Pieter C. 5]

Vueling September Traffic Up 91 Pct With Clickair

 

October 9, 2009

 

Spanish no-frills airline Vueling on Friday posted a 91 percent jump in passenger traffic to 955,708 in September from a year ago, helped by its merger with Iberia's low-cost subsidiary Clickair in July.

 

Vueling's load factor rose 6.6 percentage points to 76.9 percent in September.

 

A doubling of the airline's Madrid-Barcelona frequency to 10 flights per day in September also helped fuel the strong numbers, a Vueling spokesman said, as the company captured business clients who are seeking cheaper travel.

 

"We're increasing the Madrid-Barcelona flights to 12 a day this month," the spokesman said.

 

Low-cost European rivals easyJet and Ryanair also recorded rises in passenger numbers in September, boosting hopes that demand for budget air travel was recovering from the slump caused by the global recession.

 

Domestic rival Iberia is due to publish its September traffic figures on October 15.

 

(Reuters)

[Juergen Witte 0]

Now, there´s some interesting news from Iceland Express ...

 

They are planning from next year flying to New York (EWR, that is) from Reykjavik (Keflavik/KEF) copying exactly what Iceland Air did for a long time (and still continues to offer)

 

Here´s the official press release:

 

Iceland Express goes to New York

In this episode of IEX in the City, we offer some awfully cheap transatlantic flights to New York from London, Berlin, Copenhagen and 7 other European cities, all via Reykjavík.

 

Okay, listen to this: Starting next summer you can fly with Iceland Express without actually planning to spend time in Iceland.

 

(Not that we’d mind of course — you’re always welcome to stop by for a sip of Brennvín.)

 

But you see, that’s when we add New York to our list of destinations.

 

And that means you’ll be able to fly with Iceland Express to New York from Berlin, Copenhagen, London, Oslo, Aalborg, Gothenburg, Billund, Warsaw, Cracow and Luxembourg (and back) — with an optional quick stop in Reykjavík for a dip in the Blue Lagoon with your new best Icelandic friends.

 

The price of these transatlantic flights varies a bit depending on the airports, but the cheapest flights are all in the range of £163–250, €185–267, $261–390 and DKK 1384–2040. (Just remember that the earlier you book, the better price you get.

 

As we think we mentioned earlier, all of this just went on sale, so you really should book your next flight to New York now.

[Pieter C. 5]

Jazeera Air Eyes Mideast Budget Carrier Buy

 

October 12, 2009

 

Kuwait's low-cost carrier Jazeera Airways, which expects consolidation among Middle Eastern budget airlines, is on the prowl for acquisitions, its chief executive said on Monday.

 

Stefan Pichler, speaking on the sidelines of a conference, also said the carrier expected to post a full-year profit in 2009.

 

"There will be some consolidation in the Middle East, especially in low cost airlines," he told reporters. "We are keeping our eyes open."

 

"We are working on hubs but our focus is not so much GCC (a loose bloc that groups six Gulf Arab states) but more on Middle East countries."

 

Pichler, who took the helm of the Kuwait carrier earlier this year, said the airline was focusing on the Middle East because of weaker competitors.

 

Jazeera began operations in 2005. It competes with Sharjah, United Arab Emirates-based Air Arabia and government-owned FlyDubai.

 

(Reuters)

 

Which Middle-East LCC does he have in mind ?

[Pieter C. 5]

Ryanair Hopes To Order 200 Aircraft By Year-End

 

October 13, 2009

 

Irish budget airline Ryanair said on Tuesday it wanted to wrap up an order for 200 aircraft from either Boeing or Airbus by the end of the year, for delivery after 2012.

 

Chief executive Michael O'Leary said: "If for some reason we can't conclude an agreement with Boeing and Airbus, certainly by the end of the year, we will simply announce we are not going to buy any more aircraft.

 

"We will then stop growing beyond 2012 when our current delivery stream runs out."

 

Ryanair's fleet currently consists of Boeing aircraft but O'Leary said if Airbus offered a better deal he would order Airbus planes.

 

If he couldn't conclude a deal he would start distributing cash to shareholders.

 

"If you can't get Boeing or Airbus to make a decision between now and December I will lose interest and go with plan B," he said.

 

O'Leary was speaking at a press conference in London after the BBC current affairs TV programme Panorama broadcast a profile of the airline on Monday which said its website was misleading and that it imposed hidden charges.

 

"We have plenty of charges but none of them are hidden," said O'Leary, who reiterated that charging passengers to use the toilets remained a longer-term aim.

 

(Reuters)

[Pieter C. 5]

Southwest Posts Net Loss, Cites Challenges

 

October 15, 2009

 

Southwest Airlines reported a third-quarter loss and said slow corporate travel and the prospect of rising fuel costs meant recovery was not yet at hand, sending its shares down nearly 6 percent.

 

The low-cost carrier said its net loss narrowed to USD$16 million, from USD$120 million a year earlier.

 

Revenue fell 7.8 percent to about USD$2.7 billion, while total operating expenses fell 5.7 percent.

 

Excluding special items, third quarter net income was USD$23 million, compared to USD$69 million for the third quarter 2008.

 

"A profit is a profit, and in this terrible environment, we'll certainly take it," chief executive Gary Kelly said.

 

The US airline industry has suffered from a drop in travel demand in the past year. Lower fares and a decrease in capacity have helped keep planes full, but revenue has still declined.

 

RISING CRUDE

 

Airlines have benefited from cheaper fuel this year, but oil prices have started to climb. On Thursday, crude oil soared above USD$77 a barrel.

 

"I don't believe the worst is behind us if for no other reason (than) because of higher energy costs," Kelly said. "There's no reason to think that business travel will return any time soon to help bail us out."

 

Analysts have noted signs of improved demand in the past month, which a run-up of airline stocks has reflected. But sales have been largely driven by discounting, and there has been no evidence of a significant change in full-fare demand, Kelly said.

 

Jesup & Lamont analyst Helane Becker, who has a "sell" rating on the shares, said investors might want to take some money off the table, given the stock's gains. Southwest shares have jumped nearly 21 percent since September.

 

The company's revenue per available seat mile fell 2.2 percent in the third quarter. Load factor rose 8 points to 79.6 percent.

 

Southwest has cut 10 percent of its most unprofitable and least popular flights in the past year and plans to reduce fourth-quarter capacity by 8 percent.

 

NEW REVENUE STREAMS, CHARGES

 

Southwest unveiled a USD$10 charge to board flights early last month, a move that generated USD$2 million in revenue during September, said Chief Financial Officer Laura Wright.

 

Another USD$10 million during the quarter came from new pet fares, unaccompanied minor service charges and fees for excess and heavy baggage.

 

On the cost side, Southwest had a USD$27 million charge for its employee buyout programme, which has about 1,400 participants.

 

There were also charges of USD$12 million for a portion of the company's fuel-hedge portfolio. Southwest saw about USD$78 million in unfavourable cash settlements from derivative contracts in the third quarter. The Dallas-based carrier has hedged more than 45 percent of its estimated fourth-quarter fuel consumption.

 

"We think most of the problems with the hedging programme are largely behind it due to expirations and higher oil prices," S&P analyst Jim Corridore wrote in a note.

 

(Reuters)

[Pieter C. 5]

Bmibaby and Germanwings will link their websites and list certain flights of both carriers, sending customers to the corresponding booking page after they select a flight. Bmibaby customers will have access to 37 Germanwings flights from Manchester, London Stansted and Edinburgh while Germanwings customers will be able to book 33 bmibaby services from Cardiff, Nottingham East Midlands, Birmingham and Manchester.

[Tamizi Hj Tamby 1]

Thanks for the updates on LCCs,Uncle Pieter.

[KK Lee 5]

'Puerile' Ryanair under attack by OFT chief

 

 

Britain's top business regulator has accused Europe's biggest airline, Ryanair, of "almost taunting" passengers in a strongly worded attack on its charges.

 

John Fingleton, the chief executive of the Office of Fair Trading, described Ryanair's levying of fees for paying by card online as "puerile" and "almost childish", adding the carrier was only operating within "the narrow letter of the law".

 

Ryanair advertises taxes and other fees upfront but only mentions charges for paying by plastic at the end of booking on the grounds that customers could escape the fee by using an obscure prepaid card.

 

The no-frills carrier – along with other airlines and ticketing agencies – is being investigated by the OFT over online pricing and advertising. Of particular concern is "drip-pricing" where shoppers only discover the full cost of a service late in the booking process, which makes it difficult to shop around.

 

In a rare and exclusive interview, his first for 18 months, Mr Fingleton, whose organisation has previously clashed with Ryanair, criticised the airline's "funny game".

 

"Ryanair has this funny game where they have found some low frequency payment mechanism and say: 'Well, because you can pay with that [the charge is optional]'," he said. "It's almost like taunting consumers and pointing out: 'Oh well, we know this is completely outside the spirit of the law, but we think it's within the narrow letter of the law'."

 

Mr Fingleton – whose criticism elicited an angry response from Ryanair – hopes that ironing out problems on airline websites will set standards for online shopping, which is forecast to account for half of retail sales by 2020.

 

Under consumer law, businesses must advertise all compulsory charges. At the payment stage online, Ryanair levies a £5 debit or credit card charge per passenger, per journey, although the cost to the company is only about 30p per payment, according to the card industry. The charges can add £40 to the cost of a return trip for a family of four – several times the airline's cheapest advertised fares.

 

From last month, payments by Electron card that had previously been free began to attract the fee and Ryanair switched its free option to MasterCard pre-pay. Mr Fingleton suggested that Ryanair had found "some low frequency payment mechanism" to get round the rules.

 

He said: "It's almost like taunting consumers and pointing out: 'Oh well, we know this is completely outside the spirit of the law, but we think it's within the narrow letter of the law'.

 

"On some level, it's quite puerile, it's almost childish. And you sort of smile, and newspapers like yours or BBC Radio 4's Moneybox do a good job in pointing this out to consumers. This is just playing silly games at the margins of it all and we might or might not go running after something like that."

 

The automatic addition of insurance to flights by airlines, including Ryanair, unless customers opted out, was, he said, another legal "grey area". But public anger about such charges might prove to be more effective than regulatory action, he said. "It would be silly to go after something like that every time because they would quickly change it to something else, and it's trying to establish a general principle that what's not optional is not in there. Consumer anger and frustration, and an element of transparency, often changes these things much quicker than legal action."

 

In July, Ryanair agreed to give more prominence to fees and charges on its website after the OFT's intervention. The OFT had been asked to act by the Advertising Standards Authority, whose rulings have been repeatedly dismissed by the no-frills airline, which carried 58 million passengers last year.

 

Ryanair responded to Mr Fingleton by referring to the OFT's ongoing inquiry into the long-running price-fixing of fuel surcharges, which eventually led to British Airways being fined £121m three years ago.

 

Stephen McNamara, Ryanair's head of communications, said: "As a general rule, anything that comes from an office that has chosen to ignore fuel surcharging airlines like British Airways and remained mute while London air passengers were being ripped off by the BAA monopoly should be taken with a pinch of salt.

 

"Ryanair is not for the overpaid John Fingletons of this world but for the everyday Joe Bloggs who opt for Ryanair's guaranteed lowest fares because we give them the opportunity to fly across 26 European countries for free, £5 and £10."

 

The OFT needed to realise, Ryanair said, that its passengers could avoid costs such as baggage charges "still included in the high fares of high-cost, fuel-surcharging, strike-threatened airlines such as BA." The airline had become Europe's biggest because it was so cheap, he added.

 

http://www.independent.co.uk/news/uk/home-news/puerile-ryanair-under-attack-by-oft-chief-1856767.html

[BC Tam 2]

"If for some reason we can't conclude an agreement with Boeing and Airbus, certainly by the end of the year, we will simply announce we are not going to buy any more aircraft

 

.....

 

If he couldn't conclude a deal he would start distributing cash to shareholders.

So, December 2009 has come and gone

Don't recall any mega Ryanair order for either A nor B

Shareholders got their cash yet ?!

 

Well, if neither option been exercised, could Mr O'Leary's previous quote be considered another display of puerility ?

Edited January 4, 2010 by BC Tam

[Pieter C. 5]

WestJet Launches Frequent Flyer Loyalty Scheme

 

March 9, 2010

 

WestJet Airlines launched its long-awaited loyalty programme on Monday, hoping to win and keep more customers at a time when airline travel is starting to recover after a bruising slowdown.

 

Canada's No.2 airline said passengers can now earn WestJet "dollars" if they sign up for its credit card programme with Royal Bank of Canada, or through the airline's Frequent Guest programme.

 

The dollars can be used as cash to pay for a flight on any date to any destination, WestJet said. There are no points, redemption grids, advance bookings, blackouts or seat restrictions, it said in a statement.

 

WestJet has been talking for some time about a new loyalty programme but the launch was held up while the carrier ironed out teething problems with a new reservation system.

 

Frequent travellers in Western Canada, where Calgary, Alberta-based WestJet has more routes, are likely to find the loyalty scheme especially appealing, said Genuity Capital Markets analyst David Tyerman.

 

But the programme lacks the international reach of Air Canada's Aeroplan loyalty programme, Tyerman said. Air Canada passengers, especially business travellers on long-haul routes, can earn Aeroplan miles fairly quickly. Low-budget carrier WestJet flies shorter routes than its bigger rival and does not have a business class cabin section.

 

(Reuters)

[michgyver 0]

Does any one has the layout of LCCT new wings?

[Pieter C. 5]

Stelios Resigns From easyJet Board Over Strategy

 

May 14, 2010

 

EasyJet founder Stelios Haji-Ioannou has stepped down from the board of the budget airline in order to lead a shareholder revolt against plans to increase the size of its fleet.

 

"For some time I have firmly believed that the easyJet management was pursuing the wrong strategy for the expansion of the business," Haji-Ioannou, widely known as Stelios, said in a statement on Friday.

 

He pointed to the company's share price progress over the last 10 years and lack of dividends to back his criticism of the company's strategy.

 

"How can you buy 200 aircraft with shareholders' money and create no wealth for shareholders?," he said.

 

A long-running battle between Stelios and easyJet's board had already caused the departure of a number of the airline's executives, including Andy Harrison, who resigned as chief executive in December.

 

Stelios had wanted the airline to be more conservative in its expansion plans at a time of low demand for air travel.

 

The airline reached a compromise with Stelios in 2009, when it agreed to scale back growth plans to 7.5 percent of additional capacity a year for the next three to five years.

 

Easyjet said on Friday the board had agreed unanimously on the strategy, which aimed to boost its share of the European short haul market to about 10 percent from today's 7 percent.

 

Board member Bob Rothenberg had also stepped down, the airline said. Both men represent easyGroup, a 26.2 percent shareholder in easyJet.

 

Shares in easyJet, which was established in 1995, closed down 3 percent at 428.5 pence. The airline listed in November 2000 at a price of 310 pence a share.

 

(Reuters)

[Pieter C. 5]

EasyJet Chairman Defends Strategy After Stelios Exit

 

May 19, 2010

 

EasyJet's chairman defended the budget airline's strategy on Tuesday, days after the surprise resignation of its founder, promising investors the board would consider returning cash to shareholders.

 

Shares in airline easyJet fell after founder Stelios Haji-Ioannou, known widely as Stelios, quit the board on Friday. He accused management of pursuing the wrong strategy, pointing to a lack of share price progress and the absence of a dividend.

 

Chairman Michael Rake, in a letter to shareholders, said the board was "surprised and disappointed" to find itself in dispute with Stelios and said he considered there were no grounds for a dispute.

 

Rake said the board kept the issue of returns to shareholders "under review": "Given the strong underlying performance of the company this year, I believe the board could well be in a position to consider the matter of some sort of return within a reasonable time frame."

 

Stelios also revolted against plans to increase the airline's fleet, but Rake said easyJet's stated medium term growth rate of 7.5 percent in seats flown per year was approved unanimously by the board last June.

 

He added no further orders would be placed with Airbus until the group's new chief executive and finance director, Carolyn McCall and Chris Kennedy, join on July 1.

 

In a separate dispute over the easyJet brand, the company said its interpretation of the brand license was well-founded and would not be offering concessions to Stelios's easyGroup.

 

Stelios controls 26 percent of easyJet via easyGroup, while his brother owns 11 percent.

 

(Reuters)

[Pieter C. 5]

Air Berlin Optimistic 2010 Earnings Will Rise

 

May 20, 2010

 

Air Berlin said it was optimistic its 2010 operating profit would exceed the year-earlier level as long as volcanic ash over Europe did not cause persistent air traffic disruptions.

 

So far, the cloud from a volcano in Iceland had cost Germany's second-biggest airline after Lufthansa EUR€40 million euros (USD$49.66 million), the carrier said on Thursday.

 

Europe has been dogged for weeks by repeated shutdowns of air traffic since an erupting volcano under the Eyjafjallajokull glacier in Iceland started spewing ash in April.

 

The biggest closure so far lasted for almost a week from April 15, causing about 100,000 flight cancellations, stranding millions of passengers, and costing airlines more than USD$1.7 billion in lost revenue.

 

Air Berlin said it sees 2010 earnings before interest and tax (EBIT) exceeding 2009's EUR€28.5 million, with more than 10 percent sales growth.

 

The company had already said on Tuesday its first-quarter EBIT loss widened to EUR€98.6 million from EUR€87.3 million a year earlier.

 

(Reuters)

[Pieter C. 5]

Air Arabia Egypt To Start Flights In June

 

May 24, 2010

 

UAE-based low cost airline Air Arabia will begin flights on its new Egypt-based carrier in June after it received an operating certificate from Egyptian authorities.

 

Air Arabia, the Arab world's largest listed airline, said commercial flights on Air Arabia Egypt would commence from the Egyptian Mediterranean coastal city of Alexandria to Khartoum and Kuwait.

 

"Air Arabia is continuously expanding to offer a wider segment of customers the best value for money choice for air travel," Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia Group said in a statement.

 

"We are confident that Air Arabia 'Egypt' will pursue the success path that our hubs in the UAE and Morocco have followed, by complementing our ever growing network of destinations."

 

Air Arabia, set up approximately six years ago, already has a hub flying from Morocco as it looks to diversify away form increased pressure in its home market. It had previously said it aimed to launch operations in Egypt by mid-April.

 

Air Arabia had said in August it planned to set up a new hub between its base at Sharjah in the United Arab Emirates and North Africa to diversify its revenues and boost its catchment area.

 

Air Arabia said the new carrier, starting with two aircraft, would serve the Europe, Middle East and Africa (EMEA) markets, and represents Air Arabia's third hub after the UAE and Morocco.

 

Air Arabia faces growing competition in the Gulf Arab region from rivals including Kuwait's Jazeera Airways and Dubai-owned flydubai, but also from bigger carriers struggling to cope with a sharp drop in international passenger travel.

 

(Reuters)

[Pieter C. 5]

May 25, 2010

 

JetBlue pilot removed from flight after threatening ‘spectacular’ suicide

 

JetBlue Airways on Thursday pulled one of its pilots from a flight at Boston Logan after he reportedly sent an e-mail to his girlfriend threatening to take his own life in what he described as "some spectacular fashion." The pilot's girlfriend, a flight attendant, reported the e-mail to authorities, who intercepted the pilot in a crew lounge an hour before the 2:30 p.m. flight, ABC News said. JetBlue, said the pilot was removed "for health-related reasons." BOS Federal Security Director George Naccara told media outlets that the pilot made no reference to endangering the aircraft or harming anyone else other than himself. "As it was described it was probably going to happen during an overnight. So, my guess would have been someplace other than in the airport or an airplane," Naccara said in an interview with WBZ-TV.

 

Though it declined to elaborate or to answer further questions about the pilot or flight in question, JetBlue corroborated Naccara's statement, telling "At no point were any customers or aircraft in danger. We are working closely with Boston authorities to ensure our crewmember receives appropriate medical attention." According to ABC News, the pilot voluntarily agreed to be transported to a hospital for evaluation after being confronted by law enforcement and allegedly was relieved of a firearm but was not charged with firearm possession. Owing to security concerns, it is unclear whether the pilot was part of the Flight Deck Officer program, run by the Federal Air Marshal Service, which puts armed agents on select airline flights. State Police spokesperson David Procopio told ABC News that a federal investigation is ongoing.