LCC news

[Hakan 2]

ooops I forget, 737 hasn't got fueldump systems. It should be land over maximum landing weight.yes you are right it is well done,congratulations to flight crew.

[Yusoff 1]

http://avherald.com/h?article=40fc7579&opt=0

 

Accident: Ryanair B738 at Rome on Nov 10th 2008, engine and landing gear trouble, temporarily departed runway

By Simon Hradecky, created Monday, Nov 10th 2008 09:37Z, last updated Tuesday, Nov 11th 2008 18:44Z

 

A Ryanair Boeing 737-800, registration EI-DYG performing flight FR4102 from Frankfurt Hahn (Germany) to Rome Ciampino (Italy) with 166 passengers and 6 crew, performed an emergency landing into Ciampino following multiple bird strikes. The airplane veered off runway 15 temporarily during the landing rollout. The crew managed to bring the airplane back onto the runway and stopped the airplane on the runway. The passengers were evacuated via slides upon command by fire services. Ryanair reported 10 minor injuries in a later press release.

 

Fire engines foamed the airplane. The airport was closed for more than 35 hours and reopened Tuesday 19:30 local (18:30Z).

 

Airport sources reported, that the airplane had suffered a burst tyre upon landing, veered temporarily off the runway, but returned onto the runway and came to a safe stop, after which arriving fire services ordered the evacuation of the airplane.

 

The fire chief at Ciampino reported, that the crew declared emergency following problems with one of the engines. The landing gear failed to function properly thereafter causing the airplane to depart the runway, he continued.

 

Ryanair reported in a first press release, that the airplane experienced multiple bird strikes to both engines while on approach to Ciampino Airport. The airplane was brought to a safe stop by the crew. All passengers exited the aircraft safely and were brought to the terminal. Ryanair engineers are currently inspecting the airplane and the engines to assess the damage.

 

In a second press release Ryanair confirmed, that the left hand main landing gear suffered substantial damage following the emergency landing because of multiple bird strikes. 2 crew and 3 passengers were brought to a hospital with minor injuries. The airplane is currently still on the runway pending investigation by Italian Authorities. Luggage has not yet been allowed to be removed from the airplane. The picture of the airplane released by Ryanair shows the airplane just before the runway end with a collapsed left main gear, the airframe resting on the left engine, with multiple blood stains on the nose cone.

 

In a third update Ryanair said, that 2 cabin crew and 8 passengers needed medical attention after landing.

 

While Ciampino remains closed until the aircraft can be removed from the runway, all traffic has been diverted to Rome's Fiumicino Airport. The Airport Authority announced, that the airport reopened on Tuesday 19:30 local (18:30Z) after a closure of more than 35 hours. Tuesday morning the airplane was still firmly at the threshold with specialists preparing to remove the aircraft.

 

The Italian National Aviation Security Agency (ANSV) responsible for aviation accident investigation reported in the late evening (Nov 10th), that the airplane hit a large flock of starlings. The airplane suffered extensive damage to the left wing, the left main landing gear and the belly of the fuselage. The black boxes have been removed from the aircraft and are being analysed. The investigation (collection of evidence) on the runway has been finished.

 

Passengers reported, that they heard a loud bang followed by violent vibrations of the airplane and burning smell in the cabin, blood and feathers were visible on some passenger windows along the fuselage. One passenger said, that he saw flames out of one engine. Passengers described the actual touchdown from firm to "slamming the aircraft down".

 

Bird satay, anyone?...

 

 

[Pieter C. 5]

Ryanair Sees Second Half Loss, Rebound Next Year

 

November 3, 2008

Irish airline Ryanair posted a 31 percent fall in second-quarter profit on Monday but said it was still confident of breaking even in the full year and rebounding next year if oil prices stay low.

 

Europe's biggest low-cost airline said net profit for the three months to the end of September came in at EUR185.78 million euros (USD$237.3 billion), after deducting an exceptional loss of EUR7.8 million.

 

Scrapping recent warnings of a possible full-year loss after the price of oil fell by half since June, Ryanair affirmed its strategy of cutting fares aggressively and growing capacity to snatch business from struggling rivals across Europe.

 

"There is massive commercial opportunities out there with the weakness of our competitors," Deputy Chief Executive Michael Cawley said, pointing to Alitalia, Iberia, Scandinavian SAS and Austrian Airlines as some peers with weakness to exploit.

 

Ryanair plans to add 33 new aircraft in the next six to seven months, helping it to carry 67-68 million passengers next year, an increase of 8-10 million from this year and taking Ryanair to second place behind Air France-KLM, Cawley said.

 

"I think it's the right strategy, but it will take time to reap the dividends," said Goodbody analyst John Goode.

 

Ryanair expects to generate 15-20 percent lower fares and to make a loss in the second half of this fiscal year, including the seasonally weak winter period which is expected to add to the already long list of casualties among airlines.

 

"Our full year average fare could fall by almost 12 percent, although these lower fares will be largely offset by lower fuel costs (currently USD$73 per barrel in Q4)," Chief Executive Michael O'Leary said.

 

Earnings will rebound strongly next year if oil stays around USD$80 per barrel, O'Leary added.

 

The Dublin-based airline has taken a hedge for 25 percent of its fuel needs for the first half of the 2010 fiscal year at an average USD$77 per barrel, it said. Oil traded around USD$67 on Monday.

 

In a separate statement, Ryanair said it had carried 5.35 million passengers in October, 18 percent more than a year ago, and its average flight was as full as in the same month last year.

 

(Reuters)

 

[Pieter C. 5]

Dubai Low-Cost Carrier In Delay Talks With Boeing

 

November 5, 2008

Low cost airline FlyDubai is talking to Boeing about aircraft delivery after delays due to a strike at the US planemaker's factories, but still aims to begin operating in the second quarter, its chief executive said on Wednesday.

 

"Now the Boeing strike is over -- our first aircraft was supposed to be delivered by April, and we were going to begin about two weeks after -- we're talking to Boeing to understand the delay," Ghaith al-Ghaith told the Reuters Middle East Investment Summit.

 

Boeing resolved a 58-day machinists' strike on Saturday that had halted work on planes at the firm's Seattle-area plants.

 

The government-owned budget carrier ordered 54 Boeing single-aisle 737 aircraft in a deal worth around USD$4 billion in November. It ordered 50 of the planes from Boeing and four from leasing company Babcock & Brown.

 

The airline, which state-owned Emirates said it would help set up, had planned for five planes to be delivered in the first financial year.

 

FlyDubai plans to still launch operations by the second quarter of 2009 and target a "handful" of destinations in its first year as it taps growing demand for travel in the region, Ghaith said.

 

"As far as we are concerned, we're planning to start the airline as we had intended," Ghaith said.

 

"There's definitely a pent (up) demand in this part of the world," he said adding FlyDubai would look at a catchment area of four hours with focus on India, Pakistan, Eastern Europe and Africa.

 

"We have a study that says there are about 70 destinations where we believe there is sufficient business in our five-year plan," Ghaith said, declining to give further details about planned destinations.

 

The new carrier is the fifth in the region that is low-cost and will compete with Sharjah, United Arab Emirates-based Air Arabia and Kuwait's Jazeera Airways, which also operates from Dubai.

 

"We haven't really seen the light as far as open skies is concerned, but we believe the tide is changing, there will be more openings as far as the air politics is concerned," Ghaith said.

 

Gulf Arab airlines have been buying billions of dollars worth of aircraft, banking on their geographical position amidst Europe, East Asia and Africa to trumpet the region as a hub for international passenger traffic.

 

Airlines have also benefited from a more than 50 percent decline in oil prices since it hit an all-time high of USD$147 in July.

 

"When we planned our business plan, we had oil over USD$100. We believe the reduction in the base price will be very good for our business," Ghaith said.

 

(Reuters)

 

[Pieter C. 5]

Norwegian Air's October Traffic, Yield Up

 

November 7, 2008

Budget airline Norwegian Air Shuttle said on Friday that its passenger volume grew 16 percent in October and its yield, an indicator of average fares, rose 9 percent.

 

Total passengers carried rose to 713,956 in October from 616,541 in the same month last year, said Norwegian.

 

The yield, or the average revenue per passenger carried and kilometre flown in the airline's main Norwegian and Polish operations, rose 9 percent to 0.74 Norwegian kroner (USD$0.109) from the same period last year.

 

"The positive yield development is in part due to a shift in capacity allocation to the domestic market characterized by slightly lower load factor but higher yield," Norwegian said in a statement. "The net effect is an increase in unit revenue."

 

Total passenger traffic (RPK), which factors in distance flown, increased in the main operations by 26 percent, Norwegian Air said.

 

(Reuters)

 

[Pieter C. 5]

Gol Sees Slowdown In Brazil Aviation Market

 

November 11, 2008

Brazilian airline Gol Linhas Aereas said on Tuesday it forecasts domestic air travel to grow just 6 percent in 2009 as the economy slows, down from an expected 8.5 percent expansion this year.

 

Despite the expected slowdown, Gol said it would increase investments next year to BRR1.15 billion reais (USD$525 million) from BRR950 million in 2008 as it continues to renew its fleet with next-generation Boeing 737-700s and 737-800s, which are more fuel efficient.

 

On Monday, Gol's larger domestic rival TAM Linhas Aereas also predicted slower growth in air travel in 2009. TAM said it expects domestic air travel to expand between 5 percent and 9 percent next year, down from forecasted growth of 8 percent to 12 percent in 2008.

 

Brazil's aviation market has grown rapidly in recent years thanks to an economic boom that has lifted millions out of poverty and allowed many Brazilians to fly for the first time.

 

(Reuters)

 

Gol Posts USD$209 Mln Quarterly Loss

 

November 17, 2008

Brazilian airline Gol reported a net loss of BRR474.4 million reais (USD$209 million) for the third quarter versus a net profit of BRR49.4 million in the year-earlier period.

 

In a statement, the company said the sharp depreciation of the real against the dollar contributed to losses in its financial operations of BRR399.8 million, with BRR261.8 million of that coming from currency market transactions.

 

In the second quarter of this year, Gol booked a loss of BRR171.7 million.

 

The company's third-quarter earnings before interest, tax, depreciation and amortization (EBITDA) reached BRR100 million, up 85.5 percent from a year ago.

 

(Reuters)

 

[Pieter C. 5]

Air Arabia Buys Extra A320s For Morocco Hub

 

November 12, 2008

Low-cost carrier Air Arabia expects to receive delivery of the first of 44 planes it has on order by mid-2010 after adding 10 Airbus planes to help serve its new Morocco hub, the company said.

 

Chief Executive Adel Ali said the deal was in addition to the USD$3.5 billion aircraft order it made for 34 A320 jets at the Dubai Airshow in November 2007.

 

"We have increased the order to 44... delivery has been brought forward from 2012 to mid-2010," Adel Ali said.

 

The 10 additional aircraft were needed for the Morocco expansion, Ali said. The new hub is due to begin operating early next year giving the United Arab Emirates-based airline access to Africa and Europe.

 

Airbus's A320 family aircraft list prices range between USD$73.2 million and USD$80.6 million, which would make the deal worth about USD$770 million. Ali declined to give a value for the deal.

 

The purchase of an additional 10 planes follows Air Arabia's decision last November to place options on an additional 15 aircraft.

 

Air Arabia, the Gulf Arab region's largest low-cost airline by market value, posted a net profit of 214 million dirhams (USD$58.26 million) in the third quarter, up 30 percent from the year-earlier period as demand grew despite the global financial crisis.

 

Airlines across the world have been hard hit by oil prices that had risen more than six-fold since 2002, with some of the biggest carriers posting steep falls in profits or losses. Dubai government-owned rival Emirates saw profits tumble 88 percent in the first half of the year, due to record fuel prices.

 

Gulf Arab budget carriers, however, have mitigated surging oil prices as they benefit from a regional economic boom and increased passenger traffic in the world's top oil-exporting region.

 

"The deliveries are not for any time soon... It is for their long-term plan and is not taking into consideration current market conditions," Kareem Murad, Vice President - Research at Shuaa Capital.

 

Murad says demand in the Middle East and North Africa region is likely to continue growing, and the planes would partly be used to serve Air Arabia's Moroccan hub, which is due to begin operating in early 2009. It set up a hub in Nepal in January and is expected to open a third hub in the Levant.

 

The total number of passengers in the third quarter stood at 978,794 passengers, an increase of 34 percent from the same period last year, the airline said. It flies to 44 destinations.

 

"If you look at the fundamentals... it is a profitable company even in current conditions, and they are still exceeding expectations," said Murad.

 

(Reuters)

 

[Pieter C. 5]

EasyJet Founder Increases Stake, Wants New Strategy

 

November 14, 2008

EasyJet founder Stelios Haji-Ioannou has raised his stake in the British low-cost airline and wants to appoint two new directors as he pressures the company's board to adopt a more cautious business strategy.

 

The carrier said on Friday that Stelios had increased his shareholding by around 11 percent and wanted the company to reduce an order for new planes and start paying a dividend in response to a growth slowdown caused by the worsening economic climate.

 

"I am merely applying my rights... to protect my investment in easyJet," Stelios responded in a statement. A spokeswoman declined to comment further.

 

EasyJet's chairman, Sir Colin Chandler, said in a statement he supported the management team's current strategy, although the board was discussing the future strategic direction of the company amid the current economic background.

 

"This appears to be open warfare," said Stephen Furlong, airlines analyst at stockbroker Davy.

 

Stelios had transferred shares owned by his sister to his holding company easyGroup, increasing his stake to 26.9 percent from 15.6 percent.

 

His brother Polys owns a further 11.3 percent through investment firm Polys Holdings.

 

EasyJet said Stelios now wanted the airline to scale back its 315-aircraft order with Airbus and start to make dividend payments. EasyJet has never paid a dividend in its eight year history as a quoted company.

 

The two parties are already locked in a separate court battle over the airline's brand licensing agreement with easyGroup.

 

EasyJet said Stelios wanted two new non-executive directors to be appointed at the company, and reserved the right to appoint himself as chairman if the move was blocked.

 

It added that the proposed new directors were both employees of easyGroup.

 

"In all the circumstances I would like to make it clear up front that the other non-executive directors and I fully support the executive management of the company." Chandler said.

 

Stelios, 41, floated easyJet on the stock-market in November 2000, but remained chairman until 2002. He stepped down from the board for around three years, but in 2005 took on a non-executive director role that he still holds.

 

Shares in easyJet, which reports its full-year results on Tuesday, closed down 4.8 percent at 266.25 pence, valuing the company at close to GBP1.1 billion pounds (USD$1.63 billion).

 

The shares have more than halved in price since the beginning of the year, costing Stelios a paper loss of about GBP170 million, but are down just 3 percent in the past six months.

 

Douglas McNeill, airline analyst at stockbrokers Blue Oar, said the market was still mulling how to read the comments.

 

"On the one hand you have conflict at board level, which is undesirable. But there is also the prospect of a change of strategy and the distribution of cash," he said.

 

"The rapid rate of expansion that has been planned requires a huge amount of cash to be spent on new planes. Stelios clearly thinks that cash could be better used elsewhere."

 

EasyJet told analysts at a presentation in September it expected cash at September 30 to be around GBP900 million. It has a total order for 315 aircraft from Airbus, of which 120 have already been delivered.

 

Its current fleet is 165 aircraft. It said in the presentation the figure would be 200 by 2011, although a group spokesman said the number was under review.

 

Stelios now holds close to the 29.9 percent of the company that would trigger a takeover bid.

 

(Reuters)

 

Stelios Refuses To Sign Off EasyJet Accounts

 

November 18, 2008

A boardroom row at British low-cost airline easyJet escalated on Tuesday as the company said its high profile founder and non-executive director Stelios Haji-Iannou had refused to approve its annual accounts.

 

In a statement attached to easyJet's full-year results, 27 percent shareholder Stelios said he disagreed with some of the airline's accounting policies relating to the recent acquisition of GB Airways.

 

Stelios also repeated demands for the payment of a dividend and for the appointment of two new non-executive directors of his choice, although he said his stance was not an attempt to return to power and backed current chairman Colin Chandler.

 

The dispute with Stelios, who had stepped down as chairman in 2002, emerged last week as he called for the payment of a dividend and a more cautious growth strategy.

 

"I regret to inform you that as a director of easyJet I am unable to approve the annual accounts," he said in Tuesday's statement, adding his disagreement related to the valuation of parts of recent acquisition GB Airways -- including aircraft and slots at Gatwick Airport near London.

 

"On a separate manner, we must pass a board resolution to plan to pay a dividend by, say, 2011 if the markets and the liquidity of the company allow," he added.

 

His demands came as easyJet said it expects to remain profitable in the year to September 2009, as it reported first quarter winter bookings ahead of last year while it was cutting costs and preserving its cash base.

 

It reported 2007/08 pretax profit down 35 percent to GBP123 million pounds (USD$183.4 million) for the year to the end of September.

 

"EasyJet delivered a good trading performance in the financial year ending September 2008... We recognise that economic conditions will be very difficult and easyJet is planning accordingly," chief executive Andy Harrison said in a statement.

 

The rest of the board support Harrison in the dispute with Stelios, the company said.

 

"EasyJet is well placed to emerge as a winner, due to our cost base, strong balance sheet, new fuel-efficient fleet and the quality of the easyJet network," Harrison said in a statement.

 

He added that the group's 315-aircraft plane order with Airbus was flexible, while the group's cash position stood at GBP863 million.

 

(Reuters)

 

[Pieter C. 5]

Unions !!!

 

Trustees Ditch Sale Of Collapsed Airline Sterling

 

November 18, 2008

Negotiations to sell the remaining parts of collapsed Nordic budget airline Sterling have been abandoned, one of the Danish bankruptcy trustees, law firm Kromann Reumert, said on Tuesday.

 

Sterling last month filed for bankruptcy protection after its Icelandic owner could no longer support it financially.

 

The Denmark-based carrier, which has struggled with high fuel bills and expansion costs, grounded all its aircraft, leaving thousands of passengers stranded at airports across Europe.

 

Kromann Reumert said in a statement that demands had been made from all potential buyers of Sterling that new agreements be reached with pilots and cabin crews for a new Sterling to be sustainable, but that union representatives had rejected the terms.

 

Danish trade union Dansk Funktionaerforbund Serviceforbundet said on Monday that demands had been made that would have worsened working conditions for its members.

 

Kromann Reumert said that the attempt to save jobs by a sale of the intact activities of Sterling were now definitely at an end and that 430 remaining employees would be made redundant.

 

Nordic airlines Norwegian and SAS have taken advantage of the sudden disappearance of a competitor adding new routes and capacity.

 

(Reuters)

 

Transavia.com (from NL) will also base 2 737's in Denmark, mainly at CPH and BLL

 

[Pieter C. 5]

Southwest Bids For ATA's LaGuardia Slots

 

November 19, 2008

Southwest Airlines said on Wednesday it has submitted a USD$7.5 million bid to buy bankrupt ATA Airlines in order to obtain its rights to operate at New York's LaGuardia Airport.

 

It's a significant move for the biggest US domestic carrier, which has only served the New York metropolitan market at the much smaller and more distant Islip MacArthur Airport on Long Island.

 

Southwest said its bid was submitted as part of the auction for ATA's assets in the US Bankruptcy Court in Indianapolis. Southwest said it had no plan to operate ATA or take on any of its planes, equipment or staff.

 

ATA, which entered bankruptcy in April, has 14 slots at LaGuardia, permitting up to seven daily round-trip flights from the airport.

 

Southwest would need approval from the bankruptcy court and Federal Aviation Administration and the Port Authority of New York and New Jersey before it could operate flights out of LaGuardia. It did not say what destinations such flights would serve.

 

(Reuters)

 

Good move of Southwest !!!

 

[Pieter C. 5]

Air Berlin, TUIfly Merger Talks Falter

 

November 24, 2008

Merger talks between Air Berlin and charter airline TUIfly are close to collapsing, sources familiar with the matter said on Monday.

 

"Prospects for an agreement are bad, but a final decision has not yet been made," one source said.

 

A spokesman for Air Berlin, Germany's second-biggest airline, said talks were ongoing, and Tuifly declined to comment on the matter.

 

TUIfly is part of TUI Travel, which is majority-owned by German tourism group TUI.

 

Last July, Air Berlin scrapped its takeover of Thomas Cook's charter airline Condor, putting the brakes on attempts to expand its network to rival Lufthansa.

 

It blamed having to call off the deal on high oil prices and a slowing economy.

 

(Reuters)

 

[Pieter C. 5]

AirTran's Future Improves After Painful Struggles

 

November 25, 2008

AirTran Airways, once seen as a likely casualty of the oil price spike that claimed several smaller rivals this year, seems to have found its way out of the woods and may be positioned for profits in 2009.

 

By some estimates, the low-cost airline had a brush with oblivion in the first half of this year as oil and jet fuel raced to record highs and pummeled the airline industry.

 

But a series of liquidity-boosting steps and a few lucky breaks have brightened the future of the Orlando, Florida-based airline which has an Atlanta hub.

 

"The fuel price spike had put extreme pressure on AirTran's cash flow and liquidity by midsummer, and unrestricted cash balances had dropped to very uncomfortable levels," said Bill Warlick, senior director at Fitch Ratings.

 

"But the rapid decline in jet fuel costs and the big cuts in domestic capacity have improved the carrier's cash flow prospects considerably," he said.

 

AirTran, of course, was not alone is its predicament. The entire industry was clobbered in the first half of the year by fuel prices that rallied with oil to a record high in July.

 

Other airlines of comparable or smaller size had begun to feel the strain. A handful of small carriers went out of business, and Frontier Airlines filed for bankruptcy.

 

AirTran, meanwhile, was broadly viewed as having a dangerously low liquidity position -- USD$356 million as of December 30, while fuel prices continued to drain the cash.

 

Furthermore, it faced a growing threat from its Atlanta rival Delta Air Lines, which announced a merger with Northwest Airlines in April. With that merger complete, AirTran now competes at its only hub with the world's largest airline.

 

Because of AirTran's enviable East Coast presence, its nimble point-to-point route structure and falling stock prices, some experts saw the company as a promising takeover target.

 

"I think the theory was it would have been a reasonably priced transaction for an extraordinary airline," said Stuart Klaskin at KKC Aviation Consulting.

 

"They were determined not to get themselves caught in a bit of a death spiral," Klaskin said.

 

Airline shares tumbled across the board as the industry piled up quarterly losses. Between January 1 and July 14, AirTran stock fell more than 80 percent before stabilizing at a little more than USD$1 as share.

 

That compares with a 60 percent decline in the Amex airline index during the same period. AirTran shares have since rebounded to near USD$2.85.

 

A rapid decline in fuel prices took the pressure off airlines in the third quarter, but losses mounted as carriers had purchased fuel when prices were still near the highs. AirTran posted a third-quarter loss, reversing a year-ago profit.

 

All the while, chaos in the US economy threatened to erode travel demand. Against this dreary backdrop, AirTran hustled to regain its footing.

 

"We had a tough year, but we managed through it," said Steven Rossum, AirTran's executive vice president of corporate development.

 

"We've worked hard at managing our liquidity, and it requires a lot of our management time," he said.

 

The airline has taken giant steps toward improving its liquidity position, which was USD$402 million at the end of the third quarter, compared with USD$356 million at the end of the fourth quarter of 2007.

 

To achieve this feat, AirTran constructed a USD$215 million financing facility in two stages: a USD$90 million revolving credit line and USD$125 million in letters of credit.

 

AirTran also rescheduled plane deliveries, sold some aircraft, sold other equipment and leased it back, reworked deals with certain business partners and reduced capacity.

 

The carrier still has a bond rating of CCC+, which is below junk threshold. But Rossum is optimistic the rating will rise.

 

"It takes a long time to dig out of the credit rating hole," he said.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Yields To Fall, Offsetting Fuel Benefit

 

November 25, 2008

Irish airline Ryanair said on Tuesday that its winter yields will fall by 15-20 percent, offsetting the benefits of lower fuel prices, and said it would stop flights from Blackpool due to a new tax.

 

Europe's biggest low-cost airline also said it expected passenger numbers for the 12 months to March to rise by 14 percent to 58 million from a year before.

 

The spokesman said the fall in winter yields referred to the period October to March inclusive. Oil, which fell to below USD$53 a barrel on Tuesday, has dropped by almost USD$100 from the record high above USD$147 hit in July.

 

"We did get slightly burnt (by oil prices), but we are really gaining on it now," a Ryanair spokesman told reporters. "We expect the oil price will continue to fall."

 

Ryanair repeated that it expected to break even in the full-year and that it plans to double traffic and profits between 2007 and 2012.

 

It said it plans to end flights from the seaside resort of Blackpool in January ahead of the introduction of a new GBP10 pound development tax, and also said its traffic into Shannon looked set to fall by "at least 75 percent" by this time next year due to Irish tax increases.

 

On Monday the UK government said the tax for flying out of British airports is to be raised by at least 10 percent and will double in some cases by 2010.

 

(Reuters)

 

Same as Maastricht-Aachen Airport: RYR will stop there effective January 2009 (terminating the last scheduled service from that airport), also due to the co2-tax required by the Dutch Government !!!

(btw, RYR flights from Brussels-South will be increased, as Belgium doesn't have this taxlevied to airlines/passengers)

 

[GeO 0]

Is that Air Tran also known as Air Transat?

[Pieter C. 5]

Is that Air Tran also known as Air Transat?

 

Nope, completely different companies: AirTran is ATL based and Air Transat is Canadian...

[Pieter C. 5]

Blue1 To Lay Off Pilots, Cut Routes

 

November 28, 2008

Blue1, the Finnish subsidiary of Scandinavian airline SAS, plans to temporarily lay off pilots and trim its routes due to weaker demand, the firm was quoted as saying on Friday.

 

Some 100 Blue1 pilots will be laid off for around 10 days between January and May, and the firm will halt less-profitable southern European routes for the winter. Blue 1 is also seeking partners on other routes where passenger numbers have fallen.

 

"In total we have reduced our capacity slightly and passenger numbers have fallen around 10 percent from last year," Blue1 spokesman Tom Christides told national Finnish broadcaster YLE.

 

Blue1 would also consider trimming its fleet from two aircraft models to one, with Christides saying its MD90s were too big considering the weak demand.

 

One "strong option" would be switching to smaller Boeing 737-600 series planes that SAS is already using on other routes.

 

(Reuters)

 

[Pieter C. 5]

Apparently, 'they' won't rest before they control the other Irish airline

 

Ryanair Makes New, Half-Price Bid For Aer Lingus

 

December 1, 2008

Ryanair, Europe's largest low-cost airline, on Monday offered to buy Irish rival Aer Lingus for EUR750 million euros (USD$970.4 million) or just half the price of its bid in 2006 which was blocked by the European Union.

 

Ryanair, which already owns 29.82 percent of Aer Lingus, said the all-cash offer at 1.40 euros per share represented a 28 percent premium over the closing price of Aer Lingus shares for the 30 days to 28 November 2008.

 

A spokeswoman for Aer Lingus, which strongly opposed Ryanair's last offer, declined to comment.

 

Ryanair's chief executive, Michael O'Leary, told CNBC the economic and regulatory environment had changed markedly since Ryanair's last move on Aer Lingus was thwarted by the regulatory authorities.

 

"It (Aer Lingus) is increasingly viewed as a small, peripheral airline that has been bypassed by EU consolidation," he said. "I think that without this bid Aer Lingus will continue to be isolated and loss making."

 

For its latest bid to succeed Ryanair would also have to overcome opposition from the Irish government and Aer Lingus employees who both own stakes in the airline and rejected Ryanair's last offer.

 

O'Leary said he believed Aer Lingus staff would be more welcoming this time round given job losses at the airline over the last two years.

 

Ryanair said in its offer document that it would double the size of Aer Lingus's short haul fleet to 33 from 66 over the next five years, creating 1,000 new jobs at the former state airline.

 

(Reuters)

 

 

Flybe In Talks To Buy Bmi Regional, Bmi Baby

 

December 1, 2008

British airline Flybe is in talks to buy British Midland's subsidiary operations bmi regional and bmi baby, a newspaper reported on Sunday.

 

The two airlines are not core to the strategy of British Midland's new owner, Lufthansa, the Mail on Sunday said.

 

Lufthansa took over British Midland last month, but the German airline has indicated it is more interested in bmi's long-haul routes and valuable Heathrow slots than in the two subsidiaries.

 

Bmi regional is UK-focused, while bmi baby is a low-cost airline that flies to a number of European destinations.

 

Privately-owned Flybe is in due diligence for the two businesses, which together make up about 40 percent of British Midland's turnover, the newspaper reported.

 

Analysts have previously touted Flybe as a potential buyer of bmi regional, saying it would fit in well with Flybe's strategy of trying to consolidate the UK regional market.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Seeks Aer Lingus Shareholders Meeting

 

December 2, 2008

Ryanair said on Tuesday it was seeking to meet Aer Lingus shareholders after the board of its Irish rival rejected a new EUR750 million euro (USD$945.6 million) bid by Europe's biggest budget airline.

 

Ryanair, which has already bought 29.82 percent of Aer Lingus shares at an average 2.49 euros, on Monday made its all-cash offer at 1.40 euros per share, representing a 28 percent premium over the average closing price for Aer Lingus shares in the 30 days to November 28.

 

Aer Lingus turned down the previous approach from its rival at Dublin Airport, and its board on Monday rejected the fresh offer as "significantly" undervaluing the airline and strongly advised shareholders to take no action.

 

A Ryanair spokeswoman said the carrier was seeking meetings with the Irish government and other Aer Lingus shareholders, as one analyst said a deal might benefit the Irish airline industry in the long term.

 

The government has a 25.1 percent stake in the carrier, which was privatized in 2006, while employees hold 14.2 percent. A further 30.8 percent stake is held by other investors including a 2.27 percent holding by billionaire Denis O'Brien.

 

Education and Science Minister Batt O'Keeffe told public broadcaster RTE TV late on Monday a merger of the two airlines at this point "would not be in keeping with government policy".

 

"Let's see the offer," he said, adding that the government had to take on board the rejection by Aer Lingus's board.

 

Ryanair chief executive Michael O'Leary said on Monday it was "no surprise" the Aer Lingus board turned down the offer adding that the offer document would be published shortly.

 

O'Leary said he believed Aer Lingus staff would be more receptive this time, given recent job losses at the airline. But unions said they had major concerns over jobs prospects and competition.

 

Ryanair's fresh bid was just half of what it offered in 2006. That approach was rejected by the European Commission on the grounds it would create a near monopoly in European flights out of Dublin.

 

Analysts believe a recent spate of airline mergers means the chances of success would be greater this time, even if a takeover would still prove highly contentious in Ireland.

 

Friends First Chief Economist Jim Power said an open mind on the new offer was needed.

 

"We must not allow ideological blind spots or past enmities to get in the way of a proposal that could be in the best long-term interests of the Irish airline industry and of the Irish economy," Power wrote in the Irish Independent on Tuesday.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Woos Irish Govt, Staff In Aer Lingus Bid

 

December 5, 2008

Ryanair offered guarantees to trade unions and the Irish government on Thursday to try and win them over to its EUR750 million euro (USD$946.4 million) offer for loss-making flagship carrier Aer Lingus.

 

Ryanair, Europe's biggest budget airline, is trying to appeal directly to the government and employees, who own over 25 percent and 14 percent of the airline respectively, after the Aer Lingus this week rejected the all-cash offer -- the second in as many years.

 

Ryanair said it would give the Irish government control over Aer Lingus' valuable landing slots at London Heathrow Airport and restore the Shannon-Heathrow route.

 

"By giving watertight control over Aer Lingus' (Heathrow) slots, we effectively remove any need for the Irish government to retain a strategic shareholding," chief executive Michael O'Leary told a news conference.

 

Ryanair tried to buy Aer Lingus for double the price of its current bid in 2006 but was thwarted by the European Commission, which ruled it would create a near monopoly in European flights out of Dublin.

 

Employees and the government also rebuffed Ryanair's earlier offer.

 

To allay competition concerns about its latest bid, made against a backdrop of a rapidly consolidating industry, Ryanair offered a EUR100 million guarantee that Aer Lingus' short haul fares would be reduced by at least 5 percent for three years and a similar guarantee that the former state carrier's fuel surcharges would be eliminated.

 

Analysts believe a recent spate of airline mergers and the absence of another suitor give Ryanair a better chance of getting this offer past competition authorities in Brussels.

 

In the meantime, the biggest hurdles are at home.

 

"If you can get the backing of shareholders, including the Irish government, the chances of getting approval from Brussels are greater," said Gert Zonneveld, analyst with Panmure Gordon. "They want to do everything they can to show they are serious."

 

Ryanair, which already owns nearly 30 percent of Aer Lingus, said it would recognize trade unions at the airline, in contrast to its own company policy.

 

Aer Lingus employees, already facing an uncertain future as the national carrier faces a deepening recession, are even more doubtful about the possibility of life under the famously combative O'Leary.

 

O'Leary, who met Ireland's Transport Minister late on Wednesday, said he would meet staff representatives in the next few days.

 

A spokeswoman for the Irish government said Dublin would wait until Ryanair tables a formal offer, expected within the next two weeks, before giving its opinion.

 

Ryanair's dominance on most Irish routes meant there was already little competition in the country's aviation industry, O'Leary said, reiterating his view that consolidation in the sector across Europe had improved the bid's chances.

 

"Our chances of success this time are better than they were the last time, but that's not confidence on our part," he said.

 

(Reuters)

 

[Pieter C. 5]

Vueling November Traffic Falls 28 Percent

 

December 6, 2008

Passenger traffic at budget Spanish airline Vueling fell 28 percent to 356,930 passengers in November, it said on Friday.

 

The airline's passenger load factor rose 1.7 percentage points on the year before to 65.3 percent, as Vueling cut flights to cope with cut-throat competition, high fuel costs and an economic downturn hitting Spain's tourist industry.

 

In a statement, Vueling said it operated seven fewer planes in November than it did the same month of 2007, or 30 percent less.

 

The Barcelona-based airline has been cutting its fleet since the start of the year, helping it cut costs, it said in its statement.

 

It is also targeting business passengers and bigger-spending passengers to boost its revenue per flight.

 

(Reuters)

 

[Pieter C. 5]

SkyEurope's full-year loss more than doubles

 

Monday December 8, 2008

SkyEurope Airlines reported a €59.4 million ($75.4 million) loss in the fiscal year ended Sept. 30, more than double the €24.1 million suffered in the prior year, as benefits from a restructured and streamlined network failed to materialize in time to offset record fuel costs.

 

The LCC consolidated capacity at Vienna, Bratislava and Prague in order "to establish a less seasonal and price-sensitive network" with higher aircraft and crew utilization, but experienced "downward pressure on scheduled revenue" as the new network matured. "This trend is expected to full reverse in FY 2009," it said.

 

Full-year revenue rose 10.5% to €260.9 million and operating loss deepened to €56.1 million from €20.9 million in the year ended Sept. 30, 2007. It transported 3.8 million passengers, up 13.6%, and ended the year with 15 737-700s, one more than the previous year. Load factor fell 8.1 points to 73.6% and unit revenue declined 5.4% year-over-year to 5.28 euro cents. Unit cost rose 5.6% to 6.41 euro cents but was down 5.3% to 4.46 euro cents excluding fuel. Ancillary revenue rose 110.4%.

 

In November the LCC transported 219,590 passengers, down 22.8%, on a 21.4% capacity cut. Load factor fell 1.2 points to 68.4%.

 

In the current fiscal year SkyEurope expects to "benefit from the positive effects" of its restructuring and to enjoy "strong revenue growth" owing to "network maturity" and ancillary revenue. Winter season capacity will be down 19% year-over-year.

 

 

[Pieter C. 5]

Ryanair Suffers Double Setback In Aer Lingus Bid

 

December 12, 2008

Ryanair suffered a double blow in its bid for Aer Lingus on Friday as the target's chairman said he would seek a "white knight" investor to defeat the approach and regulators blocked parts of the offer for its rival.

 

Aer Lingus Chairman Colm Barrington was quoted in a newspaper interview saying he would seek a friendly investor to take a majority stake in the airline and stave off Ryanair's EUR750 million euro (USD$989.3 million) bid.

 

"If they don't get us this time around, they won't get us again because I am not going to stay as chairman for three years and have this hanging over me," Barrington told the Irish Times.

 

His comments came as Ireland's Takeover Panel ruled out elements of Ryanair's offer, saying sweeteners included in its initial proposals could breach takeover rules by favouring one shareholder, namely the government.

 

Ryanair said it strongly disagreed with the panel's ruling and said the commitments were designed to reassure all stakeholders including employees, consumers and the government.

 

"Ryanair intends to proceed with the proposed offer... in a form consistent with the constraints imposed by the Irish Takeover Panel," it said in a statement.

 

Barrington said he had not identified a perfect partner for Aer Lingus, but said from a consumer and a national point of view Air France KLM "would be a better option than Ryanair". Air France KLM declined comment.

 

Aer Lingus's board has rejected Ryanair's all-cash bid of 1.40 euros a share, arguing it significantly undervalued the airline.

 

The Takeover Panel said Ryanair's pledges to give the state control over Aer Lingus's valuable landing slots at London Heathrow Airport, and to provide bank guarantees to cut the carrier's fares and abolish fuel surcharges, would favour the government.

 

"Consequently, the panel has given a direction... to Ryanair prohibiting it from extending these undertakings," the Panel said in a statement.

 

The Panel also said Ryanair should drop promises to recognize trade unions at Aer Lingus and restore flights between Shannon in the west of Ireland and Heathrow -- unless it can clarify to whom the pledges have been made and that they meet takeover rules.

 

Unions, which are not recognized at Ryanair, have rejected the guarantees and remain concerned over job prospects.

 

Europe's biggest budget airline tried to buy Aer Lingus for double the price of its current bid in 2006, but was thwarted by an EU ruling that it would create a near monopoly in European flights out of Dublin.

 

Yet Aer Lingus's campaign to remain independent could be a hard sell when small airlines are being gobbled up across Europe.

 

Analysts say the wave of consolidation could give Ryanair a greater chance of success in getting its offer past European competition authorities. But Barrington, who was appointed chairman in September, was not convinced.

 

"Airline consolidation is a bit like sex, there's more talk about it than actually takes place," he said.

 

Aer Lingus announced a job-cutting deal with unions and a pay freeze which it said would deliver EUR50 million in savings. Before it secured the deal it had said it would report an operating loss next year.

 

Barrington did not rule out a link-up with a private equity group. "It could be a short-term solution for independence, but private equity can be fickle too," he said.

 

Barrington, who knows Ryanair chief executive Michael O'Leary from their days working for the airline's founder Tony Ryan, said Aer Lingus would also consider issuing shares to dilute its rival's near 30 percent shareholding.

 

Ryanair has tried to appeal directly to the government and employees, holders of more than 25 percent and 14 percent of the former state carrier.

 

Aer Lingus shares ended 0.3 percent up at 1.49 euros in London, while Ryanair's shares fell 3.1 percent to 2.95 euros.

 

(Reuters)

 

[Pieter C. 5]

Staff Back Aer Lingus Staying Independent

 

December 14, 2008

Staff at Aer Lingus support the airline remaining independent despite the EUR750 million euro (USD$995 million) takeover bid by rival Ryanair, chief executive Dermot Mannion said on Sunday.

 

Aer Lingus's board has rejected Ryanair's all-cash bid of 1.40 euros a share, saying it significantly undervalued the airline.

 

Ryanair, Europe's biggest budget carrier, which already has a near 30 percent shareholding in Aer Lingus, has tried to appeal directly to the government and employees, holders of more than 25 percent and 14 percent of the former state carrier.

 

"I have had tremendous messages of support from staff right across the organization -- all of whom are hugely positive about this notion of continuing the path of Aer Lingus as an independent organization going forward," Mannion told public broadcaster RTE on Sunday.

 

The Sunday Independent newspaper quoted Irish billionaire Denis O'Brien, who has over a 2 percent stake in Aer Lingus, as telling an investment forum last week that he opposed any Ryanair effort to take over its rival.

 

The government has said it awaited Ryanair's offer document.

 

Mannion said it was talking to all of its shareholders and met the government last week, adding that the state would make its decision "in its own good time".

 

"Once we receive the formal offer from Ryanair, it may come some time this week, we will then respond with a document. It is called a defence document," Mannion said.

 

"It will be a very positive, affirmative document that will set out an independent strategy for long-term growth on short-haul and on long-haul in the business. That I believe is what all of stakeholders want to see and want to hear."

 

Aer Lingus Chairman Colm Barrington was quoted in a newspaper interview on Friday as saying he would seek a friendly investor to take a majority stake in the airline.

 

Mannion said in response on Sunday: "The Aer Lingus business is not for sale. We have set out an independent strategy going forward and we are going to stick to just that."

 

Ireland's Takeover Panel on Friday ruled out elements of Ryanair's offer, saying pledges to give the state control over Aer Lingus's valuable landing slots at London Heathrow, and to provide bank guarantees to cut the carrier's fares and abolish fuel surcharges, would favour the government.

 

The panel also said Ryanair should drop promises to recognize trade unions at Aer Lingus and restore flights between Shannon in the west of Ireland and Heathrow -- unless it can clarify to whom the pledges have been made and that they meet takeover rules.

 

Ryanair said the commitments were designed to reassure all stakeholders including employees, consumers and the government, adding it would proceed with the offer in a form "consistent with the constraints imposed by the Irish Takeover Panel".

 

Unions, who are not recognized at Ryanair, have rejected the guarantees and remain concerned over job prospects.

 

Ryanair's chief executive, Michael O'Leary, is expected to appear before a parliamentary committee on Thursday to outline its proposals for Aer Lingus.

 

Ryanair tried to buy Aer Lingus for double the price of its current bid in 2006, but was thwarted by an EU ruling that said it would create a near monopoly in European flights out of Dublin.

 

Analysts say other proposed industry consolidation moves could give Ryanair a greater chance of success this time around in getting its offer past European competition authorities.

 

(Reuters)

 

[Pieter C. 5]

Ryanair releases details of EI bid with new guarantees, Jan. 5 deadline

 

Tuesday December 16, 2008

Ryanair officially presented its €1.40 ($1.87) per share offer to Aer Lingus investors yesterday, giving them until Jan. 5 to decide whether to create "one leading, financially strong, Irish-run airline group."

 

The offered share price represents a €748 million offer, a premium of approximately 28% over the average closing price for the 30 days ended Nov. 28 (the last business day prior to Ryanair's announcement that it would launch a second bid for EI) and a considerable drop from the €2.80 it offered two years ago. Ryanair guaranteed that EI would stay a separate company and that both its brand and its slots and connectivity at London Heathrow would remain. It plans to double EI's short-haul fleet over the next five years to 66 aircraft, creating 1,000 new jobs.

 

It also promised the EI chairman a seat on the Ryanair board and said the Irish government--which Ryanair said has "no realistic alternative"--would receive €188 million in cash while EI staff and the employee stock ownership trust would gain €137 million. Ryanair currently holds 29.8% of EI.

 

The Irish Takeover Panel last week blocked an effort by the LCC to court governmental favor by offering it control of EI's LHR slots and two €100 million bank guarantees. In the document released yesterday, Ryanair said it would convene an extraordinary general meeting of EI to propose a "special resolution" ensuring that the LHR slot holding "cannot be sold, transferred, leased, switched, surrendered, mortgaged. . .or otherwise disposed of by Aer Lingus or Ryanair. . .without the affirmative vote of both Houses of the Oireachtas." It said the bank guarantees, linked to a promise of a cut in short-haul fares and elimination of fuel surcharges, would go to charity.

 

"Only Aer Lingus believes it has an independent future," Ryanair said, citing the sales and/or mergers of flag carriers from Austria, Belgium, Switzerland and the Netherlands and pending combinations in Italy, Spain and elsewhere. It also claimed that a tie-up with either Lufthansa, British Airways or Air France KLM would "damage Ireland."

 

EI responded with another rejection. Chairman Colm Barrington said in a statement that the Ryanair document released yesterday "contains nothing new" and was "the usual stream of invective, spin and misrepresentation that we expect from the people at Ryanair." He said it also "fails to address the recent EU prohibition decision which found emphatically that Ryanair wants to destroy consumer choice."

 

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Ryanair Goes To Aer Lingus Shareholders To Accept Bid

 

December 15, 2008

Irish airline Ryanair launched its hostile attempt to take over Aer Lingus on Monday by writing to its rival's shareholders, imploring them to accept a 7EUR50 million euro (USD$1.01 billion) bid.

 

The low-cost carrier, which already owns almost 30 percent of Aer Lingus, said in its newly published offer document that other investors should vote for the creation of a united Irish airline by January 5.

 

It offered 1.40 euros a share for the former state airline this month, just half the price of a previous offer in 2006 which was blocked by the EU on competition grounds.

 

The board of Aer Lingus, which has vowed to fight vigorously to defeat the new approach, including by seeking a "white knight" investor, on Monday repeated its opposition.

 

"This document contains nothing new," Chairman Colm Barrington said. "It is the usual stream of invective, spin and misrepresentation that we expect from the people at Ryanair," he said in a statement.

 

But Ryanair chief executive Michael O'Leary told reporters that in the absence of any other bidder entering the fray, the group's bid had a "strong prospect of success".

 

He added that as an Aer Lingus shareholder he would welcome a rival approach, and accused the target company's management of being "hell bent" on selling out to anyone but Ryanair.

 

Ryanair reiterated its own guidance to break even for the current financial year, amid falling fare prices.

 

Irish regulators last week blocked sweeteners included in Ryanair's initial proposals saying they could breach takeover rules by favouring one shareholder, namely the government.

 

But in the offer document Ryanair moved to appease the regulators, saying it would call an extraordinary general meeting to make Aer Lingus's valuable Heathrow slots impossible to sell without a vote from both Irish houses of parliament.

 

O'Leary said he thought this was likely to satisfy the Takeover Panel.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Wins Belgian State Aid Appeal

 

December 17, 2008

Europe's second-highest court on Wednesday upheld a challenge by Irish low-cost airline Ryanair against a European Commission move to block aid received from Belgium's Wallonia region and Charleroi Airport.

 

Ryanair hailed the decision as a victory for efforts by small, regional airports to compete with bigger hubs.

 

"Today's decision now clarifies that the low cost airports model works and does not involve state aid," it said in a statement, urging the Commission to dismiss other complaints against other small airports from Bratislava to Tampere.

 

The Commission labelled as illegal state aid an agreement under which Wallonia granted Ryanair a reduction of some 50 percent on landing charges and undertook to compensate Ryanair for losses from any subsequent change in airport charges.

 

Ryanair also agreed to base between two and four aircraft at Charleroi Airport and operate at least three rotations a day per aircraft in return for the airport agreeing to contribute to set-up and other costs.

 

The Court of First Instance concluded the Commission was wrong to examine the two agreements separately, arguing that the fixing of the amount of landing charges is connected with the management of airport infrastructure -- a simple "economic activity".

 

"The airport charges fixed by the Walloon Region must be regarded as consideration for services rendered at Charleroi Airport," it concluded.

 

(Reuters)