LCC news

[Pieter C. 5]

Ryanair April Traffic Up 15 Percent

 

May 6, 2008

Ryanair said on Tuesday it carried 4.72 million passengers in April or 15 percent more than a year earlier, thanks to its growing route network, but the average flight was not as full.

 

Europe's biggest low-cost airline said its load factor was 79 percent in the month, down from 83 percent a year earlier.

 

The carrier said the load factor in April 2007 was boosted by Easter, which fell in March this year.

 

(Reuters)

 

EasyJet Hit By Fuel Costs, Summer Bookings Up

 

May 7, 2008

British budget airline easyJet said rising fuel costs sent first-half losses up threefold to GBP57.5 million pounds (USD$112.9 million), but that summer bookings were ahead of last year.

 

The company, Europe's fourth biggest airline, reiterated an earlier warning that record fuel costs would erode full-year profit if they continued to rise, but that demand from its passengers remained strong.

 

"We are seeing no sign in reduction in discretionary air travel... Maybe people are choosing airlines more selectively, but we are seeing no fall off in weekend breaks, no change in bookings," Chief Executive Andy Harrison told reporters on Wednesday.

 

He said the Luton-based airline was run more efficiently than many of its rivals, which he predicted would fail to survive in the current high cost environment and should not hope to be rescued by easyJet.

 

"It's hard to understand why we would want to buy weak airlines with old aircraft. We'd be happy to wave goodbye," Harrison said.

 

However, Collins Stewart analyst Andrew Fitchie said the airline was not immune to an economic downturn.

 

"Consensus is only currently modeling the impact of increased fuel costs; a material economic slowdown is not being discounted and we believe this represents a further risk to the airlines and low cost carriers in particular," he said.

 

EasyJet reported a 15 percent growth in first half passenger numbers to 18.9 million, of which just 2.5 percent was attributed to last year's acquisition of GB Airways. The load factor held steady at 81 percent.

 

Harrison said high fuel prices -- driven by the rising price of oil -- remained the firm's biggest challenge.

 

"The price of jet fuel has risen 35 percent over the last three months and is now 80 percent higher than last year," he said.

 

If fuel averaged around USD$1000 a tonne it would increase the company's bill by GBP45 million pounds in the second half, he said. It is currently around USD$1100-USD$1150 a tonne.

 

The company, Europe's second biggest budget carrier in terms of passengers behind Ireland's Ryanair, said first half revenues rose 24 percent to nearly GBP900 million pounds.

 

It added that it had successfully integrated GB Airways, the domestic rival it bought in October.

 

(Reuters)

 

 

[Pieter C. 5]

Air Berlin To Scrap Routes As Fuel Costs Hurt

 

May 29, 2008

German carrier Air Berlin has abandoned its full-year profit goal and says it will scrap unprofitable routes from its network as it tries to weather rising fuel costs.

 

The airline still expects to achieve an operating profit for the full year based on current jet fuel prices but it has dropped its forecast for 2008 earnings before interest and tax (EBIT) of EUR73 million to EUR120 million euros (USD$114 million - USD$187 million).

 

"As a result of the current difficult market environment, in particular the high fuel prices, it is anticipated that operating income will be adversely affected during the further course of the year, making it difficult to obtain the envisaged EBIT corridor," Air Berlin said in a statement on Thursday.

 

The airline said it now expected fuel costs this year to be some EUR80 million more than it had forecast in March.

 

Chief Executive Joachim Hunold declined to give a new target EBIT range and told a news conference that any new range could not be taken seriously, given market conditions.

 

The head of EADS, the parent of European plane maker Airbus, told the ILA Berlin Air Show this week he was worried about the impact of the high oil price on airline finances. Oil prices have roughly doubled in the last year.

 

Airbus was bracing for more delays and even cancellations to plane orders after US carrier JetBlue Airways blamed the cost of fuel for deciding to defer delivery of 21 Airbus A320s for up to five years.

 

Air Berlin's Hunold said the airline was reviewing all of its long-haul routes and would also seek to pass fuel costs on to passengers through higher ticket prices. But it was too early to talk about delaying orders for new planes, he said.

 

The carrier has hedged 88 percent of its fuel needs for this year and 24-35 percent for the first three quarters of next year, Hunold said, as it tries to control the impact.

 

Europe's biggest low-cost airline, Ryanair, said earlier this month that rising oil prices were hurting profits and admitted "calling the oil market wrong". It was just 2.5 percent hedged for the next 12 months.

 

(Reuters)

 

[Pieter C. 5]

Ryanair May Traffic Up 22 Percent, Loads Flat

 

June 2, 2008

Ryanair said on Monday it carried 5.06 million passengers in May, 22 percent more than a year earlier thanks to its growing route network, but the average number carried per flight was flat.

 

Europe's biggest low-cost airline said its load factor was 80 percent in the month, unchanged from the same period a year earlier.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Net Profit Jumps 20 Percent

 

June 3, 2008

Ryanair posted a 20 percent rise in adjusted full-year net profit on Tuesday but warned if oil prices stay at around USD$130 a barrel it would expect to only break even in the year ahead.

 

Net profit excluding one-off items rose to EUR480.9 million euros (USD$748 million) in the 12 months to the end of March versus EUR401.4 million a year earlier.

 

Europe's biggest low-cost carrier said, however, its unadjusted net profit fell to EUR390.7 million from EUR435.6 million a year earlier once it had included exceptional items, including a EUR91.6 million write down in the value of its stake in Irish rival Aer Lingus.

 

Ryanair said it was better placed than all other European airlines to absorb higher oil costs, even if it means profits fall in the short term.

 

"Based on forward bookings, we now believe it likely that average fares for the coming year will rise by approximately 5 percent and if oil prices remain at USD$130 per barrel, then we expect to accordingly breakeven for fiscal '09," Chief Executive Michael O'Leary said in a statement.

 

The airline had previously said it expected a 6 percent rise in net profit this year at best, although its worst-case scenario had been for a 50 percent drop.

 

Ryanair, which said last month its fuel needs were mostly unhedged for the current year, predicted oil would become cheaper over the medium term, helping its earnings rebound strongly, but it was not sure when this would happen.

 

"Higher oil prices will increase the attraction of Ryanair's guaranteed lowest fares, as consumers become more price sensitive, as competitors increase fares and fuel surcharges, and as many European airlines consolidate or go bust, a development which we believe is inevitable if oil prices remain above USD$100 this winter," O'Leary said.

 

(Reuters)

 

 

Skymark Budget Airline Short Of Pilots

 

June 3, 2008

Japan's Skymark Airlines, a discount domestic carrier, will cancel 168 flights in June due to a shortage of pilots, sending its shares to their lowest level this year.

 

The shortage comes after two pilots retired at the end of May, and the cancellations account for about 10 percent of all its scheduled flights this month, affecting four routes and about 9,000 passengers, Skymark said.

 

Fitch Ratings analyst Satoru Aoyama said he had almost seen it coming as budget airlines have fewer resources to cope with such pilot shortages, compared with bigger rivals such as Japan Airlines and All Nippon Airways.

 

"Airlines are suffering from a shortage of pilots globally, particularly in the Asia and Pacific region on surging demand there," he said. "As a result, newcomer airlines now can't really get pilots either in Japan or from overseas."

 

"Skymark also doesn't have enough resources to deal with the shortage problem, such as training its own pilots, because it hasn't been able to realize scale of economy in a market dominated by JAL and ANA," he said.

 

Budget travel has been booming in Asia, following a similar trend in the United States and Europe, with the launch of low-cost carriers ranging from Malaysia's AirAsia and Australia's Virgin Blue to Singapore's Tiger Airways.

 

Skymark was established in 1996 and took off two years later to break into a Japanese air travel market already dominated by JAL and ANA.

 

Skymark spokesman Shuichi Aoyama said that with the absence of two pilots, the airline could expect some unexpected flight cancellations, and decided it would be better to cancel them ahead of time to limit further problems for its customers.

 

"The battle to secure pilots is accelerating in Asia as the number of discount airlines increases due to emerging economies such as China and Southeast Asian countries," he said.

 

The spokesman said it was still unclear whether its flight schedule would return to normal in July.

 

Skymark also said it was in the process of switching all of its fleet from Boeing 767 aircraft to smaller and more fuel-efficient Boeing 737 aircraft by 2010, but the two pilots who retired had licenses for the 737.

 

Fitch's Aoyama said the shift to smaller aircraft was crucial to achieve more efficient operations, but it also indicated limited growth potential.

 

"It's correct to use smaller planes to boost efficiency, but at the same time, it means the airline sees limited demand and growth prospects for its business," he said.

 

Shares of Skymark closed down 9.4 percent at 193 yen, compared with a 1.6 percent fall in the benchmark Nikkei average .N225.

 

Among Skymark's regional peers, Hong Kong-based budget carrier Oasis Hong Kong Airlines said in April it had halted flights and would go into liquidation after just 17 months in the air as record high fuel prices and stiff competition triggered heavy losses.

 

(Reuters)

 

Are these two pilots really the reason, or is there something fishy going on here ?

 

[Pieter C. 5]

Skymark Cuts Earnings Forecast On Pilot Shortage

 

June 9, 2008

Japanese discount airline Skymark Airlines cut its annual operating profit forecast by 89 percent on Monday after a shortage of pilots forced it to cancel hundreds of flights.

 

Japan's biggest discount airline had said last week it would cancel 10 percent of its flights in June after two pilots left, sending its stock down sharply amid investor speculation its profits would be hit.

 

The company, which is struggling to boost its presence in a market dominated by Japan Airlines and All Nippon Airways, said it now expects operating profit for the year ending next March 31 to come to JPY100 million yen (USD$950,100).

 

That is down sharply from the JPY900 million it predicted less than a month ago. It also cut its annual revenue forecast by 2.4 percent to JPY48.3 billion.

 

Budget travel has been booming in Asia, following a similar trend in the United States and Europe, but carriers have been struggling to secure enough pilots to meet demand.

 

In addition to the flights cancelled in June, Skymark said it is reviewing its schedule from July.

 

The cancelled flights include some to Japan's northernmost main island of Hokkaido, which hosts the G8 summit next month.

 

Prior to the announcement, Skymark ended down 3 percent at 193 yen, underperforming a 1.5 percent fall in the Tokyo stock exchange's Mothers startup market, where its shares are listed.

 

On June 3, the day after news of the pilot shortage emerged, Skymark's shares tumbled 9.4 percent.

 

(Reuters)

 

[Pieter C. 5]

Air Berlin CEO Mulls Further Fleet Cuts

 

July 26, 2008

German carrier Air Berlin may ground more of its fleet than previously announced and is looking to raise prices especially for business customers, its chief executive told a German weekly.

 

Plans to remove 14 planes or 10 percent of its fleet from service from the start of the winter season may just be a beginning, Joachim Hunold told WirtschaftsWoche in an interview published on Saturday.

 

"We are looking at our portfolio of routes on a daily basis," he said.

 

Air Berlin, Germany's second biggest carrier, plans to save more than EUR150 million euros (USD$235.5 million) by cutting unprofitable routes and improving its marketing and fleet management.

 

Hunold said the company had already managed to lower costs this year by almost EUR35 million.

 

Hunold also said Air Berlin had pushed through a price increase of 11 percent with travel firms from the start of the winter season.

 

"On top of that, business travellers will have to prepare themselves for price increases," he said, adding plans to introduce a "Premium Business Class" in spring 2009 had been scrapped.

 

"We stopped that. We soberly analyzed the situation and came to the conclusion that we would prefer to save the amount of a double-digit million sum. That's how much the investment would have cost us," Hunold said.

 

The CEO said he was confident that the measures implemented would have a positive impact.

 

"We continue to see a positive operating profit by the end of year with the efficiency program in place and demand at the level it is now."

 

Air Berlin cut targets it has set itself for 2008 earnings before interest and tax two times this year.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Q1 Profit Plunges, Oil To Erase Full-Year

 

July 28, 2008

Ryanair posted an 85 percent fall in first-quarter net profit on Monday as its fuel bill almost doubled and warned it could make a full-year loss of up to EUR60 million euros if oil prices stayed high and fares fell.

 

Europe's largest low-cost carrier said adjusted profit after tax for the three months to the end of June had come in at EUR21 million (USD$33 million).

 

Ryanair said it had made use of a recent fall in oil prices and hedged 90 percent of its fuel needs for September at USD$129 per barrel, 80 percent for the third quarter at USD$124 per barrel, but remained unhedged for the fourth quarter.

 

"On the basis of our existing fuel hedges, Q4 oil prices at approximately USD$130 per barrel, and average fares falling by 5 percent for the full year, we expect to record a full year result of between break even and a loss of EUR60 million," Chief Executive Michael O'Leary said in a statement.

 

Ryanair said first-quarter revenues grew by 12 percent to EUR777 million.

 

The Dublin-based carrier said consumer confidence was plummeting in an emerging recession in the UK and Ireland, which it planned to respond to by cutting fares more aggressively than competitors.

 

"The outlook for the remainder of the fiscal year which is entirely dependent on fares and fuel prices remains poor," O'Leary said.

 

He reiterated however that Ryanair's more than EUR2.2 billion in cash will help it weather the industry downturn and anticipates a strong rebound in earnings as rivals with higher costs or less assets suffer.

 

(Reuters)

 

[Pieter C. 5]

AirTran Posts Quarterly Loss On High Fuel Price

 

July 29, 2008

AirTran Holdings, parent of low-cost airline AirTran Airways, on Tuesday posted a quarterly net loss as the price of jet fuel pummeled the carrier and its rivals.

 

The loss was consistent with those of other major airlines that are downsizing to survive the record high fuel prices.

 

AirTran shares gained 20.37 percent to USD$3.25 on the New York Stock Exchange as the price of crude oil shed USD$3.12 per barrel. The Amex airline index was up 11.36 percent, extending recent gains.

 

It was "pretty much in line with what we've seen with other airlines," Calyon Securities analyst Ray Neidl said of AirTran's loss.

 

AirTran's second-quarter loss amounted to USD$13.5 million, compared with a year-ago profit of USD$42.1 million.

 

The loss includes a USD$8.4 million impairment charge related to goodwill. Other airlines have taken a similar charge in the quarter.

 

The Orlando-based airline said revenue grew 13 percent to USD$693.4 million. Its fuel bill rose 82.6 percent from a year earlier to USD$368 million. The company ended the quarter with USD$445.9 million in unrestricted cash and investments.

 

Soaring fuel prices have caused major airlines to post losses in the quarter and have triggered a wave of downsizing to offset that expense. AirTran said this month it would cut 480 jobs to reach a cost-savings target of USD$16 million year.

 

AirTran is planning to cut capacity by 7 to 8 percent in the last four months of 2008. The carrier also has said it would defer the delivery of 18 Boeing 737-700 aircraft originally scheduled for delivery between 2009 and 2011, to between 2013 and 2014.

 

AirTran reached a second deal with Boeing to defer four additional deliveries of 737-700 aircraft from 2009 to 2015.

 

Experts have long predicted that rising fares and economic weakness could take a toll on discretionary travel bookings.

 

Weakness in the US economy has, in fact, triggered a change in booking patterns at AirTran, Chief Financial Officer Arne Haak said.

 

"A greater percentage of our customers are booking further in advance than anticipated. Demand for close-end leisure appears to be declining," Haak said. "We're also seeing a greater number of customers are waiting for sale fares than observed in the past."

 

(Reuters)

 

[BC Tam 2]

Read somewhere that Tiger is abandoning Darwin due to the airport's high costs

Can't seem to find the news anywhere on line though, sorry

[MIR 2]

Read somewhere that Tiger is abandoning Darwin due to the airport's high costs

Can't seem to find the news anywhere on line though, sorry

 

Security screening at Darwin is $17 per passenger compared to Sydney's price of $3.

 

BUDGET airline Tiger Airways has axed its services to Darwin from Melbourne and Singapore, blaming high fuel and operating costs in Darwin for the decision.

Services to Darwin will be suspended from October 26, Tiger chief operating officer Steve Burns said.

 

The costs of flying to Darwin were the highest of all the airports the airline served, he said.

 

"This is an important point to stress: combined airport and fuel costs in Darwin cost more than any of the 27 airports that the airline serves across Australia and Asia. It is just incompatible for a true low-fare airline to operate to such a high-cost destination," he said.

 

The airline might re-establish services to Darwin "if costs become more reasonable", he said.

 

Flights booked prior to October 26 will go ahead.

 

No Australian domestic flights have been booked to Darwin beyond that date.

 

Tiger will offer a full refund to international passengers booked after October 26.

Edited August 4, 2008 by MIR

[BC Tam 2]

That's the article - thanks !

[MIR 2]

"BUDGET airline Jetstar will set up an international hub at Darwin airport.

 

Less than 24 hours after Tiger Airways cancelled all flights to Darwin, Jetstar announced its plan to base seven planes in the Top End.

 

The agreement with the Territory Government will require Jetstar to base three aircraft at Darwin International Airport by June 2009 and a further four by June 2012.

 

The Government will provide $5million to help set up the hub and $3million to promote the new routes and destinations.

 

The agreement was signed off by Cabinet before the election was called, it was revealed last night.

 

Jetstar's Unni Menon said the hub would allow Darwin to become a "pivot point'', a place to organise Jetstar's business, for flights going to near-Asian destinations.

 

Chief Minister Paul Henderson said the $8million contribution had a "clawback clause'' allowing the Government to withdraw the money if the airline does not deliver.

 

The Territory Government has given $2.2million since 2005 for a joint marketing campaign with Tiger Airways.

 

The Government also gave a $4million subsidy to Virgin Blue in 2001 to encourage the airline to fly to the Territory.

 

Both airlines have since pulled out of the Territory.

 

Darwin Airport chief executive Ian Kew said the planned $60million expansion of the airport would need to be "reassessed'' to take into consideration Jetstar's hub."

 

Source: http://www.ntnews.com.au/article/2008/08/02/4930_ntnews.html

[Pieter C. 5]

Read somewhere that Tiger is abandoning Darwin due to the airport's high costs

 

Decided overnight to cancel, or will they cancel in 1-2 months

 

What will happen to the booked passengers ? Rebooked to Jetstar ?

[BC Tam 2]

Decided overnight to cancel, or will they cancel in 1-2 months

 

What will happen to the booked passengers ? Rebooked to Jetstar ?

All revealed in MIR's post #10 above

 

And yes, rebooking on Jetstar looks a decidedly likely option, though the pax may need to do the rebooking themselves !

[Ken Yen Yim 0]

anybody knows why jetstar flights kuala lumpur sydney and vice versa can`t be booked after the 31st august 2008?

[MIR 2]

anybody knows why jetstar flights kuala lumpur sydney and vice versa can`t be booked after the 31st august 2008?

 

Sydney-Kuala Lumpur ends 31 August. If you still want to go to Sydney using Jetstar...take JetStar KUL-SIN, SIN-SYD.

 

To support the schedule changes, Jetstar would need to free up A330 aircraft and, as a result, would:

* withdraw from its Sydney-Kuala Lumpur operation to make available an A330 aircraft (For Japan route).

http://www.qantas.com.au/regions/dyn/au/pu...2008/jun08/3771

[Ken Yen Yim 0]

thank you

[MIR 2]

AirAsia Not Renewing Deal With Manchester United

 

By D. Arul Rajoo

 

BANGKOK, Aug 8 (Bernama) -- Malaysian low-cost carrier AirAsia will not renew a sponsorship deal with European and English Premier champions Manchester United for the new season.

 

Its Chief Executive Officer, Datuk Seri Tony Fernandes confirmed that a new deal was not reached with one of the most prestigious football clubs in the world with about 75 million fans around the globe.

 

"Confirmed. We have achieved what we want," Fernandes said in a SMS reply when asked to confirm speculation that AirAsia has not renewed its sponsorships.

 

Passengers boarding AirAsia's planes could not locate any logos and stickers of MU on some of the flights since early this month, but the club's merchandises are still being sold onboard.

 

AirAsia first signed a one-year sponsorship deal as the official low fare airline for MU for the English League Premier season from August 2005 to May 2006, and had renewed it until the end of 2007/2008 season which was won by the club under legendary manager Alex Ferguson.

 

Fernandes, however, declined to reveal the value of previous sponsorships and also refused to confirm if MU has demanded for more money.

 

"I can't tell you," he replied.

 

When he renewed the deal in 2006, Fernandes had told the media that the cost of the one-year deal was within its annual RM60 million budget allocated for advertisements and promotions.

 

There were reports that the sponsorships was worth about 2.5 million pounds to 3.0 million pounds.

 

When AirAsia first struck the deal with MU in 2005, Fernandes had said the airline was hoping to woo foreign tourists to Asia and at the same time, leverage on the club's huge fan base in Asia.

 

In 2005, the deal was said to be worth RM14 million and AirAsia was entitled to market MU merchandise and paint at least one of its aircraft with images of its logo and players, while AirAsia's logo was displayed on the digital "A" boards at Old Trafford, home of the Red Devils.

 

On Nov 14, 2007, AirAsia and Tourism Malaysia signed a new deal with MU for the 2008 season.

 

Under the terms of the deal, AirAsia will continue to fly its MU branded Airbus aircraft, as well as producing joint merchandise, Asian trophy tours and player appearances at various AirAsia events.

 

-- BERNAMA

 

[Pieter C. 5]

Ryanair Sees 'Small' Loss At Worst This Year

 

August 13, 2008

Ryanair will be one of the few European carriers to at least break even this winter, chief executive Michael O'Leary said on Wednesday.

 

"We will be one of the very few airlines in Europe to grow strongly this winter and at least to break even if not to make a small profit," O'Leary said in an interview with BBC television.

 

Europe's largest low-cost carrier said in late July it expected a full-year result between break even and a loss of EUR60 million euros (USD$89.86 million) on the basis of its existing fuel hedges, fourth-quarter oil prices estimated at around USD$130 per barrel and average fares falling by 5 percent.

 

Asked by the BBC whether he expected to make any losses this year, O'Leary said: "If we do it will be a small amount of money. Essentially this year we will break even during a year when oil has doubled."

 

O'Leary repeated that Ryanair was prepared to take a short-term hit to earnings to snatch business from rivals and cited July traffic figures showing the Dublin-based airline carried 19 percent more people than a year earlier.

 

"The underlying business is still growing... at a time when if you take our largest competitor British Airways, their short-haul traffic is in decline," O'Leary said.

 

(Reuters)

 

EasyJet Files Complaint Against Amsterdam Airport

 

August 13, 2008

British budget airline easyJet said on Wednesday it would file a complaint with Dutch competition authority NMa against Dutch airport operator Schiphol Amsterdam for increasing passenger charges.

 

"Schiphol is discriminating by charging passengers that depart from the Netherlands twice as much as transfer passengers," easyJet said in a statement.

 

Schiphol was violating Dutch law as charges were discriminatory, not related to costs, and not transparent, easyJet said.

 

A spokeswoman for Schiphol said the system that differentiates between charges for transfer passengers and other passengers was approved by the NMa, and if airlines had complaints about charges, they should address them to the NMa.

 

Schiphol will increase passenger and security charges by 36 percent in total to EUR30.93 euros by November for non-transfer passengers, while the charges rise 40 percent to EUR15.43 for transfer passengers, the spokeswoman said.

 

"Passenger service charges are going up mostly due to inflation, while costs for security continue to rise," she said.

 

Schiphol would become Europe's most expensive airport with these rises, easyJet said.

 

If the NMa will not investigate easyJet's complaint, the airline will go to the European Commission, easyJet said.

 

(Reuters)

 

 

[Pieter C. 5]

Ryanair Plane Loses Pressure, 16 Taken To Hospital

 

August 26, 2008

Sixteen people were taken to hospital when a Ryanair flight from Britain to Spain made an unscheduled landing at Limoges Airport in France after a loss of cabin pressure, the airline said on Tuesday.

 

Flight FR9336, which left Bristol for Barcelona late on Monday with 168 passengers on board, "experienced an in-flight depressurisation incident which caused the oxygen masks on board to deploy," the airline said.

 

"As a safety precaution, the captain descended and diverted the aircraft to Limoges Airport at approximately 2330 local French time," it added in a statement.

 

The 16 people taken to hospital had been complaining of earache, it said.

 

British explorer Pen Hadow, who was aboard the plane, told Sky Television the incident "was traumatic for many involved."

 

"Suddenly there was a roar of wind, a rush of cold air, the oxygen masks dropped, you didn't know what was going on."

 

Hadow, who in 2003 became the first person to reach the North Pole unaided from Canada, said the oxygen masks did not seem to work.

 

"No oxygen was delivered through the oxygen masks and I was surprised there seemed to be no communication between the pilot and the flight attendants because they didn't seem to know what to say and do," Hadow told the BBC.

 

"There was absolutely no communication from the flight crew and that added to people's extreme fear."

 

Ryanair chief executive Michael O'Leary dismissed Hadow's complaints. "Passengers sometimes misunderstand... they expect a surge of oxygen when in actual fact there is a steady stream of oxygen," he said.

 

"The oxygen masks were working and the correct procedures were followed. As soon as the captain got the plane down to 8,000 ft he did make the appropriate announcement that they were going to divert to Limoges for safety reasons.

 

"This is always a traumatic experience for passengers but... the crew dealt with it appropriately."

 

(Reuters)

 

[Pieter C. 5]

Aer Lingus Losses Revive Ryanair Merger Rhetoric

 

September 1, 2008

Ryanair said on Monday that its earlier plans to create a single Irish airline group looked justified after rival Aer Lingus announced last week it would be loss-making into 2009.

 

Ryanair, whose bid for Aer Lingus was blocked last year by the European Commission on competition grounds, has often complained that in the current wave of European airline mergers it should be allowed to buy the former state carrier.

 

"These half year results from Aer Lingus conclusively supports Ryanair's belief that its 2006 takeover strategy for Aer Lingus was the right one," Ryanair spokesman Stephen McNamara said in a statement on Monday.

 

Ryanair had promised to reduce Aer Lingus's fares, scrap its fuel surcharges and reduce its costs, he added.

 

Aer Lingus posted a half-year loss on Thursday hit by record high fuel prices and slower markets, adding that it needed a major cost-cutting drive to remain viable.

 

Chief executive Dermot Mannion denied, however, that it had become more vulnerable to a takeover, arguing that it was still in a better position than most European short-haul carriers.

 

Many analysts agree that it has one of the strongest balance sheets in the industry with more than EUR800 million euros in cash.

 

Ryanair, which holds more than 29 percent of Aer Lingus shares and nearly three times more cash than its rival, said Aer Lingus' "independence strategy" had failed.

 

Ryanair, Europe's biggest low-cost carrier, has said it could also make a small loss this year for the first time since 1989 as it cuts fares to grab business from struggling rivals.

 

"Approximately 25 carriers have failed this year, as fuel costs rose to record highs," said John Goode, analyst at Goodbody Stockbrokers in Dublin.

 

"As we leave the summer period behind, and the seasonally high cash flows for airlines that come with it, this list is likely to be extended."

 

Last week alone, Canadian discount transatlantic carrier Zoom Airlines cancelled all flights and began bankruptcy proceedings on Thursday, while Italian national airline Alitalia sought bankruptcy protection on Friday.

 

(Reuters)

 

[Pieter C. 5]

EU Ends Probe Into Ryanair Ticketing Practices

 

September 2, 2008

The European Commission said on Tuesday it had ended its probe into budget airline Ryanair over whether it was breaking passenger rights in its attempts to deal with ticket-touting web sites.

 

"Yes, that is the end of the matter for now," a Commission spokesman said. "There were no cancellations or refusals, but of course we have reiterated our warning to Ruyanair that this remains the case but, yes, this is over for now."

 

(Reuters)

 

[Pieter C. 5]

Vueling August Passenger Traffic Falls 10.9 Percent

 

September 5, 2008

Passenger traffic at low-cost airline Vueling, operating in the midst of Spain's sharp economic slowdown, fell 10.9 percent year-on-year to 692,780 passengers in August, it said on Friday.

 

Vueling's passenger load factor fell 5.3 percentage points to 85 percent from a year earlier.

 

The Barcelona-based company, grappling with high fuel costs and cut-throat competition from other no-frills carriers, is trimming its fleet by more than a third by the end of this year to control costs.

 

(Reuters)

 

[Pieter C. 5]

Norwegian Air Shuttle Traffic Rose Again In August

 

September 9, 2008

Budget airline Norwegian Air Shuttle said on Tuesday its August passenger volume grew 18.4 percent and its yield, an indicator of average fares, rose on the back of the company's expansion.

 

Total passengers carried rose to 857,136 in August from 723,926 in the same month last year, said Norwegian, a small rival to Scandinavian airline SAS. Passenger volume grew 28 percent in July.

 

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 0.63 Norwegian kroner (USD$0.113) from the same period last year.

 

Total passenger traffic (RPK), which factors in distance flown, increased in the main operations grew by 28 percent, Norwegian Air Shuttle said.

 

Norwegian said the increase in traffic, production and passengers was largely related to its expansion in established markets together with new routes launched from September 2007 to date.

 

International passenger traffic rose by 31 percent, and international capacity grew 40 percent, giving a passenger load factor of 79 percent, a 5 percentage point decrease from the same month last year.

 

The airline also said domestic passenger traffic increased by 20 percent, while domestic capacity rose 32 percent, resulting in a domestic load factor of 77 percent, down 8 percentage points from last August.

 

(Reuters)

 

Competition Watchdog Inspects Norwegian Air Office

 

September 9, 2008

Norway's competition authority said it has inspected the offices of Norwegian Air Shuttle to gather information about its cooperation with fellow budget carrier Sterling Airlines of Denmark.

 

The two low-cost rivals to Scandinavian leader SAS in July signed a deal to cooperate on the Oslo-Copenhagen and Stockholm-Copenhagen routes from September 15, which needs clearance from competition authorities.

 

"The inspection is part of the Authority's gathering of information in an ongoing investigation of Norwegian and Sterling's agreement on cooperation on certain routes," the Norwegian Competition Authority said in a statement.

 

"There is no suspicion of unlawful cooperation," a spokeswoman for Norwegian Air was quoted as saying by the online edition of business daily Dagens Naeringsliv.

 

She said that Norwegian Air was not given prior notice of the inspection.

 

The paper said that Sterling had also been visited by Danish competition authorities on Tuesday.

 

(Reuters)

 

[Pieter C. 5]

Ryanair Delays New Routes, Blames Boeing Strike

 

September 9, 2008

Irish low-cost airline Ryanair has delayed 11 new routes blaming a machinist strike at plane maker Boeing which has caused the indefinite delay of two new aircraft.

 

The company said on Tuesday the launch of new routes between Scottish capital Edinburgh and a range of destinations from Bournemouth in the UK to Lodz in Poland would be delayed by six weeks to November 5.

 

Deputy Chief Executive Michael Cawley said two new 737-800 planes had been ordered to fly these routes, but would not arrive on time due to the Boeing strike.

 

"Passengers who were booked to travel on our new routes during this initial six week period will be refunded over the next seven days," he said in a statement.

 

The strike by 27,000 Boeing machinists threatens to cost Boeing USD$100 million a day and affect suppliers around the globe. Ryanair is among the first to announce disruption, but more may follow depending on the length of the strike, which is into its fourth day.

 

A Ryanair spokesman said the airline was currently reviewing how the strike would affect other deliveries. New routes set to be launched later this year include Liverpool in the UK to Paris, and London Stansted to Agadir, in Morocco.

 

He added the group could launch the Edinburgh routes in November regardless of how the strike develops because the firm was freeing up aircraft by closing routes for the winter.

 

(Reuters)