Airbus parent EADS faces a "substantial" earnings hit this summer as it tries to salvage its delayed A400M military aircraft project, compounding concerns over the outlook for its civil plane business.
The prospect of a clear-cut charge to fix the delayed A400M -- which analysts said could be as high as EUR3 billion euros (USD$4.09 billion) -- rattled EADS shares, as the aerospace group also posted a worse-than-expected 70 percent drop in first-quarter operating profit.
But the company said it could give little indication how big the cost of the A400M troop transporter would ultimately be, nor how battered airline markets would evolve in coming months.
Dampened by Airbus, EADS group first-quarter earnings before interest and tax, or operating profit fell to EUR232 million from EUR769 million in the first quarter of last year.
Revenues fell 14 percent to EUR8.467 billion, and the Franco-German group's net profit fell 40 percent to EUR170 million.
EADS said underlying first-quarter operating profit before these items stood at EUR0.4 billion, down almost 50 percent.
Boeing said last month first-quarter profit halved to USD$610 million due to order deferrals by airlines, and cut its 2009 outlook.
The future of the A400M depends on talks with seven European NATO governments which have agreed a moratorium until July.
EADS said the talks on a revised industrial plan could lead to a "substantial" charge once the future of the project is clear and that this could happen with second-quarter earnings.
Finance Director Hans Peter Ring said the coming weeks would be decisive. "A400M is our top priority," he said.
EADS took an interim charge in the first quarter of EUR120 million for A400M costs that can be anticipated now, adding to EUR2.5 billion of provisions written off as the project ran into development problems in the past two years.
The aircraft is now three to four years late, provoking recent warnings from Britain and Germany that they might cut orders.
The A400M is Europe's biggest military project and seen as crucial to EADS's efforts to diversify further away from passenger jets as it approaches its 10th anniversary next year.
Wednesday, May 13, 2009
Wi-Fi on AirTran Airways Planes
AirTran Airways has tapped AirCell to offer passengers wireless, broadband Internet access on every flight starting mid-summer.
AirTran will have full inflight Internet service across its entire fleet of Boeing 737 and 717 aircraft. All 136 AirTran Airways jets will be fully outfitted with Gogo Inflight Internet service, which will be available to passengers for a fee based on the length of the flight, the Orlando, Fla.-based airline said.
"Installing Wi-Fi on every one of our aircraft is another great example of what sets AirTran Airways apart from our competitors," said Bob Fornaro, chairman, president and CEO of AirTran Airways, in a news release. "Giving business and leisure travelers a consistent, high-quality experience at a low price is a top priority. We feel that Wi-Fi on every flight gives us a distinct competitive advantage over other airlines."
AirTran will have full inflight Internet service across its entire fleet of Boeing 737 and 717 aircraft. All 136 AirTran Airways jets will be fully outfitted with Gogo Inflight Internet service, which will be available to passengers for a fee based on the length of the flight, the Orlando, Fla.-based airline said.
"Installing Wi-Fi on every one of our aircraft is another great example of what sets AirTran Airways apart from our competitors," said Bob Fornaro, chairman, president and CEO of AirTran Airways, in a news release. "Giving business and leisure travelers a consistent, high-quality experience at a low price is a top priority. We feel that Wi-Fi on every flight gives us a distinct competitive advantage over other airlines."
US Airways Nonstop service to Birmingham
Now on the US Airways customers will have a new United Kingdom option with nonstop service to Birmingham from the airline’s international gateway at Philadelphia International Airport. Birmingham is the first of three new US Airways offerings in 2009, preceding Oslo, Norway and Tel Aviv service to begin later this summer.
Senior Vice President, East Coast, International and Cargo Operations Suzanne Boda said, “We’re thrilled to expand our presence in the United Kingdom with new Birmingham flying. Our customers will have spectacular trans-Atlantic access via our international gateway at Philadelphia from London’s Heathrow and Gatwick Airports, Manchester and Glasgow, in addition to Birmingham. We appreciate the support and hard work of Birmingham officials as well as the continued partnership of the Philadelphia Division of Aviation.”
US Airways was America’s number one on-time airline in 2008 among the “Big Six” hub-and-spoke airlines according to the U.S. Department of Transportation’s (DOT) monthly Air Travel Consumer Report. US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,100 flights per day and serves more than 200 communities in the U.S., Canada, Europe, the Caribbean and Latin America. The airline employs more than 33,000 aviation professionals worldwide and is a member of the Star Alliance network, which offers our customers more than 16,500 daily flights to 912 destinations in 159 countries worldwide. And for the eleventh consecutive year, the airline received a Diamond Award for maintenance training excellence from the Federal Aviation Administration (FAA) for its Charlotte, North Carolina hub line maintenance facility.
Senior Vice President, East Coast, International and Cargo Operations Suzanne Boda said, “We’re thrilled to expand our presence in the United Kingdom with new Birmingham flying. Our customers will have spectacular trans-Atlantic access via our international gateway at Philadelphia from London’s Heathrow and Gatwick Airports, Manchester and Glasgow, in addition to Birmingham. We appreciate the support and hard work of Birmingham officials as well as the continued partnership of the Philadelphia Division of Aviation.”
US Airways was America’s number one on-time airline in 2008 among the “Big Six” hub-and-spoke airlines according to the U.S. Department of Transportation’s (DOT) monthly Air Travel Consumer Report. US Airways, along with US Airways Shuttle and US Airways Express, operates more than 3,100 flights per day and serves more than 200 communities in the U.S., Canada, Europe, the Caribbean and Latin America. The airline employs more than 33,000 aviation professionals worldwide and is a member of the Star Alliance network, which offers our customers more than 16,500 daily flights to 912 destinations in 159 countries worldwide. And for the eleventh consecutive year, the airline received a Diamond Award for maintenance training excellence from the Federal Aviation Administration (FAA) for its Charlotte, North Carolina hub line maintenance facility.
Sunday, May 3, 2009
Virus - Airliners Cutting Services to Mexico
Continental Airlines Inc., the biggest U.S. carrier to Mexico, said it will cut by half the number of seats it sells to fly to Mexico beginning Monday. The Houston-based airline said it will work with travelers to get them where they need to go, although schedules and routes might change.
US Airways Group Inc., another major U.S. carrier to Mexico, said it would reduce its May and June departures to Mexico by 38 percent, beginning May 10.
Delta Air Lines Inc. also said it would reduce its Mexico service to match declining demand, but it didn't indicate how deep the cuts would be.
UAL Corp.'s United Airlines said it will cut its weekly flights to Mexico from 61 to 24 this month, beginning on Tuesday. Its June schedule will drop from 90 flights per week to 52. United said Mexico represents less than 2 percent of its overall capacity.
Southwest Airlines Co. doesn't fly to Mexico, but its chief executive said bookings within the U.S. may have softened in the past week in response to concern about flying.
"It's having an effect on air travel," Southwest CEO Gary Kelly told The Associated Press. "The bookings this week have been erratic at best ... it does seem like we're off-trend, and I just wouldn't be surprised at all if we find that our traffic is impacted over the next couple of weeks because of this concern."
Kelly didn't provide any numbers, but he said that as schools close -- Fort Worth became the first large U.S. district to shut all its campuses -- and large public events around the country are canceled to avoid spreading the virus, air traffic could fall.
Continental said it will reduce May flights to Mexico by about 40 percent and use smaller planes but will continue flying to all 29 Mexican cities it serves. It also extended its waiver policy to let customers with trips booked for Mexico change itineraries without penalty by the end of May.
Continental was running an average of 450 flights a week to Mexico, and the changes will cut its expected May capacity about 2 percent.
"We were already experiencing soft market conditions due to the economy, and now our Mexico routes in particular have extra weakness," said Larry Kellner, Continental's chairman and CEO.
US Airways said it would reduce its schedule by cutting the number of flights and by flying smaller planes, but that it wouldn't pull out of any Mexican cities altogether.
It also said it would reevaluate its July and August schedule in the next few weeks. It said it hopes to resume its normal schedule of flights to Mexico on July 2.
US Airways said the planned reductions amount to 0.5 percent of its systemwide departures.
Jim Corridore, an analyst for Standard & Poor's, said the reductions are an insignificant part of Continental's total capacity and revenue, and it's an even smaller problem for other airlines.
"If the main concern stays focused on Mexico, swine flu shouldn't have a big impact on the U.S. airline industry," he said. "I would expect that this would be a short-term issue."
Delta officials said they were reducing flight frequencies and switching to smaller jets on some flights to pare capacity to Mexico while still serving 11 Mexican cities. Atlanta-based Delta, which also operates Northwest Airlines, runs 350 flights a week to Mexico.
AirTran Airways, which operates only 16 weekly flights to the resort town of Cancun, will cut two of those flights. Spokesman Christopher White said the decision was based on demand over the past several weeks, not just since the flu epidemic hit.
JetBlue Airways Corp. canceled about a dozen flights over the next month to Cancun because they weren't full enough, said spokesman Bryan Baldwin.
American Airlines was monitoring travel demand to Mexico but hadn't canceled any flights by late afternoon, said spokesman Tim Smith. AMR Corp.'s American is the second-biggest U.S. carrier to Mexico.
Health authorities have confirmed 15 swine-flu deaths in Mexico and one in the U.S., a toddler from Mexico who died this week in Houston. There are more than 500 confirmed cases worldwide, including more than 300 in Mexico and more than 100 in the U.S.
A United Airlines ramp worker in Denver was among those confirmed with swine flu, said airline spokesman Rahsaan Johnson. The man last worked on April 23, and reported getting sick after that, Johnson said. There's been no indication that any of the man's co-workers have fallen ill, he said.
"We're all very happy that he is well. He is out of the hospital and recovering. We are looking forward to welcoming him back to work," Johnson said.
The U.S. Centers for Disease Control and Prevention advised against nonessential travel to Mexico, and European Union officials advised their citizens to postpone nonessential travel to parts of Mexico and the U.S. affected by swine flu.
A check by The Associated Press on Wednesday showed that some flights from the United States to Mexico had an unusually high number of empty seats. Flights heading north appeared to be fuller.
After a flap this week over comments by Vice President Joe Biden, who said he told family members to avoid airplanes, Transportation Secretary Ray LaHood declared that air travel was safe and there was no reason to cancel flights.
Kelly, the CEO of Dallas-based Southwest, said air travel is safe but that his airline had instructed employees to be vigilant about washing hands, sanitizing aircraft and looking out for fellow workers or passengers who appeared ill.
Anyone who looks ill will be given a paper mask to wear during the flight, he said.
Alaska Airlines said it was removing pillows and blankets from all of its 114 planes, and would disinfect and sanitize all of its planes during overnight maintenance. It said crews were also doing an extra interior cleaning of planes arriving from Mexico in between flights.
Sabre, a major airline reservation and ticket-distribution company, said other than a decline in trips to Mexico, travel within the United States and to other parts of the world appeared to be holding steady
US Airways Group Inc., another major U.S. carrier to Mexico, said it would reduce its May and June departures to Mexico by 38 percent, beginning May 10.
Delta Air Lines Inc. also said it would reduce its Mexico service to match declining demand, but it didn't indicate how deep the cuts would be.
UAL Corp.'s United Airlines said it will cut its weekly flights to Mexico from 61 to 24 this month, beginning on Tuesday. Its June schedule will drop from 90 flights per week to 52. United said Mexico represents less than 2 percent of its overall capacity.
Southwest Airlines Co. doesn't fly to Mexico, but its chief executive said bookings within the U.S. may have softened in the past week in response to concern about flying.
"It's having an effect on air travel," Southwest CEO Gary Kelly told The Associated Press. "The bookings this week have been erratic at best ... it does seem like we're off-trend, and I just wouldn't be surprised at all if we find that our traffic is impacted over the next couple of weeks because of this concern."
Kelly didn't provide any numbers, but he said that as schools close -- Fort Worth became the first large U.S. district to shut all its campuses -- and large public events around the country are canceled to avoid spreading the virus, air traffic could fall.
Continental said it will reduce May flights to Mexico by about 40 percent and use smaller planes but will continue flying to all 29 Mexican cities it serves. It also extended its waiver policy to let customers with trips booked for Mexico change itineraries without penalty by the end of May.
Continental was running an average of 450 flights a week to Mexico, and the changes will cut its expected May capacity about 2 percent.
"We were already experiencing soft market conditions due to the economy, and now our Mexico routes in particular have extra weakness," said Larry Kellner, Continental's chairman and CEO.
US Airways said it would reduce its schedule by cutting the number of flights and by flying smaller planes, but that it wouldn't pull out of any Mexican cities altogether.
It also said it would reevaluate its July and August schedule in the next few weeks. It said it hopes to resume its normal schedule of flights to Mexico on July 2.
US Airways said the planned reductions amount to 0.5 percent of its systemwide departures.
Jim Corridore, an analyst for Standard & Poor's, said the reductions are an insignificant part of Continental's total capacity and revenue, and it's an even smaller problem for other airlines.
"If the main concern stays focused on Mexico, swine flu shouldn't have a big impact on the U.S. airline industry," he said. "I would expect that this would be a short-term issue."
Delta officials said they were reducing flight frequencies and switching to smaller jets on some flights to pare capacity to Mexico while still serving 11 Mexican cities. Atlanta-based Delta, which also operates Northwest Airlines, runs 350 flights a week to Mexico.
AirTran Airways, which operates only 16 weekly flights to the resort town of Cancun, will cut two of those flights. Spokesman Christopher White said the decision was based on demand over the past several weeks, not just since the flu epidemic hit.
JetBlue Airways Corp. canceled about a dozen flights over the next month to Cancun because they weren't full enough, said spokesman Bryan Baldwin.
American Airlines was monitoring travel demand to Mexico but hadn't canceled any flights by late afternoon, said spokesman Tim Smith. AMR Corp.'s American is the second-biggest U.S. carrier to Mexico.
Health authorities have confirmed 15 swine-flu deaths in Mexico and one in the U.S., a toddler from Mexico who died this week in Houston. There are more than 500 confirmed cases worldwide, including more than 300 in Mexico and more than 100 in the U.S.
A United Airlines ramp worker in Denver was among those confirmed with swine flu, said airline spokesman Rahsaan Johnson. The man last worked on April 23, and reported getting sick after that, Johnson said. There's been no indication that any of the man's co-workers have fallen ill, he said.
"We're all very happy that he is well. He is out of the hospital and recovering. We are looking forward to welcoming him back to work," Johnson said.
The U.S. Centers for Disease Control and Prevention advised against nonessential travel to Mexico, and European Union officials advised their citizens to postpone nonessential travel to parts of Mexico and the U.S. affected by swine flu.
A check by The Associated Press on Wednesday showed that some flights from the United States to Mexico had an unusually high number of empty seats. Flights heading north appeared to be fuller.
After a flap this week over comments by Vice President Joe Biden, who said he told family members to avoid airplanes, Transportation Secretary Ray LaHood declared that air travel was safe and there was no reason to cancel flights.
Kelly, the CEO of Dallas-based Southwest, said air travel is safe but that his airline had instructed employees to be vigilant about washing hands, sanitizing aircraft and looking out for fellow workers or passengers who appeared ill.
Anyone who looks ill will be given a paper mask to wear during the flight, he said.
Alaska Airlines said it was removing pillows and blankets from all of its 114 planes, and would disinfect and sanitize all of its planes during overnight maintenance. It said crews were also doing an extra interior cleaning of planes arriving from Mexico in between flights.
Sabre, a major airline reservation and ticket-distribution company, said other than a decline in trips to Mexico, travel within the United States and to other parts of the world appeared to be holding steady
Friday, May 1, 2009
Continental Airlines Seasonal Service
Continental Airlines is launching seasonal daily non-stop service between its Cleveland hub and London's Heathrow Airport, effective May 2, 2009 (eastbound). The new route replaces the previous seasonal service between Cleveland and London/Gatwick Airport.
"The new flights give Cleveland travelers convenient access to Europe's most popular gateway airport for U.S. travelers," said Jim Compton, Continental's executive vice president marketing. "In addition to serving London, Heathrow will provide both business and leisure travelers numerous connections to cities in Europe, the Middle East and Africa."
The new Heathrow service will operate from May 2 through Sept. 26 (eastbound). Flights will depart Cleveland daily at 8:25 p.m. and arrive in London at 9:15 a.m. the next morning. The return flights will depart London daily at 11:40 a.m. and arrive in Cleveland at 3:30 p.m. the same day.
The service will be operated by Boeing 757 aircraft, seating 16 passengers in the award-winning BusinessFirst cabin and 159 passengers in economy.
Continental will continue to operate two daily flights to Heathrow from its Houston hub at Bush Intercontinental Airport in addition to three daily flights to Heathrow from its New York hub at Newark Liberty International Airport.
In addition to its Heathrow flights, Continental also operates easy connecting service from Cleveland through Newark Liberty to Belfast, Birmingham, Bristol, Edinburgh, Glasgow and Manchester, as well as Dublin and Shannon - offering trans-Atlantic service to more cities in the U.K. and Ireland than any other airline.
Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,750 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 132 international destinations. More than 750 additional points are served via current alliance partners. With more than 43,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 67 million passengers per year.
Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2009 list of World's Most Admired Companies. For more company information, go to continental.com.
"The new flights give Cleveland travelers convenient access to Europe's most popular gateway airport for U.S. travelers," said Jim Compton, Continental's executive vice president marketing. "In addition to serving London, Heathrow will provide both business and leisure travelers numerous connections to cities in Europe, the Middle East and Africa."
The new Heathrow service will operate from May 2 through Sept. 26 (eastbound). Flights will depart Cleveland daily at 8:25 p.m. and arrive in London at 9:15 a.m. the next morning. The return flights will depart London daily at 11:40 a.m. and arrive in Cleveland at 3:30 p.m. the same day.
The service will be operated by Boeing 757 aircraft, seating 16 passengers in the award-winning BusinessFirst cabin and 159 passengers in economy.
Continental will continue to operate two daily flights to Heathrow from its Houston hub at Bush Intercontinental Airport in addition to three daily flights to Heathrow from its New York hub at Newark Liberty International Airport.
In addition to its Heathrow flights, Continental also operates easy connecting service from Cleveland through Newark Liberty to Belfast, Birmingham, Bristol, Edinburgh, Glasgow and Manchester, as well as Dublin and Shannon - offering trans-Atlantic service to more cities in the U.K. and Ireland than any other airline.
Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,750 daily departures throughout the Americas, Europe and Asia, serving 133 domestic and 132 international destinations. More than 750 additional points are served via current alliance partners. With more than 43,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 67 million passengers per year.
Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2009 list of World's Most Admired Companies. For more company information, go to continental.com.
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