Airline Finance News - North America.


Nov 1, 2009

At last check, the NYSE Arca Airline Index (XAL 23.80, -0.80, -3.25 percent) gained less than 1 percent to 24.71, but 10 of its 13 components stood in the green. On Thursday, the sector rallied about 3 percent amid positive economic data and an industry's group report on international travel traffic. Shortly after the open, shares of Delta Air Lines (DAL 7.13, -0.23, -3.13 percent) added 1 percent to USD7.42 and American Airlines' parent AMR Corp. (AMR 5.41, -0.23, -4.06 percent) moved up less than 1 percent to USD5.67. Modesly higher, US Airways Group (LCC 3.01, -0.20, -6.23 percent) added two cents to USD3.23. Decliners included U.S.-listed shares of South American carrier Lan (LFL 13.25, -0.09, -0.68 percent) and European budget airline Ryanair (RYAA.Y 27.47, +0.78, +2.92 percent) as well as SkyWest (SKYW 14.04, -0.38, -2.64 percent). On the energy side, crude for December delivery fell 26 cents, or 0.3 percent, to USD79.61 a barrel in electronic trading. Oct 30, 2009

US airlines in September continued to see significant revenue declines as their pricing power remains weak, according to an Air Transport Association of America survey. ATA estimates a 19 percent year-on-year drop in passenger revenues for September, the eleventh consecutive month that passenger revenues declined from the previous year, and the tenth consecutive month of ticket price declines. ATA's latest cargo indicators show a 12 percent decline in cargo revenue tonnekilometres in August, the thirteenth consecutive month of falling volumes. Oct 27, 2009

Air Canada

Air Canada on Tuesday closed its previously announced equity offering, raising net proceeds of CUSD249 million (USD233.3 million) and hinting that the airline, which appeared to be teetering on the edge of bankruptcy last spring, is righting itself financially under new President and CEO Calin Rovinescu. The offering comprised the sale of 160,500 units composed of one Class B voting share or one Class A variable voting share and one-half of one share purchase warrant. Rovinescu said his "No. 1 task" since taking over from Montie Brewer in the spring has been to insure the stabilization of the company. "That was more important than anything else," he said. He appears to have succeeded. In July, AC reached agreement with lenders and stakeholders leading to CUSD1 billion in additional liquidity and successfully lobbied the Ottawa government to have Canada's pension regulations changed, offering a bit of breathing room on its pension liabilities. It also reached new 21-month labor agreements with its five major unions. He added, however, that AC is "not going to sit on our hands" until the market improves but is moving forward with targeted expansion, with new services next year to Brussels, Athens and Barcelona. On Nov. 30 it will launch daily Montreal-Houston Intercontinental service, a route made viable by CO's entry into Star. It will follow this with winter seasonal nonstop flights from Calgary to Maui and Honolulu. Rovinescu also said AC has managed to maintain a 55 percent-57 percent share of the domestic market in the face of Calgary-based WestJet's steady encroachment. The domestic business generates less than 40 percent of AC's passenger revenue, with the remainder split pretty evenly between transborder and intercontinental services, he said. Oct 29, 2009

AirTran Airways

AirTran Airways said mechanics and inspectors represented by the International Brotherhood of Teamsters ratified a new 48-month collective bargaining agreement. Contract covers around 400 employees at seven US airports. Oct 27, 2009

All Nippon Airways, Continental Airlines, United Airlines

Star Alliance carrier All Nippon Airways (ANA), Continental Airlines and United Airlines are studying having revenue sharing services on trans-Pacific routes. The catalyst for the move is the US-Japan air services negotiations that are underway, says an ANA official, who wishes to remain anonymous. These government talks include a proposed 'open skies' agreement for the Japan-USA market, as well as international traffic rights Tokyo's Haneda airport, says the official. ANA, Continental and United are Star Alliance members and would ordinarily look to co-operate by having codeshare and interline agreements. But the ANA official confirms that the talks between the three cover a deeper level of co-operation. Oct 29, 2009

Allegiant Air

Allegiant Air flew 264.7 million scheduled RPMs in September, a 59.6 percent increase year-over-year. Capacity rose 63.2 percent to 294.7 million ASMs and load factor fell 2 points to 89.8 percent. Oct 29, 2009

American Airlines, Japan Airlines

AMR Corp.Os American Airlines has proposed a deepening of its tie-up with Japan Airlines Corp. as it seeks to keep the Asian company in the Oneworld alliance, a person with knowledge of the plan said. Fort Worth, Texas-based American Airlines has urged Japan Air to seek antitrust immunity to collaborate on schedules and pricing as soon as an Oopen skiesO treaty between the two countries is concluded, according to the person, who asked not to be identified because the discussions arenOt public. The new alliance could be approved as early as June, assuming completion of the treaty in December and an application for regularity approval in January, the person said. Oct 28, 2009

Bombardier, Lufthansa

Bombardier finally cemented its decision to go ahead with its 110/130-seat CSeries twinjet in March when launch customer Lufthansa firmed up its Farnborough 2008 deal for up to 60 aircraft. The airline has subsequently been joined by lessor LCI, which placed orders and options for 40 aircraft, taking total commitments for the Pratt & Whitney PW1000G GTF-powered airliner to 100. Bombardier is pushing the CSeries as a small mainline jet, with the lower end of the Airbus A320 and Boeing 737 families firmly in its sights. The new jet, which is due to enter service in the second half of 2013, also threatens the top end of Embraer's successful E-Jet series - so it is no surprise that the Brazilian airframer confirmed this year that it is evaluating how and whether to respond to the threat. Oct 26, 2009

Cabot Aviation, Boeing

Cabot Aviation arranged the sale of one ex-American Airlines MD-82 from Verizon Capital to AvtecUSA. Oct 27, 2009

CIT Group

CIT Group Inc., a leading provider of financing...

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