Passenger Traffic Growth Slows, Freight Remains Flat

The International Air Transport Association (IATA) released industry traffic results for the first 10 months of 2005 showing a weakening trend for both cargo and passenger traffic. October passenger traffic grew 6.0% compared to the same month in the previous year. This is considerably slower than the 7.9% recorded for the January-October period and is the slowest single-month growth recorded since January 2004. October load factor was 74.8%. Middle Eastern carriers led October growth at 15.1%. North American carriers posted October growth of 5.5%, sharply down from the 9.1% recorded in year-on-year comparisons September. Cargo traffic in October was nearly Read more

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Skyways Aviation arranges leases of five ERJ 145 aircraft

Skyways Aviation has arranged the long term lease of 5 ERJ aircraft from Chautauqua Airlines of the U.S. (a subsidiary of Republic Airways Holdings) to Aerolitoral of Mexico. The first three aircraft, serial numbers 145203, 145337 and 145444 were delivered in September 2005 and two further aircraft leases were closed on 28th November (serial numbers 145426 and 145440). The aircraft were placed despite strong competition from several airlines and lessors.

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Malaysia Airlines Reports Second Quarter Loss

Malaysia Airlines released its second quarter results for the period ending September 2005, reporting a net loss of RM367.7 million. With the loss of RM280.7 million reported for the first quarter, the net loss for the six months is RM648.4 million. The second quarter loss was primarily attributable to continuing high fuel prices. Fuel costs rose by 45% to RM1.2 billion, a significant rise from RM799 million for the second quarter of 2004. Other contributing factors included staff cost, handling and landing fees, aircraft and maintenance and overhaul charges and WAU charges and leases.

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Quantas to increase number of services to New York

Qantas announced that it would increase the number of services it operates to New York from three to five per week from 27 February 2006. The Executive General Manager of Qantas, Mr John Borghetti, said the addition of two extra services each week, operating from Sydney via Los Angeles, would provide customers with additional choices for travel to New York. “In particular, it will provide Australian businesses with better access to markets on the US East Coast.”

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Bombardier shows 3rd Quarter profitable Financial Results

Bombardier announced a profitable third quarter amidst continued challenging aerospace industry conditions. With four of its airline customers under bankruptcy protection, the Corporation nevertheless reported earnings before income taxes from continuing operations (EBT) before special items of $27 million. -Consolidated revenues of $3.3 billion USD -EBT before special items of $27 million USD -Free cash flow of $125 million, an improvement of $277 million USD -Cash and cash equivalents of $2.5 billion USD -Major increases of 71% in business aircraft deliveries and 43% in net orders -150th Global aircraft enters into service -New order intake totalling $2.1 billion USD at Read more

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British Airways plans a reduction of 35% in management staff

British Airways announced plans to re-structure its business with a 35 per cent reduction in the number of its 1,715 managers by March 2008. The figure comprises a 50 per cent reduction in senior managers, from 414 jobs to 207, and a proposed 30 per cent reduction in middle managers from 1,301 jobs to 911 jobs. This brings the total number of job cuts to 597. Willie Walsh, chief executive, said: “I said when we reported our second quarter financial results last month that our costs were up in most areas and that, as a result, we need to re-energise Read more

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Boeing Delivers First 777-300ER with Fuel-Efficiency Enhancements to Air France

The Boeing Company has delivered to Air France the first Boeing 777-300ER (Extended Range) airplane that includes enhancements that improve the overall fuel efficiency of the 777-300ER by 1.4 percent. This amount is in addition to the 2 percent fuel-burn improvement already proven in revenue service by the airlines that operate the 777-300ER. A 1.4 percent improvement in fuel efficiency on this airplane equates to an annual jet-fuel savings of approximately 200,000 gallons (757,000 liters).

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Frontier Announces Proposed Offering of Convertible Debentures

Frontier Airlines, Inc. (NASDAQ: FRNT) announced its intention to sell, subject to market and other conditions, $80 million aggregate principal amount of convertible debentures due 2025. Frontier is expected to grant the underwriters an over-allotment option to purchase up to an additional $12 million principal amount of debentures. The interest rate, conversion rate and offering price of the debentures are to be determined by negotiations between Frontier and the underwriters.

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