Aviation

Increase in net profit over the corresponding period last year :

Emirates 1 H profits up

Emirates airline achieved a net profit of Dhs 752 million (US$205 million), for the first six months of its current financial year ending September 30, 2009, a 165 percent improvement compared to Dhs 284 million (US$77 million) net profits for the corresponding period in 2008.

During this period the airline made an estimated direct contribution of Dhs 10 billion, and an estimated indirect contribution of Dhs 14 billion to the UAE economy, carrying over 13 million passengers and over 700,000 tonnes of cargo, and in the process also helped other businesses operating at Dubai International Airport achieve growth in revenue and traffic.

Emirates supported and stimulated growth in the aviation and tourism industry by continuing fleet and network expansion with eight new aircraft added, two new destinations launched and additional frequencies introduced; progressing its ongoing program to install the latest inflight entertainment systems and mobile connectivity across its fleet; and investing in the training and retention of its 29,000-strong staff.

In addition the airline invested over Dhs 40 million to activate two major campaigns promoting travel to and via its Dubai hub: ‘Keep Discovering Dubai’ launched with industry partners in April-June hosted over 2,000 travel and media representatives from all over the world to experience Dubai’s latest attractions.

Chairman and Chief Executive, Emirates airline and Group Sheikh Ahmed bin Saeed Al-Maktoum, said: “Emirates remained focused on its long-term strategy despite the global economic slowdown. We have continued to invest in our eco-efficient aircraft fleet; in strengthening our global route network; and also in supporting the infrastructure for our growing business.”

“The months since the global meltdown have really tested our mettle.

Unlike others in the industry, Emirates did not cut back on its product, service or people.

Instead, we invested in these areas and looked to our people to develop ever more innovative ways to manage costs, improve efficiencies, reallocate resources, and drive alternative strategies for the business. Emirates latest half-year performance testifies to the airline’s strong business foundations and agility in adapting to the challenging global economic environment.

In the first-half of its financial year 2009-10, Emirates posted strong business growth, in terms of capacity on offer and traffic carried compared to the corresponding period in 2008, performance that has been in stark contrast to the current trend seen across the aviation industry.

Capacity measured in Available Seat Kilometres (ASKM), grew by 22 percent, whilst passenger traffic carried measured in Revenue Passenger Kilometers (RPKM) was up 21 percent with Passenger Seat Factor sustained at a high level, averaging 77.5 percent, slightly down compared to 78.3 percent for last year. The volume of cargo uplifted was in line with last year.

British Airways to axe more jobs after losses balloon

British Airways revealed a quadrupling of net losses in its first half on Friday, and axed an extra 1,200 jobs in an “essential” cost-reduction program.

BA posted a loss after tax of 217 million pounds (242 million euros, 361 million dollars) during the six months to September 30 compared with a loss of 49 million pounds during the equivalent period in 2008.

“Aviation remains in recession,” BA chief executive Willie Walsh said in comments accompanying news of the company’s deep loss.

“With (BA) revenue likely to be one billion pounds lower this year, we can’t stand still and further cost reduction is essential,” he warned. British Airways said it would cut an extra 1,200 jobs, taking the total planned reduction to 4,900 by 2010.

Most of the new losses would be outside Britain and follows a high response from staff agreeing to work part-time or take voluntary redundancy to help secure the airline’s future.

Reacting to news of fresh cost-cutting measures, BA’s share price rallied 6.28 percent to 198 pence on London’s benchmark FTSE 100 index, which was up 0.23 percent to 5,137.32 points in midday trade.

BA also announced on Friday that group sales dropped nearly 14 percent to 4.1 billion pounds in the first half.

Some commercial airlines across the world are suffering badly from the massive global economic slump that has slashed demand for air travel and sparked a major cash squeeze for the sector.

However, on last week, Irish low-cost airline Ryanair said its net profit had shot up 80 percent to 387 million euros (570.8 million dollars) in April-September compared with the figure for the same period 12 months earlier.

On Thursday, Italian airline Alitalia reported its first operating profit since its takeover by an alliance of Italian business interests last January.

Meanwhile, BA, in a bid to improve its fortunes and claw back ground lost to British rival Virgin, launched an all-business class service from London to New York late in September.

Previous attempts at all-business class services from airlines such as Maxjet and Silverjet failed in the run-up to the worst downturn since the 1930s.

Earlier this year, British Airways decided to scrap all free meals apart from breakfast on its short-haul flights in an attempt to reduce overheads.

BA suffered an annual loss of 375 million pounds in its 2008-09 financial year, which it blamed on high fuel costs.

AFP

Taiwan plans to discuss transit cargo with China

Taiwan hopes to hold talks with China before the year’s end on allowing its airlines to carry transit cargo to and from the mainland, an official said Monday.

“The talks should be held this month or December,” the official, with Taiwan’s Civil Aeronautics Administration, told AFP on condition of anonymity. The opportunity to handle transit cargo to and from China, before it is shipped to a third and final destination, is considered key for local airlines looking to expand their market beyond current direct cargo services, he said.

Taiwan carriers hope to be permitted to fly goods to China as a first stop before a Chinese or other non-Taiwanese airline takes them to a final destination.

Similarly, they hope to secure the potentially lucrative opportunity to carry goods from the mainland to other destinations.

“Allowing transit cargo is crucial to us. It would allow cargo from the world destined for China be flown to the mainland via Taiwan. The same goes for goods shipped from the mainland,” an EVA Airways official told AFP. The official declined to provide a figure on the value of such transit cargo trade. China previously agreed to meet towards the end of 2009, and while an agenda has not yet been set, Taiwan hopes to secure a transit cargo arrangement demonstrating further liberalisation between the two sides. Since regular scheduled flights between Taiwan and China began in late August, the island’s carriers have transported 8,950 tonnes of China-bound goods across the Taiwan Strait, officials statistics showed.

Their Chinese competitors carried 5,797 tonnes of goods in the same period, according to official data.

Five Taiwanese airlines currently operate 135 passenger flights a week between four local cities and 19 Chinese destinations, while a total of nine Chinese carriers share 135 trips to the island.

The two agreed in 2008 talks - part of a series that has reversed six decades of hostility - to begin direct chartered flights between the mainland and Taiwan, with the first trip taking place later in the year.

AFP

Australian pilots suspended over landing gear miss

Two Australian pilots have been suspended for preparing to land a passenger plane without the correct landing gear, in what air safety investigators Wednesday labelled a “serious incident”.

The Qantas flight from Melbourne was forced to do a second lap above Sydney airport on October 26 after a cockpit alarm went off as the Boeing 767 prepared to touch down, the Australian Transport Safety Bureau (ATSB) said.

“Passing 700 feet on approach into Sydney, the crew commenced a missed approach due to the aircraft being incorrectly configured for landing,” the bureau said.

ATSB air safety spokesman Ian Sangston said the “too low gear” alert sounded because the landing gear had not been lowered, but said it was too early to speculate on the cause.

Qantas said flight safety was never at risk but it had stood the pilots down pending the bureau’s inquiry into whether human error was to blame.

“This is an extremely rare event, but one we have taken seriously,” the airline said in a statement.

“The flight crew knew all required procedures but there was a brief communication breakdown. They responded quickly to the situation... the cockpit alarm coincided with their actions.”

The incident follows the revocation last week of the licences of two US pilots who overshot their destination by some 150 miles (240 kilometres) while distracted.

Sangston said the ATSB was also investigating an incident in which the autopilot briefly disconnected on board a Jetstar flight between Japan and the Gold Coast as it passed through stormy conditions on October 29.

“My understanding is that there was some sort of problem with the information being provided to the pilots,” Sangston said.

Qantas’ budget offshoot Jetstar said early indications were that the Airbus A330’s airspeed sensing system was momentarily impaired, and several parts had been replaced on the aircraft before it was allowed to resume flying.

The error messages were similar to those reported from an Air France Airbus A330 jet which mysteriously plunged into the Atlantic in May, taking the lives of all 228 people on board.

AFP