AMR back in the black
American Airlines parent AMR posted its first full-year profit since 2000 with earnings of $231 million including a fourth-quarter net of $17 million. The results surprised analysts who said they had underestimated American's revenues and overestimated its fuel costs. American, followed by annual profits by Southwest and Continental, led off what is expected to be generally strong US earnings.
Northwest to share profits
Northwest Airlines is making enough strides in its reorganisation to make profit-sharing payments to its workers. Northwest chief executive Doug Steenland told employees in a note to expect $23-$27 million in profit-sharing payments in March. Meanwhile, Northwest pilots have sold 20% of their $888 million bankruptcy court claim for $150 million in cash, or about 85% of their face value, which Steenland said "reflects the confidence that investors feel in Northwest's future".
US Airways adds routes
US Airways will bulk up its transatlantic gateway at Philadelphia with three new destinations that will bring its European roster to 19 cities. A year-round service to Brussels and Zurich will be launched in June while a seasonal service to Athens will operate from May to October. US Airways says it will expand from Philadelphia even if it wins its hostile takeover attempt for Delta Air Lines, which has a larger European gateway at New York JFK airport. Continental Airlines also is launching a Newark-Athens service in June.
Caribbean merger
Caribbean Star Airlines plans to complete its proposed merger with LIAT in February and will reduce flights on overlapping routes. From the beginning of February, the carriers will operate a combined schedule under the LIAT brand. Antigua-based Caribbean Star will also shut down at the end of January its smaller sister carrier, US-based Caribbean Sun.
Frontier selects Republic
Frontier Airlines has selected Republic Airways to replace Horizon Air as its regional partner. Republic will operate 17 76-seat Embraer 170s from Frontier's Denver hub. The first route, to Louisville in Kentucky, begins in April. Frontier and its chief executive, Jeff Potter, will be profiled in the March issue of Airline Business.
Pluna sold to Leadgate
Uruguay's government is keeping no proceeds from the $177 million sale of Pluna, but allowing buyers to pay for their 75% stake through fleet purchases and capital injection. Leadgate Investment, a foreign consortium, is buying 49% of Pluna, with a local group taking 26%.
Green light for Aerolineas
Argentina's government has approved the airline's financial accounts, finally clearing the roadblock that will allow Aerolineas Argentinas to proceed with its planned float. Once it is formally out of bankruptcy, Aerolineas aims to proceed with a private placement and public offering within the next year.
Gol wins more fifth freedoms
Brazilian low-cost carrier Gol will expand its Latin network in the second quarter of this year with a new flight to Mexico City from Santiago via Lima. Gol has been actively acquiring fifth freedom rights, the latest coming with its launch of a daily service between Asunción and Buenos Aires.
Aerocalifornia is back
Last year's predictions of Aerocalifornia's demise have proven premature. Even though the Mexican operator was grounded for four months because of maintenance problems, it has been restoring flights ever since. In January it resumed service to Los Angeles. It now operates 28 routes with a fleet of 16 aircraft.
Source: Airline Business
