Canada and UK agree deal
Canada and the UK have signed an Open Skies deal under which, from September, Canadian airlines will be able to offer unlimited flights to third countries via the UK and vice versa. The two countries will also be free of restrictions on fares when carrying traffic through their own cities to the third country. More than two million passengers a year fly between them.
BA boosts profits...
British Airways reported a 21% growth in pre-tax profits in the year ending March 2006 to £620 million ($1.2 billion), while operating profits rose to £705 million. The UK flag carrier says its short-haul business made money for the first time in 10 years. Operating margins rose to 8.3% from 7.2% the previous year, but BA warns of increased fuel costs this year.
...as Air France-KLM rises too
Full year operating profits at Air France-KLM rose nearly 50% to €936 million ($1.2 billion) for the full year to the end of March. The synergies created by their merger in 2003 have enabled Air France-KLM to achieve savings targets two years ahead of schedule, says chief executive Jean-Cyril Spinetta. Revenues went up 10%, to €21.4 billion. Despite high fuel costs, he expects a similar level of profitability this year.
A380 debuts at Heathrow
The Airbus A380 flew into London Heathrow for the first time on 18 May on a test flight to establish that the 550-seat twin-deck airliner would be compatible with modified taxiways and docking piers at Terminal 3’s newly developed Pier 6. The aircraft arrived from Berlin, where it had been on display at the ILA2006 air show.
Qantas cuts 1,000 jobs
“Massive” fuel price increases are blamed by Qantas chief executive Geoff Dixon for the decision to axe 1,000 jobs by year-end.
Source: Airline Business
