Fuel prices hit Air New Zealand profit
Air New Zealand is blaming soaring fuel costs for a 30% fall in full-year pre-tax profits to NZ$150 million ($95.6 million), despite revenues 5% higher at NZ$3.8 billion. "Given the extraordinarily challenging business environment the airline is operating in, this is a respectable result," says chairman of the board John Palmer.
Boeing to repurchase $3 billion of shares
Boeing's board of directors has approved a new stock repurchase plan of up to $3 billion worth of shares. The number of shares and the timing of the buyback will be based on cash balance levels and market conditions, says the manufacturer. "Our record backlog, strong operating performance and solid balance sheet allow us to invest in growth programmes like the 787, while also pursuing a significant share repurchase programme," says Boeing chief executive Jim McNerney. The US manufacturer has spent about $5 billion buying back its stock since 2004.
Alcoa's Hungary operation ships aerofoils
Alcoa's Hungarian operation - Alcoa-Kofem - has shipped its first order of turbine aerofoils following an extensive modernisation project at the facility. The aerofoil manufacturing operation boosts Alcoa Howmet's aircraft and industrial gas turbine components business by enabling it to "serve customers in Europe from its Hungarian operation", says Alcoa Howmet director manufacturing Europe/Asia, Laszlo Veres.
Aer Lingus IPO gains support
Irish flag carrier Aer Lingus gained union support for next month's flotation by agreeing to invest €104 million ($133 million) in a new pension scheme for its employees. The Irish state-owned airline will continue paying into a regular pension plan, which is also used by Aer Rianta and SR Technics, but will also set up a "top-up fund" exclusively for Aer Lingus employees following the airline's initial public offering at the end of September. The Irish government will retain a 25.1% stake in the carrier, and the majority of the proceeds from the privatisation will be used to finance Aer Lingus's planned fleet expansion.
Liebherr plans Russian facility
Liebherr Aerospace is to open a production facility in Russia to manufacture parts for Western passenger aircraft. Talks are under way with the government of Nizhny Novgorod region to choose a construction site for a $250 million factory to produce components that will be supplied to Airbus and its customers worldwide. "We expect to reach an investment agreement in October and begin construction early next year," says Liebherr.
IATA revises loss forecast for 2006
The International Air Transport Association has cut the amount it believes its members will lose this year from $3 billion to $1.7 billion, based on oil at $68 a barrel. IATA's previous forecast, in June, was based on a $66 barrel of oil. But it says "stronger than anticipated economic growth" has boosted revenues and restructuring has led to record load factors. Differences in performance between regions are also narrowing, with North American airlines expected to return to operating profit this year.
Source: Flight International
