Weekly Digest - February 20th, 2012
Financials
AMR reported 2011 net loss of $1.98 B. Total senior management people now cut to 10 of the original 14.
Kingfisher Q3 total loss went up by 75% to $90.1 M.
Qantas H1 profit fell by 50% to $217 M - planning to cut 500 jobs.
Brazil TAM Q4 net income fell down to $55.3M on rising fuel prices.
Asiana posted $14.7 M in net profit for 2011.
Egencia 2011 corporate bookings increased by 34% to 2.6 B.
Source: http://online.wsj.com/
http://www.reuters.com/
http://www.centreforaviation.com/
http://www.abtn.co.uk/
The US aircraft maker signed a record $22.4 B deal with Indonesian LCC Lion Air. The deal was confirmed at the Singapore Air Show and covers the purchase of 201 of the new 737 MAX and 29 of the extended-range 737-900. The Lion Air deal, which surpassed the previous record-holder - Southwest, also includes 150 additional options.
Source: http://news.businessweek.com/
President Obama proposed air passenger security fees to be increased to a minimum of $5 per one way-trip with an eventual minimum of $7.5 by 2018. The proposed amendment to the fee structure is expected to guarantee $25.5 B for the federal coffers.
The security fees were instituted after Sept. 11 as a way for the US government to tackle the added burden of security costs without touching federal tax revenue. According to the President's 2013 proposal, however, $18 B of the expected $25.5 B will be used for federal debt and not for security. Needless to say, the presidential proposal did not win many supporters among the airline industry.
Source: http://online.wsj.com/