unaligned

Jetstar rejects claims it is the world's worst airline

Jetstar has hit back at claims it is the worst airline in the world and said the findings research by consumer watchdog Choice had no credibility. Data compiled by 11 consumer groups globally including Choice was released Saturday after 11,000 passengers who travelled in the past year gave feedback and scored the performance of 73 airlines. The findings showed Qantas was ranked as the best of the national carriers (ranking 36), ahead of Virgin Australia (51) and Jetstar came in last (73). A Jetstar spokesman criticised how the research was conducted and said it was not a fair indicator of all airlines. He said the data size of Jetstar passengers which included more than 100 respondents of the 11,000 overall was "around half the number of people we carry on one flight and a lot less than 34m customers who flew with us last year." <br/>

Ilyushin Finance firms 1 Bombardier Q400 for Jambojet

Moscow-based lessor Ilyushin Finance (IFC) has converted a Bombardier Q400 option into a firm order, taking its order to 2 of the type, to be placed with Kenya Airways low-cost subsidiary Jambojet. “This agreement for these next generation turboprops signifies a key development in IFC’s international leasing business. Jambojet, which operates Kenyan domestic flights from Nairobi, is expected to take delivery of the first leased Q400 aircraft in May and the second aircraft later this year. “The Q400 aircraft’s performance has exceeded our expectations on all fronts,” Jambojet CE Willem Hondius said. “The Q400 turboprop has helped us optimize and expand our operations and is undeniably the backbone of Jambojet’s growth strategy.” <br/>

Southwest Q1 net profit down 32% despite record revenue

Southwest Airlines posted 2017 Q1 net income of US$351m, down 31.6% from a net profit of $513m in the 2016 March quarter, even as the carrier generated record Q1 revenue of $4.9b, up 1.2% year-over-year (YOY). Q1 expenses increased 8.8% YOY to $4.2b as labour costs rose 12.6% to $1.7b and fuel costs heightened 8.2% to $922m. Operating income was $658m, down 30.3% from an operating profit of $944m in the prior-year quarter. Southwest’s Q1 traffic rose 3.3% YOY to 29.3b RPMs on a 4.1% increase in capacity to 36.7b ASMs, producing a load factor of 79.9%, down 0.6 points. Yield dropped 2.6% to 15.1 cents. Southwest took delivery of 9 Boeing 737-800s and 3 737-700s in Q1 and is scheduled to take delivery of another 55 aircraft in 2017. <br/>

Oman Air losses deepen in 2016

Oman Air recorded a sharp deterioration in its financial position in 2016, making a net loss of RO129.8m (US$337.1m) compared to RO86.3m in 2015. Full-year revenue was up 1% at RO4.73b. Last year, the airline was operating in “an increasingly volatile, political and economic climate,” CE Paul Gregorowitsch said. Passenger numbers grew by more than 21%, to 7.7m, while capacity, measured in ASKs, grew 20% to 24.8b. RPKs increased 25.5%, resulting in load factor rising 3% to 74.4%. Last year, net yield with respect to RPK fell by more than 17% across the network to 18.5b “due to a number of external factors,” Gregorowitsch said. “As a result of this, we have modified our growth targets slightly, but enhancing our fleet and network is the way to continue to stimulate demand and create stand out in an increasingly crowded market”. <br/>

Spirit Q1 net profit down 48%, but touts operational improvement

Spirit Airlines reported a Q1 net profit of $31.9m, down 48.4% from net income of $61.9m in the prior-year period, but the airline believes it is on the upswing. The aggressive price matching of major US airlines has led the airline to focus more on improving operating performance and on managing its fares more thoughtfully, CE Bob Fornaro told analysts. “We still have very low fares, but it’s no longer load factor at all cost,” he said. “We are getting better at managing our capacity … [With] the pricing environment today, which is a lot of price matching, you have to be more nimble with the way you manage your schedules, and I think you’re going to see a lot more of that going forward.” Fornaro noted that Spirit’s on-time performance improved 10.2 percentage points YOY to 75.5% in Q1. <br/>

Africa’s RwandAir replaces CE, launches London Gatwick services

RwandAir named Chance Ndagano as acting CE who replaced John Mirenge April 10. Ndagano is reportedly a former judge at the military tribunal. The carrier plans to launch 3X-weekly Kigali to London Gatwick services from May 26, becoming its first route to Europe. The new route will be operated by Airbus A330-200/300 aircraft, which offers 244 or 274 seats in a 3-class layout and inflight connectivity. In April, RwandAir began flights to Mumbai (India) and Harare, (Zimbabwe). London will be RwandAir’s 22nd destination. Mirenge previously said the carrier is also evaluating adding two Airbus A350 XWBs to its fleet by 2018. In 2017, RwandAir plans to acquire a fourth Boeing 737-800NG and will also expand its network to Guangzhou (China), Bamako (Mali), Conakry (Guinea), Lilongwe (Malawi) and New York. <br/>

Bangkok Airways explores next ‘boutique routes’

While cutting costs and frills has been the main strategy for small regional airlines in Asia’s increasingly crowded skies, Bangkok Airways has been playing a different game. Describing itself as a “boutique airline,” the midsize carrier boasts an extensive range of complimentary services such as airport lounges for all passengers, including those in economy, and hot meals on every flight, even for journeys that take less than an hour. Founded as a chartered flight operator in 1968 by Prasert Prasarttong-Osoth, the billionaire father of Puttipong Prasarttong-Osoth, now the company’s president, Bangkok Airways has gained a unique position over the years by developing a niche between international full service and low cost. <br/>