THAI returned to profit in Q4, shrinking its 2015 loss as a restructuring that reduced operating costs and boosted passenger revenues bore fruit. Net profit was THB5.4b (US$151m) for the October-December quarter, compared to a net loss of THB6.2b a year earlier, CFO Narongchai Wongthanavimok said. For 2015, the airline posted a net loss of THB13bt ($364m), narrower than the THB15.6b net loss in 2014. Total operating revenue fell 1.2% last year to TB188.7b, while operating expenses dropped 11.2%. Cost cutting and expanding its customer base will remain the focus of the carrier this year, president Charumporn Jotikasthira said, adding the airline would spend THB2b ($56.1m) on voluntary retirements this year, on top of the THB5b paid out last year. Cabin factor is also forecast to rise to 80% in 2016 from 72.9% in 2015. <br/>
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RwandAir and Ethiopian Airlines expect in the next few months to formally establish a strategic partnership that would see the two carriers working closely together. Under the terms of a deal provisionally reached earlier this month, Ethiopian Airlines will acquire a 49% stake in the smaller RwandAir, giving it the opportunity to create a new east African hub in the Rwandan capital Kigali. It will also gain representation on the RwandAir board and will provide technical assistance. Etihad Airways had previously expressed a desire to buy into RwandAir, but CE John Mirenge confirmed his preference for Ethiopian Airlines following a visit to its Addis Ababa headquarters earlier this month. Still to be determined in the course of final negotiations is the amount of capital Ethiopian will provide for its 49% stake. <br/>
Airbus landed a US$2.9b order for wide-body jets from Air China ahead of Wednesday’s ground-breaking ceremony for a finishing facility near Beijing for the same plane model. Air China is buying 12 A330-300s, though it listed the planes’ Jan 2013 purchase prices Monday to the Shanghai exchange. The deal would be worth US$3.1b at 2016 list prices, before the discounts customary in the industry. The planes are due for delivery through 2018 and would increase the airline’s capacity by 5.6%, the airline said. The deal comes as Airbus prepares to break ground on a completion centre for its double-aisle A330s in Tianjin, a decade after it opened an assembly facility for single-aisle jets there. The centre was announced last year along with a string of orders for the current A330 model. <br/>
Royal Brunei Airlines has signed a codeshare agreement with Turkish Airlines to link its Bandar Seri Begawan hub to Turkish’s home base at Istanbul. Royal Brunei will offer its BI code to Brunei-sourced passengers on Turkish flights from Istanbul to Dubai from end February, and will also offer Turkish ticketholders access to its Bandar Seri Begawan-Dubai route. Royal Brunei said it was “keen to further expand the codeshare arrangements in the future to our mutual benefit” with Turkish Airlines, which has committed to an expansion of its key network routes outside its traditional UK-Australia schedules to other transfer destinations across Europe and Southeast Asia. The agreement also boosts Turkish Airlines’ reach into the relatively lightly accessed Southeast Asia region. <br/>