Hat tip to guanosphere

World air passenger traffic plunges

WORLD airline passenger traffic fell 3.1 percent in 2009, the biggest drop in aviation industry history, fuelled by the global financial downturn, the International Civil Aviation Organisation said.

Preliminary figures for airline travel this year showed that international traffic declined by about 3.9 percent and domestic traffic by 1.8 percent, despite sharp growth in some regions.

Total passenger traffic - both domestic and international - fell in all regions except the Middle East, which posted 10 percent growth. All other regions recorded negative growth, with Africa hardest hit at minus 9.6 percent overall, the ICAO said.

The 3.1 percent drop in passenger traffic this year compared to 2008 was the largest on record for the industry and "reflects the one percent drop in the world gross domestic product for the year," the organization said in a statement.

"The double-digit domestic passenger traffic growth in the emerging markets of Asia and Latin America, and the relative strong performance of low cost carriers in North America, Europe and Asia Pacific helped curtail the decline in total traffic."

http://www.theaustralian.com.au/busines ... 5811999851

Mesa Air Group files for Chapter 11 bankruptcy
By Dave Segal
POSTED: 01:08 a.m. HST, Jan 05, 2010

Mesa Air Group Inc., a potential investor in Hawaiian and Aloha airlines when those carriers were in bankruptcy, has now followed that same flight path and filed for Chapter 11 reorganization.

The parent of interisland carrier go! and the 75 percent owner of the go! Mokulele joint venture, submitted paperwork early today in federal Bankruptcy Court for the Southern District of New York. However, the go! Mokulele venture, which operates as a separate entity, did not file for bankruptcy and service will be unaffected in Hawaii.

Phoenix-based Mesa called the bankruptcy a “financial restructuring” and said it was necessitated by 41 excess aircraft that it has parked and has been unable to put into service, 26 planes that will be coming out of service in the next four months from United Airlines, and significant upcoming aircraft lease payments that will be due later this month.

“It’s not like we have a business that doesn’t work,” Mesa Chairman and Chief Executive Officer Jonathan Ornstein said. “We have a business that works, but unfortunately we have assets that we can no longer utilize.”
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http://www.starbulletin.com/news/bulletin/80688267.html

Japan Air Could Dissolve Pensions: Report
By Robert Holmes 01/10/10 - 10:53 AM EST

TOKYO (TheStreet) -- Japan Airlines is considering a move to dissolve its pension fund for retirees if they choose to reject a 30% cut in payouts, according to a published report. Japan Air, which is eyeing a court-led bankruptcy, needs to win the agreement of more than two-thirds of its 9,000 retirees. If not, the state-run agency restructuring Asia's largest airline will likely close the pension fund, according to a Bloomberg report. The Yomiuri newspaper said that the pension fund has 291.8 billion yen ($3.15 billion) in assets.

An agreement would result in benefits being slashed by 65%, two people familiar with the matter told Bloomberg. Already, JAL has won approval from current employees for a 50% reduction in pension benefits, the report added.

The former employees have until Jan. 22 to accept or reject the proposed cuts, Bloomberg reported. About 45% had accepted the cuts as of Jan. 9.

Delta Air Lines (DAL Quote) and AMR Corp.'s (AMR Quote) American Airlines are closely watching developments of JAL's restructuring process as the U.S. airlines are interested in partnering with JAL to gain access to its lucrative network of flights to Asia.

Meanwhile, JAL's biggest banks, including Mitsubishi UFJ Financial (MTU Quote), are set to agree to a bankruptcy proceeding, people familiar with the matter told Bloomberg Saturday. The carrier is expected to file for bankruptcy in the week starting Jan. 18, the report added. http://www.thestreet.com/story/10658601 ... en=GOOGLEN

British Airways heads for record loss

Feb 5, 4:40 AM (ET)

By ROBERT BARR

LONDON (AP) - British Airways PLC said Friday that its cost-cutting drive has put the airline on the right course but won't save it from posting record losses in the current year.

In an update on the nine months ending Dec. 31, the carrier reported an operating of loss of 86 million pounds ($135 million), compared to a profit of 89 million pounds a year earlier, and a pretax loss of 342 million pounds compared to a loss of 70 million pounds.

Operating costs were down 10.5 percent, but that didn't keep pace with a 12.9 percent fall in revenue. The company did not disclose net profit figures for the period.

"While we are on the right track, we still expect to make record losses this year," said Chief Executive Willie Walsh. "Permanent structural change is being introduced in all areas and will return us to sustained profitability."

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http://apnews.myway.com/article/20100205/D9DLUDE04.html