Air Transport World

Europe.(special section: 1994 World Airline Report)

Adria: The Slovenian carrier continued to post healthy growth in passenger traffic in 1994, with enplanements climbing 17.2% to 505,399 and RPKs rising 15.4% to 548 million. FTKs, however, dipped 4.8% to 3.5 million. The 1995 forecast is for gains of 15% in passengers, 12.8% in RPKs and 64% in freight.

On the financial front, Adria cut its operating loss to $7.96 million from $16.6 million and its net loss to $9.1 million from $32.6 million as revenues grew 9.2% to $99 million and expenses dipped 0.2%.

Service was launched from Ljubljana to Copenhagen and from Tirana to Istanbul last year. This year, flights will begin from Ljubljana to Prague and Barcelona. Adria's fleet comprises three A320s, an MD-81, three DC-9s and two Dash 7s.

Aer Lingus: The Irish carrier returned to profitability in 1994, posting a pretax profit of $65.4 million for the 21 months ended Dec. 31, a sharp contrast to the $60.5 million pretax loss in the 12 months ended March 31, 1993. Aer Lingus Group wound up the lengthened fiscal year with a profit before tax and exceptional items of $16.6 million vs. a loss of $75.2 million in the previous period on revenues of $2.37 billion.

Included in the Group results was a $44.6 million loss at maintenance subsidiary TEAM Aer Lingus, which despite settlement of a bitter labor dispute continues to suffer "unsustainable" losses that the company said "will not be allowed to jeopardize the recovery now under way in the Group."

The Group bottom line remained in the red after restructuring costs and other write-offs totaling $147.2 million. Including the exceptional items, the 21-month loss was $131.2 million.

Executive Chairman Bernie Cahill attributed the improved financial picture to the "Strategy for the Future," launched in July, 1993 (ATW, 11/94), which has delivered annual cost savings of more than $80 million. Under the strategy, said the company, a "reconstructed" transatlantic service produced "major gains" in traffic and revenue, and the London route was brought back into profit.

No 1994 traffic results were available at this writing.

Aeroflot: The portion of Aeroflot that continues to report its traffic to ICAO still ranks as one of the world's largest carriers, even though its traffic has fallen off sharply since the breakup of the U.S.S.R.

In 1994, Aeroflot posted passenger boardings of 32,844,000, down 17.2%, RPKs of 72.2 billion, down 13.2%, and FM of 1.4 billion, down just under 1%.

Results from several of the individual carriers under the Aeroflot umbrella are detailed in items that follow. Because of a new tax on passenger numbers, many carriers are not reporting traffic and their passenger numbers are estimated.

Aeroflot Russian International: The international division of Aeroflot launched its first domestic routes in the CIS in 1994, and will develop a hub at Shannon, Ireland, this year. it also has become the first Russian airline to operate the Boeing 767.

ARIA boarded 3.1 million passengers last year, the same number as in 1993. RPKs were down 8.5% to 12.2 billion and FTKs fell 12.3% to an estimated 1.45 billion. Growth of 12.9% in passengers and 22.9% in RPKs is forecast its year.

ARIA was anticipating a pretax profit of $160 million, down from $171 million in 1993, on its international services.

Aero-Lloyd. The German charter carrier had a good year in 1994, recording growth of 17.4% to 2,700,000 in passengers and 19.1% to 5.6 billion in RPKs. It is anticipating further gains of 11.1% in passengers and 10.7% in RPKs this year. On the financial front, revenues rose 13% to $610 million and Aero-Lloyd was expecting to record a $5 million net profit after a $7 million net loss in 1993.

This spring, Aero-Lloyd signed agreements to acquire 16 A320s and A321 s to replace its MD-80s.

Aeropostale: Formed in 1991 and partially owned by Air France and Air Inter, the French carrier transports mail at night and charter passengers during the daytime in a fleet of eight 737-300s and 10 dash 200s. Thirteen of the aircraft are QC versions. It carried an estimated 1 million passengers in 1994.

Aerovolga: Traffic was down substantially again in 1994 at the CIS carrier but it hopes for a turn-around this year. Passenger boardings fell 28.9% last year to 2,547,000, RPKs were off 25.4% to 4 billion and FTKs declined 12.4% to 475 million. The passenger total is expected to rise to 3 million this year.

Air Atlantique: The French regional is acquiring a Beech 1900D with which to launch a new La Rochelle-Poitiers-Toulouse route. It flies an ATR 42, three Bandeirantes and a King Air 90, and plans to sell one or two of the Bandeirantes. Its 1994 traffic results could not be obtained.

Air Belgium: The charter carrier's passenger boardings fell 13.5% last year to 173,100 but its RPKs advanced 3.5% to 783.6 million.

Air Berlin: Traffic skyrocketed at the German carrier last year, with passenger boardings rising 109.5% to 1,047,600 and RPKs climbing 54.5% to 1.55 billion.

Air Dolomiti: Excellent results marked 1994 as the Italian carrier's passenger boardings rose 35.1% to 132,000 and RPKs jumped 28.8% to 74.1 million.

Air Engiadina: Addition of a second Do 328 to its fleet and initiation of service between Bern and Amsterdam highlighted 1994 for the Swiss regional. A third Do 328 was delivered this spring and service was launched from Bern to London city Airport and Frankfurt. Air Engiadina also flies a Jetstream 31.

Passenger boardings soared 147.5%, to 40,586. In 1995, RPKs are forecast to more than double to 55 million from 25.5 million.

Air Europe Espana: The Spanish charter carrier told IACA that it flew 3,436,000 passengers and 5.08 billion RPKs in 1994. Comparative figures from 1993 were not available.

Air Europe SpA: The Italian carrier's traffic turned down in 1994 as passenger boardings fen 20.2% to 182,400 and RPKs dropped 11.1% to 2.7 billion.

Air Foyle: The British carrier flies four An- 1 24 Ruslans in partnership with Russia's Antonov Design Bureau (ATW, 11/94). As of last fall, it had flown the aircraft 8,000 hr. and transported 40,000 tonnes of outsize cargo. Its 1994 traffic results were not available.

Air France: With traffic on the rise and losses diminishing, Air France is beginning to see some hope of viability ahead (see article, page 183), and was feeling optimistic enough about the future at this writing to discuss potential alliances with American and Japan Airlines. Meanwhile, it is divesting its 37.5% stake in Sabena. And it faces continuing labor unrest as a result of its announced plan to merge subsidiary Air Inter and its own European operations.

Net loss for the year ended Dec. 31 was slashed to $247.9 million from $1.5 billion. Revenues were up 1.8% to $7.8 billion. Air France Group, including Air inter, had revenues of $11 billion, up 1.9%. Operating loss was $84.7 million, down from $571.5 million, and net loss fell to $461.8 million, down from $1.66 billion.

Traffic grew at a healthy rate, with passenger boardings rising 8.6% to 15,616,150, RPKs jumping 15.1% to 50.2 billion and FTKs surging 17.5% to 4.4 billion.

Air Inter: Although it had forecast a loss for 1994, the French carrier ended the year with a profit of $4 million, its first in five years, on a 5.4% rise in revenues to $2.2 billion. In 1993, it booked a loss of $49 million. It is looking for continuing profits in 1995, predicting revenues will grow 3% and expenses will fall 10%.

Air Inter's passenger total was up 3% in 1994 to 17.5 million. This year, a notable event will be retirement of the eight Mercures that have been in service since 1974.

Air Liberte: The privately owned French carrier's fortunes improved considerably in 1994 as a 12.5% increase in revenues to $180 million produced an operating profit of $3 million and a net profit of $2 million, in contrast to an operating loss of $2 million and a net loss of $3. …

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