► RÉUNION: Air Austral to continue French services until January 2013.

Réunion based carrier Air Austral (UU) is to continue its services between Réunion and various French cities namely Marseilles, Toulouse, Lyon and Nantes into January of 2013, having previously announced their suspension for 28 October 2012. Its service to Bordeaux however (routed via Marseille) is to end on 28 October 2012.

Air Austral Route Network

Air Austral: St. Denis de la Réunion – Lyon, France – Nantes, France
-Effective until 20 January 2013

• UU947 RUN2300 – 0705+1LYS0815+1 – 0925+1NTE 77W 3
• UU948 NTE1515 – 1620LYS1730 – 0700+1RUN 77W 4
  

St. Denis de la Réunion – Marseille, France – Toulouse, France

-Effective until 20 January 2013

• UU945 RUN2300 – 0650+1MRS0800 – 0855+1TLS 77W 5
• UU946 TLS1515 – 1610MRS1725 – 0630+1RUN 77W 6

St. Denis de la Réunion – Marseille, France – Bordeaux, France

-Service ends 28 October 2012

Source [AirlineRoute]

The route rationalizations come as part of Air Austral's efforts to return to profitability following a nasty 2011 financial year which ultimately forced the cancellation of the carrier's Australian and South Pacific operations, as well as the cancellation of two Airbus A380s it had ordered.

► ETHIOPIA: A weaker Birr helps, but isn't enough as Ethiopian Airlines records 40% drop in profits.

After having posted "record revenues" in H1 of its 2011/2012 Financial Year, Ethiopian Airlines (ET) came tumbling back down to earth as it reported a 40% drop in annual profits for its recently ended 2011/2012 Financial Year.

The most surprising part of it all is, whilst the usual suspects for the drop were to blame - that is: high global oil prices and the Eurozone Crisis - Ethiopian voluntarily awarded wage increases of between 6 and 7% to its staff, in stark contrast to its southern rival, Kenya Airways (KQ), who has been forced to make redundancies, claiming high worker wages were partly to blame for its 57% drop in Q1 2012/2013 profits.

It should be noted that a weaker Ethiopian Birr (ETB) also helped to somewhat inflate profits for the 2010/2011 Financial Year which implies that things may not have been quite so rosy without it:

"“One of the contributing factors for the surge in profit in that fiscal year was the devaluation [of the Ethiopian Birr]. And it is unfair to compare the profit made in 2010/2011 to the 2011/2012 fiscal year,” the official said."

Source [CapitalEthiopia]

Ethiopian Airlines Profits 2008 - 2012 (Ethiopian Airlines)

Ethiopian Airlines Financial Year 2011/2012 Results Summarized:

- Figures For 2011/2012 (% Change on 2010/2011)

• Net Profit: USD$40.8million (-40%)
• Operating Profit: USD$55.70million (-)
• Operating Revenue:  USD$1.88billion (+37%)
• Operating Overheads & Costs: USD$320million (+35%)
• Number of Passengers Carried: 4.6million (+25%)
• Capacity Deployed: - (+22%)

Causes:

• High Global Oil Prices
• Devalued Ethiopian Birr
• Weaker Eurozone economy & economic stagnation in China and SE Asia

Source [The Reporter, Ethiopia]

Tewolde Gebremariam (JeuneAfrique)

Despite a third successive year of declining profits, Ethiopian has remained resolute and will forge ahead with its Vision 2025 plans which, CEO Tewolde Gebremariam outlined as being focused on BRICS countries, as well as building further hubs in Central and Southern Africa - something akin to its ASKY airline which operates fairly successfully out of its Lomé, Togo hub.

In order  to achieve this, Tewolde stated that Ethiopian would have to grow at a rate of 25 - 30% per year (looking at the figures above, operating revenue grew 37% on 2011). But, with oil prices sitting high and eating into everyone's profits, there may be cuts and belt tightening measures lurking just around the corner for Ethiopian as well..

► BAHRAIN: Gulf Air brings forward Khartoum & Cairo capacity increases to September.

Bahraini carrier Gulf Air (GF) has announced that, encouraged by strong passenger growth witnessed across its network during the summer 2012 season, it will bring forward its planned Winter schedule to 10 September 2012 which would otherwise have started in late October.

Khartoum International Airport, Sudan (Eduard Onyshchenko)

Gulf Air: Bahrain - Cairo, Egypt

- Equipment to vary between Airbus A330 and Airbus A321.

 Bahrain - Khartoum, Sudan

- Frequency has been increased from six to 11x per week with one new flight departing Bahrain early morning while four flights leave at 11h15 hours. 

Source [Gulf Air]

As the timetables become available, so we will update the post accordingly.

■ KENYA: Courts block Kenya Airways staff layoffs.

Kenya Airways' (KQ) move to can over 300 of their employee's in a bid to reduce its bloated wage bill following a hefty 57% knock on profits in Q1 of the 2012/2013 Financial Year, has been put on hold by the Kenyan courts "until a lawsuit brought by the Aviation and Allied Workers Union (AAWU) challenging the layoffs is heard and determined."

The Union alleges in its suit that Kenya Airways, in addition to the Minister of Labour and the Attorney General, did not follow the prescribed procedures in labour law when announcing and planning for the restructuring exercise.

"The respondent [Kenya Airways] is hereby restrained by way of temporary injunction from proceeding with any negotiations or any staff rationalization that may render members redundant pending the hearing," Judge Onesmus Makau said in court orders seen by Reuters on Saturday.

Source [Reuters]

This development comes after a Tuesday meeting between the Kenya Airways board and the AAWU to discuss the redundancies, never took off (pardon the pun):

"The AAWU, which maintains that it had not been informed in advance about the retrenchment until last Thursday, had requested a meeting with KQ to present its proposal, and a date was fixed for yesterday.“We never met. They never contacted us,” Mpojiwa said yesterday evening."

Source [The Star Kenya]

A court date for the case has been set for 21 September 2012.

Titus Naikuni (StandardMedia)

Kenya Airways has been subject to numerous union backed strikes over the past few years: 2008, 2009, 2010, 2011 and 2012 all of which had to do with salary-related grievances and all of which invariably cost the airline dearly as Kenya Airways CEO Titus Naikuni pointed out that in addition to high oil prices and an excessive workforce, "significant annual staff salary increments, and costly decisions driven by the Collective Bargaining Agreements (CBA) negotiations with the staff unions had driven labour costs to unsustainable levels."

Under the intended restructuring plan, various junior staff and management were given until 10 August 2012 to adhere to the voluntary redundancy programme. In the likely event that adequate numbers were not reached, then mandatory lay offs would have to be effected. As part of the downsizing exercise, Naikuni noted that some positions would be declared redundant and in some cases, the airline would have to "outsource labour and services in some of the non-core functions of the airline, due to the technical nature of the industry."

► GHANA: Starbow expands regionally; Antrak returns to the skies whilst CTK CiTylinK suspends operations.

Ghana's civil aviation market has started to heat up considerably ahead of the launch of two new airlines - Africa World Airlines in September (tentatively) and that of Fly540's successor FastJet in November.

► SEYCHELLES: Blue Panorama to axe Mahé flights?

Italian private airline Blue Panorama Airlines (BV), which operates scheduled and charter flights to various global destinations, is to drop its Italy-Seychelles flights from "mid September" onwards, citing poor loads and passenger numbers, as the Italian economy continues to reel amid the ongoing Eurozone crisis.

Blue Panorama Boeing 767 in Mahè, Seychelles (Okke Behm)

The seasonal charter flights presently operate from Milan-Malpensa and Rome-Fiumicino.

"The tourist board and private sector have to talk to the travel agents and the tour operators to accept the situation and start using for instance Etihad and then connect from Abu Dhabi with Air Seychelles to Mahe. The alternative is to use Qatar Airways or Emirates to come here"

Source [WolfgangThome's Blog]

Italian Tourist Arrivals in Seychelles (NSB)

After Air Seychelles dropped its European routes in January of this year, Blue Panorama moved to fill the void left. However, the departure of Blue Panorama itself would mean there are no longer any direct flights between the Seychelles and Italy - historically a strong source of tourists for the islands.

No official confirmation from Blue Panorama itself has been heard as of publishing.

[UPDATE 31 AUGUST 2012] Amadeus lists the last flight out of Milan Malpensa as leaving on 3 September 2012, with the last flight leaving the Seychelles on 5 September 2012.

► NIGERIA: See pics of Overland Airways' new ATR72!

Ikeja-based Overland Airways (OJ), a Nigerian domestic carrier, is set to receive its first ATR 72 (F-WNUA) for use on its network, currently comprising Lagos, Abuja, Asaba, Ilorin, Minna, Calabar, Bauchi and Ibadan.

► MAURITIUS: Despite record passenger numbers, Air Mauritius still in the red for Q1 2012.

Despite having increased passenger numbers by 7.4 % on Q1 2011 to 292'449, persistently high global oil prices coupled with the Eurozone crisis have eaten away at Air Mauritius' (MK) profits for the first quarter of the 2012 Financial Year. Overall the company posted a net loss of €10.4million - a 12% improvement on the airlines' performance in 2011 - which it claims, would have been significantly less at just €2.4million had it not been for a weaker Euro/US Dollar exchange rate.

► BOTSWANA: See pics of Air Botswana's latest Avro RJ85 in a new livery!

As reported by The African Aviation Tribune in May, Botswana's national carrier Air Botswana (BP) is set to receive another BAe 146/Avro RJ85 (MSN#: E2303|A2-ABG) in the next few weeks (sporting a new fuselage livery) which will bring the number of the type operated by the airline to two.

Air Botswana BAe Avro RJ85 (A2-ABG) (Markus Altmann)

Air Botswana BAe Avro RJ85 (A2-ABG) (Jan Bekker)

Air Botswana is expected to receive a further 2 aircraft (one of which is another ex-Lufthansa Avro RJ85) in the near future for use on its routes between Gaborone, Francistown, Kasane and Maun domestically and Johannesburg, Cape Town, Harare and Lusaka regionally.

►► DJIBOUTI: Daallo Airlines adds a BAe146-200 to fleet.

Updated: 9 August 2012 [New Photo]. Djibouti-based airline Daallo Airlines (D3) has announced the addition of a BAe146-200 from UK-based aircraft management company Falko to its fleet which at present, consists of 2 Antonov An-24s and a DC 9.

► GHANA: See pics of Fly540's just arrived Embraer ERJ-170!

Fly540 Ghana (5G) recently took delivery of their first Embraer ERJ-170 Jet (MSN #4|9G-FLZ) which will be used to supplement their lone ATR 72-500 on their network that currently consists of Accra, Kumasi, Takoradi, Tamale in Ghana. A second 66-seat ATR72-200 is set to join the Fly540 fleet at some stage, though it is uncertain as to which branch of Fly540 (Ghana, Tanzania, Kenya or Angola) it will go.

Fly540 Ghana Embraer ERJ-170 Jet (9G-FLZ) (BK Bishop)

In related news, Fly540's parent company, FastJet, reported a 48% rise in passenger numbers in July compared with the same month last year translating into 60,367 customers flown whilst aircraft capacity utilisation stood at 65%.

FastJet is scheduled to take delivery of the first leased 156-seat Airbus A319 in either September or October with hopes of starting service from November onwards. Once the brand has settled and become profitable the Fly540 brand is then to be phased out.

► NIGERIA: (Pics) Arik Air set to lease A330 from Pembroke Group.

Nigerian carrier Arik Air (W3) are set to receive an Airbus A330 from Irish aviation specialists Pembroke Group as the airline looks set to capitalize on its primary competitor, Air Nigeria's (VK), continuing woes.

■ NAMIBIA: Air Namibia in partnership talks with Kenya Airways & Emirates as Ethiopian prepares for possible Windhoek launch.

Air Namibia (SW) is reportedly in talks with fellow African carrier Kenya Airways (KQ) over the possibility of forming a partnership, reports from Windhoek say with Kenya Airways' CEO Titus Naikuni expected in the Namibian capital sometime this week.

■ CENTRAL AFRICAN REPUBLIC: Bangui M'Poko International Airport to be upgraded and modernized from 2016 onwards.

Following years of neglect that have seen the degradation of its runways, taxiways and airport terminal, the Central African Republic's capital city Bangui's M'poko International Airport is to be upgraded to international standards after the Central African parliament's recent adoption of a bill establishing the Corporation for Airport Infrastructure Development in Central Africa (SODIAC), which is to oversee the project and various others.

► EGYPT: Alexandria Airlines to get first Boeing 737-300.

Swiss aviation site CH-Aviation reports that Egyptian ACMI and air charter specialists Alexandria Airlines (XH) are set to receive their first Boeing 737-300 (MSN 29244) which will join their Boeing 737-500, currently wet-leased to Sudan's Marsland Aviation.

Alexandria Airlines' 737-300 (Dominik Burger)

The airline was established in August 2006 as a joint venture with Jordan Aviation (suppliers of their Boeing 737-300) and initially operated charter services connecting Egypt to Europe and Jordan before briefly operating a limited number of scheduled flights from Alexandria International Airport to the Gulf and Middle East.

► ETHIOPIA: Ethiopian Airlines confirms 787 handover on August 14; to fly once off Washington - Addis flight on August 16.

Almost 3 years late, but the wait will be over soon enough as Ethiopian Airlines (ET) has officially announced that it is to take delivery of its first, and Africa's first, Boeing 787 Dreamliner at a ceremony in Seattle, Washington on Tuesday 14 August 2012.

""The fact that we are the first airline outside Japan to receive this ultra modern aircraft is an affirmation of our continuing pioneering role in African aviation. It is also a testimony of our commitment to give our passengers the best possible travel experience, with the best industry products and services." said Tewolde Gebremariam, CEO of Ethiopian. "

ET-AOQ in Seattle recently.

After taking delivery, Ethiopian will fly its Dreamliner "ET-AOQ" to Washington D.C. the following day, where the aircraft will be on display to foreign dignitaries amongst whom will be US Senators and House Representatives as well as Ambassadors, Executives from the World Bank and IMF, members of the Ethiopian community, the media and other invited guests. 

It should be noted that since its early days with the Boeing 707 and 720, Ethiopian has maintained a very strong bond with Boeing and its financiers at the Export-Import Bank of the United States.

Thereafter, Ethiopian Airlines on 16 August, will operate a one-time only Washington Dulles – Addis Ababa service on board its 787-8 aircraft, operating as a nonstop eastbound flight (13hrs 30mins) essentially the aircraft début flight.

•  ET2501 IAD1230 – 0900+1ADD 788 16AUG12

The Dreamliner is scheduled to touchdown at Addis Ababa's Bole International Airport on Thursday 16 August 2012 following which the airline will hold celebrations.

UPDATE: The Guangzhou, China inaugural route has been CANCELLED effective 6 August 2012. (For the updated schedule of Ethiopian's 787 destinations see this thread).

■ KENYA: Kenya Airways puts faith in newer aircraft and staff cuts as global oil prices continue to hit hard.

Citing "a downturn in passenger volumes, declining revenues, unstable fuel prices and an increasingly competitive environment", Kenya Airways' CEO and Managing Director, Titus Naikuni, (KQ) on Friday announced plans to reduce the Kenyan national carrier's staff overhead in a bit to streamline the airline following a 57% drop in profit from KSh3.5billion last year, to KSh1.6billion in Q1 of this year.

Naikuni stated that Kenya Airways' wage bill had more than doubled from KSh6billion in 2007 to KSh13.4billion in 2012 following a rise in the workforce size from 3'729 to 4'170 over the same period, which, with some 664 foreigners included, brings the overall tally to 4'834 employees. It was this increase that had eaten away at the airlines profitability and thus necessitated the redundancy drive which would start primarily with junior and management staff.

“Despite various initiatives that we have put in place, our cost base continues to be extremely high. This coupled with other direct operating costs, have put pressure on our contribution margin reducing our overall ability to operate profitably,” he explained.

Source [Kenya Airways]

Brent Crude Prices 2007 - 2012

As part of the streamlining initiative, Kenya Airways will first offer a "Voluntary Early Retirement Package" (VERP) to staff willing to leave the organization before 31 August, after which, it will pursue a mandatory redundancy programme, should the VERP fail to attract satisfactory figures.

In recent weeks, Kenya Airways has moved to implement a number of measures designed to ensure the company's viability in both the short term, and long term - with particular reference to the airlines Project Mawingo which aims to transform the airline into a more globally competitive player by 2020. In late June, it signed a mandate with the African Export-Import Bank (Afreximbank) to secure financing for Kenya Airways' fleet renewal initiative which will involve the purchase of nine (9) new Boeing 787-800s (Dreamliners) (B787s), one (1) Boeing 777-300ER (B777-300ER), and ten (10) Embraer EMB190 aircraft (E-190s). The new aircraft and their added efficiency will ensure Kenya Airways' fuel bill is kept as low as possible.

►►► ETHIOPIA: See Pics of Ethiopian's 787 ready for delivery; axes 787 on Harare and Lusaka route.

- Updated 6 August 2012. On-line aviation resource Airline Route is reporting (though these reports are uncorroborated) that Ethiopian Airlines (ET), set to receive its and Africa's first Boeing 787 Dreamliner in the next few weeks, has axed its planned Boeing 787 flights to Harare, Zimbabwe and Lusaka, Zambia originally slated to start on 28 October 2012.

Ethiopian's 787 ET-AOQ exits the paintshop (Josh Rawlin)

Ethiopian's 787 ET-AOQ in Seattle (Bernie Leighton)

UPDATE [AUGUST 8]: FOR RE-REVISED SCHEDULE PLEASE SEE THIS THREAD.

■■ MOZAMBIQUE: (Pics) New Domestic Terminal at Maputo Airport to be ready by October.

-Updated 28 December 2012.

Construction works on Maputo Airport's new Domestic Terminal have been concluded with functionality testing to be run from August onwards. The final touches now being applied include the cooling system, electrical appliances, safety equipment, escalators and an FIDS (flight information display system).

► PAKISTAN: PIA looking at returning to Nairobi and Johannesburg.

News reports out of Pakistan state that Pakistani state-carrier Pakistani International Airlines PIA (PK) has expressed interest in returning to Africa following the renewal of their fleet with five Boeing 737-800s, two B-777-LRs and two B747-800s.

PIA's 1982 Route Network with Nairobi & Dar es Salaam.

PIA last served Nairobi, Kenya from 2005 until 2006 as Karachi - Dubai - Nairobi with an Airbus A310. Dar es Salaam, Tanzania was also part of PIA's Africa Network until the 90s whilst Johannesburg, South Africa would be a début station, despite having been on the cards for many years.

"New planes scheduled to be purchased included five B-737-800, two B-777-LR and two Jumbo planes. Sources claimed that Jumbo planes would be used for Hajj purpose while B-777 for long haul flights like Huston, Chicago and Los Angeles while B-737-800 for other routes.
A well informed officer of PIA seeking anonymity said that MD PIA was also keen in revamping of routes like Nairobi, Johannesburg, Glasgow and Bangkok etc."

Source [The Nation, Pakistan]

Should the flights go ahead, PIA will face stiff opposition from UAE carrier Emirates, Qatar Airways and Kenya Airways whose collective flights and highly competitive fares forced PIA's withdrawal from the Nairobi route back in 2006.