Air Transport World articles from August 2003

Air Transport World archives from August 2003

Trends.(Brief Article)(Illustration)
August 1, 2003... Airline Traffic [GRAPHIC OMITTED] Jet Fuel Prices Spot cash markets (average) [GRAPHIC OMITTED] Top 20 Airlines Jan.-June 2003 Airline RPKs (000) 1 American 93,001,474 2 United...

Anticipating the recovery. (Editorial).(recovery in the airline industry)(Brief Article)
August 1, 2003... A popular topic of conversation at the Paris Air Show just past was the shape of the upcoming recovery. Not the if, but the when and the how of it all. This is my fourth airline recession, three covered as a journalist after the collapse...

EU, US air service talks set for fall.(Brief Article)
August 1, 2003... The European Commission said it reached an agreement with the US "to begin comprehensive air service negotiations in early autumn" following the decision of the EU Council in June to grant a mandate to the EC. The goal is to achieve a...

Swiss to cut capacity 27%, eliminate 3,000 jobs.(Swiss International Air Lines)(Brief Article)
August 1, 2003... Swiss International Air Lines will operate 27% fewer ASKs in its winter schedule effective Oct. 26 as part of a massive restructuring announced on June 25 that also calls for elimination of up to 3,000 jobs from a total workforce of 9,000. The...

Air Canada restructuring moving forward.(Brief Article)
August 1, 2003... Air Canada moved closer to completing its financial restructuring last month with the signing of a broad agreement with GE Capital Aviation Services covering all 106 GECAS-financed and -managed aircraft, as well as new exit and aircraft...

AA, Delta, NWA sell Worldspan interests.(American Airlines, Delta Air Lines, Northwest Airlines sell Worldspan stakes to Travel Transaction Processing Corp.)(Brief Article)
August 1, 2003... American Airlines, Delta Air Lines and Northwest Airlines completed the sale of their interests in the Worldspan global distribution system to a newly formed company, Travel Transaction Processing Corp., owned by Citigroup Venture Capital...

Airlines rebuild SARS-ravaged schedules.(Asia/Pacific and world airline statistics)(Brief Article)
August 1, 2003... Airlines continued to restore services to, from and within the Asia/Pacific region during the early summer following the withdrawal of the last World Health Organization SARS travel advisories in June, bur the damages from the episode will...

British Airways. (Europe report).(will not sell Concorde fleet to Virgin Atlantic Airways)(Brief Article)
August 1, 2003... British Airways rejected a 5 million [pounds sterling] ($8.4 million) bid from Virgin Atlantic Airways for its Concorde fleet in late June and said it will retire the supersonic aircraft as planned in Oct. "Concorde is not for sale. Our...

Quote of the month.(Brief Article)
August 1, 2003... "We need to act now to save the company." --Singapore Airlines Group CEO Chew Choon Seng announcing the company's first layoffs in 20 years

Air France Group. (Europe report).(receives shareholder approval to reduce state ownership)(Brief Article)
August 1, 2003... Air France Group shareholders on July 10 approved resolutions that will permit the French state to reduce its 54% stake in the carrier. CEO Jean-Cyril Spinetta said freedom from state control is "necessary to give AF the means to fully...

Scandinavian Airlines. (Europe report).(inks contract with Connexion by Boeing)(Brief Article)
August 1, 2003... Scandinavian Airlines contracted with Connexion by Boeing for an undisclosed sum to equip its long-haul aircraft with high-speed wireless broadband Internet access. Passenger user fees have yet to be determined. The year-long installation...

MyTravel. (Europe report).(seeks damages from European Commission over failed takeover of First Choice)(Brief Article)
August 1, 2003... MyTravel, in a historic first, is seeking damages of 500 million [pounds sterling] ($865 million) from the European Commission for thwarting its attempted takeover of First Choice in 1999. The travel group bases its claim on the ruling of the...

Thomas Cook Group. (Europe report).(2md-quarter earnings)(Brief Article)
August 1, 2003... Thomas Cook Group, the travel company jointly owned by Lufthansa and German retail giant KarstadtQuelle, reported an adjusted loss before interest, taxes and amortization of 292.5 million [pounds sterling] ($345 million) for the fiscal first...

Alitalia. (Europe report).(Italian airline will not cut jobs)(Brief Article)
August 1, 2003... Alitalia Chairman Giuseppe Bonomi said the airline intends to reduce staff costs by 15 million [euro] ($17 million) through improved productivity measures rather than job cuts, scrapping previously announced plans to trim cabin crew numbers....

Deutsche BA. (Europe report).(seeks cost saving due to financial issues)(Brief Article)
August 1, 2003... Deutsche BA's new boss, German entrepreneur Hans Rudolf Woehrl, said in July that "the next four months will be the roughest in the airline's history" and warned that "if it becomes clear the airline is not en route to profitability, we'll...

LOT Polish Airlines. (Europe report).(elected interim chief executive Marek Grabek president and CEO)(Brief Article)
August 1, 2003... LOT Polish Airlines' supervisory boared elected interim chief executive Marek Grabek president and CEO. The government treasury official had served temporarily in the post since March following the resignation of President and CEO Jan Litwinski...

Lufthansa. (Europe report).(raises stake in Air Dolomiti)(Brief Article)
August 1, 2003... Lufthansa raised its stake in Air Dolomiti to 98.8%.

Uzbekistan Airways. (Europe report).(Pratt & Whitney-powered 11-114-100 turboprop)(Brief Article)
August 1, 2003... Uzbekistan Airways put into operation last month on an inaugural flight between Bukhara and Tashkent the first Pratt & Whitney-powered 11-114-100 turboprop. The latest version, equipped with PW100s and fitted with Rockwell Collins avionics, is...

European Parliament. (Europe report).(bill regarding airlines' compensation to passengers for overbooking)(Brief Article)
August 1, 2003... European Parliament passed a draft bill in July doubling what airlines must pay passengers who are denied boarding for overbooking or other reasons and requiring cash compensation for delays and cancellations. Ratification of the legislative...

European Airline Traffic: June 2003. (Europe report).(Brief Article)
August 1, 2003... European Airline Traffic June 2003 RPKs % chg. ASKs % chg. (billions) 2002 (billions) 2002 AF Group 8.53 -0.1 10.99 0.8 AUA Group * 1.16 ...

ATW Senior Editor Geoffrey Thomas was honored at the Aerospace Journalist of the Year Awards gala dinner on the eve of the Paris Air Show.(Aerospace Journalist of the Year Awards )(Brief Article)
August 1, 2003... ATW Senior Editor Geoffrey Thomas was honored at the Aerospace Journalist of the Year Awards gala dinner on the eve of the Paris Air Show. Thomas was recognized in the "Technology and Systems Solution" category for "An Incomplete Solution," his...

European Court of Human Rights Grand Chamber. (Europe report).(Brief Article)
August 1, 2003... Grand Chamber on July 8 reversed an earlier ruling that could have led to a ban on night flights into London Heathrow. In 2001, the court ruled that flights between 11:30 p.m. and 6 a.m. local time violated the human rights of eight persons...

Star Alliance. (Europe report).(Internet Protocol to be created with SITA)(Brief Article)
August 1, 2003... Star Alliance contracted with SITA to establish what it terms "the first common alliance Internet Protocol communications infrastructure platform." Under the agreement, Star Alliance will work with SITA to create a common shared IP-based...

Lufthansa Technik. (Europe report).(PrivatAir technical support contract)(Brief Article)
August 1, 2003... Lufthansa Technik signed a long-term Total Technical Support contract to cover PrivatAir's two A319LRs being operated on behalf of Lufthansa on services from Dusseldorf to Newark and Chicago.

Sabena Technics. (Europe report).(agreement with Rotable Asset Management for Volare Airlines)(Brief Article)
August 1, 2003... Sabena Technics signed an agreement with Rotable Asset Management for maintenance of Airbus components for an initial period of six years. Sabena Technics will be responsible, under a flight hour contract from RAM, for the MRO support of...

B/E Aerospace. (Europe report).(Brief Article)
August 1, 2003... B/E Aerospace was chosen by easy Jet to supply passenger oxygen systems for its 120 new Airbus aircraft. B/E recently was selected by Airbus as the provider of the gaseous passenger oxygen system for A320 family aircraft.

Goodrich Corp. (Europe report).(Easyjet Airline PLC contract)(Brief Article)
August 1, 2003... Goodrich Corp. entered into a 10-year agreement with easyJet to provide nacelle and thrust reverser MRO on its fleet of 737-300s/-700s and A320s. Separately, Goodrich in conjunction with JET Engineering introduced an engine exhaust nozzle...

FLS Aerospace. (Europe report).(Aegean Airlines contract)(British Airways contract)(Brief Article)
August 1, 2003... FLS Aerospace was selected by Aegean Airlines to provide heavy maintenance and component management for eight 737s for the next five years. The $12 million deal is a renewal of an existing three-year agreement. Air 2000 signed a new...

TAP Maintenance & Engineering. (Europe report).(Virgin Express Holdings PLC contract)(Brief Article)
August 1, 2003... TAP Maintenance & Engineering will provide overhaul services for CFM56-3s that power Virgin Express's 737-300s/-400s for an initial period of three years.

AAR and Iberia Maintenance. (Europe report).(joint partnership)(Brief Article)
August 1, 2003... AAR and Iberia Maintenance launched a joint partnership offering "comprehensive component support" of CRJs.

SAS Component and EADS Sogerma Services. (Europe report).(cooperation agreement )(Brief Article)
August 1, 2003... SAS Component and FADS Sogerma Services broadened their cooperation agreement to include "shared component pools with the possibility to create hub-and-spoke accessibility for joint customers."

SR Technics. (Europe report).(downsizing)(Brief Article)
August 1, 2003... SR Technics warned that up to 500 employees in its MRO operations could lose their jobs following Swiss International's decision to downsize its fleet.

Swissport. (Europe report).(cuts positions)(Brief Article)
August 1, 2003... Swissport, in a related development, said it will be forced to eliminate 350 positions in Switzerland owing to the service reductions.

ARINC. (Europe report).(Eurocontrol contract for pilot data link communications)(Brief Article)
August 1, 2003... ARINC was selected by Eurocontrol to introduce controller pilot data link communications. Eurocontrol named ARINC as the data link service provider for its Maastricht Upper Air Center as part of its Link 2000+ program. Iberia will use...

A US federal court. (North America report).(Dept. of Justice anticompetition case against American Airlines quashed)(Brief Article)
August 1, 2003... A US federal court last month slammed the door on a second attempt by the US Dept. of Justice to prove that American Airlines was guilty of anticompetitive behavior during the mid-to-late 1990s. The lawsuit, originally filed in 1999 by the...

United Airlines. (North America report).(UAL Corp. finances during May, 2003)(Brief Article)
August 1, 2003... United Airlines parent UAL Corp. reported a loss from operations of $155 million during the month of May but it also reported nonoperating income of $219 million that included $300 million in security fee rebates from the federal government,...

Munich Airport. (Europe report).(new terminal)(Brief Article)
August 1, 2003... Munich Airport inaugurated its new 1.5 billion [euro] ($1.72 billion) Terminal 2 at the end of June. The state-of-the-art facility was financed jointly by Munich Airport and Lufthansa in a 60/40 partnership, Europe's first such collaboration...

ATW through the years.(aerospace industry history as reported by Air Transport World)(Brief Article)
August 1, 2003... Five ago in ATW: Following two years of scrutiny; the European Union's competition commissioner, Karel van Miert, finally accepted the principle of big-airline alliances, approving--with qualifications--the planned tie-ups between British...

American Airlines. (North America report).(financial report)(Brief Article)
August 1, 2003... American Airlines parent AMR Corp. said reduced costs and improved unit revenues enabled it to generate positive cash flow from operations in May after excluding $358 million in security cost reimbursements from the government. AMR expected to...

Continental Airlines. (North America report).(aircraft delivery deferred)(Brief Article)
August 1, 2003... Continental Airlines said it is deferring 36 firm 737s scheduled for delivery in 2005-07 and is in discussions with Boeing regarding the terms of delivery of 11 757-300s also on order. The airline expects the deferred 737s to arrive "in 2008...

Boeing. (Europe report).(Royal Air Maroc contract)(Brief Article)
August 1, 2003... Boeing delivered this 737-800 to Royal Air Maroc in July, the first of 20 additional 737s for the airline.

JetBlue Airways. (North America report).(stock sale proceeds; more legroom in aircraft)(Brief Article)
August 1, 2003... JetBlue Airways will provide 2 in. more legroom for most customers by taking out one row of seats throughout its A320s beginning in Sept. With the new configuration, the carrier's A320s will have 156 seats, down from 162. Separately,...

Alaska Airlines. (North America report).(seeking to cut labor costs)(Brief Article)
August 1, 2003... Alaska Airlines began discussions with leaders of its five unions as it looks to shed $200 million in labor costs. The carrier said it already identified $100 million in nonlabor cost reductions. It is hoping to lower its cost per ASM excluding...

Hawaiian Airlines. (North America report).(Joshua Gotbaum named as Chapter 11 trustee)(Brief Article)
August 1, 2003... Hawaiian Airlines said Joshua Gotbaum was selected as Chapter 11 trustee, replacing John Monahan, who resigned in June for "personal reasons" one month after his appointment.

Northwest. (North America report).(new union for flight attendants )(Brief Article)
August 1, 2003... Northwest flight attendants chose a new union to represent them, ending 26 years of representation by the International Brotherhood of Teamsters.

Aircraft Mechanics Fraternal Assn. (North America report).(Brief Article)
August 1, 2003... Aircraft Mechanics Fraternal Assn. concluded a successful campaign to represent the mechanics at United Airlines. IAM still represents United's ground service and public contact employees.

WestJet. (North America report).(LiveTV satellite-based TV contract)(Brief Article)
August 1, 2003... WestJet inked a deal with LiveTV, a subsidiary of JetBlue, to put the satellite-based TV system in its 737-700s. Installation begins in the fourth quarter and should be completed by March 31, at which point Westjet expects to have 28 737-700s...

United. (North America report).(e-mall service to be introduced)(Brief Article)
August 1, 2003... United will become the first Z US airline to offer inflight e-mall service on all of its domestic flights by the end of 2003 using Verizon Airfone's Jet-Connect service. Tenzing is the e-mail service provider for Jet-Connect.

Midwest Express Holdings. (North America report).(labor contract ratified)(Brief Article)
August 1, 2003... Midwest Express Holdings, parent of Midwest Airlines and Skyway, said its unions ratified new concessionary contracts aimed at averting a Chapter 11 filing. Midwest continues to negotiate with its 11 aircraft lenders and lessors.

US FAA. (North America report).(Wide Area Augmentation System for instrument use)(Brief Article)
August 1, 2003... US FAA commissioned the Wide Area Augmentation System for instrument use, marking the first step toward opening access to more than 500 published satellite runway procedures at more than 200 US airports.

SAP and SmartSignal Corp. (North America report).(partnership)(Brief Article)
August 1, 2003... SAP and SmartSignal Corp. announced a partnership to create what they call the industry's "first tail-specific predictive maintenance solution."

Amsafe Aviation. (North America report).(Cyprus Airways contract)(Brief Article)
August 1, 2003... Amsafe Aviation announced that Cyprus Airways ordered its inflatable seatbelt restraints for the business-class cabins of its two A330-200s.

AAR Aircraft Services-Oklahoma. (North America report).(installation support for Aviation Partners)(Brief Article)
August 1, 2003... AAR Aircraft Services-Oklahoma will provide installation support for Aviation Partners Boeing's Blended Winglets for 737-300SPs, 737-700s and 737-800s under a deal with AVB. AAR Aircraft Component Services-Amsterdam will provide component...

Alcoa. (North America report).(Alcoa 20-20 shown at Paris Air Show )(Brief Article)
August 1, 2003... Alcoa at the Paris Air Show unveiled a new initiative dubbed Alcoa 20-20 intended to result in a 20% weight savings and 20% lower cost for metallic aircraft components over the next 20 years.

Sabre Airline Solutions. (North America report).(loyalty management system with Royal Brunei Airlines)(Brief Article)
August 1, 2003... Sabre Airline Solutions and Royal Brunei Airlines implemented the Sabre Traverse loyalty management system.

US majors traffic: June 2003. (North America report).(airline traffic)(Brief Article)
August 1, 2003... US Majors Traffic June 2003 RPMs % chg. ASMs % chg. (billions) 2002 (billions) 2002 Alaska 1.36 11.7 1.86 ...

Hollingsead International. (North America report).(wins STC from Federal Aviation Administration)(Brief Article)
August 1, 2003... Hollingsead International, a unit of DeCrane Aircraft Systems Integration Group, was awarded an FAA STC for its Sentry One cockpit door video surveillance system for the 737NG.

Sinex Aviation Technologies. (North America report).(agrees to licensing agreement with US Airways Inc.)(Brief Article)
August 1, 2003... Sinex Aviation Technologies said US Airways agreed to a long-term licensing agreement for the Sinex FleetCycle Production Manager software application.

Singapore Airlines Group. (Asia/Pacific report).(job cuts and other financial measures)(Brief Article)
August 1, 2003... Singapore Airlines Group, severely stung by the SARS-related travel downturn, ordered the first job cuts at the company in 20 years. On June 20, the carrier said that a total of 414 Singapore-based employees representing 1.5% of home staff were...

EVA Airways. (Asia/Pacific report).(annual earnings)(Brief Article)
August 1, 2003... EVA Airways reported that its full-year profit will be down by an estimated 94% to just $3.5 million because of SARS. It derives 43% of its revenue from cargo, which has been unaffected by the virus scare.

Qantas and British Airways. (Asia/Pacific report).(alliance extention)(Brief Article)
August 1, 2003... Qantas and British Airways secured a short-term extension of their "kangaroo route" alliance from the Australian Competition and Consumer Commission pending the outcome later this year of their application to operate the alliance for a further...

Virgin Blue. (Asia/Pacific report).(new services )(Brief Article)
August 1, 2003... Virgin Blue received approval from the Australian International Air Services Commission to commence services to New Zealand, Fiji and Vanuatu, which it expects to launch in Oct. However, the airline said NZ service is contingent upon resolving...

AirAsia. (Asia/Pacific report).(private equity placement, purchase)(Brief Article)
August 1, 2003... AirAsia completed a private equity placement representing 26% of the company to three foreign partners in late June. The new investors--IDB Infrastructure Fund LP, Crescent Venture Partners and Deucalian Capital 11 Ltd.--together will take up...

China Southern Airlines. (Asia/Pacific report).(share offering completed)(Brief Article)
August 1, 2003... China Southern Airlines completed a share offering in July as investors applied for 95.1 billion shares when it was offering just l billion shares for $326 million. Funds will be used to help pay for 20 737s on order.

Thai Airways International. (Asia/Pacific report).(share offering)(Brief Article)
August 1, 2003... Thai Airways International will offer 300 million new shares and 100 million government-owned shares to the public in Nov. to raise 15 billion baht ($336 million), reportedly reducing the government's share in Thai from 90% to 72%. Funds will...

Rolls-Royce. (Asia/Pacific report).(maintenance agreement)(Brief Article)
August 1, 2003... Rolls-Royce signed an agreement to maintain the 113 RB211-524s powering Qantas's 747400s and 767-300s and the 28 BR715s on QantasLink's 717s.

Messier-Bugatti. (Asia/Pacific report).(All Nippon Airways contract)(Brief Article)
August 1, 2003... Messier-Bugatti was selected by All Nippon Airways to supply wheels and brakes for six 777-300ERs on order.

Rockwell Collins. (Asia/Pacific report).(avions for Air Hong Kong)(Brief Article)
August 1, 2003... Rockwell Collins will provide avionics systems for Air Hong Kong's new A300-600Fs, deliveries of which are scheduled to begin in the latter part of 2004.

Thai Airways International. (Asia/Pacific report).(Lufthansa's NetAdvance)(Brief Article)
August 1, 2003... Thai Airways International selected NetAdvance, the Lufthansa Systems solution for analysis of worldwide traffic flow and booking origins.

The planned merger of TAM and Varig. (Latin America/Caribbean report).(Brief Article)
August 1, 2003... The planned merger of TAM and Varig was dealt a legal setback recently after Gilberto Carlos Rigono, former chairman of the Rubem Berta Foundation that controls Varig, was ordered reinstated by a federal judge. Rigono, who had been ousted by...

Lineas Aereas Federales. (Latin America/Caribbean report).(Brief Article)
August 1, 2003... Lineas Aereas Federales is the new state-owned domestic airline incorporated by the government of Argentina in early July to replace LAPA, the privately owned carrier grounded last April. The new airline is hiring all 780 former LAPA...

Qatar Airways. (Leasing & Finance briefs).(Brief Article)
August 1, 2003... Qatar Airways signed a financing mandate with Credit Lyoanais for long-term financing of two A320s to be delivered in March and Oct. 2004. DekaBank, KfW and Standard Chartered Bank are joining Credit Lyonnais as European Export Credit Agency...

Qantas. (Leasing & Finance briefs).(securities issue)(Brief Article)
August 1, 2003... Qantas sold A$450 million ($301 million) of 10-year unsecured senior notes, priced 187.5 basis points above the US benchmark treasury bend rate debt issue. Net proceeds will be used to refinance maturing debt and for general corporate purposes....

Debis AirFinance. (Leasing & Finance briefs).(purchase and lease)(Brief Article)
August 1, 2003... Debis AirFinance completed the purchase of four new CFM56-powered A321-200s and placed them with MyTravel Airways under a six-year operating lease coatract. Three of the aircraft are leased to MyTravel Denmark and one to MyTravel UK. Debis...

Cabot Aviation. (Leasing & Finance briefs).(exclusive agent for KLM)(Brief Article)
August 1, 2003... Cabot Aviation was appointed by KLM as its exclusive remarketing agent for the airline's 747-200s-300s. In addition, Cabot was appointed to remarket several of KLM's 737-300s. Separately, Cabot arranged the sale of two Brasilias on behalf of...

Estonian Air. (Leasing & Finance briefs).(Brief Article)
August 1, 2003... Estonian Air hosed a 737-500 from ILFC, increasing its fleet to four 737-500s end one F50. The Fokker will be returned to the lessor at the end of Oct.

Proposed startup Transgulf Express. (Leasing & Finance briefs).(to lease 6 A320s)(Brief Article)
August 1, 2003... Proposed startup Transgulf Express will lease six A320s to support the launch of low-fare service from the United Arab Emirates. Leases for the first three were signed with GATX at the Paris Air Show.

The Colombian government. (Latin America/Caribbean report).(Bogota Eldorado Airport concessions)(Brief Article)
August 1, 2003... The Colombian government is to announce in Oct. the winner of the bid for the 20-year management concession for Bogota Eldorado Airport, the top international airport in the country.

Emirates Group. (Africa/Middle East report).(management restructuring)(Brief Article)
August 1, 2003... Emirates Group announced broad changes in management structure and job tides effective July 1 to reflect its development since its startup in Oct. 1985. Group MD Maurice Flanagan was appointed vice chairman and group president, reporting to...

A Sudan Airways 737-200. (Africa/Middle East report).(crash)(Brief Article)
August 1, 2003... A Sudan Airways 737-200 crashed July 8 while attempting to return to Port Sudan Airport after the pilot reported technical problems shortly after takeoff. According to Reuters, 115 persons onboard were killed. There was one survivor, a...

FedEx Corp. (Cargo).(fiscal year earnings)(Brief Article)
August 1, 2003... FedEx Corp. reported net income of $830 million for the fiscal year ended May 31, up 17% over net income 0f $710 million last year. Revenue increased 9% to $22.49 billion while operating income rose 11% to $1.5 billion. The FedEx Express...

Investment group. (Cargo).(name change to Astar Air Cargo)(Brief Article)
August 1, 2003... Investment group led by Chairman and CEO John Dasburg completed the acquisition of DHL Airways, renamed Astar Air Cargo, in a transaction previously valued at $57 million. The company is under investigation by the US Dept. of Transportation to...

Atlas Air Worldwide Holdings. (Cargo).(Brief Article)
August 1, 2003... Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, said it is considering filing a pre-negotiated Chapter 11 plan of reorganization among "various alternative methods" to implement its restructuring program launched in...

AirTran Airways. (Equipment).(Brief Article)
August 1, 2003... AirTran Airways placed an order for up to 100 CFM56-7B-powered 737-700s mad dash 800s, including 50 firm aircraft, 28 of which will be purchased directly from Boeing and 22 that will be leased from GECAS. It also ordered up to 10 717s. The deal...