Air Transport World articles from August 2004

Air Transport World archives from August 2004

Trends.(Illustration)
August 1, 2004... [GRAPHIC OMITTED] Jet Fuel Prices Spot cash markets (average) cents per gallon Jan. 100.76 Feb. 97.73 Mar. 99.45 Apr. 109.27 May 115.98 June 104.77 Source: US Dept. of Energy Note:...

The big issue isn't cabotage.(Editorial)
August 1, 2004... The recent collapse of US-EU open skies negotiations--predictably over the issues of cabotage and right of establishment in the US--is a disappointment, as is the fact that a second opportunity may not arise again this year owing to the US...

More cost cuts loom for United.(Brief Article)
August 1, 2004... United Airlines was expected to unveil a new round of cost-cutting proposals to employees and lenders following a third and final rejection by the US Air Transportation Stabilization Board of the carrier's application for a federal loan...

Alitalia bridge loan seen as likely.(Brief Article)
August 1, 2004... The European Commission was expected to approve at its July 20 meeting the Italian government's plan to provide a guaranteed bridge loan amounting to 400 million [euro] ($492.7 million) to Alitalia. Transport Commissioner Loyola de Palacio said...

Virgin Blue looking at intercontinental routes.(Brief Article)
August 1, 2004... Virgin Blue is undertaking a feasibility study into establishing a long-haul international airline operating to the US West Coast, London and other destinations in direct competition with Qantas. The Australian budget carrier confirmed last...

US, China ink new ASA.(Air Services Agreement)(Brief Article)
August 1, 2004... The US and China on June 18 inked a "landmark" air services agreement that, according to the US Dept. of Transportation, will more than double the number of US airlines that may serve China, permit a nearly fivefold boost in weekly flights...

Air New Zealand.(Asia/Pacific report)(Brief Article)
August 1, 2004... Air New Zealand unveiled plans to redesign the interiors and cabins of its long-haul aircraft beginning with a NZ$160 million ($102.4 million) overhaul of its 747-400s. As part of the makeover, ANZ will eliminate first-class in favor of an...

Qantas.(Asia/Pacific report)(Brief Article)
August 1, 2004... Qantas flight attendants ate primed for industrial action over the airline's plans to establish a base for 400 long-haul cabin crew in London, which the airline claims will save it A$18 million ($13 million) annually. Union chiefs say cabin...

Lufthansa and Air China.(Asia/Pacific report)(Brief Article)
August 1, 2004... Lufthansa and Air China decided to extend their 15-year-old Ameco-Beijing joint venture for at least 25 years, according to published reports. Approximately 4,000 employees work for Ameco-Beijing, which provides maintenance for Air China as...

ANA, Japan Airlines and Meitetsu (Nagoya Railroad).(Asia/Pacific report)(Chubu Sky Support)(Brief Article)
August 1, 2004... ANA, Japan Airlines and Meitetsu (Nagoya Railroad) launched a joint venture company, Chubu Sky Support, to supply ground handling services at the new Chubu International Airport near Nagoya, which is scheduled to open Feb. 17 (ATW, 5/04, p....

Sabre Airline Solutions.(Asia/Pacific report)(Brief Article)
August 1, 2004... Sabre Airline Solutions signed a two-year contract with China Eastern Airlines to implement Phase II of an "extensive consulting project" valued at $1 million. China Eastern will follow the recommendations made during Phase I of the detailed...

Japan Turbine Technologies.(Asia/Pacific report)(Brief Article)
August 1, 2004... Japan Turbine Technologies, a joint venture between Pratt & Whitney and Japan Airlines, will maintain HPT airfoils on V2500 engines on behalf of All Nippon Airways under an exclusive two-year contract covering 14 V2500s powering seven ANA...

Quote of the month.(EU Transport Commissioner )(Brief Article)
August 1, 2004... "... I should be possible to give the green light to this demand from the Italian government."--EU Transport Commissioner Loyola de Palacio commenting on the plan to lean 400 million [euro] ($492.7 million) to Alitalia.

Rockwell Collins.(Asia/Pacific report)(Brief Article)
August 1, 2004... Rockwell Collins was selected by Korean Airlines to provide avionics for nine new 777s with an option for additional aircraft. Rockwell's MultiScan Radar and GLU-920 Multi-Mode Receiver are included in the avionics package.

Air Canada.(North America report)(Brief Article)
August 1, 2004... Air Canada in late June said it accepted an investment proposal from New York-based Cerberus Capital Management under which the firm will invest C$250 million ($183.8 million) in convertible preference shares, equivalent initially to 9.2% of...

The US Transportation Security Administration.(North America report)(Brief Article)
August 1, 2004... The US Transportation Security Administration launched the Registered Traveler Pilot Program July 7 at Minneapolis/St. Paul International Airport in conjunction with Northwest Airlines, while it was set to be introduced at Los Angeles...

JetBlue Airways.(North America report)(Brief Article)
August 1, 2004... JetBlue Airways' 100-seat Embraer 190s, which begin arriving next year, "will offer better cockpit/seat economics" than larger Frontier Airlines A319s, AirTran 717s and Southwest Airlines 737s, according to JP Morgan analyst Jamie Baker. In a...

United.(North America report)(United Air Lines Inc. Ted)(Brief Article)
August 1, 2004... United's low-fare operation Ted gained roughly 10 points in market share in Denver from key competitors, moving from 41.5% to 51.6% in its first three months, according to Ted VP Sean Donohue. Since launching operations from Washington Dulles...

Northwest Airlines.(North America report)(Brief Article)
August 1, 2004... Northwest Airlines has reduced the amount of savings it is seeking from its pilots from a reported $415 million to $300 million per year, the Air Line Pilots Assn. said. However, this is still significantly higher than the $200 million in...

Southwest Airlines.(North America report)(Brief Article)
August 1, 2004... Southwest Airlines and its flight attendants reached a tentative agreement on a new contract after two years of fruitless negotiations following intervention by Chairman Herb Kelleher. According to the Transport Workers union, the agreement, if...

ATA Airlines.(North America report)(Brief Article)
August 1, 2004... ATA Airlines pilots, represented by the Air Line Pilots Assn., ratified concession and new equipment letters of agreement to their current collective bargaining agreement that will save the company approximately $43 million over the next two...

International Brotherhood of Teamsters.(North America report)(Brief Article)
August 1, 2004... International Brotherhood of Teamsters said it has collected enough authorization cards to file with the National Mediation Board to hold an election to seek to represent America West Airlines' 3,400 customer service agents, IBT already...

UPS and the Independent Pilots Assn.(North America report)(UPS Airlines)(Brief Article)
August 1, 2004... UPS and the Independent Pilots Assn., which represents the company's 2,500 pilots, jointly filed for mediation with the National Mediation Board. The parties have been negotiating a new pilot labor agreement since Oct. 2002.

Alaska Airlines.(North America report)(Brief Article)
August 1, 2004... Alaska Airlines and its flight attendants, represented by the Assn. of Flight Attendants, jointly filed for mediation with the NMB. They have been negotiating a new contract since Aug. 2003.

Boeing.(North America report)(Irving)(Brief Article)
August 1, 2004... Boeing will sell its Irving, Tex.-based Commercial Electronics unit to BAE Systems North America. The unit, which had 2003 sales of about $170 million and net assets of $15 million, designs, manufactures and supports a range of commercial...

Former AMR Corp. chairman and CEO Albert Casey.(North America report)(Brief Article)
August 1, 2004... Former AMR Corp. Chairman and CEO Albert Casey, who led the airline during the early days of deregulation, died July 10. He was 84. Casey joined American Airlines in 1974 and retired as chairman of parent AMR Corp. in 1985, although he remained...

Hamilton Sundstrand.(North America report)(Brief Article)
August 1, 2004... Hamilton Sundstrand will provide a nitrogen generating system for the 7E7, which Boeing said will be the first commercial jet to feature such a system.

Goodrich Corp.(North America report)(JET Engineering Ltd)(Brief Article)
August 1, 2004... Goodrich Corp will supply the proximity-sensing system on the 7E7. It monitors the positions of the landing gear and thrust reverser components and determines whether the passenger and cargo access doors are closed. Goodrich in conjunction...

Boeing and Delta Air Lines.(North America report)(Brief Article)
August 1, 2004... Boeing and Delta Air Lines entered into an Integrated Materials Management agreement under which Boeing is responsible for the purchasing, inventory management and logistics for a number of Delta expendables, initially focused on Boeing parts....

Rockwell Collins.(North America report)(Brief Article)
August 1, 2004... Rockwell Collins was chosen by Continental Airlines to provide avionics MRO and support for all Rockwell Collins-manufactured units on its entire fleet under a five-year agreement.

AAR Aircraft Services.(North America report)(Brief Article)
August 1, 2004... AAR Aircraft Services, a wholly owned subsidiary of AAR Corp., will lease part of the former United Airlines maintenance base at Indianapolis International Airport for 10 years with an option for an additional 10 years. AAR operations at the...

US Majors Traffic.(North America report)(Brief Article)(Illustration)
August 1, 2004... US Majors Traffic June 2004 RPMs % chg. ASMs (billions) 2003 (billions) Alaska 1.52 12.1 1.98 American ...

ARINC.(North America report)(Brief Article)
August 1, 2004... ARINC won a four-year contract to maintain all of Air Canada's 3,200 UHF ground radios and systems located at 18 airports across Canada. ARINC also will provide AC with a fully managed radio support program, including centralized equipment...

SmartSignal Corp.(North America report)(Brief Article)
August 1, 2004... SmartSignal Corp. announced a six-year engine condition monitoring agreement with Southwest Airlines covering the carrier's 737-700 fleet.

SAS Group.(Europe Report)(Brief Article)
August 1, 2004... SAS Group warned in late June that it does not expect to achieve its goal of a positive result before tax, capital gains and nonrecurring items this year, citing as reasons high fuel prices and continued "uncertainties about yields and the...

Fiver German airlines.(Europe Report)(Brief Article)
August 1, 2004... Five German airlines--Germania, dba (formerly Deutsche BA), Air Berlin, Windrose Air and Hapag Lloyd--want to take over operation of Berlin Tempelhof, which is scheduled to close Oct 31. The consortium believes it can run the midtown airport,...

Ryanair.(Europe Report)(Brief Article)
August 1, 2004... Ryanair said it is considering charging tip to 50 [pound sterling] ($93) pet checked bag. The move could cut 50 million [euro] of 150 million [euro] ($ 186 million) in annual airport and handling charges, according to CEO Michael O'Leary. "The...

European Parliament.(Europe Report)(Brief Article)
August 1, 2004... European Parliament President Pat Cox in late June asked the EU Court of Justice to annul the agreement that authorizes European carriers to process and transfer PNR data to the US Dept. of Homeland Security. Cox also decided to appeal the...

Swiss International Air Lines.(Europe Report)(Brief Article)
August 1, 2004... Swiss International Air Lines said owing to the steep rise in fuel prices and the absence to date of cost concessions from its primary MRO supplier SR Technics, it may not achieve a breakeven operating result this year as had been forecast...

Iberia.(Europe report)(Brief Article)
August 1, 2004... Iberia plans close its mini-hub at Miami International Airport where it bases four A319s that service seven destinations in Latin America. Some cities will be served directly from Spain, while others will be operated "by associated companies,"...

Aer Lingus.(Europe report)(Brief Article)
August 1, 2004... Aer Lingus senior management's proposal to lead a financial buyout of the airline was rejected by the Irish government.

Finnair.(Europe report)(Brief Article)
August 1, 2004... Finnair named Lasse Heinonen senior VP and CFO effective Oct. 1. He also will become a member of the Group Management Team. He comes to Finnair from Novartis Pharma Services in Basel, where he was CFO.

Virgin Express.(Europe report)(Brief Article)
August 1, 2004... Virgin Express lost 8.2 million[euro] ($10 million) in the first quarter ended March 31, improved from a loss of 11.7 million[euro] in the year-ago period as successful cost containment offset a decline in revenue between the two periods. Total...

Geneva Airport.(Europe report)(Brief Article)
August 1, 2004... Geneva Airport cancelled plans to raise passenger charges for network carriers even as it redevelops an older facility targeted at budget airlines that would pay a reduced per-passenger charge. EasyJet is the dominant player at Geneva,...

Thales.(Europe report)(Brief Article)
August 1, 2004... Thales was selected by Boeing to provide the 7E7's electrical power conversion system while Labinal will supply wiring for the aircraft.

Scandinavian Airlines.(Europe report)(Brief Article)
August 1, 2004... Scandinavian Airlines contracted with Connexion by Boeing to provide wireless LAN Internet communication systems for seven A340-300s and four A330-300s. Lufthansa Technik will perform the installations.

EADS Sogerma Services.(Europe report)(National Air Services)(Brief Article)
August 1, 2004... EADS Sogerma Services is converting two A319s for National Air Services, Saudi Arabia's first privately owned airline, to offer a 44seat executive configuration. Aircraft also will undergo a heavy maintenance check and repainting.

SR Technics.(Europe report)(Brief Article)
August 1, 2004... SR Technics completed the acquisition of FLS Aerospace from FLS Industries. The purchase was supported by SR Technics' controlling shareholders 3i and Star Capital Partners.

Lufthansa Technik.(Europe report)(Vueling Airlines )(Brief Article)
August 1, 2004... Lufthansa Technik will provide total airframe and engine maintenance and support to Barcelona-based startup Vueling Airlines under a five-year contract covering its A320 fleet.

Aer Rianta.(Europe report)(Brief Article)
August 1, 2004... Aer Rianta, which operates Dublin, Cork and Shannon airports, would be split into three separate units under legislation proposed by the Irish government in June. The bill also includes pay and benefits protection for the state-owned entity's...

European Airline Traffic.(Europe report)(Illustration)
August 1, 2004... European Airline Traffic June 2004 RPKs % chg. ASKs (billions) 2003 (billions) AF-KLM (1) 14.67 12.1 18.54 AUA Group (2) ...

Lufthansa Systems.(Europe report)(Brief Article)
August 1, 2004... Lufthansa Systems' Departure Control System took over LOT's entire passenger and baggage handling at Warsaw.

Air One.(Europe report)(Brief Article)
August 1, 2004... Air One reached a multiyear agreement with Sabre Airline Solutions to deploy the SabreSonic new-generation passenger suite to power its reservations, check-in and Web capabilities.

Doughty Hanson.(Europe report)(Brief Article)
August 1, 2004... Doughty Hanson agreed to sell Dunlop Standard Aerospace Group to a consortium of UK-based Meggitt Plc and global private equity firm The Carlyle Group. Meggitt will acquire the Dunlop Aerospace Design and Manufacturing Division based in the UK...

CTT Systems.(Europe report)(Brief Article)
August 1, 2004... CTT Systems' Zonal Drying System was selected by Thomas Cook Airlines to be installed in three 757-200s. The systems will be used for evaluation and could be followed by a fleet order if the trial is successful.

Brazilian low-fare carrier Gol.(Latin America/Caribbean report)(Brief Article)
August 1, 2004... Brazilian low-fare carrier Gol raised $280 million in its June IPO, conducted simultaneously on the Sao Paulo Bovespa and New York Stock Exchange. The new capital will support the company's expansion plan that includes tripling its fleet by...

Aero Continente.(Latin America/Caribbean report)(Brief Article)
August 1, 2004... Aero Continente was grounded and forced to cancel several flights July 12 after the Peruvian government said the carrier had not demonstrated it had insurance. In April the carrier was barred from flying to the US because of safety concerns...

Copa Airlines and Continental Airlines.(Latin America/Caribbean report)(Brief Article)
August 1, 2004... Copa Airlines and Continental Airlines were to resume codeshare flights on 11 routes in mid-July. The agreement includes flights between Copa's hub in Panama City and three North American, two South American, three Central American and three...

Taca.(Latin America/Caribbean report)(Brief Article)
August 1, 2004... Taca contracted Lufthansa Systems in a deal valued at 20[euro]] million ($24.8 million) to provide a package of IT solutions covering most of its core processes over a five-year period. The contract is in partnership with Amadeus.

South African Airways.(Africa/Middle East)(Brief Article)
August 1, 2004... South African Airways said President and CEO Andre Viljoen decided to resign effective Aug. 31. No reason was given for his departure but it may have been linked to last year's currency hedging disaster in which the airline recorded 6.4 billion...

United Arab Emirates.(Africa/Middle East)(Brief Article)
August 1, 2004... United Arab Emirates signed bilateral aviation agreements with Brazil and Argentina. Under the agreement with Brazil, Emirates can operate 14 weekly frequencies to Brazil. The agreement also provides for intermediate stops between the...

Lufthansa Technik Logistik.(Africa/Middle East)(Brief Article)
August 1, 2004... Lufthansa Technik Logistik signed a contract with Emirates that covers consulting in areas including logistics, stocking systems, spare parts and supply chain management.

Elbit Systems.(Africa/Middle East)(Brief Article)
August 1, 2004... Elbit Systems said its US subsidiary was awarded a contract by Honeywell to supply overhead electro-optical projection units that will be integrated into Honeywell's new HUD system for airlines.

Kuwait Airways.(Africa/Middle East)(Brief Article)
August 1, 2004... Kuwait Airways implemented Mercator's MARS Airline Reservation System and MACS Airport Control System.

FedEx Corp.(Cargo)(Brief Article)
August 1, 2004... FedEx Corp. posted net income of $838 million for the fiscal year ended May 31, a 1% improvement over $830 million earned in the prior year. Operating revenues, which were boosted by the acquisition of Kinko's, jumped 10% to $24.71 billion...

Air Line Pilots Assn.(Cargo)(Brief Article)
August 1, 2004... Air Line Pilots Assn. lost a legal effort to force Airborne Inc., a unit of DHL Holdings, to transfer flying currently handled by ABX Air to Astar Airways, whose pilots are represented by ALPA.

Boeing.(Cargo)(Brief Article)
August 1, 2004... Boeing added another partner to its 747-400 Special Freighter program as part of an order from Korean Air for 20 passenger-to-freighter conversions. KAL's Aerospace Division will convert 19 of the aircraft and has the right to bid on other...

Alcoa.(Cargo)(Brief Article)
August 1, 2004... Alcoa signed an agreement with Babcock & Brown Aircraft Management for conversion and sale of the initial prototype of its 14Plus 757 passenger-to-freighter conversion. Alcoa said the agreement includes options for six additional conversions....

Jettainer.(Cargo)(Jettainer)(Brief Article)
August 1, 2004... Jettainer is the name of a venture between Lufthansa Cargo and US-based TrenStar for management and pooling of unit load devices at more than 250 stations worldwide beginning with ownership and management of LH Cargo's approximately 26,000...

First Choice Airways.(Equipment)(Blue Panorama )(Brief Article)
August 1, 2004... First Choice Airways (formerly Air 2000) signed a letter of intent for six 7E7s and said options on an additional three are possible, while Italian leisure airline Blue Panorama signed an LOI for four 7E7s. Boeing valued the deals at $1.2...

Eurofly.(Equipment)(Brief Article)
August 1, 2004... Eurofly signed a contract for one CFM56-5B7-powered A319LR and plans to acquire a second. Delivery of the aircraft is planned for spring 2005 and each will be equipped by Airbus with four-abreast seating for 48 passengers.

Austrian Airlines Group.(Equipment)(Brief Article)
August 1, 2004... Austrian Airlines Group finalized an order for a 737-800 to be used by Lauda Air with delivery next year. Lauda already operates four dash 800s.

Qantas.(Equipment)(Brief Article)
August 1, 2004... Qantas signed a contract for a suite of A380 integrated training solutions from CAE, including a simulator and Simfinity training device. Value was put at C$25 million ($18.8 million). The simulator arrives in summer 2006.

Continental Airlines.(Equipment)(Brief Article)
August 1, 2004... Continental Airlines ordered 35 Performance Improvement Program upgrade kits for the GE90-90B engines powering its 777s.

Correction.(Correction Notice)
August 1, 2004... Andile Mabizela is executive VP-commercial services at South African Airways. Oyama Mabandla is deputy CEO and becomes acting chief executive Sept. 1. Mabizela's title was given incorrectly in the "World Airline Report" (ATW, 7/04).

German banking giant WestLB.(Leasing & Finance briefs)(Singapore Aircraft Leasing Enterprise)(Brief Article)
August 1, 2004... German banking giant WestLB acquired the 35.5% stake in Singapore Aircraft Leasing Enterprise formerly held by Boullioun Aviation Services, which itself is a wholly owned subsidiary of WestLB. Remaining ownership of SALE is unchanged, with...

Aerolineas Galapagos.(Leasing & Finance briefs)(Brief Article)
August 1, 2004... Aerolineas Galapagos took delivery of the first of two ex-Air Malta 737-200s. The operating lease is provided by Amtec Corp. and the transaction was arranged by Sigma Aircraft Management. JetX took delivery of its second MD-82 from SAS in a...

Debis AirFinance.(Leasing & Finance briefs)(Brief Article)
August 1, 2004... Debis AirFinance signed an agreement with Asiana Airlines la purchase two new A321-200s and lease them back to the airline. Debis delivered the first of three F100s on operating lease to Mandarin Airlines. The two remaining aircraft will be...

AWAS.(Leasing & Finance briefs)(Euro Atlantic Airways)(Air Plus Comet)(Brief Article)
August 1, 2004... AWAS delivered a PW4060-powered 767-300ER to Portuguese carrier Euro Atlantic Airways. AWAS delivered a 737-300 to Spanish airline Air Plus Comet.

Midwest Airlines.(Leasing & Finance briefs)(Brief Article)
August 1, 2004... Midwest Airlines sold a DC-9-30 to Global Aircraft Leasing in South Africa. Meridian Aerospace Group was the exclusive agent for Midwest. Meridian also was the agent in the sale of a DC-10-30F from Royal & SunAlliance Insurance Co. to FedEx and...

Banc One Capital Corp.(Leasing & Finance briefs)(Jetran International)(Brief Article)
August 1, 2004... Banc One Capital Corp. Leasing sold two MD-82s to Jetran International with Meridian Aerospace Group acting as the exclusive agent for Banc One.

ASA celebrates 25 years.(Regional News)(Atlantic Southeast Airlines)
August 1, 2004... Atlantic Southeast Airlines, a wholly owned subsidiary of Delta Air Lines, marked its 25th anniversary in June with the delivery of a CRJ700 bearing a special livery commemorating the occasion. "We realized there were a lot of so-called...

Bombardier continues to eye larger aircraft.(Regional News)
August 1, 2004... Bombardier continues to evaluate the market for a new family of jets in the 110/135seat range that would compete against the lower end of the Airbus and Boeing offerings. A decision on whether to go forward with the $2 billion development...

Finnair inks deal for 12 Embraer 170s.(Regional News)(Embraer Empresa Brasileira de Aeronautica S.A.)(Brief Article)
August 1, 2004... As part of its strategy to acquire "the best possible fleet for its feeder traffic," Finnair signed an agreement with Embraer for 12 170s to replace its MD-80s and ATR 72s that are being retired. The airline took options on eight additional...