Air Transport World articles from August 2005

Air Transport World archives from August 2005

Top 20 airlines.(TRENDS)(Illustration)
August 1, 2005... TOP 20 AIRLINES JANUARY-JUNE 2005 RANK AIRLINE RPKs (000) 1 American 109,448,452 2 Delta 96,283,052 3 United 89,796,198 4 Air...

Exchange rate.(TRENDS)(Illustration)
August 1, 2005... EXCHANGE RATE CURRENCY UNITS PER US DOLLAR COUNTRY/ CURRENCY 6/30/05 4/29/05 Brazil/Real 2.3555 2.53 Canada/$ 1.2287 1.2519 China/Yuan...

Jet fuel prices *.(TRENDS)(Illustration)
August 1, 2005... JET FUEL PRICES * June 17, 2005 New York 171.76 US Gulf Coast 167.41 Los Angeles 172.95 Rotterdam 176.77 Singapore 166.52 Note: Table made from line graph.

Broken business models.(EDITORIAL)(Editorial)
August 1, 2005... You don't make money running an airline," the saying goes, "you make money selling things to an airline." There's more truth than hyperbole in this observation, as can be demonstrated by comparing the profit margins of a random selection of...

EC gives conditional okay to Lufthansa-Swiss deal.(Swiss International Air Lines AG got permission from European Commission to merge with Deutsche Lufthansa AG )(Brief Article)
August 1, 2005... The European Commission in early July conditionally cleared the proposed acquisition of Swiss International Air Lines by Lufthansa after the carriers committed to surrender slots for up to 41 roundtrips per day to new entrants at Zurich,...

Boeing, Airbus name CEOs.(Boeing Co. appointed James McNerney Jr. and Airbus S.A.S. appointed Gustav Humbert)
August 1, 2005... Boeing and Airbus both filled their leadership vacuums over the summer as Boeing named former GE Aircraft Engines chief James McNerney Jr. chairman, president and CEO, while the EADS board, as expected, appointed Airbus C00 Gustav Humbert to...

Sterling, Maersk to merge.(Maersk Air)(Brief Article)
August 1, 2005... The merger of Sterling of Denmark and Maersk Air, the airline unit of the Danish A.P. Moeller-Maersk Group, if completed, will create Europe's fourth-largest low-fare airline behind Ryanair, easy Jet and Air Berlin while rationalizing capacity...

Boeing launches 737-900ER.(Financial, results, new deals, and reports from every corner of the globe)(Brief Article)
August 1, 2005... Boeing officially launched the 737-900ER (formerly the 737900X) on the strength of an order for up to 60 worth $3.9 billion from Lion Air of Indonesia. The order includes 30 firm plus purchase rights for 30 more. Deliveries begin in the first...

King of the beast.(Boeing Co. introduced variant of 737(aircraft))(Brief Article)
August 1, 2005... Boeing launched the largest variant of the 737, the 737-900ER with orders for up to 60 from Lion Air.

Airlines win again on DVT.(Deep vein thrombosis)(Brief Article)
August 1, 2005... Airlines won another round in their continuing legal battle to keep deep venous thrombosis from being classified as an "accident," for which they may be found liable under international aviation law. In June the High Court of Australia upheld...

United Airlines parent UAL Corp.(planning to file its reorganization plan)(Brief Article)
August 1, 2005... United Airlines parent UAL Corp. said it expects to file its reorganization plan on or about Aug. 1 and emerge from Chapter 11 bankruptcy this fall. "While significant work remains, we believe this timeline for exit is realistically...

US Airways.(plans to exit bankruptcy bye merging with America West Airlines Inc.)(Brief Article)
August 1, 2005... US Airways' plans to exit bankruptcy through a merger with America West received a boost last month when Tudor Investment Corp. committed to provide $65 million of equity funding. As previously announced, the merger will be funded by $565...

Air Canada.(negotiations with its polits unions)(Brief Article)
August 1, 2005... Air Canada cancelled its recent orders for up to 36 777s and 14 787s after its pilots union rejected a tentative agreement governing pay and working conditions for the new fleets. The deal was vetoed primarily by original AC pilots dissatisfied...

Boeing.(NORTH AMERICA Report)(Brief Article)
August 1, 2005... Boeing delivered 85 commercial aircraft in the second quarter, consisting of three 717s, 59 737NGs, four 747s, one 757, four 767s and 14 777s. In the 2004 second quarter it delivered 75 commercial aircraft: Three 717s, 50 737NGs, four 747s,...

Northwest Airlines.(negotiations with Aircraft Mechanics Fraternal Association)(Brief Article)
August 1, 2005... Northwest Airlines and its mechanics were expected to be released from negotiations as this article went to press, setting the stage for a 30-day cooling-off period after which the carrier will be free to impose a contract on the mechanics and...

Alaska Airlines.(NORTH AMERICA Report)(Brief Article)
August 1, 2005... Alaska Airlines pilots overwhelmingly rejected a five-year tentative agreement reached in May that would have superseded the current two-year deal imposed by an arbitrator. According to the Air Line Pilots Assn., 89% of voting pilots opposed...

ATA Airlines.(planning to outsource some of its operations)(Brief Article)
August 1, 2005... ATA Airlines, which has been operating under Chapter 11 bankruptcy protection since October 2004, announced plans to expand the outsourcing of its heavy maintenance program and to begin outsourcing its customer reservations call center in moves...

US Dept. of Homeland Security.(imposing a rule on flights operating into and out of Reagan Washinton National Airport)(Brief Article)
August 1, 2005... US Dept. of Homeland Security ended the so-called "30 minute rule" for flights operating into and out of Reagan Washington National Airport. Under the rule, imposed after 9/11, passengers and cabin staff were required to remain seated for the...

US FAA.( Federal Aviation Administration negotiations with National Air Traffic Controllers Association)(Brief Article)
August 1, 2005... US FAA last month began what are likely to be contentious negotiations with the National Air Traffic Controllers Assn. on a new contract. The agency has been highly critical of the current contract, signed in 1998 under the Clinton...

Pratt & Whitney.(provided an engine to European Aviation Safety Agency)(Brief Article)
August 1, 2005... Pratt & Whitney achieved EASA engine validation of its PW6000, which will power the A318. Pratt said the engine is on track to be certified for use on the aircraft in October.

US majors traffic June 2005.(FACT FILE)(Illustration)
August 1, 2005... US Majors Traffic June 2005 RPMs % chg. ASMs % chg. LF chg. Airline (bil.) 2004 (bil.) 2004 (%) 2004 AirTran 1.03 39.6 1.30 35.5 77.7 2.4...

CAE shareholders.(agreed to shift the company's head office)
August 1, 2005... CAE shareholders agreed to the transfer of the company's head office from Toronto to Montreal, where CAE was founded in 1947.

Alteon Training.(signed a long term agreement with Aerosim Technologies)(Brief Article)
August 1, 2005... Alteon Training signed a long-term agreement to provide Aerosim Technologies' PC-based training tools in conjunction with its own training services.

Telair International.(contracts with Boeing Co.)(Brief Article)
August 1, 2005... Telair International was selected by Boeing to design and manufacture the cargo handling system for the 747 Large Cargo Freighter that will transport major assemblies for the 787.

Carmen Systems AB.(signed an agreement with Northwest Airlines Corp.)(Brief Article)
August 1, 2005... Carmen Systems AB signed a long-term agreement with Northwest Airlines to provide its preferential bidding system for the carrier's 5,300 pilots, plus an option to add NWA's 10,000 flight attendants.

Air New Zealand.(is restructuring its units and operations)(Brief Article)
August 1, 2005... Air New Zealand over the next 18 months will integrate its ANZ brand and low-cost Freedom Air leisure carrier under one operational umbrella built around the latter's cost model. The move will not affect ANZ's regional and long-haul operations....

Jetstar Asia.(joint venture with Valuair)(Brief Article)
August 1, 2005... Jetstar Asia, the Qantas low-cost joint venture, pulled out of alliance talks with another operator, Valuair, but at press time the proposed venture seemed to be back on the table (see article, p. 20). Jetstar Asia, which began operating in...

Virgin Blue.(Virgin Blue Airlines Proprietary Ltd. joint venture with Polynesian Airlines Holdings Ltd.)(Brief Article)
August 1, 2005... Virgin Blue finalized a deal with Polynesian Airlines to establish a Polynesian Blue joint venture that will operate international services on behalf of the Samoan national carrier. Virgin will hold 49% of the new company with the Samoan...

Narita International Airport Corp.(reached an agreement with International Air Transport Association)(Brief Article)
August 1, 2005... Narita International Airport Corp. announced last month that it reached agreement with IATA on a reduction in fuel supply facility charges that it expects will save airlines around [yen]1 billion ($9 million) per year. The new charge rate,...

Honeywell.(contracts with Malaysia Airline System Bhd.)
August 1, 2005... Honeywell announced that Malaysia Airlines will be the first carrier to equip its fleet with the Runway Awareness and Advisory System. MAS plans to install RAAS on its fleet of 92 aircraft and its three flight simulators.

China Eastern Airlines.(contracts with Aviation Partners Boeing)(Brief Article)
August 1, 2005... China Eastern Airlines placed an order with Aviation Partners Boeing for six 737-700 Blended Winglet shipsets that will be installed between February and August 2006.

Rockwell Collins.(contracts with Shenzhen Airlines)
August 1, 2005... Rockwell Collins sensors, radar and satellite communications were selected by Shenzhen Airlines for its six new A319s/A320s plus 14 options. Rockwell also was selected by China Eastern Airlines to provide sensors and radar equipment on 20 new...

Lufthansa Systems and Garuda Indonesia.(ASIA/PACIFIC Report)
August 1, 2005... Lufthansa Systems and Garuda Indonesia launched a joint venture called Lufthansa Indonesia specializing in software development and data center services.

ST Aerospace Supplies.(contracts with Spring Airlines)(Brief Article)
August 1, 2005... ST Aerospace Supplies secured a five-year, $21 million component support contract with Spring Airlines, a Chinese startup that launched service in July.

Kingfisher Airlines.(contracts with SITA Inc.)(Brief Article)
August 1, 2005... Kingfisher Airlines signed a five-year contract with SITA INC for VHF AIRCOM data link services.

ARINC's.(division will establish joint venture with Aviation Data Communication Corp. )(Brief Article)
August 1, 2005... ARINC's Asia/Pacific division will establish a joint venture with China's Aviation Data Communication Corp. to "research and develop new products and services for the global aviation market."

L-3 Communications Security & Detection Systems.(contracts with New Bangkok International )(Brief Article)
August 1, 2005... L-3 Communications Security & Detection Systems received an order to provide New Bangkok International Airport with two CX-3800G high-energy x-ray cargo inspection systems.

Unisys Corp.(contracts with Beijing Capital International Airport )(Brief Article)
August 1, 2005... Unisys Corp. was awarded a Master Systems Integrator contract from Beijing Capital International Airport to develop and integrate the core operational systems for BCIA's new international terminal, which is being built in preparation for the...

Preston Aviation Solutions.(to replace gate allocation system Kuala Lumpur International Airport )(Brief Article)
August 1, 2005... Preston Aviation Solutions was commissioned by Malaysia Airports to replace the existing gate-allocation system at Kuala Lumpur International Airport with its airport resource management system Airport Solutions.

Kiwi combination.(Air New Zealand Ltd.)(Brief Article)
August 1, 2005... Air New Zealand plans to integrate its ANZ brand and low-cost Fredom Air on Tasman routes.

Alitalia.(Alitalia Linee Aeree Italiane S.p.A. earnings and losses)(Brief Article)
August 1, 2005... Alitalia said its unaudited estimated loss before tax and extraordinary items narrowed to about 120 million [euro] ($143.3 million) in the first half of 2005 from 329 million [euro] a year earlier as preliminary passenger revenues increased 15%...

Virgin Atlantic.(EUROPE Report)(Brief Article)
August 1, 2005... Virgin Atlantic plans to recruit 1,500 staff over the next 18 months to support its expansion plans. About 1,000 are new positions and the remainder are a result of natural turnover. It currently employs approximately 8,500 staff.

Air France-KLM Group.(EUROPE Report)(sales and earnings)(Brief Article)
August 1, 2005... Air France-KLM Group restated its results for the fiscal year ended March 31 to comply with International Accounting Standards/International Financial Reporting Standards in accordance with EU regulations. As a result, net income rose to 770...

British Airways.(EUROPE Report)(sales and earnings)(Brief Article)
August 1, 2005... British Airways likewise restated its financial results. Under IFRS, net profit was unchanged at 251 million [pounds sterling] ($298.9 million) for the fiscal year ended March 31 but operating profit increased to 556 million [pounds sterling]...

KLM.(EUROPE Report)(labor contracts)(Brief Article)
August 1, 2005... KLM reached a collective labor agreement with the unions representing its ground and cabin staff for the period spanning Jan. 1, 2005, to April 1, 2007. The accord includes a phased and structural wage boost of 2.75%, with a one-off increase of...

Ryanair.(EUROPE Report)(launch of new services)(Brief Article)
August 1, 2005... Ryanair plans to launch eight new European routes from the UK during its next winter schedule, bringing its total network to 246 routes. The LCC also began a major tourism drive to encourage visitors to come to the UK, launching a major...

Icelandair parent FL Group.(EUROPE Report)(sales and earnings)(Brief Article)
August 1, 2005... Icelandair parent FL Group reported a first-quarter profit of 25 million kronur ($382,021), a significant improvement over the 855 million kronur net loss (as calculated by ATW) in the prior-year period. The company said first-quarter results...

Lord King of Wartnaby.(EUROPE Report)(obituary)(Brief Article)(Obituary)
August 1, 2005... Lord King of Wartnaby, who served as chairman of British Airways between 1981 and 1993 and led its successful restructuring, died July 12 at his home in Leicestershire. He was 87. Born John King, he was knighted in 1979, two years before Prime...

SAS Group and Carlson Hotels Worldwide.(EUROPE Report)(Carlson Hospitality Worldwide's purchase of Rezidor SAS Hospitality's stock)(Brief Article)
August 1, 2005... SAS Group and Carlson Hotels Worldwide at the end of June completed a previously announced agreement under which SAS sold a 25% shareholding in its Rezidor SAS hotels company to Carlson for improved commercial terms. The agreement is expected...

DBA.(EUROPE Report)(Delta Air Regionalflugverkehr GmbH's securities returned by Germania Express)(Brief Article)
August 1, 2005... DBA announced at the end of June that Germania Express, which is owned by businessman Hinrich Bischoff, has quit its 64% stake in DBA that was taken up in March in a deal that saw DBA assume Gexx's fleet and routes. DBA Supervisory Board...

Siemens.(EUROPE Report)(Siemens AG to provide in-flight connectivity services)(Brief Article)
August 1, 2005... Siemens will provide a lightweight GSM pico cell and an onboard channel selector to support the use of passenger mobile phones during flight on the A320 under an agreement with OnAir, the inflight connectivity joint venture between Airbus and...

Cerberus Capital Management.(EUROPE Report)(aquisition of AirFinance)(Brief Article)
August 1, 2005... Cerberus Capital Management completed its purchase of debis AirFinance from DaimlerChrysler, Bayern LB, Dresdner Bank, DZ Bank and NypoVereinsbank. Price was not disclosed.

FAA.(EUROPE Report)(Federal Aviation Administration's rating of Greek Civil Aviation Authority)(Brief Article)
August 1, 2005... FAA raised Greece's safety rating from Category 2 to Category 1, which means that the Greek civil aviation authority has been assessed by FAA inspectors and found to license and oversee air carriers in accordance with ICAO aviation safety...

Lufthansa.(EUROPE Report)(Deutsche Lufthansa AG to build new hangar in Frankfurt)(Brief Article)
August 1, 2005... Lufthansa received the go-ahead to build a maintenance hangar to handle the A380 at Frankfurt in the face of opposition from local authorities and environmental groups. The 150 million [euro] ($182 million) hangar is expected to be completed by...

Lufthansa Systems.(EUROPE Report)(product introduction of Future Airline Core Environment)(Brief Article)
August 1, 2005... Lufthansa Systems in June announced the global launch of a comprehensive passenger solution called Future Airline Core Environment. LHS CEO Wolfgang Gohde described FACE as "an independent, GDS-neutral solution for core airline applications."...

Bigger sky.(EUROPE Report)(SkyEurope's contract with Boeing)(Brief Article)
August 1, 2005... SkyEurope finalized a contract with Boeing for four winglet-equipped 737-700s last month for delivery in 2007.

European airline traffic June 2005.(FACT FILE)(Brief Article)(Illustration)
August 1, 2005... European Airline Traffic June 2005 % RPKs change ASKs Airline (billions) 2004 (billions) AF-KLM 15.81 7.8 19.40 Ba Group ...

SITA SC.(EUROPE Report)(alliance with INS)(Brief Article)
August 1, 2005... SITA SC in June announced an alliance with INS, a California-based global provider of vendor-independent business and technology consulting services and software solutions, to provide the travel and transportation industry with "a broad range...

SITA Inc.(EUROPE Report)(SITA Corp.'s contracts)(Brief Article)
August 1, 2005... SITA INC won a five-year, $7 million contract for IT support to baggage management at London Gatwick. BagManager allows users to run an automated reconciliation of baggage using some 250 wireless handheld scanners. Separately, SITA INC and...

MTU Maintenance Hannover.(EUROPE Report)(contracts)(JetBlue)(Brief Article)
August 1, 2005... MTU Maintenance Hannover was awarded a 10-year, 750[euro] million ($906.2 million) contract from JetBlue to maintain the 360 IAE V2500 engines powering the carrier's current and future A320s.

SAS Technical Services AB.(EUROPE Report)(Human resource management)(Brief Article)
August 1, 2005... SAS Technical Services AB will cut about 200 jobs out of a workforce of 3,700 as part of SAS Group's Turnaround 2005 program.

SR Technics Switzerland.(EUROPE Report)(service introduction)(Brief Article)
August 1, 2005... SR Technics Switzerland put its new CHF8 million ($6.2 million) pneumatic testing facility into operation last month.

Snecma Services.(EUROPE Report)(contracts)(Czech Airlines )(Brief Article)
August 1, 2005... Snecma Services signed a three-year contract with Czech Airlines to provide maintenance and repair services for the CFM56-5B engines powering its four A320 family aircraft.

TAT Industries.(EUROPE Report)(Sabena Technics)(mergers and acquisitions)(Brief Article)
August 1, 2005... TAT Industries finalized its acquisition of Sabena Technics.

Lufthansa Technik Malta.(EUROPE Report)(Brief Article)
August 1, 2005... Lufthansa Technik Malta will add a second production line by the third quarter of 2006. Effective in July, LHT will raise its share in the JV to 75% from 51% by purchasing 24% from joint venture partner Air Malta. LHT Malta provides C checks...

KLM Engineering & Maintenance.(EUROPE Report)(KLM Engineering & Maintenance)(Hamilton Sundstrand)(Brief Article)
August 1, 2005... KLM Engineering & Maintenance is buying out partner Hamilton Sundstrand's 51% stake in their Schiphol-based joint venture EPCOR, which will become a 100% subsidiary of KLM E&M. The company specializes in maintaining pneumatic aircraft...

Finnair Technical Services and Gemini Air Cargo.(EUROPE Report)(contracts)(Brief Article)
August 1, 2005... Finnair Technical Services and Gemini Air Cargo signed a maintenance support contract covering component and APU maintenance on Gemini's four MD-11Fs for seven years and seven DC-10-30Fs for five years. Contract is valued at in excess of 8...

Adria Airways and Air France Industries.(EUROPE Report)(Brief Article)
August 1, 2005... Adria Airways and Air France Industries announced that Adria will perform maintenance work on Airbus narrow-body aircraft for AFI, including 10 this year.

CTT Systems.(EUROPE Report)(contracts)(Luxair)(Brief Article)
August 1, 2005... CTT Systems received an order from Luxair to install its Zonal Drying System in three 737-700s in 2005-06.

Global ePoint.(EUROPE Report)(Thomas Cook Airlines UK)(contracts)(Brief Article)
August 1, 2005... Global ePoint received an order from Thomas Cook Airlines UK to expand its current Cockpit Door Surveillance System to include digital video recording. Separately, Global ePoint introduced an enhanced version of its AirWorks electronic...

Frankfurt Airport.(EUROPE Report)(Frankfurt CUTE Club)(contracts)(Brief Article)
August 1, 2005... Frankfurt Airport said it will become the world's first airport to operate a shared network of common-use self-service kiosks for all airlines and other partners following an agreement between Frankfurt CUTE Club and SITA beginning this fall.

Slovak government.(EUROPE Report)(securities)(Brief Article)
August 1, 2005... Slovak government plans to sell 66% of its holdings in the country's two international airports at Bratislava and Kosice by year end.

Lockheed Martin.(EUROPE Report)(contracts)(Brief Article)
August 1, 2005... Lockheed Martin reached agreement with Albania to complete the modernization of the country's air traffic management infrastructure, which Lockheed Martin helped to refurbish prior to the 2004 Olympics.

Aviapartner.(EUROPE Report)(alliances and partnerships)(Aigle Azur )(Brief Article)
August 1, 2005... Aviapartner began ground handling French scheduled carrier Aigle Azur in Marseille, Lyon, and Toulouse

OAG and 15below.(EUROPE Report)(alliances and partenerships)(Brief Article)
August 1, 2005... OAG and 15below, an aviation software applications specialist, teamed up last month to offer the PASNGR passenger communications system. It already is live with a number of airlines.

Brazil's Gol.(LATIN AMERICA/CARIBBEAN Report)(planning)(Inversiones y Tecnicas Aeroportuarias)(Brief Article)
August 1, 2005... Brazil's Gol announced plans to establish a low-cost carrier in Mexico in partnership with local entrepreneur Chico Pardo and aviation-related investment company Inversiones y Tecnicas Aeroportuarias. The new carrier, which will follow the Gol...

Cintra.(LATIN AMERICA/CARIBBEAN Report)(Aerolitoral)(AeroMexico)(Brief Article)
August 1, 2005... Cintra this month is expected to identify the qualifying contenders to bid on at least 51% of AeroMexico/Aerolitoral and/or Mexicana, which is being sold together with Click (formerly Aerocaribe). International investors are permitted to...

Varig.(LATIN AMERICA/CARIBBEAN Report)(Reorganization and restructuring)(Varig S.A.)(Brief Article)
August 1, 2005... Varig, which filed for protection from creditors under Brazil's new bankruptcy and restructuring law, must present a reorganization plan by Sept. 12 and then has four months to have the plan approved by at least 51% of its creditors in order to...

Gol.(LATIN AMERICA/CARIBBEAN Report)(buildings and facilities)(Brief Article)
August 1, 2005... Gol said it will build a new 30.5 million reals ($12.8 million) aircraft maintenance center in Confins. Construction begins in July and should be completed by early 2006.

South African Airways.(AFRICA/MIDDLE EAST Report)(Company sales and earnings)(Brief Article)
August 1, 2005... South African Airways reported a net profit of 966 million rand ($140.6 million) for the fiscal year ended March 31, reversing a massive 8.6 billion rand loss in the prior financial year that largely was owing to currency hedges that went badly...

Etihad Airways.(AFRICA/MIDDLE EAST Report)(appointments)(Robert Strodel )(Brief Article)
August 1, 2005... Etihad Airways named Robert Strodel as the Abu Dhabi-based airline's first CEO. Strodel previously was head of cargo and mail for the two-year-old carrier. Prior to that, he worked for Lufthansa and founded Lufthansa Cargo India in 1996,...

Emirates.(AFRICA/MIDDLE EAST Report)(buildings and facilities)(Emirates Airline)(Brief Article)
August 1, 2005... Emirates began construction on a new 6,000-sq.-m. jet engine test facility at a site near Dubai. The facility, which was designed in cooperation with General Electric International, is due for completion in January 2007 and will be capable of...

Mercator.(AFRICA/MIDDLE EAST Report)(Brief Article)
August 1, 2005... Mercator announced that Middle East Airlines signed up for its RAPID revenue accounting solution.

Gulf Air.(AFRICA/MIDDLE EAST Report)(registration)(Brief Article)
August 1, 2005... Gulf Air was placed on the IOSA registry following its successful completion of the IATA Operational Safety Audit on May 5.