Air Transport World articles from March 2004

Air Transport World archives from March 2004

Trends.(airlines, currency exchange rate and fuel prices)(Brief Article)(Illustration)
March 1, 2004... Airline Traffic [GRAPHICS OMITTED] Jet Fuel Prices Spot cash markets (average) Jan. 16, 2004 New York 102.02 US Gulf Coast 99.31 Los Angeles 103.98 Rotterdam 101.51 Singapore ...

Stepping back.(Facts & Figures)
March 1, 2004... The best thing we can say about the European Commission's ruling on Ryanair's subsidy at Charleroi is that it will start the definition of guidelines for airports and airlines to use in constructing future route development deals (see News...

AF/KLM merger approved with slot givebacks.(Brief Article)
March 1, 2004... Marking a historic first step in the consolidation of the European airline industry, the European Commission gave approval Feb. 11 to the planned acquisition by Air France Group of KLM. "The European Commission has authorized the concentration...

EC finds some Ryanair aid illegal.(Brief Article)
March 1, 2004... As expected, the EC ruled in early Feb. that certain financial benefits granted to Ryanair by the Walloon region and Brussels South Charleroi Airport constituted illegal state aid. But the verdict upheld other aspects of the agreements, and the...

BA seeks more savings.(British Airways business plan, forecasts and earnings)(Brief Article)
March 1, 2004... British Airways at the end of Jan. announced a 2004-06 Business Plan targeting 300 million [pounds sterling] ($546.9 million) in new cost savings, including a 30% cut in employee costs in head office and support functions and a 15% reduction in...

American, United agree to cut flights at O'Hare.
March 1, 2004... American Airlines and United Airlines agreed Jan. 21 to reduce flights at Chicago O'Hare by approximately 5% between 1 p.m. and 8 p.m. in an effort to alleviate a recent spike in delays at the airport after the carriers began boosting service...

Aeroflot, SkyTeam near link.(alliances bid)(Brief Article)
March 1, 2004... A SkyTeam steering committee formally confirmed a decision to welcome a bid by Aeroflot to join the alliance contingent upon approval by the Russian government and fulfillment of quality standards required for all members. With 108 destinations...

Four US.(North America report)(United States airlines assets)(Brief Article)
March 1, 2004... Four US airlines reportedly have submitted bids for US Airways' assets, which the carrier may be looking to sell in order to regain financial stability. On Feb. 6, CEO David Siegel confirmed that the carrier retained Morgan Stanley to...

Quote of the month.(North America report)(mergers of airlines)(Brief Article)
March 1, 2004... "The outcome of this case shows that the long awaited consolidation of the European airline sector can be done in full respect of competition rules." --EC Competition Commissioner Mario Monti on the approval of the Air France/KLM merger.

United Airlines.(North America report)(services)(Brief Article)
March 1, 2004... United Airlines is pulling the plug on its long effort to build a viable Latin America hub in Miami in the face of American Airlines' dominant presence there. UA will eliminate daily 767 services flora Miami to both Buenos Aires and San Paulo...

First 777-300ER.(North America report)(Air France contract with International Lease Finance Corp)(Brief Article)
March 1, 2004... First 777-300ER leaves the paint hangar bearing the colors of Air France, which is leasing the GE90-115-powered aircraft from International Lease Finance Corp. with delivery next month.

Ted.(North America report)(airlines unit services)(Brief Article)
March 1, 2004... Ted, United's new low-fare unit, will expand beyond its Denver base to launch service from Washington Dulles, where United has a mostly international hub. By mid-May, Ted will be operating 15 daily flights in leisure markets including Ft....

Delta.(North America report)(Brief Article)
March 1, 2004... Delta said it plans to sell two 777-200s scheduled for delivery in 2005. Three more 777s set to arrive in 2006 will be exchanged tot other Boeing jets or sold to a third party.

JetBlue Airways.(North America report)(sales and revenues)(Brief Article)
March 1, 2004... JetBlue Airways earned $103.9 million last year, up 89.2% over $54.9 million earned in 2002. Revenues climbed 57.2% to $998.4 million and operating expenses jumped 56.5% to $829.5 million, resulting in operating income of $168.8 million, up...

AirTran Airways.(North America report)(profits and revenues )(Brief Article)
March 1, 2004... AirTran Airways posted net income of $100.5 million in 2003, up from $10.7 million in 2002. Revenues jumped 25.2% to $918 million while operating expenses rose 18.3% to $813.7 million. As a result, operating income nearly tripled to $86.3...

Calgary-based WestJet.(North America report)(profits and revenues)(Brief Article)
March 1, 2004... Calgary-based WestJet earned C$60.5 million ($45.6 million) last year, up 16.9% compared to C$51.8 million in 2002. Total revenues rose 26.4% to C$859.6 million while expenses climbed 24.7% to C$740.1 million. Operating income totaled C$119.5...

Jerome "Jerry" Lederer.(North America report)(obituary)(Obituary)
March 1, 2004... Jerome "Jerry" Lederer, who organized the Flight Safety Foundation and whose life spanned the breadth of powered flight, died in Feb. in Laguna Hills, Calif. He was 101. Nicknamed "Mr. Aviation Safety," Lederer helped to improve the...

Air Canada.(North America report)(subsidiary operations)(Brief Article)
March 1, 2004... Air Canada will transfer 20 A319s to its low-fare subsidiary Zip to replace 737-200s. Zip will begin operating the A319s in July and will have retired all of its 737-200s by year end.

Canadian low-fare airline Jetsgo.(North America report)(Brief Article)
March 1, 2004... Canadian low-fare airline Jetsgo will purchase 18 F100s from American Airlines in a move that will more than double its fleet to 32 aircraft.

World Airways.(North America report)(contract)(Brief Article)
March 1, 2004... World Airways reached a tentative agreement with its pilots, represented by the International Brotherhood of Teamsters, for an extension of the current contract. The pact, which became amendable July 1, will be extended three years from Jan. 1,...

Boeing.(North America report)(sales and earnings)(Brief Article)
March 1, 2004... Boeing reported net income of $1.11 billion in the fourth quarter ended Dec. 31, up 88.5% compared to net income of $590 million in the year-earlier period. Operating revenues fell 3.5% to $13.21 billion and earnings from operations decreased...

Boeing has named several 7E7 systems suppliers.(North America report)(supply contracts)(Brief Article)
March 1, 2004... Boeing has named several 7E7 systems suppliers. Hamilton Sundstrand will provide the APU, environmental control system, remote power distribution units and electrical power generating and start systems. Honeywell was selected to provide the...

Pratt & Whitney.(North America report)(contract)(Brief Article)
March 1, 2004... Pratt & Whitney will support IAE V2500s powering United Airlines' A319/A320 fleet under a 10-year Fleet Management contract with an estimated value of $2 billion covering 300 installed and spare engines.

B/E Aerospace.(North America report)(Brief Article)
March 1, 2004... B/E Aerospace said eight airlines selected its Spectrum coach-class passenger seat for 200 aircraft plus options and three airlines chose its Minipod electric lie-flat business-class seat. The deals have a combined value of more than $100...

Sabre and WestJet.(North America report)(Brief Article)
March 1, 2004... Sabre and WestJet signed a five-year agreement under which WestJet will implement the Sabre Resource Management suite. Separately, Sabre said that ATA Airlines renewed its Sabre Passenger Reservation System agreement.

ARINC.(North America report)(Brief Article)
March 1, 2004... ARINC introduced an open standard for boarding passes. The JADE (Java AEA Device Emulation) standard specifies how barcode technology can be used to replace magnetic-stripe boarding passes still widely in use around the world, thereby saving...

ITA Software.(North America report)(Brief Article)
March 1, 2004... ITA Software was selected by Alaska Airlines to enhance the fare search engine on its website.

Airline Automation Inc.(North America report)(Brief Article)
March 1, 2004... Airline Automation Inc.'s Super Dupe Snooper flight firming system was selected by Continental Airlines.

Worldspan and Midwest Airlines.(North America report)(agreement)(Brief Article)
March 1, 2004... Worldspan and Midwest Airlines reached an agreement to integrate Worldspan's e-Pricing technology into Midwest's low-fare search and pricing strategy.

Avexus's Impresa.(North America report)(Brief Article)
March 1, 2004... Avexus's Impresa solution was chosen by Spirit Airlines to manage its in-house airframe maintenance and third-party MRO services at subsidiary Spirit Aviation Services.

JAL Group.(Asia/Pacific report)(Brief Article)
March 1, 2004... JAL Group credited cost-cutting and "aggressive sales promotion activities" for a consolidated net profit of [yen] 3.7 billion ($35.1 million) for the fiscal third quarter ended Dec. 31. Results for the equivalent 2002 period were not supplied....

Japan Air System.(Asia/Pacific report)(Brief Article)
March 1, 2004... Japan Air System was forced to cancel hundreds of flights beginning Jan. 19 after it grounded its fleet of 25 MD-81s and MD-87s to inspect their JT8D-217 engines for damage. The carrier, which will be merged into Japan Airlines System in April,...

ANA Group.(Asia/Pacific report)(Brief Article)
March 1, 2004... ANA Group reported net income of [yen] 6.9 billion ($65.4 million) for the fiscal third quarter ended Dec. 31, its second consecutive quarter of profitable results. Comparable numbers for the year-earlier period were not released. Senior...

Singapore Airlines' A340-500.(Asia/Pacific report)(schedule service)(Brief Article)
March 1, 2004... Singapore Airlines' A340-500 began operating the world's longest nonstop scheduled service, between Singapore and Los Angeles, last month. Aircraft is powered by Rolls-Royce Trent 500s.

Singapore Airlines Group.(Asia/Pacific report)(influence of sars)(Brief Article)
March 1, 2004... Singapore Airlines Group shook off any lingering effects of SARS in its fiscal third quarter to Dec. 31, posting a profit attributable to shareholders of S$377.9 million ($223.4 million), more than double the S$180 million earned in the...

Korean Air.(Asia/Pacific report)(company losses)(Brief Article)
March 1, 2004... Korean Air lost 241.1 billion won ($206.7 million) in 2003 compared to a profit of 453.8 billion won in 2002. It attributed the loss to increased nonoperating expenses, including a foreign exchange loss of 245 million won taken at year end. "We...

Air China.(Asia/Pacific report)(company profits)(Brief Article)
March 1, 2004... Air China announced a net profit of 93 million yuan ($11.3 million) for 2003, according to the official Xinhua News Agency. It lost 1.92 billion yuan during the first six months of the year owing to the SARS outbreak but posted earnings of 2.01...

AirAsia Thai.(Asia/Pacific report)(services)(Brief Article)
March 1, 2004... AirAsia Thai will launch one daily nonstop between Don Muang and Changi airports. The Bangkok-Singapore route marks the international debut of the airline, an affiliate of Kuala Lumpur based AirAsia.

Thai Airways International.(Asia/Pacific report)(budget airlines)(Brief Article)
March 1, 2004... Thai Airways International announced in late Jan. that it will form a budget airline called Sky Asia to meet mounting rivalry from Asian low-cost carriers. Operations are to start in the second quarter.

China Southern Airlines.(Asia/Pacific report)(deliveries of A320-200s, A319-100s and ERJ-145LRs)(Brief Article)
March 1, 2004... China Southern Airlines said its board gave in-principle approval to the acquisition of 15 A320-200s and six A319-100s but stressed that a deal had not been finalized. The board also approved an agreement to acquire six ERJ-145LRs. Deliveries...

KLM.(Europe report)(profit reports)(Brief Article)
March 1, 2004... KLM scratched out an 8 million [euro] ($10.1 million) profit for the fiscal third quarter ended Dec. 31, reversing a loss of 66 million [euro] in the comparable 2002 quarter. President and CEO Leo van Wijk attributed the improvement largely to...

SAS Group.(Europe report)(earnings)(Brief Article)
March 1, 2004... SAS Group posted a massive deficit for all of 2003 of sek1.41 billion ($197.4 million) versus a loss of Sek132 million in the prior year. Excluding capital gains and nonrecurring items, the loss rose to Sek2.2 billion compared with Sek736...

Ryanair.(Europe report)(decrease in profits)(Brief Article)
March 1, 2004... Ryanair reported a 5.1% &crease in net profit to 41 million [euro] ($51.2 million) for the fiscal third quarter ended Dec. 31, down from 43.1 million [euro] earned in the prior-year period. The Irish carrier warned that if yields continue to...

Pakistan International Airlines.(Asia/Pacific report)(purchasing of GE90-powered 777-200ERS)(Brief Article)
March 1, 2004... Pakistan International Airlines recently took delivery of the first of eight GE90-powered 777-200ERS.

Air France.(Europe report)(service introduction)(Brief Article)
March 1, 2004... Air France launched Dedicate, a niche scheduled service designed to meet travel needs of professionals involved in the natural gas and oil industries and construction projects with a fleet of five specially configured A319-100ERs. These are not...

Swiss Federal Prosecutor's office.(Europe report)(Crossair AG)(Brief Article)
March 1, 2004... Swiss Federal Prosecutor's office opened a criminal investigation into the Nov. 24, 2001, crash of a Crossair Avro RJ100 near Zurich that killed 24 of the 33 people onboard, blaming the accident partially on pilot error. A report by the Swiss...

Swiss International Air Lines.(Europe report)(service enhancement)(Brief Article)
March 1, 2004... Swiss International Air Lines in Jan. confirmed that it would resume business-class service on all European flights in mid-Feb. regardless of aircraft type. It previously switched to an all-economy concept on aircraft with 50 seats or fewer and...

Iberia.(Europe report)(service enhancement)(Brief Article)
March 1, 2004... Iberia will adopt a two-class service product on A340 long-haul services, eliminating first class in favor of an enhanced business-class cabin with lie-flat seatbeds, audio-video on demand, satellite phones and text messaging. It will invest...

EC VP Loyola de Palacio.(Europe report)(Palacio, Loyola de)(Brief Article)
March 1, 2004... EC VP Loyola de Palacio said she welcomed the definitive adoption by the Council and European Parliament of new passenger rights legislation to take effect in 2005, replacing rules adopted in 1991. They cover compensation for denied boarding,...

Flying Finn Airways.(Europe report)(filing for bankruptcy)(Brief Article)
March 1, 2004... Flying Finn Airways filed for bankruptcy and suspended all operations Jan. 27. It had operated two MD-83s mainly on domestic low-fare services.

Virgin Express.(Europe report)(lease expiry)(Brief Article)
March 1, 2004... Virgin Express will reduce its fleet flora 13 to 11 aircraft by returning two 737-400s to lessors when leases expire.

Lufthansa Technik.(Europe report)(joint ventures)(Brief Article)
March 1, 2004... Lufthansa Technik took a controlling interest in AirLiance Materials, raising its stake in the spare parts supplier from 41% to just over 50% through an additional equity investment. Other partners in the joint venture are Air Canada and United...

EADS Sogerma Services.(Europe report)(Livingston Aviation Group agreement)(Brief Article)
March 1, 2004... EADS Sogerma Services signed an agreement with Livingston Aviation Group to provide a total support package for its three A330-200s including heavy checks, component MRO and spares support as well as line maintenance at Livingston Aviation...

SR Technics.(Europe report)(acquisitions)(Brief Article)
March 1, 2004... SR Technics announced that it acquired FLS Aerospace, the Danish-owned aircraft maintenance and engineering company, for an undisclosed sum. The purchase is being supported by SR Technics' majority owners, 3i Group and Star Capital. SR Technics...

Varig and TAM.(Latin America/Caribbean report)(mergers plans cancelled)(Brief Article)
March 1, 2004... Varig and TAM have backed away from plans to merge or create a closely integrated alliance and instead are asking the government to extend their domestic codesharing agreement for two more years under a separate joint organization to manage the...

Mexicana.(Latin America/Caribbean report)(Brief Article)
March 1, 2004... Mexicana signed codesharing and frequent-flier program reciprocity agreements with oneworld members American Airlines and Iberia from April 1. Mexicana's seven-year codeshare with United Airlines expired Dec. 31 and was not renewed and the...

Avianca.(Latin America/Caribbean report)(restructuring plan)(Brief Article)
March 1, 2004... Avianca was granted an extension until March 8 to present its restructuring plan to the US Bankruptcy Court. Through its US-based affiliate the airline was granted Chapter 11 status early last year.

Varig Engineering and Maintenance.(Latin America/Caribbean report)(contract)(Brief Article)
March 1, 2004... Varig Engineering and Maintenance was appointed as a Honeywell Authorized Avionics Repair Center. VEM is working with Honeywell to install new avionics shop capabilities, including components for 737NG family aircraft and new Airbus models.

TDG Aerospace's Nofod Clear Ice Prevention System.(Latin America/Caribbean report)(purchasing by AeroMexico )(Brief Article)
March 1, 2004... TDG Aerospace's Nofod Clear Ice Prevention System was purchased by AeroMexico for its MD-80 fleet.

Arkia Israeli Airlines.(Africa/Middle East report)(Knafaim-Arkia Holdings takeovers)(Brief Article)
March 1, 2004... Arkia Israeli Airlines parent Knafaim-Arkia Holdings denied a report last month that it is seeking foreign investors to participate in a takeover of El Al. At the same time, the company didn't rule out such a scenario. It holds just under 5% of...

Embraer 190.(Europe report)(contract rolled back)(Brief Article)
March 1, 2004... 100-set regional jet was rolled out of Embrear's facility at Sao Jose Dos Campos on Feb. 9. Firm order book for the GE CF34-10E-powered jet stands at 110.

A Kish Air F50.(Africa/Middle East report)(accidents and injuries)(Brief Article)
March 1, 2004... A Kish Air F50 crashed Feb. 10 about 2 mi. from Sharjah Airport in the United Arab Emirates, killing 43 of the 46 persons onboard. The flight was en route to Sharjah from the Iranian island of IGsh and was carrying mostly foreign workers...

Ethiopian Airlines'.(Africa/Middle East report)(Ato Gima Wake appointed as chief executive officer)(Brief Article)
March 1, 2004... Ethiopian Airlines' board of management appointed Ato Gima Wake as the airline's new CEO effective Feb. 1, replacing Ato Bisrat Nigatu, CEO since 1997 and a 30-year veteran of the airline, whose retirement was announced in Dec.

Emirates Group's IT.(Africa/Middle East report)(check-in Reservation System and Airport Control System )(Brief Article)
March 1, 2004... Emirates Group's IT division will implement the twin reservations and check-in systems Mercator Airline Reservation System and Mercator Airport Control System at Kuwait Airways.

ARINC.(Africa/Middle East report)(contract of Murtala Muhammad International Airport)(Brief Article)
March 1, 2004... ARINC deployed its MUSE Link wide-area network service for Murtala Muhammad International Airport in Lagos.

Qatar.(Africa/Middle East report)(contract)(Brief Article)
March 1, 2004... Qatar awarded a $2.5 billion contract to US construction firm Bechtel to design and build the first phase of its new international airport. Construction begins in 2005 on a site near the existing airport.

Atlas Air Worldwide Holdings.(Cargo)(Brief Article)
March 1, 2004... Atlas Air Worldwide Holdings and its Atlas Air and Polar Air Cargo subsidiaries filed for Chapter 11 bankruptcy protection Jan. 30. The more had been expected. The company said that in conjunction with its filing it arranged commitments for $50...

Lufthansa Cargo and Brussels-based DHL.(Cargo)(signed off contract)(Brief Article)
March 1, 2004... Lufthansa Cargo and Brussels-based DHL signed off on a 250 [euro] million ($321.5 million) strategic joint venture to grow their existing relationship. The five-year pact includes shared capacity on 4-5 flights a week over five dedicated...

Arrow Air Holdings Corp.(Cargo)(planning investments)(Brief Article)
March 1, 2004... Arrow Air Holdings Corp. filed for Chapter 11 bankruptcy protection Jan. 29. The company said Arrow Air intends to continue its operations as a scheduled air cargo carrier while negotiations with several financial groups considering an...

AAR.(Cargo)(contract)(Brief Article)
March 1, 2004... AAR signed an agreement with Goodrich Cargo Systems to supply five cargo mechanical systems for Goodrich Powered Cargo Loading Systems on LH Cargo MD-11s.

Nippon Cargo Airlines.(Equipment)(orders for airlines)(Brief Article)
March 1, 2004... Nippon Cargo Airlines ordered three 747-400Fs with a value of $600 million at list prices. Deliveries begin in early 2005 and end in 2006.

Ryanair.(Equipment)(Brief Article)
March 1, 2004... Ryanair ordered two additional 737-800s that Boeing said were included in its 2003 order book.

Air Tahiti Nui.(Equipment)(Brief Article)
March 1, 2004... Air Tahiti Nui signed a firm contract with Airbus for another CFM56-5C/P-powered A340-300 for delivery in June 2005.

Southwest Airlines.(Equipment)(contract)(Brief Article)
March 1, 2004... Southwest Airlines selected CAE for a 737-700 full-flight simulator and related flight training devices valued at C$25 million ($19 million).

Air France.(Equipment)(contract)(Brief Article)
March 1, 2004... Air France selected Evans & Sutherland's EP-1000CT visual system to upgrade one of its A320 simulators.

AMR Corp.(Leasing & Finance briefs)(convertible stocks)(Brief Article)
March 1, 2004... AMR Corp., parent of American Airlines, priced a public offering of $300 million aggregate principal amount of 4.5% senior convertible notes due 2024. Proceeds will be used for general corporate purposes. Notes will be convertible into AMR...

KLM and SLM Surinam Airways.(Leasing & Finance briefs)(contract)(Brief Article)
March 1, 2004... KLM and SLM Surinam Airways signed a contract for the sale of a KLM 747-300 to SLM. A separate contract was signed under which KLM Maintenance & Engineering will continue to maintain the aircraft.

Thomas Cook.(Leasing & Finance briefs)(Brief Article)
March 1, 2004... Thomas Cook AG sold 12 ex-Condor 757-200s under undisclosed terms to a Moscow financing company. Center-Capital will take delivery of the aircraft gradually through Oct. for transfer to a Russian startup carrier, VIM Avia.

GE Capital Aviation Services.(Leasing & Finance briefs)(equipment contract )(Brief Article)
March 1, 2004... GE Capital Aviation Services leased two new 737-800s to Shanghai Airlines and will lease the carrier two CRJ200s with deliveries in June and Dec.

BAE Systems Regional Aircraft.(Leasing & Finance briefs)(contract)(Brief Article)
March 1, 2004... BAE Systems Regional Aircraft signed a lease extension program for five BAe 146s with Eurowings.

Role of Regionals likely to expand.(Regional News)(planning)(Brief Article)
March 1, 2004... Last year was one of transition for Regional airlines, according to James Parker, MD at Raymond Jones & Associates. "The dynamics of the Regional airline business are different this time around," he observed. "The legacy carriers cut the...

Mesa to take 20 additional RJs.(Regional News)(purchasing CRJ700/900 aircrafts)(Brief Article)
March 1, 2004... Mesa Air Group exercised options to acquire 20 additional CRJ700s/900s for delivery through 2005 that will be used to cover contractual commitments to United Airlines and America West Airlines. "Our growth plan continues to move forward on...

US Airways plans consolidation of some Regional operations.(Regional News)(mergers)
March 1, 2004... US Airways will combine two of its wholly owned Regional airlines, Allegheny and Piedmont, by the end of March. The decision to merge the two, both of which operate turboprops, came on the heels of the cash-strapped Major's saying it is...

Great Plains Airlines.(Notes)(bankruptcy protection)(Brief Article)
March 1, 2004... Great Plains Airlines suspended scheduled services last month and filed for Chapter 11 bankruptcy protection. The tiny Tulsa-based Regional operated four 328JETs and 328s. It said its charter services will continue.