Air Transport World articles from May 2002

Air Transport World archives from May 2002

Jet fuel prices. (Trends).(international prices, statistics)(Brief Article)(Statistical Data Included)
May 1, 2002... Jet Fuel Prices Spot cash markets (average) cents per gallon Oct. 66.14 Nov. 56.58 Dec. 50.92 Jan. 53.86 Feb. 57.35 Mar. 64.72 Source: US Dept. of Energy Note: Table made from...

Two's company, three's a crowd. (Editorial).(Fairchild Dornier, insolvency)(Brief Article)
May 1, 2002... Perry Flint The insolvency filing by Fairchild Dornier last month--less than two weeks after it premiered its 728--reinforces once again the fact that commercial aerospace is a highstakes, high-risk business that leaves little room for...

SAS restructures for profit. (News Briefs).(Scandinavian Airlines System; comprehensive measures to improve profits)(Brief Article)
May 1, 2002... Faced with the need to improve profitability by up to Sek4 billion ($390 million), SAS unveiled a series of sweeping measures affecting network and scheduling and also announced it will move to a single-class service product on routes in its...

Alitalia-AF alliance includes cross-equity. (News Briefs).(Alitalia Group and Air France)(Brief Article)(Statistical Data Included)
May 1, 2002... Alitalia Group and Air France are to rake stakes in one another totaling up to 3% in order to strengthen their still-evolving alliance. Also, both agreed to representation during each other's board meetings. They have established joint working...

IATA sees $6 billion loss in 2002. (News Briefs).(International Air Transport Association; world airline industry forecast)(Brief Article)
May 1, 2002... The world's airlines are expected to lose $6 billion from scheduled international operations in 2002 under the middle-ease scenario outlined by IATA Chief Economist Peter Morris at the IATA Airline Financial Summit in New York last month. He...

Swissair says goodbye; swiss ties knot with AA. (News Briefs).(Swiss Air Lines-American Airlines partnership; Swissair terminates operations)(Brief Article)
May 1, 2002... Swissair officially disappeared with the launch of new carrier Swissair effective March 31. A large black banner on the failed airline's web-site read simply "Goodbye" and thanked customers for their support during the past 71 years. ...

JAL-JAS merger faces regulatory hurdles. (News Briefs).(Japan Airlines, Japan Air System; merger plan)(Brief Article)
May 1, 2002... Japan's Fair Trade Commission advised Japan Airlines and Japan Air System that they will have to modify their merger plan because as structured it probably will violate the Anti-Monopoly Law. The FTC preliminary review expressed concern that...

American Airlines. (North America Report).(Gerard Arpey, new president and chief operating officer)(Brief Article)
May 1, 2002... American Airlines rapped Gerard Arpey as president and COO, giving him responsibility for most of the operating units of the airline and purring him first in line to succeed Chairman and CEO Don Carty, who remains at the helm of parent AMR...

Delta Air Lines. (North America Report).(financial losses, first-quarter ending March 31, 2002)(Brief Article)
May 1, 2002... Delta Air Lines reported a loss to common shareholders of $401 million for the first quarter ended March 31, up from a loss of $136 million in the year-ago period, and said that it does not expect to show a monthly net profit until the second...

Continental Airlines. (North America Report).(financial results, 2002 first-quarter)(Brief Article)
May 1, 2002... Continental Airlines reported a first-quarter loss of $166 million compared to income of $9 million in the year-ago period. Current results are net of an $83 million pre-tax charge ($52 million after tax) related to the retirement of the...

US Airways. (North America Report).(to sell 97 aircraft in effort to reduce capacity)(Brief Article)
May 1, 2002... US Airways entered into agreements to sell 97 aircraft as part of a previously announced plan to shed capacity and enhance the commonality of its fleet. The agreements, which include spares, cover 55 737-200s, 26 DC-9s and 16 MD-80s and will...

DOT. (North America Report).(BMI British Midland-United Airlines code sharing deal; antitrust immunity)(Brief Article)
May 1, 2002... DOT in early April granted antitrust immunity to the proposed transadantic codesharing alliance between bmi british midland and United Airlines, but conditioned it on the US and UK reaching agreement on an open skies bilateral within the next...

Northwest Airlines. (North America Report).(pilots, labor contract)(Brief Article)
May 1, 2002... Northwest Airlines pilots, represented by the Air Line Pilots Assn., will offer the carrier a one-year extension to their existing contract, which becomes amendable Sept. 13.

Hawaiian Airlines and Aloha Airlines. (North America Report).(collapse of proposed merger)(Brief Article)
May 1, 2002... Hawaiian Airlines' and Aloha Airlines' planned merger collapsed in late March after HAL proposed changing the terms of the agreement to eliminate participation by Turnworks and its chairman, former Continental Airlines COO Greg Brenneman, Aloha...

America West Airlines. (North America Report).(fare structure, recall of flight attendants and pilots)(Brief Article)
May 1, 2002... America West Airlines made broad changes to its fare structure including reducing the number of fare categories, lowering unrestricted one-way fares and eliminating the Saturday night stayover requirement intended to keep business travelers...

United Airlines. (North America Report).(terminates Avolar business jet unit)(Brief Article)(Statistical Data Included)
May 1, 2002... United Airlines shut down its Avolar fractional business jet unit, stating that the economic downturn and post-Sept. 11 drop in demand made it unprofitable. The March 22 action followed UAL's announcement that it would not sell control of...

Air Canada and Spanair. (North America Report).(partnership)(Brief Article)
May 1, 2002... Air Canada and Spanair are forming a partnership that includes reciprocal frequent-flier programs, schedule coordination and, subject to government okay, codesharing. Separately, AC said it named Montie Brewer, formerly senior VP-planning...

WestJet. (North America Report).(new flight services, Canada)(Brief Article)
May 1, 2002... WestJet will challenge Air Canada in its home market beginning May 23 when it introduces service from Calgary and Edmonton to Toronto, offering 13 flights per week in each city-pair.

Sun Country Airlines. (North America Report).(Brief Article)
May 1, 2002... Sun Country Airlines came under new ownership April 15 after a bankruptcy judge cleared the way fur its sale by approving assignment of the carrier's four aircraft leases to new owner MN Airlines. "Today we are a new company with the benefit of...

John Robson. (North America Report).(Brief Article)
May 1, 2002... John Robson, who initiated airline deregulation as chairman of the Civil Aeronautics Board, died in late March of cancer. The 71-year-old president and chairman of the Export-Import Bank was appointed to the CAB by President Gerald Ford. Robson...

US majors traffic. (News Briefs).(Brief Article)
May 1, 2002... US Majors Traffic March 2002 Load RPMs % chg. ASMs % chg. factor (billions) 2001 (billions) 2001 (%) ...

GE Aircraft Engines. (North America Report).(Brief Article)
May 1, 2002... GE Aircraft Engines is offering two variants of its CF680C2 to power Boeing's proposed 747-400QLR, which was unveiled at the Singapore Air Show last Feb. Certification of the variants is slated for early 2004, ahead of the proposed aircraft's...

Goodrich. (North America Report).(Brief Article)
May 1, 2002... Goodrich was selected by Airbus to provide cockpit door video surveillance systems for its production aircraft. The systems will provide real-time video monitoring of the cockpit door entry and forward galley areas to flight crews, Goodrich...

All Nippon Airways. (Asia/Pacific Report).(Brief Article)
May 1, 2002... All Nippon Airways said a faster-than-expected recovery in international business travel meant it would report better results for the just-ended fiscal year than anticipated last Nov. ANA now expects a consolidated net loss of [yen]8.5 billion...

China Southern Airlines. (Asia/Pacific Report).(Brief Article)
May 1, 2002... China Southern Airlines posted a 2001 profit attributable to shareholders of 340.2 million yuan ($41.1 million), down 32% versus a year earlier, as it boosted its aircraft utilization and controlled costs. Operating revenue climbed 11% to 16.88...

Australian Airlines. (Asia/Pacific Report).(Brief Article)
May 1, 2002... Australian Airlines will begin flying Oct. 27 with four 767-300s, Qantas CEO Geoff Dixon said April 2 after the new carrier earned a green light by "achieving a satisfactory cost structure" and finishing talks with unions regarding wages,...

Virgin Blue. (Asia/Pacific Report).(Brief Article)
May 1, 2002... Virgin Blue's long-awaited expansion plans in Australia took wing with a bid for as many as 40 ex-Ansett aircraft and terminals in Brisbane, Melbourne, Canberra and Hobart. Missing from the proffer were the key Sydney terminal, the subject of a...

SIA Engineering Co. (Asia/Pacific Report).(Brief Article)
May 1, 2002... SIA Engineering Co., a division of Singapore Airlines, signed an MOU to buy a 25% stake in Guangzhou Aircraft Maintenance Engineering Co. from Lockheed Martin Aeronautics Service International. Details of the deal are still to be finalized. The...

An Air China. (Asia/Pacific Report).(Brief Article)
May 1, 2002... An Air China 767-200ER carrying 167 passengers and crew crashed into a hillside in South Korea April 15, killing at least 126 people. Thirty-eight survived and two are listed as missing. Flight 129 was en route from Beijing to Pusan's Kimhae...

China Airlines. (Asia/Pacific Report).(Brief Article)
May 1, 2002... China Airlines named Philip Wei Hsing-hsiung, who has been with the company 30 years, to succeed Christine Tsung as president and CEO. Tsung left the carrier after little more than a year to become Taiwan's minister of economic affairs, a post...

China Eastern. (Asia/Pacific Report).(Brief Article)
May 1, 2002... China Eastern said it will buy a stake in Wuhan Airlines. It did not provide derails of the size or price of the stake, but Shanghai Daily reported that officials have indicated it will acquire a 40% interest worth about $36.2 million. Wuhan is...

Indian Airlines' board. (Asia/Pacific Report).(Brief Article)
May 1, 2002... Indian Airlines' board approved a 42-aircraft, $2.1 billion order for A320 family aircraft, reportedly powered by CFM56 engines. Indian currently operates 30 A320s powered by V2500s. The new order still must be confirmed by the Indian...

India's Air Sahara. (Asia/Pacific Report).(Brief Article)
May 1, 2002... India's Air Sahara unveiled a $60 million expansion plan that includes leasing three 737-700s to replace 737-400s and 12 CRJs for expansion.

Lufthansa. (Europe Report).(Germania Airlines, predatory behavior)(Brief Article)
May 1, 2002... Lufthansa reacted bitterly to a preliminary appeals court ruling in April that upheld a Federal Cartel Office finding that LH was engaged in predatory behavior against tiny Germania Airlines on the lucrative Frankfurt-Berlin trunk route when LH...

Iberia. (Europe Report).(first-quarter results)
May 1, 2002... Iberia said it cut its first-quarter pre-tax loss to only [euro]10 million ($8.8 million) from [euro]98.9 million a year ago owing in large part to a strong March in which it posted a pre-rax profit of [euro]30 million compared to only...

Bmi British midland. (Europe Report).(overhauls domestic fares)(Brief Article)
May 1, 2002... Bmi british midland followed British Airways by announcing a major overhaul of its domestic fares on flights to and from London Heathrow. Bmi removed Saturday-night and minimum-stay requirements and will allow name changes to tickets to be made...

LOT Polish Airlines. (Europe Report).(signs code-share agreement with Deutsche Lufthansa)(Brief Article)
May 1, 2002... LOT Polish Airlines and Lufthansa signed an MOU April 5 in Warsaw initiating the procedure for LOT to join the Star Alliance. The airlines also signed a code-share accord to operate all routes between Poland and Germany jointly effective June...

British Airways. (Europe Report).(revamps fare structure, route network, brand)(Brief Article)
May 1, 2002... British Airways' chronically unprofitable German subsidiary Deutsche BA is revamping its fare structure and route network to concentrate on offering lower fares with emphasis on the internal German market. The airline's brand will be shortened...

Air France. (Europe Report).(will end hiring freeze)(Brief Article)
May 1, 2002... Air France, one of the only European airlines not to pursue substantial furloughs following Sept. 11, said it also will end the hiring freeze it put into place last fall. The freeze resulted in a reduction of about 2,000 jobs between the end of...

Virgin Express. (Europe Report).(net profit for 2001)(Brief Article)
May 1, 2002... Virgin Express said it posted a net profit of [euro]130,000 ($114,000) for 2001 versus a [euro]65.2 million loss in 2000. Revenues dropped 27% to [euro]212.1 million and operating expenses plummeted 40% to [euro]210.6 million for an operating...

LTU plans. (Europe Report).(Brief Article)
May 1, 2002... LTU plans to reduce overall capacity 20% as part of a gradual transition to an all-Airbus fleet of A320-family and A330 jets by the end of 2003, producing estimated annual savings of [euro]48 million ($42.2 million). At that time it will...

THY Turkish Airlines. (Europe Report).(reports earnings of $6.1 million in 2001)(Brief Article)
May 1, 2002... THY Turkish Airlines reported that it generated earnings of 8.1 billion lira ($6.1 million) in 2001 in a sharp comeback after posting a loss of 69.5 billion lira in 2000. Restructuring has included thinning out the fleet and reducing salaries...

JAT. (Europe Report).(Brief Article)
May 1, 2002... JAT General Director Predrag Vujovic said that the Yugoslav airline will cut 550 jobs plus an additional 240 via retirement and other attrition schemes as part of a 2002 business plan to revive the carrier. The cuts amount to about 11% of the...

The French government. (Europe Report).(Brief Article)
May 1, 2002... The French government will provide Airbus with a $1.07 billion repayable loan to help support A380 development.

UK awarded 11 British airlines. (Europe Report).(Brief Article)
May 1, 2002... UK awarded 11 British airlines [pounds sterling]40 million ($57.7 million) in compensation for the closure of US airspace for four days after the Sept. 11 terrorist attacks. British Airways received [pounds sterling]22 million.

European transport ministers. (Europe Report).(Brief Article)
May 1, 2002... European transport ministers agreed that governments from its 15 member states will continue to insure their airlines against the risk of terrorist attacks until May 31.

KLM. (Europe Report).(Brief Article)
May 1, 2002... KLM, which last fall cancelled a preliminary agreement to form a "nose-to-tail" MRO alliance with Pratt & Whitney parent United Technologies Corp., entered into a "customized service agreement" in March with GE Engine Services relating to CF6s...

Rolls-Royce. (Europe Report).(Brief Article)
May 1, 2002... Rolls-Royce received a $350 million total care contract from Cathay Pacific for maintenance of the Trent 700s on the carrier's 20 A330s.

LSG Sky Chefs Europa/Afrika. (Europe Report).(Brief Article)
May 1, 2002... LSG Sky Chefs Europa/Afrika, a unit of LSG Lufthansa Service Holding AG, was selected by Belgian receivers to acquire the assets of Sabena Catering. Final takeover is projected to be effective June 1.

MTU Maintenance Hannover. (Europe Report).(Brief Article)
May 1, 2002... MTU Maintenance Hannover and HeavyLift Cargo Airlines signed a five-year MRO contract covering the carrier's CF6-50C2 engines powering its four A300B4s.

EADS Aeroframe Services. (Europe Report).(Brief Article)
May 1, 2002... EADS Aeroframe Services signed a five-year contract with JetBlue Airways to perform all letter checks on the airline's A320 fleet.

SITA. (Europe Report).(Brief Article)
May 1, 2002... SITA launched the aero domain name for aviation companies on the Internet. Separately, SITA announced a contract with Lufthansa for worldwide provision of essential voice and Internet Protocol networking, air-ground communications and...

Messier-Bugatti. (Europe Report).(Brief Article)
May 1, 2002... Messier-Bugatti consolidated Labinal's aircraft business, creating a new Equipment Div. headed by Jacques Mignot, who retains his positions as chairman and CEO of Technofan and Sofrance.

European airline traffic. (News Briefs).(Brief Article)
May 1, 2002... European Airline Traffic March 2002 Load RPKs % chg. ASKs % chg. factor +/- (billions) 2001 (billions) 2001 (%) 2001 AF ...

Latin America. (Latin America Report).(Brief Article)
May 1, 2002... Latin America may see 10% of its airlines disappear this year as the aftermath of Sept. l1 has worsened the deterioration in the region that began in 1999, according to data provided by IATA Regional Director Patricio Sepulveda. Latin carriers...

Cintra's shareholders. (Latin America Report).(Brief Article)
May 1, 2002... Cintra's shareholders approved a corporate restructuring program intended to lead to the eventual separation of AeroMexico and Mexicana, both owned by the holding company. As a first step, Cintra is to become the holding company of two...

Infraero. (Latin America Report).(Brief Article)
May 1, 2002... Infraero, the airport body in Brazil, and the state of Sao Paulo signed an agreement for construction of a high-speed train link between the capital city and Sao Paulo-Guarulhos International Airport, the top international airport in Brazil.

El Al. (Africa/Middle East Report).(Brief Article)
May 1, 2002... El Al achieved a positive cash flow of $14.8 million and narrowed its losses to $85.2 million in 2001 from $109.4 million in 2000 despite the recession and the ongoing Palestinian uprising that caused a 46% drop in incoming tourism. Annual...

Deliberate actions. (Africa/Middle East Report).(Brief Article)
May 1, 2002... Deliberate actions by relief first officer Gameel el-Batouty caused the crash of EgyptAir Flight 990, US NTSB ruled in its finding of probable cause for the Oct, 31, 1999, accident. A total of 217 people died when the 767-300ER plummeted into...

Tunisair. (Africa/Middle East Report).(Brief Article)
May 1, 2002... Tunisair lost $35.6 million in 2001, widening 55% compared to the prior year when it posted irs first loss in 60 years. The carrier attributed the loss to the economic slowdown, the Sept. 11 attacks and a hike in insurance premiums.

ARINC. (Africa/Middle East Report).(Brief Article)
May 1, 2002... ARINC said it has become an indusny partner with the Arab Air Carriers Organization and will dedicate new sales and support staff to offices in Beirut, Jeddah and Cairo.

FedEx Corp. (Cargo).(Brief Article)
May 1, 2002... FedEx Corp. earned $120 million in the fiscal third quarter ended Feb. 28, up 11% from $108 million during the same period in 2001, as a strong performance from its ground operations and cost-cutting measures helped offset a slight slump at its...

FedEx Pilots Assn. (Cargo).(Brief Article)
May 1, 2002... FedEx Pilots Assn. members voted overwhelmingly to merge their union with the Air Line Pilots Assn., clearing the way for the unions to combine on June 1 subject to approval by ALPA's executive board.

UPS. (Cargo).(Brief Article)
May 1, 2002... UPS opened its intra-Asia hub in the Philippines, which it says allows faster delivery of goods within and out of Asia. The 23,000-sq.-ft. hub is located at the former Clark AFB and provides a central sorting point within 4 hr. of all major...

Atlas Air. (Cargo).(Brief Article)
May 1, 2002... Atlas Air said it will furlough 40 flight crew--about 4% of its workforce--as of May 1 and may furlough as many as 170 eventually because demand for heavy-lift cargo services continues to slump.

KLM. (Equipment).(Brief Article)
May 1, 2002... KLM ordered eight 777-200ERs and three 747-400ER freighters to replace 12 747-300s. The first 777-200ER arrives in late 2003 and the last 747-300 will be phased out before 2005. Engine selection was not announced but KLM operates an all GE/CFM...

Swiss. (Equipment).(Brief Article)
May 1, 2002... Swiss said it will order 13 A340-300s to replace its MD-11s. Deliveries will run from June 2003 to July 2004.

China Eastern Airlines. (Equipment).(Brief Article)
May 1, 2002... China Eastern Airlines ordered 20 A320s worth $800 million with deliveries starting in early 2003. Aircraft will be powered by CFM56-5Bs valued at about $200 million.

Midwest Express. (Equipment).(Brief Article)
May 1, 2002... Midwest Express upped its previously announced deal for 20 717s to 25 in a firm order that the carrier said is worth $940 million. It also placed options for another 25. Rolls-Royce valued the incremental order for BR715s at about $40 million.

Kenya Airways. (Equipment).(Brief Article)
May 1, 2002... Kenya Airways ordered three 777-200ERs with deliveries beginning in 2004.

Frontier Airlines. (Equipment).(Brief Article)
May 1, 2002... Frontier Airlines ordered five A318s powered by CFM56s and placed options for five more instead of buying the same number of aircraft with PW6000 engines, which have been troubled with fuel performance shortfalls. Four of the CFM56-powered...

JetBlue Airways. (Leasing & Finance Briefs).(Brief Article)(Statistical Data Included)
May 1, 2002... JetBlue Airways raised $158.4 million through an initial public offering of 5.9 million shares at $27 per share.

Volare Airlines. (Leasing & Finance Briefs).(Brief Article)
May 1, 2002... Volare Airlines leased four used A330-200s and a new A330-200 from ILFC for 10 years. The aircraft are powered by CF6-80EIs. The used aircraft are scheduled for delivery this year and the new one in Nov. 2004. Air Holland committed to lease a...

Qantas. (Leasing & Finance Briefs).(Brief Article)
May 1, 2002... Qantas is to add six ex-TWA 717s in a leasing deal with Pembroke Capital. Aircraft will be part of the QantasLink fleet.

British Mediterranean Airways. (Leasing & Finance Briefs).(Brief Article)
May 1, 2002... British Mediterranean Airways, a franchise partner of British Airways, acquired two A321-200s from debis Air Finance under 10-year operating leases.

Singapore Airlines. (Leasing & Finance Briefs).(Brief Article)
May 1, 2002... Singapore Airlines conducted a 10-year sale/leaseback with Amsterdam-based lessor IEM Airfinance covering a 747-400 and a 777-200ER.

Fairchild Dornier on brink of shutdown. (Regional News).(Brief Article)
May 1, 2002... The Regional airline industry is facing the loss of another manufacturer. Fairchild Dornier announced on April 2 that it had filed for insolvency in Germany and that a court-appointed administrator is working to secure new investors in hopes of...

American Airlines. (Notes).(Backed away from plans to sell its American Eagle Caribbean operation)(Brief Article)
May 1, 2002... American Airlines backed away from plans to sell its American Eagle Caribbean operation, a step it had been contemplating in order to comply with a provision in its mainline pilot contract that ties the size of its Regional code-share partners...

Augsburg Airways. (Notes).(Undergoing radical restructuring)(Brief Article)(Statistical Data Included)
May 1, 2002... Augsburg Airways, a Team Lufthansa Regional partner, is undergoing radical restructuring after suffering unspecified severe losses last year. Initially that will mean severance for 144 of the carrier's 560 employees, including 56 in flight...

Atlantic Southeast Airlines. (Notes).(Reached a final agreement with the Assn. of Flight Attendants)(Brief Article)
May 1, 2002... Atlantic Southeast Airlines, a wholly owned Delta Air Lines subsidiary, reached a final agreement with the Assn. of Flight Attendants on a one-year contract extension for its 620 flight attendants. AFA said 71.6% of those voting cast ballots in...

Malev. (Notes).(Brief Article)
May 1, 2002... Malev placed a firm order with Bombardier for two CRJ200ERs. The Hungarian flag carrier also took options on another six CRJs. It plans to use the 50-seat jets to feed its hub in Budapest as well as its KLM/Northwest code-sharing partners.

Shuttle America. (Notes).(Brief Article)
May 1, 2002... Shuttle America, which operates for US Airways, reached a lease agreement on 18 Saab 340As. The 33-seat Saabs will be used to replace the airline's fleet of Dash 8s and expand service in the Northeast. Shuttle America has accepted delivery of...

Scan Con Airways. (Notes).(Brief Article)
May 1, 2002... Scan Con Airways, based in Denmark, added a Saab 340 to its fleet. The carrier also operates Shorts 360s and Bandeirantes in its domestic network.

Experience and excellence. (Publisher's Comment).(Brief Article)
May 1, 2002... When people talk about the core competency of an organization, in effect they are talking about its people and the value they bring to the equation. The world of publishing is no exception. Indeed, in publishing it is magnified given that...