Air Transport World articles from May 2003

Air Transport World archives from May 2003

Trends.(assorted data on the airline industry)(Illustration)
May 1, 2003... Jet Fuel Prices Spot cash markets (average) Mar. 21, 2003 New York 87.74 US Gulf Coast 79.19 Los Angeles 91.70 Rotterdam 99.18 Singapore 77.82 cents per gallon Oct. 82.02 Nov. 69.45...

Disaster is contagious. (Editorial).(Editorial)
May 1, 2003... What an extraordinary time to be in the airline business! Ten weeks ago, industry attention was focused on the coming war in Iraq and its anticipated effect on airlines; only a small number of medical professionals were even aware of what is...

Epidemic eviscerates Asian traffic. (News Briefs).
May 1, 2003... The emergence of a mysterious new pneumonia-like disease in early March dealt a double blow to airlines already confronting rising fuel costs and significant traffic declines associated with the US/UK-led war in Iraq (see Editorial, p. 5 and...

Concorde to be grounded. (News Briefs).
May 1, 2003... Air France and British Airways will close the door on the era of supersonic airline travel this year. AF will suspend its Concorde flights beginning May 31 while BA will stop operating the aircraft at the end of Oct. Both carriers said the...

US airlines get state aid on security, insurance. (News Briefs).(Brief Article)
May 1, 2003... Congress approved $3.5 billion in aid for US airlines including approximately $2.2 billion in cash as reimbursement for security fees and cockpit door installations. The measure was expected to be signed by the President as part of a...

Air Canada seeks protection from creditors. (News Briefs).(Brief Article)
May 1, 2003... Declaring that "the business model is broken and it must be fixed without burning any more furniture," Air Canada President and CEO Robert Milton took the airline into bankruptcy April 1 under Canada's Companies' Creditors Arrangement Act,...

United labor groups agree to concessions. (News Briefs).(Brief Article)
May 1, 2003... United Airlines reached consensual agreements with all of its organized workgroups by April 15 on labor savings that in conjunction with pay and benefit reductions imposed on salaried and clerical workers and senior executives will result in...

AA expected to dodge bankruptcy. (News Briefs).
May 1, 2003... American Airlines was expected to withdraw plans to file for Chapter ii bankruptcy reorganization in the near term after it delayed its filing in order to give the Assn. of Professional Flight Attendants an opportunity to conduct a fast second...

DHL buys Airborne units. (News Briefs).(Brief Article)
May 1, 2003... DHL will acquire all of Airborne's operations except ABX Air, its airline unit, at a price of $21.25 per share for a total of approximately $1.05 billion under a definitive merger agreement reached by the two companies March 25. "The...

US Airways Group. (North America Report).(emerges from Chapter 11)(Brief Article)
May 1, 2003... US Airways Group emerged from Chapter 11 bankruptcy protection on schedule March 31 with $1.24 billion in fresh liquidity, including a $240 million equity investment from Retirement Systems of Alabama and a $1 billion loan-$900 million of which...

United. (North America Report).(can go froward with Low Cost Operation after agreement with pilots union)(Brief Article)
May 1, 2003... United's new agreement with its pilots union permits the carrier to go forward with its proposed Low Cost Operation and places no hard limits on the number of aircraft that may be operated under the LCO agreement. According to the pact, a copy...

Delta Air Line. (North America Report).(downsizing)(Brief Article)
May 1, 2003... Delta Air Lines said it would cut its network capacity by approximately 12% and postpone some planned new services in response to "declining passenger demand" owing to military action in Iraq. However, a company spokesperson said no decision...

Continental Airlines. (North America Report).(downsizing)(Brief Article)
May 1, 2003... Continental Airlines trimmed its planned summer capacity by 2% and may lay off additional employees beyond the 1,200 announced in mid-March in response to the current situation. The airline announced on March 19 a series of measures designed to...

Northwest Airlines. (North America Report).(capacity reduction)(Brief Article)
May 1, 2003... Northwest Airlines implemented a 12% seat capacity reduction beginning last month and announced it will reduce staff by 4,900, with all employee groups affected. Because of the capacity reductions, Northwest estimated it will remove...

US Dept. of Transportation. (North America Report).(Delta Air Lines, Continental Airlines and Northwest Airlines review)(Brief Article)
May 1, 2003... US Dept. of Transportation terminated its review of the marketing alliance among Delta Air Lines, Continental Airlines and Northwest Airlines, "allowing the carriers to go forward with their codeshare and frequent-flier programs" on the...

Hawaiian Airlines. (North America Report).(Chapter 11 bankruptcy protection)(Brief Article)
May 1, 2003... Hawaiian Airlines sought Chapter 11 bankruptcy protection, stating the move became necessary after it was unable to reach agreement with certain of its lessors on reducing its lease rates to "market levels." The airline said it hopes to emerge...

Transportation Safety Board of Canada. (North America Report).(crash of Swissair Flight 111 concluded that the fatal fire "most likely started" with an electrical arcing event )(Brief Article)
May 1, 2003... Transportation Safety Board of Canada's final report on the Sept. 2, 1998, crash of Swissair Flight 111 concluded that the fatal fire "most likely started" with an electrical arcing event involving one or more wires belonging to the MD-11's IFE...

US Majors Traffic.(Illustration)
May 1, 2003... US Majors Traffic March 2003 Load RPMs % chg. ASMs % chg. factor +/- chg. (billions) 2002 (billions) 2002 (%) ...

US National Transportation Safety Board. (North America Report).(US scheduled airlines suffered no fatal accidents in 2002)(Brief Article)
May 1, 2003... US National Transportation Safety Board confirmed that US scheduled airlines suffered no fatal accidents in 2002. In 2001 there were 531 fatalities involving US airlines, including 265 persons killed onboard the four aircraft hijacked on 9/11....

Boeing. (North America Report).(delivers 71 planes)(Brief Article)
May 1, 2003... Boeing delivered 71 commercial aircraft in the 2003 first quarter, including 41 737NGs, the most of any type.

FlightSafety Boeing Training International. (North America Report).(now called Alteon)(Brief Article)
May 1, 2003... FlightSafety Boeing Training International began operations under its new name, Alteon, April 14.

CAE. (North America Report).(signs deal with Airbus)(Brief Article)
May 1, 2003... CAE signed an agreement with Airbus for the purchase of 20 CAE Simfinity maintenance/ flight training devices that will be integrated into the Airbus training program (see article, p.69). Value of the devices is nearly C$30 million ($20.2...

EU Council of Transport Ministers. (Europe Report).(Brief Article)
May 1, 2003... EU Council of Transport Ministers declined to take a position at its March meeting on the European Commission's request for a mandate to negotiate bilateral aviation agreements on behalf of the entire EU. The Council also declined to address a...

SAS Group. (Europe Report).(to lay off an additional 4,000 employees)(Brief Article)
May 1, 2003... SAS Group said April 10 that it will lay off an additional 4,000 employees--almost 13% of its workforce--over 18 months starring this spring. Job curs will affect all workgroups and are in addition to two previous rounds of layoffs affecting...

British Airways. (Europe Report).(moves forward its workforce reduction target)(Brief Article)
May 1, 2003... British Airways brought forward its manpower reduction target of 13,000 to Sept. from the previous date of March 2004 and has placed all capital spending under review in response to the current downturn in traffic. BA noted that it already has...

Lufthansa. (Europe Report).(financial situation not good)(Brief Article)
May 1, 2003... Lufthansa CFO Karl-Ludwig Kley said LH attributed weekly losses of [euro]50 million ($53.7 million) to SARS, the Iraq war, sluggish global economies and recession in home market Germany. He told employee newspaper Der Lufhanseat in April that...

Air France. (Europe Report).(postpones deliveries of A320s, cuts capacity)(Brief Article)
May 1, 2003... Air France postponed deliveries of seven A320-family aircraft, reportedly including its first A318s, in response to "the deteriorating economic situation" caused by the war in Iraq. The carrier also reduced its capacity by 7% in April compared...

KLM. (Europe Report).(expects to eliminate "several thousand jobs")(Brief Article)
May 1, 2003... KLM said it will implement "far-reaching measures" designed to improve results. The actions include further capacity cuts and as a result the airline expects to eliminate "several thousand jobs." Some of the job reductions will occur via a...

Alitalia Group. (Europe Report).(had net profit of 93 mil euros in 2002)(Brief Article)
May 1, 2003... Alitalia Group posted a net profit of [euro]93 million ($101.6 million) for 2002 owing to extraordinary items in the amount of [euro]389 million, including [euro]266 million from arbitration proceedings against KLM. Consolidated net loss in...

Aer Lingus. (Europe Report).(saw net profit of 35 .3 mil euros for 2002)(Brief Article)
May 1, 2003... Aer Lingus reported a net profit of [euro]35.3 million ($37.3 million) for 2002 after exceptional charges totaling [euro]25.7 million, representing a major improvement from the net loss of [euro]139.9 million after net exceptional charges of...

Austrian Airlines Group. (Europe Report).(plans 5% cost reduction)(Brief Article)
May 1, 2003... Austrian Airlines Group, citing "dramatic falls in passenger business" attributable to the Iraq war and other factors, said it is adopting measures to achieve an overall cost reduction of 5% this year, equivalent to a savings of [euro]40...

Swiss International Air Lines. (Europe Report).(cuts staff, orders)(Brief Article)
May 1, 2003... Swiss International Air Lines President and CEO Andre Dose, declaring that the carrier will not be able to break even in 2003, said it will cut its payroll by another 10%, leaving 9,000 staff. Swiss also halved its firm orders for Embraer...

Ryanair. (Europe Report).(completes purchase of Buzz)(Brief Article)
May 1, 2003... Ryanair completed its acquisition of Buzz last month at a price of [euro]20.1 million ($21.7 million), reduced from [euro]23.9 million "as a result of a number of issues which arose during the due diligence process."

Finnair. (Europe Report).(layoffs planned)(Brief Article)
May 1, 2003... Finnair will reduce its workforce by 1,200 jobs through 2005 as it attempts to cut costs to improve profitability. About 200 positions in its travel agency division and another 1,000 in other business units will be eliminated. CEO Keijo Suila...

SN Brussels Airlines. (Europe Report).(net loss reported)(Brief Article)
May 1, 2003... SN Brussels Airlines reported a net loss of [euro]36.8 million ($39.2 million) for 2002. Operating loss was "limited" to [euro]102.5 million against a forecast operating loss of [euro]132.4 million "thanks to lower operational and transitional...

Virgin Express. (Europe Report).(increase in profits)(Brief Article)
May 1, 2003... Virgin Express reported a net profit of [euro]410,000 ($438,125) for 2002, much improved over the [euro]130,000 earned in 2001. Revenue increased 7% to [euro]227.3 million and operating expenses rose 6.7% to [euro]224.7 million, mainly owing to...

Icelandair. (Europe Report).(parent Flugleidir reports profits)(Brief Article)
May 1, 2003... Icelandair parent Flugleidir reported pre-rax profits of Isk3.3 billion ($36.9 million) for 2002. The company posted a net loss of Isk1.21 billion in 2001. Operating revenue was up 2.6% to Isk39 billion and operating expenses fell 9.5% to Isk35...

Air Lib. (Europe Report).(distribution of annual slots at Orly)(Brief Article)
May 1, 2003... Air Lib's 44,528 annual slots at Paris Orly were distributed among 15 different airlines, effectively diluting the impact of low-cost carriers on Air France, which is set for privatization this year. AF, which already holds 46% of the slots at...

EADS. (Europe Report).(Arnaud Lagardere to replace his father)(Brief Article)
May 1, 2003... EADS named Arnaud Lagardere co-chairman of its board succeeding his father, Jean-Luc Lagardere, who died March 14. Lagardere Group holds a 15% stake in EADS.

BAE Systems Controls and Hispano-Suiza. (Europe Report).(contracted by Pratt and Whitney/GE Engine Alliance)(Brief Article)
May 1, 2003... BAE Systems Controls and Hispano-Suiza received a contract to develop the FADEC for the Pratt & Whitney/GE Engine Alliance GP7200 for the A380. Delivery of the first development unit is scheduled for Aug.

Thales Avionic. (Europe Report).(Airbus to use navigation system)(Brief Article)
May 1, 2003... Thales Avionics' Standby Navigation System was selected by Airbus for the A380.

Smiths Aerospace. (Europe Report).(Hamilton Sundstrand contract)(Brief Article)
May 1, 2003... Smiths Aerospace was selected by Hamilton Sundstrand to provide actuators for the A380 air generation system. The program is expected to generate more than $80 million in revenues through 2020.

Lufthansa Technik and SAS Component. (Europe Report).(contract with Scandinavian Airlines )(Brief Article)
May 1, 2003... Lufthansa Technik and SAS Component signed a 15-year contract with Scandinavian Airlines for thrust reverser and cowling overhaul on V2500-A5 and CFM56-5C engines powering Scandinavian's A321s and A340-300s. The agreement includes an option for...

European Airline Traffic.(Brief Article)(Illustration)
May 1, 2003... European Airline Traffic March 2003 Load RPKs % chg. ASKs % chg. factor +/- (billions) 2002 (billions) 2002 (%) 2002 AF Group...

SAS Component. (Europe Report).(Brief Article)
May 1, 2003... SAS Component was contracted to provide Air Berlin with avionics component repair services covering the airline's fleet of 29 737NGs.

Pratt & Whitney. (Europe Report).(Brief Article)
May 1, 2003... Pratt & Whitney was awarded a seven-year contract worth around $37 million by TUI Airline Management to provide full engine MRO services for 28 CFM56-3 and CFM56-7B engines powering 14 737-400s and 737-800s flown by six airlines in the TUI...

Air France Industries and Alitalia Engineering & Maintenance. (Europe Report).
May 1, 2003... Air France Industries and Alitalia Engineering & Maintenance signed a cooperation agreement under which AFI will be responsible for component repair and spares pooling on Alitalia's 777s for seven years while under a five-year contract Alitalia...

NATS. (Europe Report).(Brief Article)
May 1, 2003... NATS, the UK's financially strapped air traffic services provider, was to receive a much-needed [pounds sterling]130 million ($203.6 million) cash injection provided equally by the UK government and BAA, but in return NATS will have to improve...

Airbus. (Leasing & Finance Briefs).(creates finance company through partnerships, Avion Capital)(Brief Article)
May 1, 2003... Airbus has teamed with aircraft lessor and financier CIT Group, Credit Agricale Indosuez and German bank Kreditanstalt fur Wiederaufbau to create a new financing company, Avion Capital, that will assume commitments made by Airbus to support...

Emirates. (Leasing & Finance Briefs).(Brief Article)
May 1, 2003... Emirates signed a 12-year, $160 million financing package far two new A330-200s using commercial bank funds on a floating rate basis at a margin of 0.80% over sixmonth Libor. The financing was structured by Credit Agricole Indosuez with debt...

Dragonair. (Leasing & Finance Briefs).(signs International Lease Finance Corp. agreement)(Brief Article)
May 1, 2003... Dragonair inked an agreement with International Lease Finance Corp. for a new A330, which when delivered in March 2004 will be its 10th.

Air Atlanta Icelandic. (Leasing & Finance Briefs).(signs GE Capital Aviation Services contract)(Brief Article)
May 1, 2003... Air Atlanta Icelandic signed a leasing agreement with GE Capital Aviation Services for four 747-200Fs.

Boullioun Aviation Service. (Leasing & Finance Briefs).(delivers 737-800 to Air Berlin)(Brief Article)
May 1, 2003... Boullioun Aviation Services delivered to Air Berlin a 737-800 equipped with CFM56-7826 engines on medium-term lease.

CIT Aerospace. (Leasing & Finance Briefs).(signs PrivatAir lease agreement)(Brief Article)
May 1, 2003... CIT Aerospace signed an operating lease agreement with PrivatAir for two new A319LRs. PrivatAir will provide the aircraft to Lufthansa on wet-lease.

Singapore Airlines. (Leasing & Finance Briefs).(Brief Article)
May 1, 2003... Singapore Airlines completed the sale/leaseback of a 747-400 to Caspian Leasing Ltd. for six years.

Martinair. (Leasing & Finance Briefs).(receives Singapore Aircraft Leasing Enterprise equipment)(Brief Article)
May 1, 2003... Martinair took delivery of o V2500-powered A320 leased from Singapore Aircraft Leasing Enterprise.

Qantas Airways and Air New Zealand. (Asia/Pacific Report).(seek government approval for alliance)(Brief Article)
May 1, 2003... Qantas Airways and Air New Zealand are adamant that they will persevere in their bid to gain approval for a A$550 million ($332.7 million) alliance despite competition regulators on both sides of the Tasman firmly rejecting the move last month....

China Eastern Airlines. (Asia/Pacific Report).(reports after-tax profits)(Brief Article)
May 1, 2003... China Eastern Airlines reported after-tax profits of 86.4 million yuan ($10.5 million) for the fiscal year ended Dec. 31, a significant drop from 541.7 million yuan in 2001. Revenue, boosted by a sharp increase in international passenger...

Sabre Holdings Corp. (Asia/Pacific Report).(receives China Eastern contract)(Brief Article)
May 1, 2003... Sabre Holdings Corp. was chosen by China Eastern to implement an operations control center using Sabre Airline Solutions flight operations products and consulting services.

Cathay Pacific. (Asia/Pacific Report).(signs Sabre agreement)(Brief Article)
May 1, 2003... Cathay Pacific signed a three-year, multimillion-dollar Smartsourcing contract with Sabre. Under terms of the deal, Sabre Airline Solutions maintains its position as a strategic vendor to Cathay Pacific for solutions and consulting.

Ameco Beijing. (Asia/Pacific Report).(receives Air Atlanta Icelandic contract)(Brief Article)
May 1, 2003... Ameco Beijing will perform MRO services for Air Atlanta Icelandic under a five-year agreement primarily covering 747 heavy checks.

Colombia's Avianca. (Latin America Caribbean Report).(files for Chapter 11 bankruptcy protection)(Brief Article)
May 1, 2003... Colombia's Avianca and its US affiliate Avianca Inc. filed for Chapter 11 bankruptcy protection in March to restructure $130 million in dollar-denominated debt. Avianca, with 53 aircraft performing 317 daily flights, will seek to reject some of...

LanEcuador. (Latin America Caribbean Report).(delays international operations)(Brief Article)
May 1, 2003... LanEcuador expected to launch international operations on April 28 with service from Quito and Guayaquil to Miami and New York. Startup had to be postponed owing to difficulties in gaining US approval. The airline was granted route rights into...

Varig and TAM. (Latin America Caribbean Report).(extend codesharing agreement)(Brief Article)
May 1, 2003... Varig and TAM expanded their codesharing agreement to cover 252 weekly services in 12 city-pairs as they continue to evaluate a closer relationship that ultimately could include a merger. A major hurdle to such a step is Varig's 2.8 billion...

Pratt & Whitney. (Latin America Caribbean Report).(receives AeroMexico contract)(Brief Article)
May 1, 2003... Pratt & Whitney signed a $3 million, five-year agreement with AeroMexico covering thrust reverser MRO services on PW2037 engines that power the airline's 757s.

GE Engine Services. (Latin America Caribbean Report).(receives Copa contract)(Brief Article)
May 1, 2003... GE Engine Services was awarded a 12-year, $83 million maintenance contract from Copa to maintain the carrier's CFM56-7 engines powering its 16737-700s.

El Al. (Africa/Middle East Report).(faces possible closure)(Brief Article)
May 1, 2003... El Al faces possible closure if privatization plans for the state-owned company falter before being set in motion, Israel Transport Minister Avigdor Lieberman warned in April. "The government cannot continue supporting El Al, and I expect...

FAA. (Africa/Middle East Report).(states United Arab Emirates complies with international safety standards)(Brief Article)
May 1, 2003... FAA said the United Arab Emirates complies with international safety standards set by ICAO and issued the country a Category 1 rating.

Arab Air Carrier Organization. (Africa/Middle East Report).(conference postponed)(Brief Article)
May 1, 2003... Arab Air Carrier Organization postponed from April 7-10 to Oct. 6-9 its AGM to be hosted in Muscat by Oman Air.

Rockwell Collin. (Africa/Middle East Report).(receives Royal Air Maroc contract)(Brief Article)
May 1, 2003... Rockwell Collins was selected by Royal Air Maroc to provide in-flight entertainment systems and avionics for four new A32ls and 19 737-700s/-800s. The company's Programmable Audio Video Entertainment System will be installed on RAM's fleet.

FedEx Corp. (Cargo).(Brief Article)
May 1, 2003... FedEx Corp. reported net income of $ 147 million for the fiscal third quarter ended Feb. 28, up 23% over net income of $120 million in the year-ago period. Executive VP and CFO Alan Graf said that the "strong momentum" should continue into the...

Lufthansa Cargo. (Cargo).(Brief Article)
May 1, 2003... Lufthansa Cargo racked up its best annual results since becoming a separate entity in 1994. Net income soared to [euro]1 68 million ($180 million) in 2002 from [euro]66 million in 2001 as operating costs were slashed 6.9%. Annual revenue of...

Atlas Air. (Cargo).(Brief Article)
May 1, 2003... Atlas Air laid off approximately 30% of its ground staff leading to savings of $ 14 million on an annual basis. The troubled company announced last month that it was deferring payments on its bank debt, senior notes and leased aircraft while...

Precision Conversions LLC. (Cargo).(Brief Article)
May 1, 2003... Precision Conversions LLC signed a launch order for two 757 passenger-to-freighter conversions with Boullioun Aviation Services. Conversions will be done by Goodrich Aviation Technical Services in Everett, Wash. Precision is the first non-OEM...

All Nippon Airways. (Equipment).(Brief Article)
May 1, 2003... All Nippon Airways ordered 45 CFM56-7-powered 737s for delivery beginning in 2005. ANA said the majority of the order will be 737-700s but will include "other variants."

EgyptAir. (Equipment).(Brief Article)
May 1, 2003... EgyptAir ordered seven A330-200s with deliveries scheduled to begin in June 2004. The carrier will operate the aircraft mainly on roures within the Middle East and to Europe.

Iberia. (Equipment).(Brief Article)
May 1, 2003... Iberia formalized a previously announced agreement with Airbus covering orders for nine Trent 500-powered A340-600s with options for three more. The aircraft will be delivered between 2004 and 2006. In a separate agreement, Iberia will receive...

Aircalin. (Equipment).(Brief Article)
May 1, 2003... Aircalin signed a contract with Airbus for a V2500-A5-powered A320 that will be delivered in early 2004.

US Airways. (Equipment).(Brief Article)
May 1, 2003... US Airways completed the restructuring of its Airbus order book, swapping contracts for one A330-300, three A3l9s and 15 A320s fiir a firm order for 10 more A330-200s. Airbus said the carrier also has an additional l3 A32ls and six A320s on...

Air Hong Kong. (Equipment).(Brief Article)
May 1, 2003... Air Hong Kong selected CF680C2s to power six new A300-600Fs scheduled for delivery between the second half of 2004 and the first quarter of 2005. GEAE valued the order at $100 million.

Bombardier to focus on aerospace, transportation, sell other units. (Regional News).(Brief Article)
May 1, 2003... Bombardier Inc. will sell its recreational products division, issue new stock and cur dividends as it struggles to reduce its debt burden and return to financial health after losing C$6 15.2 million ($418 million) in the fiscal year ended Jan....

ACA tightens its belt. (Regional News).(Atlantic Coast Airlines furloughs pilots, implements hiring freeze)(Brief Article)
May 1, 2003... Atlantic Coast Airlines' recent decision to furlough 87 pilots is in line with an ongoing effort to reduce costs across the board by 10%-12%, a company spokesperson said. In addition to the furloughs, ACA will implement a hiring freeze,...

Republic Airlines still on track. (Regional News).(Brief Article)
May 1, 2003... Plans for Republic Airlines will move forward despite a vote by Chautauqua Airlines pilots in favor of a Jets for Jobs program. Chauruaqua's parent company, Republic Airlines Holding, decided to set up a separate cattier to accommodate the Jets...

United Airlines. (Notes).(airlines' tentative agreement with pilots union will impact regional partners)(Brief Article)
May 1, 2003... United Airlines' tentative agreement with its pilots union will permit Regional partners to operate jets larger than 50 sears under the UA code if the partner "also provides job opportunities to furloughed United pilots."