Air Transport World articles from May 2004

Air Transport World archives from May 2004

Jet fuel prices.(Trends)(Illustration)
May 1, 2004... Jet Fuel Prices Spot cash markets (average) March 19,2004 New York 98.56 US Gulf Coast 96.44 Los Angeles 106.15 Rotterdam 106.03 Singapore 90.07 Oct. 85.30...

Top 20 airlines.(Trends)(Illustration)
May 1, 2004... Top 20 Airlines January-March 2004 Rank Airline RPKs (000) 1 American 48,634,178 2 United 41,888,939 3 Delta 39,019,425 4 Northwest ...

Exchange rate.(Trends)(Illustration)
May 1, 2004... Exchange Rate Currency units per US dollar Country/Currency 3/31/04 1/30/04 Brazil/Real 2.909 2.933 Canada/$ 1.3081 1.3305 China/Yuan ...

Finite.(Editorial)(Low-cost carriers )
May 1, 2004... It is easy to understand the frustration of easyJet's managers. The destination plum of Paris is just sitting there within easy reach and yet the vast traffic potential of Paris remains mostly out of reach due to airport policies and the...

Let the battle begin.(Brief Article)
May 1, 2004... Possibly hoping to instill some fighting spirit into his embattled airline, US Airways CEO David Siegel in late March told employees that they must repel Southwest Airlines when it enters Philadelphia this month--or die. "They're coming for one...

Mineta rules out cabotage for EC airlines.(European Commission)(Norman Mineta)(Brief Article)
May 1, 2004... Cabotage will not be part of any agreement to create a transatlantic Open Aviation Area with the European Union, US Transportation Secretary Norman Mineta said last month in Brussels as he urged European negotiators to accept a more limited...

Qantas to launch LCC in Singapore.(Brief Article)
May 1, 2004... Qantas plans to counter emerging low-cost competition in Southeast Asia by establishing its own budget venture in Singapore by year end with the support of Temasek Holdings, the majority shareholder of Singapore Airlines that already is an...

Trinity set to walk away from Air Canada.(Brief Article)
May 1, 2004... Air Canada's hopes of emerging from its bankruptcy reorganization this spring were dealt a huge setback in early April when Trinity Time Investments said it would not extend beyond the April 30 expiration date its agreement to invest C$650...

Euro Parliament blocks EC-US PNR data agreement.(Brief Article)
May 1, 2004... Members of the European Parliament last month reaffirmed their opposition to the transfer of PNR data to the US government, leaving European airlines in limbo as to whose instructions to follow. The EP called the level of protection...

Boeing chooses GE, Rolls to power 7E7.(Brief Article)
May 1, 2004... Boeing in early April selected engine proposals from GE Aircraft Engines and Rolls-Royce to power its proposed 7E7. GEAE will supply the GENX (GE Next Generation), a new derivative of its GE90 for the 777 family. Rolls will supply the Trent...

SAS reaches savings goals.(Brief Article)
May 1, 2004... SAS Group finalized agreements with its unions that the company said provide savings necessary to implement its Turnaround 2005 restructuring plan. According to SAS, savings of roughly Sek14 billion ($1.83 billion) were required in order to...

China Airlines.(Asia/Pacific report)(Brief Article)
May 1, 2004... China Airlines reported a net profit of NT$1.78 billion ($53.7 million) in 2003 as an aggressive promotion plan contributed to a NT$2.7 billion profit in the second half, more than offsetting first-half losses attributed to SARS. Annual...

Singapore Airlines.(Asia/Pacific report)(Brief Article)
May 1, 2004... Singapore Airlines signed letters of intent to sell eight of its 28 747-400s to two undisclosed airlines, one of which is believed to be Cathay Pacific. The 747s will be converted to Special Freighters by Boeing Commercial Aviation Services...

China Eastern Airlines.(Asia/Pacific report)(Brief Article)
May 1, 2004... China Eastern Airlines, which was hammered by the SARS outbreak, reported a net loss of 949.8 million yuan ($114.8 million) in 2003 compared to an 86.4 million yuan net profit in 2002. Revenue for the year amounted to 14.28 billion yuan.

Valuair.(Asia/Pacific report)(Brief Article)
May 1, 2004... Valuair, the Singapore-based LCC being formed by two former SIA executives, received its air operator certificate from the CAA. However, to launch commercial flights, CAA said Valuair will have to apply to the Air Traffic Rights Committee for...

Asiana Airlines.(Asia/Pacific report)(Brief Article)
May 1, 2004... Asiana Airlines finalized the sale of its Asiana Airport Services ground-handling subsidiary to KTB Network Inc. for 50 billion won ($43.3 million).

Matsushita Avionics Systems, Koito Industries and JAMCO Corp. were selected by Airbus as "preferred suppliers" for the A380.(Asia/Pacific report)(Brief Article)
May 1, 2004... Matsushita Avionics Systems, Koito Industries and JAMCO Corp. were selected by Airbus as "preferred suppliers" for the A380. Matsushita Avionics will provide IFE while Koito was selected to supply passenger seats and JAMCO the galley systems....

HEICO Corp.(Asia/Pacific report)(Brief Article)
May 1, 2004... HEICO Corp. entered into a "long-term exclusive supply agreement" with Japan Airlines under which JAL agreed to purchase newly developed parts and most applicable FAA-approved replacement parts on an exclusive basis from HEICO Aerospace. In...

Honeywell.(Asia/Pacific report)(Brief Article)
May 1, 2004... Honeywell was selected by AirAsia to supply wheels, brakes and maintenance on its fleet of 20 737-300s through 2012.

GE Engine Services.(Asia/Pacific report)(Brief Article)
May 1, 2004... GE Engine Services will maintain the CFM56-3B2s powering AirAsia's 737-300s under a nine-year, $50 million agreement. Work will be conducted at GE Engine Services Malaysia.

China's AVIC I Commercial Aircraft Ltd.(Asia/Pacific report)(Brief Article)
May 1, 2004... China's AVIC I Commercial Aircraft Ltd. selected Goodrich Hella Aerospace Lighting Systems to supply a major portion of the lighting systems on its new ARJ21 regional jet.

Air France.(Asia/Pacific report)(Brief Article)
May 1, 2004... Air France became the first Western airline to establish a call center in China with the opening of its new facility in Guangzhou in late March to handle reservations and ticket sales in the PRC.

Korean Air.(Asia/Pacific report)(Brief Article)
May 1, 2004... Korean Air will perform maintenance on PW4000 engines powering United Airlines' 747s and Lufthansa's A330s. The deal is valued at $10 million.

Hurel-Hispano and Hong Kong Aircraft Engineering Co. signed an MOU to provide MRO facilities.(Asia/Pacific report)(Brief Article)
May 1, 2004... Hurel-Hispano and Hong Kong Aircraft Engineering Co. signed an MOU to provide MRO facilities in Hong Kong for customers in the region.

Pan Am International Flight Academy.(Asia/Pacific report)(Brief Article)
May 1, 2004... Pan Am International Flight Academy was awarded a contract to provide comprehensive airline-oriented training to KAL.

Exodus of senior leaders.(North America report)(Brief Article)
May 1, 2004... Exodus of senior leaders continued at Delta Air Lines last month with the announcement that Executive VP and CFO Michele Burns is leaving to take a similar position with Mirant Corp., which is reorganizing under Chapter 11 bankruptcy...

United Airlines.(North America report)(Brief Article)
May 1, 2004... United Airlines is the biggest airline beneficiary of pension reform legislation signed into law by President Bush last month. United, which is trying to secure a $1.6 billion loan guarantee from the US Air Transportation Stabilization Board to...

US DOT Secretary.(North America report)(United States. Department of Transportation.)(Brief Article)
May 1, 2004... US DOT Secretary Norman Mineta unveiled a series of steps aimed at "reducing potential gridlock and delays" during the peak summer travel period, including creation of new air traffic "express lanes" along many of the nation's most heavily...

Hawaiian Airlines.(North America report)(Brief Article)
May 1, 2004... Hawaiian Airlines, which filed for bankruptcy protection in March 2003, lost $49.5 million in 2003, slightly improved from a loss of $57.4 million in 2002. Last year's results include $115.1 million in reorganization expenses. Operating revenue...

Oaktree Capital Management.(North America report)(Brief Article)
May 1, 2004... Oaktree Capital Management, which earlier this year took a 51% stake in Sprit Airlines for $125 million, agreed to invest $150 million in Pegasus Aviation, an operating lessor, in partnership with Pegasus management. Separately, Pegasus...

US majors traffic: March 2004.(North America report)(Illustration)
May 1, 2004... US Majors Traffic March 2004 RPMs % chg. ASMs (billions) 2003 (billions) Alaska 1.33 15.4 1.84 American ...

US Transportation Security Administration.(North America report)(Brief Article)
May 1, 2004... US Transportation Security Administration intends to launch a Registered Traveler Pilot Program that will begin at selected airports in late June.

American Civil Liberties Union.(North America report)(Brief Article)
May 1, 2004... American Civil Liberties Union, on behalf of seven plaintiffs, filed a class-action lawsuit challenging the legality of the US government's "no-fly list" that prohibits certain individuals from flying on US carriers.

Boeing.(North America report)(Brief Article)
May 1, 2004... Boeing is considering selling its commercial jet parts operations in Wichita, Kan., and Tulsa and McAlester, Okla. Wichita was recently selected to provide the engine pylons for the 7E7. It also manufactures fuselage barrels for the 737 and 757...

Connexion by Boeing.(North America report)(Brief Article)
May 1, 2004... Connexion by Boeing unveiled two initial pricing plans for its inflight broadband Internet service. The Flat Rate Pricing Option, which provides passengers with unlimited access, costs $29.95 for long-haul flights of more than 6 hr., $19.95 for...

Hamilton Sundstrand.(North America report)(Brief Article)
May 1, 2004... Hamilton Sundstrand was selected by Boeing to provide the primary power distribution system for the 7E7. Boeing previously tapped the UTC subsidiary to supply the ECS, electrical power generating and start system, remote power distribution...

Rockwell Collins.(North America report)(Brief Article)
May 1, 2004... Rockwell Collins will provide avionics for 25 new A319s/A320s ordered by Independence Air. Deliveries are scheduled to begin this year. The deal includes options for 50 additional aircraft.

GE Infrastructure.(North America report)(Brief Article)
May 1, 2004... GE Infrastructure will acquire InVision Technologies, a maker of explosives detection systems, in an all-cash transaction valued at approximately $900 million. GE Chairman and CEO Jeff Immelt said InVision is a "perfect fit" for GE...

Sabre Airline Solutions and Mxi Technologies.(North America report)(Brief Article)
May 1, 2004... Sabre Airline Solutions and Mxi Technologies signed an agreement to provide a "new breed of maintenance and engineering software" to the aviation industry based on Mxi's Maintenix application. Separately, Sabre Travel Network launched the...

ARINC.(North America report)(Brief Article)
May 1, 2004... ARINC will add a "pushbutton calling capability" to its Air Ground Domestic VHF voice radio service in June, enabling crews on aircraft with special "tone keying" capability on their microphones to call their dispatchers and other key locations...

Cisco Systems and SITA.(North America report)(Brief Article)
May 1, 2004... Cisco Systems and SITA collaboration is being showcased at Toronto Pearson International Airport's new C$4.4 billion ($3.4 billion) Terminal 1 that opened last month. The Cisco Intelligent Airport Solution network supports SITA's...

Navitaire.(North America report)(Brief Article)
May 1, 2004... Navitaire expanded its hosted technology solutions for airlines with the acquisition of key assets of Caleb Technologies, adding Caleb's operations recovery decision-support and resource planning systems to its service portfolio. Financial...

IBS Software Services.(North America report)(Cendant Travel Distribution Services )(Brief Article)
May 1, 2004... IBS Software Services entered into an agreement with Cendant Travel Distribution Services to form a "strategic relationship" to promote iRes, IBS's new Passenger Services System designed to replace legacy systems in the airline industry.

The European Commission.(Europe report)(Brief Article)
May 1, 2004... The European Commission cleared the alliance between Air France and Alitalia, for a period of six years from Nov. 2001, after the carriers agreed to surrender 42 daily slot pairs, 19 of which will come from Paris CDG and Orly airports on routes...

Alitalia.(Europe report)(Brief Article)
May 1, 2004... Alitalia reported a 510.6 million [euro] loss before extraordinary items and taxes for 2003 compared to a 260.5 million [euro] loss on a similar basis in 2002. Operating loss totaled 373.4 million [euro] versus a deficit of 118.5 million [euro]...

Ryanair.(Europe report)(Brief Article)
May 1, 2004... Ryanair last month confirmed that it reached an agreement with Brussels South Charleroi Airport and the Walloon Authorities that will allow the carrier to continue operations and keep its base at the airport.

Austrian Airlines Group.(Europe report)(Brief Article)
May 1, 2004... Austrian Airlines Group reported a 45.8 million [euro] ($55.2 million) net profit for 2003, up 7% over a net profit of 42.8 million [euro] in the prior year. Group revenue fell 7.5% to 2.04 [euro] billion for the year while EBIT rose 52.9% to...

Bmi.(Europe report)(Brief Article)
May 1, 2004... Bmi reported a pre-tax loss of 9.8 million [pounds sterling] ($17.9 million) in 2003 against a loss of 19.6 million [pounds sterling] in the prior year. Trading profits pre-overheads, interest and exceptional items increased significantly to...

Virgin Express.(Europe report)(Brief Article)
May 1, 2004... Virgin Express posted a 19.6 million [euro] ($23.9 million) net loss for 2003, reversing a 0.4 million [euro] net profit in 2002. Annual revenue decreased 9% to 207.1 million [euro] and operating expenses declined 1% to 221.9 million [euro]. As...

TUI AG.(Europe report)(Brief Article)
May 1, 2004... TUI AG's consolidated net profits soared to 314.9 million [euro] ($384.2 million) in 2003, up from 41.1 [euro] million the previous year. Gains from disposals and favorable results from its logistics division compensated for a 5.4% drop in...

Thomas Cook AG.(Europe report)(Brief Article)
May 1, 2004... Thomas Cook AG reported a pretax loss of 224.4 million [euro] for the three months ended last Jan. 31, improved from a pre-tax loss of 254.2 million [euro] in the year-ago period. Revenues declined 5.1% to 1.06 billion [euro]. It attributed the...

Finnair.(Europe report)
May 1, 2004... Finnair sold a 37.9% stake in Gourmet Nova Finland Oy for 6.3 million [euro] ($7.8 million) to food services concern Compass Group as part of its strategy to concentrate on developing its core airline business. Finnair retained a 2.1% share....

Alitalia subsidiary Alitalia Express.(Europe report)(Brief Article)
May 1, 2004... Alitalia subsidiary Alitalia Express was selected by the commercial court of Parma to take over bankrupt Gandalf Airlines. Alitalia Express's tender of 7.1 million [euro] ($8.6 million) was almost double the bids entered by three other...

French government.(Europe report)(Brief Article)
May 1, 2004... French government intends to move forward on long-discussed plans for a partial spinoff of 97%-state-owned aerospace manufacturing giant Snecma. Finance Minister Nicolas Sarkozy told parliament that the transaction will occur "before...

EADS Sogerma Services.(Europe report)(Albert Muhlenberg Apparatebeau )(Brief Article)
May 1, 2004... EADS Sogerma Services and Albert Muhlenberg Apparatebeau formed a strategic alliance for the development and installation of aircraft passenger cabin interiors, agreeing to initiate their collaboration on the A380. EADS Sogerma Services was...

Hamilton Sundstrand.(Europe report)
May 1, 2004... Hamilton Sundstrand and EADS Sogerma Services will establish a joint venture for repair and overhaul of aircraft APUs and accessories. The JV, named Revima APU, will be located near Rouen and is expected to generate approximately $70 million in...

L-3 Communications Aviation Recorders.(Europe report)(Brief Article)
May 1, 2004... L-3 Communications Aviation Recorders was selected by Airbus to supply FDRs and CVRs for the A380.

Sabena Technics.(Europe report)(TUI Airlines Belgium )(Brief Article)
May 1, 2004... Sabena Technics signed a contract with Luxair covering component maintenance and support for three 737-700s. It signed a five-year contract with TUI Airlines Belgium for line and light maintenance, engineering and components for three 737-400s...

Tenzing.(Europe report)(Brief Article)
May 1, 2004... Tenzing said that Iberia will install new high-speed e-mail and instant messaging service in business class on its long-haul fleet of A340-600s and A340-300s beginning in Oct.

European airline traffic: March 2004.(Europe report)(Illustration)
May 1, 2004... European Airline Traffic March 2004 RPKs % chg. ASKs (billions) 2003 (billions) AF Group 8.92 5.2 11.70 BA Group 8.92 12.7 12.05...

Lufthansa Technik Logistik and The Memphis Group signed a long-term cooperation agreement.(Europe report)(Brief Article)
May 1, 2004... Lufthansa Technik Logistik and The Memphis Group signed a long-term cooperation agreement under which LTL will provide comprehensive logistics services in the areas of warehouse and transport management for TMG.

Amadeus.(Europe report)(Brief Article)
May 1, 2004... Amadeus is rebranding its existing New Generation Passenger Service Systems under the name Altea. Simultaneously, it is upgrading and expanding its passenger solutions portfolio into three new flagship products. Amadeus Sales System User was...

Swissport International.(Europe report)(Brief Article)
May 1, 2004... Swissport International announced that it acquired UK-based ground handling company Groundstar Ltd. in a move that will add five British airports--Stansted, Gatwick, Newcastle, Manchester and Birmingham--to its worldwide network. Price and...

SR Technics.(Europe report)(Brief Article)
May 1, 2004... SR Technics was awarded a 12-month maintenance accord to provide easyJet with comprehensive technical support services. Agreement covers 32 A319s, five of which already are maintained by SR Technics.

Volvo Aero Services.(Europe report)(Brief Article)
May 1, 2004... Volvo Aero Services and British Airways reached a multiyear agreement under which Volvo Aero will act as BA's authorized outlet to "market and sell its designated surplus material" valued in excess of $100 million.

B/E Aerospace.(Europe report)(Brief Article)
May 1, 2004... B/E Aerospace was selected by Sukhoi Civil Aircraft to provide a turnkey interior cabin for its new family of Russian Regional Jets.

FLS Aerospace.(Europe report)(Brief Article)
May 1, 2004... FLS Aerospace was contracted by FlyMe for line maintenance support for its fleet of 737-300s. The contract is initially for two 737-300s, increasing to four by year end.

Iceland's Calidris.(Europe report)(Brief Article)
May 1, 2004... Iceland's Calidris said Finnair signed a deal to purchase its IT solution "to supply appropriate passenger information on its flights to the US, China and other countries requesting advance passenger information."

Tel-Instrument Electronics.(Europe report)(BA)(Brief Article)
May 1, 2004... Tel-Instrument Electronics will supply its TR-220 Multi-Function Test Sets to BA, which the airline will use to test aircraft that are being upgraded to meet new Eurocontrol requirements for Elementary and Enhanced Surveillance and ADS-B.

UK National Air Traffic Services.(Europe report)(Brief Article)
May 1, 2004... UK National Air Traffic Services appointed Paul Barron as its new CEO. Barron, currently president and MD of Alstom UK, will replace Richard Everitt, who is leaving in June.

Varig.(Latin America/ Caribbean report)(Brief Article)
May 1, 2004... Varig lost 1.8 billion reais ($623 million) in 2003, a negative result discreetly celebrated as it represented a 36% improvement over the 2002 loss. Revenues rose 14.5% to R7.9 billion. Total debt is estimated at R5 billion. Management cited...

TAM.(Latin America/ Caribbean report)(Brief Article)
May 1, 2004... TAM posted a record 173.8 million reais ($60.2 million) profit last year, a dramatic improvement from a R605.7 million loss in 2002. The good result was credited to the domestic codesharing operation with Varig as well as a fleet downsizing and...

Copa.(Latin America/ Caribbean report)(Brief Article)
May 1, 2004... Copa of Panama with the support of 49% owner Continental Airlines emerged to challenge Brazil's Grupo Sinergy for control of a reorganized Avianca. The Colombian carrier's current ownership is split 50/50 between Valores Bavaria and the...

Aerolineas del Sur.(Latin America/ Caribbean report)(Brief Article)
May 1, 2004... Aerolineas del Sur, a Chilean new entrant, is set to launch this summer, according to Aerolineas Argentinas CEO Antonio Mata. The new airline is owned by Spanish travel group Marsans, the major shareholder in Aerolineas Argentinas. Estimated...

LanChile.(Latin America/ Caribbean report)(Brief Article)
May 1, 2004... LanChile is to unify the corporate images of its four affiliated carriers--LanChile, LanPeru, LanEcuador and LanDominicana--under the single name LAN, for Latin Airlines Network, as part of its strategy to become a carrier of choice for South...

Knafaim-Arkia Holdings.(Africa/Middle East report)(Brief Article)
May 1, 2004... Knafaim-Arkia Holdings, parent of Arkia Airlines, filed a statement of intent with the Tel Aviv Stock Exchange at the end of March to exercise from Dec. options that will raise its stake in El Al Israel Airlines to 25.1%. Assuming Israel's...

Etihad Airways.(Africa/Middle East report)(Brief Article)
May 1, 2004... Etihad Airways, the new carrier of the UAE, launched its first route to the UK April 15 operating five-times-weekly A330 service linking London Heathrow and Abu Dhabi. Etihad is operating its aircraft in a three-class configuration. All...

Lufthansa Cargo AG.(Cargo)(Brief Article)
May 1, 2004... Lufthansa Cargo AG attributed a sharp plunge in 2003 pre-tax earnings from 582 million [euro] ($716.1 million) to 15.8 million [euro] to "difficult" conditions in a market characterized by surplus capacity. The company suffered an operating...

Gemini Air Cargo.(Cargo)(Brief Article)
May 1, 2004... Gemini Air Cargo selected Sam Woodward as its new chairman, president and CEO. He succeeds Tom Corcoran.

Precision Conversions.(Cargo)(Brief Article)
May 1, 2004... Precision Conversions signed a contract with ILFC to convert two 757-200s into freighters. They currently are leased to Shanghai Airlines. Pemco will begin modifying the first in Aug. and the second in Nov. Both will return to service with...

Pemco Aviation Group.(Cargo)(contract)(Brief Article)
May 1, 2004... Pemco Aviation Group is converting a 737-300 into a freighter for Titan Airways at its Dothan, Ala., facility. The contract also covers two options.

Korean Air.(Cargo)(Korean Air Lines Company Ltd.)(Brief Article)
May 1, 2004... Korean Air is expanding its cargo terminal at Incheon with a 5.2 million [euro] ($6.3 million) follow-up IT order contracted with Siemens Dematic for its automated Cargo Compact Plus control system.

Cathay Pacific.(Equipment)(Cathay Pacific Airways Ltd.)(Brief Article)
May 1, 2004... Cathay Pacific ordered six Trent 700-powered A330-300s and two Trent 800-powered 777-300s. Three of the A330s will be leased from ILFC. All aircraft will be delivered from 2005 to 2007.

Spirit Airlines.(Equipment)(contract)(Brief Article)
May 1, 2004... Spirit Airlines said it "entered into agreements" to replace its fleet of 32 MD-80s with 35 IAE V2500-powered A320-family aircraft with a value of roughly $2 billion. It has options for 60 aircraft that could push the value of the order to $5...