Air Transport World articles from May 2007

Air Transport World archives from May 2007

World Airline Traffic.(TRENDS)
May 1, 2007... WORLD AIRLINE TRAFFIC [GRAPHIC OMITTED]

Jet Fuel Prices.(TRENDS)(Statistical table)(Brief article)
May 1, 2007... JET FUEL PRICES March 23, 2007 New York 184.46 US Gulf Coast 181.01 Los Angeles 187.24 Rotterdam 179.58 Singapore 176.92 *Spot cash markets (average). Source: US Dept. of Energy

Top 20 Airlines System Traffic: January-March 2007.(TRENDS)(Statistical table)(Brief article)
May 1, 2007... [ILLUSTRATION OMITTED] TOP 20 AIRLINES SYSTEM TRAFFIC JANUARY-MARCH 2007 RANK AIRLINE RPKs (000) 1 American 52,399,183 2 Air France KLM 47,648,000 3 United ...

Take what they will give you.(European Council and US open skies agreement )(Editorial)
May 1, 2007... We'll admit to having been caught off guard by the European Council's approval of the US-EU open skies agreement (set to be signed formally at the end of April). With Washington having withdrawn its foreign control NPRM last fall and two...

Transatlantic dance begins.(News Briefs)(United States- Europe open skies agreement)
May 1, 2007... The US-EU open skies agreement approved by the European Council in late March will not take effect until March 30, 2008, but partners already are aligning in anticipation. United Airlines and bmi refiled their request for antitrust immunity to...

Texas Pacific eyes Iberia.(News Briefs)(Brief article)
May 1, 2007... Iberia received a takeover approach from Texas Pacific Group on March 30 that values the Spanish flag carrier at [euro]3.60 per share or about [euro]3.4 billion ($4.5 billion). Iberia has indicated it is open to a sale or partial sale. TPG...

Air Berlin acquires LTU.(News Briefs)(Lufttransport-Unternehmen Gesellschaft mit beschraenkter Haftung und Company KG)(Brief article)
May 1, 2007... Air Berlin, continuing its strategy of buying up troubled German airlines, in late March acquired LTU for [euro]140 million. The deal, which is subject to approval from competition authorities, comes eight months after it purchased another...

FAA to speed use of safety devices.(News Briefs)(Federal Aviation Administration )(Brief article)
May 1, 2007... US FAA said March 23 it is streamlining the certification process for technology that will allow pilots to view their aircraft's "own ship" position on runways and taxiways via a moving map display using GPS technology similar to devices...

Marriage of Opposites in Brazil.(News Briefs)(Gol Transportes Aereos acquires Varig)(Brief article)
May 1, 2007... Gol reached an agreement March 28 to acquire Varig from VarigLog and Volo for $320 million consisting of $98 million in cash, $177 million in Gol stock and the assumption of $45 million in Varig debt, subject to government approval. The...

IATA sees brighter 2007-08.(News Briefs)(International Air Transport Association)(Brief article)
May 1, 2007... IATA last month raised its 2007 global airline net profit forecast to $3.8 billion from $2.5 billion and projected a 2008 collective industry net profit of $7.6 billion, pointing to "better than expected traffic coupled with careful control of...

LHT forecasts landing gear shortage for MRO.(Deutsche Lufthansa AG)(Maintenance, Repair & Operations )(Brief article)
May 1, 2007... There is a potential capacity crunch looming for landing gear MRO, according to Lufthansa Technik Director-Business Unit, Landing Gear Hamburg Michael Kirstein. Maintenance capacity has not increased lately, he said, while the global market for...

Airline Partners Australia.(bids for Qantas)(Brief article)
May 1, 2007... Airline Partners Australia in mid-April extended its A$11.1 billion ($9.16 billion) bid for Qantas until May 4 and lowered the tendering threshold to 70% from 90%. The reduction was designed to either sidestep or pressure two large...

Qantas.(enhances operations)(Brief article)
May 1, 2007... Qantas will boost its domestic operation with nine A320s to be delivered from late 2007 and used by Jetstar as it girds for the arrival of Tiger Airways Australia. That airline was given the green light in late March by Australia's Foreign...

Air India and Indian Airlines.(merger)(Brief article)
May 1, 2007... Air India and Indian Airlines are set to combine under the newly formed National Aviation Co. Ltd. Accenture is advising the government on the merger, which is expected to be complete by June. No decision has been made on the brand, logo or...

Jet Airways and Air Sahara.(acquisition agreement)(Brief article)
May 1, 2007... Jet Airways and Air Sahara signed an acquisition agreement, with Jet agreeing to pay INR14.5 billion ($338.2 million) in a deal that will give it control of about half the Indian domestic market. The purchase price is 32.4% below what the...

Air China Ltd.(ASIA/PACIFIC Report)(Brief article)
May 1, 2007... Air China Ltd., parent of Air China and Air Macau, earned CNY3.19 billion ($411.8 million) in 2006, up 86.7% over 2005, on a 17.4% lift in revenue to CNY44.9 billion. Operating expenses increased 22.5% to CNY42.4 billion, with jet fuel...

Shandong Airlines.(ASIA/PACIFIC Report)(Shandong Airlines Company Ltd. )(Brief article)
May 1, 2007... Shandong Airlines posted net income of CNY44 million ($5.7 million) in 2006, reversing a loss of CNY273.6 million in 2005, on a 45.2% lift in operating revenue to CNY4.2 billion. Operating expenses increased 38% to CNY3.4 billion. Boardings...

China Southern Airlines.(plns to partner with Chongqing Investment Corp. )(Brief article)
May 1, 2007... China Southern Airlines plans to partner with Chongqing Investment Corp. to create Chongqing Airlines, which is expected to launch operations in June with three A320s and challenge Air China and China Eastern Airlines, the dominant players in...

Shenzhen Airlines.(ASIA/PACIFIC Report)
May 1, 2007... Shenzhen Airlines posted a record profit of CNY360 million ($46.5 million) in 2006, more than triple the previous year's result, on a 40.1% jump in operating revenue to CNY6.45 billion. Passenger boardings grew 24.3% year-over-year to 7.1...

Garuda.(ASIA/PACIFIC Report)(Brief article)
May 1, 2007... Garuda said it posted a IDR131 billion ($14.4 million) profit in the first two months of 2007, a period in which it has lost money in each of the past three years. It suffered a IDR173.9 billion loss in the first two months of 2006. It cited a...

AirAsia's.(ASIA/PACIFIC Report)(AirAsia Sdn. Bhd. plans its low cost carrier service)(Brief article)
May 1, 2007... AirAsia's planned low-cost, long-haul AirAsia X service, originally scheduled to start in July with flights to the UK, likely will be delayed until next year owing to lack of aircraft, according to press reports.

Lufthansa Technik.(opens heavy maintenance facility in india)(Brief article)
May 1, 2007... Lufthansa Technik said it will become the first international MRO provider to establish an Indian base when it opens a 20,000-sq.-m. A320/737 heavy maintenance facility outside Hyderabad at the end of next year. LHT, which is partnering with...

Goodrich.(supplies parts to Japan Airlines Company)(Brief article)
May 1, 2007... Goodrich will supply wheels and electrically actuated brakes for Japan Airlines' 30 787s. It also reached a deal with Shanghai Airlines to supply wheels and electrically actuated brakes for nine 787s.

Boeing.(contract with Nippon Cargo Airlines Company)(Brief article)
May 1, 2007... Boeing reached a deal with Nippon Cargo Airlines to manage "a significant portion" of the carrier's spare parts inventory under its Integrated Materials Management program. Boeing said JAL will install Class 3 EFBs on two new 777s to be...

Honeywell.(ASIA/PACIFIC Report)(contracts with Cathay Pacific Airways Ltd.)(Brief article)
May 1, 2007... Honeywell will provide its RDR-4000 next-generation windshear/weather radar system and other avionics to Cathay Pacific for use on 18 firm and 18 option 777-300ERs. Value of the contract through 2014 is $35 million.

Lufthansa Systems.(ASIA/PACIFIC Report)
May 1, 2007... Lufthansa Systems signed a five-year deal with China Southern Airlines to provide its NetLine network management tool. Implementation is scheduled for late this year.

Thai Airways.(ASIA/PACIFIC Report)
May 1, 2007... Thai Airways will perform heavy MRO on 11 ANA 747-400s at its new maintenance center at Suvarnabhumi. Work will be completed by next year.

Airlogica.(ASIA/PACIFIC Report)
May 1, 2007... Airlogica will provide its Zeus GDS cost-monitoring software to Kingfisher Airlines.

US Dept. of Transportation.(NORTH AMERICA Report)(Department of Transportation certifies to Virgin America Inc.)(Brief article)
May 1, 2007... US Dept. of Transportation on March 20 tentatively approved Virgin America's plan to "reconfigure its ownership and management structure" and said the carrier could earn its operating certificate if it meets certain conditions, including...

American Airlines.(NORTH AMERICA Report)(contracts with Boeing Co.)(Brief article)
May 1, 2007... American Airlines will expedite both the delivery of the 47 737-800s it has on order and the replacement of a portion of its MD-80 fleet, CEO Gerard Arpey said during a presentation to investors, adding that AA's agreement with Boeing "gives us...

Delta Air Lines CEO Gerald Grinstein.(NORTH AMERICA Report)(Brief article)
May 1, 2007... Delta Air Lines CEO Gerald Grinstein will be the lone current DL executive on the new 11-person board of directors that was to be installed upon the carrier's emergence from bankruptcy expected on April 30. Chairman of the airline will be...

Northwest Airlines'.(NORTH AMERICA Report)(Brief article)
May 1, 2007... Northwest Airlines' disclosure statement was approved by a US Bankruptcy Court in late March, clearing the way for the company to seek approval from creditors for its plan to emerge from Chapter 11 by the end of the second quarter. In its...

ATA Airlines.(NORTH AMERICA Report)(acquires World Airways Inc.)(Brief article)
May 1, 2007... ATA Airlines parent ATA Holdings reached agreement to acquire World Air Holdings, parent of World Airways and North American Airlines, for $315 million in cash or $12.50 per share, a 56% premium on the average closing price of World stock for...

US Federal Communications Commission.(NORTH AMERICA Report)(ban on the use of mobile phones)(Brief article)
May 1, 2007... US Federal Communications Commission on April 3 said it was terminating its review of its December 2004 proposal to lift its ban on the use of mobile phones and PEDs on commercial aircraft, citing "insufficient technical information on whether...

Air Canada.(NORTH AMERICA Report)(awards to Canadian Union of Public Employees)(Brief article)
May 1, 2007... Air Canada said that an arbitrator awarded approximately 6,000 flight attendants represented by the Canadian Union of Public Employees a 2% wage increase effective July 2006, another 1.75% increase effective in July 2007 and an additional 1.75%...

Sabre Holdings'.(NORTH AMERICA Report)(Silver Lake Partners and Texas Pacific Group acquires Sabre Holdings Corp.)(Brief article)
May 1, 2007... Sabre Holdings' acquisition by Silver Lake Partners and Texas Pacific Group was completed at the end of March. Sabre stockholders will receive $32.75 per share in cash in a transaction valued at $5 billion including the assumption of $550...

Pratt & Whitney.(NORTH AMERICA Report)(plans for new engine)(Brief article)
May 1, 2007... Pratt & Whitney expects to be able to bring its proposed Geared Turbofan to market by 2012. Engine is aimed at the eventual successors to the 737 and A320, although Airbus and Boeing executives have said that a 737/A320 replacement will not be...

Crane Aerospace & Electronics.(NORTH AMERICA Report)
May 1, 2007... Crane Aerospace & Electronics was selected by Boeing to supply the onboard weight and balance system for the 777 freighter.

SITA.(NORTH AMERICA Report)
May 1, 2007... SITA will implement its BagManager tracking and baggage reconciliation system at New York JFK's Terminal 4.

ARINC Engineering Services.(NORTH AMERICA Report)
May 1, 2007... ARINC Engineering Services opened an 81,000-sq.-ft. aircraft modification and operations facility at Oklahoma City's Will Rogers World Airport.

Naverus.(NORTH AMERICA Report)
May 1, 2007... Naverus was designated by US FAA as the first RNP Approval Consultant.

Sensis.(NORTH AMERICA Report)
May 1, 2007... Sensis said Continental Airlines has subscribed to its Aerobahn Service of Web-based tools to monitor and manage taxiway and ramp traffic at Houston Intercontinental.

Virgin America.(NORTH AMERICA Report)
May 1, 2007... Virgin America will partner with EchoStar Communications to provide live inflight satellite entertainment including Dish Network television, pay-per-view movies, music and games.

Alitalia.(EUROPE Report)
May 1, 2007... Alitalia has attracted the interest of Aeroflot, Italy's Ministry of Economy and Finance confirmed in early April. The Russian carrier will team up with Italian bank UniCredit, which will control 5% of the bidding group. The Moscow Times...

European Commission.(EUROPE Report)(Deutsche Lufthansa AG acquires KarstadtQuelle AG)(Brief article)
May 1, 2007... European Commission cleared KarstadtQuelle's acquisition of Lufthansa's 50% share in Thomas Cook for [euro]800 million ($1.07 billion). LH will raise its stake in Condor Airlines from 10% to 24.9% as part of the deal.

Ryanair.(plns on a low fare airline)(Brief article)
May 1, 2007... Ryanair CEO Michael O'Leary told reporters last month that he plans to launch a low-fare transatlantic airline within 3-4 years. "We've been approached by a number of airports in the US who are very keen to see us start a long-haul, low-fare...

TUI AG.(EUROPE Report)(financial report)(Brief article)
May 1, 2007... TUI AG suffered a stunning [euro]846.6 million ($1.13 billion) loss in 2006, reversed from a [euro]496.3 million profit the year before, owing to restructuring expenses and required depreciation. Revenue rose 12.7% to [euro]20.51 billion and...

British Airways.(EUROPE Report)(imposes fine for illegal travel agent compensation scheme)(Brief article)
May 1, 2007... British Airways lost its appeal at the European Court of Justice against a [euro]6.8 million ($9 million) fine imposed by the EC in July 1999 following a complaint by Virgin Atlantic Airways for "abuse of a dominant position" in the UK market...

Iberia.(EUROPE Report)(Iberia Lineas Aereas de Espana S.A. reaches labor agreement)(Brief article)
May 1, 2007... Iberia reached a labor agreement with its 4,200 flight attendants that will include the conversion of 260 temporary contracts into permanent positions, pay raises linked to company performance, a lump payment of more than [euro]7 million ($9.3...

Turkish Airlines.(EUROPE Report)(financial report)(Brief article)
May 1, 2007... Turkish Airlines recorded a $132 million net profit last year that represented a 31.4% increase over the prior year's net earnings of TRY138.2 million ($100.5 million). The comparison is based on capital market bond standards and does not...

LOT Polish Airlines.(EUROPE Report)(financial report and appointment of Piotr Siennicki)(Brief article)
May 1, 2007... LOT Polish Airlines reported a PLN539.8 million ($182.6 million) profit in 2006, largely from asset sales. A comparison with 2005 was not provided, but according to ATW's 2006 "World Airline Report," LOT earned $27.3 million that year. ...

Flyglobespan.(EUROPE Report)(financial report)(Brief article)
May 1, 2007... Flyglobespan had a pre-tax profit of [pounds sterling]4.7 million in the fiscal year ended Oct. 31, 2006, down 24.2% from a [pounds sterling]6.2 million pre-tax profit in the prior year, according to the Scottish LCC's annual report cited by...

Air One.(EUROPE Report)(financial report)(Brief article)
May 1, 2007... Air One suffered a 62.5% decline in full-year 2006 earnings to [euro]6 million ($8.1 million) from a 2005 profit of [euro]16 million that was boosted by [euro]14 million in special gains, according to a statement cited by AFX News. The Italian...

Cyprus Airways'.(EUROPE Report)
May 1, 2007... Cyprus Airways' 2006 full-year loss narrowed to CYP7.2 million ($16.5 million) from CYP22.6 million in 2005 as it began to benefit from its restructuring initiatives.

UTair Tu-134.(crashes kills 6)(Brief article)
May 1, 2007... UTair Tu-134 crashed at Samara Airport on March 17, killing six passengers. According to reports, the aircraft landed 400 m. short of the runway and flipped over after the left wing touched the ground. There were 50 passengers and seven crew...

The EC.(NORTH AMERICA Report)(The European Commission)(Brief article)
May 1, 2007... The EC expressed dissatisfaction with the application of its air passenger rights regulation. Carriers and member states now have six months effectively to implement the two-year-old rule or face sanctions.

UK Office of Fair Trading.(investigates BAA for antitrust activities)(Brief article)
May 1, 2007... UK Office of Fair Trading in late March officially referred BAA, operator of seven UK airports including London's Heathrow, Gatwick and Stansted, to the country's Competition Commission for a formal antitrust investigation that could lead to...

European transport ministers.(EUROPE Report)(Brief article)
May 1, 2007... European transport ministers established an "equalization mechanism" or fund to ensure airlines launching new services over Siberia do not gain competitive advantage over those currently paying over-flight charges, which are set to phased out...

EADS.(EADS Airbus GmbH appoints Rudiger Grube )(Brief article)
May 1, 2007... EADS named Rudiger Grube co-chairman of the board, replacing Manfred Bischoff, who resigned to become chairman of DaimlerChrysler. Grube joins co-Chairman Arnaud Lagardere of France. Bischoff had been co-chairman since 2000 and Grube has been a...

EADS and Russia's United Aircraft Corp.(sign agreements for Aeroflot Russian Airlines' order)(Brief article)
May 1, 2007... EADS and Russia's United Aircraft Corp. signed four cooperation agreements in late March in conjunction with Aeroflot's order for 22 A350 XWBs. The first establishes Russia's role in A350 construction and pledges 5% airframe participation. The...

Rockwell Collins.(Air Berlin selects equipments)(Brief article)
May 1, 2007... Rockwell Collins said Air Berlin selected the MultiScan Hazard Detection System, Multi Mode Receiver and Passenger Address Unit for 85 737NGs scheduled to begin delivering in April 2008.

N3 Engine Overhaul Services.(recieve European Aviation Safety Agency approval)(Brief article)
May 1, 2007... N3 Engine Overhaul Services, the Lufthansa Technik/Rolls-Royce joint venture, received EASA approval to perform maintenance on Trent 500s with approval for the Trent 700 and 900 expected this summer.

Lufthansa Technik.(EUROPE Report)
May 1, 2007... Lufthansa Technik launched a dedicated Web suite allowing aircraft operators to monitor and manage all aspects of their fleets' technical operations via the Internet.

GKN Aerospace.(to triple MRO operation by 2012)(Brief article)
May 1, 2007... GKN Aerospace, already a significant presence in the OEM market, announced its intention to triple its after-market MRO operation by 2012. Its current maintenance business accounts for approximately 15% of its $1.5 billion in annual sales.

Pratt & Whitney Global Service Partners.(EUROPE Report)
May 1, 2007... Pratt & Whitney Global Service Partners signed a seven-year engine management program deal with Martinair covering on-wing performance monitoring services for the carrier's 59 PW4000s.

Sabre Travel Network.(EUROPE Report)
May 1, 2007... Sabre Travel Network signed British Airways to a new three-year, full-content distribution agreement.

Amadeus.(EUROPE Report)
May 1, 2007... Amadeus said KLM, Kenya Airways and Martinair successfully switched to Altea Reservation.

Jeppesen.(EUROPE Report)
May 1, 2007... Jeppesen will provide its Carmen Crew Pairing and Carmen Crew Rostering tools to Turkish Airlines under a long-term agreement.

Discover the World Marketing.(EUROPE Report)
May 1, 2007... Discover the World Marketing now is representing Icelandair in Spain and Portugal.

Fraport.(invests in Xi'an Airport)(Brief article)
May 1, 2007... Fraport announced an investment of "approximately" [euro]50 million ($66.9 million) to take a 24.5% share of Xi'an Airport. It marks the first investment by a foreign airport operator in an unlisted Chinese airport, Fraport said.

Mexico's Lineas Aereas Azteca.(suspends operations)(Brief article)
May 1, 2007... Mexico's Lineas Aereas Azteca had its operations suspended in late March for safety and financial violations, according to Reuters. The domestic airline, which launched in June 2001, operated six 737-300s and two -700s, according to the Ascend...

TAM.(1st quarter results)(Brief article)
May 1, 2007... TAM reported a BRL808.8 million ($389 million) profit for 2006, up 89.6% over 2005 earnings of BRL426.5 million, according to US GAAP accounting standards. Varig's near-death experience and Gol's lower-than-expected earnings in a year touched...

Brazil's.(LATIN AMERICA/CARIBBEAN Report)(Air Traffic Control Association)(Brief article)
May 1, 2007... Brazil's air traffic control system will transfer from military to civilian control following a one-day walkout in late March by top-level ATC officials that forced the temporary closure of airports throughout the country and again highlighted...

US and Argentina.(LATIN AMERICA/CARIBBEAN Report)(Brief article)
May 1, 2007... US and Argentina reached an expanded air services agreement that will raise the number of possible weekly passenger flights between the countries from 56 to 77 immediately and to 112 by March 2009.

Amadeus.(LATIN AMERICA/CARIBBEAN Report)
May 1, 2007... Amadeus said Mexico's vivaAerobus and Colombia's AerOasis signed to adopt its customer management IT solution for low-cost carriers.

VEM.(LATIN AMERICA/CARIBBEAN Report)
May 1, 2007... VEM completed its sixth 767 freighter conversion, its first for ABX Air, in Porto Alegre. VEM is working in conjunction with Israel Aerospace Industries.

Royal Jordanian.(AFRICA/MIDDLE EAST Report)
May 1, 2007... Royal Jordanian became the first Middle East carrier to enter an alliance when it officially joined oneworld on March 28. The ceremony in Amman marked the start of a significant expansion for the alliance that also included Japan Airlines,...

Air Arabia.(completes Initial public offerings)(Brief article)
May 1, 2007... Air Arabia completed its IPO, the first for an airline in the Arab world, with approximately 40,000 subscribers buying up 2.57 billion shares representing 55% of share capital. It said the AED2.57 billion ($698.8 million) offering was 150%...

New Gulf Air CEO.(Ahmed Al Hammadi, Tariq Sultan and Units Ali Murtada leave New Gulf Air)(Brief article)
May 1, 2007... New Gulf Air CEO Andre Dose announced a reduction of his senior staff. VP-Finance Ahmed Al Hammadi, VP-Services Tariq Sultan and VP-Business Units Ali Murtada will be leaving the airline.

South African Airways.(needs restructuring)(Brief article)
May 1, 2007... South African Airways "needs a full-scale restructuring to return to profitability," CEO Khaya Ngqula said in late March while announcing the start of a "comprehensive" revamp "that will include all levels of the organization." SAA previously...

Societe de Promotion d'une Compagnie Aerienne Regionale.(AFRICA/MIDDLE EAST Report)(Brief article)
May 1, 2007... Societe de Promotion d'une Compagnie Aerienne Regionale is the name of a new consortium of West African banks and private investors that intends to fund and launch a multinational airline by December. SPCAR is headed by Ecobank Chairman and...

Jazeera Airways.(AFRICA/MIDDLE EAST Report)
May 1, 2007... Jazeera Airways in late March announced the submission of its application for listing on the Kuwait Stock Exchange. NBK Capital is financial adviser.

Saudi Arabian Airlines.(AFRICA/MIDDLE EAST Report)
May 1, 2007... Saudi Arabian Airlines will sell 49% of its catering unit to a coalition of Saudi and Spanish firms, according to the Arab Air Carriers Organization.

Sabre Airline Solutions.(AFRICA/MIDDLE EAST Report)
May 1, 2007... Sabre Airline Solutions said Emirates implemented the Sabre AirFlite schedule planning solution, replacing its PC AirFlite product.