Air Transport World articles from May 2008

Air Transport World archives from May 2008

Trends.(passenger growth rate)(Statistical table)
May 1, 2008... IATA FARE TRACKER 2007 AVERAGE PASSENGER GROWTH PER ROUTE AREA Growth Rates (%) Number Low- of Cost Route area Premium Economy Airlines Carriers ...

The final round.(EDITORIAL)(Editorial)
May 1, 2008... So $110 oil has achieved what terrorism, SARS and the Iraq War could not: The failure of three airlines collectively representing around 1% of US domestic capacity. It is easy to forget that despite the horrendous financial losses, only one US...

Delta-Northwest could jumpstart consolidation.(News Briefs)(Delta Air Lines Inc. and Northwest Airlines Corp.)
May 1, 2008... FINANCIAL RESULTS, NEW DEALS, AND REPORTS fROM EVERY CORNER Of THE GLOBE US airline consolidation is back on the front burner now that Delta Air Lines has agreed to merge with Northwest Airlines in an all-stock transaction in which NWA...

London stalling.(News Briefs)(British Airways PLC)(Brief article)
May 1, 2008... "Definitely not British Airways' finest hour" was CEO Willie Walsh's description of the opening week fiasco at London Heathrow's new [pounds sterling]4.3 billion ($8.6 billion) Terminal 5 that resulted in hundreds of cancelled flights and...

Third 787 delay pushes first flight to autumn.(News Briefs)(Boeing Co. delays its flight)(Brief article)
May 1, 2008... As widely expected, Boeing on April 9 announced a further six-month delay to the 787 program, the third since the July 2007 rollout. First flight now is expected in the fourth quarter instead of the current quarter, with first delivery...

Oil prices claim Airlines in US, Hong Kong.(News Briefs)
May 1, 2008... Soaring fuel prices contributed to the failure this spring of three small US carriers that accounted for around 1% of US ASMs, while a fourth, larger carrier, Frontier Airlines, filed for Chapter 11 bankruptcy protection but continues to...

Airbus stalls on Power8 sales.(News Briefs)(Airbus S.A.S. terminates negotiations with MT Aerospace regarding divestiture of its industrial plants)(Brief article)
May 1, 2008... Airbus in late March said it had "terminated negotiations" with MT Aerospace regarding the divestiture of three German industrial plants, a key component of its Power8 restructuring, and conceded that talks with other companies on sales of...

AZ has enough cash for 'short term'.(News Briefs)(Linee Aeree Italiane S.p.A. acquisition talks with Air France S.A.)(Brief article)
May 1, 2008... The fate of Alitalia remained uncertain at press time following the collapse last month of acquisition talks with Air France-KLM that had the support of the AZ board. In early April, Alitalia disclosed it had [euro]170 million ($267.4 million)...

Creating a New Colossus.(FACT FILE)(Statistical table)
May 1, 2008... Creating a New Colossus Delta Northwest Employees * 48,400 29,000 Mainline fleet 446 356 2007 Revenues $19.2 billion $12.5 billion 2007 Op. Profit $1.1...

American Airlines.(HARNESSED TO THE GROUND)(airlines cancels its flight)(Brief article)
May 1, 2008... American Airlines had to cancel more than 3,000 MD-80 flights last month to carry out FAA-mandated inspections and corrective actions on wire harnesses, at a cost of tens of millions of dollars. [ILLUSTRATION OMITTED]

US airlines.(NORTH AMERICA Report)(airlines forced to cancel thousands of flights )(Brief article)
May 1, 2008... US airlines were forced to cancel thousands of flights in late March and April in the wake of FAA audits of their compliance with federal air-worthiness directives. The increased scrutiny followed an episode at Southwest Airlines in March in...

US Dept. of Transportation.(NORTH AMERICA Report)
May 1, 2008... US Dept. of Transportation tentatively approved transatlantic antitrust immunity for six SkyTeam members--Air France, Delta Air Lines, KLM, Northwest Airlines, Alitalia and CSA Czech Airlines--nearly four years after Delta and Northwest first...

United Airlines.(NORTH AMERICA Report)
May 1, 2008... United Airlines said it plans to reduce domestic capacity by an unspecified amount as it grounds 15-20 737-500s.

US Airways pilots.(NORTH AMERICA Report)(Brief article)
May 1, 2008... US Airways pilots who formerly flew for America West Airlines notified the carrier in mid-March of their intention to commence separate contract negotiations, saying they were unable to reach a joint agreement with former US Airways [East]...

Air Canada.(NORTH AMERICA Report)(Brief article)
May 1, 2008... Air Canada unveiled an a-la-carte service product via its website intended to help customers manage travel disruptions such as weather, airport and ATC delays not typically the responsibility of the airline. Customers who purchase the On My Way...

US federal appeals court.(NORTH AMERICA Report)(court strikes down New York State's new airline passenger rights law )(Brief article)
May 1, 2008... US federal appeals court in late March struck down New York State's new airline passenger rights law (ATW, 2/08, p. 24). The law mandated fines of as much as $1,000 per passenger against airlines that failed to provide food, water, clean...

Delta Air Lines.(NORTH AMERICA Report)(voting)
May 1, 2008... Delta Air Lines flight attendants will vote between April 23 and June 3 on whether to unionize. Only pilots are unionized among the company's major work groups.

JetBlue Airways.(NORTH AMERICA Report)(company to sell its aircraft)(Brief article)
May 1, 2008... JetBlue Airways said it will sell four additional A320s this year, bringing to nine the number of the type it will sell in 2008. It also plans to sell another A320 next year.

Allegiant Air.(NORTH AMERICA Report)(Allegiant Air parent Allegiant Travel Co. purchases spare parts from Finnair Oy)(Brief article)
May 1, 2008... Allegiant Air parent Allegiant Travel Co. announced the purchase from Finnair of six MD-80s and three spare engines currently leased to FlyNordic, which was sold by Finnair to Norwegian last year.

US DOT.(NORTH AMERICA Report)(Department of Transportation appoints Marie Kennington-Gardiner )(Brief article)
May 1, 2008... US DOT named Marie Kennington-Gardiner as its New York Aviation Czar. She will direct the newly formed New York Integration Office and "coordinate regional air-space issues and all projects and initiatives addressing problems of congestion and...

European Commission and DOT.(NORTH AMERICA Report)(Department of Transportation and European Union. European Commission's joint research project)(Brief article)
May 1, 2008... European Commission and DOT announced a "joint research project" to determine the impact of airline alliances on competition and the potential impact of transatlantic open skies. A report will be published in mid-2009.

GE Aviation.(NORTH AMERICA Report)(Brief article)
May 1, 2008... GE Aviation won US FAA GEnx-1B engine authority for the 787 following a two-year ground and flight test program involving eight engines and two flight test programs. The GEnx-1B, now FAR 33 certified, ran 4,800 cycles and more than 3,600 hr.

Honeywell.(NORTH AMERICA Report)(Airbus S.A.S selects Honeywell Inc. to provide surveillance equipment )(Brief article)
May 1, 2008... Honeywell was selected by Airbus to provide the FMS and Aircraft Environment Surveillance System for the A350 XWB. Honeywell said the contract would generate more than $1.5 billion in revenue over the life of the program.

Jeppesen.(NORTH AMERICA Report)
May 1, 2008... Jeppesen won FAA authority for its Airport Moving Map application for Class 2 EFB devices.

NavAero.(NORTH AMERICA Report)
May 1, 2008... NavAero received STC authority for the navAero tBag C22 as a Class II EFB on MD-82/-83/-87 series aircraft.

Goodrich.(NORTH AMERICA Report)(company contracts with Airbus S.A.S.)(Brief article)
May 1, 2008... Goodrich reached agreement with Airbus to perform MRO services on various components such as flight control surfaces, pneumatic ducting and access doors at its Alabama Service Center.

Thompson Solutions.(NORTH AMERICA Report)
May 1, 2008... Thompson Solutions was contracted by Delta Air Lines to develop its Cozy Suite economy class seat for 767ER and 777 aircraft.

Kronos.(NORTH AMERICA Report)
May 1, 2008... Kronos said Air Canada selected its Altitude Manpower Planning solution.

Sherwin Williams Aerospace Coating.(NORTH AMERICA Report)
May 1, 2008... Sherwin Williams Aerospace Coating won SAE AMS 3095 certification for its Jet Glo Express exterior painting systems.

US majors traffic March 2008*.(FACT FILE)(Statistical table)
May 1, 2008... US Majors Traffic March 2008* +/- RPMs % chg ASMs % chg. LF chg. Airline (bil.) 2007 (bil.) 2007 (%) 2007 AirTran 1.71 15.8 2.15 ...

Japan Airlines.(ASIA/PACIFIC Report)(Japan Airlines Company Ltd. agrees to pay fine)(Brief article)
May 1, 2008... Japan Airlines agreed to pay a $110 million fine as part of a plea agreement with the US Dept. of Justice related to its role in the fixing of international cargo rates. Qantas, British Airways and Korean Air already had pled guilty and agreed...

Air China and Air Macau.(ASIA/PACIFIC Report)(Air Macau Company Ltd.)(Financial report)(Brief article)
May 1, 2008... Air China and Air Macau parent Air China Ltd. posted a net profit of CNY4.23 billion ($595.5 million) in 2007, up 57.3% over the CNY2.69 billion reported in 2006, on a 14.2% lift in operating revenue to CNY51.33 billion. In addition to...

V Australia.(ASIA/PACIFIC Report)(company launches flight services from Sydney-Los Angeles )(Brief article)
May 1, 2008... V Australia, the long-haul international arm of Virgin Blue, plans to launch daily Sydney-Los Angeles on Dec. 15 using 777-300ERs configured for three classes including a business cabin with lie-flat seats. It also announced an interlining...

Chinese government.(ASIA/PACIFIC Report)(launch of jumbo aircraft manufacturing company approved by the government)(Brief article)
May 1, 2008... Chinese government officially approved the launch of the jumbo aircraft manufacturing company. The State-owned Assets Supervision and Administration Commission of the State Council will be the controlling shareholder of the new entity while the...

Vietnam's Pacific Airlines.(ASIA/PACIFIC Report)(company changes its name to Jetstar Pacific )(Brief article)
May 1, 2008... Vietnam's Pacific Airlines, in which Qantas Group purchased an 18% stake with an agreement to raise that holding to 30% in 2010, will change its name to Jetstar Pacific this month as part of a partnership with QF that will see it become...

Indonesia's National Transport Safety Committee.(ASIA/PACIFIC Report)(Brief article)
May 1, 2008... Indonesia's National Transport Safety Committee determined that the fatal Adam Air 737-400 crash on Jan. 1, 2007, was caused by pilot error and faulty navigation equipment. All 96 passengers and six crew were killed when the aircraft plunged...

Shanghai-based Spring Airlines.(ASIA/PACIFIC Report)(Financial report)(Brief article)
May 1, 2008... Shanghai-based Spring Airlines posted a record net profit of CNY70 million ($9.8 million) in 2007, more than double the previous year's result. Operating revenue rose to CNY1.23 billion. The carrier is one of the few profitable Chinese LCCs and...

Hainan Airlines.(ASIA/PACIFIC Report)
May 1, 2008... Hainan Airlines reported a net profit of CNY651.4 million ($92.2 million) in 2007, nearly quadrupling the CNY166.8 million earned the previous year, on a 3% lift in operating revenue to CNY12.82 billion. Operating expenses fell 0.4% to CNY10.29...

Tianjin-based Okay Airways.(ASIA/PACIFIC Report)(Brief article)
May 1, 2008... Tianjin-based Okay Airways will shift its focus to the regional market following delivery of two of 10 MA60 turboprops it is leasing from AVIC I. It currently operates five 737s to 22 domestic destinations but has suffered from continuous...

Qantas.(ASIA/PACIFIC Report)(Qantas Airways Ltd. allows domestic customers to use e-mail and SMS functions on their mobile phones)(Brief article)
May 1, 2008... Qantas plans to allow domestic customers to use e-mail and SMS functions on their mobile phones and PDAs beginning later this year. The technology will be installed on "a number" of domestic 767-300s and A330-200s.

Air India parent.(ASIA/PACIFIC Report)(National Aviation Co. of India names Raghu Menon chairman)(Brief article)
May 1, 2008... Air India parent National Aviation Co. of India named Raghu Menon chairman and MD replacing Vasudevan Thulasidas, whose term is concluding. Menon has been serving as special secretary and financial adviser in the Ministry of Civil Aviation.

Sri Lankan government.(ASIA/PACIFIC Report)(SriLankan Airlines Ltd. appoints P. B. Jayasundera)(Brief article)
May 1, 2008... Sri Lankan government named P. B. Jayasundera as the new chairman of SriLankan Airlines, in which the government holds 51.05%. It will seat four on the new board while Emirates, which holds 43.63%, will have three seats.

Rajiv Gandhi International Airport.(ASIA/PACIFIC Report)(Rajiv Gandhi International Airport commences commercial operations )(Brief article)
May 1, 2008... Rajiv Gandhi International Airport in Shamshabad near Hyderabad commenced commercial operations in March. The facility was developed by the GMR Infrastructure-Hyderabad International Airport consortium. Capacity is 12 million passengers...

SITA.(ASIA/PACIFIC Report)(completion of 700 workstations at Beijing Capital's Terminal )(Brief article)
May 1, 2008... SITA announced completion of 700 workstations at Beijing Capital's Terminal 3 to support Olympic Games traffic this summer. A $3 billion addition, the terminal is expected to boost annual capacity by 30 million passengers.

Boeing.(ASIA/PACIFIC Report)
May 1, 2008... Boeing's Airplane Health Monitoring software was ordered by Qantas for its fleet of 30 747-400s. QF also will use AHM for its 65 787s.

Ameco Beijing.(ASIA/PACIFIC Report)
May 1, 2008... Ameco Beijing opened a four-bay A380 hangar in March, the world's largest such facility.

China Southern Airlines and Malaysia Airlines.(CHINA-MALAYSIA PARTNERSHIP)(China Southern Airlines Company Ltd. and Malaysia Airline System Bhd. signs codeshare agreement)(Brief article)
May 1, 2008... China Southern Airlines and Malaysia Airlines signed an expanded codeshare agreement in Guangzhou in March that will include sales of tickets by each carrier for travel to regional destinations in the other country. CZ began codesharing with...

European Commission.(EUROPE Report)(European Union. European Commission adopts to harmonize technical and licensing requirements for the use of mobile phones )(Brief article)
May 1, 2008... European Commission in early April adopted a set of measures to harmonize technical and licensing requirements for the use of mobile phones onboard aircraft across the EU's 27 member states. Separately, OnAir and Air France launched a trial...

Ryanair.(EUROPE Report)(Ryanair Ltd. closes its telesales operations)(Brief article)
May 1, 2008... Ryanair will impose a pay freeze on senior management and close its Dublin Telesales Operation at the end of May, eliminating up to 40 positions, as it seeks to cut costs by some [euro]400 million ($621.3 million). CEO Michael O'Leary said...

Turkish Airlines.(EUROPE Report)
May 1, 2008... Turkish Airlines celebrated its entry into Star Alliance April 1 as well as an 80% increase in full-year profit to $224 million, saying the figure would have been higher if not for foreign exchange-related losses. THY reported a $132 million...

TAP Portugal.(EUROPE Report)(Financial report)(Brief article)
May 1, 2008... TAP Portugal reported its "best year ever" in 2007 with a net profit of [euro]32.8 million ($51.2 million) that represented a more-than-fourfold increase over the [euro]7.3 million earned in 2006 as operating profit more than doubled to...

EasyJet.(EUROPE Report)(Brief article)
May 1, 2008... EasyJet said it successfully completed the operational integration of GB Airways following the transition of 15 GB aircraft into its new EU-Ops Air Operators Certificate. It is the first major airline to operate under the new European...

Norwegian.(EUROPE Report)
May 1, 2008... Norwegian dropped the FlyNordic brand from April 5 and fully integrated the Stockholm-based carrier. Norwegian bought FlyNordic from Finnair last year.

Brussels Airlines.(EUROPE Report)(Financial report)(Brief article)
May 1, 2008... Brussels Airlines said its 2007 net profit nearly doubled to [euro]23.1 million from [euro]13.9 million in 2006, but warned that "high fuel prices, rising inflation, decreasing consumer confidence and increasing competition" will affect current...

FL Group.(EUROPE Report)(Brief article)
May 1, 2008... FL Group sold all of its remaining 16.3 million shares in Finnair, representing a 12.7% stake. Neither company revealed the buyer[s], but FL said the transaction was valued at ISK13.6 billion ($174.4 million).

AiRUnion.(EUROPE Report)(Gustav Baldauf )(Brief article)
May 1, 2008... AiRUnion COO Gustav Baldauf told ATW last month that the airline group comprising KrasAir, Domodedovo Airlines, Samara Airlines, Omskavia and Sibaviatrans is making every effort to get its own AOC by June. When it occurs, it will begin to merge...

FlyLAL Lithuanian Airlines.(EUROPE Report)
May 1, 2008... FlyLAL Lithuanian Airlines has been invited to join SkyTeam as an associate member. It currently operates eight 737 Classics and four Saab 2000s.

Air Greenland.(EUROPE Report)(pretax earnings)(Financial report)(Brief article)
May 1, 2008... Air Greenland reported pretax earnings of DKK73.2 million ($15.4 million) in 2007, a result it said was "considerably better than anticipated" but that represented a 2.4% decrease from the DKK75 million profit earned in 2006.

Iberia Maintenance.(EUROPE Report)(Iberia Lineas Aereas de Espana S.A. contracts with Aurora Airlines)(Brief article)
May 1, 2008... Iberia Maintenance signed an agreement with Slovenia's Aurora Airlines to provide component MRO and inspection services on MD-80 aircraft at its Madrid shop through December 2011. It reached a five-year deal with Air Europa for MRO services on...

MNG Technic.(EUROPE Report)(MNG Airlines A.S. contracts with Air Slovakia's charter carrier)(Brief article)
May 1, 2008... MNG Technic will perform C checks on Air Slovakia's single 737 and 757 as well as UK charter carrier Flightline's only MD-83. Work will begin this month.

Sabena Technics.(EUROPE Report)
May 1, 2008... Sabena Technics signed a three-year aircraft maintenance services agreement with Brussels Airlines covering its 10 737s and four A330s.

Turkish Technic.(EUROPE Report)
May 1, 2008... Turkish Technic reached agreement with Hamburg International for re-delivery maintenance on three 737-700s.

Amadeus.(EUROPE Report )(Deutsche Lufthansa AG contracts with Amadeus AG)(Brief article)
May 1, 2008... Amadeus completed Lufthansa's migration to its Star Alliance Common IT Platform inventory management module. Migration covered inventory control, 700,000 flight schedules and 40 existing applications. System is based on Amadeus's Altea...

Lufthansa Systems.(EUROPE Report)
May 1, 2008... Lufthansa Systems will continue to provide its Lido Operation Center flight planning solution to Finnair under a five-year contract extension.

AerCap Holdings.(EUROPE Report)
May 1, 2008... AerCap Holdings subsidiary AeroTurbine reached a 10-year deal with British Airways for the purchase, sale and lease of components including wheels and brakes.

Jet Aviation Handling.(EUROPE Report)
May 1, 2008... Jet Aviation Handling will be rebranded as Dnata Switzerland. Dnata acquired the Swiss airport services provider in November 2007.

Iberia Handling.(EUROPE Report)(Iberia Lineas Aereas de Espana S.A. provides handling services )(Brief article)
May 1, 2008... Iberia Handling will provide First Choice with handling services for its 4,000 flights to Spain during the summer and winter seasons. Contract covers all Spanish airports.

Sukhoi Civil Aircraft.(EUROPE Report)
May 1, 2008... Sukhoi Civil Aircraft purchased the Pacelab Cabin solution in order to develop customer-specific cabin configurations and "promote sales" of the Superjet 100 regional aircraft.

Dunlop Aircraft Tyres.(EUROPE Report )(Dunlop Aerospace contracts with SR Technics)(Brief article)
May 1, 2008... Dunlop Aircraft Tyres reached an exclusive three-year deal worth more than [pounds sterling]1.6 million ($3.19 million) with SR Technics to supply tires for F100s and unspecified Boeing aircraft to SRT maintenance bases in Europe and the Middle...

Gate Gourmet.(EUROPE Report)
May 1, 2008... Gate Gourmet signed a long-term contract with Norwegian to provide onboard catering and provisioning across the LCC's system.

European airline traffic March 2008.(FACT FILE)(Statistical table)
May 1, 2008... European Airline Traffic March 2008 Airline RPKs % ASKs % Load +/- (billions) chg. (billions) chg. factor 2007 2007 2007 (%) Aer 1.42...

Aer Lingus shareholders.(IRISH EYES ARE SMILING)
May 1, 2008... Aer Lingus shareholders approved the carrier's plans to purchase six A350-900s and six A330-300s, confirming the previously announced contract. [ILLUSTRATION OMITTED]

Mexicana.(LATIN AMERICA/CARIBBEAN Report)(Mexicana Airlines contracts with LAN Airlines S.A.)
May 1, 2008... Mexicana accepted a formal invitation to join the oneworld alliance, giving the group 11 members and a second Latin American foothold; LAN Airlines joined in 2000. Iberia will be the sponsor carrier for Mexicana and its Click Mexicana...

Tam.(LATIN AMERICA/CARIBBEAN Report)(sales and earnings of TAM Linhas Aereas S.A.)(Brief article)
May 1, 2008... TAM's 2007 net income dropped 78.9% to BRL128.8 million ($74 million) as it contended with both the aftermath of the July A320 midair collision that killed 199 people and ongoing ATC problems in Brazil. It called 2007 "a year of many...

Blue Wing Airlines.(LATIN AMERICA/CARIBBEAN Report)(Brief article)
May 1, 2008... Blue Wing Airlines An-28 crashed April 4 after aborting a landing at an airstrip near Benzdorp in northern Suriname. All 17 passengers and two crew were killed, according to press reports and Flight Safety Foundation's Aviation Safety Network....

Star Alliance.(LATIN AMERICA/CARIBBEAN Report)(Star Alliance Services GmbH)(Brief article)
May 1, 2008... Star Alliance expects to make an announcement regarding a new Latin American partner this year, CEO Jaan Albrecht told ATW on the occasion of Turkish Airlines' joining in Istanbul. He acknowledged that it is "no secret" Star is talking to TAM...

Avianca.(LATIN AMERICA/CARIBBEAN Report)(Aerovias Nacionales de Colombia S.A. contracts with GE Aviation )(Brief article)
May 1, 2008... Avianca inked a $750 million, 15-year OnPoint solution deal with GE Aviation for MRO services on CFM56-5Bs powering 50 A319s and A320s. Work will be conducted at GE's facility in Petropolis, Brazil.

Alaska Air Group.(LEASING & FINANCE BRIEFS)(Alaska Air Group Inc. repurchases common stock)(Brief article)
May 1, 2008... Alaska Air Group board authorized the repurchase of an additional $50 million in common stock. It recently bought back 10% of its outstanding stock for $100 million.

AWAS.(LEASING & FINANCE BRIEFS)(company contracts with Airbus S.A.S.)(Brief article)
May 1, 2008... AWAS said it finalized the purchase of six new A330-300s from Airbus for lease to Singapore Airlines. Transaction is valued at $1.2 billion at list prices and first delivery will be next year.

CIT Aerospace.(LEASING & FINANCE BRIEFS)
May 1, 2008... CIT Aerospace will lease two new IAE V2524-A5-powered A319-100s to Tiger Airways Australia.

AerCap Holdings.(LEASING & FINANCE BRIEFS)
May 1, 2008... AerCap Holdings will lease 10 new A330-200s to Aeroflot for 9-10-year periods with deliveries beginning in November and extending to April 2010.

BOC Aviation.(LEASING & FINANCE BRIEFS)(BOC Aviation contracts with Air Canada)(Brief article)
May 1, 2008... BOC Aviation announced a sale/leaseback deal with Air Canada covering two new 777-300ERs that delivered in March and April. Lease deals are for 12 years each.

China Southern Airlines.(LEASING & FINANCE BRIEFS)(China Southern Airlines Company Ltd's lease agreements)(Brief article)
May 1, 2008... China Southern Airlines will sell and lease back five A321-200s in order to reduce its high debt ratio, it said in a filing with the Shanghai Stock Exchange. CZ said it will transfer ownership of three aircraft to China Aircraft Leasing Co. and...

Frontier Airlines.(LEASING & FINANCE BRIEFS)(Frontier Airlines Inc.'s lease agreement with Rossiya Airlines)(Brief article)
May 1, 2008... Frontier Airlines reached agreement to sell two of its 49 A319s and two of its 11 A318s to VTB Leasing, which in turn will lease them to St. Petersburg-based Rossiya Airlines. SkyWorks Leasing arranged the sale. Financial terms were not...