Air Transport World articles from November 2003

Air Transport World archives from November 2003

Trend.(Airlines)(Illustration)
November 1, 2003... Top 20 Airlines January-September 2003 Airline RPKs (000) 1 American 145,545,546 2 United 124,390,866 3 Delta 118,251,408 4 Northwest 83,161,430...

Let them merge.(Editorial)(Air France)(KLM Royal Dutch Airlines)
November 1, 2003... After many false starts, it looks as if the long-anticipated consolidation among Europe's former flag carriers finally may be getting underway. The recent announcement by Air France and KLM that they intend to join forces could set off a chain...

Air France, KLM look to complete merger by March.
November 1, 2003... Air France and KLM expected to take their proposed consolidation agreement to the European Commission at the end of last month as the carriers proceed toward a goal of completing their historic combination next March. Under terms of a letter of...

Swiss is oneworld bound.(Deutsche Lufthansa AG)(Swiss International Air Lines AG)
November 1, 2003... Swiss International Air Lines rebuffed a Lufthansa offer for a merger and entrance into the Star Alliance and instead accepted an invitation to become the ninth member of oneworld while also agreeing to transfer eight of 14 daily slot pairs at...

EC to redress 'state aid' for non-EU airlines.
November 1, 2003... In a response largely to unhappiness over the level of government aid given to US airlines following 9/11, the EU Transport Council voted unanimously last month to grant the EC authority to impose duties on airlines from non-EU member states...

IAC to buy Hotwire for $685 million.(IAC/InterActiveCorp. )
November 1, 2003... IAC/InterActiveCorp. entered into an agreement to acquire US discount travel website Hotwire for $665 million in cash plus assumption of about $20 million of options and warrants. Following the acquisition, Hotwire will remain a separate...

Boeing, Bedek, to offer 747-400 conversions.
November 1, 2003... Boeing Commercial Aviation Services and Bedek Aviation within weeks of one another announced plans to offer 747-400 passenger-to-freighter conversions. Bedek struck first in late Sept., announcing a program that will provide a converted...

First A319 fot easyJet.
November 1, 2003... First A319 for easyJet arrived in Sept. The airline has ordered 120.

Quote of the month.(Leo van Wijk, KLM Royal Dutch Airlines)
November 1, 2003... "KLM has been pointing out the need for consolidation in light of the challenges facing our industry, and we have not made it a secret we were looking for a strong European partner. Though this innovative partnership with Air France and our...

Lufthanza.(Europe report)(Deutsche Lufthansa AG)
November 1, 2003... Lufthansa early last month unveiled its new business class that will be installed initially on all A340-600s and A330-300s and eventually on the airline's entire long-haul fleet of 80 aircraft. The revamped cabin, in which LH invested 300...

Ryanair.(Europe report)
November 1, 2003... Ryanair halted service on its Strasbourg-London Stansted route after the Nancy Court of Appeals rejected the no-frills carrier's application for a stay of a decision by the Administrative Tribunal in Strasbourg requiring the Strasbourg Chamber...

British Airways.(Europe report)
November 1, 2003... British Airways' 12,000 administrative workers accepted a 3% pay increase and the use of the controversial swipe-card rostering system that triggered a wildcat strike by check-in staff at London Heathrow in July. The pay deal covers 2003 and...

Bankrupt Air Littoral.(Europe report)
November 1, 2003... Bankrupt Air Littoral attracted nine takeover bids but the majority of suitors are interested in only part of its activities. Air Littoral, which operates a 32-aircraft fleet, declared bankruptcy in Aug. after it was unable to repay 67 million...

Aeris.(Europe report)
November 1, 2003... Aeris, France's third-largest airline, filed for bankruptcy protection at the Commercial Court of Toulouse but will continue normal operations during the receivership period and noted that two potential buyers have expressed interest in making...

Greece and Turkey.(Europe report)
November 1, 2003... Greece and Turkey set aside their centuries-old enmity in order to permit a redesign of airspace throughout the Balkan region in Dec. ahead of the 2004 Summer Olympics to be held in Athens. Currently, aircraft flying to and from Turkey are...

UK's National Air Traffic Services.(Europe report)
November 1, 2003... UK's National Air Traffic Services will resume work on the new Prestwick Center in Scotland. The building is due to be ready in early 2006 for handover for fitting-out and systems testing and to become operational in 2009. The project which had...

European Airline Traffic.(Europe report)
November 1, 2003... European Airline Traffic September 2003 Load RPKs % chg. ASKs % chg. factor (billions) 2002 (billions) 2002 (%)...

British Airways.(Europe report)
November 1, 2003... British Airways CIO Paul Coby was named chairman of SITA Group.

Air France Industries and Boeing.(Europe report)
November 1, 2003... Air France Industries and Boeing formed a worldwide 777 Component Services Program that provides the forwarding of a replacement part within one day of receiving an order. Customers sign up for a term of up to 10 years, paying a per-flight-hour...

Uzbekistan Airways.(Europe report)
November 1, 2003... Uzbekistan Airways took its third 767-300ER last month.

Alitalia.(Europe report)(Deutsche Lufthansa AG )
November 1, 2003... Alitalia completed the sale of a 40% shareholding in subsidiary Alitalia Maintenance Systems to Lufthansa Technik. Terms of the deal were not released. Alitalia Maintenance Systems will be managed jointly by both partners "with the declared...

Aeronavali.(Europe report)(Boeing Co.)
November 1, 2003... Aeronavali inked an agreement with Boeing under which Aeronavali will become the sole company licensed by the manufacturer to convert 767-200 passenger jets to freighters using the Boeing amended type certificate. Terms of the deal were not...

Amadeus and IBM.(Europe report)
November 1, 2003... Amadeus and IBM formed a strategic relationship under which they will offer a package combining Amadeus's Sales & Distribution and Passenger Service System solutions and services with IBM's outsourcing and global IT services.

LSG Sky Chefs.(Europe report)
November 1, 2003... LSR Sky Chefs will acquire the assets of airline catering operator Abela at London Gatwick, Heathrow and Stansted. Price was not disclosed. Abela employees immediately become part of the Sky Chefs organization, LSG said.

Austrian Airlines.(Europe report)
November 1, 2003... Austrian Airlines and subsidiaries Lauda Air and Arrows (formerly Tyrolean) ordered CTT Systems' Zonal Drying System to retrofit 15 CRJs. Deliveries began this fall.

Nordam Europe.(Europe report)
November 1, 2003... Nordam Europe will expand its European manufacturing facility in Wales and double its production staff, creating 220 new jobs, as part of an 8.4 million [pounds sterling] ($9.8 million) investment.

Air Canada.(North America report)
November 1, 2003... Air Canada was expected to name an equity investor for its financial reorganization from a shortlist of just two companies, Cerberus Capital Management and a firm controlled by Victor TK Li, before the end of Oct. The airline has said it wants...

Delta Air Lines.(North America report)
November 1, 2003... Delta Air Lines will sell 11 737-800s scheduled for delivery in 2005 to an unnamed third party and defer delivery until 2008 of eight additional 737-800s also scheduled to arrive in 2005. The carrier said it expects the move to reduce capital...

United Airlines.(North America report)
November 1, 2003... United Airlines will seek waivers from the US Internal Revenue Service to permit it to stretch out mandatory payments to all four of its US defined benefit pension plans over a five-year period. Resolution of the pension funding issue is viewed...

ATW through the years.
November 1, 2003... Five years ago in ATW: The latest round of bilateral negotiations between the US and UK ended just two days after they began when US negotiators walked out, claiming there was "no possibility of making progress on any of the outstanding care...

US Airways.(North America report)
November 1, 2003... US Airways, which threatened to shut down its Pittsburgh hub operation if its airport charges are not reduced (ATW, 9/03, p. 28), committed to maintain current flight levels there until early Sept. 2004. In a letter to Sen. Rick Santorum...

Northwest Airlines.(North America report)
November 1, 2003... Northwest Airlines announced plans to restructure its flight schedule at its Memphis hub beginning Jan. 6 in a move that will result in a reduction in daily mainline and Northwest Airlink departures from 242 to 198, spread out in six flight...

JetBlue.(North America report)
November 1, 2003... JetBlue will take its low-fare operation into Boston early next year with the launch of flights from the Northeast city to three sun destinations in Florida--Ft. Lauderdale, Orlando and Tamp--plus Denver. Southwest Airlines already offers...

Hawaiian Airlines.(North America report)
November 1, 2003... Hawaiian Airlines said it is the subject of a formal investigation by the US SEC related to a May 2002 tender offer under which Hawaiian bought back 17.5% of its stock at a price of $25 million. The share buyback was criticized heavily by...

Air Transport Assn.(North America report)
November 1, 2003... Air Transport Assn. asked the US Dept. of Homeland Security to reinstate two programs that permit airline passengers to transit US airports en route to a third country without a visa that otherwise would be required to enter the US. DHS...

US Transportation Security Administration.(North America report)
November 1, 2003... US Transportation Security Administration in late Sept. awarded reimbursement grants totaling $100 million to 58 domestic carriers for the direct cost of reinforcing cockpit doors. This is in addition to the $97 million FAA announced for the...

Boeing.(North America report)
November 1, 2003... Boeing is proposing a 24-seat stretch of the 717 in a typical two-class configuration. Dubbed the 717-300X, it would be available in the second half of 2006 and involves a 14 ft. stretch of the 717-200 airframe from 124 ft. to 138.3 ft.,...

US Majors Traffic.(North America report)
November 1, 2003... US Majors Traffic September 2003 RPMs % chg. ASMs (billions) 2002 (billions) Alaska 1.09 9.3 1.70 American ...

Pratt & Whitney and MTU.(North America report)
November 1, 2003... Pratt & Whitney and MTU began developmental testing of a low-emissions combustor for new-generation commercial aircraft engines in the Joint Technology, Demonstrator Program.

United Services and Hawker Pacific Aerospace.(North America report)
November 1, 2003... United Services and Hawker Pacific Aerospace signed an agreement for "a strategic marketing and asset utilization" arrangement for 737, 757 and 777 landing gear overhauls. The plan also involves opening United's landing gear spares pool for...

Delta Air Lines' TechOps.(North America report)
November 1, 2003... Delta Air Lines' TechOps division was certified by FAA to perform maintenance on the GE CF34 engines powering the bulk of the regional jet fleet.

ARINC.(North America report)(Easyjet Airline PLC)
November 1, 2003... ARINC was selected by easyJet to be the airline's air/ground communications service provider through 2010. The new contract covers the delivery period for EasyJet's new fleet of 120 A319s. As the aircraft are delivered, ARINC will provide its...

Sabre Airline Solutions.(North America report)(Electronic Data Systems Corp.)
November 1, 2003... Sabre Airline Solutions acquired the EDS axsResource Airport Resource Management Solutions product line. Terms of the deal were not released. Previously, axsResource was offered through Atraxis, the assets of which EDS acquired from Swissair...

Rockwell Collins.(North America report)(Innovative Media Solutions)(Delta Air Lines)
November 1, 2003... Rockwell Collins in partnership with Innovative Media Solutions will provide Delta Air Lines with eOffload, an Internet-based service that manages inflight entertainment usage and information.

Singapore Airlines.(Asia/Pacific report)
November 1, 2003... Singapore Airlines will not go forward with plans to launch a discount airline based in Chiang Mai, Thailand. Although such a carrier "would be viable" under certain conditions, SIA said the venture would demand "considerable resources" that...

Australian and Singapore.(Asia/Pacific report)
November 1, 2003... Australian and Singapore transport ministers signed an MOU in late Sept. that provides for the removal of restrictions on services and capacity between Singapore and Australia. However, in a victory for Qantas, they stopped short of entering...

Qantas.(Asia/Pacific report)
November 1, 2003... Qantas unveiled its A$385 million ($261.2 million) International Business Class that features its new Skybed seatbed as well as other product and service enhancements. In addition, the carrier introduced its new Short Messaging System that will...

Qantas and Air New Zealand.(Asia/Pacific report)
November 1, 2003... Qantas and Air New Zealand, as expected, lodged an appeal with the Australian Competition Tribunal in a bid to overturn the rejection of their proposed alliance by competition regulators. The New Zealand Commerce Commission, which also is...

Emirates.(Leasing & Finance briefs)(Singapore Airlines Ltd.)
November 1, 2003... Emirates will lease eight ex-Singapore Airlines A340-300s on nine-year leases to meet capacity shortfalls ahead of the delivery of 26 777-300ERs ordered at the Paris Air Show last June. The aircraft are owned by Boeing, which took them in...

Frontier Airlines.(Leasing & Finance briefs)
November 1, 2003... Frontier Airlines netted approximately $81.1 million from a public offering of 4.7 million shares of common stock. In addition, underwriters exercised an overallotment option of 350,000 shares. Sixty percent of the net proceeds will be used to...

CAE.(Leasing & Finance briefs)
November 1, 2003... CAE completed a 20-year sale-leaseback transaction for approximately C$94 million ($70 million) involving five full-flight simulators in the US. The proceeds will be used to reduce company debt, CAE said

Midwest Express Holdings.(Leasing & Finance briefs)
November 1, 2003... Midwest Express Holdings, parent of Midwest Airlines, said it reached a tentative agreement to complete a sale-leaseback of its headquarters facility. The transaction, which was expected to close in mid-Oct., will provide the company with net...

Boullioun Aviation Services.(Leasing & Finance briefs)
November 1, 2003... Boullioun Aviation Services was selected by Abbey National plc to manage its lease portfolio of 30 aircraft with a value of $950 million.

Focus Aviation.(contract with Win-Wing Corp.)(Brief Article)
November 1, 2003... Focus Aviation was appointed to manage and remarket an MD-82 and an MO-83 on behalf of Win-Wing Corp., a wholly owned subsidiary of SinoPac Leasing Corp. of the Bank SinoPac Group. Taiwan-based Far Eastern Air Transport currently operates the...

Debis AirFinance.(Leasing & Finance briefs)
November 1, 2003... Debis AirFinance completed its second Japanese Operating Lease transaction with Credit Lyonnais and Sumitomo Mitsui Banking Corp. acting jointly us arrangers of the transaction. Debis secured the deal, which has a value of $44 million, far an...

TAF Linhas Aereas.(Leasing & Finance briefs)
November 1, 2003... TAF Linhas Anreas took delivery of a 737-200A from PLM Worldwide Leasing. Aircraft formerly was leased to Varig. The transaction was arranged by Sigma Aircraft Management.

Air New Zealand.(Asia/Pacific report)
November 1, 2003... Air New Zealand unveiled a new four-year strategic business plan that it expects to deliver A$245 million ($169 million) in annual savings by 2007. The savings will be achieved through more efficient operations in all areas of its operations...

US and Vietnam.(Asia/Pacific report)
November 1, 2003... US and Vietnam on Oct. 9 initialed a new air services agreement permitting the resumption of direct air services between the countries that have been suspended since the end of the Vietnam War. Under terms of the five-year accord, two passenger...

Japan Air System.(Asia/Pacific report)
November 1, 2003... Japan Air System awarded a three-year contract to Japan Turbine Technologies for maintenance and repair of high-pressure airfoils for V2500 engines. JTT, a joint venture between Pratt & Whitney and Japan Airlines, will perform the work at its...

Singapore Technologies Engineering Ltd.(Asia/Pacific report)
November 1, 2003... Singapore Technologies Engineering Ltd. announced Oct. 7 that its aerospace unit, Singapore Technologies Aerospace, closed its Dallas-based DalFort Aerospace maintenance, repair and overhaul facility effective immediately. The company did not...

Brazil.(Latin America report)(available seat kilometer, revenue passenger kilometer data)(Brief Article)
November 1, 2003... Brazil's domestic airline industry posted an 11.6% decrease in ASKs for the first nine months of 2003 compared to 2002. RPKs were down 9.1%. Preliminary government data show that low-fare airline Gol posted an impressive increase of 60.5% in...

ARINC.(Latin America report)(HF voice station commissioned in Bolivia)(Brief Article)
November 1, 2003... ARINC commissioned a new HF voice station at Viru Viru International Airport in Santa Cruz, Bolivia, Sept. 3, the company's first HF voice station below the equator. The 5-kw station delivers coverage over 12 countries, ARINC said.

International Assn. of Latin American Airlines.(Latin America report)(Alex Gunten appointed executive director)(Brief Article)
November 1, 2003... International Assn. of Latin American Airlines named Alex Gunten as its executive director. He will assume the position at the association's annual general assembly this month.

Qatar Airways.(Middle East report)(safety audit)(Brief Article)
November 1, 2003... Qatar Airways became the first airline to commit to a safety audit under a new program rolled out by IATA last month. The IATA Operational Safety Audit program will "enable airlines to review their safety, processes using a worldwide standard,"...

Middle East Airlines.(Middle East report)(MCC to implement automated agents)(Brief Article)
November 1, 2003... Middle East Airlines selected MCC to implement Revenue Integrity automated agents to "optimize the booking curve during the seat selling process and decrease the no-show late at flight departure."

Copa Airlines.(Latin America report)(new 737 equipped with Vertical Situation Display)(Brief Article)
November 1, 2003... Copa Airlines, newest 737,700 is also the first 737 in the Americas to be equipped with a Vertical Situation Display. Developed by Boeing VSD creates a visual plot of an airplane's current and projected flight path in relation to ground...

Lufthansa Cargo.(Cargo)(fleet overhaul)(Brief Article)
November 1, 2003... Lufthansa Cargo, in a major fleet overhaul, intends to dispose of its entire 747-200 freighter fleet--a total of eight aircraft while adding five used MD-11s. The program will result in LH Cargo operating a homogenous fleet of 14 MD-11Fs,...

FedEx.(Cargo)(enhanced vision systems to be used in aircraft)(Brief Article)
November 1, 2003... FedEx will become the first US airline to operate commercial air transport aircraft equipped with enhanced vision systems as part of a new head-up display being developed by Honeywell Air Transport Systems. Elbit Systems of Haifa, Israel, said...

Alitalia.(Cargo)(US Cargo Joint Venture member)(Brief Article)
November 1, 2003... Alitalia is to become a member of the US Cargo Joint Venture formed by Air France, Delta Air Lines and Korean Air. The four carriers are members of the SkyTeam Cargo alliance with AeroMexico and CSA Czech Airlines.

Aer Lingus.(Equipment)(A320s to be acquired)(Brief Article)
November 1, 2003... Aer Lingus will acquire 17 CFM56-powered A320s with options for a further 10. Of the firm orders, seven will be purchased outright and 10 will be leased from ILFC. The deal must be approved by the Aer Lingus board.

China Southern Airlines.(Equipment)(purchase agreement for A330-200s)(Brief Article)
November 1, 2003... China Southern Airlines signed a purchase agreement for four new Trent 700 powered, 276-seat A330-200s to be delivered beginning in 2005. The purchase is part of the previously announced General Terms Agreement that was signed by China Aviation...

Air China.(Equipment)(deal with IAE)(Brief Article)
November 1, 2003... Air China selected IAE V2500-A5s to power four additional A319s to be delivered between June 2005 and July 2006. IAE valued the deal at more than $50 million.

ERAA decries unfair treatment by EU.(Regional News)(European Regions Airline Association)(Brief Article)
November 1, 2003... The European Regions Airline Assn. unveiled a special report charging the EU with discriminating against Regionals by enacting onerous legislation and taxation. The report lists some two dozen of what ERAA calls "specific cases of regulatory...

Hat trick for Air Nostrum at ERAA.(Regional News)(European Regions Airline Association presents awards)(Brief Article)
November 1, 2003... For the third year in a row, ERAA honored Iberia partner Air Nostrum as the European Regional Airline of the Year. In bestowing the award at its annual meeting in Dublin, the association noted that Air Nostrum has shown "exceptional growth in a...

London City Airport honored by ERAA.(Regional News)(European Regions Airline Association)(Brief Article)
November 1, 2003... London City Airport was recognized as Airport of the Year by ERAA. The Docklands airport, from which 11 airlines operate, demonstrated how a regional airport can play a key role in the transportation infrastructure, said ERAA DG Mike Ambrose....

Frontier taps Horizon for new partner.(Regional News)
November 1, 2003... Horizon Air, a subsidiary of Alaska Air Group, signed a 12-year agreement with Frontier Airlines to operate regional jet service as Frontier JetExpress beginning Jan. 1. It will replace current JetExpress carrier Mesa Airlines, whose agreement...

Swiss ruling will bar Saab 2000 from Lugano.(Lugano Airport )(Brief Article)
November 1, 2003... The Swiss Federal Office for Civil Aviation's decision in change landing requirements at Lugano Airport effectively will prohibit Saab 2000s from landing there. FOCA's decision to implement a 6-deg. steep approach angle rule at Lugano will end...

Saab Aircraft AB.(Notes)
November 1, 2003... Saab Aircraft AB will become an authorized service center for Embraer regional jets and turboprops under a long-term agreement between the former manufacturer of the Saab 340 and Saab 2000 and Embraer Aviation International, a European...

CityJet.(Notes)
November 1, 2003... CityJet is restarting service on the London City-Dublin route. Service was dropped about three years ago, according to CityJet CEO Geoffrey White. The route will be served with BAe 146s.

BAE Systems Regional Aircraft.(Notes)
November 1, 2003... BAE Systems Regional Aircraft signed an agreement with West Air Sweden for the long-term lease of an additional ATP. The aircraft is being converted into a Large Freight Door version and will be delivered to the airline in the first quarter. In...

Mesa Air Group.(Notes)(United Air Lines Inc.)
November 1, 2003... Mesa Air Group is expanding a recently signed codeshare agreement with United Airlines to increase the number of 50-sear CRJs it flies in United Express service from 15 to 25. The new aircraft', which will be delivered in mid-2004, will bring...

Coming events.
November 1, 2003... Nov. 2-4 SpeedNews 8th Annual Regional & Corporate Aviation Industry Suppliers Conference, The Lodge at Rancho Mirage, Calif., USA. Contact Joanna Speed at +1 310-203-9603; e-mail jspeed@speednews.com. Nov. 2-4 Air Transport Assn. of Canada...

Airmail.
November 1, 2003... Editor: While Geoffrey Thomas's article ("When Low Fares are Not Enough," ATW, 9/11, p. 61) makes good points on the need to recognize a changed, pervasive low-fare environment, much of Jonathan Bricker's consumer research results and...

AirCell.(People)
November 1, 2003... AirCell tapped Robert L. Crandall as senior adviser and a member of the board of directors.