Air Transport World articles from October 2003

Air Transport World archives from October 2003

Trends.(statistics related to air transport)
October 1, 2003... Top 20 Airlines Jan.-Aug. 2003 Airline RPKs (000) 1 American 131,065,658 2 United 110,969,618 3 Delta 105,832,279 4 Northwest 74,509,200 ...

Rearview mirror.(Editorial)(competition authorities ruling against Qantas/Air New Zealand partnership may be a case of over-regulation)(Editorial)
October 1, 2003... When rulemakers change the rules, they should take special pains to make themselves aware of the consequences of those changes and alter their behavior accordingly. This rarely happens. The recent decision by the Australian Competition and...

Qantas, Air New Zealand to appeal alliance rejection.(Brief Article)
October 1, 2003... Qantas and Air New Zealand said they intend to appeal last month's decision by the Australian Competition and Consumer Commission to forbid their proposed alliance. In confirming its earlier draft ruling, ACCC found that the proposed...

KLM/Air France link-up in works.(Brief Article)
October 1, 2003... KLM's entry into SkyTeam, seemingly all but assured last summer, has evolved into a much broader program including a possible equity alliance and/or outright merger with SkyTeam's European anchor airline, Air France. In mid-Sept. the...

US ratifies Montreal Convention.(rules governing the liability of airlines to passengers for deaths or injuries resulting from accidents that occur on international flights)(Brief Article)
October 1, 2003... The US in early Sept. ratified the 1999 Montreal Convention overhauling the rules governing the liability of airlines to passengers for deaths or injuries resulting from accidents that occur on international flights. The US became the 30th...

United to launch low-fare unit next year.(United Airlines develop service out of Denver)(Brief Article)
October 1, 2003... United Airlines said it intends to launch its still unnamed "low-cost operation" next Feb. with four A320s based at its Denver International Airport hub. By the end of 2004, the unit will be operating 40 A320s, 19 of which will be based at DEN....

Qantas.(1st-half earnings)(Brief Article)
October 1, 2003... Qantas reported a net profit of A$343.5 million ($224.7 million) for the fiscal year ended June 30 as a strong first half helped to mitigate the impact of SARS in the fourth quarter. Nevertheless, results were down 19.7% from a net profit of...

Air New Zealand.(net profit for the fiscal year ended June 30)(Brief Article)
October 1, 2003... Air New Zealand broke a four-year cycle of losses with a NZ$165.7 million ($94.4 million) net profit for the fiscal year ended June 30, underpinned by its internal restructure and improved returns from the domestic and international markets....

Boeing's historic Dash 80.(Brief Article)
October 1, 2003... Boeing's historic Dash 80 left its home in Seattle at the end of Aug. to become a permanent exhibit at the National Air and Space Museum's new Steven F. Udvar-Hazy Center outside Washington, D.C.

Quote of the month.
October 1, 2003... "While it may be true that terrorists had not before deliberately flown airplanes into buildings [American and United] reasonably could foresee that crashes causing death and destruction on the ground were a hazard that would arise should...

Singapore Airlines.(reviewing its organizational structure after financial loss)(Brief Article)
October 1, 2003... Singapore Airlines, citing the "rapidly changing aviation environment," launched a project evaluate its "internal business' and review its organizational structure. Hammered by the SARS outbreak, SIA Group reported an unprecedented net loss...

United Airlines and Air China.(marketing alliance announced)(Brief Article)
October 1, 2003... United Airlines and Air China announced a marketing alliance that includes codesharing on transpacific and beyond-gateway destinations and reciprocal frequent-flier mileage accrual and lounge access.

China Eastern Airlines.(1st-half earnings)(Brief Article)
October 1, 2003... China Eastern Airlines reported a 1.25 billion yuan ($151.4 million) net loss for the first half 2003 compared to a net profit of 25.5 million yuan in the year-ago period. Revenue fell 7.9% to 5.48 billion yuan on 20% drop in passenger revenue...

China Southern Airlines.(1st-half earnings)(Brief Article)
October 1, 2003... China Southern Airlines, severely impacted by the SARS outbreak, reported a net loss of 1.23 billion yuan ($149 million) for the first half ended June 30 on a 21% drop in revenue to 6.73 billion yuan. The airline earned 123.2 million yuan in...

Air-India.(plans for aircraft purchase are vetoed)(Brief Article)
October 1, 2003... Air-India's plan to purchase 35 aircraft was vetoed by a commit tee set up to examine the proposal. According to insiders, the cost analysis found that Air-India, because of years of neglect no longer has the business-class base to support the...

Korean Air.(to take over Daewoo Industries' stake in Korea Aerospace Industries)(Brief Article)
October 1, 2003... Korean Air will take over Daewoo Industries' stake in Korea Aerospace Industries. Assuming similar agreements with KAI co owners the Hyundai and Samsung groups are consummated, KAL will become the largest owner of the company with 85% and the...

AirAsia.(starts service between Kuala Lumpur and Johor Bahru on the southern tip of the Malay Peninsula )(Brief Article)
October 1, 2003... AirAsia announced that it will start two daily services Oct. 11 between Kuala Lumpur and Johor Bahru on the southern tip of the Malay Peninsula just a short drive from Singapore. The move challenges the Singapore Airlines-Malaysia Airlines...

Rockwell Collins.(Asia/Pacific report)(Brief Article)
October 1, 2003... Rockwell Collins will provide avionics and IFE systems to Virgin Blue for 10 737NGs plus 40 optioned aircraft, with deliveries beginning in 2004. Separately, Rockwell said its entertainment services group, encompass, was selected by EVA...

All Nippon Airways.(to install the Connexion by Boeing broadband Internet service on its long-haul aircraft )(Brief Article)
October 1, 2003... All Nippon Airways signed a letter of intent with Boeing to install the Connexion by Boeing broadband Internet service on its long-haul aircraft with rollout planned for the fourth quarter of 2004 coinciding with delivery of the first of six...

Pakistan International Airlines.(to use Goodrich wheels and brakes on its 777 fleet)(Brief Article)
October 1, 2003... Pakistan International Airlines selected Goodrich wheels and brakes for its new fleet of three firm and five optioned 777-200ERs that are scheduled for delivery beginning in Jan.

Cathay Pacific Airways.(implemented Ultramain on its A340-600 fleet )(Brief Article)
October 1, 2003... Cathay Pacific Airways implemented Ultramain on its A340-600 fleet in the second phase of a major upgrade program to replace its in-house-developed Maintenance and Engineering Supply system.

The European Union.(Europe report)(Brief Article)
October 1, 2003... The European Union and the US remain far apart on the issue of passenger data sharing for security purposes, European Commissioner for Internal Market Frits Bolkestein told the European Parliament in mid-Sept. He said that US undertakings to...

Air France.(fiscal first quarter earnings)(Brief Article)
October 1, 2003... Air France squeaked by with a net profit of 4 million [euro] ($4.3 million) in the fiscal first quarter ended June 30 owing to gains on aircraft disposals and nonoperating items. In the year-ago period it earned 159 million [euro]. Operating...

Swiss International Air Lines.(1st-half earnings)(Brief Article)
October 1, 2003... Swiss International Air Lines narrowed its fiscal first-half net loss to Sfr333 million ($241 million) from Sfr447 million in 2002. Results were lifted by sharp curtailment of personnel and operational costs through payroll reductions,...

Alitalia.(1st-half earnings)(Brief Article)
October 1, 2003... Alitalia reported a net loss of 315 million [euro] ($353 million) for the first half ended June 30, significantly widened from a loss of 49 million [euro] in the year-ago period. Loss before interest and taxes totaled 266 million [euro], more...

British Airways.(starts codeshare flights with American Airlines)(Brief Article)
October 1, 2003... British Airways launched its firs set of codeshare flights with oneworld partner American Airlines Sept. 17 to destinations in the US, Canada, Latin America and the Caribbean.

TAP Air Portugal.(earnings report)(Brief Article)
October 1, 2003... TAP Air Portugal said it generated operating profits of 15.1 million [euro] ($16.4 million) in July, down from 15.9 million [euro] in July 2002 but its best performance this year since Jan. Net earnings reached 15.2 million [euro] for the...

Finnair.(2nd-quarter earnings)(Brief Article)
October 1, 2003... Finnair reported a 5 million [euro] ($5.6 million net loss for the quarter ended June 30, a reversal from net income of 19.5 million [euro] last year, largely owing to "the double blow of Iraq and SARS," according to President and CEO Keijo...

LOT Polish Airlines.(US FAA says Poland does not comply with ICAO safety standards)(Brief Article)
October 1, 2003... LOT Polish Airlines' alliance aspirations were dealt an embarrassing blow after US FAA determined that "Poland does not comply with international safety standards set by ICAO." The determination to give Poland so-called Category 2 safety status...

Olympic Airways.(financial restructuring)(Brief Article)
October 1, 2003... Olympic Airways will be restructured and reborn as streamlined, debt-free Olympic Airlines under terms of draft legislation submitted by the government to the Greek parliament. Launch date of the proposed new Olympic is uncertain, but it would...

Virgin Express.(2nd-quarter earnings)(Brief Article)
October 1, 2003... Virgin Express reported a slim net profit of 100,000 [euro] ($108,637) for the second quarter, down from a net profit of 2.9 million [euro] last year. Operating profit more than doubled from 1.4 million [euro] to 2.9 million [euro], "but only...

European Airline traffic: August 2003.(Brief Article)
October 1, 2003... European Airline Traffic August 2003 RPKs % chg. ASKs (billions) 2002 (billions) AF Group 9.47 -4.2 11.89 AUA Group * 1.44 5.4 1.89 BA Group ...

ATW through the years.
October 1, 2003... Five years ago in ATW: Cathay Pacific Airways and Japan Airlines reportedly are mulling the possibility of joining British Airways, American Airlines and Qantas in forming a new global partnership to face the potent United/Lufthansa-led Star...

SAS Group.(to acquire Estonian Air stake from Maersk Air)(Brief Article)
October 1, 2003... SAS Group signed an agreement with Maersk Air A/S to acquire Maersk's 49% stake in Tallinn-based Estonian Air. As part of the deal, SAS also acquires all of the shares of Maersk Air Maintenance Estonia AS. Total cost of the transaction is...

Condor Flugdienst.(cutting air fleet and staff)(Brief Article)
October 1, 2003... Condor Flugdienst, battling a sharp downturn in the package-tour business, is reducing its operational fleet by six to 34 jets by summer 2004:13 757-300s, nine 767-300s and 12 A320s flown by subsidiary Condor Berlin. A total of 356 staff...

CSA Czech Airlines.(upper management dismissed)(Brief Article)
October 1, 2003... CSA Czech Airlines' supervisory board dismissed President and CEO Miroslav Kula and virtually the entire executive leadership team at the airline last month, with only VP-Finance and Planning Frantisek Slaby surviving the sudden purge. Jaroslav...

Air Littoral.(files for bankruptcy protection)(Brief Article)
October 1, 2003... Air Littoral filed for the equivalent of Chapter 11 bankruptcy protection in late Aug.

CFM56-5C/P.(gains certification for the A340)(Brief Article)
October 1, 2003... CFM56-5C/P for the A340 was certified by US FAA and the French DGAC, paving the way for A340-300 aircraft certification and entry into service this month. The dash 5C/P provides operators with a 1% improvement in SFC and a 13-deg.-C improvement...

Rolls-Royce.(to cooperate with Boeing on further studies for a new member of the Trent engine family to power the 7E7)(Brief Article)
October 1, 2003... Rolls-Royce Sept. 9 said it signed an MOU with Boeing to cooperate on "further studies for a new member of the Trent engine family to power the 7E7," in the 45,000-70,000-lb. thrust range with a timetable that will continue to support a 2008...

Austrian Airlines Group.(Lufthansa Technik signed a five-year maintenance and technical support accord )(Brief Article)
October 1, 2003... Austrian Airlines Group and Lufthansa Technik signed a five-year maintenance and technical support accord effective Jan. 2004. The deal is valued at 65 million [euro] ($70.2 million) for a mutually agreed volume of work. An existing...

Goodrich.(to provide wheels and brakes for Aeroflot)(Brief Article)
October 1, 2003... Goodrich will provide wheels and brakes for 18 A319s/A320s that will enter service this year with Aeroflot.

SAS Component.(Europe report)(Brief Article)
October 1, 2003... SAS Component contracted with ITS Technical Services of Reykjavik to support 767-300 component supply and maintenance through its Free2Fly material supply program.

ARINC.(gains SAS contract)(Brief Article)
October 1, 2003... ARINC was awarded a long-term contract by SAS for expanded air/ground communications services, including the first use of ARINC's new VDL Mode 2 service in European airspace.

Fraport AG.(planning Frankfurt Airport expansion)(Brief Article)
October 1, 2003... Fraport AG last month submitted to local authorities the required zoning-procedure documentation signaling the formal start of the controversial 3.3 billion [euro] ($3.75 billion) expansion of Frankfurt Airport that will double passenger...

American Airlines, United Airlines, Boeing and the Port Authority of New York and New Jersey can be sued for injuries and deaths that occurred at the World Trade Center and the Pentagon as the result of the 9/11 terrorist attacks.(North America report)(Brief Article)
October 1, 2003... American Airlines, United Airlines, Boeing and the Port Authority of New York and New Jersey can be sued for injuries and deaths that occurred at the World Trade Center and the Pentagon as the result of the 9/11 terrorist attacks, a US judge...

US Airways Group.(private stock placement)(Brief Article)
October 1, 2003... US Airways Group said that Goldman Sachs will join two other investment groups in a private placement of 5 million shares of the company's stock. Other participants are Aviation Acquisition LLC and OCM Principal Opportunities Fund II. The...

Delta Air Lines.(will recall all 250 pilots furloughed during the war in Iraq)(Brief Article)
October 1, 2003... Delta Air Lines by year end will recall all 250 pilots furloughed during the war in Iraq.

America West Airlines.(plans to increase capacity)(Brief Article)
October 1, 2003... America West Airlines, which returned to profit in the second quarter, said it intends to grow its mainline capacity (ASMs) by approximately 10% by the fourth quarter of 2004. Growth will he accomplished "through increased fleer utilization and...

ATA Holdings Corp.(tentative agreement with Boeing to defer delivery of seven 737-800s from 2004 to 2005 as part of its ongoing financial restructuring)(Brief Article)
October 1, 2003... ATA Holdings Corp. said it reached a tentative agreement with Boeing to defer delivery of seven 737-800s from 2004 to 2005 as part of its ongoing financial restructuring. The parent of ATA Airlines also said it entered into agreements with...

Southwest Airlines.(requested federal mediators to help it negotiate a new contract with the Transport Workers Union)(Brief Article)
October 1, 2003... Southwest Airlines requested federal mediators to help it negotiate a new contract with the Transport Workers Union, which represents its 7,200 flight attendants. In the past, the company rarely had to ask for federal assistance, a staple of...

Alaska Airlines.(to offer passengers the APS digEplayer electronic entertainment device)(Brief Article)
October 1, 2003... Alaska Airlines said it will become the first carrier to offer passengers the APS digEplayer, a portable IFE system that runs on a handheld device and provides "first-run movies not yet available on video" in addition to other audio and video...

Orbitz.(files amended registration statement for share offering)(Brief Article)
October 1, 2003... Orbitz filed an amended registration statement with the US Securities and Exchange Commission related to its long-dormant proposed offering of shares of common stock. The US Dept. of Justice closed its extensive review of Orbitz in July after...

Denver International.(airport opens sixth runway)(Brief Article)
October 1, 2003... Denver International Airport opened its sixth runway last month. It was built at a cost of approximately $166 million with FAA funding 74% of the project.

JAL Group.(ordered seven more 767-300ER aircraft)(Brief Article)
October 1, 2003... JAL Group recently ordered seven more 767-300ERs. Aircraft will be leased from Mitsubishi Corp.

Lockheed Martin.(achieved US government acceptance of Build 1 of the Advanced Technologies and Oceanic Procedures system )(Brief Article)
October 1, 2003... Lockheed Martin said it achieved US government acceptance of Build 1 of the Advanced Technologies and Oceanic Procedures system that will replace FAA's existing systems and procedures responsible for air traffic control in US oceanic airspace.

Pratt & Whitney.(Jon Beatty named VP-operational commercial engines )(Brief Article)
October 1, 2003... Pratt & Whitney named Jon Beatty VP-operational commercial engines for the JT8D, JT9D, PW2000, PW4000 and Nacelle Program teams.

EADS Aeroframe Services.(named Francois Amat president and CEO of the Lake Charles, LA., maintenance and overhaul center)(Brief Article)
October 1, 2003... EADS Aeroframe Services named Francois Amat president and CEO of the Lake Charles, la., maintenance and overhaul center. The company is a subsidiary of EADS North America and a joint venture between EADS Sogerma Services and Northrop Grumman.

ARINC and Telenor Satellite Services.(reseller and service agreement)(Brief Article)
October 1, 2003... ARINC and Telenor Satellite Services announced an agreement under which Telenor designated ARINC "as the primary reseller of Telenor's aeronautical services in the commercial aviation market worldwide." ARINC will use Telenor's global network...

GE Engine Services.(to maintain Airtran aircraft engines)(Brief Article)
October 1, 2003... GE Engine Services will maintain CFM56-7s powering Airtran's fleet of 737-700s/-800s under a 15-year, $600 million agreement. Aircraft deliveries begin next June.

Garmin International.(acquires UPS Aviation Technologies)(Brief Article)
October 1, 2003... Garmin International completed its acquisition of UPS Aviation Technologies for $38 million in cash and renamed the unit Garmin AT.

CAE.(training simulator contracts)(Brief Article)
October 1, 2003... CAE signed a contract valued at C$4 million ($2.9 million) with Southwest Airlines for major systems upgrades to one of its 737-300 simulators. Frontier Airlines signed an additional two-year agreement covering ground school and simulator...

Aces.(is liquidated)(Brief Article)
October 1, 2003... Aces of Colombia was liquidated following its grounding Aug. 20. The small airline, owned 50% by the National Federation of Coffee Growers of Colombia and 50% by conglomerate Valores Bavaria, was part of Alianza Summa with Avianca and SAM. Aces...

Southern Winds and Lafsa signed a business cooperation agreement under which the Argentine new entrant will provide facilities and services to Lafsa, which was created by the government as a successor to privately owned LAPA and Dinar, both of which have shutdown.(Latin America/Caribbean report)(Brief Article)
October 1, 2003... Southern Winds and Lafsa signed a business cooperation agreement under which the Argentine new entrant will provide facilities and services to Lafsa, which was created by the government as a successor to privately owned LAPA and Dinar, both of...

Cerial Sur.(wins bid for privatization of Montevideo's Carrasco International Airport)(Brief Article)
October 1, 2003... Cerial Sur, a consortium established by Aeropuertos Argentina 2000, Milan Malpensa managing company SEA and US-based American International Airport, won the bid for privatization of Montevideo's Carrasco International Airport. The winning...

El Al.(2nd-quarter earnings)(Brief Article)
October 1, 2003... El At, reporting its first financial results since becoming a publicly traded company, said it had a second-quarter loss of $28.8 million. Absent the effect of unfavorable exchange rates, the loss narrowed to $9.4 million. Operating losses...

Israel Aircraft Industries.(gains funding to test and certify the Flight Guard commercial antimissile system)(Brief Article)
October 1, 2003... Israel Aircraft Industries received $1.4 million in government funding to test and certify the Flight Guard commercial antimissile system developed by IAI's Elta Systems subsidiary. Following the flight test program and certification, the...

US majors traffic: August 2003.(airlines)(Brief Article)
October 1, 2003... US Majors Traffic August 2003 RPMs % chg. ASMs (billions) 2002 (billions) Alaska 1.53 11.9 1.99 American 11.69 ...

South African Airways.(earnings report)(Brief Article)
October 1, 2003... South African Airways, coping with "an environment of rapidly falling demand as well as spiraling costs," said it achieved record gross operating profits of 545 million rand ($72.8 million) in the financial year to last March 31 compared to a...

Six airlines.(allocated landing slots at airport in Basra, Iraq)(Brief Article)
October 1, 2003... Six airlines have been allocated landing slots by the US-led Coalition Provisional Authority to serve Basra, Iraq, but no date was disclosed for when services will start. The carriers are SAS, LOT, Emirates, Qatar Airways, Royal Jordanian and...

US Dept. of Transportation.(Cargo)(Brief Article)
October 1, 2003... US Dept. of Transportation finalized its tentative selection of six airlines to operate new or expanded all-cargo service between Hong Kong and third-country cities in conjunction with their US-Hong Kong services. They are FedEx, UPS, Evergreen...

Atlas Air.(1st-half earnings)(Brief Article)
October 1, 2003... Atlas Air said it will complete its financial restructuring and implement agreements reached with its creditors and lessors through a pre-negotiated Chapter 11 filing it is planning for Dec. Separately, Atlas reported unaudited financial...

Airborne.(Cargo)(Brief Article)
October 1, 2003... Airborne said the acquisition of its ground operations by DHL was completed Aug. 15. Also, ABX Air was spun off into an independent company that is wholly owned by Airbone's former shareholders,

EVA Air.(opened its EVA Air Cargo Center Europe in Brussels)(Brief Article)
October 1, 2003... EVA Air opened its EVA Air Cargo Center Europe in Brussels. The facility will become the company's hub for its European cargo operations and business.

LanChile Cargo.(new facility at JFK New York)(Brief Article)
October 1, 2003... LanChile Cargo moved to a newly constructed facility at New York JFK.

Japan Airlines.(orders more 767s)(Brief Article)
October 1, 2003... Japan Airlines ordered seven more CF6-80C2B7F-powered 767-300ERs that will take its fleet to 40. The aircraft, valued at $850 million at list prices, will be acquired through an operating lease with Mitsubishi Corp. Deliveries are expected to...

Shanghai Airlines.(orders five 757s)(Brief Article)
October 1, 2003... Shanghai Airlines ordered five PW2037-powered 757-200s valued at $410 million at list prices. Pratt valued the order for 10 engines at 580 million at list prices. The first three 757s are scheduled for delivery in the first half of 2004....

ILFC.(Equipment)(Brief Article)
October 1, 2003... ILFC selected GE-Pratt & Whitney Engine Alliance GP7270s for up to 14 new A380s. The agreement, which covers four firm and 10 option A380s, is valued at $200 million for the firm aircraft and $800 million if all options are exercised, ILFC...

CIT Aerospace.(Equipment)(Brief Article)
October 1, 2003... CIT Aerospace ordered 14 V2500 engines valued at $100 million to power seven A320 family aircraft on order.

CAE.(JetBlue orders simulators)(Brief Article)
October 1, 2003... CAE finalized a letter of intent with JerBlue Airways for four A320 and two Embraer 190 simulators plus seven options. The airline also named CAE its exclusive simulator provider for the next 10 years, Value of the contract was put at C$85...

Frontier Airlines.(to sell more common stock)(Brief Article)
October 1, 2003... Frontier Airlines said it plans to sell 3.7 million shares of its common stock pursuant to a previously filed shelf registration statement.

Qatar Airways.(Leasing & Finance briefs)(Brief Article)
October 1, 2003... Qatar Airways signed on agreement with Standard Chartered Bank in Doha for a $736 million interest rate swap transaction that provides an interest rate hedging facility to amend the long-term borrowing costs for 12 aircraft.

Boullioun Aviation Services.(Leasing & Finance briefs)(Brief Article)
October 1, 2003... Boullioun Aviation Services inked a medium-term lease for a new V2500-A5-powered A320-200 with Frankfurt-based Aero Lloyd.

Emirates.(to lease six A340s)(Brief Article)
October 1, 2003... Emirates will lease six A340s-300s previously owned by Singapore Airlines from 2004 pending the arrival of its first 777-300ER. Emirates has ordered 26 777-300ERs.

Hawaiian Airlines.(Leasing & Finance briefs)(Brief Article)
October 1, 2003... Hawaiian Airlines retired bankruptcy court approval to assume restructured lease agreement with ILFC for four 767-300ERs.