Air Transport World articles from October 2004

Air Transport World archives from October 2004

Jet fuel prices *.(Trends)(Brief Article)(Illustration)
October 1, 2004... Jet Fuel Prices * August 13, 2004 New York 123.16 US Gulf Coast 121.77 Los Angeles 130.70 Rotterdam 131.54 Singapore 122.62 * Spot cash markets (average)....

Top 20 airlines: January-August 2004.(Trends)(Brief Article)(Illustration)
October 1, 2004... Top 20 Airlines January-August 2004 Rank Airline RPKs (000) 1 American 142,118,375 2 United 124,801,725 3 Delta 118,744,844 4 ...

Exchange rate: currency units per US dollar.(Trends)(Brief Article)(Illustration)
October 1, 2004... Exchange Rate Currency units per US dollar Country/Currency 8/31/04 6/30/04 Brazil/Real 2.945 3.109 Canada/$ 1.3194 1.3453...

Outrunning the bear.(Editorial)
October 1, 2004... There's an old joke about competition in the airline industry and it goes something like this: Two airline CEOs are on a camping trip when they see--and are seen by--a large, hungry grizzly bear. The first CEO immediately takes off his hiking...

Bankrupt again, US Airways aims to become an LCC.(Limited Liability Company)(Brief Article)
October 1, 2004... Installation of "state-of-the-art" IFE systems, a simpler pricing structure and dc-peaking of hub operations all are part of US Airways' strategy to emerge from its second bankruptcy reorganization. The carrier filed for Chapter 11 protection...

Delta to eliminate up to 7,000 more jobs.(Brief Article)
October 1, 2004... Delta Air Lines plans to cut 6,000-7,000 jobs over the next 18 months, reduce pay and benefits for those who remain, close its Dallas/Ft. Worth operation, de-peak its Atlanta hub and eliminate four subfleets as part of a transformation plan...

China Southern to join SkyTeam; NW, CO, KLM inducted.(Brief Article)
October 1, 2004... China Southern Airlines signed an agreement that will lead to membership in SkyTeam, making it the first airline in China to join a global alliance. According to SkyTeam, the agreement "lays the groundwork for the airline to officially join the...

BA sells Qantas stake.(Brief Article)
October 1, 2004... British Airways sold its 18.25% stake in Qantas early last month for A$1.1 billion ($765.1 million). Reflecting the strength of the Australian airline, the 336 million shares offered by BA through underwriter Citigroup were taken up by a spread...

Errors, corruption suspected in Russian bombings.(Sibir Airlines' employee corruption )(Brief Article)
October 1, 2004... Police mistakes and employee corruption apparently played key roles in permitting bombladen Chechen terrorists to board separate passenger flights at Moscow Domodedovo on Aug. 24. Both aircraft, a Sibir Airlines Tu-154 and a Volga-Aviaexpress...

GDSs win one.(Brief Article)
October 1, 2004... Northwest Airlines quickly retreated from a plan to charge travel agents for bookings made via a CDS in order to encourage agents to book directly with the airline. Northwest unveiled its $7.50/C$9.50 "Shared GDS Fee" on Aug. 24 and it...

US Airways.(Reorganization and restructuring)(Brief Article)
October 1, 2004... US Airways filed for its second Chapter 11 bankrutpcy reorganizationlast month, citing revenue and high fuel prices

Quote of the month.(Brief Article)
October 1, 2004... "The airline marketplace has irreversibly changed. Price competition from low-cost carriers is a permanent element of the new market and the low-cost carriers are here to stay. Airlines that do not adjust to that reality are doomed to fail."...

Key Alitalia unions accept restructuring deals.(Alitalia Linee Aeree Italiane S.p.A.)(Brief Article)
October 1, 2004... Alitalia ground workers and pilots in mid-Sept, accepted restructuring packages that the airline said collectively will save 202 million [euro] ($246 million). The agreements will result in 2,500 job cuts among ground staff while the pilots'...

Air France-KLM Group.(Europe report)(Brief Article)
October 1, 2004... Air France-KLM Group reported a net profit of 95 million [euro] ($115.5 million) for the June quarter, a period that includes two months' results for KLM and a full quarter for AF. This compares to a pro forma net profit of 46 million [euro] in...

Swiss International Air Lines.(financial report)(Brief Article)
October 1, 2004... Swiss International Air Lines reported a Sir45 million net profit for the second quarter ended June 30, greatly improved versus a Sfr133 million net loss in the 2003 second quarter, although current-year results benefited from a one-time gain...

British Airways.(Europe report)(Brief Article)
October 1, 2004... British Airways will cut its winter flying program by 2% for three months as a measure "to protect its operational performance," the airline announced Sept. 15. The move followed it week of continuous flight cancellations by BA at London...

Aer Lingus.(Europe report)(Brief Article)
October 1, 2004... Aer Lingus will discontinue offering business class on all its short-haul flights from April onward and its "position within the oneworld alliance is currently under review and will be discussed at the next oneworld chief executives meeting in...

Scandinavian Airlines.(Europe report)(Brief Article)
October 1, 2004... Scandinavian Airlines effective Oct. 31 will introduce a new service product on European routes comprising three segments: Economy, Economy Flex and Business. Economy is a low-price offering competing with the lowest fares on the market. Meals...

Finnair.(Europe report)(Brief Article)
October 1, 2004... Finnair earned a 7.5 million [euro] ($9.3 million) net profit for the June quarter, a turnaround from a loss of 5 million [euro] a year ago but still "a clear disappointment," said President and CEO Keijo Suila. Turnover rose 11.9% to 409.8...

SN Brussels Airlines.(Europe report)(Brief Article)
October 1, 2004... SN Brussels Airlines posted a net profit of 1.9 million [euro] ($2.3 million) for the six months ended June 30, reversing a 23.4 million [euro] net loss in the year-ago period. But the airline warned of a "challenging" market outlook. Total...

Austrian Airlines and Lauda Air flight.(Europe report)(Brief Article)
October 1, 2004... Staff reached agreement on a new pay deal after 18 months of negotiations and several strikes that resulted in financial damage of 5 million [euro] ($6 million) Austrian Airlines and Lauda Air flight staff reached agreement on a new pay...

Icelandair Group.(Financial Report)(Brief Article)
October 1, 2004... Icelandair Group, parent of Icelandair, reported a first-half profit after tax of 12 million kronur ($168,995) compared to a 903 million kronur loss in the first six months of 2003. Group turnover rose 18% to 18.8 billion kronur.

Transavia.(Europe report)(Luchtvaartmaatschappij Transavia Holland B.V.'s Basiq Air brand to go)(Brief Article)
October 1, 2004... Transavia said that as of Jan. 1 it will shelve its Basiq Air brand that it used to market and sell low-Fare flights operated by the leisure carrier.

Martinair.(Martinair Holland N.V financial reports)(Brief Article)
October 1, 2004... Martinair lost 6 million [euro] ($7.3 million) in the 2004 first half, narrowed from a loss of 8 million [euro] last year.

Adria Airways and Croatia Airlines became the second and third airlines to receive approval to join the Star Alliance as regional members.(Europe report)(Brief Article)
October 1, 2004... Adria Airways and Croatia Airlines became the second and third airlines to receive approval to join the Star Alliance as regional members. Blue1, which is expected to enter the alliance later this year, was the first to receive approval.

SAS Group.(contracts SAS Technical Services AB)(Brief Article)
October 1, 2004... SAS Group on Oct. 1 will transform SAS Technical Services from primarily being Scandinavian Airlines' internal maintenance function to an independently operating incorporated subsidiary named SAS Technical Services AB.

Airbus and an ARINC/Telenor partnership, within days of one another, carried out key tests on the road to delivering cellphone technology to the aircraft cabin.(Europe report)(Brief Article)
October 1, 2004... Airbus and an ARINC/Telenor partnership, within days of one another, carried out key tests on the road to delivering cellphone technology to the aircraft cabin. Airbus, supported by Icarelink, successfully completed its first inflight trial of...

Alteon Training.(Europe report)(Brief Article)
October 1, 2004... Alteon Training opened its new 7 million [euro] ($12.6 million) aviation training center near London Gatwick.

SR Technics Switzerland.(Europe report)(Brief Article)
October 1, 2004... SR Technics Switzerland reached an agreement with Airbus under which it will be commissioned to perform work on Airbus aircraft that could include cabin refurbishments and modifications, aircraft painting and installation of IFE.

Iberia's maintenance division.(Europe report)(Brief Article)
October 1, 2004... Iberia's maintenance division signed a contract to inspect and repair aircraft engines and accessories for China Southern Airlines, including major overhauls of the RB211-535E4s powering the carrier's 757s.

Siberia Airlines.(Europe report)(usage of flight management system database for its fleet of A310s)(Brief Article)
October 1, 2004... Siberia Airlines signed a contract to use Lufthansa Systems' flight management system database for its fleet of A310s.

Sabre Airline Solutions.(Europe report)(acquired Stockholm-based RM Rocade)(Brief Article)
October 1, 2004... Sabre Airline Solutions acquired Stockholm-based RM Rocade, which develops and sells software solutions to airlines for commercial planning, crew management and operations control.

Carmen Systems AB.(Europe report)(agreement for use of its crew-planning solutions)(Brief Article)
October 1, 2004... Carmen Systems AB announced that Virgin Atlantic Airways signed a long-term agreement for use of its crew-planning solutions.

Zodiac Group.(Europe report)(Brief Article)
October 1, 2004... Zodiac Group completed its $70 million acquisition of Scott Aviation from Tyco International. Scott, which manufactures onboard oxygen systems, will be known as AVOX Systems.

MTU Maintenance Hannover.(Europe report)(Brief Article)
October 1, 2004... MTU Maintenance Hannover won its first Russian customer, concluding a five-year exclusive contract with VIM Airlines for repair and overhaul of PW2000 engines powering its 757s.

China Southern Airlines.(Asia/Pacific report)(financial reports)(Brief Article)
October 1, 2004... China Southern Airlines posted a net profit attributable to shareholders of 266.2 million yuan ($32.1 million) for the first six months of 2004, a dramatic turnaround compared to a 1.23 billion yuan loss in the year-ago period that was...

Thai Airways International.(Asia/Pacific report)(financial reports)(Brief Article)
October 1, 2004... Thai Airways International reported a net loss of 836.33 million baht ($20.12 million) for the third quarter ended June 30 despite more robust passenger numbers. However, the airline still expects to record a full-year profit. Passenger traffic...

Air New Zealand.(Asia/Pacific report)(financial reports)(Brief Article)
October 1, 2004... Air New Zealand reported an after-tax profit of NZ$166.2 million ($108.1 million) for the fiscal year ended June 30, roughly flat compared to last year's earnings of NZ$165.7 million and on par with market expectations (see article, p. 26).

Tiger Airways.(Asia/Pacific report)(Brief Article)
October 1, 2004... Tiger Airways, Singapore's second low-cost carrier after Valuair, launched its first services Sept. 15 between Singapore and Bangkok, Phuket and Hat Yai with a pair of 180-seat A320s. CEO Patrick Gan said Tiger expects to become profitable...

Cathay Pacific Airways.(Asia/Pacific report)(Brief Article)
October 1, 2004... Cathay Pacific Airways gained greater access to Beijing when a landmark aviation deal was struck last month between Hong Kong and China, but it will not receive rights to operate passenger service to Shanghai before 2006. Under the new accord,...

European Airline Traffic August 2004.(Brief Article)(Illustration)
October 1, 2004... European Airline Traffic August 2004 RPKs % chg. ASKS (billions) 2003 (billions) AF-KLM (1) 15.97 6.6 19.55 AUA...

Indian Airlines.(Asia/Pacific report)(Brief Article)
October 1, 2004... Indian Airlines posted a modest profit of 59.5 million rupees ($1.2 million) in the fiscal first quarter ended June 30, reversing a net loss of 446.5 million rupees for the same period last year. The airline recorded a 13.3% lift in passengers...

Air Deccan.(Asia/Pacific report)(Brief Article)
October 1, 2004... Air Deccan selected the Free2Fly concept offered by SAS Group Component and EADS Sogerma Services to support its fleet of A320s, which will enter service this month.

Valuair.(Asia/Pacific report)(Brief Article)
October 1, 2004... Valuair selected Sabre Airline Solutions' SabreSonic passenger management solution to drive its reservations, pricing, ticketing, reporting and customer service systems.

Connexion by Boeing.(Asia/Pacific report)(Brief Article)
October 1, 2004... Connexion by Boeing was selected by Asiana Airlines to provide onboard Internet service for the carrier's long-haul fleet. The letter of intent calls for installation to begin on Asiana's 777-200ERs targeted for delivery in July 2005.

ARINC.(Asia/Pacific report)(contracts of ARINC Inc.)(Brief Article)
October 1, 2004... ARINC's Asia/Pacific division was awarded contracts to provide Korean Air, Japan Airlines, Asiana Airlines and All Nippon Airways with iMuse common-use passenger technology at Korea's Gimpo International Airport.

Goodrich Corp.(Asia/Pacific report)(Brief Article)
October 1, 2004... Goodrich Corp entered into an agreement with ANA to supply wheels and brakes for 45 737-700s that are scheduled to enter into service by Dec. 2005.

SriLankan Airlines.(Asia/Pacific report)(Brief Article)
October 1, 2004... SriLankan Airlines inked a multiyear agreement with Shepherd Systems that provides the airline with access to Shepherd's MarketMaster traffic flow assessment tool.

SIA Engineering Co.(Asia/Pacific report)(Brief Article)
October 1, 2004... SIA Engineering Co. and Tiger Airways signed a five-year maintenance deal valued at S$110 million ($64.8 million) for the provision of MRO services on Tiger's A320 fleet.

American Airlines and United Airlines, for a third time this year, agreed to trim schedules at Chicago O'Hare to reduce delays there.(North America report)(Brief Article)
October 1, 2004... American Airlines and United Airlines, for a third time this year, agreed to trim schedules at Chicago O'Hare to reduce delays there. The two account for 88% of flights at ORD. Other airlines will reduce flights as well, and all carriers agreed...

United.(North America report)(Reorganization and restructuring)(Brief Article)
October 1, 2004... United's proposal to suspend further contributions to its pension plans as it works its way through bankruptcy has stirred calls for changes to pension law to prevent companies in Chapter 11 from taking such steps. The US Pension Benefit...

Continental Airlines.(North America report)(Human resource management)(Brief Article)
October 1, 2004... Continental Airlines will trim approximately 425 mostly management and clerical positions as part of a new set of cost-saving initiatives announced last month intended to yield an annual pretax benefit of roughly $200 million by 2007, with $125...

American Airlines and American Eagle will add 70 frequencies on a number of existing routes out of Dallas/Ft.(North America report)(Brief Article)
October 1, 2004... American Airlines and American Eagle will add 70 frequencies on a number of existing routes out of Dallas/Ft. Worth by next summer, increasing the carrier's presence at its main hub by 10% as Delta closes its own hub operation there.

Air Canada.(North America report)(Brief Article)
October 1, 2004... Air Canada's creditors overwhelmingly voted to approve its reorganization plan, clearing the way for the airline to emerge from the Canadian equivalent of Chapter 11 at the end of last month.

Alaska Airlines.(North America report)(Human resource management)(Brief Article)
October 1, 2004... Alaska Airlines said it will lay off roughly 900 of its 11,000 employees including around 9% of management staff and close its heavy maintenance base in Oakland. The steps will save $30-$35 million annually and are part of a "wide-ranging"...

America West Airlines.(North America report)(Brief Article)
October 1, 2004... America West Airlines' customer service representatives voted in favor of representation by the International Brotherhood of Teamsters.

US Transportation Security Administration.(North America report)(Secure Flight system to be tested )(Brief Article)
October 1, 2004... US Transportation Security Administration in late Aug. said it will "move forward to test a new passenger pre-screening system" called Secure Flight to replace CAPPS II. According to the agency, Secure Flight is a "modified version" of the...

US Majors Traffic August 2004.(Brief Article)(Illustration)
October 1, 2004... US Majors Traffic August 2004 RPMs % chg. ASMs (billions) 2003 (billions) Alaska 1.66 7.9 2.09...

Northwest.(Brief Article)
October 1, 2004... Northwest placed its first A330-200 into service between Portland, Ore., and Tokyo last month. Aircraft are configured for 243 passengers in two classes

Hamilton Sundstrand.(North America report)(Brief Article)
October 1, 2004... Hamilton Sundstrand was selected by Boeing to provide the electric motor hydraulic pump subsystem for the 7E7, one of several 7E7 wins for the United Technologies subsidiary.

Northrop Grumman and BAE Systems.(North America report)
October 1, 2004... Northrop Grumman and BAE Systems were selected by the US Dept. of Homeland Security to participate in Phase II of its Counter-MANPADS program to protect commercial aircraft against threats posed by guided missiles. Under separate $45 million...

AvAero's FuelMizer.(North America report)(product approval)(Brief Article)
October 1, 2004... AvAero's FuelMizer received EASA approval. It already has been approved by FAA, Australia and New Zealand for fuel burn reduction modifications of the 737-200 and dash 300. AvAero is in the approval process for amending the STC for the 737-400...

Goodrich Corp.(North America report)(Brief Article)
October 1, 2004... Goodrich Corp. entered into an agreement with Atlas Air Worldwide Holdings for wheels, brakes and services to be provided to its subsidiaries Atlas Air and Polar Air Cargo for a total of 42 747s.

Honeywell.(North America report)(Brief Article)
October 1, 2004... Honeywell was selected by Evergreen International Airlines to provide wheel and brake MRO services for the airline's fleet of 10 747s and five DC-9s.

ITA Software.(North America report)(Brief Article)
October 1, 2004... ITA Software said Continental Airlines is the first carrier to launch its new shopping tool ,allowing frequent fliers to search more easily online for reward travel.

Hamilton Aerospace.(North America report)(Shaheen Air International)(Brief Article)
October 1, 2004... Hamilton Aerospace signed a $3 million contract with Shaheen Air International covering MRO services on four former America West 737s.

Avianca.(Latin America/Caribbean report)(Avianca Airlines' reorganization plan )(Brief Article)
October 1, 2004... Avianca was granted until Oct. 31 to obtain creditor approval for its proposed reorganization plan. The plan, if okayed, will result in the injection of $63 million in new capital into Avianca and SAM from major shareholder National Federation...

Varig Engineering & Maintenance.(Latin America/Caribbean report)(Federal Aviation Administration certification)(Brief Article)
October 1, 2004... Varig Engineering & Maintenance received FAA certification to perform maintenance on Airbus aircraft operated by US airlines. VEM is an authorized Airbus service center. First customer is an unnamed US airline for which VEM will provide a D...

El Al.(Africa/Middle East report)(El Al Israel Airlines)(financial reports)(Brief Article)
October 1, 2004... El Al earned $7 million in the June quarter, reversing a $28.8 million net loss in the same period of 2003. For the first half of 2004, it had a net profit of$11.5 million compared to a net loss of $64.3 million last year. Turnover rose 24% to...

Virgin Group.(Africa/Middle East report)(Brief Article)
October 1, 2004... Virgin Group was selected by the Nigerian government as a partner in a new Nigerian airline to be called Virgin Nigeria Airlines.

Lufthansa Cargo.(Cargo)(Human resource management)(Brief Article)
October 1, 2004... Lufthansa Cargo plans to cut 480 jobs, or around 10% of its workforce, by 2006, the bulk of them in the administrative area. The cutbacks are part of its Excellence + Growth program launched at the end of 2003, which aims to deliver a profit of...

Mercator.(Cargo)(Brief Article)
October 1, 2004... Mercator implemented its Rapid Cargo revenue accounting system at Singapore Airlines Cargo.

Singapore Airlines.(Equipment)(Brief Article)
October 1, 2004... Singapore Airlines signed a letter of intent to purchase up to 31 GE90-115B-powered 777-300ERs including 18 firm orders for delivery between 2006 and 2010. Including spares, the order was valued at $7.35 billion. GE valued the firm engine order...

Etihad Airways.(Equipment)(Brief Article)
October 1, 2004... Etihad Airways ordered five GE90-115-powered 777-300ERs subject to a firm contract being signed.

Cebu Pacific.(Equipment)(Brief Article)
October 1, 2004... Cebu Pacific will purchase 12 A319s and lease two A320s to replace its 17 DC-9s and three 757s. Engine selection was not announced. The A319s are scheduled to be delivered from Sept. 2005 until 2007.

AeroMexico.(Equipment)(Brief Article)
October 1, 2004... AeroMexico will acquire 10 737-700s including eight from Boeing and two via lessors. They will be delivered between July and Dee. 2005.

Copa Airlines.(Equipment)(Brief Article)
October 1, 2004... Copa Airlines ordered two 737-700s for delivery in 2006. It also will receive a 737-700 and a 737-800 next year from leasing companies.

Air China.(Equipment)(Brief Article)
October 1, 2004... Air China ordered seven CFM567-powered 737-700s. Deliveries will begin in Nov. and extend through mid-2006.

Azerbaijan Hava Yollan.(Equipment)(Brief Article)
October 1, 2004... Azerbaijan Hava Yollan signed a contract with Airbus for three A319s and one Airbus Corporate Jetliner. AZAL will receive its first A319 in mid-2005. All aircraft will be powered by CFM56-5s.

Korean Air.(Equipment)(Brief Article)
October 1, 2004... Korean Air ordered 31 PW4000-family engines to power nine 777-200ERs and two 747-400ERFs on order. Pratt valued the order at $500 million. Deliveries begin in 2005 and for the 777s extend through 2009.

Turkish Airlines.(Equipment)(Brief Article)
October 1, 2004... Turkish Airlines selected IAE V2500s to power the 31 A320s it placed an order for earlier this year at Farnborough (see article, p. 37). First deliveries are scheduled for early 2006. At list price, the order is valued at $400 million, IAE...

CIT Aerospace.(Equipment)(Brief Article)
October 1, 2004... CIT Aerospace selected IAE V2500 engines to power 12 A320s currently on order. Value of the deal is $170 million at list prices.

Corrections.(Equipment)(Correction Notice)
October 1, 2004... Nordic Leisure (ATW, 9/04, p. 12) is not affiliated with or owned by Nordic Airlink. O'Hare's proposed new runway configuration would provide four runways north of the terminal complex and four south of it. The proposed layout was incorrectly...

AWAS and Loftleidir Icelandic, the wet-leasing subsidiary of Icelandair Group, launched a new wet-lease initiative under which AWAS will provide 757s and 767s and Icelandair will operate the aircraft on a wet-lease basis for customers.(Leasing & Finance briefs)(Brief Article)
October 1, 2004... AWAS and Loftleidir Icelandic, the wet-leasing subsidiary of Icelandair Group, launched a new wet-lease initiative under which AWAS will provide 757s and 767s and Icelandair will operate the aircraft on a wet-lease basis for customers. AWAS...