Air Transport World articles from September 2003

Air Transport World archives from September 2003

Trends.(includes airline data, foreign exchange rates, jet fuel prices)(Illustration)
September 1, 2003... [GRAPHICS OMITTED] Top 20 Airlines Jan.-July 2003 Airline RPKs (000) 1 American 112,258,640 2 United 94,993,173 3 Delta 90,763,527 4 Northwest ...

'People do not want to travel'.(Editorial)(analysis of new travel restrictions)(Editorial)
September 1, 2003... Ever since some caveman had the idea to tie his meager belongings into an animal-skin sack before a trip to the in-laws, the desire to secure one's travel possessions prior to a journey has been embedded deep within the generic code of...

Southwest now No. 1 in US domestic enplanements.(Brief Article)
September 1, 2003... Southwest Airlines became the largest US domestic carrier in terms of passenger enplanements in May, surpassing Delta Air Lines. Based on data supplied to the US Dept. of Transportation by the airlines themselves, Southwest enplaned 6.54...

Justice Dept. finds Orbitz is not anticompetitive.(Brief Article)
September 1, 2003... US Dept. of Justice closed its review of Orbitz by concluding that the online travel company founded by five US Majors has not reduced competition or harmed airline consumers. "The Antitrust Division considered several theories of harm, none of...

ICAO sees traffic growth resuming in 2004.(Brief Article)
September 1, 2003... After a year of-decline followed by two years of stagnation, world airline industry passenger traffic (RPKs) will grow 4.4% in 2004--finally exceeding the traffic level attained in 2000, according to ICAO's latest forecast. Airlines belonging...

Boeing tests fuel tank inerting system.(Brief Article)
September 1, 2003... Boeing expected to complete testing this month of a fuel tank inerting system that it hopes to have certificated in early 2005 for initial use in the two models most prone to center fuel tank explosions, the 737 and 747. The system will weigh...

Delta pilots nix pay cuts.(Brief Article)
September 1, 2003... Delta Air Lines' pilots, represented by the Air Line Pilots Assn., rejected management's request for a 22% pay cut and elimination of scheduled raises in 2003 and 2004 as the first phase of a broad restructuring of labor costs at the carrier....

Air Canada.(North America report)(reports second quarter financial results)(Brief Article)
September 1, 2003... Air Canada, battered by the SARS outbreak in Toronto, the war in Iraq and expenses associated with its financial restructuring, reported a loss of C$566 million ($405.4 million) for the second quarter, reversing a profit of C$30 million last...

Calgary-based WestJet.(North America report)(reports second quarter financial results)(Brief Article)
September 1, 2003... Calgary-based WestJet reported its 26th consecutive quarter of profit for the three months to June 30, earning C$14.7 million ($10.5 million), up 19.5% from C$12.3 million last year. Chairman, President and CEO Clive Beddoe noted the record...

American Airlines.(North America report)(plans restructuring which will result in over 2,000 layoffs)(Brief Article)
September 1, 2003... American Airlines intends to shrink its hub at St. Louis effective Nov. 1 to focus on O&D traffic and also will close the reservations center there. The downsizing of the St. Louis hub from 417 to 207 daily departures and the closure of the res...

Quote of the month.
September 1, 2003... "This was without a doubt the most challenging period in Cathay Pacific's history." --Chairman James Hughes-Hallet commenting on the 2003 first half

ATA Holdings.(North America report)(warns of inability to pay debt, lease obligations next year)(Brief Article)
September 1, 2003... ATA Holdings, parent of ATA Airlines, the 10th largest US passenger carrier, warned that it will not be able to meet debt and lease obligations next year totaling $549.2 million. In 2003, the carrier must pay $326.7 million in interest and...

JetBlue.(North America report)(reports second quarter financial results)(Brief Article)
September 1, 2003... JetBlue reported net income of $38 million, including $11.5 million net of tax in government compensatory funds, for the second quarter, more than double its net income of $14.6 million in the year-ago period. Operating revenues rose 63.9% to...

First A318.(Frontier Airlines Inc. receives first of five A318 aircraft ordered)(Brief Article)
September 1, 2003... [ILLUSTRATION OMITTED] Caption: First A318 was delivered to Frontier Airlines in July. The airline has a total of five of the CFM56-powered aircraft on order.

Midwest Express Holdings.(North America report)(reports second quarter financial results)(Brief Article)
September 1, 2003... Midwest Express Holdings, parent of Midwest Airlines and Skyway Airlines, earned $6.6 million in the second quarter, up significantly from just $900,000 a year ago. However, the improvement was owing to $11.4 million in security reimbursement,...

World Airways.(North America report)(reports second quarter financial results)(Brief Article)
September 1, 2003... World Airways posted net income of $6.4 million for the second quarter, up from $2 million earned in the year-ago period. Operating revenues rose 31.9% to $116.6 million owing to significant growth in both military cargo and commercial cargo...

US majors traffic.(North America report)(Brief Article)(Illustration)
September 1, 2003... US Majors Traffic July 2003 RPMs % chg. ASMs (billions) 2002 (billions) Alaska 1.51 15.2 2.00 American ...

AirTran Airways'.(North America report)(continues labor talks with flight attendants)(Brief Article)
September 1, 2003... AirTran Airways' 1,100 flight attendants, represented by the Assn. of Flight Attendants, rejected a tentative five-year contract with the airline.

Boeing.(North America report)(aircraft manufacturer reports second quarter financial results)(Brief Article)
September 1, 2003... Boeing lost $192 million on revenues of $12.8 billion for the second quarter, down from net earnings of $779 million on sales of $13.9 billion in the year-ago period. Results were heavily impacted by charges related to its launch and satellite...

Garmin International.(North America report)(will purchase UPS Aviation Technologies for $38 million)(Brief Article)
September 1, 2003... Garmin International, a unit of Garmin Ltd., will acquire UPS Aviation Technologies, a subsidiary of UPS, for $38 million in cash. The acquisition is subject to customary closing conditions and is expected to become final in the third quarter....

Goodrich Corp.(North America report)(wins aircraft seat contract from Airbus Industrie)(Brief Article)
September 1, 2003... Goodrich Corp. was selected by Airbus to provide cabin attendant and cockpit seats for the A380. The deal has the potential to generate sales in excess of $40 million over the life of the program, with first deliveries scheduled in 2005,...

Air Canada Technical Services.(North America report)(wins maintenance contract from JetBlue)(Brief Article)
September 1, 2003... Air Canada Technical Services will maintain JetBlue's A320s under a six-year agreement valued at approximately C$139 million ($99 million).

Aloha Airlines.(North America report)(orders shipsets from Aviation Partners Boeing)(Brief Article)
September 1, 2003... Aloha Airlines ordered 12 737-700 Blended Wingler shipsets from Aviation Partners Boeing.

L-3 Communications.(North America report)(acquires Flight Systems Engineering)(Brief Article)
September 1, 2003... L-3 Communications said it acquired substantially all the assets of Flight Systems Engineering and will integrate its product lines into those of L-3 Communications' Aviation Recorders Div.

ARINC.(North America report)(installs digital voice communications system for Air Canada)(Brief Article)
September 1, 2003... ARINC installed a digital voice communications system for use by Air Canada's flight dispatching operations across North America.

Nordam Group.(North America report)(announces facility consolidation)(Brief Article)
September 1, 2003... Nordam Group said it will consolidate its Ft. Worth. regional aircraft component repair and overhaul facility into its Tulsa-based Repair Division.

Japan Airlines System.(Asia/Pacific report)(reports loss in April-June quarter)(Brief Article)
September 1, 2003... Japan Airlines System reported a massive [yen] 77.28 billion ($642.3 million) loss for the April-June quarter, a period heavily impacted by SAPS and to a lesser extent the Iraq war. The group's operating revenues were [yen] 398.8 billion and...

ATW through the years.(Asia/Pacific report)
September 1, 2003... Five years ago in ATW: Privately owned airlines reacted strongly to a decision by the EUC that there is no need for Air France to repay Ffr20 billion ($3.2 billion) in aid from its government, despite the fact that the European Court ruled the...

Northwest Airlines.(receives PW4168-powered A330-300)(Brief Article)
September 1, 2003... [ILLUSTRATION OMITTED] Caption: Northwest Airlines took delivery of its first PW4168-powered A330-300 in August. Aircraft is the first to feature NWA's new business class, including lie-flat seats equipped with 110-volt PC power, and...

All Nippon Airways Group.(Asia/Pacific report)(Brief Article)
September 1, 2003... All Nippon Airways Group lost [yen] 18.32 billion ($152.2 million) in the first quarter to June 30 but still predicts that it will make a profit for the year to next March 31 of [yen] 15 billion. Passenger revenue on international routes was...

Singapore Airlines Group.(fiscal first-quarter earnings)(Brief Article)
September 1, 2003... Singapore Airlines Group reported an unprecedented net loss of S$312.3 million ($177.7 million) for the fiscal first quarter ended June 30, reversing a profit of S$478.4 million in the year-ago period. First-quarter results included an...

Cathay Pacific Airways.(Asia/Pacific report)(first-half net loss)(Brief Article)
September 1, 2003... Cathay Pacific Airways' strong first quarter helped to mitigate the damage inflicted by the SARS outbreak as it reported a first-half net loss of HK$1.24 billion ($159.1 million). "This was without a doubt the most challenging period in Cathay...

Air New Zealand.(Asia/Pacific report)(no-frills service extension)(Brief Article)
September 1, 2003... Air New Zealand is extending its "no-frills" domestic operation to services between Australia and New Zealand as it prepares to face increased competition on the heavily flown corridor from Virgin Blue and Emirates. Tasman Express is expected...

Asiana.(Asia/Pacific report)(operating loss)(Brief Article)
September 1, 2003... Asiana reported an operating loss of $50.1 million in the first half of 2003, compared to a $54.3 million profit for the same period in 2002. The airline said it hopes to post an operating profit of approximately $51 million for the full year.

ValuAir.(Asia/Pacific report)(flight launches planned for 2004)(Brief Article)
September 1, 2003... ValuAir, the proposed Singapore-based low-cost airline being created by former SIA executives, said it aims to launch flights in the first half of 2004. However, it is expected to face competition from SIA, which is certain to set up a low-fare...

Vietnam and Canada.(Asia/Pacific report)(scheduled air service agreement)(Brief Article)
September 1, 2003... Vietnam and Canada concluded their first agreement providing for scheduled air services between the countries including codesharing. Air Canada said it has had preliminary discussions with Vietnam Airlines regarding a codeshare relationship.

Korean Air.(Asia/Pacific report)(approval for European carrier maintenance)(Brief Article)
September 1, 2003... Korean Air received JAA approval to provide maintenance to European carriers. It valued the potential additional business at $22.5 million in revenue in 2003.

CMC Electronics.(Asia/Pacific report)(order from EVA Air)(Brief Article)
September 1, 2003... CMC Electronics received orders to supply its high-gain satcom antenna system to EVA Air to complete the retrofit of EVA's 747-400 fleer. Orders for the CMA-2102 cover eight aircraft plus four options.

Goodrich Corp.(Asia/Pacific report)(contract with Air New Zealand)(Brief Article)
September 1, 2003... Goodrich Corp. inked a five-year contract valued at more than $4 million with Air New Zealand to provide landing gear overhaul services for ANZ's 747-400s at Goodrich's Miami overhaul center.

SIA Engineering Co. Ltd.(Asia/Pacific report)(agreement with P.T. Jasa Angkasa Semesta)(Brief Article)
September 1, 2003... SIA Engineering Co. Ltd. signed an agreement with PT Jasa Angkasa Semesta to provide line maintenance services at Indonesia's major airports via a joint-venture company, PT Jas Aero-Engineering Services. Subject to approval from the Indonesian...

Malaysia Airlines.(Asia/Pacific report)(B/E Aerospace to supply lie-flat seats)(Brief Article)
September 1, 2003... Malaysia Airlines chose B/E Aerospace to supply lie-flat seats as well as new lights, cabinetry, lavatories, luggage bins and storage closets for a premium cabin upgrade of its 747-400s. In addition, the airline will upgrade its 777 fleet with...

British Airways.(fiscal first quarter earnings)(Brief Article)
September 1, 2003... British Airways reported a net loss of 63 million [pounds sterling] ($101.8 million) for the fiscal first quarter ended June 30, steeply down from earnings of 40 million [pounds sterling] last year, while revenues declined 10.7% to 1.8 billion...

Deutsche Lufthansa AG.(2nd-quarter earnings)(Brief Article)
September 1, 2003... Deutsche Lufthansa AG posted a net loss of 34 million [euro] ($38.5 million) in the second quarter to June 30 compared with a 160 million [euro] net profit in the year-ago period as the Iraq war, SARS and "weak macroeconomic momentum" combined...

China Eastern.(took delivery of its first RR Trent 500-powered A340-600)(Brief Article)
September 1, 2003... [ILLUSTRATION OMITTED] Caption: China Eastern recently took delivery of its first RR Trent 500-powered A340-600, of five on order. It becomes the first mainland Chinese airline to operate the type.

KLM Group.(fiscal first-quarter earnings)(Brief Article)
September 1, 2003... KLM Group, already anticipating a full-year net loss, posted a deficit of 54 million [euro] ($62 million) for its fiscal first quarter ended June 30 compared to income of 11 million [euro] last year. "Our first-quarter results continue to...

SAS Group.(first-half earnings, 2003 earnings warning)(Brief Article)
September 1, 2003... SAS Group warned that it expects to suffer a 2003 consolidated loss of about Sek2 billion ($245 million) before tax, capital gains and restructuring costs as it reported that net income for the second quarter fell to just Sek66 million from...

Iberia Group.(first-half earnings)(Brief Article)
September 1, 2003... Iberia Group reported 52.6 million [euro] ($59.7 million) in net earnings for the second quarter, a 30.1% decline from a year-ago profit of 75.2 million [euro]. The company said the war in Iraq, the SARS outbreak and a weak economy severely...

Ryanair.(quarterly earnings )(Brief Article)
September 1, 2003... Ryanair posted net income of 40.5 million [euro] ($45.9 million) for the June quarter, up 4% compared to net income of 39 million [euro] in the year-ago period. Operating revenues rose 26% to 245.2 million [euro] on a 45% increase in passenger...

Aer Lingus.(first-half earnings)(Brief Article)
September 1, 2003... Aer Lingus maintained its turnaround momentum in the half-year to June 30, reporting an operating profit from continuing operations of 14.3 million [euro] ($16.3 million) compared to a loss of 12.6 million [euro] for the year-ago period,...

Swiss International Air Lines and Swissport.(accord)(Brief Article)
September 1, 2003... Swiss International Air Lines and Swissport signed an MOU that envisages Swissport taking over all Swiss ground service activities including cargo handling "within the next 12 months." First stations to be outsourced are Johannesburg, Nice,...

Austrian Airlines Group.(first-half earnings report)(Brief Article)
September 1, 2003... Austrian Airlines Group reported a 28.6 million [euro] ($32.5 million) pre-tax loss for the first half of 2003, reversing a pro-tax profit of 4.3 million [euro] last year. CEO Vagn Soerensen said the group was able to mitigate the negative...

Virgin Atlantic Group.(annual earnings report)(Brief Article)
September 1, 2003... Virgin Atlantic Group reported a final pre-tax profit of 15.7 million [euro] ($25.3 million) for the year ended last April 30. The airline lost 92.6 million [euro] in the previous financial year. Current-period results included 33 million...

TAP Air Portugal.(first-half earnings)(Brief Article)
September 1, 2003... TAP Air Portugal cut net losses in the first half to 35.7 million [million] ($41 million), 45% better than the 64.6 million [million] loss recorded in the year-ago period although operating loss widened to 36.8 million [euro] from 32.6 million...

Air Botnia.(will take delivery of four Avro RJs )(Brief Article)
September 1, 2003... [ILLUSTRATION OMITTED] Caption: Air Botnia will take delivery of the last four Avro RJs to be built via a lease deal with BAe Systems. The two RJ85s and two RJ100s had been in storage. These final aircraft will bring the total of BAe 146...

Duo.(new UK air carrier prepares launch)(Brief Article)
September 1, 2003... Duo, a fledgling UK carrier created through a management buyout of Maersk Air Ltd. in June, said it plans to take to the skies Nov. 1 with a network of services from Birmingham to 11 destinations. The company promises "affordable fares across...

Air Lib.(case against former CEO Jean-Charles Charles Corbet over financial collapse)(Brief Article)
September 1, 2003... Air Lib's former CEO Jean-Charles Charles Corbet is the subject of formal legal proceedings over his role in the final collapse of the airline. Corbet is the sole owner of holding company Holco, which took control of Air Lib assets in July...

Iberia.(contracts ARINC to deliver satellite communications services)(Brief Article)
September 1, 2003... Iberia selected ARINC to deliver a package of satellite communications services for passengers and crew on its entire fleet of long-haul aircraft, including new A340-600s.

European Airline Traffic.(for selected airlines)(Brief Article)
September 1, 2003... European Airline Traffic July 2003 Load RPKs % chg. ASKs % chg. factor +/- (billions) 2002 (billions) 2002 (%) 2002...

EADS.(and Airbus 1st-half earnings)(Brief Article)
September 1, 2003... EADS reported a 66 million [euro] ($75.9 million) net loss for the first half, significantly worsened from net income of 91 million [euro] last year. Revenues fell 7% to 13.06 billion [euro] and EBIT dropped 24% to 592 million [euro] from 775...

Berlin Brandenburg Flughafen.(to close Tempelhof airport)(Brief Article)
September 1, 2003... Berlin Brandenburg Flughafen Holding, which runs the German capital's three airports, said it will close Tempelhof at the end of Sept. 2004 as part of plans to build a new international airport on the site of Schoenefeld. Overcrowded Tegel is...

LanChile.(2nd-quarter earnings)(Brief Article)
September 1, 2003... LanChile earned $4.1 million in the quarter ended June 30, reversing a $9.3 million net loss in the year-ago period and marking the airline's first second-quarter profit in six years. Revenues increased 12.5% to $361.5 million. Passenger...

Cintra.(first-half earnings)(Brief Article)
September 1, 2003... Cintra, the holding company of AeroMexico and Mexicana, posted a 699 million peso ($65.3 million) net loss in the second quarter, a 5.6% improvement from a 740 million peso loss in the 2002 period. Operating loss nearly doubled, however, to 594...

TAM-Varig.(TAM CEO resignation makes merger plans uncertain)(Brief Article)
September 1, 2003... TAM-Varig merger plans were thrown into uncertainty following the unexpected resignation of TAM CEO Daniel Mandelli Martin on Aug. 14, reportedly owing to conflict with the airline's major shareholder, Noemy Amaro, widow of the late CEO Rolim...

El Al.(sells stake in North American Airlines)
September 1, 2003... El Al has sold back to North American Airlines for $8.7 million its 24.9% stake in the US carrier that feeds El Al's transatlantic services at its US gateways. El Al also sold an option to acquire another 25%. El Al said it will record a...

Deutsche Post World Net.(first-half earnings)(Brief Article)
September 1, 2003... Deutsche Post World Net reported a "dramatic rise" in consolidated group profits to 650 million [euro] ($747 million) in the first half of 2003 on a 0.8% increase in revenues to 19.2 billion [euro]. As a result, EBIT forecast for the full year...

America West Airlines.(private placement completed)(Brief Article)
September 1, 2003... America West Airlines said it completed its private placement of $75 million issue price of its senior exchangeable notes due 2023.

Debis AirFinance.(Leasing & Finance briefs)(Brief Article)
September 1, 2003... Debis AirFinance, acting as a servicer for AerCo Ltd., closed an operating lease transaction for a CFM56-powered A320-200 for Nouvelair.

Ansett Worldwide.(Leasing & Finance briefs)(Brief Article)
September 1, 2003... Ansett Worldwide delivered two A320-200s on medium-term lease to Wind Jet, a startup airline based in Sicily.

Boullioun Aviation Services.(Leasing & Finance briefs)(Brief Article)
September 1, 2003... Boullioun Aviation Services delivered two 737-300s on medium-term lease to Shandong Airlines. It will deliver two CFM56-7-powered 737-800s on medium-term lease to Sterling, one this fall and the second in early 2004.

Luxor Air.(Leasing & Finance briefs)(Brief Article)
September 1, 2003... Luxor Air leased an ex-Air Lib MD-83 from CC LP, Cayman Islands. The lease was arranged by Sigma Aircraft Management.

Air Europa.(took delivery of a CF6-80-powered 767-300ER )(Brief Article)
September 1, 2003... Air Europa took delivery of a CF6-80-powered 767-300ER an medium-term lease from Ansett Worldwide.

Air Arabia.(to lease six A320-200s)(Brief Article)
September 1, 2003... Air Arabia, a startup to he based at Sharjah, will lease for five years each from ILFC two used and four new A320-200s, with deliveries running through Jan. 2005.

Airborne.(2nd-quarter earnings)(Brief Article)
September 1, 2003... Airborne credited increased domestic shipments and improved operating efficiencies for net income of $8.3 million for the second quarter, up from only $500,000 last year. Results in 2002 included nonrecurring restructuring charges of $2.3...

United Airlines.(Swissport USA's Swissport Cargo Services unit get cargo handling contract)
September 1, 2003... United Airlines contracted Swissport USA's Swissport Cargo Services unit to handle 70% of UA's cargo business, including complete cargo handling at seven airports. At the same time, Brazil's Gol commissioned Swissport Brazil to take on five new...

LTU International Airways.(acquires Leisure Cargo GmbH)(Brief Article)
September 1, 2003... LTU International Airways has taken over for an unspecified sum 100% of Leisure Cargo GmbH, founded in 1999 as a joint venture with Swisscargo. The Dusseldorf-based company markets belly hold capacity of the combined 75 aircraft of LTU, Air...

Frontier Airlines.(to buy more Airbus A319s)(Brief Article)
September 1, 2003... Frontier Airlines signed a letter of intent with Airbus to acquire 15 additional A319s, with purchase rights for up to 23 more. In addition, it said it intends to lease as many as 14 more A319s over the next five years. The LOI calls for the...

Southwest Airlines.(picks up options on 15 737s)(Brief Article)
September 1, 2003... Southwest Airlines firmed options on 15 737-700s, with deliveries in 2004.

Thai Airways.(acquires more Airbus aircraft)
September 1, 2003... Thai Airways formalized its purchase of three A340-500s and five A340-600s, Airbus said. Deliveries will begin in 2005. Rolls-Royce valued the engine portion of the order at $350 million.

Atlantic Coast charts new course as low-cost carrier.(Atlantic Coast Airlines)
September 1, 2003... Atlantic Coast Airlines, which has prospered as a codesharing partner with United Airlines and Delta Air Lines under fee-for-departure arrangements, unveiled a plan to go it alone as an independent low-fare carrier after failing to reach...

ExpressJet Holdings.(private placement)
September 1, 2003... ExpressJet Holdings, parent of ExpressJet, completed the private placement of $125 million of 4.25% convertible notes due 2023 that was announced July 28. The company also contributed $5 million of additional notes pursuant to an option granted...

Honeywell.(maintenance agreement with ExpressJet)(Brief Article)
September 1, 2003... Honeywell signed a maintenance agreement valued at $60 million with ExpressJet. The contract calls for Honeywell to supply maintenance services on the complete suite of Primus 1000 avionics and the engine air turbine start systems for the...

Coming events.(in the aerospace industry)
September 1, 2003... Sept. 7-9 Routes 9th World Route Development Forum, Edinburgh International Convention Centre, Scotland. Contact Nicki Hollick at +44 161 234 2730; website www.routesonline.com. Sept. 8-12 Aerospace Congress & Exposition, Palais de Congres...

Alaska Airlines.(Glenn S. Johnson named VP-finance)(Brief Article)
September 1, 2003... Alaska Airlines elected Glenn S. Johnson VP-finance.

Allegiant Air.(Michael P. Baxter named VP-maintenance & engineering)(Brief Article)
September 1, 2003... Allegiant Air appointed Michael P. Baxter VP-maintenance & engineering.