Airline Business articles from April 2005

Airline Business archives from April 2005

Low-cost fare battle claims Jetsgo.
April 1, 2005... Analysts had predicted that all three low-cost players could not survive a sustained fare war, but Jetsgos demise came sooner than expected. The industry has been abuzz since January when Raymond James analyst Ben Cherniavsky warned in a...

Regulators clear new players for US-China routes.
April 1, 2005... US regulators favoured competitive challenges over network power in choosing new US entrants that will shake the long-held United and Northwest Airlines duopoly on traffic to the fast growing mainland of China. The US-China market has been...

Copa acquires AeroRepublica.
April 1, 2005... Colombias number two carrier, AeroRepublica, is now owned by Panamas Copa Airlines, which has bought about 85% of its shares. AeroRepublica will retain its brand in a ostrategic allianceo with Copa, with significant technology transfers from...

Independence flies on with $257 million restructure.(Brief Article)
April 1, 2005... Independence Air may have bought itself some breathing time with a $257 million restructuring by cutting lease payments and marketing costs and reducing staff numbers. However, analysts are showing little confidence in its longer-term survival....

Latins slam costly new US rules.(Brief Article)
April 1, 2005... Airlines in Latin America are upset by two new US rules that make it harder and more expensive to operate in the USA. The US Transportation Security Administration (TSA) now requires Latin American pilots to undergo processing before they can...

Losses mount as fuel prices rise again.
April 1, 2005... Continental Airlines for one has said that it still faces major losses despite recent agreement by its pilots and other unions to trim $500 million from its annual payroll, while Delta Air Lines warned again in March that a bankruptcy filing...

US Airways gets surprise cash injection.(Eastshore Aviation )
April 1, 2005... Air Wisconsin affiliate Eastshore Aviation and regional-airline operator Republic Airways Holdings each arranged $125 million investments that US Airways would convert to an equity stake of about 20% each after it emerges from Chapter 11...

Results improve despite high fuel price.
April 1, 2005... Although airlines are beginning to fret over the absence of a much-hoped for drop in fuel prices, European and Asia-Pacific airlines seem to be weathering the storm reasonably well for now. In Europe, although the unhedged proportion of fuel...

Pile high [degrees] sell cheap?(demand expected for aircraft)
April 1, 2005... A new mood of optimism appears to have taken hold of late among those who make and finance aircraft: demand appears to be returning, stored aircraft numbers falling and prices stabilising. Manufacturers have duly announced a series of...

JAL aims for consistency.
April 1, 2005... Asias largest airline said in detailing its medium-term corporate plan for the next three years that 1,400 more jobs would be cut. These will be in addition to previous plans for 4,500 job losses by the end of the 2006/7 fiscal year to March...

Low-cost terminal for Kuala Lumpur.(Brief Article)
April 1, 2005... Malaysia is to build a dedicated terminal for low-cost airlines at its flagship Kuala Lumpur International Airport (KLIA), rejecting calls from AirAsia for the facility to be built at the old Subang airport closer to the city centre. The...

MAS and SIA forge surprise new pact.
April 1, 2005... The surprise deal, which also includes SIA subsidiary SilkAir, was announced in late February and took almost everyone by surprise. Although MAS and SIA jointly operate a basic oshuttleo service between Kuala Lumpur and Singapore and MAS and...

China's Okay launches from Tianjin.(Okay Airways)(Brief Article)
April 1, 2005... Chinas first new passenger airline in many years [degrees] and the first to be owned entirely by the private sector [degrees] has launched charter services after securing final government approvals. The carrier, Okay Airways, operated its first...

Australia pushes for Singapore fifths.(Yeo Cheow Tong and John Anderson on open skies pact)
April 1, 2005... Singaporean transport minister Yeo Cheow Tong and his Australian counterpart John Anderson give differing descriptions of a meeting on liberalising the Australia-Singapore bilateral. Yeo says the talks set a oroad mapo for agreement on open...

Investors pile into Indian carriers.(Jet Airways)(Brief Article)
April 1, 2005... Jet Airways has completed a heavily oversubscribed share sale which valued the company at Rs94.9 billion ($2.2 billion), as investors continue to throw money into Indias airline sector on expectations of massive growth. One-fifth of Indias...

More delays for Bangkok.(New Bangkok International Airport)(Brief Article)
April 1, 2005... Thailands government has finally acknowledged what most in the industry have known for some time [degrees] the opening of Bangkoks new international airport will be delayed. The government has long insisted the New Bangkok International...

Thai Air Cargo nears take-off.(planning to launch services)(Brief Article)
April 1, 2005... Thailands first dedicated cargo airline, Thai Air Cargo, plans to launch services in the middle of the year after leasing its first aircraft from World Airways. Thai Air Cargo, majority owned by Thai freight forwarder Commercial Transport...

Walsh to lead BA.(Willie Walsh)(British Airways PLC)
April 1, 2005... After his early departure in late January from the helm of Aer Lingus [degrees] a carrier he turned around from state-owned basket case into a profitable low-cost contender [degrees] Willie Walsh has landed the top airline job across the Irish...

Shinmachi takes over ?the reins at JAL.(Toshiyuki Shinmachi)(Japan Air Lines Company Ltd.)(Brief Article)
April 1, 2005... After seven years running Asias largest airline, Japan Airlines (JAL) chief executive Isao Kaneko is handing over to company veteran Toshiyuki Shinmachi. JAL said in early March that Shinmachi would be confirmed as chief executive at a general...

In brief.(Brief Article)
April 1, 2005... Indonesias new government has dismissed the 13-member board of state-owned Garuda Indonesia. It has replaced Indra Setiawan as chief executive with former executive vice-president finance, Emirsyah Satar, and has replaced Marsillam Simanjuntak...

Ryan to lead Jetstar Asia.(Ken Ryan)(appointments)(Brief Article)
April 1, 2005... Singapore-based low-cost carrier Jetstar Asia has appointed Ken Ryan as its first chief executive officer. Ryan is a 10-year Qantas Airways veteran who has held senior executive roles with the Australian carrier, including regional general...

Coming together.
April 1, 2005... Lufthansas acquisition of Swiss has again sent a ripple of anticipation around the European industry and beyond. Following last years Air France/KLM merger, investment bankers are no doubt already engaging in earnest conversations with other...

Special report Aircraft & engines.(Brief Article)
April 1, 2005... 44 On a roll Airbus and Boeing both have new widebody models on offer in an increasingly buoyant marketplace. 52 Values look up Aircraft values have staged a recovery in 2004, and some of the more popular types are beginning to run short as...

bmi seeks short-haul turnaround.(BMI British Midland Airways)(Brief Article)
April 1, 2005... UK carrier bmi is studying whether to continue providing a two-class service on short-haul services out of its main London Heathrow base as it struggles to regain profitability after four consecutive years of operating losses. Although bmis...

Lufthansa launches business jet venture.
April 1, 2005... Lufthansa is to partner with fractional ownership operator NetJets to give premium passengers the opportunity to charter business jets. The service, to be known as Lufthansa Private Jet, will offer flights from the carriers Munich hub as well...

Brussels airport aid rules criticised.
April 1, 2005... Europes airlines have given a mixed but generally cool reaction to the European Commissions (EC) guidelines on state aid and airports. The strongest opposition has come from the European Low Fares Airlines Association (ELFAA), which is no...

Brussels consults on green policies.(Brief Article)
April 1, 2005... In parallel with issuing its latest views on air transport and the environment, the European Commission (EC) has launched a public consultation on the Internet on how to reduce the impact of aviation on climate change. The consultation, which...

Ryanair plans five years more growth.(Ryanair Holdings PLC)
April 1, 2005... Despite announcing a $4 billion deal for another 70 Boeing 737-800s, Ryanair was at pains to reassure investors that it is not making a dash for growth but rather keeping current expansion rolling for five more years. Even so, the plan rests on...

Ailing Swiss accepts Lufthansa offer.(Swissair)(Deutsche Lufthansa AG)
April 1, 2005... In the face of persistent losses Swiss has finally agreed to an offer from Lufthansa, in an acquisition which will, however, see the airline retain a separate identinty within the group. Swiss management and the bulk of its shareholders agreed...

Pulling ing together.
April 1, 2005... Air France-KLM put detail on its proposed single-management structure for cargo in mid-February, a sign of how quickly the two carriers are moving towards genuine synergies such as network co-ordination and a common IT platform. Lufthansa-led...

Events diary.(Calendar)
April 1, 2005... April 5-7 Aircraft Interiors Expo 2005 Hamburg, Germany Contact?James Reader Tel +44 1306 743744 e-mail jamesreader@ukintpress.com 6-7 ERA Regional Airline Conference Rome, Italy Contact?ERA Tel +44 1276 856495 e-mail info@eraa.org website...

Driving traffic.
April 1, 2005... In his article oEconomic drivers revisitedo (February page 66), Chris Tarry states that low-cost airlines oinitial advantage is simply to offer lower fares in existing markets, so pulling passengers away from the incumbent carriero. He also...

Low-cost set for the long-haul.
April 1, 2005... It may be a bitter pill for many legacy carriers to swallow, but the era of long-haul low-cost carriers is approaching rapidly. In fact it has always been only a matter of time before the short-haul low-cost model migrated into long-haul. After...

Cathay's ownership dance.(Cathay Pacific Airways Ltd.)
April 1, 2005... Sources in Hong Kong close to Cathay confirm it has for some time been in talks to co-operate more with Beijing-based Air China and this could include bringing Dragonair back under its control. Dragonair is effectively controlled by Air China...

In brief.
April 1, 2005... Oneworld boosts revenues Oneworld says that revenues from the alliances sales activities rose by a third last year to generate $600 million for its eight member carriers. Almost two-thirds of this was classified as oincrementalo revenue...

Cloud over future of Star IT platform.(Brief Article)
April 1, 2005... Air Canada has denied reports that it is to pull out of the proposed joint IT platform with fellow Star Alliance partners Lufthansa and United Airlines. oWe are still participating in the project and continue to evaluate the potential...

True open skies?
April 1, 2005... Etienne de Malglaive After a decade of oopen skies Liteo, Canada and the USA are moving toward a fully liberalised aviation regime in an ambitious drive to end limits on cargo operations, expand local traffic rights and set the stage for a...

End game.
April 1, 2005... Interview Andres Conesa Just 10 years after it was formed, Mexicos Cintra plans to sell off its airlines and go out of business, with Andres Conesa at the controls of its final few months of flight Andres Conesa is trying to work himself...

Asiantigers.
April 1, 2005... A city state of four million people, Singapore had, until a year ago, a fairly typical aviation market, dominated by a single home carrier Singapore Airlines (SIA) and its regional subsidiary SilkAir. That changed as the low-cost revolution...

A biggerpicture.
April 1, 2005... US mainline carriers are still haemor-rhaging money and are facing continuing pressure on fares and yields on domestic routes. In response they are focusing new attention and substantial capacity increases on expanding international services....

Trafficsignals.
April 1, 2005... Network USA With traffic storming back, aircraft orders on the way and new domestic and international service coming on stream, the only missing ingredient for most carriers at this years Network 2005, hosted by Orlando International...

Valueslookup.
April 1, 2005... Values Aircraft & engines Aircraft & engines T he airline business is facing a paradox. While the industry as a whole is still struggling to make decent money, and in North America is still losing it by the sackload, the market for aircraft...

On a roll.
April 1, 2005... By the time the Paris Air Show comes to a close in mid-June, Airbus and Boeing could have no fewer than four new widebody aircraft on sale between them. The Airbus A350, a derivative of the A330, and Boeings 747 Advanced, the latest version of...

Aircraft & engines.(Brief Article)
April 1, 2005... New models take shapePage 44 Aircraft supply starts to tightenPage 52 Order & delivery analysisPage 56 Mid-thrust engine race hots upPage 58 End of the road for 747 freighter?Page 62

Corevalues.
April 1, 2005... Engine technology Aircraft & engines Aircraft & engines King: oMore electric will definitely be part of the gameo Pierre Fabre chief executive CFMI The race to come up with a new mid-thrust engine has begun and all the major international...

Decline of thejumbo?(passenger-to-freighter conversions in air cargo industry)
April 1, 2005... Ever since the first delivery of the type to Lufthansa in March 1972, the Boeing 747 freighter has been the workhorse of the air cargo industry. And no wonder. It is the only western commercial aircraft to have been designed with freighter use...

Mainline aircraft orders.
April 1, 2005... Aircraft markets Aircraft & engines Aircraft & engines Airline Business April 2005 April 2005 Airline Business

In brief.(Iceland Express buy Sterling Airways A-S)(Brief Article)
April 1, 2005... Icelanders buy Sterling The owners of budget carrier Iceland Express have agreed to buy Danish low-cost operator Sterling for DKr400 million ($72 million). Icelandic investment company Fons Eignarhaldsfelag runs Iceland Express with Boeing 737s...

In brief.(complaint against Alitalia Linee Aeree Italiane S.p.A.)(Brief Article)
April 1, 2005... Alitalia complaints Eight European carriers have written to the European Commission (EC) complaining that Alitalia is failing to meet the conditions attached to its [euro]400 million ($535 million) bridging loan and is causing osevere damage to...

Network briefs.(Federal Aviation Administration (US government))(Jet transports)
April 1, 2005... Cheap fares hit the FAA Speaking at the Network 2005 gala lunch, FAA chief operating officer Russ Chew highlighted how cheaper tickets are affecting the organisations financial planning. oLower ticket prices mean lower unit revenues per flight...