Airline Business articles from April 2007

Airline Business archives from April 2007

ATA buys World and North American.(Briefing)
April 23, 2007... ATA Airlines has acquired two cargo and charter carriers, World Airways and North American Airlines, for $31 million in cash. ATA, which operates scheduled low-cost as well as charter services, will bring North American and World into a...

Gol changes gear with New Varig buy.(Briefing)(Gol Transportes Aereos)
April 23, 2007... Byline: David Knibb Seattle Brazilian low-cost carrier Gol plans to buy New Varig and convert it into a long-haul affiliate. The $320 million deal for VRG Linhas Aereas, or New Varig, the successor to Brazil's bankrupt flag carrier...

LAB loses rights to scheduled flights.(Briefing)
April 23, 2007... LAB has been plagued by cutbacks and flight cancellations The inability of Lloyd Aereo Boliviano (LAB) to sustain even a partial flight schedule has prompted Bolivian aviation officials to suspend its licence to operate scheduled services....

Labour challenges mount at US majors.(Briefing)
April 23, 2007... Byline: David field Washington As the finances of major US airlines continue to improve, their labour unions are becoming more vocal in their demands for payback. Unions are also pushing harder as executive compensation becomes public...

Briefing.(Start-up Skybus secures more cash from Tiger Partners)(Brief article)
April 23, 2007... Start-up Skybus secures more cash Low-fares start-up Skybus is closer to launch after securing another $72.7 million in capital, making it one of the best financed start-ups in US history. With the addition of funds from private equity...

Virgin America set to fly.(Briefing)
April 23, 2007... Byline: David Field Washington Virgin America is on course to begin US flights in summer after enlisting new investors and government officials in a successful campaign to reverse federal rejection of its application to fly. The US...

Briefing.
April 23, 2007... Mesaba to exit bankruptcy Mesaba Aviation is poised to emerge from bankruptcy reorganisation in May and emerge as a new subsidiary of Northwest Airlines. It now operates 50 aircraft and under Northwest will add 36 76-seat jets by the end...

Briefing.
April 23, 2007... Delta nears bankruptcy exit Delta Air Lines moved closer to its goal of exiting bankruptcy-court protection in May after creditors voted in April to support the carrier's new business plan. Chief executive Jerry Grinstein says he will step...

Low-cost evolution.(Analysis)
April 23, 2007... New-model airlines are evolving to strengthen their financial resilience, writes Chris Tarry of CTAIRA. Data analysis by Antoine Fafard and Linda Moore Although recent attention has been drawn to various takes on the long-haul low-cost...

Haneda expansion work begins.(Briefing)
April 23, 2007... The additional slots will enable new competitors to challenge incumbents All Nippon Airways and Japan Airlines Construction work on a long-planned fourth runway at Asia's busiest airport, Tokyo's Haneda, has begun, although the opening...

Indonesian crack down.(Briefing)
April 23, 2007... Indonesia's government is threatening to shut several of the country's airlines over safety deficiencies in the wake of a series of accidents. The transport ministry has reviewed the country's carriers and classified them into three...

Jet revives deal to buy Air Sahara.(Briefing)(Jet Airways)
April 23, 2007... Byline: Nicholas Ionides Singapore The deal for India's Jet Airways to buy rival Air Sahara is back on, putting an end to a bitter legal battle between the owners of the two airlines. Jet says it will run Air Sahara separately and will...

Problems mount at PIA.(Briefing)
April 23, 2007... Pakistan International Airlines has fallen into serious trouble again as it struggles with huge cost increases and a ban on most of its aircraft. Nicholas Ionides Singapore European regulators in early March introduced a partial ban on...

Philippine carriers in joint protest.(Briefing)
April 23, 2007... Five Philippine airlines have joined forces to protest against government plans to allow unlimited services by foreign carriers to and beyond the Clark and Subic Bay airports. Air Philippines, Asian Spirit, Cebu Pacific, Pacific East Asia...

Qantas takeover reaches final hurdle.(Briefing)
April 23, 2007... Byline: David Knibb Seattle The A$11 billion ($9 billion) private equity takeover bid of Qantas Airways is poised to succeed, but a late change in the offer also means the airline will take on further debt. Airline Partners Australia,...

Emirates and Etihad eye Australia.(Briefing)(Brief article)
April 23, 2007... "The next step is open skies" Ghaith Al Ghaith executive vice-president Emirates Australia and the UAE signed a new bilateral in late March, giving Emirates rights to add 35 weekly flights and Etihad 21 weekly flights by 2010. ...

Briefing.
April 23, 2007... In brief Virgin Blue buys 777-300ERs In preparation for its transpacific launch next year, Virgin Blue has ordered six Boeing 777-300ERs, leased a seventh, and taken options on six more. The airline is focusing on the non-stop...

In brief.(Briefing)
April 23, 2007... Adam Air sells 50% stake Indonesian investment group Bhakti Investama has bought 50% of Adam Air for an unspecified amount. Bhakti says the stake was acquired by its subsidiary Global Transport Services through the purchase of new shares,...

Skywest Airlines.(Forum)
April 23, 2007... Skywest recruits from Qantas group Paul Daff, who was head of commercial at Jetstar Asia, the Singapore low-cost carrier managed by Qantas, has become chief executive of Perth-based regional Skywest Airlines. Daff's appointment...

Flybe.(Forum)(Andrew Knuckey promoted)(Brief article)
April 23, 2007... Knuckey promoted to Flybe finance post UK low-fares carrier Flybe has promoted Andrew Knuckey to the positions of chief financial officer and deputy chief executive officer. He will succeed Chris Simpson who joined Flybe in 2003 but...

Pakistan International Airlines.(Forum)
April 23, 2007... Khan steps in to aid PIA A new executive chairman has taken over at Pakistan International Airlines as the state-owned carrier struggles financially and tries to cope with a partial European Union ban on its operations. Zaffar Ahmad...

US Airways Express.(Forum)
April 23, 2007... Veteran Martens joins US Airways Express US Airways has appointed Robert Martens as senior vice-president of its subsidiary US Airways Express. In his new role, Martens will oversee the US Airways Express business including 2,300 daily...

Gulf Air.(Forum)
April 23, 2007... NA[currency]f joins Gulf Air New Gulf Air head Andre Dose has recruited a member of his former team at Swiss, BjA[paragraph]rn NA[currency]f, as his chief operating officer. NA[currency]f has left his job as the chief executive of...

Forum.
April 23, 2007... In brief Polish flag carrier LOT is now on its third chief executive in almost as many months. It has selected former energy industry executive Piotr Siennicki as its new head. Royal Brunei Airlines has appointed Ahmad Hj Ibrahim as...

Best of the Airline Business Blogs.(Forum)
April 23, 2007... Fernandes ready to launch AirAsia X a1/4 Like Freddie Laker, Richard Branson, Herb Kelleher and Michael O'Leary before him, Tony Fernandes has a sixth sense about publicity. It comes as naturally to these airline personalities as...

The Southwest effect.(Comment)
April 23, 2007... When it comes to being a role model, Southwest Airlines is virtually perfect, and imitators from around the globe have followed its low-cost lead. But as times get tougher even Southwest is debating whether to alter its no-frills approach ...

Forum.(Calendar)
April 23, 2007... May 2007 14-16 ICAO Aviation Emissions Conference Montreal, Canada Contact Mihail Peytchev Tel +1 514 954 8219 Website www.icao.int 14-16 IATA Ground Handling 2007 Vancouver, Canada Contact Philippe Guertin...

Aeroflot joins bidding for Alitalia.(Briefing)
April 23, 2007... Russia's Aeroflot has made a surprise entry into the bidding for its SkyTeam partner Alitalia, lining itself up behind the bid from Italian bank Unicredit. Unicredit/Aeroflot is one of three bidders remaining on the table. US-based private...

Texas Pacific eyes Iberia.(Briefing)
April 23, 2007... Byline: Kerry ezard Frankfurt AND Budapest US private equity firm Texas Pacific Group has expressed interest in launching a takeover bid for Iberia. "We won't buy just because someone else wants to" Willie Walsh chief...

Briefing.(Air Berlin acquires Lufttransport-Unternehmen Gesellschaft mit beschraenkter Haftung und Company KG)
April 23, 2007... Byline: Brendan Sobie London Air Berlin has agreed to acquire German leisure carrier LTU for [euro]140 million ($187 million) plus the assumption of [euro]190-200 million in debt. Air Berlin makes long-haul move The deal gives Air...

Oneworld to help Malev to profit.(Briefing)(Financial report)
April 23, 2007... Malev chief executive Janos Gonci expects the airline to be profitable in two years Malev Hungarian Airlines expects to become profitable in two years and is looking to increase its Russian network under the new ownership of AirBridge. ...

Europe yearns for Single Skies.(Briefing)
April 23, 2007... Byline: Kerry ezard Frankfurt "Beating us over the head with a big stick won't work" Eamonn Brennan executive committee deputy chairman, Civil Air Navigation Services Organisation European carriers and industry bodies are...

TUI and First Choice ready to merge.(Briefing)
April 23, 2007... Byline: Colin Baker Edinburgh Europe's big four tour operators are set to become two, with TUI's tourism division and First Choice unveiling plans to merge just one month after Thomas Cook launched its takeover of MyTravel. The new...

EC sides with passengers.(Briefing)(European Commission)(Brief article)
April 23, 2007... The European Commission is threatening to take legal action against member states that in its view do not implement passenger rights legislation effectively. The EC warns that Finland, Latvia and Luxembourg have not given national...

Briefing.
April 23, 2007... New carrier for France Transavia France will begin operations in mid-May with a double daily service from Paris Orly to Porto using a 186-seat Boeing 737-800. The new Orly-based leisure carrier is 60% owned by Air France and 40% owned by...

Briefing.(British Airways PLC contracts with Worldspan L.P.)(Transportes Aeros Portugueses EP contracts with McKinsey and Company Inc.)(Deutsche Lufthansa AG contracts with Bombardier Inc.)
April 23, 2007... bmi sells Heathrow slots bmi has sold 51 London Heathrow slot pairs to British Airways. The slots are now used by BA franchise partner British Mediterranean (BMed), which is being acquired by bmi. As part of the slot deal BA will codeshare...

Never in any doubt.(Forum)(Sir Michael Bishop, bmi group )
April 23, 2007... Sir Michael Bishop, chairman of the UK's bmi group has more personal experience of the long road to US-Europe Open Skies than any airline leader on either side of the Atlantic. And after 30 years of campaigning his wait is almost over, and it...

IATA calls for Asian leadership.(Briefing)
April 23, 2007... Nicholas Ionides Singapore IATA is urging Asian airlines to play more of a leadership role in shaping global aviation developments given their rapid growth in recent years. IATA director general Giovanni Bisignani made the call when giving...

Briefing.
April 23, 2007... In brief Mobile trials begin Air France is to trial joint venture OnAir's in-flight mobile phone service on an Airbus A318 for six months from July. For the first three months passengers will be able to use their phones for sending...

Long-haul low-cost wins new fans.(Briefing)(Michael O'Leary, Ryanair)
April 23, 2007... Byline: Kerry Ezard London Ryanair chief executive Michael O'Leary has become the latest low-cost airline leader to toy with the idea of launching a long-haul carrier. Ryanair would operate its short- and long-haul operations...

Form an orderly queue.(Insight)
April 23, 2007... Byline: Kerry Ezard London and Frankfurt European and US carriers have outlined varying plans following the new transatlantic Open Skies agreement. So who is likely to do what, and when? "In the medium-term, we see opportunities coming...

Opportunityknocks.(Features)
April 23, 2007... Byline: Report by Mark Pilling in BerlinPhotography by Ian Billinghurst In just 12 months Joachim Hunold, the chief executive of Air Berlin, has taken the German low-cost/charter hybrid carrier public, bought a rival and entered the...

Bypassing the logic of FFPs.(Forum)(frequent flyer programmes)(Letter to the editor)
April 23, 2007... Could the challenge of frequent flyer programmes explain why carriers do not include fuel surcharges in their base fares, asks Ravindra Bhagwanani, managing director of Global Flight Thank you for your article on fuel surcharges ("The...

Nigeria's Arik Air goes long-haul.(Briefing)
April 23, 2007... Byline: Brendan Sobie London Arik Air is planning to launch long-haul services later this year as part of an ambitious expansion plan that will make it Nigeria's largest carrier. "We are still under pressure for more services" ...

Etihad targets 2010 for first profits.(Briefing)
April 23, 2007... Byline: Brendan Sobie Abu Dhabi Etihad Airways plans more rapid network and fleet growth but warns it will chalk up another three years of losses and needs another capital infusion. "We're a new airline but no longer a start-up" ...

Gulf Air shrinks and restructures.(Briefing)
April 23, 2007... "We have ambitious plans for Gulf Air" Andre Dose chief executive, Gulf Air Gulf Air is slashing aircraft, routes and jobs in a drastic restructuring that will also see Bahrain's government increase its stake from 50% to 80%. ...

Jordanian float on track.(Briefing)
April 23, 2007... New oneworld alliance member Royal Jordanian Airlines is on track to float the majority of its shares by year-end. Royal Jordanian chief executive Samer Majali says the Jordanian government, which will retain a 26% stake in the airline...

Briefing.
April 23, 2007... In brief New carrier for Gabon Gabon Airlines launched operations in April with a service from Libreville to Paris. The privately-owned start-up aims to fill the void left by Air Gabon, which was liquidated in March 2006. Routes to...

SAA cull aimed at restoring profits.(Briefing)
April 23, 2007... "We are lagging our competitors" South African airways South African Airways is cutting jobs and routes as part of a drastic restructuring that could also lead to spinning off non-core units such as maintenance. The Star Alliance...

Menuoptions.(Special Report)
April 23, 2007... Byline: Report by Colin Baker in Edinburgh US carriers are boosting their efforts to sell ancillary products after seeing the positive impact of non-ticket revenues on the balance sheets of their European and Asian counterparts "We...

Regional return.(Special Report)
April 23, 2007... Byline: Report by Nicholas Ionides in Singapore China has experimented with regional jets in the past with disastrous results. But could the time be right for the country to take another look? Once bitten, twice shy. That is how some...

Aftergold rush.(Special Report)
April 23, 2007... Byline: Report by Mark Pilling in London Entering the market and rapidly building up aircraft and destinations is the easy part for the management teams of low-cost carriers. The tough bit is making money doing it "Superficially the...

Arabianpioneers.(Special Report)
April 23, 2007... Byline: Report by Brendan Sobie in SHARJAH Four low-cost carriers in the Middle East have quickly emerged. Is this the tip of the iceberg or is it a small niche market? "You need to control your destiny at your base" Adel Ali ...

Special Report.(Brief article)
April 23, 2007... Low-cost profits examinedPage 38 Middle East low-cost surgesPage 46 Ancillary revenues take offPage 52 US and Chinese regionalsPages 56 & 61 Regionals analysis and rankingPage 63 Low-cost carrier profitability, the booming...

Sales thrust.(Special Report)
April 23, 2007... Byline: Report by Kerry Ezard in London The regional aircraft manufacturers are enjoying their best sales period for several years, with turboprops and larger jets proving popular As the turboprop resurgence continues, manufacturers...

Branchlines.(Special Report)
April 23, 2007... Byline: Report by David Field in Indianapolis, Memphis and Washington US regionals may have taken a body blow when the troubled majors renegotiated their flying contracts, but they have gained the ability to branch out in new directions...