Airline Business articles from August 2005

Airline Business archives from August 2005

FAA renewal dogged by labour and political woes.(Federal Aviation Administration negotiations with National Air Traffic Controllers Association)
August 1, 2005... This year, says FAA Administrator Marion Blakey, is unique because the agency's basic authorising statue must be rewritten by congress while the FAA's air traffic controller labour contract must also be renewed. At the same time, the FAA's Air...

Brazil's independents press ahead.
August 1, 2005... On foreign routes, GOL and TAM pose less threat to Varig, but they are expanding there too and TAM in particular is watching for any Varig stumble. Varig slipped into third place on domestic routes in April. By contrast, in the past two years,...

Resentment at Air Canada.(Brief Article)
August 1, 2005... The legacy of Air Canada's takeover of Canadian Airlines in 2000 continues to haunt it. A dispute over the merger of seniority lists between pilots from the two airlines boiled over recently when pilots refused to ratify a pact on terms and...

In brief.(JetBlue Airways )
August 1, 2005... JetBlue encircles Big Apple... JetBlue Airways will serve all three New York City airports by October when it adds Newark Liberty -- putting it in direct competition with dominant Continental Airlines. The Houston-based carrier promptly lowered...

In brief.(Delta Air Lines Inc. and its prices)
August 1, 2005... Delta raises fare cap Escalating fuel costs have forced Delta Air Lines to abandon its $499 cap on domestic fares adopted in January in its landmark "Simplifare" restructuring of its fares. Its new cap of $599, if adopted industrywide, could...

New wave of US hopefuls mix luxury with low fares.
August 1, 2005... A new generation of start-up carriers is poised to take off, and while their hopes may seem counterintuitive in a time of record fuel prices, historically low yields, labour unrest, security hassles and the unbalancing dynamic of bankruptcy,...

Venezuela tightens state control.(regulation on air fares in venezuela)(Brief Article)
August 1, 2005... The global trend may be towards relaxing the economic regulation of airlines in favour of market forces, but Venezuela is moving in the opposite direction. Under newly adopted legislation it plans to regulate domestic air fares and set a...

China approves more start-ups.(Brief Article)
August 1, 2005... Chinese regulatory authorities have given initial approval for more privately owned passenger airlines to be established as the market continues to open up to new players. The latest to have secured initial Civil Aviation Administration of...

Air services move up EC-China agenda.
August 1, 2005... The pledge was made at the end of June at a high-level EC-China Aviation Summit in the Chinese capital. In a joint declaration signed by Civil Aviation Administration of China (CAAC) minister Yang Yuanyuan and EC transport chief Jacques Barrot,...

First charges fall at Narita.(Brief Article)
August 1, 2005... The operator of Tokyo's Narita airport -- the world's most expensive to serve -- has reached its first agreement with IATA on fee reductions. It covers fuel supply facility charges, which Narita International Airport (NAA) says will be reduced...

Freedom joins forces with ANZ.(Air New Zealand)(Brief Article)
August 1, 2005... In a move to cut costs on the unprofitable New Zealand-Australia routes across the Tasman, Air New Zealand (ANZ) is proposing to integrate operations with its low-cost subsidiary, Freedom Air. Trans-Tasman yields have fallen 25% in the past two...

Australia muses over Qantas-SIA union.(Securities Industry Association negotiations with Qantas Airways Ltd.)
August 1, 2005... Singapore has long sought an open skies bilateral that would allow SIA to fly to the USA from Australia. Initially the Australian government resisted on the grounds that the airline industry was too unstable. More recently it argued that Qantas...

Low-cost carriers kick off merger talks in Singapore.
August 1, 2005... Although the talks initially broke down, with the two carriers saying they remained committed to continuing operations independently, most observers took their acknowledgment as a sign that future consolidation is inevitable. Further talks are...

Virgin Blue scales back.(Virgin Blue Airlines Proprietary Ltd.)(Brief Article)
August 1, 2005... As a further sign that Virgin Blue has reached its limit on its domestic network, it is cutting back several routes into Australia's Northern Territory. It is cancelling all flights to Alice Springs and dropping its Sydney-Darwin service in...

Rendezvous with reality?
August 1, 2005... The Top 150 financial ranking of airline groups published in this month's issue provides a useful document of record and also an opportunity for some industry analysis (see pages 54-68). A casual glance at the figures might suggest that history...

Delta realignment.
August 1, 2005... Delta Air Lines has replaced its chief financial officer (CFO) Mike Palumbo in an executive realignment. Palumbo, who had worked with Delta chief executive Gerry Grinstein at Western Airlines in the 1980s, joined Delta in April 2004 when its...

Strodel to lead Etihad.(Etihad Airways promotes Robert Strodel)(Brief Article)
August 1, 2005... Etihad Airways has promoted Robert Strodel, 49 (pictured), to become its first chief executive with immediate effect. The Abu Dhabi-based carrier, which began operating in November 2003, has been led by Dr Sheikh Ahmed Bin Saif Al Nahyan,...

In brief.(Varig S.A. appoints Omar Carneiro da Cunha)(Indian Airlines appoints Sushma Chawla )(FedEx Express promotes James Parker )(Brief Article)
August 1, 2005... Omar Carneiro da Cunha has become Varig's new president. He replaces Henrique Neves, who was appointed only in May. Neves, who remains on the board, resigned as president to work full time on Varig's restructuring plan. Carneiro, former...

Indian carriers look west for management talent.(india's airlines recruiting american employees, US Airways Inc.'s Bruce Ashby will be joining IndiGo)
August 1, 2005... India's new and established low-cost carriers are busy hiring senior executives from the west to strengthen their management teams. One of the latest recruits is Bruce Ashby, a key architect of the US Airways survival and recovery effort, who...

Crossing the line?(rules for airlines safety)
August 1, 2005... Still smarting from the political charge of unilateralism, the USA has promised more international co-operation and consultation. Its actions, though, have raised international tensions instead of soothing ruffled feathers and indeed have...

European ATC starts to cross borders.
August 1, 2005... ANSPs in the UK and Ireland announced in early July the results of a study into the feasibility of developing an FAB covering the two neighbouring countries. German air traffic navigation provider DFS, meanwhile, is positioning itself to offer...

Travellers rate flying best.(Brief Article)
August 1, 2005... The survey was carried out in March this year among 24,000 inhabitants aged 15 or over in the 25 member states of the European Union. It rated passenger satisfaction in three categories: treatment of disabled passengers; response to complaints...

Sterling buys Maersk Air.(Brief Article)
August 1, 2005... Maersk Air, a long-standing independent carrier, will now be merged under the low-cost Sterling brand. The deal comes shortly after Sterling itself was taken over by Fons Eignarhaldsfelag, an Icelandic holding company which controls budget...

Industry teams up on the environment.
August 1, 2005... The six bodies, which include the Association of European Airlines (AEA), the European Regions Airline Association (ERA) and leisure airline body the International Air Carrier Association (IACA), have come up with four elements for its...

In brief.(British Airways and American Express to renew their credit card programme )(Brief Article)
August 1, 2005... BA and Amex strike deal British Airways and American Express have agreed to renew their credit card programme and will also introduce a co-branded corporate card aimed at small businesses. The agreement ends a long-running dispute between the...

In brief.(lisbon is planning to build an airport, Cyprus Airways Ltd. is in talks )(Brief Article)
August 1, 2005... Lisbon rekindles airport plan Portugal's new socialist government has resurrected plans to build a new airport for Lisbon. The government has selected a site at Ota, 50km (30 miles) north of the capital for the planned new development, which...

Virgin looks at later A380 arrival.(Virgin Atlantic Airways)(Brief Article)
August 1, 2005... Virgin Atlantic Airways is looking at extending the deferral of its first Airbus A380 delivery into 2009. The carrier is unhappy that a six-month slippage in the A380 delivery schedule, announced by Airbus in June, would see the 550-seater...

Airline Business Award.
August 1, 2005... Few individuals have been as widely and intimately identified with an airline as Herb Kelleher, co-founder of Southwest Airlines, and few airlines have been as widely and as intimately identified with a genre of carriers -- low-fare airlines --...

Executive leadership.
August 1, 2005... Geoff Dixon's results speak for themselves. Despite terrorism, the Gulf War, SARS and soaring fuel prices, Qantas has remained consistently and robustly profitable. At a time when rivals are issuing profit warnings, the airline expects shortly...

Regional & low-cost leadership.(AirAsia Sdn. Bhd.)
August 1, 2005... If imitation is the sincerest form of flattery, then Malaysia's AirAsia and its charismatic founder Tony Fernandes has much to be flattered about. Responsible for single-handedly proving the low-cost model in Asia, others are now following his...

Finance.(Hawaiian Airlines )
August 1, 2005... In the world of bankruptcy proceedings, an outcome where creditors receive full compensation for their claims and existing shareholders keep their shares is extremely rare. In the airline industry, it has been unheard of, or at least until now....

Marketing.
August 1, 2005... Southwest Airlines is known to millions of US television viewers for two trademarks. The first is its catch phrase: "You are now free to move about the country." Second is the familiar "ding" as the seatbelt sign is turned off. That sense of...

Operations.(Ryanair Holdings PLC and its services across the countries)
August 1, 2005... If any airline embodies the spirit of the single European market, surely it is Ryanair. While mainline carriers largely remain wedded to their established hubs, Ryanair has taken advantage of deregulation to the extent that it now has 12 bases...

Technology.(International Air Transport Association's conference, Giovanni Bisignani speaks about the airlines prices and technology to be used)
August 1, 2005... At IATA's recent annual general meeting in Tokyo, director general Giovanni Bisignani described the industry's continuous efforts to slash costs as an obsession. Over the past year, the association has sought to provide some much needed...

The judging panel.
August 1, 2005... Professor Rigas Doganis As a highly respected author and consultant, Professor Doganis advises on air transport policy and airline strategy. Until 1997 he was head of the air transport department at Cranfield University. As chairman of Olympic...

FAA's challenge to change.
August 1, 2005... This summer sees a sharp rebound in air travel with more aircraft and passengers in the skies than ever before. Travellers are attracted by bargain fares, and reassured by an accident rate that is the lowest in history. Nevertheless, aviation...

Traffic heads up in first half.
August 1, 2005... While airlines may be struggling on the financial front, as far as passenger traffic goes, there is plenty to smile about. Figures for the first half of the year show that healthy rises in passenger numbers are ensuring that load factors are...

Routes 2005.
August 1, 2005... 25-27 September Copenhagen, Denmark There are a host of airlines and airports lining up to attend Routes 2005 for the first time this year. The network planning event, with Airline Business as official publication, is being hosted by...

In next month's issue of Airline Business.
August 1, 2005... Cover interview -- Shanghai Airlines chairman Zhou Chi tells Airline Business how the country's fourth largest player is gearing up for major international expansion. Europe's leisure market -- after years of upheaval is it coming to terms...

Events diary.(Calendar)
August 1, 2005... September 15-16 World Low Cost Airlines Congress 2005 Amsterdam, Netherlands Contact Terrapin Tel +44 207 827 4168 website www.terrapin.com 18-21 ACI North America Annual Conference Toronto, Canada Contact Amy Peters Tel +1 202 293 8500 website...

GOL ventures into Mexico.(Brief Article)
August 1, 2005... Brazil's GOL has agreed with a group of Mexican investors to launch a low-cost carrier in Mexico. Mirroring LAN's strategy for cross-border expansion, GOL will take a minority stake, but is expected to play a major role in managing the new...

In brief.(International Federation of Freight Forwarders Associations)
August 1, 2005... Forwarders join cargo lobby The International Federation of Freight Forwarders Associations has added its weight to the campaign for a liberalised transatlantic market for all-cargo flights. The move comes after the International Air Cargo...

Nosimplesolutions.(International Air Transport Association's meeting, chief financial officers give their opinions)
August 1, 2005... The Airline IT Summit in Brussels in late June certainly came at an opportune time. Just a month before, IATA had held its annual general meeting in Tokyo, with airline heads reiterating their aim of cutting $6.5 billion of costs through the...

Wage cuts hit the wall.
August 1, 2005... US labour and management are close to agreement on one fundamental: they are nearing the end of cutting worker wages and benefits. Hacking away at payroll and slashing benefits have been the first tools at hand for most airline managements, as...

Pace quickens in mobile race.(race is going on between OnAir and its rival company Aeromobile ,who is launching mobile telephony first)(Brief Article)
August 1, 2005... The race is hotting up to be the first to offer onboard mobile telephony, with OnAir, the joint venture established by SITA and partners Airbus and Tenzing earlier this year, and rival AeroMobile, a joint venture between Arinc and Telenor,...

Top 150 financial rankings -- Notes & Definitions.(airline being ranked according to their financial status )
August 1, 2005... This first part of the annual Airline Business World Airline Rankings focuses exclusively on group financial results, with operating statistics for the individual passenger airlines given their own, more detailed ranking. Below is a guide to...

Growth spurt.(airline industry's growth and its traffic inspite of high fuel prices)
August 1, 2005... It has been a long hard downturn since 2001, but last year officially marked the end of the gloom. A resounding rebound in world passenger traffic finally put the numbers decisively ahead of the previous peak in 2000. While most predict that...