Airline Business articles from August 2006

Airline Business archives from August 2006

Aerolineas accords remove roadblocks to IPO.
August 1, 2006... The deal follows recent accords with the airline's two chief antagonists - its unions and the Argentinian government. The labour deal, involving seven unions, came first and was a prerequisite to any accord with the government. Argentina's...

Aeromexico sale scheduled.
August 1, 2006... Aeromexico's government-owned holding company is planning a public auction to sell the airline by September. As with last year's Mexicana sale, the holding company - formerly called Cintra but now known as Consorcio Aerom?xico - is setting...

TAM and GOL fill Varig's vacuum.(TAM and GOL growth)(Varig management)(Brief article)
August 1, 2006... The outcome of Varig's life-or-death struggle may hardly matter at the rate TAM and GOL are growing. Varig, once the undisputed flag carrier of Brazil and the dominant airline in its skies, has become a shadow of its former self through the...

Canada eyes open skies with Europe.(traffic flow from europe to canada)(Brief article)
August 1, 2006... Increased traffic flows from Europe arising from more open markets would boost the hopes of major Canadian airports such as Toronto to become transit points for passengers between Europe and both Latin America and the USA. Pierre Jeanniot,...

Low-cost rivals rush to expand market share.
August 1, 2006... Globally, the low-fares sector provided 16% of capacity in July - double its 8% share just five years earlier, according to OAG Worldwide's Mike Navin. In the USA, their market share is 26% - up from 18% five years ago. Much of the US...

Briefing.(Northwest cuts pay deal)(American Airlines charges agent fees)(Federal Aviation Administration air traffic fee delay)(Brief article)
August 1, 2006... In brief Northwest cuts pay deal Northwest Airlines has reached a wage-cut pact with its cabin crew, who days earlier had switched their allegiance to the Association of Flight Attendants. The airline's bankruptcy judge had granted it...

Airline veteran is Spirit Air's new backer.(appointment of Bill Franke)(Brief article)
August 1, 2006... Spirit Airlines, the privately held low-cost carrier in the midst of a costly fleet transition, has changed hands. The airline, based near Fort Lauderdale, said that Bill Franke, the Phoenix-based investor who had controlled America West...

Traffic rises across the board.(growth in traffic)
August 1, 2006... Figures for the first half of the year show that apart from European and North American majors, all sectors showed double-digit growth in traffic. Overall traffic grew by 6.6%, while capacity increased by 4.0%, enabling load factors to...

Time to unbundle.(trends in the airline industry)(Column)
August 1, 2006... In the March edition of this column we examined the trend of making the price of product attributes like baggage, priority boarding and others more explicit. It is a popular trend, and more low-cost players are joining in, bringing some new...

Air Sahara rekindles growth ambitions.(Jet airways planning to acquire Air Sahara )(Air Sahara accused Jet of improper deal )(Air Sahara focus on expansion)
August 1, 2006... Market leader Jet agreed in January to acquire Air Sahara from the Sahara Group for about $500 million but the deal collapsed when government approvals were not secured by a 21 June deadline and Jet refused to extend the closing date. Air...

SkyTeam signs Chinese carrier.(SkyTeam alliance )(Brief article)
August 1, 2006... China Southern Airlines has formalised its commitment to the SkyTeam alliance and expects to become a full member in the second half of next year. The carrier announced in 2004 that it intended to join. Securing a formal commitment from...

Hong Kong and China forge new deal.(Air China)(Cathay Pacific Airways Ltd.)(DHL Airways Inc.)
August 1, 2006... Airlines have long complained that the air services regime between the two sides remains too restrictive, despite the fact that both have been opening up to services by more foreign airlines in recent years. The new agreement follows...

Airlines attack South Korea's departure tax plan.(taxation on international airfares)(Brief article)
August 1, 2006... Airline groups have lashed out at South Korea over a plan to introduce a tax on international airfares to fund programmes in developing countries. Korea's government recently proposed a 1,000 won ($1.05) tax on airfares for departing...

Emirates denies capacity dumping.(Brief article)
August 1, 2006... Emirates is indignant about the oft-repeated claim by Air New Zealand and Qantas that it is dumping capacity on trans-Tasman routes between Australia and New Zealand. Emirates president Tim Clark recently told Airline Business that there...

In brief.(Air Nauru purchase Boeing 737 to become partner with other central pacific nations)(Air New Zealand London flights)(Jetstar launch international flights)(Brief article)
August 1, 2006... Air Nauru seeks partners The tiny Pacific island nation of Nauru has reversed a decision it made in May and bought a Boeing 737 to replace the one repossessed last December. Part of its reason for the purchase is that it hopes to persuade...

Qantas could face union showdown.
August 1, 2006... So far Qantas has been able to skirt around impasses on such controversial issues as outsourcing and wetleasing with its lower-cost subsidiaries. But if high fuel prices persist, these disputes will be back on the table, and next time they may...

Market blesses Dragonair takeover.
August 1, 2006... The planned takeover of fellow Hong Kong-based carrier Dragonair by Cathay Pacific Airways looks set to be formalised around the end of August, following a generally positive market reaction. Cathay announced in June that it had agreed to...

Airline Business Award.(Dr Assad Kotaite)
August 1, 2006... Dr Assad Kotaite, ICAO Few organisations touch, shape, and define world aviation as ubiquitously as ICAO - the International Civil Aviation Organization - and few individuals touch, shape, and define an organisation as ubiquitously as the...

Executive leadership.(Gerard Arpey services at American Airlines )
August 1, 2006... Gerard Arpey, American Airlines It may be a sign of our dire times that a US carrier gains recognition simply by avoiding the bankruptcy club that has enrolled so many of its peers, but it is a major achievement. And for Gerard Arpey, chief...

Finance.(ACE Aviation Holdings Finance Award)
August 1, 2006... ACE Aviation Holdings Air Canada is not the first airline to restructure its finances in bankruptcy, converting several billion dollars in unsecured debt into equity while raising millions more in new equity, nor the first to form a holding...

Marketing.(Emirates marketing programme )
August 1, 2006... Emirates It is ironic that Emirates shuns the use of the word "marketing" in all its job titles and descriptions. This is not because it disapproves, but because it believes the word is too amorphous and could become a reason to spend money...

Operations.
August 1, 2006... Continental Airlines When the airlines of the USA return to profitability, Continental Airlines will, by all reckoning, have got into the black early on. Its major restructuring and transformation have put it on course to reap an early reward,...

Regional & low-cost leadership.
August 1, 2006... Constantino de Oliveira Jr, GOL You can't argue with success, and Brazil's GOL is certainly one of the most successful low-cost airlines around. Less than six years old, it has been expanding its fleet and routes dramatically but has remained...

Technology.(e-smile programme)
August 1, 2006... All Nippon Airways The Japanese always seem to be at the forefront of new technology. Stroll down Tokyo's Akihabara district, lined with high-tech gadget shops, and it is easy to see why Tokyo is often considered the world's technology capital....

Japan Airlines.(appointment of Haruka Nishimatsu)(Brief article)
August 1, 2006... Nishimatsu takes top spot Japan Airlines (JAL) shareholders have confirmed the appointment of Haruka Nishimatsu as the carrier's new chief executive, enabling him to take over from embattled former top executive Toshiyuki Shinmachi. ...

Centralwings.(appointed Maciej Kwiatkowski as chief executive)(Brief article)
August 1, 2006... New chief at Centralwings Polish low-cost carrier Centralwings, a subsidiary of LOT Polish Airlines, has appointed Maciej Kwiatkowski as its chief executive. He replaces Piotr Kociolek who resigned in March. Kwiatkowski brings with him...

ELFAA.(European Low Fares Airline Association)(appointment of John Hanlon )(Brief article)
August 1, 2006... Hanlon steps into ELFAA Former British Airways executive John Hanlon has been named secretary general of the European Low Fares Airline Association, taking over from Jan Skeels who helped launch the association in 2004. Hanlon, who...

Gulf Air.(James Hogan to resign)
August 1, 2006... Hogan to leave Gulf Air In an announcement that has surprised few in the industry, Gulf Air has announced the "planned departure" of president and chief executive James Hogan. The experienced airline boss, who formerly held senior roles at...

In brief.(appointments of Angel Ernesto Zaballa, Richard Forson and Hannes Hilmarsson )
August 1, 2006... Angel Ernesto Zaballa has become general manager and Ra? Espinoza chief financial officer at Lloyd A?reo Boliviano (LAB) following the airline's takeover by its unions after six stormy months. Zaballa, an economist, was LAB's former...

A super cycle?(Airbus S.A.S.)(Boeing Co.)(Singapore Airlines Ltd.)
August 1, 2006... Airbus and Boeing have good reason to be pleased with their week's work at the recent Farnborough Airshow. The European manufacturer, battered in the run up to the industry's annual shop window, finally gave in to popular airline opinion and...

Forum.(Directory)
August 1, 2006... September 2006 11-14 World Low-Cost Airlines Congress 2006 London Contact Terrapin Tel +44 207 827 4168 Website www.terrapin.com 11-14 IACA 2006 Operations Assembly Monastir, Tunisia Contact Michelle Walsh Tel +32 2 546 1073 Website...

MEPs back aviation emissions scheme.(Members of the European Parliament )
August 1, 2006... The Members of the European Parliament (MEPs) are urging the introduction of charges, including a kerosene tax on all domestic and intra-European Union (EU) flights, to "reflect the extent to which any emissions trading scheme falls short of...

Unions back easyJet pilots and set sights on Ryanair.(Ryanair Ltd.)(easyJet Airline Company Ltd.)(Brief article)
August 1, 2006... Pilot unions from five European countries have linked up to represent the pilots of low-cost carrier easyJet under the umbrella of the European Cockpit Association, and the Irish pilots' union is keen to see a similar agreement imposed on...

Spain's domestic disorder.(Catair)(Vueling)(Air Espana S.A.)
August 1, 2006... Catair, the Barcelona-based joint venture low-cost carrier in which Iberia and powerful Spanish tour operator Iberostar each hold 20% shares with three other partners, is scheduled to begin flying on 29 October, the start of the winter...

In brief.(Ryanair new routes)(Wizz Air purchased 20 Airbus A320)(EasyJet second-quarter revenue)(Brief article)
August 1, 2006... EC ticket price plan welcomed The Association of European Airlines says it welcomes the European Union's review of the European air transport liberalisation process, which includes proposals on how transparent carriers are in displaying...

Some like it hot.(Airbus S.A.S.)(Emirates Airline)(Singapore Airlines Ltd.)
August 1, 2006... The European manufacturer came out fighting with its all-new A350 Extra Wide Body (XWB) as temperatures soared to a record high at this year's Farnborough Airshow in mid-July. Airbus captured most of the major headlines as the event opened...

Trustseeker.(evaluation of Delta Air Lines Inc.)(Company overview)
August 1, 2006... As the saying goes, "You can't teach an old dog new tricks", but for Gerry Grinstein, who turned 74 last month, the saying is more like: "It takes an old exec to teach an airline new tricks." That, after all, is the challenge the former...

Indian reservations.(JetAir acquires Air Sahara)
August 1, 2006... The dissolution of the Jet Airways takeover of Air Sahara is typical of the growing pains that emerging markets go through. The match appeared made in heaven just six months ago, providing Jet with aircraft and human resources plus a...

Airport charges battle wages on.(Airports Council International)(International Air Transport Association)
August 1, 2006... Airports Council International (ACI) director general Robert Aaronson in a July speech to the Aviation Club of the UK criticised IATA's "anti-airport agenda" and is urging airports and airlines to instead work in partnership without giving IATA...

New UK accord pressures Australia.(British Airways PLC)(Qantas Airways Ltd.)(Virgin Atlantic Airways Ltd.)(Brief article)
August 1, 2006... Aeropolitics have taken a new twist for Australia following the UK's agreement to liberalise flights on the Kangaroo route. The new bilateral removes all limits on the number of flights between the UK and Australia, and allows those flights via...

In brief.(Middle East Airlines)(Brief article)
August 1, 2006... MEA moves to Damascus Lebanon's Middle East Airlines (MEA) transferred all operations to Damascus in neighbouring Syria in late July after Israeli air strikes forced the closure of Beirut International Airport. The airport was closed on 13...

Reciprocal rights.(Emirates Airline)(Qantas Airways Ltd.)(Singapore Airlines Ltd.)
August 1, 2006... Carriers such as Emirates and Singapore Airlines face a unique challenge whenever they seek traffic rights. Because they rely so heavily on sixth freedoms - carriage of passengers and cargo in transit over their own hubs - their governments...

Climatechange.(airline industry earnings)(Industry overview)
August 1, 2006... The industry recorded double-digit revenue growth for the second consecutive year in 2005 but it appears the peak has already passed. This is a cycle in which carriers have not banked much in the way of profits during what should have been the...

Features.
August 1, 2006... Financial analysis Page 58 Top 150 Financial RankingPage 62 Lead groups by result & regionPage 71 Passenger analysis Page 75 Top 200 Passenger RankingPage 78 The World Airline Rankings This year? World Airline...

Cruisecontrol.(trends in the airline industry)
August 1, 2006... As the books close on how passenger traffic fared in 2005, the headline figures make impressive reading. Passenger numbers broke through the two billion mark for the first time ever and traffic was just a whisker away from reaching 4,000...

upGrowing.(Jetstar)
August 1, 2006... Jetstar is the poster child of that turbulent group of airlines called "baby low-cost carriers", the no-frills offspring of legacy airline parents. Distinct from their free-standing cousins such as Ryanair and Southwest Airlines, baby low-cost...