Airline Business articles from February 2005

Airline Business archives from February 2005

Air Jamaica returns to state control.(Brief Article)
February 1, 2005... Hotelier Gordon "Butch" Stewart and his investor group have relinquished their 75% stake in Air Jamaica and turned the troubled airline over to Jamaica's government, ending nine years of private ownership and control. Stewart insists he...

In brief.(Independence Air Inc. gets restructuring loan from GE Capital Aviation Services Inc.)
February 1, 2005... Independence flies on FlyI, the parent of troubled Independence Air, won $19.5 million in backing from GECAS that defers some aircraft rentals until May 2006, letting it avoid a looming bankruptcy. The loss-making, low-fares regional jet...

In brief.(Boeing Co. discontinues production of 100 seater 717)(Brief Article)
February 1, 2005... Boeing cancels 717 With ever-dwindling orders, Boeing has finally decided to end production of its 100-seater 717 twinjet next year. The manufacturer has booked 169 orders with 137 aircraft delivered. It was a legacy from its acquisition...

In brief.(Avianca Airlines changes name to Aerovias del Continente Americano)
February 1, 2005... WestJet ponders slowdown WestJet is studying whether to accelerate retirement of its 15 Boeing 737-200s and use some or all of the 15 Next Generation 737s set to arrive this year as replacements, rather than for growth. Previously, the...

Southwest wins Midway.(Southwest Airlines Co. acquires part ownership of Midway airport, Chicago)
February 1, 2005... Southwest Airlines is moving into new territory with its ATA Airlines deal at Chicago's Midway airport as it continues to reshape the US industry, reaffirming its role as a strongman. The largest low-fares carrier in the USA, Southwest, won...

Air Deccan makes rapid rise.
February 1, 2005... India's Air Deccan is seeking to cement its status as the country's main low-cost airline through a massive fleet expansion that will see it adding another 30 Airbus A320s and 30 ATR 72-500s. The airline, which launched scheduled services...

China-Taiwan flights breakthrough.(Brief Article)
February 1, 2005... China and Taiwan agreed a groundbreaking deal in mid-January to allow the first nonstop flights between the rival sides in more than 50 years. The historic agreement was reached during talks on 15 January, allowing for passenger services...

Pacific Blue holds off NZ expansion.(Pacific Blue Airlines (NZ) Ltd.)
February 1, 2005... The New Year passed quietly with no mention of the earlier boast made by Pacific Blue, Virgin Blue's international arm, that it would be flying New Zealand's domestic skies by the end of the year. It never happened and for at least three...

Qantas boosts cargo business.(Qantas Airways Ltd.)
February 1, 2005... Following the launch of its first dedicated cargo service a year ago, Qantas has decided to boost its presence in the sector with a significant expansion within and beyond Asia. The Australian carrier has taken a 49% stake in a new joint...

Economic drivers revisited.
February 1, 2005... The link between traffic and the rate of economic growth has been somewhat sidelined amid all the crises and upheavals of the recent past, but is it now reasserting itself? asks Chris Tarry of CTAIRA In better days, it was a useful rule of...

Job insecurity.(airlines change chiefs at faster rate)
February 1, 2005... The role of airline leadership has never been easy, but has it become near impossible?Over the past five years, just about half of the industry's top 50 airlines have seen their chief executive resign and among the USmajors none now remain ...

Irish team leaves early.(Willie Walsh, Brian Dunne, Seamus Kearney of Aer Lingus Group PLC)
February 1, 2005... The possibility of a conflict of interest for the outgoing management team at Aer Lingus has caused the Irish government to ask the trio - chief executive Willie Walsh, chief financial officer Brian Dunne and chief operations officer Seamus...

Berlin charges row flares up.(Brief Article)
February 1, 2005... Air Berlin and Germania Express have unilaterally cut the charges paid to Berlin International Airports (BIA) for their services at Schoenefeld airport to 61 eurocents (o80) per passenger, the rate they believe rival easyJet is paying. Both...

EC avoids bilateral standoff through compromise.(European Commission)(Brief Article)
February 1, 2005... Nationality clauses are still an issue two years after the European Court of Justice invalidated them in bilaterals between individual European Union members and third countries. Such clauses, which limit air rights to carriers of specified...

In brief.(British Airways PLC cancels services to Saudi Arabia)(Brief Article)
February 1, 2005... BA axes Saudi services British Airways is to suspend services to Saudi Arabia from 27 March, leaving Saudi Arabian Airlines as the only carrier operating between London Heathrow and Jeddah and Riyadh. It is axing the flights because...

Opportunistic VLMexpands in UK.(VLM Airlines)(Brief Article)
February 1, 2005... A new route from the UK's south coast to Brussels would under normal circumstances barely rate a mention. But VLM's immediate takeover of the Southampton-Brussels route abandoned by British Airways is the latest opportunistic foray into the UK...

Opening up the transatlantic.
February 1, 2005... Talks between the European Union and the USA on an Open Aviation Area failed to achieve a breakthrough last year. With US elections now out of the way, there is a chance of making progress if a phased approach can be agreed, writes Geert...

Private move for Amadeus.(Amadeus Global Travel Distribution S.A.)(Brief Article)
February 1, 2005... Amadeus ended months of speculation with the announcement that it had selected two UK-based investment firms, BC Partners and Cinven, to take the global distribution system (GDS) to a public offer valued at up to $5.6 billion. Amadeus,...

A simpler life.(Delta Airlines and KLM set to overhaul pricing structure)
February 1, 2005... As the new year begins, Delta Air Lines and KLMhave become the latest majors to overhaul their fare and pricing structures in response to the rising popularity of the internet and competition from low-fare carriers It has never been easy...

Latin carriers explore Asian links.(Brief Article)
February 1, 2005... A recent surge in transpacific activity is breaking Latin America's traditional ties with North America and Europe. This change is driven by more than the ethnic ties between Japan and its early emigrants to Brazil and Peru, or Taiwan's...

Airlines reveal A380 plans.
February 1, 2005... As the wraps came off the Airbus A380 in a lavish ceremony at Toulouse in mid-January, chief executives from the aircraft's launch customers went further than ever before in revealing details of interior configurations and destination...

LAN poised to enter Brazil.(LAN-Chile Airlines plans brazilian operations by acquiring a stake in Varig S.A.)
February 1, 2005... LAN sees Varig as the key to its entry into the vast market of Brazil, so it is watching with keen interest as Brazil's flag carrier and the Brazilian government debate and discuss various proposals for that airline's restructuring. The...

German low-cost profits.(low cost carriers show modest profits)
February 1, 2005... Germany's main low-cost carriers are beginning to show modest profits in a market that is also seeing a renewed challenge from the leisure sector. Although they do not release hard financial figures yet, two of Germany's low-cost players...

Unions back Cyprus Airways survival plan.
February 1, 2005... A wide-ranging package of cost-cutting measures to bring Cyprus Airways back to profitability has received the backing of two of the ailing carrier's trade unions. After months of tough bargaining with airline management and the Ministry...

Bankruptcy woes dispirit Hawaii.(Aloha Airlines follows Hawaiian Airlines in bankruptcy court)
February 1, 2005... Bankruptcy courts have taken an even greater role in the course of the US airlineindustry as Aloha Airlines follows Hawaiian Airlines into Chapter 11 reorganisation. The two main carriers of the Pacific island paradise join giants United...

India moves to modernise its market.
February 1, 2005... India's government is further opening up the marketplace and allowing privately owned carriers to fly to more international destinations in direct competitionwith state-owned Air India and Indian Airlines. The government is, meanwhile,...

Concern mounts over airport aid rules.
February 1, 2005... Airlines, airports and regional governments are getting increasingly frustrated over long deliberations by the European Commission (EC) over issuing guidelines on airport state aid, and are worried the new rules might hamper their development....

USAirways gains time.(US Airways Inc. bankruptcy reorganization)
February 1, 2005... US Airways has survived its most recent crisis, gaining backing from its two main sponsors until the arrival of the high season helps cash flow resume, but many challenges remain to exit bankruptcy successfully. The airline faces a...

Fast recovery expected from tsunamis.
February 1, 2005... Airlines, tourism authorities and industry analysts expect the devastating 26 December Indonesian earthquake and tsunamis to have only a short-lived impact on travel to some of the affected south and South-East Asian areas. While...

Debt burden.(net debts of airlines have decreaed bu tstill burdensome)
February 1, 2005... Three years of industry losses and steeply rising debts have put airline balance sheets under pressure, but what is the true extent of the problem? The past three years have seen tremendous turmoil for the airline industry, raising serious...

Finance & leasing.(Airplane leasing and renting surveys)(Brief Article)
February 1, 2005... Recovering aircraft values and strengthening lease rates lend an optimistic note to our annual leasing survey; this year compiled by sister fleet data service AvSoft and extended to cover more detail and a full top 50 companies.But the debt...

New lease of life.(Airplane leasing and renting business is back on track with expected returns)
February 1, 2005... Lease rates have rebounded, albeit from low levels, although this is a recovery from a severe downturn that has tested the nerves of some lessor shareholders This time last year many in the leasing industry were predicting a pick-up in...

Comfort zone.(airlines to trying to provide more comfort in long haul flights with renovation in beds)
February 1, 2005... From the front to the back of the aircraft, there are significant changes in cabin layouts and class sizes, with carriers seeking new ways to differentiate their product and maximise revenue While there is little evidence of a clear trend...

Highlights; Network 2005 6-8 March Orlando, USA.
February 1, 2005... The fifth annual Airline Business Network route-planning event promises to bring together more airlines and airports than ever before to do business in the Americas. After the success of last year's Network, which saw record-breaking numbers of...

Fresh start.(Ahmad Fuaad Dahlan of Malaysia Airlines says he will put his company on track)
February 1, 2005... When asked about personal interests, many chief executives will talk about reading, outdoor activities and, perhaps, collecting fine art. Not Ahmad Fuaad Dahlan of Malaysia Airlines (MAS). His main passion is watching top-flight English...

Executive appointments.(Roland Keppler replaces Wolfgang Kurth at Hapag-Lloyd Express)
February 1, 2005... Keppler replaces Kurth at Hapag-Lloyd Express A dispute over how German low-cost carrier Hapag-Lloyd Express should develop has led its founder and chief executive Wolfgang Kurth to resign. He has been replaced by the carrier's chief...

Investment opportunities.(trobuled airlines get reorganization finance from companies like GE Capital Aviation Services Inc.)(Brief Article)
February 1, 2005... As recovery starts to become a reality, finance options available to airlines are starting to increase, although the operating lease looks as if it will play an increasingly important role During the downturn, many banks effectively turned...

Small is beautiful.(regional airlines dominate skies)
February 1, 2005... The introduction of 50-seat jets revolutionised regional air travel and the latest generation of small jets is poised to push the boundaries even further Few would argue that regional jets have represented one of the true bright spots of...