Airline Business articles from January 2007

Airline Business archives from January 2007

Briefing.
January 1, 2007... Allegiant IPO raises $90m Allegiant head overmatter Allegiant Travel, the parent of low-cost leisure carrier Allegiant Air, has raised $90 million from an initial public offering. The Las Vegas-based carrier, whose shares immediately...

New owners for Worldspan and Sabre.(Briefing)
January 1, 2007... Byline: David Field Washington Two major distribution players changed hands in December, each going into deeper private pockets in deals that increase the challenges US carriers face in their campaign to curb distribution costs. ...

Air Jamaica eyes new niche.(Features)(Brief article)
January 1, 2007... Byline: David Field Cancun "The enemy of my enemy is my friend" Mike Conway chief executive, Air Jamaica Air Jamaica has unveiled an ambitious plan to reposition itself as a hub carrier. Chief executive Mike Conway...

Delta-US Airways merger labours.(Features)(Brief article)
January 1, 2007... US Airways chief executive Doug Parker is pressing ahead with his $8 billion-plus hostile takeover bid for Delta Air Lines despite stiff labour opposition. Parker is vowing "full commitment" to his plan to form the largest US airline. But...

Briefing.(Brief article)
January 1, 2007... Varig obtains own certificate Varig finally obtained its own air operating certificate in mid-December, but the changes that have already swept through Brazil's aviation sector will permanently relegate it to a reduced role. TAM now...

IATA takes AA2000 to court.(Briefing)(International Air Transport Association)
January 1, 2007... Byline: Mark Pilling Cancun and Geneva "With the new arrangement we will be paying even more" Alex de Gunten executive director, ALTA IATA has carried out its threat to take legal action against AA2000 and the Argentinian...

Merger fever hits US carriers.(Cover)
January 1, 2007... Byline: David Field Washington Sparked by the audacious $8.7 billion bid of US Airways for Delta Air Lines, US carriers in December leapt into a new round of consolidation talks. While no done deals immediately emerged and a US...

Corporate outlook bleakens.(Features)(international business fares)(Brief article)
January 1, 2007... Byline: David Field Washington International business fares could jump as much as 4% Facing the prospect of higher costs for air, lodging and car rental, some corporate managers are already cutting back while others will be seeking...

In brief.(Briefing)(LAN Express conversion)(Synergy Group to relaunch Wayra Peru)(Air Canada Technical Services acquires Grupo TACA)(Brief article)
January 1, 2007... LAN plans rival to Gol LAN is converting LAN Express, its Chilean domestic unit, into a low-cost cross-border rival to Brazil's Gol. LAN Express hopes to complete its conversion by the end of 2007. It will not match Gol's growing network,...

In brief.(Briefing)(mergers of Comair Inc. and Skywest Airlines Inc.)(Spirit Airlines Inc. introduces flights)(Brief article)
January 1, 2007... SkyWest bags Comair jets Delta Air Lines stripped its Comair subsidiary of some 70-seat regional jet flying at Cincinnati and assigned it instead to SkyWest Airlines. Already a Delta Connection carrier, SkyWest will take over the...

Top of the cycle?(Analysis)(Industry overview)
January 1, 2007... CTAIRA's Chris Tarry discusses industry forecasts and what the outbreak of acquisition fever means. Analysis by Linda Moore and Antoine Fafard In reality there was perhaps little surprise when IATA's latest forecasts were unveiled with an...

Garuda looks for strategic partner.(Briefing)(Garuda Indonesia)
January 1, 2007... Indonesia's government is hoping to bring a strategic equity partner into Garuda Indonesia as part of its effort to save the ailing national carrier. Garuda is in financial trouble and trying again to win relief from its hundreds of...

New owner for Great Wall.(Briefing)(Brief article)
January 1, 2007... China's Great Wall Airlines has undergone an ownership change enabling it to resume operations in February. The cargo carrier launched in May but suspended operations in August as a result of US sanctions. It was 51%-owned by China Great...

HK Airlines plots major expansion.(Hong Kong Airlines)
January 1, 2007... Byline: Nicholas Ionides Singapore Hong Kong's third-largest passenger airline is planning an aggressive expansion that should put it into direct competition with Cathay Pacific Airways and Dragonair. Hong Kong Airlines was known as CR...

India merger nears completion.(Briefing)(merging of Air India and Indian Airlines)
January 1, 2007... Byline: Nicholas Ionides Singapore India's government is moving forward with ambitious plans to combine state-owned Air India and Indian Airlines and insists it is on track for a full merger by the end of the financial year in March. ...

Jetstar launches long-haul services.(Briefing)
January 1, 2007... Qantas Airways' low-cost subsidiary Jetstar Airways has launched long-haul international services after a year of preparation work, enabling it to again look at expansion at home. Jetstar launched services in Australia in 2004 as a domestic...

Private investors make final grab to net Qantas.
January 1, 2007... Byline: David Knibb Seattle The directors of Qantas Airways are recommending shareholders accept an A$11 billion ($8.6 billion) private equity offer for the airline. US-based Texas Pacific Group, headed by David Bonderman, is one of...

Toll holds on to Virgin Blue.(Briefing)(Toll Holdings Ltd.)(Brief article)
January 1, 2007... Richard Branson's goal of gaining a bigger stake in the Australian airline he helped found has been blocked by majority owner Toll Holdings. Toll, which acquired 62% of Virgin Blue as part of its hostile takeover of Patrick Corp in May,...

In brief.(Features)(Dragonair, Air New Zealand, Jet Airways )
January 1, 2007... Dragonair joins oneworld New Cathay Pacific Airways subsidiary Dragonair will join Cathay as a member of oneworld "as soon as possible" in 2007. Oneworld says Dragonair will give the alliance 15 new destinations including 12 in China and...

Forum.(Brief article)
January 1, 2007... Etihad finalises top team Abu Dhabi-based Etihad Airways has confirmed the structure of the fast-growing carrier's management team under the leadership of chairman Sheikh Ahmed bin Saif Al Nahyan and new chief executive James Hogan, who...

Time to carbon trade.(Comment)
January 1, 2007... Airlines from all corners of the globe must get behind efforts in 2007 to create the economic instrument - emissions trading - that offers the most sustainable way for the aviation industry to grow and curb its environmental impact at the same...

Cover.
January 1, 2007... Comment 9 Time to carbon trade Briefing International 11 Revenue boom is over Open Skies scuppered Americas 13 Merger fever hits USA 14 New owners for GDSs 15 Corporate travel costs 16 Air Jamaica...

Aeroflot seeks larger regional network.(Briefing)
January 1, 2007... Byline: David Kaminski-Morrow London Aeroflot plans to expand domestic operations by acquiring and partnering regional airlines, with a new focus on Russia's far east. The carrier is holding talks to establish a hub at Khabarovsk, near...

Italy in a rush to sell Alitalia stake.(Briefing)
January 1, 2007... Byline: Colin Baker Edinburgh Italy seems to be trying to force through a sale of Alitalia before any substantive restructuring takes place at the struggling flag carrier. Italy wants to sell a large slice of its Alitalia stake with...

Counting the carbon cost.(Briefing)(Brief article)
January 1, 2007... Byline: Mark Pilling geneva European Commission (EC) proposals to include aviation in its emissions trading scheme (ETS) could cost carriers [euro]2.9 billion ($3.8 billion) in 2011. IATA estimates that the EC's proposals, which will...

Air France to launch low-cost carrier.(Briefing)(Brief article)
January 1, 2007... "Paris is the most underserved low-cost market in Europe, alongside Madrid." Chris Avery Analyst, JP Morgan Air France-KLM is establishing a new Paris Orly-based leisure carrier through its subsidiary Transavia, making use of...

Turkish eyes low-cost operation.(Briefing)(Brief article)
January 1, 2007... Turkish Airlines is looking to set up a low-cost operation as it works to join the Star Alliance in early 2008. The carrier says it may use Antalya-based leisure airline SunExpress, which it owns jointly with Germany's Thomas Cook, as the base...

BAA challenged by airports study.(Cover)(BAA PLC, airports operator)(Cover story)
January 1, 2007... "BAA has not abused its monopoly." Stephen Nelson chief executive, BAA The UK Office of Fair Trading (OFT) is proposing to refer airports operator BAA to the UK's Competition Commission. The proposal was unveiled in...

Cover.(Flybe British European, Arkia Israeli Airlines Ltd., TUI Group)
January 1, 2007... TUI rebrands its airlines German tour operator TUI Group has unveiled a new brand, TUIfly, for its seven in-house airlines. The new identity covers Hapagfly and Hapag-Lloyd Express, which TUI announced four months ago it would integrate,...

In brief.(Briefing)
January 1, 2007... Lufthansa orders 747-8Is Lufthansa has signed up as launch customer for the new Boeing 747-8I with an order for 20 aircraft plus 20 options. Deliveries are scheduled from 2010 to 2013. The German carrier also has ordered seven additional...

Briefing.(First Choice to sell off First Choice Airways)(Brief article)
January 1, 2007... First Choice for sale UK-based leisure group First Choice is seeking to offload its package holiday business, including in-house carrier First Choice Airways, for around [pounds sterling]500 million ($982 million). MyTravel and Thomas Cook...

Three'scrowd.(Features)(Mango low-cost carriers )
January 1, 2007... Byline: Report by Brendan Sobie in Johannesburg South Africa's existing low-cost carriers are incensed at the arrival of South African Airways' new subsidiary Mango. But is there room for all in the country's vibrant market? "It's like...

Viewpoints.(Features)
January 1, 2007... Liberalisation and ownership are among the greatest challenges that face members of the Arab Air Carriers Organization (AACO), and airlines need to move faster with e-ticketing "Arab air transport cannot continue as an island isolated from...

MisterFix-It.(Features)
January 1, 2007... Byline: Report by Brendan Sobie in Johannesburg**Photography by Debbie Yazbek South African Airways chief executive Khaya Ngqula has made great strides towards reviving the troubled flag carrier. Can his business model solve the troubles...

Dynamic distribution.(Forum)(Global Distribution Systems)
January 1, 2007... So much is happening in the world of airline distribution, with the Global Distribution Systems (GDS) changing hands, new airline GDS pricing deals and new revenue streams emerging, the Airline Distribution conference could not come at a better...

Forum.(Calendar)
January 1, 2007... February 2007 11-13 IATA Legal SymposiumIstanbul, Turkey Contact Wayne Chaif Tel +1 514 390 6711 Website www.iata.org 14-16 Hamburg Aviation ConferenceHamburg, Germany Contact Gesa Hinrichs Tel +49 40 5075 3627...

Retail therapy.(Cover)
January 1, 2007... Airlines need to adapt and act more like retailers if they want to survive in today's harsh environment, writes Pascal Burg of management consultancy Edgar, Dunn & Company "Airlines will increasingly compete in a 'retailing' environment"...

Revenue boom is over.(Briefing)(Brief article)
January 1, 2007... Byline: Mark Pilling geneva IATA is forecasting a modest industry net profit of $2.5 billion in 2007, the first year in the black since 2000. IATA director general Giovanni Bisignani says industry profits are still "peanuts" compared...

Cover.(Bank of China acquires Singapore Aircraft Leasing Enterprise)(Gol delays launch of low-cost domestic carrier)(e-freight initiatives by International Air Transport Association)(Brief article)
January 1, 2007... Bank of China buys SALE Singapore Aircraft Leasing Enterprise (SALE) has been sold to a Bank of China (BAC) subsidiary for $965 million. SALE, which is partly owned by Singapore Airlines, has a portfolio of 64 Airbus and Boeing narrowbody...

USA withdraws ownership proposal.(Cover)(US-European Union Open Skies)
January 1, 2007... Byline: David Field Washington "We're pretty much back to where we were in June 2004" Jon Ash consultant Intervistas GA2 Bowing to the inevitable, US officials have withdrawn their airline-investment liberalisation proposal,...

Brighter horizons.(Cover)(Latin American and Caribbean airlines)
January 1, 2007... Byline: Carole Shifrin Cancun Latin air transport still faces plenty of tough challenges but the outlook is better than it has been for years New carriers, new flyers and a new optimism have brightened the Latin and Caribbean markets...

Privatisation at last for Royal Jordanian.(Briefing)
January 1, 2007... Byline: Gunter Endres Kuwait City The Jordanian government is again preparing Royal Jordanian for its long-awaited privatisation and is confident the flag carrier will end 2007 at least partly privatised. One of three financial...

Middle East Airlines delays sale.(Briefing)(Brief article)
January 1, 2007... War and political instability has forced Lebanese carrier Middle East Airlines (MEA) to postpone its partial privatisation until at least 2008. The recent Israeli-Hezbollah conflict, which forced MEA to temporarily operate out of Damascus...

In brief.(Briefing)(Air Arabia launches new services)(Gulf Air Company GSC, Oman Air plan for tie-up)(Brief article)
January 1, 2007... Air Arabia expands Air Arabia has launched services to Latakia in Syria, bringing its network to 33 destinations. Chief executive Adel Ali says the Sharjah-based low-cost carrier is targeting more destinations in central Asian and...

Flat out.(Special Report)(airlines improving business class services)
January 1, 2007... Byline: Report by Mark Pilling in London Network carriers are once again pouring millions of dollars into improving their premium cabin product in efforts to elevate business class to new heights BA chief executive Willie Walsh...

Jumping the queue.(Features)(mobile phone technology)
January 1, 2007... Airlines and airports are beginning to use mobile phone technology for checking in and even boarding passengers, but will it become as universal as the self-service kiosk? ANA's SKIP check-in and boardingservice is used by up to 15,000...

Screenstars.(Special Report)(airlines showing live television programs)
January 1, 2007... Byline: Report by Jackie Thompson in London Competition between providers of live television on board aircraft is hotting up as the orders roll in "Our products are proven to pay" Scott Easterling sales and marketing...

Call waiting.(in flight mobile phone usage)
January 1, 2007... Mobile phone use in flight is approaching take-off, with several service providers set to go live in 2007 "We want a rapid roll-out" Patrick Brannelly vice-president for passenger communications and visual services, Emirates ...

Special Report.(in flight wireless communication services)(Brief article)
January 1, 2007... Network carriers upgrade business cabinsPage 46 Carriers switch on to live televisionPage 49 In-flight mobile phone use ready for service Page 50 Could mobile phones replace the kiosk?Page 54 Services The next wave of...

Capacity hikes give concern.(Analysis)
January 1, 2007... Byline: Report by Nicholas Ionides in Singapore Asia's carriers present a mixed picture as profit figures head in all directions. But cost-cutting continues and revenues remain solid across the region Impressive revenue growth is...

Cost-cutting efforts continue.(Analysis)
January 1, 2007... Byline: Report by Colin Baker in Edinburgh In a strong economic environment Europe's carriers are enjoying increased yields despite substantial capacity hikes, but fuel prices remain a concern Europe's airlines are continuing to put in...

Forum.(Peter Hartman appointed as acting chief executive of KLM Royal Dutch Airlines)(Brief article)
January 1, 2007... New chief for KLM Peter Hartman, KLM deputy chief executive and chief operations officer, will become acting chief executive from April 2007 and will fully assume the role, replacing long-standing incumbent Leo van Wijk, after the...

Forum.(Maxjet appoints Gary Rogliano)(Brief article)
January 1, 2007... Moves at Maxjet Maxjet, the all business-class transatlantic entrant, says its board chairman William Stockbridge has replaced Gary Rogliano as president and chief executive and that Rogliano has left the Washington Dulles-based airline....

Forum.(appointment of Geoff Dixon)(Brief article)
January 1, 2007... Dixon to stay at Qantas Geoff Dixon has agreed to remain chief executive officer of Qantas Airways after a private equity consortium made up of Australia's Allco Equity Partners/Allco Finance Group and Australia's Macquarie Bank and...

Forum.(United Airlines promotes Greg Taylor, Michael Whittaker)(Brief article)
January 1, 2007... Promotions at United United Airlines has promoted long-time veteran Greg Taylor to senior vice-president, corporate planning and strategy. Taylor will have responsibility for network planning and revenue management as well as...

Pulling.(Features)(merging of airlines)
January 1, 2007... Byline: Report by Peter Conway in Amsterdam A joint cargo business could provide models for future integration at Air France-KLM "We are getting used to making trade-offs" Michael Wisbrun chairman of the joint cargo management...

This airline wants you.(Features)
January 1, 2007... Byline: Report by Nicholas Ionides in Singapore Soaring capacity growth, especially in China, India and the Middle East, has brought the problem of personnel poaching sharply into focus The luring away of the management and flightcrew...

United wins lucrative China route.(Briefing)(Brief article)
January 22, 2007... United Airlines will strengthen its already dominant transpacific position among US majors with a new US-China route won in a contentious Department of Transportation (DoT) proceeding. The airline will fly between the Chinese capital...

US Airways refuses to drop Delta takeover bid.
January 22, 2007... Byline: David field Washington US Airways continues to aggressively push its bid to take over Delta Air Lines, raising its offer from $8.5 billion to $10.2 billion. The new offer includes a roughly even mix of cash and shares and is...

Midwest fights back against persistent AirTran.(Briefing)(Brief article)
January 22, 2007... Midwest Airlines is trying to fend off AirTran's takeover bid with a rapid growth plan, but its uninvited suitor is not ready to give up. AirTran Airways has raised its bid by almost 20% to $345 million in an open-ended offer it is taking...

Northwest reaches Pinnacle deal and eyes Mesaba.(Briefing)(Brief article)
January 22, 2007... Northwest is poised to take over its troubled regional partner Mesaba and has reached a new contract with another of its Airlink partners, Pinnacle. The restructuring of regional relationships is an important part of the Northwest strategy...

Star scrambles to fill Latin network void left by Varig.
January 22, 2007... Byline: David knibb seattle Star's decision to drop Varig leaves the alliance in a quandary over what to do in Latin America. Varig's exit, coupled with the 2004 loss of Mexicana, leaves Star with no presence in the region. In...

Virgin America fights to take flight.(Briefing)(Brief article)
January 22, 2007... Byline: David Field Washington Virgin America is mounting a major campaign to win regulatory approval and support from the flying public. The carrier, partly funded by Richard Branson's Virgin group, plans a website (www.letVAfly.com),...

In brief.(Caribbean Star Airlines merger with LIAT )(Frontier Airlines regional partner Republic Airways )(Brief article)
January 22, 2007... Caribbean merger Caribbean Star Airlines plans to complete its proposed merger with LIAT in February and will reduce flights on overlapping routes. From the beginning of February, the carriers will operate a combined schedule under the...

In brief.(Briefing)
January 22, 2007... AMR back in the black American Airlines parent AMR posted its first full-year profit since 2000 with earnings of $231 million including a fourth-quarter net of $17 million. The results surprised analysts who said they had underestimated...

In brief.(Briefing)
January 22, 2007... Pluna sold to Leadgate Uruguay's government is keeping no proceeds from the $177 million sale of Pluna, but allowing buyers to pay for their 75% stake through fleet purchases and capital injection. Leadgate Investment, a foreign...

Capacity concerns.(Boeing co.)(Column)
January 22, 2007... There are worrying signs of a return to over-capacity in Europe, writes Chris Tarry of CTAIRA, with analyses from Antoine Fafard and Linda Moore The start of a year is a time not only to look forward, but also to look back at the previous...

Spirit Airlines.(appointment of David Lancelot)(Brief article)
January 22, 2007... Lancelot finds new Spirit Former Atlas Air chief financial officer David Lancelot has moved to Spirit Airlines in the same role. He will lead the Fort Lauderdale, Florida-based carrier's finance and accounting organisation and replaces...

Qantas takeover could face conditions.(Briefing)
January 22, 2007... Byline: David Knibb Seattle Australia's government apparently plans to attach conditions to its approval of the A$11.1 billion ($8.7 billion) takeover bid for Qantas Airways. Prime Minister John Howard initially downplayed the...

Sri Lanka to launch low-cost carrier.(Briefing)(Brief article)
January 22, 2007... A government-owned low-cost carrier is being prepared for launch in Sri Lanka in line with efforts to create more home-based competition. SriLankan Airlines is now the only locally based airline to operate international passenger services...

In brief.(Australian travel agents )(Brief article)
January 22, 2007... Travel agents sue A class action filed by Australian travel agents could have broad implications. Agents claim Qantas and five other international airlines owe A$80 million ($63 million) for commissions unpaid on fuel surcharges dating to...

Air France-KLM.(Brief article)
January 22, 2007... Teams combine Air France-KLM is beginning the second phase of combining the regional offices of the formerly separate carriers, with Christine Ourmieres, who heads Air France's operation in the UK and Ireland, assuming the general...

Albanian Airlines.(appointment of Christian Heinzmann)(Brief article)
January 22, 2007... Heinzmann heads to Albanian position Albanian Airlines has appointed Christian Heinzmann as its chief executive and managing director. Heinzmann was formerly the president and chief executive of Luxair and from 1997-2000 was the chief...

Monarch.(appointment of Tim Jeans)(Monarch Airlines)(Brief article)
January 22, 2007... Jeans takes larger role Tim Jeans, managing director of UK leisure and scheduled carrier Monarch's scheduled service division, has taken the new role of managing director Monarch Airlines, responsible for day-to-day running of the airline....

In brief.(appointment of Carsten Spohr)(appointment of Ian Brunton)(appointment of Lain Burns )
January 22, 2007... Carsten Spohr (40), previously executive vice-president services and human resources on the Lufthansa board has started his new post as chief executive and chairman of Lufthansa Cargo. He succeeds Jean-Peter Jansen. Interim chairman Stefan...

Silkair.(appointment of Chin Yau Seng )(Brief article)
January 22, 2007... Chin given SilkAir brief Singapore Airlines (SIA) has appointed Chin Yau Seng as the new chief executive of subsidiary SilkAir. At the end of March, Chin, 35, will replace Mike Barclay, who is to become IATA's regional vice-president,...

About turn for AirAsia as it expands into long haul.
January 22, 2007... Byline: Nicholas Ionides Singapore and Brendan Sobie London AirAsia chief Tony Fernandes is launching a widebody operation from his Malaysia base, after claiming publicly for years that a long-haul low-cost airline model could not work. ...

Old Bangkok airport may reopen.(Don Muang airport)(Brief article)
January 22, 2007... Bangkok's mothballed Don Muang airport looks set to be reopened, just months after it was replaced as Thailand's main gateway by the new Suvarnabhumi airport. Don Muang was shut late in September when Suvarnabhumi opened to handle domestic...

Shenzhen and Mesa to launch carrier.
January 22, 2007... Byline: Nicholas Ionides Singapore China's long-standing hopes for the creation of a hub and spoke network looks set to become reality, with plans by Shenzhen Airlines to create a new regional carrier in partnership with Mesa Airlines. ...

IPO planned for Vietnam.(Briefing)
January 22, 2007... Vietnam's government is planning to partially privatise Vietnam Airlines in 2008 through an initial public offering (IPO). The government says the carrier is one of 53 state-owned groups earmarked for part privatisation between 2007 and 2010....

In brief.(Industrial Revitalization Corporation of Japan)
January 22, 2007... China Eastern's Beijing base Shanghai-based China Eastern Airlines is seeking to establish a secondary base in Beijing. China Eastern has filed an application with the Civil Aviation Administration of China for approval to base Boeing 737s...

Best of the Airline Business Blogs.(Forum)
January 22, 2007... Global warming debate heats up a1/4 As the argument rages as to the relative merits of the European Commission's proposed Emissions Trading Scheme versus the UK's Airline Passenger Duty charge, due to double next month, transatlantic...

Taking the long view.(Tony Fernandes of AirAsia Sdn. Bhd.)(Interview)
January 22, 2007... The recent launch of several long-haul low-cost players has sparked intense debate about how fast this model can penetrate the established network carrier order. Is it a niche phenomenon or something more mainstream? "I don't think you'll...

Lebanese investors to take over BMED.(Features)
January 22, 2007... Byline: Colin baker edinburgh British Airways franchise operator BMED is close to sealing a deal which will see Lebanese investors effectively take over the carrier and inject [pounds sterling]30 million ($59 million) of equity. "We...