Airline Business articles from July 2004

Airline Business archives from July 2004

Brazil's Gol goes public.(Brief Article)
July 1, 2004... Brazil's low-cost carrier Gol Transportes Aereos is expected to raise as much as $275 million in an initial public offering (IPO). Its shares will be offered first on the New York Stock Exchange, followed soon after with a domestic float in Sao...

Sinergy bid wins Avianca contest.(Sinergy's)(Brief Article)
July 1, 2004... Avianca's acceptance of the equity offer from Brazil's Sinergy group appears to end a long uncertainty over who would own South America's oldest airline. Several Latin carriers considered investing, but in the end the choice came down to...

Congress closes the door on aid.(Brief Article)
July 1, 2004... Congress has firmly told the US airline industry that no further federal aid is forthcoming despite the financial crisis that has swamped the majors. House aviation subcommittee chairman John Mica says he is staunch in his belief and that...

Carriers fight off bankruptcy.(Brief Article)
July 1, 2004... Two US majors are showing differing approaches to the spectre of bankruptcy that has overshadowed the industry. At Delta Air Lines, after repeated management warnings over recent months that it may be forced to seek bankruptcy court...

In brief.(Brief Article)
July 1, 2004... Independence Air starts Independence Air, the former Atlantic Coast Airlines, began operations as a low-cost, standalone carrier at Washington Dulles to a competitive response. United Airlines mounted an aggressive frequent flyer promotion...

In brief.(Brief Article)
July 1, 2004... Problems in Peru AeroContinente's troubles have deepened following a declaration by the US government that Fernando Zevallos, the airline's founder, is a drug "kingpin" as defined under US law. The Peruvian airline is already banned from...

Republic goes public to raise $65m.(Brief Article)
July 1, 2004... Republic Airways priced shares in its initial public offering at $13, below the $14-16 range it had earlier hoped to get in the five-million share flotation, but still managed to raise $65 million. The company, an Indianapolis-based holding...

New models under pressure.(airlines)
July 1, 2004... Europe's low-cost carriers find themselves facing a vigorous response from the network majors and an oversupply of seats. They may need to evolve the model, writes Chris Tarry of CTAIRA If any reminder were needed of how unforgiving...

Asian trio discuss open skies pact.(airlines)
July 1, 2004... Brunei, Singapore and Thailand are negotiating a multilateral air services agreement that would give locally registered airlines unlimited rights for passenger flights. Singapore's transport ministry hopes agreement can be reached around...

More turmoil as Swiss misses target.(management)(Brief Article)
July 1, 2004... Swiss is back to square one in its search for a global alliance, as it warns that its target of break-even for the current financial year will be missed. The carrier decided to end its relationship with British Airways, drawn up by former...

In brief.(Air Polonia)(Brief Article)
July 1, 2004... Paris CDG Terminal collapse The French civil aviation authority has decided to limit capacity at Paris Charles de Gaulleto 867 daily slots in the wake of the collapse of Terminal 2E in late May, which killed six people. The restrictions...

In brief.(Brief Article)
July 1, 2004... Slot trading probe The European Commission has launched a probe into slot trading at London Heathrow Airport. The UK has until the end of July to respond to allegations that trades in the "grey market" for scarce slots by the likes of...

IATA aims to save $900m this year.
July 1, 2004... IATA has an ambitious target to achieve savings of $900 million this year from the industry's value chain, well up on the $630 million it claims in cost savings from airports and air traffic service providers last year. Up to the end of...

IATA AGM briefs.(Brief Article)
July 1, 2004... San Francisco wins Eagle Cuts in terminal rents and landing fees helped San Francisco International airport win an IATA Eagle Award for its "outstanding performance in providing value for money". It was the only service provider to win an...

Network model 'not broken'.
July 1, 2004... "The low-frills model is the flavour of the day, but premium full-service still has a place in the sun," said Chew Choon Seng, chief executive of Singapore Airlines, speaking as part of a panel debating the challenges facing the industry. ...

USA and China free markets.(alliances and partnerships,negotiation, mediation and arbitration)
July 1, 2004... China and the USA are to sign a sweeping liberalisation pact in a deal that will dramatically increase both passenger and cargo service between the countries. Between this year and 2010, the expanded bilateral will double the number of US...

South African and TAPjoin Star.(Brief Article)
July 1, 2004... With the addition of South African Airways (SAA) and TAP Air Portugal, the membership of Star Alliance will grow to 17 carriers. The SAA and TAP applications were unanimously approved by Star's board in early June and they will become full...

Air Canada reabsorbs Zip.(Brief Article)
July 1, 2004... Legacy carriers around the world are spinning off low-cost subsidiaries, but Air Canada has moved well beyond that phase - in fact it has gone full circle. When Air Canada's costs were higher, it created low-cost carriers Tango and Zip for...

Open skies stalls again.(negotiation, mediation and arbitration)(Brief Article)
July 1, 2004... Concessions offered by the USAin early June to try and secure Europe's approval for a limited deal on transatlantic open skies failed to break the deadlock between the two sides. European Commission (EC) and US negotiators were trying to...

Air India goes low cost.
July 1, 2004... Air India is to launch a low-cost international arm serving points in the Middle East and South-East Asia in a move aimed at preventing emerging new carriers from eating into its already declining market share. The state-owned national...

Kenya Airways poised for SkyTeam role.
July 1, 2004... With the assistance of its close ties with KLM, Kenya Airways is poised to become the first associate member of SkyTeam later this year. The East African carrier is enthusiastic about the new opportunities opening up for it as a result of...

China approves start-ups.
July 1, 2004... Chinese regulatory authorities have given tentative approval for the establishment of new privately owned carriers, in another sign the government intends to open up the booming domestic market to more competition. The Civil Aviation...

United dusts down plan B.
July 1, 2004... For the second time United Airlines has had its application for a government-backed loan rejected, forcing the carrier to rethink its bankruptcy exit strategy. United Airlines is to determine its own future after the stunning rejection by...

Fuel hikes hinder progress.(airlines)
July 1, 2004... IATA warns that the spiralling price of oil threatens to plunge the industry into the red again this year despite massive restructuring among full service carriers. "This year was meant to be the first profitable year for our industry this...

Simpler industry will save millions.(airlines,planning)
July 1, 2004... IATA is backing a series of initiatives to drive costs out of the industry under its "simplifying the business" banner, including e-ticketing and RFID. A move to the 100% implementation of e-ticketing by the end of 2007 was the boldest...

Reid starts to shape Virgin America.(new low-fare, US-based affiliate)
July 1, 2004... The first details of Virgin America are being firmed up as it selects a name, base and aircraft type. Virgin Group's Richard Branson will call his new low-fare, US-based affiliate Virgin America, and its head, Fred Reid, says it will buy...

EasyJet shares dive after second profit warning.
July 1, 2004... EasyJet has seen its share price plunge as it issues two profit warnings in quick succession, while Ryanair too has seen its stock fall amid warnings of tumbling yields. EasyJet's share price fell by 20% to around 160p ($3) in the wake of...

Working together with ATC.
July 1, 2004... Airlines and air navigation service providers need to join forces to push for governmental reform, argues Alexander ter Kuile, secretary general of CANSO, the Civil Air Navigation Services Organisation. In the past, relations between the...