Airline Business articles from July 2005

Airline Business archives from July 2005

Spin-offs fuel Air Canada's growth.
July 1, 2005... Aeroplan, Air Canada's frequent flyer programme, is the first with plans to spin off some 18% for about C$288 million ($230 million). ACE converted Aeroplan into an income trust so it can offer trust units to investors. Last year, Aeroplan...

Mexico's Cintra opens bidding.(Cintra to sell Aeromexico and Mexicana Airlines)(Brief Article)
July 1, 2005... Cintra is moving ahead with plans for the separate but simultaneous sales of both Aeromexico and Mexicana, concentrating on private placements. The government agencies that own two-thirds of Cintra began an offer for separate stakes in the...

Hawaiian exits bankruptcy.(Hawaiian Airlines Inc.)(Brief Article)
July 1, 2005... Hawaiian Airlines has emerged from 26 months of bankruptcy court reorganisation with $60 million in bridge financing, a $50 million bank credit line and ambitious expansion plans. This is the second time Hawaiian had been in Chapter 11...

In brief.(United Air Lines Inc. emerges from bankruptcy, Air Canada cancels contract with Boeing Co.)(Brief Article)
July 1, 2005... United edges to the exit United Airlines moved closer to emerging from the Chapter 11 bankruptcy reorganisation it entered in December 2002 with final union approval of $700 million worth of cost-cutting contracts. The carrier says that it...

Northwest at brink of bankruptcy.
July 1, 2005... Northwest Airlines finds itself at the centre of widespread speculation that it will be forced into bankruptcy reorganisation after chief executive Doug Steenland's recent warning to a Senate committee. The airline has if anything encouraged...

Senate offers carriers cold comfort.
July 1, 2005... Even as pension and retirement funds increasingly grasp public attention, the airlines can expect cold comfort to gauge by reaction on the Hill. As Congress begins to address the White House proposal to restructure the nation's retirement...

Overcapacity damages Peru.(Airline industry forecast)(Brief Article)
July 1, 2005... New entrant airlines could flood Peru's domestic market with excess seats warns Carlos Palacin, president of Peru's airline association, because the five carriers now serving the market "offer 15,000 daily seats when the demand is only for...

US majors see first glimmers of hope.(airline industry revenue growth expectations)
July 1, 2005... Driven by increasing consumer tolerance of higher prices, a booming economy and the effects of negotiated labour cost cuts, this buoyancy may not be strong enough to offset all of the increased cost of fuel, but stands to make for a good summer...

Delta rails against subsidies.(Delta Air Lines Inc. discontinues seven flights services)(Brief Article)
July 1, 2005... Delta Air Lines says it is cancelling seven of its daily flights from Wichita's Mid-Continent airport in a dramatic gesture in its battle over subsidies given by the Kansas city to low-cost rival AirTran Airways. Wichita rejected an offer from...

Will orders pay off?(airlines ordering more jet aircrafts)
July 1, 2005... We are always told that the timing of aircraft order announcements has nothing to do with air shows, although the evidence from Paris last month might suggest otherwise. The $40 billion or so in airliner orders and commitments -- largely led...

Fuel price worries mount.(airlines add fuel surcharges)
July 1, 2005... Airlines are praying that oil price rises have overshot market fundamentals due to speculative behaviour by hedge funds and that prices could ease during the summer period. The worry is that prices will remain high during the winter season of...

ANZ applauds new UK deal.(Air New Zealand Ltd.)(Brief Article)
July 1, 2005... The liberalised New Zealand-UK bilateral opens the way for Air New Zealand (ANZ) to fly to Europe via Asia, so that it can circle the globe both ways to reach London. Before this pact, ANZ and British Airways both were limited to seven weekly...

China Eastern completes consolidation.(acquisition of China Northwest Airlines and Yunnan Airlines)(Brief Article)
July 1, 2005... China Eastern says it expects to finalise its long-planned takeover of China Northwest Airlines and Yunnan Airlines in the coming months. The major carrier signed agreements on 12 May under which it will pay up to CNY986 million ($119 million)...

Garuda expands with Citilink.(Garuda Indonesian Airways)(Brief Article)
July 1, 2005... Garuda Indonesia's new chief is looking for expansion after years of rationalisation, with much of the growth to be focused on low-cost unit Citilink. President Emirsyah Satar says that he has ordered a new long-term business plan to be drawn...

India frees more markets...(India's new contract with Belgium, Canada and Germany empowers airlines to offer expanded services)(Brief Article)
July 1, 2005... Over the past year the Indian government has acted on liberalisation pledges and significantly eased restrictions in air services accords with key trading partners, such as China, France, Mauritius, Qatar, the UK and the USA. Its latest...

...and bursts with low-cost life.(airlines plans to launch low-cost flights, India)(Brief Article)
July 1, 2005... The first of several new airlines that aim to launch services in India this year have taken flight as the government continues to open up the domestic market to new competition. The new players are all promising to be low-cost players, although...

Jet starts new global push.(Jet Airways starts international flights to USA, Europe, and Southeast Asia)(Brief Article)
July 1, 2005... Jet Airways hopes to bring on line a stream of new international routes over the next 18 months to Europe, the USA and into south-east Asia, as the Indian government signs increasingly liberal bilaterals with a variety of countries. Although...

Low-cost cut out of accord.(Indonesia and Singapore are in talks on new air services agreement)(Brief Article)
July 1, 2005... Indonesia and Singapore are close to formalising a new air services agreement to allow for more flights -- but low-cost carriers will be barred from key routes. The two countries have, for months, been talking about a new air services accord,...

Open skies still eludes Pacific islands ".(Solomon Islands signs Pacific Islands Air Services Agreement )(Brief Article)
July 1, 2005... Pacific island nations are finding it no easier than their Caribbean counterparts to liberalise aviation between them. The Solomon Islands has become the fifth nation to sign the Pacific Islands Air Services Agreement (PIASA), but it is the...

Low-cost battle across the Tasman.(JetStar plans to start flights to New Zealand)
July 1, 2005... JetStar, the Qantas subsidiary, has accelerated plans to launch New Zealand flights, where it will compete with Air New Zealand's Freedom Air and Virgin Blue's overseas arm Pacific Blue. As recently as April JetStar was predicting it might be...

Norris exits ANZ.(Ralph Norris to retire from Air New Zealand Ltd.)
July 1, 2005... Ralph Norris has decided to return to the banking industry after bringing Air New Zealand (ANZ) back from the brink. Viewing himself as playing "a turnaround role", the airline's managing director and chief executive says ANZ's recovery has...

Air Canada completes executive reshuffle.(Brief Article)
July 1, 2005... Air Canada and its parent, ACE Aviation Holdings, have completed their separation by filling all senior posts in each organisation. When ACE was formed a number of senior Air Canada people moved to it, starting with chief executive Robert...

Store manager takes over from Suila at Finnair.(Brief Article)
July 1, 2005... Finnair's board has appointed Jukka Hienonen, 43, as its new president and chief executive taking over from the retiring Keijo Suila. Hienonen has worked for Finnish department store Stockmann Oy since 1995 and has been executive vice-president...

In brief.(Brief Article)
July 1, 2005... Latin American aviation executive Jose Kuri Orvananos has been appointed senior vice-president of Aeromexico's US division. His former employers include Avianca, Continental Airlines, Iberia and Mexicana. ATA Airlines has appointed Francis...

A grand vision.(Yang Yuanyuan receives an award from International Air Transport Association)
July 1, 2005... It is a sign of the times that it was Yang Yuanyuan, Minister of the Civil Aviation Administration of China (CAAC), who stepped forward to receive IATA's second Global Aviation Leadership Award at its annual general meeting in Tokyo in late...

Special report Information technology.
July 1, 2005... 36 IT Trends survey 2005 The technological innovations of the 1990s are fast becoming industry standards, as revealed in this year's Airline IT Trends Survey, conducted by Airline Business and SITA. 46 Common cause It has been a long time...

Events diary.
July 1, 2005... JULY 3-7 9th ATRS Annual Conference Rio de Janeiro, Brazil Contact ATRS Tel +1 604 822 8254 website ww.atrsworld.org 17 Airline Business Airline Strategy Awards London, UK See Highlights September 15-16 World Low Cost Airlines Congress 2005...

Airline IT Summit 2005.
July 1, 2005... 17 July London, UK With the shortlist now drawn up for this year's Airline Strategy Awards, the invitations for the gala dinner itself, taking place in central London on Sunday 17 July, where the award winners are announced, are landing on...

Routes 2005.
July 1, 2005... 25-27 September Copenhagen, Denmark For the first event of its second decade of existence, Routes is travelling to Denmark. During its first decade the event has established itself as a firm diary fixture for airline network planners and...

Highlights.
July 1, 2005... Network 2006 5-7 March 2006 San Antonio, Texas Next year's Network gathering of airline route planners and airport marketing specialists is moving from its familiar Florida home to the equally sunny and welcoming city of San Antonio in...

Middle East cargo boom continues.(Al Rais Cargo to start new services, Trafic airline established)(Brief Article)
July 1, 2005... Two new independent cargo carriers in the Middle East are expanding their operations as cargo traffic within the region continues to boom. Dubai-based Al Rais Cargo took delivery of its third Boeing 727 freighter in June, and plans to have five...

CSA set to compete from Bratislava.(Ceskoslovenske Aerolinie plans to base its flights at Slovakian airport)
July 1, 2005... SkyTeam Alliance member CSA had been working closely with Malev, acting as the latter's sponsor in what was meant to be the path towards second-tier alliance membership. However, in late May, Malev shifted its allegiance to oneworld, which is...

Europe unveils its ATM masterplan.(air traffic management)
July 1, 2005... EC transport commissioner Jacques Barrot and Victor Aguado, director general of Eurocontrol, Europe's air traffic management (ATM) co-ordinator, announced at the Paris Air Show in June that the definition phase of SESAME would be launched once...

In brief.(Brief Article)
July 1, 2005... Alitalia aid gets all-clear Alitalia has been cleared by the European Commission of receiving illegal funding from the Italian government. Brussels launched an investigation of a [euro]1.2 billion ($1.5 billion) loan last January. LTU low-cost...

In brief.(Brief Article)
July 1, 2005... EC consults on emissions Brussels has started a consultation centred on gathering opinions for the possible extension of the European Union's (EU) emission trading scheme to sectors including air transport. An emission trading scheme was...

Expectdelays.
July 1, 2005... For an industry awash with performance targets and customer service initiatives, it is perhaps somewhat strange that air transport has made so little progress on punctuality. After all, arriving on time is not only fundamental to the efficient...

Low-cost failures loom.
July 1, 2005... There is good and bad news on the horizon for Europe's low-cost airlines. The good news is that they are on course to boost their market share from the current level of approximately 19% to at least one-third of the total market by the year...

Parischeer.
July 1, 2005... This year's Paris air show saw an aerospace industry back on form with an amazing new aircraft, billions of dollars of order announcements and a healthy spat between the main rivals. Aided by a surge of new business, almost exclusively from...

Arab carriers band together.
July 1, 2005... Six Middle Eastern carriers are planning a multilateral alliance called "Arabesk" that they expect will lead to the launch of co-ordinated schedules and codesharing early next year. Arab Air Carriers Organization (AACO) secretary general Abdul...

IATA issues profit warning.
July 1, 2005... The new loss forecast -- nearly 10% more than the $5.5 billion prediction made only in April -- was revealed at IATA's annual general meeting in Tokyo late in May. At the meeting, director general Giovanni Bisignani reiterated the need for...

Narita unveils price cuts.(Brief Article)
July 1, 2005... Following years of intense pressure from airlines, the operator of Tokyo's Narita airport revealed during IATA's annual meeting it would be slashing its landing charges which were among the highest in the world. Narita International Airport...

IATA briefs.
July 1, 2005... IATA honours China's Yang IATA gave its second Global Aviation Leadership Award to Yang Yuanyuan, minister of the Civil Aviation Authority of China in recognition of his work in liberalising the country's aviation market and bringing air...

Oneworld's membership drive.(Brief Article)
July 1, 2005... Fresh from signing its first new member for six years in the shape of Hungary's Malev, oneworld is working on recruiting more carriers this year. The emphasis has changed after years of focusing on generating interline revenues and incremental...

Alliances jostle for Chinese position.
July 1, 2005... Star is in detailed talks with Air China, even though oneworld alliance member Cathay Pacific Airways has unveiled its first operational ties with the carrier after forging an equity link late last year. Cathay acquired a 10% stake in Air China...

Varig's international rescue.
July 1, 2005... The impetus for Varig filing in mid-June for court protection was to prevent repossession of 11 aircraft it had sold and leased back from ILFC. Negotiations with ILFC had failed, and ILFC's threat had prompted other lessors Ansett and GATX...

SkyTeam adds new members.(Brief Article)
July 1, 2005... The SkyTeam alliance has finally launched its associate programme for second-tier carriers, with the first members being Spain's Air Europa, Panama's Copa, Kenya Airways and Romania's Tarom. The scheme was initially expected to launch last...

Pain relief.
July 1, 2005... Merger and activity in the airline sector has often looked like something of a last ditch cure: by the time the treatment is applied, the patient is critical, if not already dead. Plenty of such medicine has been administered since September...

Commoncause.
July 1, 2005... After years of anticipation, it looks as if the Star Alliance common IT platform may finally be coming to fruition. The alliance is confident that it will get the go-ahead for the project this summer, possibly as early as July. Although it has...

Switching the.
July 1, 2005... ITA Software and G2 Switchworks are names that offer beleaguered airlines a chance to claw back some of the $5.5 billion they spend every year on global distribution systems (GDS) booking fees. They claim to have found a way to allow airlines...

SPECIAL REPORT.(airlines)(Brief Article)
July 1, 2005... The latest Airline IT Trends Survey shows an industry rapidly adopting internet-based technology. At the same time, the revolution continues in distribution, with web crawlers and new GDS challengers gaining ground, while the Star Alliance...

2005 Trends survey IT.
July 1, 2005... With IATA's "simplifying the business" campaign now in full swing, this year's IT Trends survey compiled by Airline Business and SITA provides a timely window into the extent to which airlines are willing and able to take advantage of new...

Enginechange.(services of meta-search engines)
July 1, 2005... The 1990s proliferation of travel websites, while a boon to internet shoppers, also gave airlines a competitive opening, luring customers with a promise of the cheapest fares. Now a new generation of search engines that simultaneously mine...

In brief.
July 1, 2005... Canberra denies SIA rights The Australian Government has again turned down a request for Singapore International Airlines (SIA) to be given rights to fly onwards from Sydney to Los Angeles. Qantas opposed the move, saying it would hit earnings....

with a.(International Air Transport Association )
July 1, 2005... interview over, Giovanni Bisignani grabs his jacket and sprints out of his office at IATA's 61st Annual General Meeting venue in Tokyo. It is the evening after an exhausting three days of endless speeches, handshakes, back-slapping and press...