Airline Business articles from June 2006

Airline Business archives from June 2006

GOL denies Varig-Mexico link.(Gol Transportes Aereos)(Brief article)
June 1, 2006... GOL Airlines denies any link between its plans for a low-cost airline in Mexico and the possibility that it may need to fill a growing vacuum in Brazil if Varig collapses. The low-cost carrier that GOL agreed to launch with Mexican...

Briefing.(CanJet discontinues service in Toronto-Calgary route )(Brief article)
June 1, 2006... CanJet gives up on Calgary Nova Scotia-based CanJet will withdraw in September from its last route in western Canada. The airline ventured west a year ago, but ran into surprisingly stiff resistance from Calgary-based WestJet. As a result,...

Briefing.(American Airlines Inc.)(Comair Inc.)(Northwest Airlines Corp.)(Brief article)
June 1, 2006... Cargo security steps up The USA plans a new air cargo security regime that will require criminal background checks of more than 100,000 airport, airline and freight-forwarder workers and consolidate 4,000 ?known shipper? lists into a...

USA faces key summer test.(reduced resources and staff strains the US travel season)
June 1, 2006... The prospect of the busiest travel season since 1990 looks like turning into a crucial test of the ability of US carriers, with their reduced resources and pared-back staffing levels, and of the nation? straining airports and air traffic...

Venezuela wins safety showdown.(by Federal Aviation Administration)
June 1, 2006... Venezuela? showdown with the FAA is historic in several ways. It is the first time a Latin nation has threatened to cut flights by US carriers because of the imbalance caused by category 2. It is also the first time that the FAA has agreed to...

Turning the tables.(airlines)
June 1, 2006... Is this the way it was meant to be? Mergers were supposed to be a guarantee of failure and low-fare innovators were supposed to guarantee money makers. Didn? happen. US Airways, the twice-bankrupt reincarnation of money-draining USAir and...

Turbulence expected.(Column)
June 1, 2006... In the February issue this column suggested that the record order intake of 2005 should not be seen as a precursor to a golden age for the aviation industry. Recent events, despite the optimism of some airlines and the financial targets of...

Australian players in for the long haul.(Qantas Airways Ltd., Virgin Blue Airlines Proprietary Ltd.)
June 1, 2006... Australia? two major airlines, Qantas Airways and Virgin Blue, have different motives for venturing into this largely untried sector, but both prove the point made by some observers, that established carriers, not start-ups, have the best...

China Southern heads to Beijing as restrictions ease.(China Southern Airlines Company Ltd.)
June 1, 2006... China? government is continuing to ease restrictions on where local carriers may set up secondary bases as it allows for more competition in the fast-growing market. The regulatory Civil Aviation Administration of China (CAAC) has...

Momentum builds for Indian merger.(Air India and Indian Airlines to merge)
June 1, 2006... The seven-member committee comprises Air India chairman and managing director V Thulasidas; Indian Airlines chairman and managing director Vishwapati Trivedi; two senior Ministry of Civil Aviation officials; the finance directors of Air India...

Tasman codeshare accord under fire.(Brief article)
June 1, 2006... The proposed codeshare between Air New Zealand (ANZ) and Qantas Airways across the Tasman Sea is running into flak in New Zealand. Capacity cuts planned as part of the deal have raised concerns in Wellington. They claim that ANZ is...

Briefing.(Air Marshall Islands suffers losses)(Air Kiribati to lay off it's staff)(Air Nauru plans to take off again)
June 1, 2006... Pacific carriers find life tough Life has never been easy for airlines serving the tiny Micronesian islands sprinkled across the Pacific, but fuel prices are making it worse. Government-owned Air Marshall Islands has lost nearly $5 million...

Shanghai confirmed as Chinese Star.(Shanghai Airlines forms partnership with Star Airways)
June 1, 2006... Star also anticipates that towards year-end it will have invited an Indian carrier ? either Air India or Jet Airways ? to join the alliance. In mid-May Shanghai Airlines and Star held a ceremony in Shanghai in which the carrier formally...

Briefing.(Thai Airways International Ltd. partners with Bangkok Airways and stresses upon domestic market)(Brief article)
June 1, 2006... Thai makes domestic push New Thai Airways International president Apinan Sumanaseni is making the domestic market a major focus of attention and intends to launch a new carrier to fill what he sees as a gap between full-service Thai...

Tiger ready to stretch out overseas.(Tiger Airways)(Brief article)
June 1, 2006... Singapore-based Tiger Airways is seeking to establish itself as the second pan-Asian low-cost carrier after Malaysia? fast growing AirAsia by setting up bases in other countries. Tiger, 49%-owned by Singapore Airlines, has for more than a...

JetBlue Airways.(John Harvey and John Owen promoted)(Brief article)
June 1, 2006... Shake-up at JetBlue JetBlue Airways has promoted John Harvey, previously senior vice-president of corporate finance and treasurer, to the post of executive vice-president and chief financial officer. Harvey, who joined in 1999 and has been...

Forum.(United Air Lines Inc. promotes Scott Dolan)(Gulf Air Company GSC appoints Lee Shave)(Virgin Blue Airlines Proprietary Ltd. appoints Mark Rowsthorn)(Brief article)
June 1, 2006... Jose David Cabello is the new president of Venezuela? state-owned Conviasa. He replaces tourism minister Wilmer Castro. Cabello is vice-minister of infrastructure and president of the institute that controls Caracas airport. David Siegel,...

United front.(annual general meeting of International Air Transport Association)
June 1, 2006... Whether by luck or by judgement, the most recent annual gatherings of the world? airline leaders have taken place smack bang in capital cities where their association has had its greatest beef with the country? main hub. This year, as IATA...

SAA faces competition pressures.(South African Airways)(Brief article)
June 1, 2006... Rival airlines have put South African Airways (SAA) on the defensive on several fronts. Comair, which operates for British Airways in South Africa, and its low-cost unit kulula.com, have complained to the national competition commission that...

Ethiopian hunts for strategic alliances.(Ethiopian Airlines)
June 1, 2006... The carrier is aiming to double its current $500 million turnover by 2010 by growing its airline activity, diversifying its service revenues and securing alliance membership. Following this strategic shift, services will account for half ?...

Aviation area set to expand.(Egyptian Civil Aviation Authority )(Brief article)
June 1, 2006... The agreement, which was signed in early May, will see eight Balkan states ? Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania, Serbia and Montenegro and the United Nations Mission in Kosovo ? join the ECAA, along with...

Iberia low-cost arm takes on Vueling.(Iberia Lineas Aereas de Espana S.A.)
June 1, 2006... Iberia is aiming to launch the as-yet unnamed new carrier as soon as this October with five leased Airbus A320-family aircraft. Its main rival will be newcomer Vueling, which began services in July 2004, and now operates a fleet of 10 A320s on...

Briefing.(Aer Arann orders more equipment)(Silverjet raises money)(Brief article)
June 1, 2006... Silverjet raises launch cash New UK-based airline Silverjet has raised ?25.3 million ($48 million) from institutional and other investors, putting it on course to launch low-fare, all-business class services within six to nine months....

Net.(airlines provide services on web)
June 1, 2006... worth The internet? latest ways of enabling two-way communications with travellers, such as user reviews, blogs, customised news and product feeds, is creating a new generation of web content providing an ideal medium for a higher level of...

Demand curve.(airlines increase their seats)
June 1, 2006... When two major us carriers plan double digit capacity increases on their transatlantic routes for the summer season, something is clearly happening. It turns out, however, that Delta and Continental Airlines, respectively offering 25% and...

Routes goes global.(conferance of airlines)
June 1, 2006... This year the World Route Development Forum will be in the Middle East for the first time in 10 years, reflecting its increasingly international status. And while Routes has almost always been held in Europe, record delegate numbers are...

Unfair punishment.(Federal Aviation Administration, Venezuela)
June 1, 2006... Venezuela? recent experience getting the FAA to recognise its many aviation safety improvements indicates a broader need to reform the policy that restricted the country, as well as the need to reform other out-dated forms of international...

Airlines and GDSs haggle over content.(airlines withhold information from Global Distribution Systems)
June 1, 2006... The latest round, a move by Air Canada to withhold some of its most attractive fares from the GDSs and so from corporate travel departments, comes as the industry is still trying to digest an unprecedented content-sharing agreement between...

Open Skies stumbles on foreign control issue.
June 1, 2006... The opening of the transatlantic skies will probably have to wait until late this year or next as the Bush administration, stung by objections from Congress, is left with no choice but to explain and possibly revise its approach. Capitol...

Public enemy?(aviation industry)
June 1, 2006... ?Could aviation follow the cigarette industry as public enemy number one?? This was the startling question posed to delegates at April? Aviation & Environment Summit 2006 by Alexander ter Kuile of CANSO, which represents the interests of air...

Under the wing.(Only Germany gets lucky in low-cost model aircarriers.)
June 1, 2006... Only a handful of carriers have tried to make the jump from the regional to the low-cost model. Some are flourishing, but others have failed. The UK? flybe and Ireland? Aer Arran are making a decent job of it, but US player Independence Air...

Shaping up.(Airbus A380 to be delivered at Los Angeles International Airport)
June 1, 2006... Los Angeles International will be one of the first airports to receive the Airbus A380, but what shape will it be in? The airport is expected to receive the superjumbo some time in 2007, but will only have two contact gates at the Tom Bradley...

Berlinboost.(Brandenburg International airport gets license)
June 1, 2006... Europe? aviation industry received a rare piece of good news on capacity earlier this year when Berlin? new Brandenburg International airport was given the go-ahead, following a federal court decision in March that overruled environmental...

Features.(on airports)(Brief article)
June 1, 2006... Calls mount for rules on airport feesPage 50 Top 100 Airport rankingPage 55 Asia opens low-cost terminals Page 65 Berlin to get its new airportPage 69 Are airports ready for the A380?Page 70 Airports Carriers have new...

Campaigntrail.(New Zealand airports charge a lot)
June 1, 2006... To be frank it is probably the worst in the world,? says Rob McDonald, chief financial officer of Air New Zealand (ANZ). He is commenting on the charging regime at Auckland International airport, ANZ? homebase. ?There is no effective regulation...

The future?s bright.(for airports)
June 1, 2006... One city had not one but two appearances among the world? five fastest growing airports in 2005. Remarkable traffic growth of 26% at S?o Paulo? predominantly domestic downtown Congonhas airport was almost matched by the 21.5% rise at...

Atlas Air Worldwide.(Atlas Air Worldwide Holdings Inc. appoints)(Brief article)
June 1, 2006... Flynn takes over Atlas Air Worldwide Holdings, parent of cargo carriers Atlas Air and Polar Air Cargo, has named William Flynn president and chief executive. He replaces Jeffrey Erickson, who is retiring. Flynn was formerly chief executive...

Etihad Airways.(Robert Strodel resigns)(Brief article)
June 1, 2006... Strodel quits Etihad Robert Strodel has suddenly left his position of chief executive with Etihad Airways. Observers were surprised at Strodel? appointment, less than a year ago, as he had no previous experience at that level. He was...

Jet Airways.(appoints Dale Moss)(Brief article)
June 1, 2006... Moss moves to Jet Airways Dale Moss has been appointed chief operating officer with Jet Airways, reporting to chief executive Wolfgang Prock-Schauer. Moss will be responsible for passenger sales, cargo & operation, information technology,...

SAS Group.(J?rgen Lindegaard resigns)(Brief article)
June 1, 2006... Lindegaard steps down After five years at the helm of the SAS Group, chief executive J?rgen Lindegaard is to step down later this year. He joined the group in 2001, just before the 9/11 attacks sent the aviation industry into freefall. ...

Tampa Cargo.(Fred Jacobsen resigns)(Brief article)
June 1, 2006... Jacobsen about turn In a surprise move following the announcement in March of the resignation of chief executive Fred Jacobsen, the board of directors of Colombia-based Tampa Cargo says it has now reached an agreement with him about his...

Briefing.(British Airways PLC profits)(Qantas Airways Ltd. cuts jobs)(canada and United Kingdom sign open skies deal)(Brief article)
June 1, 2006... Canada and UK agree deal Canada and the UK have signed an Open Skies deal under which, from September, Canadian airlines will be able to offer unlimited flights to third countries via the UK and vice versa. The two countries will also be free...

Low-cost carriers make further gains.(Brief article)
June 27, 2006... The market share of low-cost carriers in Europe soared in the two months to the end of May, reaching a record 16.3% of all IFR flights, according to a market update by Eurocontrol. The organisation further states that in the past 12 months,...

ACE fortifies Air Canada.
June 27, 2006... No takeover has been mooted, but ACE chairman Robert Milton is worried about that prospect because he believes ACE shares are substantially undervalued. Given the known value of ACE assets that have been partially floated and the likely value...

Briefing.(settlement between airlines)(Brief article)
June 27, 2006... Canadian spy case settled Air Canada? widely publicised lawsuit against WestJet for corporate espionage is over. The rival airlines settled the case with WestJet? formal apology, reimbursement of Air Canada? legal expenses, and a C$10.5 million...

Hammer still to fall in Varig auction.(bankruptcy in Varig S.A)(Brief article)
June 27, 2006... The much-heralded auction that was supposed to save Brazilian flag carrier Varig proved to be inconclusive. The only bid, from an employee group called TGV, was well below the $860 million minimum. With only $125 million in cash, the bid...

Delta eyes Boeing 787 buy to boost expansion plans.(Delta Air Lines Inc.)(Brief article)
June 27, 2006... Delta Air Lines moved ahead with its ambitious plan to become the largest global airline between the USA and destinations in Europe, India, and Israel by this summer. With new non- stop flights between New York? JFK and both Mumbai in India...

Unions target executive pay deals.(US airline labour)(Professional Flight Attendants Association)(Northwest Airlines)(Brief article)
June 27, 2006... Forced into further pay and work-rule concessions, US airline labour is moving to a new campaign tactic: not to strike or take any other type of industrial action, but to highlight executive pay and perks in what it is calling the ?Executive...

Love Field war is over.(environmental aspects )(Brief article)
June 27, 2006... After nearly two years of intense campaigning by Southwest to end the Wright Amendment limits on Love Field operations ? limits set in 1979 to shield the then-new Dallas/Fort Worth hub ? the cities of Dallas, Forth Worth, the DFW Airport, DFW?...

Briefing.(United Airlines lay off non union managers)(Northwest Airlines pilots union leaders ousted chairman Mark McClain)(US carriers increase revenues)
June 27, 2006... In brief United drops more staff United Airlines will lay off some 1,000 of its 9,400-plus non-union managers this year, chief executive Glenn Tilton told investors. It cut more than 2,000 mid-level employees and about 20,000 other...

A glimmer of blue in Open Skies.(mediation)
June 27, 2006... European Commission (EC) president Jose Manuel Barroso went so far as to raise hopes in a joint meeting with President Bush at a late June summit in Vienna, saying that he believed a deal could be finalised ?by the end of the year?. This is...

MAS takes radical steps to downsize.
June 27, 2006... The cash-strapped national carrier has for months been working on a wide-ranging restructuring intended to return it to profitability, and extensive job cuts were meant to have started in the second year of the three-year plan. They were...

Malaysia starts construction drive.(Brief article)
June 27, 2006... Just months after opening Asia? first airport terminal specifically for use by low-cost carriers at the capital Kuala Lumpur, Malaysia is building a similar facility at Kota Kinabalu airport in the east of the country. Work began recently...

Air Deccan IPO falls flat.
June 27, 2006... Rapid growth in India? air transport market failed to help fast-growing Air Deccan with a much-anticipated initial public offering (IPO), which brought in far less than expected. The IPO closed in May with the share price set at the low end...

Cathay breaks down Chinese walls.(Cathay Pacific Airways Ltd. in takeover of Hong Kong Dragon Airline Ltd. and cementing with Air China)
June 27, 2006... Cathay has been seeking to expand its limited presence in mainland China for some time with little success, and its groundbreaking deal includes the takeover of fellow Hong Kong-based carrier Dragonair. This will give it instant access to more...

Briefing.(Air Nauru cancels flight plan, Air Pacific profit fall, Qantas cleared to fix fares )(Brief article)
June 27, 2006... Air Nauru cancels flight plan Air Nauru has decided not to replace its only aircraft ? a Boeing 737 that US Eximbank repossessed last December. Two other airlines have taken over several routes that Air Nauru once served, leaving it too...

Qantas move worries staff.(Qantas Airways Ltd.)
June 27, 2006... Its latest move stems from the closure of wholly owned subsidiary Australian Airlines. Australian stopped flying under its own name at the end of June, but Qantas is wet-leasing Australian? Boeing 767s repainted in Qantas livery and operated by...

Playing patience.(trends in the aircraft industry)
June 27, 2006... Despite protestations from the manufacturers that orders are not saved up for shows, there is the inevitable speculation of what may be announced at the Farnborough International airshow in mid-July. But before the industry gathers for its...

Aerolineas Argentinas.(shuffles executives Antonio Mata, Jose Maria Llodra, Esteban Maccari)(Brief article)
June 27, 2006... Aerolineas shuffles top executive posts Changes are underway in the senior ranks of Aerolineas Argentinas as the airline smooths relations with its militant unions and tries to secure government approval of its accounts so that it can...

Spirit Airlines.(adds chief executive officer duties to Ben Baldanza)(Brief article)
June 27, 2006... Spirit adds to Baldanza workload Spirit Airlines added chief executive officer duties to Ben Baldanza? remit following the retirement of investor Jacob Schorr as CEO. Baldanza has been president and chief operating officer since...

Liat.(Airlines appointed Mark Darby )(Brief article)
June 27, 2006... Darby? Caribbean plunge Senior Unisys consultant Mark Darby is joining Caribbean inter-island carrier Liat as its chief executive, replacing Garry Cullen, who is returning to his native country to become the chief executive of fast-growing...

The Great Wall falls.(trends in the airlines industry)
June 27, 2006... Cathay? great coup stands to begin a radical shakeup of the overall China air service market. On first read it may seem largely to address the needs of Hong Kong? de facto flag carrier and the future of Dragonair, but its implications go far...

Briefing.(airlines management)
June 27, 2006... It is alleged that SAS Braathens gained access to yield-sensitive data from low-cost competitor Norwegian through the Amadeus global distribution system (GDS). Norwegian? chief financial officer Frode Foss claims that SAS Braathens was able to...

Ryanair renews its court battles with Air France.(cases against airlines)
June 27, 2006... Irish low-cost carrier Ryanair has filed a complaint with the European Commission and French civil courts against Air France/KLM in response to the latter? decision to take legal action against Marseilles airport? new low-cost terminal, and...

Briefing.(easyJet Airline Company Ltd. expanded services)(European Union rules)(Brief article)
June 27, 2006... EU blacklist grows Europe has placed operating restrictions on further airlines to its blacklist, bringing the total number of operators to almost 180. This includes another 81 operators in the African states of Democratic Republic of Congo,...

Bulgaria Air privatisation is back on.(Austrian Airlines, Hemus Air, Ilyushin Finance Co. in tender with Bulgaria Air)(Brief article)
June 27, 2006... Bulgaria? privatisation agency called a tender in June for the sale of flag carrier Bulgaria Air. The agency will hold a two-stage public tender for 99.99% of the capital, with the government retaining a ?golden share? to safeguard the national...

EU ruling threatens transatlantic travel.(European Union)
June 27, 2006... The Court of Justice earlier found that the agreement had no legal basis, leaving the European Commission to find an alternative legal basis to save the agreement, and avoid potential chaos. The controversial agreement signed in Washington in...

Sharp card game.(credit card payment )
June 27, 2006... Any time money changes hands, any time a piece of paper or a digital transaction representing money takes another step, someone takes a small piece of the action, a small slice of the cash pie. So every time an airline sells a ticket, the...

Highlife.(Company overview)
June 27, 2006... It is early evening and a sleep-deprived Vijay Mallya, founder of fledgling Kingfisher Airlines and chairman of Indian conglomerate UB Group, is on a conference call at his New Delhi home. Under discussion is a bid for French Champagne producer...

Forum.
June 27, 2006... July 2006 16 The Airline Strategy Awards London, UK Contact Lucy Flint Tel +44 208 652 3155 e-mail lucy.flint@rbi.co.uk website www.strategyawards.com 18-21 Farnborough 2006 Farnborough, UK Contact SBAC Tel +44 207 227 1043 website...

Slot shake-up.(rules regarding slot allocation in airports)
June 27, 2006... At first sight, the current system for administering take-off and landing slots in Europe looks attractive to the continent? aviation users: slots are vital to an airline? operation, yet they are doled out for free by slot co-ordinators across...

Industry reaches the peak.(trends in the airlines industry)
June 27, 2006... ?It? time to sell, ladies and gentleman,? was the blunt message to IATA? 62nd AGM in Paris from David Bonderman, founding partner of Texas Pacific Group, the airline investment vehicle that has helped revive or launch carriers like Continental...

ATM reform is ?embarrassing?(air traffic management)(Giovanni Bisignani of International Air Transport Association)(Brief article)
June 27, 2006... IATA director general Giovanni Bisignani has vented frustration at the pace of European airspace and air traffic management reform, and the expenses airlines are shouldering as a result. Speaking during its recent annual general meeting in...

Sanctions dog Iran and Syria.(Iran Air and Syrian Arab Airlines upgrading their aircrafts)(Brief article)
June 27, 2006... David Kaminski Paris Sanction-hit flag carriers Iran Air and Syrian Arab Airlines are each struggling to address modernisation of their ageing fleets, admitting that the US-imposed restrictions are forcing them to adopt uneconomical...

Briefing.
June 27, 2006... Jala wants joint fuel buying Malaysia Airlines chief executive Idris Jala floated the idea of IATA becoming involved in joint fuel buying to help carriers achieve better economies of scale at the association? annual meeting in Paris. IATA...

Jet-Air Sahara merger falls apart.(Air Sahara, JetAir)(Brief article)
June 27, 2006... India? biggest-ever airline takeover deal has collapsed, with both sides arguing over who has the right to millions of dollars in frozen accounts that were to have been used to fund the acquisition. Domestic market leader Jet Airways said...

BA in price-fixing probe.(Office of Fair Trading investigating British Airways PLC)(Brief article)
June 27, 2006... The UK? Office of Fair Trading (OFT) says it is conducting both criminal and civil investigations, adding that its investigation is at an early stage. ?No assumption should be made that there has been an infringement of competition law,? it...

The heat is on.(Airlines are introducing carriers to Caribbean )
June 27, 2006... The Caribbean has become truly hot, luring US airlines, from troubled network majors to robustly expanding low-cost carriers. It offers a reliable mix of compelling holiday destinations and strong expatriate ethnic traffic visiting home. But...

Toughtarget.(International Air Transport Association)(airlines implementing electronic ticketing systems)
June 27, 2006... The timer on the home page of IATA? website is relentlessly counting down. It shows the exact number of hours, minutes and seconds until the deadline for carriers to switch to 100% e-ticketing by the end of 2007 as part of the association?...

trendssurvey.(trends in the airlines industry)
June 27, 2006... This year? Airline Business/SITA IT Trends Survey should give both chief executives and chief information officers something to smile about. There are clear signs that the industry has grasped the opportunities offered by new technology ?...

Forum.
June 27, 2006... The Airline IT Trends Survey 2006*********************Page 42 Website dynamic packaging brings benefits to airlinesPage 50 Will IATA member carriers meet the e-ticketing deadline?Page 54 SPECIAL REPORT This year? IT Trends...

Webpower.(AirTran Airways Inc.)
June 27, 2006... It is startling to learn that AirTran Airways, the US low-fares carrier with over $1.4 billion in annual revenues, employs just one person to run its website. ?Her job is to run the website for the customers,? says Tad Hutcheson, AirTran?...

Saudi Arabian Airlines.(appoints Khalid bin Abdullah Al-Molhem)(Brief article)
June 27, 2006... Al-Molhem takes over at Saudi Arabian The former president of Saudi Telecom (STC), Khalid bin Abdullah Al-Molhem, has taken over as director general at Saudi Arabian Airlines, replacing Dr Khaled Ben-Bakr, who has stepped down as head of...

Forum.(Fernando Conte is appointed by an airline company)(Klaus Froese joins Lufthansa CityLine)(Evelyn Tan is chief financial officer of Tiger Airways.)(Brief article)
June 27, 2006... Iberia chairman Fernando Conte is to assume the post of chief executive in a top-level reorganisation that follows the resignation of chief executive Angel Mullor in April. Long-serving Lufthansa man Klaus Froese has become the new head of...