Airline Business articles from March 2006

Airline Business archives from March 2006

Congress closes ranks on EU/US Open Skies plan.
March 1, 2006... Europe-USA aviation liberalisation is facing an increasingly objecting and obstructive US Congress. Concerns about possible job losses have coalesced with injured institutional pride to block an ownership, investment and control...

Air Canada cashes in.(Brief Article)
March 1, 2006... In February ACE grossed C$235 million ($206 million) by selling 19.1% of its regional airline Jazz as an income trust. The offering was four times oversubscribed by enthusiastic retail investors attracted by forecasts of an 8.75% yield. ...

Battle lines drawn in FAA fees fight.(Federal Aviation Administration)
March 1, 2006... The FAA pleads poverty every four or five years, when it goes to Congress for renewal of its basic funding structure, including ticket taxes, passenger fees, air traffic charges and a host of other income sources to pay for controller salaries,...

US carriers invade Mexico.(Brief Article)
March 1, 2006... Continental and Delta Air Lines are leading a swarm of US carriers capitalising on the newly liberalised US-Mexico bilateral. Since the two nations agreed in December to allow another carrier from each nation on cross-border routes, the US...

Briefing.(airlines)(Brief Article)
March 1, 2006... Traveller plan opposed A "FastPass" or Trusted Traveller plan to speed frequent flyers through US airport security checks faces opposition after the airlines called it "little more than a revenue source". Congress still endorses the...

Briefing.(Frontier Airlines seeking approval for flights to Canada)(LanPeru pays to promote tourism in Peru)(Air Europa's plan to buy Aeromexico)
March 1, 2006... Frontier looks north Denver-based Frontier Airlines is seeking approval for flights to Canada. If granted, it will be the first US low-cost carrier north of the border. It already serves Mexico. Calgary may be its first transborder...

Mixed message for remodelled United.(United Air Lines Inc.)
March 1, 2006... Having shed $7 billion in annual costs and $13 billion in debt and pension obligations in its 38 months of reorganisation, the airline's unit costs are now 22% below 2002 levels. The only problem, notes Cathay financial analyst Susan...

Briefing.(Air Tahiti Nui Inc.)(Brief Article)
March 1, 2006... Transpacific challenge French Polynesia's overseas airline Air Tahiti Nui aims to improve this year's performance. New chief executive Eric Pommier concedes that Air Tahiti Nui lost 2 billion French Pacific francs ($21 million) last year,...

Briefing.
March 1, 2006... Qantas courts Adam Air Indonesia's Adam Air is looking to sell a minority stake to new investors and has revealed that Australia's Qantas Airways is interested. Share sale talk began after Qantas chief executive Geoff Dixon and chief financial...

Air Canada bids for new Pacific rights.
March 1, 2006... Air Canada is proposing to launch Toronto-Los Angeles-Sydney flights in the first half of 2007 following delivery of its first Boeing 777s. With flights from other Canadian cities connecting at Los Angeles, Air Canada estimates the new route...

Embattled Virgin Blue recovers.(Virgin Blue Airlines Proprietary Ltd.)(Brief Article)
March 1, 2006... The bruising battle for control of Virgin Blue's majority owner is not slowing its recovery from two lacklustre years. When its latest financial results are announced, investors expected Virgin Blue to report a substantial boost in net...

Forum.(Eric Pommier joined Air Tahiti Nui Inc.)(Brief Article)
March 1, 2006... New chief at Air Tahiti Nui Eric Pommier has replaced Patrick Leboucher as chairman and managing director of French Polynesia's international airline, Air Tahiti Nui. Pommier, 63, a former banker, was Leboucher's expected successor....

Forum.(Don Carty joined Virgin America Inc.)(Brief Article)
March 1, 2006... Carty adds credibility to Virgin America launch Don Carty, the low-keyed Canadian who rose to the top ranks of American Airlines parent AMR only to be forced out over a bonus scheme, has returned to prominence in the airline industry,...

Forum.(Idris Jala joined Malaysia Airline System Bhd.)(Brief Article)
March 1, 2006... More moves at MAS More senior management changes are taking place at Malaysia Airlines (MAS) as new managing director Idris Jala works to restructure the loss-making carrier. Chief financial officer Low Chee Teng departed the airline...

Forum.(Sir Freddie Laker)(Brief Article)(Obituary)
March 1, 2006... The people's champion Sir Freddie Laker, who died in Miami on 10 February aged 83, is remembered by the aviation community throughout the world for his entrepreneurial acumen, his flamboyant charm, but most of all for being the "people's...

Forum.(appointments)(Brief Article)
March 1, 2006... American Airlines chief financial officer James Beer, a graduate of AMR's executive academy, has resigned unexpectedly. He is leaving to join Californian security software firm Symantec. Indian Airlines has named long-serving civil servant...

Thai AirAsia seeks new partners.(AirAsia Sdn. Bhd.)(Brief Article)
March 1, 2006... Malaysian low-cost carrier AirAsia's Thai associate, Thai AirAsia, is set for an ownership change after its Thai parent company became majority foreign-controlled. AirAsia is scrambling to finalise a deal with prospective new Thai partners to...

India keeps private focus.(Airports Authority of India)(Brief Article)
March 1, 2006... Unfazed by nationwide protests by employees of state-run Airports Authority of India (AAI), the Indian government is vowing to go ahead with the privatisation of the country's two busiest airports. Early in February the government selected...

Briefing.
March 1, 2006... Air Deccan goes public Indian low-fare pioneer Air Deccan is going public through an initial public offering (IPO) to raise funds to support its aggressive expansion. The fast-growing carrier has filed paperwork with the Securities and...

Jet Airways makes first merger move.(Air Sahara acquired)
March 1, 2006... The Mumbai-based Jet Airways board met last month and approved the acquisition of 100% of Delhi-based Air Sahara, which is wholly owned by the Sahara Group conglomerate. Specific terms are confidential, but the airline says the all-cash deal is...

New low-cost entrant set for Macau.(Air Macau, China National Aviation and Shun Tak Holdings jointly establish Macau Asia Express)
March 1, 2006... Air Macau, China National Aviation (CNAC) and Shun Tak Holdings say that after lengthy talks [degrees] which at one point included Australia's Virgin Blue [degrees] they have agreed to jointly establish Macau Asia Express. Initial funding will...

Beleaguered Alitalia gets unlikely vote of confidence.(Alitalia Linee Aeree Italiane S.p.A)
March 1, 2006... Alitalia is appealing against the decision brought by rival Air One, which argued that the flag carrier should have been excluded from the sale given its financial problems and the fact that it was the recipient of a state-backed loan. ...

Gulf Air pins hopes on strategic plan.(Gulf Air Company GSC)
March 1, 2006... The main elements of the "Smart Business, Successful Business" plan include the recapitalisation of the airline, re-equipment of the fleet, product upgrades and refurbishment of present aircraft, and investment in a range of areas across the...

Briefing.(Middle East Airlines plans to release its shares)(Brief article)
March 1, 2006... MEA prepares autumn float Lebanese flag carrier Middle East Airlines (MEA) will float up to a quarter of its shares on the Beirut stock exchange this autumn. The planned release of 20-25% of its shares, presently held by the Central Bank...

Ryanair bags new revenues.(baggage and check-in services to cost more)
March 1, 2006... Ryanair is following on the heels of low-cost competitor Flybe in introducing charges for hold baggage and internet check-in. Some mainline competitors already offer online check-in, but the moves by Ryanair and Flybe are the first in the...

Briefing.(Avion Group acquires Star Airlines)(AirBaltic moving towards all-economic service)(Oger Holding sells stake in Atlasjet Airlines)
March 1, 2006... Avion enters French market Iceland's fast-growing Avion Group has acquired French leisure airline Star Airlines. Star operates a fleet of two Airbus A330-200s and four A320s primarily on charter flights, but also serves scheduled routes to...

Inflated Paris airport charges come under fire.
March 1, 2006... In September 2005, ADP proposed a 35% increase in charges over five years, with IATA responding with a request for a 3% reduction in charges to encourage efficiency. A consultative committee then recommended a maximum increase of 11% over...

Sama to start in Saudi Arabia.(low-fare airline introduced)(Brief Article)
March 1, 2006... A new Saudi low-fare airline under the name of Sama, meaning "high flying", is seeking government approval to start flying this summer, with a leased fleet of one-class Boeing 737-300s. The emergence of competition to flag carrier Saudi Arabian...

Against clockthe.
March 1, 2006... Focus JAL Things appeared to be looking up for Japan Airlines (JAL), Asia's largest airline group, in 2004. Its finances were getting back in order after huge losses in 2003 and it was winning back domestic market share ceded to rival...

Airline Strategy Awards 2006In next month's issue of Airline Business.
March 1, 2006... march 2006 23 European Aviation Club Emissions Trading Conference Brussels, Belgium Contact Mia Wouters Tel +32 475 71 8395 e-mail mia.wouters@lafili-law.be 28-30 Airline Distribution 2006 Dublin, Ireland See page 70 for details april 2006 4-6...

Destination Dublin.(Airline Distribution 2006)
March 1, 2006... Senior executives from across the industry will gather in Dublin from 28-30 March at Airline Distribution 2006, an annual conference organised by Airline Business and UATP, to debate how far the revolution in selling and distributing that...

Don't break the code.
March 1, 2006... The possibility that the European Commission (EC) may quietly eliminate the time-tested computer reservation systems (CRS) Code of Conduct is remarkably misguided, says a group representing corporate travel departments and business travellers....

TAP Portugal looks to switch stakes.(Air Macau)(Brief Article)
March 1, 2006... TAP Portugal wants to sell its 20% stake in Air Macau to help finance the purchase of a comparable stake in Brazil's Varig. The Portuguese airline has been at the forefront of rescue efforts for Varig since before the Brazilian carrier entered...

Zealots drive down costs.
March 1, 2006... Costs, costs, costs [degrees] get them low, keep them low, then get them lower. If there were themes to emerge from the recent annual Growth Airline Conference in New York, organised by US financial consultancy Raymond James, this surely was...

Milton hits out at airline whingers.(Robert Milton, ACE Holdings)
March 1, 2006... Robert Milton, chairman of ACE Holdings, the umbrella company for Air Canada, and this year's IATA chairman, has hit out at airlines for their constant sniping at Emirates and instead has held up the Dubai-based carrier as an example to be...

Briefing.(airlines)(Brief Article)
March 1, 2006... Terra Firma buys AWAS Private equity company Terra Firma has agreed to buy Morgan Stanley's aircraft leasing arm AWAS for $2.5 billion and to assume existing liabilities. AWAS has a fleet of over 150 aircraft with a market value of $2.5...

Totalcontrol.
March 1, 2006... It does not seem plausible that a country with a population of just 800,000 and a peninsula land mass no larger than the US state of Connecticut or only a third of the size of Belgium, can support a billion-dollar airline. Yet that is just what...

Paying for extra frills.(airlines)
March 1, 2006... Within the past few weeks there have been some potentially significant changes in the European low-cost carrier (dubbed New Model Airlines because of their fundamentally different business model) sector with managements at both Flybe and...

Goodrelations.(customer relationship management)
March 1, 2006... The industry continues to walk the tightrope of cost reduction, pressure from new entrants and the need to generate more revenue at a time of falling yields. Add increased demand from customers to be treated as individuals to this mix and the...

Channelhopping.(Global Distribution Systems)
March 1, 2006... It was supposed to have been a year of revolution, a year in which a new generation of tech-savvy upstarts replaced and reshaped the old order and hastened the extinction of dinosaurs. It didn't happen. The dinosaurs in the shape of Global...

What priceloyalty?(airlines's marketing)
March 1, 2006... Loyalty programmes have long been a distinguishing feature of a full-service carrier, along with business lounges, complimentary in-flight food and entertainment and, often, membership of a global alliance. But where legacy carriers have been...

From rhetoric.(airlines)
March 1, 2006... to reality The third way [degrees] the new alternatives that threatened to uproot the world of distribution [degrees] may have become less of a rhetorical phenomenon but more of an established business reality. The two most prominent,...

Staying relevant.(usage of Global Travel Distribution Systems by Amadeus Global Travel Distribution S.A.)
March 1, 2006... David Jones, executive vice-president commercial at Amadeus, borrows from Mark Twain to illustrate his view of the future of GDSs: "Rumours of our death were greatly exaggerated." While it is almost certainly true that the sale of air tickets...

Marketing.
March 1, 2006... Carriers are exerting their recently won leverage over distribution costs with new GDS deals, flirtations with new channels and their own highly successful websites. Loyalty schemes and relationship management are moving to centre stage too as...

Clearing theair.(air traffic management)
March 1, 2006... There are few more important developments within European aviation at the moment than the attempts being made to reform and modernise the region's air traffic management (ATM). On offer is a chance to make significant improvements to three of...