Airline Business articles from May 2002

Airline Business archives from May 2002

Airline IPOs make strong debut.(Brief Article)(Statistical Data Included)
May 1, 2002... JetBlue Airways' initial public offering hit the New York markets in a big way, also helping to spark interest in the round of regional airline flotations set for this spring. The first of these, the Continental Airlines ExpressJet flotation,...

Losses decline but profits stay elusive.(Brief Article)(Statistical Data Included)
May 1, 2002... The first quarter financial results for US carriers were an improvement over the previous quarter, but still among the worst ever recorded. The USmajors ended the March quarter showing a loss of some $2 billion before special items and...

Air Canada jazzes up its regionals.(Regional carriers merged into one under the name Jazz)(Brief Article)(Statistical Data Included)
May 1, 2002... Jazz is the new name for Air Canada's four regional carriers, which are merging into one unit as a possible step towards sale. Air BC, Air Nova, Air Ontario, and Canadian Regional were legally integrated on 1 January 2000, but have been...

Aerolineas premature in unveiling details of proposed Latin alliance.(Brief Article)
May 1, 2002... Six of Latin America's largest carriers have agreed to the concept of forming an alliance called "Andean Wings". But it remains unclear how close they really are to an agreement. The heads of Aerolineas Argentinas, LanChile, Varig, TAM...

USloan aid focuses minds on reform.(Air Transportation Stabilization Board)(Brief Article)
May 1, 2002... The USgovernment's Air Transportation Stabilization Board may be working after all, even if its stabilising effect has less to do with the loans that it has approved, than the very fact of its existence. So far, the Board has only offered a...

In brief.(Brief Article)
May 1, 2002... Regional jets for USAirways US Airways and its Air Line Pilots Association union made final a scope-clause revision that would increase the number of US Airways Express regional jets from 70 to 140 with 50 seats or less. The agreement came...

In brief.(Brief Article)
May 1, 2002... United on Northwest turf United Airlines has entered a major battle with Northwest Airlines on the lucrative route between Chicago O'Hare, United's home, and the twin cities of Minneapolis/St Paul, Northwest's hometown. The hourly flights...

In brief.(Brief Article)
May 1, 2002... Argentina faces downgrade Diplomats hope to head off Argentina's downgrade to Category 2 status under the FAA's safety assessment programme.?If the FAA goes ahead, Southern Winds would be hardest hit. It has already leased two Boeing...

Orbitz under scrutiny as sales soar.(Department of Transportation investigates)(Brief Article)
May 1, 2002... Orbitz, the airline-backed online travel distribution portal, remains under government scrutiny for possible anti-competitive behaviour and faces a July deadline for a key report on its operation by the Department of Transportation (DoT). ...

A reversion to type?(analysis of the airline market)(Brief Article)
May 1, 2002... The industry may have started to scent an upturn but investors will not be impressed if airlines let loose on capacity, warns Chris Tarry of Commerzbank. The phrase "getting back to normal" has started to be banded about in the last few...

CNAC ups profile with Air Macau buy.(China National Aviation Co.)(Brief Article)
May 1, 2002... Hong Kong-listed aviation holding firm China National Aviation Company (CNAC), the main shareholder in Dragonair, is expanding its investment base by buying Air Macau from its parent. CNAC, which is controlled by Beijing-based China...

JAL, JAS to pay slots price for merger.(Japan Airlines and Japan Air System are likely to be forced to give up valuable slots at Tokyo's busy Haneda airport)(Brief Article)
May 1, 2002... Japan Airlines (JAL) and Japan Air System (JAS) are likely to be forced to give up valuable slots at Tokyo's busy Haneda airport to win approval for their merger, which has raised regulatory concerns. The Japanese fair trade commission...

Royal Brunei faces up to market realities as state ends handouts.(Royal Brunei Airlines admits financial difficulties, engaged in cost-cutting measures)(Brief Article)
May 1, 2002... Royal Brunei Airlines has for the first time admitted financial difficulties and has acted by laying off foreign managers, freezing salaries and making other internal cuts. The carrier, which for years has lost money although traditionally...

Carriers move to raise cash.(China Southern Airlines and Hainan Airlines)(Brief Article)
May 1, 2002... Two fast-growing Chinese carriers, China Southern Airlines and Hainan Airlines, are seeking to sell more shares domestically and overseas to help fund new aircraft purchases and ensure they continue to grow at rapid rates. Guangzhou-based...

The battle of Christchurch.(Qantas Airways boosts service to Christchurch, New Zealand)(Brief Article)
May 1, 2002... The campaign by Qantas Airways to boost its New Zealand presence has focused on Christchurch - New Zealand's second gateway. The Australian flag carrier plans to replace capacity between Christchurch and Australia dropped by Air New Zealand...

[0] In brief.(airline industry news briefs)(Brief Article)
May 1, 2002... Qantas adds more 717s Qantas Airways is to lease six more Boeing 717-200s and will establish an operating base for the aircraft in Hobart, Tasmania. The carrier is acquiring the 717s from unspecified lessors, and will take delivery of all...

Transport giant buys half of expanding Virgin Blue.(Patrick Corp.)(Brief Article)
May 1, 2002... Sir Richard Branson's decision to sell half of Virgin Blue to Australian transport giant, Patrick Corporation, raises as many questions as it answers, especially over the carrier's ability to stick to its low-cost model as rapid expansion...

Alitalia doubts persist in spite of cash injection.(Brief Article)(Statistical Data Included)
May 1, 2002... Italian flag carrier Alitalia looks to have secured its short-term future after banks agreed to underwrite a new share issue. But concerns about its long-term prospects remain after a deal was struck with unions which will mean that a...

SAS trims short-haul network in bid to stave off low-cost competition.(Scandinavian Airlines System)(Brief Article)
May 1, 2002... SAS is overhauling its short-haul network in a bid to cut costs and tackle the problem of how to compete with the no frills sector. The carrier is axing seven routes completely for this year's winter season, and transferring another six to...

Brussels clears way for TAPloan.(Brief Article)
May 1, 2002... The European Commission has cleared a deal which will see Portuguese flag carrier TAPAir Portugal remortgage four Airbus A340s to secure a bank loan. The c40 million ($35.5 million) deal with Bank of Tokyo Mitsubishi was much needed after the...

Mainline carriers enter fares fray to meet threat from low-cost airlines.(Brief Article)
May 1, 2002... British Airways, bmi British Midland and SAShave become the first mainline carriers to modify their fare structures in response to the threat from the no-frills competition. BA, followed swiftly by bmi, scrapped restrictions and reduced...

Lufthansa eyes ATC buy to aid home-market growth.(air traffic control provider DFS)(Brief Article)
May 1, 2002... Lufthansa would "seriously consider" buying German air traffic control (ATC)provider DFS if it were to be privatised, as part of a strategy to become more influential in infrastructure expansion and modernisation in its capacity-constrained...

[0] In brief.(airline industry news briefs)(Brief Article)
May 1, 2002... Cargolux back in the black Despite tough market conditions last year, Luxembourg-based freight carrier Cargolux managed a net profit of $22 million on revenues of $731 million in 2001, compared to a net profit of $32 million and revenues of...

In brief.(Brief Article)
May 1, 2002... Stelios to step down Stelios Haji-Ioannou, chairman of UK low-fare operator easyJet, is to step down next year in order to pursue other business interests. Haji-Ioannou, who founded the airline with two Boeing 737s back in 1995, will be...

Opodo reports heavy traffic.(online travel portal)(Brief Article)
May 1, 2002... At the same time as it was launching its French site, online travel portal Opodo, owned by nine of Europe's largest carriers, revealed traffic figures for its first sites in the UKand Germany. Since starting up in December, statistics from...

Routes.(Brief Article)
May 1, 2002... Lufthansa increase Lufthansa is restoring its Frankfurt-Phoenix route to a daily service, and upping its Frankfurt-Nagoya service to five times a week. Both services were cut to three times a week after 11 September. Also from June,...

Evergreen.(EVA Air)
May 1, 2002... optimism Kitty Yen's relaxed style belies tough business instincts - and EVA Air's new president will need to call upon them if she is to pull Taiwan's second carrier back into profitability EVA Air president Kitty Yen knows how to...

New.(Brief Article)
May 1, 2002... focus Andr? Dos? and the management of recently launched Swiss are confident they can avoid the pitfalls that caused its predecessor's demise When flight LX 2991 departed Basle for Zurich early on 31 March, it also marked the official...

more.(airlines debate how to deal with food service)
May 1, 2002... ? Airlines are seeking to reinvent their short-haul onboard service with modern, branded food and save money at the same time Automotive manufacturers love to roll out their concept cars at motor shows to whet the public's appetite and...

At.
May 1, 2002... odds When insurers announced they would cancel war risk cover for airlines in the week after 11 September, it opened an impassioned debate which is still to be resolved On 17 September, the world's airlines were trying to regroup from...

Brussels seeks to take a seat at ICAO.(International Civil Aviation Organization)(Brief Article)
May 1, 2002... The European Commission (EC) has taken the first steps in a process which it hopes will see Europe take a seat on the ICAO Council. This is the latest sign that Brussels is determined to increase its influence as a regulator on the world stage....

In brief.(airline industry news briefs)(Brief Article)
May 1, 2002... Mexico-Japan codesharing Aeromexico of SkyTeam has begun codesharing with unaffiliated Japan Airlines on flights between Vancouver and Mexico City. Mexico's other carrier, Mexicana, recently started codesharing with fellow Star Alliance...

USfare rises fade as oil price rises.(US airline air fares)(Brief Article)
May 1, 2002... The US airline industry has gone back to a time-honoured but hardly desirable old tradition:"the tug of war" between fares and oil prices, in the words of Deutsche Bank analyst Susan Donofrio. The tug of war is stuck in the trench lines of...

Green tax looms in Europe.(European Commission studies possiblility of emission-based charging)(Brief Article)
May 1, 2002... The European Commission (EC) may have given up on the idea of a kerosene tax, but a new study commissioned by Brussels may well propose a more workable alternative - emissions-related charging After spending the last two years in the...

A very visible transportation secretary.(Norm Mineta profile)(Brief Article)
May 1, 2002... When the incoming administration of new US President George W Bush asked Norm Mineta to take over the Transportation Department, they gave him one mandate: keep aviation off the front pages of the nation's newspapers or at least below the fold...

Labour.(scope clause causes contract negotiation problems for United States regional carriers)(Statistical Data Included)
May 1, 2002... pains Contract negotiations and the scope clause issue pose some tough challenges for the USregionals , but the sector seems to have retained momentum despite last year's crisis Labour relations loom especially large this year on two...

Taking.(European airlines acquire regional affiliates)(Industry Overview)
May 1, 2002... control Bucking the trend from the USA, some European majors have been buying their regional affiliates - despite warnings that costs will creep up As the US majors rush to spin off their regional affiliates, some European carriers...

Atlantic.(North Atlantic air travel market experiences reduced demand and capacity)(Industry Overview)(Statistical Data Included)
May 1, 2002... defence Capacity is due to fall steeply on the North Atlantic this summer, as carriers retreat from more marginal point-to-point markets in defence of their hubs Just as it helped set the pace in the boom years, so too the North...

Jet.(small aircraft manufacturers face economic consequences of World Trade Center and Pentagon attacks)(Industry Overview)(Statistical Data Included)
May 1, 2002... lag Manufacturers of smaller aircraft are facing a tough couple of years, with some casualties already in sight. However, most agree that the slump has bottomed out and some are already predicting that recovery will be speedier than they...

China Eastern takes stake in Wuhan Airlines as consolidation continues.(Brief Article)(Statistical Data Included)
May 1, 2002... The restructuring of China's crowded airline market is continuing with the purchase by China Eastern Airlines of a 40% stake in Wuhan Airlines. Shanghai-based China Eastern, one of China's "big three" carriers, late in March announced an...

Leadership challenge.(Airline Business launches Airline Strategy Awards)(Brief Article)
May 1, 2002... As airlines steer their way through the turbulence, a strong and focused management team is a crucial asset. It is in recognition of the central importance of industry leadership that Airline Business has launched the Airline Strategy Awards....

Qantas reveals plan for Australian Airlines aimed at tourist markets.(New low-cost airline subsidiary for overseas flights)(International Pages)(Brief Article)
May 1, 2002... Qantas has decided to launch Australian Airlines - a low-cost subsidiary slated for overseas flights. With single-class Boeing 767-300s, the new carrier's aim is to boost in-bound leisure traffic on routes Qantas cannot afford to fly. The...