Airline Business articles from May 2004

Airline Business archives from May 2004

Special report.(Brief Article)
May 1, 2004... Regionals Fresh challenges are on the horizon for traditional regional operators as low-cost carriers force markets to change. But growth remains healthy for both airline and aircraft markets, as demonstrated in this year's rankings and...

Pension dispute threatens Air Canada.
May 1, 2004... Pensions are at the heart of a dispute that threatens to wreck Air Canada's restructuring as it attempts to exit the protection of the bankruptcy court. Victor Li's Trinity Time Investments, Air Canada's would-be C$650 million ($495...

Cintra denies merger speculation.
May 1, 2004... The top management reshuffle at Aeromexico and Mexicana and a push for them to work closer together are not a prelude to merger, insists holding company Cintra. Merger speculation started in March when Arturo Barahona suddenly left...

In brief.(airlines brief)(Brief Article)
May 1, 2004... Delta losses "unsustainable" Delta Air Lines chief executive Gerald Grinstein says the US major had an operating loss of $387 million for the March quarter, compared to a loss of $470 million a year ago. "Continued losses of this magnitude...

In brief.(airlines)(Brief Article)
May 1, 2004... Jetsgo launches shuttle service In mid-April, Jetsgo, Canada's number three airline, planned to launch low-fare shuttle flights between Toronto and Montreal. The route between Canada's two largest cities is a traditional Air Canada...

Worldspan prepares to go public.(Brief Article)
May 1, 2004... Worldspan plans to go public in a $310 million offer, although the exact amounts it would retain from the transaction are far from certain. The Global Distribution System (GDS), sold by American, Delta, and Northwest airlines last year to...

Producing the measures.
May 1, 2004... Cutting labour costs has emerged as a key industry issue, with asset productivity not too far behind. Chris Tarry of CTAIRAlooks at what the performance measures reveal about the USindustry's progress. The latest reporting season has...

JAL and JAS complete merger.(Japan Air Lines Company Ltd., Japan Airlines System Corp.)
May 1, 2004... Nearly two-and-a-half years after unveiling merger plans, Japan Airlines (JAL) and Japan Air System (JAS) completed their integration at the end of March. The move marked the elimination of the 16-year-old JAS brand from the Japanese market....

Beyond rights for Australia.(Fifth freedom rights.)(Brief Article)
May 1, 2004... Fifth freedom rights beyond China and South Korea have widened for Australian carriers, but Canberra continues to resist Singapore's pressure to allow fifth freedom flights beyond Australia. When the two countries inked an aviation accord...

In brief.(Brief Article)
May 1, 2004... Cathay adds more widebodies Cathay Pacific Airways has ordered six more Airbus A330-300s and two more Boeing 777-300s, for delivery between 2005 and 2007. All of the aircraft are being bought from the manufacturers except for three A330s...

Pacific Blue eyes New Zealand.(Brief Article)
May 1, 2004... Pacific Blue, the offshore arm of Australia's Virgin Blue, says it will launch New Zealand domestic flights before year's end, but New Zealand's own airlines remain sceptical. Tony Marks, Pacific Blue's chief executive, says aircraft...

Executive appointments.(Brief Article)
May 1, 2004... Franz to head Swiss Swiss has appointed Christoph Franz, a Deutsche Bahn and former Lufthansa manager, as its new chief executive to replace Andre Dose. Franz, aged 43 and a German national, was selected from a shortlist of six candidates...

Air France-Alitalia alliance cleared by Brussels.(Alitalia Linee Aeree Italiane S.p.A.)(Brief Article)
May 1, 2004... The alliance between Air France and Alitalia is the latest to be granted a six-year antitrust immunity by the European Commission (EC). After lengthy discussions with Brussels, the two carriers have agreed to surrender up to 42 pairs of slots a...

Air France and easyJet clash.
May 1, 2004... EasyJet is to challenge what it sees as anti-competitive behaviour by Air France and French airports. The UK budget carrier, which is taking its case to the French courts, is accusing Air France of building a dominant position in its home...

In brief.(Walloon regional government in Belgium )(Brief Article)
May 1, 2004... KLM ups profit forecasts KLM is says it expects to be "well in profit" on a net income basis for the 2004 financial year ending in March. The carrier, which had previously said it expected to "approach" break-even on a net basis, put the...

Are you being served?
May 1, 2004... Customer service will prove to be the most crucial battleground in the airline market of the future, says Ron Kuhlmann, vice-president of Unisys R2A Transportation Management Consultants in California. The biggest non-story of 2004 is that...

Continental/Copa bid for Avianca.(Brief Article)
May 1, 2004... Continental Airlines is seeking to move deeper into Latin America with a bid made jointly with partner Copa Airlines for Colombia's Avianca Airlines. The bid, which is reportedly backed by Avianca's committee of unsecured creditors, would give...

In brief.(GEAircraft Engines )(Brief Article)
May 1, 2004... Boeing selects 7E7 engines Boeing has chosen GEAircraft Engines and Rolls-Royce but not Pratt & Whitney to develop powerplants for the 7E7 mid-sized widebody. GEwill develop an engine derived from its GE90 family, while Rolls-Royce will...

Future.
May 1, 2004... tense Beneath the surface of the booming USregional airline sector, there are major changes taking place that could change the future landscape On the surface, the US regional industry continues to move along nicely, but behind the...

The next.(Embraer Empresa Brasileira de Aeronautica S.A.'s growth plans)
May 1, 2004... revolution After a decade of explosive growth, the 50-seat regional jet market is starting to slow, but already manufacturers are looking ahead to fresh opportunities in the 70-100 seat classes When the new breed of small regional jets...

The way.(profile of European regional airlines)
May 1, 2004... forward Europe's regionals continue to face tough questions as they face up to the low-cost challenge Is there a future for the traditional regional airline industry in Europe? This rather stark question was the underlying theme behind...

ANZ/Qantas move closer despite stalled merger.(Air New Zealand Ltd., Qantas Airways Ltd.)(Brief Article)
May 1, 2004... While appeals are pending from the denial of their proposed alliance, Air New Zealand (ANZ) and Qantas Airways are looking at a variety of ways to co-operate that would not upset competition authorities or need regulatory approval. "We are...

Star in exclusive talks with Amadeus on IT platform.(Star Alliance partners Air Canada)(Amadeus Global Travel Distribution S.A.)
May 1, 2004... Global distribution system (GDS) provider Amadeus is locked in exclusive negotiations with Star Alliance partners Air Canada, Lufthansa and United Airlines on providing a joint IT platform after talks with the only other remaining bidder broke...

India opens door to private carriers.
May 1, 2004... India's government has finally given private airlines rights to operate international services, and the country's two main players have taken immediate advantage of the more liberal policy. Air Sahara and Jet Airways had been seeking...

United sees exit signs.(United Air Lines Inc., cases)
May 1, 2004... The fortunes of United Airlines appear to be picking up as it wins some battles in its efforts to exit bankruptcy later this year. As United forges ahead with its rebranding and marketing effort, the airline has won victories in its long...

Etihad sets out Gulf ambitions.
May 1, 2004... Abu Dhabi-based start-up Etihad has ambitious plans to establish itself as a serious player in the Gulf region despite the stiff competition already in place. Etihad, which started operations at the end of last year, is fully owned by Abu...

Qantas joins Changi's low-cost crowd.(Qantas Airways Ltd.)
May 1, 2004... The skies over South-East Asia are set to become even more crowded with new low-cost international players this year, as Qantas Airways enters the fray in Singapore. Qantas, which is launching a domestic low-fare subsidiary in Australia in...

UK airport policy challenged.
May 1, 2004... A number of protest groups are seeking a judicial review of the UK government's White Paper on long-term airport expansion that was published late last year. The challenge is being led by groups campaigning against the expansion of London...

bmi hopes to turn around by 2005.
May 1, 2004... The UK's bmi believes that its strategy of dividing its business into mainline, low-cost and regional segments will begin to pay dividends with a return to the black next year. If the market continues to pick up as it has done in the early...

Shake up for EC competition rules.
May 1, 2004... A radical shake up of European competition policy from this May will vastly increase the power of the European Commission (EC)to intervene on airline deals that go beyond Europe's borders. The changes could also see airlines increasingly...

Banking on growth.
May 1, 2004... With traffic forecast to recover strongly and runway and airspace capacity looking strained once again in the USA, the prospect of preferential pricing for air traffic services and congestion pricing may have to be addressedThe latest set of...

Back from the.(Scandinavian Airlines System)
May 1, 2004... brink After brokering a last-minute deal with unions for vital concessions, SAS Scandinavian Airlines believes it has the cost base to reinvent itself as a profitable network carrier able to repel the low-cost carrier invasion SAS...

New.(Air freight services)
May 1, 2004... lease of life? Cargo operator Atlas Air insists it will swiftly emerge from Chapter 11, but even if it does, can its current business model survive?When on 30 January Atlas Air Worldwide Holdings filed for Chapter 11...

Market.(Airlines)
May 1, 2004... barriers China's vision for a hub and spoke network across the country promised a boom for regional airlines and aircraft, but, to date, progress has been slow In the late 1990s, the Chinese government decided it wanted a US-style hub...

Down to.(Airlines)
May 1, 2004... business Alliance plans with Qantas may have stalled, but Ralph Norris is not letting that distract him from forging ahead with new initiatives and a new vision for Air New Zealand "We haven't shelved anything," insists Ralph Norris,...

In brief.(SASCargo Group )
May 1, 2004... Calin Rovinescu, the number two to Air Canada's chief executive Robert Milton, has resigned. Rovinescu, who joined Milton's team in 2000 and was made chief restructuring officer in April 2003, left as talks with potential investor Trinity...