Airline Business articles from May 2005

Airline Business archives from May 2005

Carriers eye second-tier airports.(low cost airlines introduction)
May 1, 2005... Asia-Pacific low-cost airlines have begun serving secondary airports in what observers see as a natural development in line with similar moves in Europe and North America. However, unlike in Europe and North America, where low-cost airlines...

TSA heads for major shake-up.(Transportation Security Administration)(Brief Article)
May 1, 2005... The Bush administration is moving toward a major restructuring of the much-criticised Transportation Security Administration (TSA) in a shake-up that has already forced out the head of the unit. This was the TSA's third resignation since...

Air Canada's capital plan.
May 1, 2005... The airline had planned only to seek C$600 million, but demand was so strong that it decided at the last minute to boost its mixed debt and equity offering by 20%, which it quickly sold. Overallotment options could push the final total as high...

Delta moves to outsource.(Delta Air Lines Inc.)
May 1, 2005... Delta joins the dominant industry trend with this outsourcing move, which elsewhere has fuelled labour objections. Delta's TechOps unit, though, is not unionised. It had become a profit centre by gaining contracts from other carriers, but will...

Latin unions raise their profile.(Cintra`s airline sale opposition)(Brief Article)
May 1, 2005... The assertiveness of Latin American labour unions is illustrated by recent events in Mexico and Argentina. The Mexican association of airline pilots retained strategy consultancy Roland Berger to evaluate the pros and cons of Cintra's planned...

In brief.(United States. Federal Aviation Administration )(Brief Article)
May 1, 2005... O'Hare reductions extended The FAA has extended voluntary flight reductions at Chicago O'Hare until November and may keep them in place until April 2008. The FAA estimates that maintaining limits on the number of arrivals until then would...

The pain of leaving the legacy behind.
May 1, 2005... United Airlines' long, slow journey toward an exit from bankruptcy reorganisation has stumbled over high fuel costs. As it seeks still more labour concessions, the once grand network airline is setting an unfortunate but likely precedent to...

In brief.(Cintra is launching low cost carrier)
May 1, 2005... Cintra launches Click Mexico's first low-cost carrier expects to start flying in July with the launch of Click Mexicana. Formed as part of the Mexicana group, Click will use Aerocaribe staff, 10 Fokker 100s acquired from Mexicana, and nine...

Labouring the point.
May 1, 2005... With labour costs constantly at the top of the agenda for most carriers, we make no excuses in returning to issues of productivity and in particular of fleet and labour productivity. From previous articles on this subject it is probably clear...

Air Deccan raises cash.(Brief Article)
May 1, 2005... Fast-growing Indian low-cost carrier Air Deccan has completed a cash-raising exercise that has given it another $40 million to support its expansion. In December Air Deccan agreed to sell a sizeable minority stake to a group of new local and...

Haneda builds fourth runway.(airport construction in Japan)(Brief Article)
May 1, 2005... Construction of a long-planned fourth runway at Tokyo's Haneda airport is due to begin next year for completion in 2009, allowing for more international services from the busy facility. Japan's Ministry of Land, Infrastructure and Transport has...

China and India agree liberal bilateral.
May 1, 2005... The agreement between the fast-growing economic powerhouses was signed during a state visit to India by China's leadership on 11 April. It allows for many new passenger and cargo services, not only between the two countries, but beyond. Air...

Market opens for Indian cargo.(Brief Article)
May 1, 2005... India's limited air cargo market is finally showing signs of opening up, with Air India and Indian Airlines seeking to begin freighter operations and domestic express freight company Blue Dart coming under new ownership. India's air cargo...

Foreign low-cost operators restricted.
May 1, 2005... The Indonesian Directorate General of Air Communications (DGAC) revealed late in March that it would bar foreign low-cost carriers from launching new services to the capital Jakarta, as well as Denpasar (Bali), Medan and Surabaya. It admitted...

Trans-Tasman rivalry heats up.(airlines competition)(Brief Article)
May 1, 2005... When Pacific Blue launches mid-May flights between Auckland and Australia, it will aggravate an over-heated market where several airlines admit they are already losing money. The Australia-New Zealand route has always been busy, but competition...

Patrick wrests control of Virgin Blue.(Virgin Blue Airlines)
May 1, 2005... Patrick's bid, launched in late January, appeared in March to be failing several weeks before it was set to close. But a warning over Virgin Blue's possible profit fall next year caused the share market price to drop below Patrick's offer....

Acton goes to SAA.(South African Airways )( Kyrl Acton )(Brief Article)
May 1, 2005... Former Aer Lingus, LanChile and Unisys executive Kyrl Acton has been recruited by South African Airways (SAA) as its new chief operating officer. His appointment will bring stability to the carrier's management team following a series of...

In brief.(appointments)(Brief Article)
May 1, 2005... Atlas Air Worldwide Holdings, the parent company of US cargo operators Atlas Air and Polar Air Cargo, has appointed Michael Barna as its new senior vice-president and chief financial officer, replacing David Lancelot who resigned in September....

Swiss overhauls sales.(appointments)(Brief Article)
May 1, 2005... An overhaul of its sales and marketing division has seen Swiss corporate development chief Christoph Beckmann assume all marketing responsibilities and join the board. Chief executive Christoph Franz will oversee its sales organisation. Oliver...

Valuair chief quits.(Sim Kay Wee )(Brief Article)
May 1, 2005... Sim Kay Wee, chief executive of Singapore's Valuair, has resigned after just over eight months in the job. Sim cited "personal reasons" for his decision to depart from the airline, which only started operating in May last year. Sim joined...

Mayrhuber to stay at Lufthansa until 2010.(Wolfgang Mayrhuber)(Deutsche Lufthansa AG)(Brief Article)
May 1, 2005... In keeping with its tradition of having long-serving leaders, Lufthansa's supervisory board has extended the term of chairman and chief executive Wolfgang Mayrhuber by five years to the end of 2010. The move is a major vote of confidence in...

India's promise.(Indian Government Transportation policy)
May 1, 2005... After so many false starts, India's government looks ready to set its air transport sector free. New low-cost competitors are lining up to enter the domestic market, while new international freedoms are being added at pace, including open skies...

Special report Regionals &?low cost.(Airlines rankings)(Brief Article)
May 1, 2005... 44 At the controls Cash-rich regional players are in the driving seat as mainline carriers focus on restructuring and cost-cutting. 46 Show down Europe's regional airlines are no longer the distinct niche they once were as the boundaries...

Belgian carriers finally tie the knot.(SN Brussels Airlines)
May 1, 2005... After some four years of talks, the takeover of Virgin Express by the shareholders of SN Brussels has brought the two home-based carriers at Brussels International airport under common ownership. Both SN, formed from the ashes of failed Sabena...

Decision time at Aer Lingus.(Aer Lingus Group PLC)(Brief Article)
May 1, 2005... The state-owned airline made an operating profit of [euro]107 million ($133 million) on revenues of [euro]906.8 million, boosting its operating margin to nearly 12%, a level that would be the envy of nearly every European flag carrier....

Bids come in for Olympic.(Olympic Airlines)(Brief Article)
May 1, 2005... The latest attempt by the Greek government to sell loss-making Olympic Airlines has seen it receive five bids for the carrier. It resumed its efforts to sell Olympic late last year. The bidders that have made binding offers were all groups that...

In brief.(SkyTeam LHR, Ryanair Holdings PLC)(Brief Article)
May 1, 2005... SkyTeam LHR options open Senior Air France-KLM managers say it is premature to presume that SkyTeam carriers will move to London Heathrow's Terminal Four in 2008. Heathrow operator BAA has made clear it sees Terminal Four as the logical choice...

Air France-KLM pays off.(markets)
May 1, 2005... The two carriers, which merged in spring last year, say that their international sales strategy will see savings of [euro]29 million ($36 million) in the 2005/06 financial year, ahead of a predicted [euro]26 million figure. In four years time,...

Lufthansa refocuses on Central Europe.(Deutsche Lufthansa AG, bmi)
May 1, 2005... Lufthansa has signalled that its strategic outlook has shifted to its Central Europe heartland as it puts its 30% stake in UK-based bmi in the shop window and completes the takeover of Swiss. Speaking at the airline's annual general meeting in...

Movingin.(airlines)
May 1, 2005... "LAN is looking 24 hours a day for new opportunities" Enrique Cueto chief executive LAN Group Lan group chief executive Enrique Cueto wishes no-one ill. But as long as Latin America protects its weak airlines, he will ensure that LAN continues...

Efficiencydrive.(airlines)
May 1, 2005... A few years from now the industry may look back at IATA's 60th annual general meeting (AGM) in Singapore last year as a watershed. At the June 2004 gathering, IATA director general Giovanni Bisignani spoke of how airlines, having survived an...

Second time lucky.(airlines )
May 1, 2005... If at first you don't succeed try, try again. On the surface, this is what appears to be happening in India, where the domestic market is undergoing a second wave of liberalisation following a difficult initial experience in the 1990s. But...

A regular guy.(Bill Ayer, Alaska Airlines Inc.)(Brief Article)
May 1, 2005... In May 2003, when Bill Ayer took over the top posts at Alaska Airlines and its parent, Alaska Air Group, one of his first steps was to eliminate reserved parking for company officers at its lake-side headquarters. Ayer then moved to cut his...

Spirit Alaska.(Alaska Airlines Inc.)
May 1, 2005... Alaska airlines chief executive Bill Ayer runs a carrier that prides itself on the personal touch. So much so that the symbol of the company is The Eskimo, a character who has no name but who enjoys a loyal following. At Alaska, The Eskimo...

Events diary.(Calendar)
May 1, 2005... May 8-10 13th International Airline CEO Conference Miami, USA Contact AvNews Tel +1 305 876 9339 website www.ceoconference.com 10-12 IATA Fuel Trade Conference 2005 Cape Town, South Africa Contact Luc Tousignant Tel +1 514 874 0202 x3454...

Reforming the model.(cost efficiency improvements for airlines)
May 1, 2005... A sense of urgency and speed of implementation is now what is required from airports and air navigation service providers (ANSPs) in terms of cost efficiency improvements for their airline users. There is little doubt that the words cost...

Highlights Airline Strategy Awards 2005.
May 1, 2005... 17 July London, UK Airline Business is now seeking nominations for this year's Airline Strategy Awards -- a unique set of industry awards launched by this magazine to recognise excellence in boardroom leadership. Launched at the start of...

Highlights.(airline IT summit)(Brief Article)
May 1, 2005... Airline IT Summit 2005 23-24 June Brussels, Belgium Well over 200 senior airline and industry IT executives are again expected to attend this year's Airline IT Summit, jointly hosted by SITA and Airline Business. The summit has become a key...

Simplifying the Business Regional Events.(airlines)(Brief Article)
May 1, 2005... May/June As part of its Simplifying the Business (StB) campaign, IATA is running a series of conferences around the globe to explain the project and the implications for carriers (see related feature on page 70). The two-day events will...

Building up Routes.(airline network)
May 1, 2005... 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 airport route developers alike. The...

IATA hopes for Narita charges cut.(International Air Transport Association, Tokyo Narita)(Brief Article)
May 1, 2005... IATA is hoping its long-running campaign to persuade the most expensive airport in the world, Tokyo Narita, to cut landing fees will bear fruit shortly. The association says there are reasons to be confident because Narita's management has said...

In brief.(Oneworld)(Brief Article)
May 1, 2005... Oneworld seeks new carriers The oneworld alliance says that it is actively looking for new members after four years of focusing on the consequences of the industry downturn. The alliance, the only one of the big three groupings where its...

US-EC in opens skies stalemate.
May 1, 2005... The two sides are essentially back where they were last June when the European Commission (EC) rejected a US proposal that would have allowed European airlines to fly across the Atlantic from any European airport, not just from the airline's...

FAA's cost conundrum.(Federal Aviation Administration)
May 1, 2005... The latest FAA aviation forecast -- the agency's 30th -- predicts that US passenger traffic, which dipped sharply after 2000, will make a complete return by the end of 2005 and continue expanding at a 3.4% average annual growth rate over the...

Showdown.(regional carriers)
May 1, 2005... "Ryanair is the biggest regional carrier in Europe" Rigas Doganis airline consultant Regional carriers are having to adopt a variety of new strategies as they battle to survive increasingly frequent incursions into their territory by low-cost...

Gamechanger.(JetBlue Airways Corp.)
May 1, 2005... From the point of view of US majors, JetBlue Airways and other lower-cost carriers have already wreaked havoc in medium- and long-haul markets with heavy traffic. They have been increasing market share with lower fares and reducing yields and...

Globalreach.(airlines)
May 1, 2005... If you thought they were growing incredibly fast, you were right. The first ever Airline Business low-cost airline ranking shows that the top 25 budget carriers by passengers carried saw volumes up by 23% last year. In the USA and Europe,...

controlsAt the.(regional airlines)
May 1, 2005... Regional carriers long were servants if not outright vassals of their mainline partners, but that world is now turned upside down. As regionals amass a solid record of earnings and field some of the industry's strongest management, they are far...

Regionals ? & low cost.(airlines)(Brief Article)
May 1, 2005... The rise of the low-cost sector has created fresh challenges, not only for the mainline airlines, but also for the regionals that feed their networks. For the first time, we bring together both of these fast-growing segments into a single...

Fullcircle.(airlines)
May 1, 2005... The last rites have been read over the turboprop several times since the emergence of the small regional jet in the early 1990s. But each time, the ministrations have proved to be premature and the patient recovered. The latest revival began...

Passenger rights in the dock again.(European Region's Airline Association, International Air Carrier Association )(Brief Article)
May 1, 2005... In the latest twist to the European Commission's (EC) unpopular denied boarding legislation, the European Region's Airline Association (ERA) and leisure carrier body the International Air Carrier Association (IACA) have separately lodged a...