Airline Business articles from September 2006

Airline Business archives from September 2006

JetBlue reunites with GDSs.(JetBlue Airways Corp. signs contract Galileo USA and Sabre Airline Solutions)(Brief article)
September 1, 2006... The carrier earlier rejected GDSs as too costly as it increased its web penetration. But it now has signed up with both Sabre, which it left in 2004, and with Galileo, the GDS it dumped in 2002. It did not disclose details of its five-year,...

TANS to be liquidated.(TANS Peru)(Brief article)
September 1, 2006... Peru's government has decided to liquidate air force-operated TANS, which has been grounded since January after the fatal crash in August 2005 of one of its two Boeing 737-200s. The fate of military airlines in Latin America is a rough...

Canada's Transat buys British rival.
September 1, 2006... Canada's biggest charter carrier just became bigger with the takeover of its main British rival. Montreal-based Transat, which sells vacation packages and operates 15 Airbus widebodies, has acquired London-based The Airline Seat Company, which...

Varig starts on long road to recovery.(VarigLog)
September 1, 2006... In the first fortnight after VarigLog bought its former parent as the only bidder in a second court-supervised auction, a new set of crises engulfed the airline. Specifics always vary, but the themes have been recurring throughout Varig's 15...

Majors target corporate travel sector.(American Airlines Inc. and others plan)
September 1, 2006... Several US majors plan to hit large corporate travel agencies with a $3.50 per flight segment fee unless flights are booked on specific designated, lower-cost "preferred" channels. Led by American Airlines, four major network carriers plan to...

In brief.(Northwest Airlines , Gemini Air Cargo)(Brief article)
September 1, 2006... Strike threat at Northwest Flight attendants at Northwest Airlines have rejected a contract agreed to by their union leaders. The airline is threatening to use its powers under bankruptcy court protection to force pay cuts on the workers,...

In brief.
September 1, 2006... Virgin America faces delays Faced with further delay in securing an operating certificate, Virgin America is raising extra capital and offering to lease out its new Airbus A320s to bring in cash. Led by Continental, other airlines oppose its...

EU-US Open Skies delayed again.(European Union,Open skies agreements)(Brief article)
September 1, 2006... US officials have admitted they will not be ready with their proposed framework for airline ownership liberalisation in time for the mid-October European Union (EU) Council of Ministers meeting at which the Europeans were to consider it....

New bill spells pension funding relief.
September 1, 2006... For the two carriers now in bankruptcy court reorganisation, the new bill allows a much longer time to repay deficits in its retirement schemes, adding a decade to the seven years previously allowed. It also permits them to use a significantly...

ANZ expands premium offer.(Air New Zealand)(Brief article)
September 1, 2006... Air New Zealand (ANZ) has discovered strong demand for higher-cost economy seats with more legroom and in-flight services than in standard economy. Offered at 30% above normal economy fares, ANZ claims these premium economy seats more than...

Competition heats up cargo market.(Qantas Airways Ltd,Australian Airlines Ltd.)(Brief article)
September 1, 2006... The rivalry between Qantas and Virgin Blue is expanding from passengers to air cargo. Qantas and Australia Post joint venture Australian Air Express (AAE) is boosting capacity while Virgin Blue is looking for more cargo synergies with Toll...

New Bangkok airport set to open.(New Bangkok International Airport Company Ltd.)
September 1, 2006... In July six Thai airlines operated 20 domestic passenger flights through Bangkok's Suvarnabhumi airport to test its systems. Although many observers branded it a public relations exercise to detract from the fact that the opening is long...

Disappointment over share offerings.(Air China and Japan Airlines)(Brief article)
September 1, 2006... Investor sentiment towards airlines in Asia is showing signs of weakness with disappointing share sales by two of the region's major carriers, Air China and Japan Airlines. In July, Japan Airlines - the largest carrier in the Asia-Pacific...

Malaysia considers air services deal with Singapore.(Malaysia Airline System Bhd,Singapore Airlines Ltd..)
September 1, 2006... One of Asia's most restrictive air services agreements, between Malaysia and Singapore, may be opened up to low-cost airline operations under proposals being considered by government authorities. Last year Singapore suggested the air...

Airlines lobby for airport fees shake-up.(Auckland airport,Air New Zealand)
September 1, 2006... Auckland airport's proposed fee increases have "shocked" Air New Zealand Australia has launched a review of its so-called "light-handed" regulation of airport pricing, while carriers in New Zealand are calling for a "regime change". A...

In brief.
September 1, 2006... Airbus to pay Qantas $79m Qantas Airways will receive A$104 million ($79 million) in damages from Airbus for delays in deliveries to its 12 firm-ordered A380s. The disclosure of the penalty, "which will be paid over time until the final...

Four Asian start-ups take to the skies.(Fly Asian Xpress)(IndiGo)(Jade Cargo International)
September 1, 2006... Four new carriers launched at the beginning of August, namely Fly Asian Xpress in Malaysia, ANA&JP Express in Japan, IndiGo in India and Jade Cargo International in China. Fly Asian Xpress was the first to start operating, with an...

AirAsia.(Fly Asian Xpress (FAX),AirAsia Sdn. Bhd.)(Brief article)
September 1, 2006... Omar takes top finance job Malaysian low-cost carrier AirAsia has a new group chief financial officer (CFO) following the departure of Raja Azmi Raja Razali to head new Malaysian airline Fly Asian Xpress (FAX). Taking up the post is...

SN Brussels.(SN Brussels Airlines)
September 1, 2006... Putten comes in at SN Brussels Belgian marketing executive Philippe Vander Putten has been named as the next chief executive of SN Brussels Airlines. He will take over from caretaker head Neil Burrows, who was appointed to begin the...

Qantas.(Qantas Airways Ltd.)(Brief article)
September 1, 2006... Dixon's extension poses succession questions Geoff Dixon has a new contract with Qantas that allows him to stay on as chief executive indefinitely. This ends speculation about what he would do when his old contract expired next July, but...

Embraer.(Embraer Empresa Brasileira de Aeronautica S.A.)(Brief article)
September 1, 2006... Curado to succeed Botelho The charismatic leader of Embraer, Mauricio Botelho, is handing over the reins of the Brazilian aerospace manufacturer to another veteran of the company Frederico Fleury Curado. The succession will take place in...

Forum.(officials of airlines)(Brief article)
September 1, 2006... In brief The new president of the ICAO Council Roberto Kobeh Gonz?lez (pictured) officially took over from Dr Assad Kotaite at the beginning of August. Kotaite retired after 30 years. Kobeh has been Mexico's representative on the ICAO Council...

A summer of surprises.(US carriers)
September 1, 2006... Life, it is said, is full of surprises. And for US carriers, this summer is already packed with more than its fair share. First, a raft of decent financials in the last quarter, with the promise of more of the same for the next quarter, is a...

Air Berlin ups its game with DBA buy.(Intro)
September 1, 2006... Air Berlin has bought DBA from its owner, German investment group Intro, for a "net purchase price" of ?20-30 million ($25-40 million) financed from its cash reserves. The deal is just the latest of several ownership changes at DBA, which was...

Ryanair loses another subsidy case.
September 1, 2006... Colin Baker Edinburgh Ryanair has lost a court case over airport subsidies, this time in Germany, but is still confident an appeal against the European Commission's (EC) ruling on the carrier's deal with Belgium's Charleroi Airport will...

Delta scoops New York-London rights.(Delta Air Lines Inc.)
September 1, 2006... Delta says it will acquire United's rights to operate three daily flights between New York and London, pending US Department of Transportation approval. But the SkyTeam carrier is unable to buy any of United's excess Heathrow slots because the...

Saudi ready to join low-cost revolution.(General Authority of Civil Aviation (GACA))
September 1, 2006... NAS, which already operates all-premium carrier Al-Khayala, lodged an application with the Saudi Arabian General Authority of Civil Aviation (GACA) in August for a domestic low-cost carrier license. NAS has asked UK-based low-cost player...

THY Turkish Airlines opts for Star.(Turkish Airlines Inc,Star Alliance Services GmbH.)(Brief article)
September 1, 2006... Colin Baker Edinburgh THY Turkish Airlines has finally made its alliance decision, opting to join the Star Alliance rather than SkyTeam. The Turkish airline is now in formal talks with Star, having been accepted in principle by all the...

In brief.(Aegean Airlines S.A., Hemus Air and Air One bids to acquire Bulgaria Air)(government to sell Air Botswana)(Brief article)
September 1, 2006... Three bids for Bulgaria Air Buglaria's government has authorised three groups to submit offers for a majority stake in Bulgaria Air. Italy's Air One, Bulgaria's Hemus Air and a subsidiary of Greece's Aegean Airlines have made the...

In brief.(airlines)(Brief article)
September 1, 2006... BMed expands network British Airways franchise partner BMed plans to extend its network to West Africa at the end of October with a thrice weekly service from London Heathrow to Freetown in Sierra Leone and Dakar in Senegal. It will be the only...

Transatlantic all-premium market heats up.
September 1, 2006... Competition in the emerging all-?premium transatlantic market is heating up with expansion at two fledging carriers and the emergence of two start-ups. UK-based Silverjet aims to join by year-end US-based Eos and Maxjet in offering...

ACEshigh.
September 1, 2006... For Robert Milton, chairman and chief executive of ACE Aviation Holdings, it has been a long trip from Georgia in the USA's deep south to Montreal in Canada's frostier culture. Similarly, it has been a long journey from watching turboprops at a...

Forum.
September 1, 2006... September 2006 11-14 World Low-Cost Airlines Congress 2006 London Contact Terrapinn Tel +44 207 827 4168 Website www.lowcostairlinesworld.com 11-14 IACA 2006 Operations Assembly Monastir, Tunisia Contact Michelle Walsh Tel +32 2 546 1073...

The e-ticket challenge.
September 1, 2006... IATA's deadline for 100% e-ticketing is rapidly approaching, but the ultimate question remains: what are the savings? Airlines around the world are required to invest thousands or even millions of dollars to roll out IATA's Simplifying the...

Terror alert: the aftermath.
September 1, 2006... However it is unclear how long the remaining restrictions, which threaten to dampen business travel, will stick and who will pay for all the extra security brought in after the terror alert in the UK. Several of the restrictions, including a...

In brief.(The World Airlines information)
September 1, 2006... Boeing severs Connexion Boeing is shutting down its Connexion unit, forcing 11 carriers to cease offering an in-flight internet service. Several carriers said the service was well received by passengers and were planning to extend it to...

Strength in numbers.
September 1, 2006... A year after Hurricane Katrina recast the US airline industry's route for recovery, another unpredictable force of nature has stormed onto the scene. But the London terror scare of mid-August 2006 does not necessarily mean that the basic path...

Stellarorbit.(Airlines)
September 1, 2006... After a lean spell in the aftermath of 9/11, alliances are back in vogue. Following a period when management attention was on other areas and there was an urgent need to save cash, airline boardrooms are once again focusing on alliance...

Alliances.
September 1, 2006... This year? Airline Business Alliance Survey shows the big three groupings have succeeded in their recruitment drives with a steady stream of new members being tempted to join to plug ?white spots? in their global coverage. Chinese carriers are...

Managing demand.(airline industry,UnitedKingdom)
September 1, 2006... Leaving to one side the prospect of an economic slowdown, events in August in the UK highlighted two of the key external threats to the airline industry. Firstly, the UK Parliamentary Environmental Audit Committee's report, which, in...

Adaptordie.(European package tours)
September 1, 2006... The European package holiday market is stagnating, especially to the traditional hot spots around the Mediterranean, forcing charter carriers to adapt to the new environment, or die. There is no mystery about the reasons for the creeping...

Intheblood.(low-cost carriers)
September 1, 2006... As brokers of talent in the airline industry, the most common request from our new generation of airline clients is for individuals who bring that mystical low-cost carrier DNA. At every turn start-ups or morphing airlines, regionally focused...

Aerosur grows.(Brief article)
September 26, 2006... Bolivia? number two airline is exploiting the confusion that continues at Lloyd A?reo Boliviano (LAB). Fourteen year old Aerosur has already passed LAB in the domestic market, claiming 66% of all traffic compared to LAB? 24%. Now Aerosur is...

Caribbean Airlines to succeed BWIA.(BWIA International Airline)(Brief article)
September 26, 2006... The aim is for start-up Caribbean Airlines to be profitable by 2009, says Peter Davies, the carrier? chief executive. Once negotiations with BWIA? four unions are concluded on settlement packages for its workforce of 1,700, the Trinidad and...

Turboprop comeback spreads to US.
September 26, 2006... Frontier Airlines plans to expand its low-fare network to several smaller markets following the acquisition of up to 20 Bombardier Dash 8 Q400 turboprops. The deal marks the continued comeback of turboprops in the regional market....

Highway official to succeed Mineta.(Peters)
September 26, 2006... Peters, a Republican Party stalwart in her home state of Arizona, had run the US Department of Transportation? (DoT) highway administration from 2001 until last year, leaving to take a post at a Phoenix engineering firm while mulling a run for...

ACE kicks the tyres at Varig.(ACE Aviation Holdings)(Brief article)
September 26, 2006... David Knibb Seattle Air Canada? holding company would like to invest in Varig, but must first await the outcome of several issues. VarigLog, which bought ?New Varig? in July, confirms Canada? ACE Aviation Holdings has been consulting...

In brief.(Latin American airline group to launch a new low-cost airline)
September 26, 2006... LAN plans low-cost carrier Latin American airline group LAN plans to launch a new low-cost airline by the end of this year. A major catalyst for this move is GOL? plan to start low-cost flights in September from Brazil to Santiago. LAN is...

In brief.(US and Open Skies to Enter Into Deal)(Brief article)
September 26, 2006... US pushes Open Skies US Undersecretary of Transportation for policy Jeff Shane warns global alliances could be ?dismantled? unless a stalled transatlantic deal is concluded. ?If we lose the current open-skies agreements, we face the very real...

Carriers haunted by fears of economic slowdown.(Airlines worried over sluggish growth)
September 26, 2006... Advance bookings are dropping at major carriers such as Continental Airlines, where unit revenues have also dipped, and even low-fares leaders such as AirTran Airways are trimming expansion plans. A series of fare increases that had succeeded...

Slowdown coming?(Slowdown in Revenue Growth in Airlines Industry)
September 26, 2006... It is often said the only constant in the turbulence that is the airline industry is change. This also applies to views on economic prospects. The outlook appears to change almost weekly. Early in September there were signs global economic...

Biman seeks strategic partner.(Brief article)
September 26, 2006... Bangladesh? national carrier Biman is again searching for a strategic partner to help it with a badly needed financial turnaround and fleet modernisation. The cash-strapped airline and the government have for years been talking about a...

Cash lifeline for Garuda.(Brief article)
September 26, 2006... Nicholas Ionides Singapore Approval for the so-called ?bridging finance? came in mid-September after much discussion in parliament. The government says a portion of the funds will be injected into the state-owned carrier this year and the...

KAL to launch Chinese cargo carrier.
September 26, 2006... Korean Air (KAL) will join forces with China? largest logistics company. The announcement came as Singapore Airlines (SIA) suffered a setback in its effort to expand its presence in China, with the sudden suspension of services by 25%-owned...

Indian government approves hub.(Brief article)
September 26, 2006... Nagpur airport in central India may be redeveloped into the country? first self-declared hub facility. The state of Maharashtra has for years been planning the so-called Multi-Modal International Hub Airport at Nagpur (MIHAN) project,...

Narita begins runway work.(Tokyo Narita airport)(Brief article)
September 26, 2006... Construction work has finally begun on an extension of congested Tokyo Narita airport? second runway to allow it to handle larger aircraft and more flights. The expansion work will see the second runway extended northward to 2,500m in...

Thai ponders cuts to domestic routes.
September 26, 2006... The move could benefit all three of the country? low-cost carriers, which have steadily gained market share at the expense of Thai since launching in late 2003 and 2004 (see table). Nok chief executive Patee Sarasin says he is negotiating...

Efforts to revive Origin Pacific fail.(Brief article)
September 26, 2006... David Knibb Seattle Origin Pacific, New Zealand? number two airline, has stopped flying and has been placed into receivership. Origin ceased scheduled service in August after an unsuccessful attempt to raise capital. The Nelson-based...

In brief.(Cathay Pacific Airways acquired Dragonair)(Brief article)
September 26, 2006... Cathay-Dragonair deal Cathay Pacific Airways has secured overwhelming shareholder approval for a proposed takeover of Dragonair. Shareholders of Cathay, Air China, China National Aviation (CNAC) and CITIC Pacific all voted on the proposed...

In brief.(Brief article)
September 26, 2006... Airport regulation upheld Australia? commission reviewing airport aeronautical fees is recommending that the government keeps its present system for at least five more years. In a draft decision that the government is likely to accept, the...

In brief.(Brief article)
September 26, 2006... Rural service incentives India? government is considering offering incentives to airlines to operate services in less-developed parts of the country. Indian domestic airlines are currently required to operate a minimum level of services to...

Boeing.(appointment of Scott Carson and Jim Jamieson)(Brief article)
September 26, 2006... Carson? rapid rise Boeing named Scott Carson to head its Commercial Airplanes group after the unit? president and chief executive Alan Mulally left to head Ford Motor Co. Carson, 60, has been vice-president of airplane sales and chief...

Clickair.(appointment of Alex Cruz )(Brief article)
September 26, 2006... Cruz heads up Clickair Spanish low-cost start-up Clickair named Alex Cruz chief executive ahead of its launch at the beginning of October. Cruz was previously the head of Accenture? 200-employee airline division, which owns Navitaire and...

Dragonair.(Dragonair appoints Kenny Tang)(Brief article)
September 26, 2006... Tang to lead Dragonair Hong Kong? Cathay Pacific Airways has appointed company veteran Kenny Tang as chief executive of newly acquired Dragonair. Tang took over as chief executive late in August, replacing long-serving Dragonair chief Stanley...

WestJet.(WestJet reshuffle)(Brief article)
September 26, 2006... Beddoe cuts back in WestJet reshuffle Clive Beddoe has turned the presidency of WestJet over to Sean Durfy in an attempt to scale back. Beddoe (60) remains chief executive and chairman, but Durfy (40) assumes more day-to-day management. Durfy...

Forum.(Macau Asia Express,)(Brief article)
September 26, 2006... In brief The chief executive of low-cost start-up Macau Asia Express is Ed Winter, who retired from the role of chief operating officer at UK low-cost carrier easyJet last year. Air Canada has appointed Daniel Shurz vice-president network...

Bankruptcy limits.(Bankruptcies Looming Large in Airline Industries)
September 26, 2006... Bankruptcy is now commonplace in the airline business. Court-supervised reorganisation is seen as a refuge and a way to recover. Without it, many carriers operating today would have disappeared for good. But it brings fresh challenges....

Forum.
September 26, 2006... October 2006 18-20 15th Cannes Airlines Forum Cannes, France Contact Catherine Vaurillon Tel +33 1 5377 1345 Website www.apg-caf.com 17-19 AVSEC World 2006 Conference Sydney, Australia Contact Luc Tousignant Tel +1 514 874 0202 x3454 Website...

Aer Lingus eyes post-IPO expansion.(Aer Lingus Group PLC)
September 26, 2006... Roughly 60% of the formerly government-owned carrier will be traded on the Dublin and London stock exchanges from 2 October. In September it set a share price range of ?2.10-2.70, which values the airline at ?1.1-1.3 billion. In its...

Flybe's new low-cost expansion tool.(Flybe British European)
September 26, 2006... Flybe is the launch customer for the E-195 and took delivery of the first of at least 14 E-195s in September. It will begin using the 118-seat aircraft in October from Birmingham, Norwich and Southampton. The largest and latest version of...

TUI ends budget foray but low-cost model remains.(TUI AG)(Brief article)
September 26, 2006... The formal merger of Hapagfly and Hapag-Lloyd Express has brought an end to TUI? experiment with a stand-alone budget carrier, although the travel group may yet reap some benefits from its endeavours. TUI launched Hapag-Lloyd Express in...

Low-cost carriers slam ?over-priced? airports.
September 26, 2006... Low-cost carriers attending the World Low Cost Airlines Congress and Routes network planning event in mid-September say airport charges are out of hand. ?Airports need to lower costs and offer a better experience from a social perspective. At...

In brief.(Brief article)
September 26, 2006... Conflict costs MEA Lebanese flag carrier Middle East Airlines (MEA) incurred $45 million in losses during the eight weeks it was forced to move its hub from Beirut to Amman in neighbouring Jordan. MEA, which operated out of Amman from...

States refuse to pay for extra security.(European Union member states to pay more for stringent measures)
September 26, 2006... Italian European Parliament member Paolo Costa is leading a push for European Union member states to pay for more stringent measures above those commonly agreed. Member states have so far rejected this and are also unhappy with proposals for...

Declinemegahub.(Air Travel's Changing Face)
September 26, 2006... of the International air travel is about to change dramatically. Deregulation, new business models and evolving consumer behaviour ? all factors that contributed to the low-cost carrier revolution in short-haul flying ? will soon be...

Thesqueeze.(Regional Carriers to Cut Costs to Survive in the Competitive Market)
September 26, 2006... In common with the rest of the airline industry, regional carriers are making huge efforts to emerge leaner and meaner as they struggle to cut costs and boost productivity in an extremely competitive market. However, it remains a growth...

Caribbeandreaming.(Running an Airline in Caribbean Area)(Personal account)
September 26, 2006... On the face of it, the chance to run an airline in the Caribbean seems like a dream come true. And in many ways the opportunity to run Liat was just that. After over 26 years in the industry and 15 years as a consultant helping airlines all...

Lift the sanctions.(US Sanctions on Iranian Carriers)
September 26, 2006... The USA continues to impose sanctions on Iranian carriers that are detrimental to airline safety and violate the Chicago Convention. The economic sanctions the USA has imposed against Iran for the last 25- plus years not only block trade...

Inflight mobiles take off.(Brief article)
September 26, 2006... The quest to provide airlines with new inflight connectivity options continues despite Boeing? abandonment of its Connexion broadband service. Customer surveys are being trotted out to support proposals to introduce inflight connectivity...

Carriers pay up for cargo price fixing.
September 26, 2006... US antitrust division and European Commission (EC) officials are still probing alleged cartel activity that raised the price of fuel and security surcharges and insurance charges on air cargo. However, several major carriers, led by Lufthansa,...

Briefing.(Airlines)
September 26, 2006... In the past two months Australia? Virgin Blue has announced an interline accord with Malaysia Airlines (MAS), which also has joined Virgin Blue? frequent-flyer programme along with Hawaiian. Virgin Blue chief executive Brett Godfrey says the...

In brief.(Brief article)
September 26, 2006... IATA reduces 2006 estimate IATA has lowered its estimate for 2006 industry losses from $3 billion to $1.7 billion. The association says restructuring efforts and strong economic growth, which is now showing some signs of slowing especially...

Forum.(World Airways Inc.)(Company overview)
September 26, 2006... Putting the record straight Steve Forsyth, director of corporate communications for charter passenger and cargo airline World Airways, tells us why he? proud to be part of the company? 58-year history Your article by G?nter Endres (Surrogate...

Valueproposition.(CFM International CFM56s and International Aero Engine (IAE) V2500s)
September 26, 2006... Most CFM International CFM56s and International Aero Engine (IAE) V2500s now enter the market under a power-by-the-hour programme that see them returned to a manufacturer for servicing. Both engines have chalked up record orders in recent...