AS WITH PROFITABILITY AND AIRCRAFT orders, cabin makeovers appear to occur in cycles. Based on the number of announcements over the past 12-18 months, it is clear that a new one is well underway. The focus continues to be on the front of the aircraft, where carriers believe they can extract a disproportionate payback for their investment, although some, such as perennial archrivals Cathay Pacific Airways and Singapore Airlines, are not overlooking the economy section.
IF THERE IS A LESSON TO BE LEARNED IN THE RECENT setbacks for aiRES, it is that in this day and age, time stands still for no airline. That can spell trouble for vendors who try to keep up with carriers that are moving in more directions than up.
ATW'S WINNING AIRLINE STRATEGIES conference held in Washington in late February brought together senior executives from some of the world's leading airlines, technology suppliers, academia and consultancies to talk about developments in reservations, distribution and marketing and customer service as well as aeropolitical issues. As has become a tradition, the conference opened with a keynote address by Avitas Senior VP Adam Pilarski, who rejected two staples of current industry thinking: That consolidation is necessary and that the industry suffers from chronic overcapacity.
Back in the days when most people still got their information from the local newspaper, editors had a saying: "Never foul up on a slow news day." Unfortunately, in the era of the 1,440-min. daily news cycle, every day is a slow news day because no amount of information can satisfy the appetite of the media monster technology has spawned.
The OpenTravel Alliance, the organization that develops XML messaging specifications for electronic travel distribution, is adopting a new identity that reflects a philosophical shift: It is setting standards for the industry.
Air France Industries-KLM Engineering & Maintenance promoted Jonathan Soesman to VP-sales-USA & Canada. AJ Walter Aviation appointed Vicky Gallagher-Brown dir.-human resources. American Airlines promoted Ron Olson to GM-Las Vegas McCarran Int'l. Airport. Boeing named Ian Thomas VP-Boeing Int'l. & president-Boeing India. CIT Aerospace tapped Graham Niven and Angus Greene as VPs-marketing, Commercial Airlines Group. Niven will be based in Singapore and Greene in Dublin. Darwin Airlines chose Fabio Parini as CEO.
While the management team at Eons.com, the "MySpace for the 50-plus crowd," was trying to figure out how to incorporate a travel component on the site, a group of members decided to take a trip together and organized all the details, right down to putting out a press release to attract more participants. It was a demonstration of the power of social networking online, Jeff Taylor, founder and chief executive officer of Eons, told an audience at the TravelCom/Res-Expo conference.
American Airlines parent AMR Corp. is planning to invest up to $100 million into its Maintenance Services group in an effort to bolster third-party business. It said the funding will be used to update facilities, invest in new technology and increase efficiencies. "In the past three years, we have worked with our [Transport Workers Union] partners to reduce costs, streamline processes and keep the vast majority of our own aircraft maintenance work in-house," said Senior VP-Technical Operations Bob Reding.
Short on capacity and financial clout, China's airlines are feeling the pressure as talks have resumed with the US about an expanded air services agreement.
Flyforbeans is the name of a low-fare startup scheduled to operate out of Cardiff with three 737-300s by year end. "We know there is a lot of leakage from South Wales to other airports like Bristol--passengers who would fly from Cardiff if there are flights from there," flyforbeans MD Tim Lee told the BBC, which said the budget carrier intends to start with 12 daily roundtrips. It has not yet received its AOC.
Pratt & Whitney wants to grow its presence in the maintenance, repair and overhaul aftermarket beyond powerplants, Global Service Partners Senior VP and GM Jim Keenan told ATWOnline this week in Hartford, Conn.
Bmi has not decided whether it will expand its transatlantic service from London Heathrow when open skies takes effect next year. "Much will depend on aircraft availability, on market possibilities and on partnerships," Commercial Director Adrian Parkes told ATWOnline while in Brussels to celebrate the 15th anniversary of the carrier's Belgian service. "Of course we have the desire to go for it as soon as we are ready." Bmi will be looking to add new long-haul aircraft if it opts to enhance its US operation. It currently has no orders or options for such aircraft.
Delta Air Lines posted net earnings of $55 million in February compared to a loss of $209 million in the year-ago month, which Executive VP and CFO Edward Bastian said "demonstrate[s] the significant momentum we have created with our restructuring." However, DL recorded a $43 million loss excluding reorganization items, narrowed from a $138 million deficit in February 2006, and reported a $5 million operating loss owing to a negative impact of fuel hedges. Consolidated passenger unit revenue rose 1.4% year-over-year.
Qantas will boost its domestic operation with nine new A320s to be delivered over a 15-month period from late 2007 and used by Jetstar. The company is girding itself for the arrival of Tiger Airways Australia, which aims to challenge QF with a low-cost product ( ATWOnline, March 16). In addition, Qantas said four 767-300s used in international operations and scheduled to be sold instead will be transferred to domestic routes in the middle of this year.
Avianca Airlines placed a firm order for 10 787s valued at $1.5 billion, becoming the first airline in South America to order the aircraft. The Colombian carrier also holds purchase rights for 10 more 787s. Boeing previously credited the order to an unidentified customer in its listing of orders and deliveries and announced the order late Wednesday.
Thai Airways board announced approval of the sale of two A300-600s that will leave the fleet by June and the purchase of a 747-400 the airline has been leasing since 1997 when the contract expires in April 2008.
IATA reported 6.8% industrywide RPK growth in February and a 6.1% year-over-year rise in capacity, which lifted load factor 0.5 point to 73.3%. Highest load factor of 74.4% was in North America, while largest RPK growth was the Middle East's 18%. Next highest was Africa at 9.4%.
LA/Palmdale Regional Airport will get its first scheduled service June 7 when United Airlines begins RJ flights to San Francisco. The Los Angeles airports department is refurbishing the civilian terminal on the joint-use field and will provide $1.2 million worth of free rent, marketing and other support for the service, which also is partly funded by a $900,000 federal grant. Los Angeles owns 17,000 acres at the airport, located about 50 mi. northeast of the city.
47th Paris Air Show June 18-24 will feature as many as 2,000 exhibitors, officials said during a briefing in Washington this week, up from 1,926 in 2005. A total 128,801 sq. m. of static displays, halls and chalets will be occupied at the world's largest aviation exhibition. The 2005 show attracted some 137,000 trade visitors and 257,000 members of the general public, with 238 aircraft displayed. New exhibitors this year include Spirit Aerostructures (formerly Boeing's Wichita division), Dubai Aerospace Enterprise and Cessna.
Alaska Airlines and Horizon Air introduced bilingual kiosks this month to enable passengers to check in and obtain boarding passes in English or Spanish.
KLM Engineering & Maintenance appointed former Sabena Technics President and CEO Peter de Swert as senior VP-operations. Lufthansa Technik named Head of EASA Approved Design Organization Bernhard Conrad as Chief Technology Officer.
Malev Hungarian Airlines followed Royal Jordanian into oneworld yesterday ( ATWOnline, March 29), becoming the group's 10th member. "It is vital in today's airline industry for a medium-sized airline like Malev to have the best of the best as partners to achieve long-term efficiencies and sustainable profitability," Chairman Boris Abramovich said. Malev adds 10 cities to oneworld's network, which will include Macedonia and Montenegro for the first time.
JetBlue Airways launched daily White Plains-Orlando International service Wednesday and will start a second daily HPN-MCO flight and daily flights to West Palm Beach and Fort Lauderdale on April 2, all aboard A320s. HPN is JetBlue's 51st destination and 7th in New York. Separately, the carrier took delivery of its 100th A320 last week. The aircraft will have stylized 100s painted on the tail.
Northwest Airlines announced the withdrawal of a $129 million salaried employee unsecured claim from its reorganization plan. Under a new salaried equity plan covering 5,200 salaried and management employees, those below director level will receive cash and restricted stock worth $77.4 million. "This salaried equity plan will help ensure that Northwest retains a team of experienced salaried employees, and ties the interests of that team to the financial performance of our company," President and CEO Doug Steenland said.
