News from Travel Technology Update: Amadeus released a new report that describes four emerging demographic groups that it says will be key factors in the ways airlines develop and distribute their products. The report, commissioned by Amadeus and developed by Henley Centre HeadlightVision, a London-based strategic futures and marketing consultancy, describes four "traveler tribes" as they might behave in 2020:
UK-based MyTravel and German tourist conglomerate Thomas Cook are merging in a deal that will create the second-biggest travel company in Europe behind TUI. The new company, called Thomas Cook Group, will produce combined revenue of about €12 billion ($15.6 billion) selling holidays to some 19 million customers a year. It will be based in London.
Northwest Airlines introduced an A330 on flights from Minneapolis-St. Paul to Honolulu, completing the retirement of its DC-10s ( ATWOnline, Oct. 31, 2006). NWA flew 5.96 billion RPMs in January, a 1.5% increase over the year-ago month. Capacity rose 3.8% to 7.64 billion ASMs, dropping load factor 1.8 points to 77.9%. Domestic traffic grew 2.7% to 3.14 billion RPMs, capacity was up 3.3% to 4.12 billion ASMs and load factor dipped 0.5 point to 76.2%.
Alitalia Chairman Giancarlo Cimoli has been replaced by Banca di Roma Chairman Berardino Libonati, the Italian Ministry of Economy and Finance announced. It did not say whether Cimoli, who was appointed in 2004, also would be replaced as CEO. The decision comes ahead of the carrier's Feb. 22 shareholders' meeting and coincides with the review of the 11 "expressions of interest" the government received from potential buyers of the troubled airline ( ATWOnline, Jan. 31).
Qantas yesterday released an independent expert report supporting its recommendation that shareholders accept the A$11.1 billion ($8.61 billion) or A$5.60 per share private equity takeover bid by Airline Partners Australia. The analysis by accounting firm Grant Samuel makes up part of Qantas's target statement and argues that the price is fair and reasonable. In fact, Grant Samuel indicates that anything above A$5.18 per share is a good deal and suggests that if the bid fails the share price, currently at A$5.40, will sink to A$4.20.
Comair pilots were back at the bargaining table yesterday in yet another effort to forestall the imposition of some $15.8 million in proposed wage and benefit cuts. Comair officials reportedly were reviewing the latest proposal from the pilots and had extended the deadline for imposing the cuts until after midnight last night. A bankruptcy court judge ruled Feb. 7 that the pilots, who are represented by the Air Line Pilots Assn., were forbidden to strike or take other job actions against Comair, a wholly owned subsidiary of Delta Air Lines.
Frontier Airlines will launch daily Denver-Vancouver service on May 5 aboard A319s. It flew 637.3 million RPMs in January, a 10.8% increase over the year-ago month. Capacity was up 12.3% to 977.2 million ASMs and load factor fell 0.9 point to 65.2%.
Hawaiian Airlines announced that US FAA Air Traffic Organization COO Russell Chew will leave Washington and join the airline as its executive VP-operations. He replaces the retiring Norm Davies. A former pilot, Chew worked for American Airlines for 17 years and was MD-system operations control before joining FAA in 2003.
EADS co-CEO and Airbus CEO Louis Gallois is scheduled to meet today with German Finance Minister Michael Glos to discuss the Power8 restructuring plan, details of which are expected to be revealed to Airbus employees on Feb. 20. Glos warned yesterday that job cuts and facility closures must be "evenly spread between Germany and France."
US Airways will not join Delta Air Lines, so it intends to beat it. Less than three weeks after DL proposed to operate daily Atlanta-Shanghai Pudong service next year, US revealed its intention to compete for the route scheduled to be awarded by the Dept. of Transportation as part of the expansion of scheduled air services between the US and China.
Etihad Airways will launch four-times-weekly Abu Dhabi-Dublin service on Aug. 3 with an A330-200. Aer Lingus will launch thrice-weekly Dublin-Vilnius flights in May and twice-weekly Dublin-Santiago de Compostela service in March.
Just one day after reporting a thumping profit, Qantas was brought back to earth Friday when Singapore's Tiger Airways unveiled plans to launch Australian domestic services by year end with five new A320s. During the announcement tipped last week by ATWOnline ( ATWOnline, Feb. 9), Tiger President and CEO Tony Davis took a cheeky swipe at Qantas, saying his airline is ready to "deliver Australians genuine low fares, competing in a market which has returned to a cozy duopoly and seen fares increase."
Air Canada reported 2006 operating income of C$259 million ($218.5 million), down 18.6% from C$318 million in the prior year, as revenue rose 6.4% to C$10.07 billion and expenses increased 7.3% to C$9.81 billion. AC posted a fourth-quarter operating loss of C$5 million, narrowed from an operating loss of C$91 million in the year-ago quarter. President and CEO Montie Brewer described the period as "one of the strongest fourth quarters in Air Canada's history."
Italy's Air One announced the conversion of 10 A320 options into firm orders Friday, bringing its total order for the type to 40 firm along with 25 options and 25 purchase rights ( ATWOnline, Jan. 13, 2006). The 159-seat aircraft will be CFM56-5B6/P-powered.
Sale of its stake in Singapore Aircraft Leasing Enterprise in December 2006, combined with rising loads, helped boost Singapore Airlines Group to a S$589.2 million ($384.3 million) profit in its third fiscal quarter ended Dec. 31, a 48.6% improvement over the S$396.6 million earned in the year-ago quarter.
Spirit Airlines is charging $10 for a second piece of checked luggage as part of a policy instituted Saturday. Additional bags will be allowed and will cost a minimum of $100 each, with fees rising to as much as $150 per bag depending on size and/or weight. In addition, initial pieces of checked luggage that weigh 51-70 lb. will cost $25, or $100 if they weigh 71-99 lb. Spirit has bases in Fort Lauderdale and Detroit.
Jazeera Airways last week launched a second base at Dubai International with a thrice-weekly service to Bahrain. The Kuwait-based LCC will add flights from DXB to Kuwait, Mumbai, Kochi, New Delhi, Muscat, and Salalah by March 27. "The commercial aviation sector in the Middle East and especially the Gulf region is picking up speed and Jazeera Airways aims to serve this growing market through establishing multiple hubs in the Arabian Peninsula," Chairman and CEO Marwan Boodai said.
Sabena technics and Taneja Aerospace and Aviation intend to establish a joint venture to respond to "the demands of the growing Indian aviation market." The MRO activity will take place at TAAL's private airfield in Tamil Nadu some 50 km. southeast of Bangalore. Initially the MRO provider will target regional turboprop aircraft such as ATR 42s/72s and eventually will ramp up to narrowbodies.
EU Friday made its first written submission in the US government's WTO challenge to EU government support for Airbus. While declining to make the actual submission public, the EU said it was a "robust response" to US allegations that Airbus received illegal subsidies. The first WTO panel will meet March 20-21. This will be followed by another round of submissions and hearings with a final decision due on Oct. 31. The EU noted that this could slip into 2008.
United Airlines flew 9.22 billion RPMs in January, up 2% from the year-ago month. Capacity climbed 1.6% to 11.82 billion ASMs and load factor rose 0.3 point to 78%. Delta Air Lines flew 8.86 billion systemwide RPMs in January, a 3.3% increase over the year-ago month, against a 2.9% climb in ASMs to 12.02 billion. Load factor rose 0.3 point to 73.7%. Domestic traffic fell 5.2% to 6.09 billion RPMs, capacity dropped 5.1% to 8.32 billion ASMs and load factor was down 0.1 point to 73.2%.
Southwest Airlines said Friday it will resume service to San Francisco International "in a meaningful way in the early fall," ending a six-year-plus hiatus. SWA, which serves nearby Oakland and San Jose with 142 and 77 daily departures respectively, pulled out of SFO in March 2001 after more than 18 years, citing its inability to operate profitable services to Phoenix and San Diego.
Pratt & Whitney said Indian Airlines chose PW4000-100s to power two A330-200s it has on order, the first of which will be delivered in October. Indian currently has a fleet of 48 A320s and six A319s as well as 11 737s that are operated by subsidiary Alliance Air.
