IT WAS AN AMBITIOUS GOAL THAT IATA SET FOR the world's airlines in November 2004: As a core part of its Simplifying the Business initiative, it called for the elimination of paper tickets flowing through its bank settlement plansthe systems that handle the movement of funds for tickets booked by travel agenciesby the end of 2007.
MORE THAN 100 YEARS OF powered flight have taught the aviation industry one unshakeable truth: Very few accidents are caused by a single event; more often they are the result of a conflux or alignment of multiple contributory system failures. And in aviation, where most accidents have "human error" as a contributing factor, it is imperative that the industry understand as quickly as possible in a free and open exchange what set of circum-stances conspired to cause humans to err.
AFTER A DREAM RUN THAT SAW the doubling of capacity in two years and the opening up of dozens of routes all over the country, India's domestic airline industry seems to be headed for a hiatus. Signs of weakness in the sector are now there for all to see. Every airline is battling red ink and the carriers are expected to tot up aggregate losses of more than $500 million for the year to March 31, 2007.
FOLLOWING A BETTER-THAN-expected 2006, 2007 may well be the peak year in the current airline earnings cycle and certainly will surpass last year's result. Analysts with whom ATW spoke are guardedly optimistic about the New Year, with expectations for the first industrywide net profit since 2000 barring any new shock(s) to the system.
Air Transport Assn. promoted Marc Gonzales to VP-congressional affairs. Airports Council Int'l.-North America elected Joseph W. Walter as chair and Susan Kurland as vice chair, 2007 Associates Board. Alaska Air Group elected Brandon Pedersen VP-finance & treasurer and Andrew Harrison MD-financial planning & analysis. Alpha Airports Group named Martin Flower chairman.
The decision, implemented on Jan. 8, applies to domestic business and first class fares and international fares purchased on the U.S. Expedia.com site. American's economy seats are still available on the site. The move does not affect American's bookings through Expedia Corporate Travel, which are processed through Sabre, or through international points of sale.
Leave it to Singapore Airlines CEO Chew Choon Seng to make perhaps what is the most astute observation about the pending takeover of Qantas by a private investment group led by Allco Equity Partners and Texas Pacific Group. Speaking to ATWOnline News Editor Brian Straus recently, Chew pointed out that if, as appears likely, the sale is completed, "the beneficiaries of protectionism are not going to be the traveling public nor the greater Australian interests but financial investors."
Virgin America said it was given US FAA approval for "proving run" test flights, which it claimed moved it a step closer to DOT certification. But the startup, which has leased 34 A320s, still faces citizenship challenges from US competitors who say Richard Branson's Virgin Group, not US investors, control the carrier. It is unclear when it will be able to get its certificate. FAA did not release a statement.
Lufthansa signed an MOU to sell its 50% stake in leisure travel group Thomas Cook to KarstadtQuelle for €800 million ($1.05 billion) but will raise its stake in Condor Flugdienst from the present 10% to 24.9% and receive the shares held by Condor in Turkish holiday airline SunExpress.
Mesa Air Group signed an agreement with Shenzhen Airlines to create a Chinese regional carrier, yet to be named, that is expected to begin service within the next year operating 50-seat regional jets.
Delta Air Lines should "consider methodically, proactively and fairly strategic alternatives to its standalone Chapter 11 plan," a group of "unofficial" unsecured creditors said last week in a statement. The group of 17 creditors unaligned with the official creditors committee said it "appreciates" the DL standalone plan ( ATWOnline, Dec.
Star Alliance expelled Varig from its ranks just two weeks after CEO Jaan Albrecht told reporters at a briefing in Istanbul that the restructuring Brazilian carrier was a member in "good standing" ( ATWOnline, Dec. 11).
AAR was selected by Southwest Airlines to perform heavy maintenance services and winglet installations for the airline's 737s, with the work to be done at AAR's Indianapolis facility. Under terms of a three-year agreement, AAR will operate one line of nose-to-tail heavy maintenance checks starting in January. Winglet installation will include two nose-to-tail lines, each operating for 16-18 months, also starting next month.
Etihad Airways appointed Iain Burns as its new VP-corporate communications. Burns was head of corporate communications at British Airways for five years before resigning in October ( ATWOnline, Oct. 10). Grupo Aeroportuario del Sureste, the Mexican airport operator known as ASUR, said CEO Kjeld Binger resigned effective Dec. 31. Chairman Fernando Chico Pardo said current management will assume Binger's responsibilities until a new CEO is appointed, which could come as soon as Jan. 19.
American Airlines said it expects fourth-quarter mainline RASM to increase 3.8%-4.8% year over year, with consolidated unit revenues rising 3.6%-4.6%. It is anticipating fourth-quarter mainline unit costs of 10.98 cents and full-year CASM of 10.92 cents. Excluding fuel, the numbers will be 7.80 and 7.58 cents, respectively. Alaska Air Group told the US Securities and Exchange Commission Friday that the company expects breakeven results in the fourth quarter, which will compare favorably to a $33 million deficit in the final quarter of 2005.
Singapore Airlines flew 7.43 billion RPKs in November, up 10.1% from the year-ago month. Capacity rose 2.8% to 9.28 billion ASKs, lifting load factor 5.3 points to 80.2%. Cathay Pacific Airways flew 5.84 billion RPKs in November, a 7.7% increase from the year-ago month. Capacity grew 4.4% to 7.42 billion ASKs and load factor was up 2.4 points to 78.7%. EasyJet transported 2.6 million passengers in November, 11.2% more than in the year-ago month. Load factor was up 0.4 point to 80.5%.
Hawaiian Airlines finalized an agreement with AWAS Aviation Services that includes the purchase of three leased 767-300ERs ( ATWOnline, Dec. 1). Separately, HA flew 609.3 million RPMs in November, up 7.8% from the year-ago month. Capacity rose 13.4% to 716.8 million ASMs and load factor fell 4.4 points to 85%.
CSA Czech Airlines revealed that it expects to turn a 2007 profit of CZK42 million ($2 million), a reversal from the CZK493 million it expects to lose this year. Its 2007 business plan projects a 5.6% increase in passenger volume to 5.7 million and includes the sale and leaseback of five 737-500s.
Meridiana is buying a 29.9% stake in Italian leisure carrier Eurofly. Olbia-based Meridiana, which is majority controlled by Prince Karim al-Hussayni, the Aga Khan, is acquiring the shares from Spinneker Luxembourg. Milan-based Eurofly was established with a 45% shareholding by Alitalia in response to the flag carrier's desire to develop the leisure travel market and launched operations in 1990. AZ acquired full control in 2000 and sold its stake to Spinneker in 2003. Eurofly was listed on the Milan Stock Exchange in December 2005, with Spinneker keeping a 44% stake.
US Airways reached agreement with the Transport Workers Union on a single contract for flight dispatchers, bringing dispatchers from America West Airlines and the former US Airways under one labor deal. US said the accord is another step toward receiving one FAA operating certificate next year that formally would merge the two carriers.
Northwest Airlines reached an agreement with Pinnacle Airlines that opens the door for the regional to operate larger jets and seek additional business partners. Until now, Pinnacle has had an exclusive agreement with NWA that prohibited the Memphis-based regional from working with other carriers or operating aircraft with more than 50 seats. "That is very important," Pinnacle VP-Marketing Phil Reed told ATWOnline. "The most important thing was to secure our core business with Northwest. We've been a part of Northwest for 22 years."
Boeing's order book surged again last week with 38 new orders, bringing its 2006 total to 904, with insiders tipping some significant buys next week to round off a bumper year. The new orders were Kenya Airways' three 787-8s, KLM's three 737-800s, Qantas's five 737s, two 737s from Boeing Business Jets and 25 unidentified 737s. Boeing also identified the customers for three previously unidentified 777s as Qatar Airways (two dash 200Fs) and KLM (one dash 300ER).
