AirTran Airways revealed yesterday that it continues to be willing to wager approximately $290 million on the notion that opposites do indeed attract, as the prototypical low-cost carrier said it intends to forge ahead in its bid to acquire Midwest Airlines despite the Milwaukee-based full-service carrier's rejection of its initial overture.
Air Seychelles selected the GEnx to power the two 787-8s it leased from ILFC in April for delivery in 2010 ( ATWOnline, April 6). The deal includes a 10-year OnPoint Solutions agreement worth more than $25 million.
Airbus yesterday received EASA and FAA certification for the A380 powered by the Rolls-Royce Trent 900, but festivities in Toulouse were clouded by a surprise morning raid by French police into parent EADS' Paris headquarters, part of an escalating insider trading investigation stemming from the A380 program's extensive delays. The certification keeps Airbus on track to deliver the first A380 to Singapore Airlines in October 2007, more than 18 months behind the original delivery schedule. The aircraft is the largest ever to be certified for passenger carriage.
United Airlines Chairman, President and CEO Glenn Tilton said yesterday that the carrier is actively exploring consolidation options as it closely follows the proposed US Airways takeover of Delta Air Lines.
ANA issued a statement last week indicating that it is in the "final steps" of selling hotels and real estate worth approximately $952 million, according to Reuters. ANA owns 13 Japanese hotels that produced revenues of about $571 million in the fiscal year ended March 31.
EU yesterday reached an expanded aviation services agreement with Morocco, announced new negotiations with Ukraine and referred Greece to the European Court of Justice. The deal with Morocco, signed by EU VP-Transport Jacques Barrot and Moroccan Minister of Transport Karim Ghellab, is a "new type of aviation agreement" that replaces all bilaterals between the North African nation and EU members and includes open skies as well as initiatives to enhance security and safety and the harmonization of competition, state-aid, environmental and consumer protection rules.
Comair pilots voted to authorize a strike if a US Bankruptcy Court judge rejects their contract. The pilots, represented by the Air Line Pilots Assn., said they should not have to make additional concessions because the company is projected to earn a $50 million profit this year. Comair, a wholly owned subsidiary of Delta Air Lines, filed for bankruptcy along with its parent in September 2005. "Make no mistake, the pilots will not tolerate company-imposed pay and work conditions," MEC Chairman J.C. Lawson said after the Monday vote.
The UK Office of Fair Trading yesterday issued a preliminary recommendation that airports operator BAA be investigated by the country's Competition Commission, a move prompted in part by the fact "that the current market structure does not deliver best value for air travelers in the UK and that greater competition within the industry could bring significant benefits for passengers," according to OFT CEO John Fingleton.
Transwede Airways signed a long-term deal to operate three RJ70s on behalf of Air One at London City. Transwede will fly the aircraft an average of eight-times-daily to Milan Linate, Rome Fiumicino, Turin and Genoa. Service to LIN has launched and all routes will be fully operational in January.
Volvo Aero is expanding its Newington, Conn., Aero-Craft facility by 67.5% to 67,000 sq. ft. and almost doubling the number of employees in a $15.3 million project that will see Volvo produce fan cases for the GE90, GEnx, Trent 900 and Trent 1000.
Precision Conversions will provide seven full 757-200PCF conversions that will be leased by VarigLog. SkyWorks Capital of Connecticut is managing the deal. The first aircraft will be delivered in January.
Sabre Holdings reached agreement to be acquired by Silver Lake Partners and Texas Pacific Group for $32.75 in cash per share in a transaction valued at about $5 billion, including the assumption of $550 million in net debt. The deal follows last week's $1.4 billion Travelport-Worldspan merger ( ATWOnline, Dec. 11) and includes in TPG one of the principal players in the attempted takeover of Qantas. Sabre said the price represents a 30% premium over the average closing share price over the 60 days ended Dec.
Qantas introduced online check-in for same-day-return domestic flights. Separately, Qantas Freight launched a four-times-weekly Melbourne-Auckland overnight service aboard a 767-300F.
The streak of six consecutive years in the red will end for the world's airlines in 2007, according to IATA DG and CEO Giovanni Bisignani, who tempered the good news by calling the $2.5 billion profit he expects next year "peanuts" when compared to $450 billion in revenues. Losses for this year are expected to be $500 million, a significant improvement over the loss of $1.7 billion that was projected based on September figures ( ATWOnline, Nov. 2).
Delta Air Lines, which has been shifting its primary focus to international services as part of its bankruptcy restructuring, yesterday launched weekly New York JFK-Accra flights aboard a 767-300ER, the 14th international route added at JFK this year by DL, which now operates flights to 34 international destinations from the airport. It pointed out that the new flight makes it the only US major to operate a direct JFK-Africa service.
Northwest Airlines last week sought permission from a US Bankruptcy Court to hire Evercore Group as an adviser on "strategic alternatives." The move was seen widely as preparation to respond to a potential US Airways/Delta Air Lines merger. United Airlines already has retained Goldman Sachs to provide merger advice. Bankrupt NWA will pay Evercore $275,000 to launch the relationship and then $75,000 monthly. The bankruptcy court must approve the deal.
Silverjet, a UK startup that will offer all-business-class flights between London Luton and Newark beginning next month, said it reached agreement with Luton Airport to build a separate terminal that will be modeled after a private jet facility and enable it to check in and board passengers in just 30 min. The airline said there will be "no check-in desks" in the new terminal.
United Airlines yesterday unveiled the initial details of its new United First Suite, the signature element of a $165 million upgrade to its international widebody fleet. It said that the "new suite was designed to be the optimal space to work, sleep or relax while enjoying the latest entertainment and exclusive amenities." It is nearly 3 in. wider than the existing United First Suite and reclines to multiple angles or serves as a fully flat bed. Each suite features a 15.4-in.
News from Travel Technology Update: If the acquisition of Worldspan by Travelport is approved, the combined company will have three GDS platforms to juggle. Galileo International, founded by a consortium of European airlines in 1987, and Apollo (then known as Covia) formed the Galileo Partnership in 1993, but they have remained discrete systems. It is not clear whether Travelport plans to integrate Worldspan into Apollo or Galileo. Some observers predict that Travelport will retain certain elements of Worldspan's technology but jettison the basic platform.
Lufthansa and Turkish Airlines yesterday inked a bilateral cooperation agreement that will include codesharing and similar flight schedules. The accord was signed in Istanbul by Lufthansa Chairman and CEO Wolfgang Mayrhuber and Turkish Chairman Candan Karlitekin. THY officially became the newest member of the Star Alliance over the weekend ( ATWOnline, Dec. 11). Beginning March 25, LH and THY will operate selected flights between the two countries on a codeshare basis and "harmonize" schedules.
American Airlines last week asked the US Dept. of Transportation to approve a "modification" to its application to win route authority to China, saying it now wants to operate service to Beijing from Chicago-O'Hare rather than Dallas/Fort Worth to comply with flight distance provisions in its labor agreement with pilots. The AA aircraft going to China would originate at DFW but would fly first to O'Hare and then go to Beijing as a "through flight." The return from Beijing would operate directly to DFW.
US Transportation Security Administration named Mike Golden assistant administrator-operational process and technology, making him the agency's chief technology officer. Golden joins TSA from Southwest Airlines, where he served as senior director-airport security technologies.
Mesa Air Group flew 561.6 million RPMs in November, up 3.1% over the same period a year ago, while ASMs were up slightly more than 1% to 766.4 million. Load factor improved 3.9 points to 75.5%. The carrier also reported that its Hawaiian inter-island subsidiary go!, which started service in June, carried 57,383 passengers in November, resulting in a load factor of 63.7%.
