Eleven workstations, each comprising three computer monitors and manned by engineers, face a large display wall featuring an electronic world map and a giant e-mail inbox. The images are refreshed every 5 sec.; an onsite generator is set to kick on automatically 3 sec. after a power failure to keep operations running in all situations.
We've seen a resurgence of interest in turboprop aircraft as oil prices have risen. Do you see any market opportunities for Embraer in that side of the market? I do think that the [high] fuel prices will make short routes economical for the turboprops.
There is a new breed of airline emerging in Europe that defies conventional pigeonholing. It is neither a low-cost carrier in the strictest definition of the term nor is it a legacy airline. Nor is it a charter carrier, but it is emerging from the demise of the charter business that once was the mainstay of the holiday package industry.
When it comes to building an airline alliance, is a close technological marriage better than a series of looser links? The three major global alliancesStar, oneworld and SkyTeamare taking different approaches to the task of getting their systems to communicate. Star, the oldest and largest of the three, has opted to create the framework for a common platform, although no member will be forced to migrate to it. Oneworld has a sort of "virtual" common platform but no formal framework. SkyTeam, meanwhile, is sticking with normal airline messaging methods for now.
The recent departure of Norman Mineta, who resigned as US Secretary of Trans- portation in July after a six-year tenure, provides a much-needed opportunity for the Bush Administration to take a fresh look at how it is managing issues affecting international aviation relations. Cabinet officials serve at the will of the President and Secretary Mineta left of his own volition, so we will not use this space to criticize him for actions undertaken by DOT with the approval or at least the knowledge of the White House.
By most financial measurements, British Airways stands at or near the top of the airline industry. Its operating profit of £705 million for the financial year ended March 31 was in absolute terms the highest of any passenger airline in the world, according to ATW's World Airline Report (7/05, p. 37), while its net result of £451 million was the second-highest, trailing only that of Air France-KLM Group, which enjoys a revenue base that is almost 75% larger than its cross-Channel rival.
Swiss International Air Lines is getting rid of its final ERJ-145, replacing the 50-seat aircraft with an RJ85/100 that seats 85-100. Swiss operated 25 ERJs at one point, taking first delivery in 2000. Company officials said the ERJ was "only partially able to meet operating requirements, in view of its limited seat capacity." Last summer, the carrier decided to standardize its short-haul operation with an all-Avro fleet.
ANA cited continued economic recovery in Japan and "strong demand for individual and international business travel" for a more than threefold growth in net profit in the first fiscal quarter ended June 30. The carrier earned ¥7.6 billion ($66.3 million) compared to ¥2.1 billion in the year-ago period. It said it will not change its full-year forecast of ¥27 billion in earnings on revenues of ¥1.42 trillion because of fuel costs, which it said rose ¥9.5 billion in the first quarter.
Iberia's efforts to return its Barcelona operations to normal following Friday's action by ground workers ( ATWOnline, July 31) included the transfer of more than 100 employees from other airports, two additional aircraft and the placement of extra staff on all shifts until Wednesday, it said yesterday, adding that the airport "is now operating normally" although the carrier is still working on shipping baggage.
Northwest Airlines flight attendants set up a showdown with the bankrupt carrier late yesterday, rejecting the tentative agreement reached two weeks ago in "around-the-clock negotiations" between NWA and the Assn. of Flight Attendants-CWA ( ATWOnline, July 18) by a vote of 3,266 to 2,637. "Our members have spoken. These drastic cuts to our pay, benefits and work rules are simply unacceptable," AFA-CWA Interim MEC President Mollie Reiley said.
Heavy losses on its startup international operations dragged Jet Airways to a INR450 million ($9.7 million) loss in the first fiscal quarter ended June 30 from a INR953 million profit in the year-ago period. And the carrier issued a warning on the domestic front as well, saying that it has concern for the industry "in view of irrational pricing by airlines simply seeking to gain market share."
AirTran Airways will launch daily Gulfport/Biloxi-Fort Lauderdale service on Aug. 29 Bmi regional will increase frequency on its Edinburgh-Manchester route to six daily weekday flights from Sept. 4. It also canceled its Leeds Bradford-Cork service. Flyglobespan will launch daily Liverpool-Newark service on May 25, 2007.
Atlas Air Worldwide Holdings said yesterday it will pay off approximately $141 million of principal under two aircraft financing facilities using cash from existing balances and will terminate an existing revolving credit facility with no borrowings outstanding.
DHL yesterday signed a multimillion-dollar, two-year agreement with Electrolux, a leading producer of powered appliances, to serve as the company's exclusive global air express services provider.
Avion Group announced the following changes to its Aviation Services division, which comprises Air Atlanta Icelandic, Avion Aircraft Trading, Avia Technical Services and Southair: VP-Finance and assisting CEO Hannes Hilmarsson is the new CEO of Air Atlanta, replacing Hafthor Hafsteinsson, who will be the carrier's chairman. AAI VP-Sales and Marketing David Masson is the new CEO of AAT, replacing Hafsteinsson, who will become executive chairman and remain CEO of Aviation Services. Johann Karason is AAI's new VP-sales and marketing.
WestJet announced the completion of a debt financing facility for C$191.1 million ($168.9 million) to support the purchase of five 737-600s and one dash 700. It took delivery of the first aircraft, a dash 600, last week and will take the remaining five this year. The facility was arranged by ING capital, is supported by guarantees from the US Export-Import Bank and includes ING Financial Holdings Corp. and Societe Generale as lenders. The loan will be drawn in separate installments with 12-year terms for each aircraft.
US Senate is expected to vote this week on pension reform legislation passed last week by the House that would provide relief for US airlines struggling to fund defined benefit retirement plans. The House-passed bill would give carriers that have frozen their pension plans, namely bankrupt Delta Air Lines and Northwest Airlines, 17 years to meet funding responsibilities, or 10 more years than the seven-year requirement imposed by the legislation on other industries. Other airlines would get 10 years--three extra years--to fund plans. Sen.
European Regions Airline Assn. said member carrier flew 8.4% more RPKs in the March quarter against a 7.3% increase in capacity. Load factor was a first-quarter record 57.9%, up 0.9 point on the year-ago quarter.
Malaysia Airlines MD Idris Jala told reporters yesterday that the airline will raise domestic economy fares 15% and business class fares 25% effective Aug. 15 in addition to a 25%-42% fuel surcharge increase on domestic routes beginning today, when the reconfiguration of Malaysia's domestic airline route network takes effect. MAS will operate 22 trunk routes and AirAsia will take the rest.
SkyWest Airlines took delivery of two CRJ900s, the first of 17 firm orders that will be operated for Delta Air Lines. Currently, SkyWest, which also operates in partnership with United Airlines, has a fleet of 324 50- and 70-seat CRJs. "This aircraft will allow us to reach further into new markets, giving Delta the flexibility and competitive cost aircraft they need in their Salt Lake hub," SkyWest President and CEO Ron Weber said. Addition of the 86-seat CRJ900 makes the airline an operator of all three Bombardier regional jet types.
Varig confirmed it intends to lay off approximately 5,500 of 9,500 Brazilian employees. "Today we begin one of the most important phases of the project of restructuring Varig, promoting the balancing of the company's staff with current operational necessities," CEO Marcelo Bottini said in a statement to employees cited by Reuters.
Tassili Airlines of Algeria signed a contract valued at $103 million for four Q400s. Deliveries are scheduled to begin in third-quarter 2007. The carrier is a subsidiary of Sonatrach State Energy Group, which will use the aircraft to transport workers to oilfields.
United Airlines parent UAL Corp. posted $119 million in net income for the period ended June 30, its first full quarter since emerging from bankruptcy and a vast improvement over the $1.4 billion it lost in the year-ago quarter. The results, marking the company's first profitable quarter since 2000, reaffirmed an earnings preview it released last week ( ATWOnline, July 25). Second-quarter revenues were $5.1 billion, up 15% from $4.4 billion generated by a restructuring UAL in the year-ago quarter.
Lufthansa Systems will provide IT support for Air One, Al Salam 319, Contact Air and Wind Jet. LHS also said it completed implementation of its ProfitLine/Yield Rembrandt revenue management solution at Smart Wings.
Sabre Airline Solutions signed a deal with Japan Airlines to provide the AirFlite suite of products. Separately, Sabre signed a four-month contract with China Eastern Airlines to provide consulting on best practices network planning and flight scheduling and a deal to provide the AirMax Revenue Management Suite to Virgin Blue.
